Introduced Version
House Bill 2348 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2348
(By Delegates Manypenny and Fleischauer)
[Introduced February 13, 2013; referred to the
Committee on Government Organization then the Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §24-2G-1 and §24-2G-
2, all relating to the creation and implementation of a fund
to encourage the development and use of renewable forms of
energy and energy efficiency programs, projects and
enterprises.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §24-2G-1 and §24-2G-2,
all to read as follows:
ARTICLE 2G. WEST VIRGINIA ENERGY EXPANSION FUND.
§24-2G-1. Funding.
_____(a) Beginning on August 31, 2013, the West Virginia Public
Service Commission is hereby authorized to require a mandatory charge per kilowatt-hour on all electricity consumers of the state
to support the development and promotion of renewable energy and
energy efficiency projects. The charge shall be $0.00035 per
kilowatt-hour in each calendar year through calendar year 2018.
_____(b) The revenues generated by the mandatory charge shall be
remitted to the Treasurer and deposited into the West Virginia
Energy Expansion Trust Fund, hereinafter referred to as the "Fund".
The public purpose of the fund is to generate the maximum economic
benefits over time from renewable energy and energy efficiency for
the ratepayers of the state through a portfolio of initiatives and
programs which advance and promote increased availability, use and
affordability of renewable energy and energy efficiency and that
foster the formation, growth, expansion and retention of renewable
energy and energy efficiency measures and their related
enterprises, institutions and projects to serve the state.
§24-2G-2. Creation and implementation of the fund; board of
directors.
_____(a) There is hereby established a separate trust fund to be
known as the West Virginia Energy Expansion Trust Fund. The fund
shall be held by the Treasurer in an account or accounts separate
from other funds. All amounts credited to the fund shall be held in
trust and used solely for activities and expenditures consistent
with the public purpose of the fund as set forth in subsection (a),
section one of this article.
_____(b) The fund shall be administered by an independent nonprofit
organization called the West Virginia Energy Expansion Trust,
hereinafter referred to as the "Trust". The trust shall facilitate
the development and implementation of renewable energy and energy
efficiency programs, projects and enterprises.
_____(c) Public interests to be advanced through the trust's
actions include, but are not limited to, the following:
_____(1) Development and increased use and affordability of
renewable energy resources in the state;
_____(2) Stimulation of increased public and private sector
investment in, and competitive advantage for, renewable energy and
related enterprises, institutions and projects in the state;
_____(3) Stimulation of entrepreneurial activities in these and
related enterprises, institutions and projects;
_____(4) Protection of the economic health of the citizens of the
state through mitigation of increased costs of electricity; and
_____(5) Delivery to state consumers of the benefits created by
increased fuel and electricity supply diversity.
_____(d) In furtherance of these public purposes and interests, the
trust may expend moneys from the fund to make grants, contracts,
loans, equity investments, energy production credits, bill credits
and rebates to customers, to provide financial or debt service
obligation assistance or to take any other actions, in the forms,
under terms and conditions and pursuant to the selection procedures and criteria as the trust considers appropriate and otherwise
consistent with good business practices. Actions may include, but
are not limited to, the following:
_____(1) Growth of the renewable energy-provider industry;
_____(2) Growth of the energy efficiency and retrofitting industry;
_____(3) Growth and recruitment of the renewable energy
manufacturing sector;
_____(4) Use of renewable energy by electricity customers in the
state;
_____(5) Reduction of energy costs to the consumer via energy
efficiency measures and incentives;
_____(6) Public education and training regarding renewable energy
and energy efficiency;
_____(7) Product and market development;
_____(8) Pilot and demonstration projects and other activities
designed to increase the use and affordability of renewable energy
resources by and for state consumers; and
_____(9) Provision of financing in support of the development and
application of renewable energy and energy efficiency technologies
at all levels, including, but not limited to, commercialization
activities.
_____The trust shall generally employ a preference for competitive
procurement. The trust shall endeavor to leverage the full range of
resources, expertise and participation of other state and federal agencies in the design and implementation of programs under this
section.
_____(e) The trust shall, in consultation with the Treasurer and an
independent board of directors established pursuant to subsection
(i) of this section, adopt a detailed strategic plan for the
application of the fund in support of the design, implementation,
evaluation and assessment of a renewable energy and energy
efficiency program or programs for the state, subject to periodic
revision, that ensures the fund is employed to provide financial
and nonfinancial resources to overcome barriers facing renewable
energy and energy efficiency enterprises, markets and projects
consistent with the public purposes and interests set forth in this
section. The plan shall specify proposed program designs and
priorities. The trust shall also develop an annual program plan and
operating budget for review and approval by the board. In
developing these plans, the trust may consult and utilize the
services of other state agencies and such technical assistance as
the trust determines necessary or appropriate to the effective
discharge of its responsibilities and duties relative to the fund.
_____(f) Subject to the approval of the board and in consultation
with the Treasurer, investment activity of moneys from the fund may
consist of the following:
_____(1) An equity fund to provide risk capital to renewable energy
enterprises, institutions and projects;
_____(2) A revolving loan fund to provide loans to energy
enterprises, manufacturers, institutions, projects, intermediaries
and end-users;
_____(3) A dedicated rebate fund to incentives cost-saving energy
efficiency measures; and
_____(4) A market-growth assistance fund to be used to attract
private capital to the equity and debt funds.
_____To implement these investment activities, the trust may
retain, through a bid process, a public or private sector
investment fund manager or managers who have prior knowledge and
experience in fund management and possess related skills in
renewable energy and related technologies development, to direct
the investment activity described herein and to seek other fund
cosponsors to contribute public and private capital.
_____(g) For the purposes of expenditures from the fund, renewable
energy technologies eligible for assistance include the following:
Solar photovoltaic and solar thermal electric energy; wind energy;
geothermal energy; fuel cells; landfill gas; waste-to-energy which
is a component of conventional municipal solid waste plant
technology; naturally flowing water and hydroelectric; low
emission, advanced biomass power conversion technologies; anaerobic
digesters and storage and conversion technologies connected to
qualifying generation projects using best available technologies. These funds may also be used for appropriate joint energy
efficiency and renewable energy projects.
_____(h) The use by the trust of moneys to implement the provisions
of this section is considered to be an essential governmental
function.
_____(i) The Governor, with the advise and consent of the Senate,
shall appoint a board of directors to assist and oversee the
division in matters related to the fund and in its management and
implementation. The board shall include not more than fifteen
individuals with experience in matters related to the general
purpose and activities of the fund and with the knowledge and
experience in at least one of the following areas: Electricity
generation and supply; economic, financial or investment consulting
expertise relative to the fund; development or commercialization of
renewable energy resources; institutions of higher education; and
renewable energy and energy efficiency issues. The board further
shall include a member of the office of the Treasurer, a member of
the Public Service Commission and two members of the West Virginia
Legislature.
_____(j) Beginning with the fiscal year ending in 2014, the board
shall annually submit to the Governor and the Legislature a report
detailing the expenditure and investment of moneys from the fund
over the previous fiscal year and the ability of the fund to meet
the requirements and provisions of this section and any recommendations for improving the ability of the board, the trust
and the fund to meet the requirements and provisions herein.
NOTE: The purpose of this bill is to create and implement a
fund to encourage the development and use of renewable forms of
energy and energy efficiency programs, projects and enterprises.
This article is new; therefore, it has been completely
underscored.