(The Center Square) – Legislation to abolish sure coal subsidies will head again to the General Assembly after Gov. Ralph Northam supplied an modification to specify the place the cash might be redirected.
House Bill 1899 would finish two main subsidies for the coal trade: the Coal Employment and Production Incentive Tax Credit and the Coalfield Employment Enhancement Tax Credit. The invoice obtained help from Democratic leaders and opposition from Republicans.
The laws would halt the allocation of credit by Jan. 1, 2022, however all credit earned earlier than that date might nonetheless be claimed with a cap of $1 million yearly for the carryover credit. The subsidies value the state $21 million in gross home product and $5 million in private earnings between 2010 and 2018, in accordance with a overview by the Joint Legislative Audit and Review Commission. The coal trade saved about $291.5 million throughout that point interval.
An modification by Northam would require that the cash saved by the federal government for eliminating these subsidies be redirected to the University of Virginia’s College at Wise in Southwest Virginia to increase course choices in information science, laptop science and renewable power.
The laws is a part of a broader push by Democratic lawmakers to maneuver the state away from carbon-producing power sources and exchange them with renewable sources. Dominion Energy is required to provide 100% of its power with renewable sources by 2045 and Appalachian Power is required to do the identical by 2050.
Supporters of the transfer towards renewable power have said environmental advantages, however opponents have cautioned that it may very well be pricey for taxpayers and ratepayers.