WV Senate President Dissatisfied With Data Center Law, Expects Revisions
Plus, suspects caught in Thomas vandalism incident
By Mat Cloak, contributing writer
A powerful backer of the controversial new state law boosting data center development said he is dissatisfied with key provisions of the legislation, adding that there will be revisions to it.
“I’ll be honest with you, I had a hard time voting for it,” West Virginia Senate President Randy Smith said during an informational session in Parsons. “Since I’m Senate president, if I wanted to kill it, I could. It’s hard on your political career to kill a governor’s bill.”
Smith, a Republican, was referring to a “microgrid” bill, HB 2014, championed by Republican Governor Patrick Morrisey that was enacted earlier this year. The law allows companies to get all the approvals needed to build data centers without local input. That expedited approval process means that local governments have no authority to stop data centers from springing up in their communities.
Critics of the legislation also say that it unfairly blocks local schools from getting any of the new property tax revenue generated by data centers.
About 30 people attended the meeting Thursday at the Tucker County Senior Center. Smith represents Tucker County in the West Virginia Senate. He fielded a wide range of questions for about an hour about the potential impact of the new law and a proposed data center complex near Davis and Thomas.
Throughout the meeting, Smith stressed there will be revisions to the law. “There will be a lot of changes to (HB 2014) over the next couple years,” he said.
Smith said he discussed the local control issue with Morrisey, whose office wrote and pushed the bill through the legislature. “Local control is a big issue,” Smith said. “It was a big issue when it was being passed. That’s one thing our members want to address.”
Smith suggested that upcoming revisions to the new law would restore the ability of local governments to have control over the location of “microgrid” developments.
“I’ll be honest with you, I had a hard time voting for it.”
— West Virginia Senate President Randy Smith
Smith also addressed complaints that most of the property tax revenue from such facilities would be diverted to state coffers instead of going to local schools and municipalities, as would typically be the case. “It’s important that we revisit this so the school system gets their share of the money,” Smith said.
The microgrid law allows counties to keep 30 percent of new property tax revenue generated by data centers, with another 10 percent distributed to counties on a per-capita basis. Other local jurisdictions, including local schools, would get none of the new property taxes generated by data centers. Governor Morrisey has touted the microgrid law as a source of revenue for the state budget that will eventually allow West Virginia to eliminate its state income tax.
Questions raised about Fundamental Data
Smith said he believes that Fundamental Data, the secretive Virginia company seeking to build a power plant near Davis and Thomas to provide electricity for a data center complex, doesn’t have the kind of money necessary to finance such an enormous project.
“My personal opinion, after talking to them, they’re trying to get something together that they can sell. They don’t have the money,” Smith said. “This project, if it comes through for Fundamental, it won’t be through them. I think what they’re trying to do is come up with a business plan, and get all the permits.”
Smith also suggested that officials from Mineral and Grant Counties have met with Fundamental Data about moving the facility to their counties.
Smith fielded a number of questions from the audience regarding environmental concerns. He specifically noted his concern about the 30 million gallons of diesel that would be stored on the site of the power plant. “That kind of throws up a red flag,” Smith said. “I don’t know why they would have to have that much diesel fuel. I don’t want to see 30 million gallons of diesel fuel anywhere.”
Economic development
Smith and attendees at the meeting also discussed alternative forms of economic development for the area.
After the meeting, Nikki Forrester, a spokesperson for Tucker United, a local group formed to oppose the proposed data center complex, commended Smith for being candid about his concerns and for answering questions from the community. Forrester said Tucker United is eager to help attract businesses that create family-supporting jobs while preserving the area’s natural resources and quality of life.
“We were heartened to hear that Senate President Randy Smith shares our vision for good economic development,” Forrester said in a statement. “We welcome continued conversations with Senator Smith about how to create a prosperous future for our neighbors that involves education, job training, and good job opportunities for Tucker County residents of all ages.”
Differing opinions
Local views of the proposed power plant and data center complex vary. Many people object to its proximity to Thomas and Davis, areas that rely heavily on tourism. Others see the project as a much-needed boon for jobs and tax revenue for a county struggling to support EMS and other services.
Smith addressed that divide in the community. “It’s split. I hear from both sides. People don’t think there are a lot of people that support it. A lot of the people I hear from that support it are afraid to be vocal about it because they get ridiculed,” Smith said.
“I just ask that people don’t panic because it won’t be in your backyard next month or next year.” “There won’t be a data center built in downtown Davis or downtown Thomas.”
He added, “it’s nothing etched in stone. It’s not like the sky is falling or something is going to happen overnight. There may never be a microgrid up here, there may never be a data center up here.”
More News
Alleged Vandals Caught in Thomas Graffiti Incident
The vandals who allegedly damaged a historic wall and other properties in Thomas have been identified and charged with felony destruction of property, Tucker County Sheriff Jake Kopec said.
The suspects, a male and female in their 20s, face a year in prison or more over the incident last month, Kopec said. The woman has been arrested and the man, who also faces legal action for other alleged incidents, has fled.
“He is on the lam, so to speak,” Kopec said.
The pair, who are relatively recent arrivals to this area, posted videos of their alleged crime on social media, Kopec said. The vandalism is a felony because of the expense required to fix the damage, he added.
The wall will never look quite the same because of the chemicals required to remove the graffiti, Kopec said.
I do not believe a thing Smith says. He championed the very same bill he is now ridiculing. Smith is a typical politician that talks out of both sides of his mouth. If Senate President Randy Smith is so concerned with the content of HB2014, he could have called for a special session of the WV legislator to address these concerns. In the words of the Bard, "something is rotten in the state of Denmark."
Randy Smith admitted he works for himself and the governor, not the citizens of WV. Shame on him.