Celinda Lake, Daniel Gotoff, and Alex DunnWashington, DC | Berkeley, CA | New York, NY

LakeResearch.com202.776.9066

Findings from a Statewide Survey of 407 Likely Voters in West Virginia

2

Methodology

• Lake Research Partners designed and administered this survey that was conducted by telephone using professional interviewers. The survey reached a total of 407 likely 2014 General Election voters in West Virginia. The survey was conducted June 12th through June 16th, 2013. The margin of error for this poll is +/- 4.9%.

• Telephone numbers for the sample were generated from a file of registered voters. The sample was stratified geographically to reflect the expected turnout of voters in the 2014 General Election. The data were weighted slightly by gender, age, education, party identification, and region.

• In interpreting survey results, all sample surveys are subject to possible sampling error – that is, the results of a survey may differ from those that would be obtained if the entire population were interviewed. The size of the sampling error depends upon both the total number of respondents in the survey and the percentage distribution of responses to a particular question. For example, if a response to a given question which all respondents answered was 50%, we could be 95% confident that the true percentage would fall within plus or minus 4.9% of this percentage, or between 45.1% and 54.9%.

3

• West Virginians also want to see the revenue derived from their natural resources dedicated to the benefit of their communities.

• A new “Future Fund” that promotes economic development generates widespread enthusiasm and very little opposition from West Virginia voters. Majorities of voters from across the political spectrum, and from every region of the state, favor the Future Fund and by commanding margins.

• Similarly, voters favor raising the coal tax by an impressive 50-point margin. Half of all likely voters support the proposal strongly.

• Support for this proposal is not only broad and deep—it is remarkably resilient; voters rate the standard range of coal industry scare tactics with only lukewarm potency and, more important, overall support for increasing the coal tax never wavers.

Key Findings

The Political and Economic Context

Voters are quite upbeat about the various mainstream coal alternatives tested, including natural gas, clean coal, and renewables, like wind and solar energy. Strong majorities also support fully enforcing the Clean Water Act, despite their more generalized skepticism of the EPA.

Excellent/Good Just Fair/Poor Excellent/Good Just Fair/Poor

35

65

24

75

428

6

33

Voters register high levels of dissatisfaction with the state of West Virginia’s economy, and in particular their own local economy.

*Asked of ½ the sample. Darker colors indicate intensity.

And how would you rate [the local economy / the economy] in [your part of the state / West Virginia] – excellent, good, just fair, or poor?

Economic Ratings for...

Your Local Economy* West Virginia’s Economy*

-51-30

5

The coal industry retains a broadly popular profile. The Clean Water Act shows remarkable appeal as a vehicle for environmental protection.

Now I'd like to ask you about some public figures, organizations, and issues. For each, please tell me whether you have a VERY favorable, SOMEWHAT favorable, somewhat UNFAVORABLE, or VERY unfavorable impression. If you have heard of the person, organization, or issue but do not know enough to have an impression or if you haven’t heard of it, just say so, and we will move on.

The coal industry

The Clean Water Act

West Virginia coal companies*

Coal companies*

Your member of Congress

The multi-national coal industry

Shelley Moore Capito

Barack Obama

The Environmental Protection Agency*

The EPA

8077

7070

7963

544551

47

148

2124

1213

2053

3845

5552

3429272626252321

109

58

1342

1827

Unfavorable Net NO/NH

+69

*Asked of ½ the sample. Darker colors indicate intensity.

15

Favorability Ratings: Actors and Institutions

6

Favorable

+34 14

+34 27

+2 8

+49 9

+50 24

-8 3

+46 7

+13 11

+66 5

All of the coal alternatives tested are highly popular in West Virginia. There appears to be little political benefit in describing green energy sources as “clean” versus “renewable”.

Now I'd like to ask you about some public figures, organizations, and issues. For each, please tell me whether you have a VERY favorable, SOMEWHAT favorable, somewhat UNFAVORABLE, or VERY unfavorable impression. If you have heard of the person, organization, or issue but do not know enough to have an impression or if you haven’t heard of it, just say so, and we will move on.

Natural gas

Renewable energy, like wind and solar*

Clean coal

Clean energy, like wind and solar*

Wind power

Mountaintop removal coal mining

89

79

79

78

76

39

7

15

12

16

15

47

53

52

51

50

46

17

7

5

7

8

29

Unfavorable Net NO/NH

+82

*Asked of ½ the sample. Darker colors indicate intensity.

4

Favorability Ratings: Energy Sources

7

Favorable

+67 10

+61 10

-8 14

+65 6

+62 6

Gotten Better Stayed About the Same

Gotten Worse Gotten Better Stayed About the Same

Gotten Worse

21

58

20 26

50

19

For the most part, West Virginians assess the environmental quality of their state and region as fairly stable, though relatively few believe the quality of the environment has improved.

*Asked of ½ the sample.

Overall, do you think the quality of the environment in [your part of the state / West Virginia] has gotten better, stayed about the same, or gotten worse?

Quality of the Environment in...

Your Part of the State* West Virginia*

8

Favor Oppose Favor Oppose

70

7

74

10

57

4

57

7

West Virginians overwhelmingly favor enforcing the Clean Water Act. Notably, voters demonstrate the same intensity of support for fully enforcing the Clean Water Act to safeguard West Virginia waterways from coal mining as can be seen without direct reference to coal mining.

*Asked of ½ the sample. Darker colors indicate intensity.

And would you favor or oppose fully enforcing the Clean Water Act to safeguard streams, rivers, and lakes in West Virginia [from coal mining], or aren’t you sure?

Fully Enforcing the Clean Water Act

To Safeguard Streams, Rivers, Lakesfrom Coal Mining

To Safeguard Streams, Rivers, Lakes

+64+63

9

10

Renewable Energy Fossil Fuels Don't Know

4248

83140

Posing a forced choice between emphasizing the development of renewable energy and the production of more oil, gas, and coal uncovers the risks of an impatient approach to energy transition in West Virginia. Voters favorable to new, sustainable energy opportunities, but pressuring them to decide between those opportunities and the industry they know leaves advocates in a losing position.

-6

And when it comes to West Virginia’s energy future, which of the following statements comes closer to your view?

And when it comes to West Virginia’s energy future, which of the following statements comes closer to your view?

Statement A: (Some people/ other people) say West Virginia should emphasize the development of renewable energy, such as wind and solar power.

Statement B: (some people/ other people) say West Virginia should emphasize production of more oil, gas, and coal supplies.

West Virginia’s Energy Future

11

Diversified En-ergy Economy*

Coal Economy Don't Know Diversified Economy*

Coal Economy Don't Know

55

39

5

5441

540 31

43 35

An approach that calls for beginning to rely less on coal jobs in order to diversify West Virginia’s economy draws majority support and leads a fossil fuel-only strategy by a double-digit margin. Emphasizing the term diversification helps assuage concerns that the effort is merely a disguised assault on the extractive industries and its associated jobs.

+16

*Asked of ½ the sample. Darker colors indicate intensity.

And when it comes to West Virginia’s economic future, which of the following statements comes closer to your view?

Statement A*: (Some people/ other people) say West Virginia should begin the transition into a more diversified energy economy that relies less on coal jobs.

Statement B: (some people/ other people) say West Virginia should emphasize production of more oil, gas and coal supplies.

West Virginia’s Economic Future

Statement A*: (Some people/ other people) say West Virginia should begin the transition into a more diversified economy that relies less on coal jobs.

+13

More Likely Less Likely More Likely Less Likely

29

42 4134

1524 23 23

Additionally, voters say they are less likely to back elected officials who attempt to reduce such regulations, and more likely to favor officials who want to increase them. This is a divisive issue that lacks a clear consensus, however.

*Asked of ½ the sample. Darker colors indicate intensity.

Suppose an elected official were in favor of [reducing/increasing] environmental regulations on coal mining? Would that make you more or less likely to support that elected official, or wouldn’t it make any difference?

Likelihood to Support Elected Officials in Favor of...

Reducing Environmental Regulations Increasing Environmental Regulations

12

Support for the Future Fund and Raising the Coal Tax

This electorate is poised to embrace an increase in West Virginia’s coal tax in order to fund economic development projects, infrastructure projects, and education and worker training programs. Majorities of every major subgroup—by party, gender, age, education level, and region (including coal country)—favors this proposal and with visible intensity.

The Future Fund is highly popular, outpacing opposition by nearly a 7:1 margin. Intensity of support is also noteworthy. Specifying that the funds would subsidize education, public safety, and land conservation generates slightly more enthusiasm than confining the measure to infrastructure projects only.

14

Favor Oppose Undecided Favor Oppose Undecided

69

1218

71

11 1641

8

45

6

West Virginia Future Fund

Infrastructure Projects* Education, Public Safety & Land Conservation*

+59+57

*Asked of ½ the sample. Darker colors indicate intensity.

On another topic, oil and natural gas companies currently pay a tax of about 4.4% of the value of the oil and gas they extract in West Virginia. This money is used in West Virginia's General Fund and Infrastructure Fund, and some of it is sent back to the counties where the resources came from. There is a proposal to use a portion of this money to create the "West Virginia Future Fund," which would be designated solely for the purpose of economic development [and infrastructure projects/education, public safety, and land conservation projects], especially for oil and gas-producing counties and municipalities. Do you favor or oppose this proposal, or are you undecided?

Support for raising West Virginia’s coal tax to fund economic development, infrastructure, education and job training in the state is remarkable not just in its breadth (nearly seven in ten voters favor the increase), but in its intensity as well.

15Coal companies pay a similar tax of about 6.5% on the right to mine coal in West Virginia. There is a proposal to increase this tax by 1% and use the additional money for economic development projects, infrastructure projects, and education and worker training programs, especially in the West Virginia counties and municipalities where the coal is extracted. Do you favor or oppose this proposal, or are you undecided?

Favor Oppose Undecided

69

1911

50

11

+51

Initial Ballot: Raise Coal Tax by 1%

16

Raising the coal tax generates impressive support across the board. Republicans and Democrats back the tax at equal levels, though work remains to be done with independents, who are slightly more skeptical. Voters with a direct connection to the coal industry are even more likely to favor the increase.

Total

Men (48%)Women (52%)

Under 50 (44%)50 and over (56%)

Non-college graduate (63%)College graduate (36%)

Democrats (40%)Independents (19%)

Republicans (35%)

Charleston/ Huntington (27%)South (22%)North (26%)

Central/ East (25%)

CD-01 (36%)CD-02 (34%)CD-03 (30%)

Coal household (26%)Non-coal household (72%)

19

2017

1422

2016

1824

17

19211817

1718

21

1819

69

6772

7664

6872

7258

74

7072

6969

677170

7268

Favor Oppose

Net Und11+51

12+4711+54

9+6213+42

11+4812+56

10+5416+348+58

11+517+5113+50

15+5010+538+50

14+51

10+5512+49

Coal companies pay a similar tax of about 6.5% on the right to mine coal in West Virginia. There is a proposal to increase this tax by 1% and use the additional money for economic development projects, infrastructure projects, and education and worker training programs, especially in the West Virginia counties and municipalities where the coal is extracted. Do you favor or oppose this proposal, or are you undecided?

Initial Ballot Contours

Presenting voters with context—that other coal states impose a markedly higher effective tax rate of 11% on coal—leaves support (and opposition) virtually unchanged. Despite expectations for positive movement as a result of this information, support may already be at or very near its ceiling in this electorate.

17As you may know, states like Wyoming with similar coal industries have effective tax rates of approximately 11% of the value of the coal extracted from their land. Knowing that, do you favor or oppose the proposal to increase West Virginia’s 6.5% coal extraction tax by 1% and use the additional money for economic development projects, infrastructure projects, and education and worker training programs, especially in the West Virginia counties and municipalities where the coal is extracted, or are you undecided?

Favor Oppose Undecided

68

2011

50

12

+48

Informed Ballot: Raise Coal Tax 1%

Message and PositioningAny messaging in favor of a Future Fund or adjustment to the coal tax should be framed in terms of the benefits to West Virginians—particularly where infrastructure, like roads and schools, or additional funding for higher education is part of the package. Additionally, provisions for stricter enforcement of Clean Water Act protections for the state’s waterways should be highlighted. The attacks on diversification raise some concerns, but only with relatively isolated segments of the electorate.

Infrastructure and higher education investments hold clear sway over West Virginians’ economic priorities, trumping other ideas like offering new small business incentives, funding tourism projects, creating new renewable energy job training programs, and promoting clean coal.

19

Investing in infrastructure like roads and schools*

Investing in higher education like universities and community colleges*

Offering new tax incentives to encourage small business and innovation*

Investing in West Virginia’s tourism industry*

Creating new job training programs in the renewable energy sector

Promoting the use of clean coal*

72

65

59

56

55

56

46

41

36

35

33

30

Mean

100: Very Important 80-100: Important

Top-Tier Priorities for West Virginia’s Economic Future

82

79

75

76

73

75

Now, I am going to read you some priorities for West Virginia’s economic future. On a scale of 0 to 100, where 100 is very important and 0 is not important at all, please tell me how important each one is in your own mind. If you don't know how important a priority is, just say so and we'll go on.On a scale of 0 to 100, please tell me how important this priority is for West Virginia’s future.

*Asked of ½ the sample. Darker colors indicate intensity.

Investing specifically in renewable energy, energy efficiency programs, and power plant modernization all rank lower in the spectrum of economic priorities for most West Virginians.

20

Investing in renewable energy sources*

Investing in renewable energy manufacturing*

Offering new tax incentives for expenses related to making homes and commercial buildings more

energy-efficient*

Offering new tax incentives for utility companies so they can modernize power plants that don’t

meet current environmental standards*

Offering new tax incentives for companies that specialize in solar and wind energy, or in making

parts for windmills and solar panels*

51

46

41

34

37

29

24

23

23

22

Mean

100: Very Important 80-100: Important

Second-Tier Priorities for West Virginia’s Economic Future

72

61

61

67

64

Now, I am going to read you some priorities for West Virginia’s economic future. On a scale of 0 to 100, where 100 is very important and 0 is not important at all, please tell me how important each one is in your own mind. If you don't know how important a priority is, just say so and we'll go on.On a scale of 0 to 100, please tell me how important this priority is for West Virginia’s future.

*Asked of ½ the sample. Darker colors indicate intensity.

Safeguarding West Virginia’s streams and rivers outshines a slate of other environmental priorities; in fact, increasing existing protections attracts nearly equal enthusiasm. Very few voters view undoing coal regulations as a solution.

21

Protecting West Virginia's streams and rivers

Strengthening protections for West Virginia’s streams and rivers

Ending mountaintop removal mining

Investing in mine reclamation and redevel-opment

Removing EPA restrictions on coal mining

Loosening EPA restrictions on coal mining

68

65

38

45

31

26

46

41

26

24

17

13100: Very Important 80-100: Important

Priorities for West Virginia’s Environmental Future Mean

80

82

55

59

67

49

Next, I am going to read you some priorities for West Virginia’s environmental future. On a scale of 0 to 100, where 100 is very important and 0 is not important at all, please tell me how important each one is in your own mind. If you don't know how important a priority is, just say so and we'll go on.On a scale of 0 to 100, please tell me how important this priority is for West Virginia’s future.

Each asked of ½ the sample. Darker colors indicate intensity.

Restoring America’s tradition of innovation and leadership on energy by embracing a diverse mix of coal, wind, and solar is the leading reason to support a broader energy economy in West Virginia. Keeping mercury out of the air and water, creating new jobs, and promoting cost savings through energy efficiency all show similar appeal.

22

Restoring America's Leadership

Public Health

Economic Boon - Efficiency

Economic Boon - Jobs

Efficiency - All of the Above

Restoring West Virginia's Leadership

Efficiency - Renewables Only

MTR Destruction

49

45

42

48

46

40

35

34

33

30

30

29

28

27

21

2110: Very Convincing 8-10: Convincing

Positive Messages Mean

6.5

6.1

6.4

5.5

6.2

5.4

6.2

6.0

Now, I'm going to read you [some/some other types of] statements people have made about West Virginia’s economic future. Please tell me whether each statement, assuming it is true, is a convincing reason to support a expanding West Virginia’s energy economy to include other energy sources in addition to coal, on a scale from 0 to 10, where 10 means it is a VERY CONVINCING reason, 0 means it is a NOT AT ALL convincing reason, and you can be anywhere in between. If you are not sure how you feel about a particular item, please say so. Here’s the first one.

Each asked of ½ the sample. Darker colors indicate intensity.

23

Economic Diversification Messages

[RESTORING AMERICA’S LEADERSHIP]When it comes to energy, it’s time for America to lead once again. We must restore our proud tradition of innovation and leadership, starting with pioneering energy solutions like wind and solar, right here in West Virginia. This will jumpstart our economy, creating good-paying American jobs that can’t be outsourced and leaving a state that works for our children and grandchildren.

[PUBLIC HEALTH]Investing in new energy sources alongside coal will make West Virginia healthier. By increasing our investment in clean energy like solar and wind, we’re reducing mercury and other dangerous emissions that end up in our air and water. This will help relieve asthma in our children and seniors, and decrease heart attacks and cancer across the state. It’s the smart thing to do for West Virginia families.

[ECONOMIC BOON – EFFICIENCY]Coal’s not going anywhere anytime soon. But that shouldn’t stop us from investing in West Virginia’s future, creating the infrastructure we need to keep our place as America’s energy hub. Coal jobs are dwindling, but renewable energy jobs are on the rise. These are good-paying middle class jobs that can’t be shipped overseas. And more clean energy keeps our workforce healthier and more productive, and reduces health care costs for the average West Virginia family.

[ECONOMIC BOON – JOBS]Coal’s not going anywhere anytime soon. But that shouldn’t stop us from investing in West Virginia’s future, creating the infrastructure we need to keep our place as America’s energy hub. Coal jobs are dwindling, but renewable energy jobs are on the rise. These are good-paying middle class jobs that can’t be shipped overseas. In fact, on average, there are already more jobs nationwide in renewables than oil OR coal, including hundreds of thousands of new jobs across the country.

24

Economic Diversification Messages (continued)

[EFFICIENCY – ALL OF THE ABOVE]By investing in energy innovation for West Virginia communities, we can not only create jobs and economic opportunity, we can streamline our energy use and keep more of our paychecks every month. A modern energy approach starts with making buildings more energy-efficient, cutting back on water consumption, and reducing our utility bills by using a more diverse mix of energy, including coal, solar, and wind.

[RESTORING WEST VIRGINIA’S LEADERSHIP]When it comes to energy, it is time for West Virginia to lead once again. We must restore our proud tradition of innovation and leadership, starting with pioneering energy solutions like wind and solar, right here in West Virginia. This will jumpstart our economy, creating good-paying American jobs that can’t be outsourced, and leaving a state that works for our children and grandchildren.

[EFFICIENCY – RENEWABLES ONLY]By transitioning from fossil fuels to renewable energy production in West Virginia communities, we can not only create jobs and economic opportunity, we can also streamline our energy use and keep more of our paychecks every month. A modern energy approach starts with making buildings more energy-efficient, cutting back on water consumption, and reducing our utility bills by using a more diverse mix of energy, including solar and wind.

[MTR DESTRUCTION]Investing in new energy sources alongside coal will make West Virginia a far safer and healthier place. The current focus on mountaintop removal just means more threats to our communities from rockslides, catastrophic floods, and pollution of our rivers and air–all costing taxpayers millions. By increasing our investment in clean energy like solar and wind, we can save millions of dollars, safeguard thousands of miles of land and rivers slated for destruction, and protect our health.

None of the messages attacking a diversified energy economy registers as much intensity (or reach) as our positives. Budgetary concerns and the fear of job losses create some doubts, though explicitly referencing the alleged “War on Coal” may actually weaken the argument.

25

Budget Tradeoff

Job Creator

Job Creator with War on Coal

Utility Costs and Energy Independence

32

26

22

23

20

17

15

1210: Serious Doubts 8-10: Some to Serious Doubts

Opposition Messages Mean

5.3

4.3

4.5

4.7

Now, I'm going to read you [some/some other types of] statements people have made about West Virginia’s economic future. Please tell me whether each statement, assuming it is true, raises doubts in your own mind about expanding West Virginia’s energy economy to include other energy sources in addition to coal, on a scale from 0 to 10, where 10 means it raises serious doubts, 0 means it raises no doubts, and you can be anywhere in between. If you are not sure how you feel about a particular item, please say so. Here’s the first one.

Each asked of ½ the sample. Darker colors indicate intensity.

26

Anti-Diversification Messages

[BUDGET TRADEOFF]West Virginia’s budget is underwater, with deep, across-the-board cuts already planned for most agencies, including cuts to vital programs like higher education, senior services, and domestic violence and sex abuse programs. Taking even more taxpayer dollars out of West Virginia’s General Fund and highway fund to create expensive new government programs with no track record is the wrong thing to do in this economy.

[JOB CREATOR]For more than 100 years, coal has provided the economic foundation for our state’s economy. Today, coal generates nearly 100,000 jobs and $6 billion each year in West Virginia alone. Raising taxes on our state’s biggest industry will just cost more jobs, hurt our middle class, and raise energy costs when hard-working West Virginia families are already struggling to put food on the table.

[JOB CREATOR WITH WAR ON COAL]For more than 100 years, coal has provided the economic foundation for our state’s economy. Today, coal generates nearly 100,000 jobs and $6 billion each year in West Virginia alone. And even though it’s cleaner than ever, Obama and the EPA have declared a war on coal. What they don’t understand is that raising taxes on our state’s biggest industry will cost more jobs, hurt our middle class, and raise energy costs when hard-working West Virginia families are already struggling to put food on the table.

[UTILITY COSTS AND ENERGY INDEPENDENCE]Coal provides us with some of the lowest electricity costs in the country. It boosts our energy independence, helping free America from its dependence on foreign oil. And even though coal is cleaner than ever, West Virginia coal miners are still under attack by new job-killing taxes and regulations. It’s time for America to become a leader in energy once again, and that’s not going to happen by undermining our cheapest, most reliable domestic energy source.

Celinda Lakeclake@lakeresearch.com

Daniel Gotoffdgotoff@lakeresearch.com

Alex Dunnadunn@lakeresearch.com

Washington, DC | Berkeley, CA | New York, NYLakeResearch.com202.776.9066