H. B. 2850
(By Delegates Manchin, Fleischauer, Caputo,
Wells and Moore)
[Introduced January 25, 2011; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §11-13BB-1,
§11-13BB-2, §11-13BB-3, §11-13BB-4, §11-13BB-5 and §11-13BB-6;
and to amend and reenact §22-11-8 of said code, all relating
to coal slurry disposal; establishing a corporate net income
tax credit for developing alternative technologies for
disposal of coal slurry; and prohibiting new permits and
modifications and renewals of existing permits for underground
injection of coal slurry.
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 §11-13BB-1, §11-13BB-2,
§11-13BB-3, §11-13BB-4, §11-13BB-5 and §11-13BB-6; and that
§22-11-8 of said code be amended and reenacted, all to read as
CHAPTER 11. TAXATION.
ARTICLE 13BB. CORPORATE NET INCOME TAX CREDIT FOR COAL CLEANING
AND PREPARATION FACILITIES.
§11-13BB-1. Short title.
This article shall be known as the "Alternative Coal Slurry
§11-13BB-2. Legislative finding and purpose.
The Legislature finds that production of coal is very
important to the economy of this state, and that a sound economy is
in the public interest and promotes the general welfare of the
people of this state. However, there are concerns regarding the
potential for harmful effects to the public health and the
environment resulting from the [generation and] current methods of
disposal of coal slurry, which is a by-product of the coal cleaning
process. In order to encourage capital investment in alternative
technologies which eliminate the generation of coal slurry or
eliminate existing coal slurry disposal sites in this state, there
is hereby established a corporate net income tax credit for
investments in coal mining operations which implement these
(a) Any term used in this article shall have the same meaning
as when used in a comparable context in article twenty-four of this
chapter, unless a different meaning is clearly required by the
context of its use or by definition in this article.
(b) For purposes of this article, "coal mining operation"
means any operation which is granted or should obtain a permit to
engage in any activity covered by article three, chapter twenty-two
of this code and any rule promulgated under that article and
includes any operation which engages in surface mining operations
as defined by article three, chapter twenty-two of this code.
§11-13BB-4. Amount and application of credit.
(a) There shall be allowed to eligible taxpayers a credit
against the corporate net income tax imposed by article twenty-four
of this chapter, for investment in alternative technologies which
eliminate or reduce the generation of coal slurry or which
eliminate existing coal slurry disposal sites. The amount of this
credit shall be determined as hereinafter provided in this section.
(b) The amount invested under subsection (a) of this section
shall be applied to reduce up to fifty percent of the taxes imposed
by article twenty-four of this chapter for the tax year.
§11-13BB-5. Tax Commissioner to promulgate forms and legislative
The State Tax Commissioner shall propose legislative rules for
legislative approval pursuant to article three, chapter
twenty-nine-a of this code regarding the applicability and method
of claiming of the credit.
§11-13BB-6. Effective date.
The credit shall be allowed for taxable years beginning on or after July 1, 2011.
CHAPTER 22. ENVIRONMENTAL RESOURCES.
ARTICLE 11. WATER POLLUTION CONTROL ACT.
§22-11-8. Prohibitions; permits required.
(a) The secretary may, after public notice and opportunity for
public hearing, issue a permit for the discharge or disposition of
any pollutant or combination of pollutants into waters of this
state upon condition that the discharge or disposition meets or
will meet all applicable state and federal water quality standards
and effluent limitations and all other requirements of this article
and article three, chapter twenty-two-b of this code.
(b) It is unlawful for any person, unless the person holds a
permit therefor from the department, which is in full force and
(1) Allow sewage, industrial wastes or other wastes, or the
effluent therefrom, produced by or emanating from any point source,
to flow into the waters of this state;
(2) Make, cause or permit to be made any outlet, or
substantially enlarge or add to the load of any existing outlet,
for the discharge of sewage, industrial wastes or other wastes, or
the effluent therefrom, into the waters of this state;
(3) Acquire, construct, install, modify or operate a disposal
system or part thereof for the direct or indirect discharge or
deposit of treated or untreated sewage, industrial wastes or other wastes, or the effluent therefrom, into the waters of this state,
or any extension to or addition to the disposal system;
(4) Increase in volume or concentration any sewage, industrial
wastes or other wastes in excess of the discharges or disposition
specified or permitted under any existing permit;
(5) Extend, modify or add to any point source, the operation
of which would cause an increase in the volume or concentration of
any sewage, industrial wastes or other wastes discharging or
flowing into the waters of the state;
(6) Construct, install, modify, open, reopen, operate or
abandon any mine, quarry or preparation plant, or dispose of any
refuse or industrial wastes or other wastes from the mine or quarry
or preparation plant: Provided,
That the department's permit is
only required wherever the aforementioned activities cause, may
cause or might reasonably be expected to cause a discharge into or
pollution of waters of the state, except that a permit is required
for any preparation plant: Provided, however,
That unless waived
in writing by the secretary, every application for a permit to
open, reopen or operate any mine, quarry or preparation plant or to
dispose of any refuse or industrial wastes or other wastes from the
mine or quarry or preparation plant shall contain a plan for
abandonment of the facility or operation, which plan shall comply
in all respects to the requirements of this article. The plan of
abandonment is subject to modification or amendment upon application by the permit holder to the secretary and approval of
the modification or amendment by the secretary; or
(7) Operate any disposal well for the injection or reinjection
underground of any industrial wastes, including, but not limited
to, liquids or gases, or convert any well into such a disposal
well or plug or abandon any such disposal well.
(c) Where a person has a number of outlets emerging into the
waters of this state in close proximity to one another, the outlets
may be treated as a unit for the purposes of this section, and only
one permit issued for all the outlets.
(d) Notwithstanding any provision of this code to the
contrary, effective with the enactment of this subsection by the
Legislature during the regular session of 2011, the issuance of new
permits, permit modifications, or permit renewals for the
injection of coal slurry is prohibited.
NOTE: The purpose of this bill is to prohibit new permits or
modifications and renewals of existing permits for the underground
injection of coal slurry; and create a tax incentive program for
development of alternative technologies for management and disposal
of coal slurry.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
§11-13BB-1 through §11-13BB-6 are new; therefore, it has been
This bill was recommended for introduction and passage during
the Regular Session of the Legislature by the Joint Judiciary