Business, Government Legal News from throughout WVMore ethane cracker incentive requests could be on the way to WV

A week after the West Virginia Legislature passed House Bill 4086 to create tax incentives in hopes of attracting an ethane cracker, Gov. Earl Ray Tomblin could very well make more requests as competition heats up.

Tomblin visited Shell Chemical in Houston last week, where he and other officials, including Commerce Secretary Keith Burdette and Department of Environmental Protection Secretary Randy Huffman, made their case. According to the Associated Press, one ethane cracker could create as many as 12,000 direct jobs, plus thousands more secondary jobs. An ethane cracker plant "cracks" the molecules in ethane, a byproduct of Marcellus shale gas, to create ethelyne, which is often used in plastics.

But as Ohio and Pennsylvania pass their own bills to attract a cracker plant, Tomblin spoke of the possibility of presenting the Legislature with more incentive requests in order to procure the $1 billion to $2 billion investment. However, members of the Legislature say they're not sure what incentives the governor may have in mind.

"The possibilities are probably many, but I think it will be up to the governor's office to determine what is feasible within the confines of our budget," said House Majority Leader Brent Boggs, D-Braxton. "We're very fortunate that we're in good shape financially — certainly better than surrounding states. But it just depends on what direction the governor wants to go in."

Pennsylvania legislators are considering tax incentives. If a company decides to invest $1 billion or more in a cracker facility in that state, it will get a 15-year tax break. Ohio also has assembled its own tax incentives package, according to the Associated Press.

Tomblin signed House Bill 4086 into law Jan. 27 before flying to Houston for the meeting. While legislators don't know what transpired in the meeting, they said they are eager to find out.

"We're anxious to sit down with him and let him tell us what transpired during the negotiations in Texas, but we're just optimistic that this is going to be good for West Virginia," said Sen. Roman Prezioso, D-Marion, and chairman of the Senate Finance Committee. "We're willing, this Finance Committee stands ready, and I'm sure my colleagues in the House stand ready."

House Bill 4086 passed the Legislature quickly. The House and Senate both suspended rules that bills must be read on three separate days in order to introduce, read and pass the bill on the same day. Boggs said he is confident the Legislature can act quickly to pass any additional incentives the governor may introduce.

"We are certainly more than willing and able — and we've demonstrated that — to move quickly and decisively on behalf of the citizens of the state," he said.