Committee approves Commerce rule for microgrid districts, sets 4-mile "nearly contiguous" test
March 05, 2026 | 2026 Legislature WV, West Virginia
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Counsel explained the committee substitute for House Bill 4983, a rule that would allow the Department of Commerce to certify microgrid districts and high-impact data centers.
Counsel said the rule requires petitioners to be registered to do business in West Virginia, to make good-faith efforts to negotiate for electricity with the local utility (unless an exception applies), to avoid soliciting utility customers to relocate into a proposed district, and to have an interest in and control over the real estate that comprises the microgrid. The rule allows certified microgrid districts to deliver a maximum of 10% of generated electricity outside the district and only to the wholesale market, and places a cap of 2,250 acres on the entirety of a nearly contiguous property.
On the question of how to define "nearly contiguous property," counsel described the rulemaking history: the notice version set a 1-mile limit, an agency-approved draft used 1.5 miles, and the adopted language increases that to 4 miles. Counsel also said petitioners seeking high-impact data-center certification must submit economic, financial and engineering information, attestations about critical IT loads and proximity to sensitive places, and that certified entities will file annual confidential reports; the secretary must provide written reasons for adverse decisions and decisions are appealable through the normal contested-case section of code.
Senator from Jefferson noted a handout with frequently asked questions addressing concerns such as water and electric usage and thanked counsel; no further substantive objections were raised. The vice chair moved to adopt the strike-and-insert amendment as described by counsel; the committee adopted the amendment, voted to report House Bill 4983 to the full Senate with a recommendation that it do pass, and adopted a title amendment.
The rulemaking language now advances to the full Senate as the committee recommended.
Counsel said the rule requires petitioners to be registered to do business in West Virginia, to make good-faith efforts to negotiate for electricity with the local utility (unless an exception applies), to avoid soliciting utility customers to relocate into a proposed district, and to have an interest in and control over the real estate that comprises the microgrid. The rule allows certified microgrid districts to deliver a maximum of 10% of generated electricity outside the district and only to the wholesale market, and places a cap of 2,250 acres on the entirety of a nearly contiguous property.
On the question of how to define "nearly contiguous property," counsel described the rulemaking history: the notice version set a 1-mile limit, an agency-approved draft used 1.5 miles, and the adopted language increases that to 4 miles. Counsel also said petitioners seeking high-impact data-center certification must submit economic, financial and engineering information, attestations about critical IT loads and proximity to sensitive places, and that certified entities will file annual confidential reports; the secretary must provide written reasons for adverse decisions and decisions are appealable through the normal contested-case section of code.
Senator from Jefferson noted a handout with frequently asked questions addressing concerns such as water and electric usage and thanked counsel; no further substantive objections were raised. The vice chair moved to adopt the strike-and-insert amendment as described by counsel; the committee adopted the amendment, voted to report House Bill 4983 to the full Senate with a recommendation that it do pass, and adopted a title amendment.
The rulemaking language now advances to the full Senate as the committee recommended.
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