WVCA Legislative Update
Below is a message from Chris Hamilton, President, West Virginia Coal Association:
Chris Hamilton
To: WVCA Membership
From: Chris Hamilton, Jason Bostic
Re: Legislative Update
Today is the 20th day of the 2026 Regular Session of the West Virginia Legislature.
As of today, there have been 1,707 total bills introduced in the House and Senate. Of that total, 297 (16%) are related to the coal industry.
Here is a document listing all the legislation currently being tracked by the Association.
Several WVCA backed bills have been advanced by the Senate Energy Industry and Mining Committee https://www.wvlegislature.gov/committees/senate/SenateCommittee.cfm?Chart=eim . These include:
SB 20 prohibiting the PSC from approving any fee or rate increase or any costs associated with construction, operation, maintenance or decommissioning of any energy facility that produces power solely from an intermittent power source like solar or wind. Referred to Senate Finance. https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/sb20%20sub1.pdf
SB 25 creating the WV Coal Marketing Program in the Governor’s office designed to protect and expand state coal markets and coal facilities, in part by promoting and educating the public on state coal markets and industry. Proceeds from Friends of Coal license plates is the primary source of funding for the program. Referred to Senate Finance. https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/sb25%20sub1.pdf
SB 131 creating a special tax credit against severance taxes for certain coal production and processing facilities and infrastructure projects. Any project encroaching on state or public roads must be approved by the Department of Highways. Qualifying projects per SB 131 are eligible for a fifty percent (50%) credit. Referred to Senate Finance. https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/sb131%20sub1.pdf
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US Coal Generation Surges During Winter Storm Fern Crisis
US coal generation during Winter Storm Fern revealed critical insights about America's electricity infrastructure vulnerabilities during extreme weather events. The operational response demonstrated coal's unique position within America's generation portfolio, with output surging from approximately 70 GWh daily in mid-January to roughly 130 GWh daily during peak storm conditions. This near-doubling of coal generation capacity occurred whilst natural gas generation increased by only 14% during the same period, highlighting fundamental differences in emergency response capabilities between fuel sources.
The crisis exposed how extreme weather creates cascading failures across multiple energy systems simultaneously. Furthermore, it demonstrated the interconnected nature of energy transition challenges facing modern grid operators during periods of peak demand and constrained supply.
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Coal's Strategic Baseload Advantages During Crisis Periods
Coal-fired generation offers distinct operational advantages during extreme weather events that stem from its fuel storage characteristics. Unlike natural gas infrastructure, which depends on pipeline networks vulnerable to freeze-offs and residential heating priority allocation, coal plants maintain on-site fuel inventories that cannot be redirected for competing uses during supply crunches.
The 31% increase in coal generation during Winter Storm Fern represents the activation of existing capacity rather than new construction. This indicates that coal units remain operationally ready despite ongoing retirement discussions. Consequently, this dispatchability advantage becomes particularly valuable when alternative fuel sources face supply constraints.
During the storm period, multiple factors favoured coal deployment:
• Fuel security: On-site coal stockpiles eliminate pipeline dependency
• Price stability: Coal costs remain relatively stable during gas price spikes
• Rapid activation: Existing units can increase output within hours
• Weather resistance: Coal handling systems generally withstand extreme cold
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Metallurgical Coal Market Trends Shaping the Future of Steel and Infrastructure
The Metallurgical Coal Market size was valued at USD 15.13 Billion in 2024 and the total Metallurgical Coal revenue is expected to grow at a CAGR of 2.4% from 2025 to 2032, reaching nearly USD 18.29 Billion.
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Metallurgical Coal Market Overview
The Metallurgical Coal Market is deeply connected to the performance of the global steel sector, as metallurgical coal is an essential raw material used in blast furnace operations. Steel remains indispensable for construction, transportation, machinery, and large-scale infrastructure, making this market a strategic pillar for economic growth. Demand patterns are shaped by urbanization, industrialization, and government-backed infrastructure initiatives, especially in fast-growing economies.
In recent years, the Metallurgical Coal Market has also been influenced by operational efficiency improvements and evolving production practices. Mining companies are increasingly focused on optimizing extraction methods, improving safety standards, and reducing operational disruptions. These efforts are aimed at ensuring consistent supply while managing cost pressures and adapting to changing regulatory and environmental expectations.
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