SD58 - Report of the Virginia Coal and Energy Commission


Executive Summary:
The Virginia Coal and Energy Commission is directed by its enabling legislation to study coal as an energy resource and to promote the development of renewable and alternative energy resources other than petroleum. Between the 1994 and 1995 Sessions of the General Assembly, the full Commission met three times: first in Abingdon, then in Blacksburg, and finally in Richmond. Noteworthy was the Commission's two-day meeting in Blacksburg held in conjunction with the Annual Institute on Mining Health, Safety and Research sponsored by Virginia Tech.'s Department of Mining and Minerals Engineering.

The Commission's subcommittees were also very active during this interval. The Coal Subcommittee met in Wytheville, Abingdon and Richmond at the Commission's direction to determine the extent of the coal industry's economic crisis and to develop legislative initiatives in aid of that industry. The Oil and Gas Subcommittee met to receive reports on Virginia's growing natural gas industry and to discuss proposed tax legislation affecting coalbed methane gas production. Finally, the Energy Preparedness Subcommittee convened to receive its annual briefing on the Commonwealth's energy and weatherization assistance programs, and to receive an update from the Department of Mines, Minerals and Energy on the Virginia Energy Plan, an initiative promoting energy efficiency, conservation and innovation within state government.

The Commission convened a final meeting in January 1995 to receive the subcommittee reports and recommendations. At that meeting, the Commission endorsed a coal industry tax credit proposal (proposed by the Coal Subcommittee), an initiative aimed at stimulating coal production and sales within the domestic and export markets. The Commission directed the Coal Subcommittee to work with coal industry representatives to finalize the details of legislation introduced in the 1995 General Assembly Session. The Commission further recommended that the subcommittee continue its examination of the coal industry's economic problems as part of the Commission's work in 1995.

Acting on the Oil and Gas Subcommittee's recommendation, the Commission voted to recommend that the Department of Mines, Minerals and Energy be authorized by statute to certify as eligible for sales and use tax exemptions, pollution control equipment used for coal, oil and gas production. In conjunction with the Energy Preparedness Subcommittee's continuing oversight of energy and weatherization assistance programs, the Commission recommended that to the .extent permitted by federal law, a percentage of the federal grant dollars currently spent on fuel assistance for low-income families within the Commonwealth be redirected to weatherization assistance for this same income group.

Finally, the Commission communicated with Virginia's Congressional Delegation urging its members to oppose proposed increases in the federal Vessel Tonnage Tax. The Commission concluded that this tax increase would further weaken Virginia coal exports. Correspondence received in return indicated that although the measure had been passed by the House of Representatives as part of a larger measure, the bill had stalled in the Senate.