| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 2025 SESSION | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | ENROLLED | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | VIRGINIA ACTS OF ASSEMBLY -- CHAPTER | |
| 6 | 6 | ||
| 7 | - | ||
| 7 | + | An Act to amend and reenact 56-585.5 of the Code of Virginia, relating to electric utilities; energy storage requirements; Department of Energy and Department of Environmental Quality to develop model ordinances; work group; reports. | |
| 8 | 8 | ||
| 9 | - | ||
| 9 | + | [S 1394] | |
| 10 | 10 | ||
| 11 | - | (Proposed by the Governor | |
| 12 | - | ||
| 13 | - | on March 24, 2025) | |
| 14 | - | ||
| 15 | - | (Patron Prior to SubstituteSenator Bagby) | |
| 16 | - | ||
| 17 | - | A BILL to amend and reenact 56-585.1, 56-585.8, 56-594.3, and 56-594.4 of the Code of Virginia and to repeal 56-585.5 of the Code of Virginia, relating to electric utilities; renewable energy portfolio standard program; repeal. | |
| 11 | + | Approved | |
| 18 | 12 | ||
| 19 | 13 | Be it enacted by the General Assembly of Virginia: | |
| 20 | 14 | ||
| 21 | - | 1. That 56-585. | |
| 15 | + | 1. That 56-585.5 of the Code of Virginia is amended and reenacted as follows: | |
| 22 | 16 | ||
| 23 | - | 56-585. | |
| 17 | + | 56-585.5. Generation of electricity from renewable and zero-carbon sources. | |
| 24 | 18 | ||
| 25 | - | A. | |
| 19 | + | A. As used in this section: | |
| 26 | 20 | ||
| 27 | - | ||
| 21 | + | "Accelerated renewable energy buyer" means a commercial or industrial customer of a Phase I or Phase II Utility, irrespective of generation supplier, with an aggregate load over 25 megawatts in the prior calendar year, that enters into arrangements pursuant to subsection G, as certified by the Commission. | |
| 28 | 22 | ||
| 29 | - | ||
| 23 | + | "Aggregate load" means the combined electrical load associated with selected accounts of an accelerated renewable energy buyer with the same legal entity name as, or in the names of affiliated entities that control, are controlled by, or are under common control of, such legal entity or are the names of affiliated entities under a common parent. | |
| 30 | 24 | ||
| 31 | - | ||
| 25 | + | "Control" has the same meaning as provided in 56-585.1:11. | |
| 32 | 26 | ||
| 33 | - | ||
| 27 | + | "Falling water" means hydroelectric resources, including run-of-river generation from a combined pumped-storage and run-of-river facility. "Falling water" does not include electricity generated from pumped-storage facilities. | |
| 34 | 28 | ||
| 35 | - | ||
| 29 | + | "Low-income qualifying projects" means a project that provides a minimum of 50 percent of the respective electric output to low-income utility customers as that term is defined in 56-576. | |
| 36 | 30 | ||
| 37 | - | ||
| 31 | + | "Phase I Utility" has the same meaning as provided in subdivision A 1 of 56-585.1. | |
| 38 | 32 | ||
| 39 | - | " | |
| 33 | + | "Phase II Utility" has the same meaning as provided in subdivision A 1 of 56-585.1. | |
| 40 | 34 | ||
| 41 | - | " | |
| 35 | + | "Previously developed project site" means any property, including related buffer areas, if any, that has been previously disturbed or developed for non-single-family residential, nonagricultural, or nonsilvicultural use, regardless of whether such property currently is being used for any purpose. "Previously developed project site" includes a brownfield as defined in 10.1-1230 or any parcel that has been previously used (i) for a retail, commercial, or industrial purpose; (ii) as a parking lot; (iii) as the site of a parking lot canopy or structure; (iv) for mining, which is any lands affected by coal mining that took place before August 3, 1977, or any lands upon which extraction activities have been permitted by the Department of Energy under Title 45.2; (v) for quarrying; or (vi) as a landfill. | |
| 42 | 36 | ||
| 43 | - | " | |
| 37 | + | "Total electric energy" means total electric energy sold to retail customers in the Commonwealth service territory of a Phase I or Phase II Utility, other than accelerated renewable energy buyers, by the incumbent electric utility or other retail supplier of electric energy in the previous calendar year, excluding an amount equivalent to the annual percentages of the electric energy that was supplied to such customer from nuclear generating plants located within the Commonwealth in the previous calendar year, provided such nuclear units were operating by July 1, 2020, or from any zero-carbon electric generating facilities not otherwise RPS eligible sources and placed into service in the Commonwealth after July 1, 2030. | |
| 44 | 38 | ||
| 45 | - | ||
| 39 | + | "Zero-carbon electricity" means electricity generated by any generating unit that does not emit carbon dioxide as a by-product of combusting fuel to generate electricity. | |
| 46 | 40 | ||
| 47 | - | ||
| 41 | + | B. 1. By December 31, 2024, except for any coal-fired electric generating units (i) jointly owned with a cooperative utility or (ii) owned and operated by a Phase II Utility located in the coalfield region of the Commonwealth that co-fires with biomass, any Phase I and Phase II Utility shall retire all generating units principally fueled by oil with a rated capacity in excess of 500 megawatts and all coal-fired electric generating units operating in the Commonwealth. | |
| 48 | 42 | ||
| 49 | - | ||
| 43 | + | 2. By December 31, 2045, except for biomass-fired electric generating units that do not co-fire with coal, each Phase I and II Utility shall retire all other electric generating units located in the Commonwealth that emit carbon as a by-product of combusting fuel to generate electricity. | |
| 50 | 44 | ||
| 51 | - | ||
| 45 | + | 3. A Phase I or Phase II Utility may petition the Commission for relief from the requirements of this subsection on the basis that the requirement would threaten the reliability or security of electric service to customers. The Commission shall consider in-state and regional transmission entity resources and shall evaluate the reliability of each proposed retirement on a case-by-case basis in ruling upon any such petition. | |
| 52 | 46 | ||
| 53 | - | ||
| 47 | + | C. Each Phase I and Phase II Utility shall participate in a renewable energy portfolio standard program (RPS Program) that establishes annual goals for the sale of renewable energy to all retail customers in the utility's service territory, other than accelerated renewable energy buyers pursuant to subsection G, regardless of whether such customers purchase electric supply service from the utility or from suppliers other than the utility. To comply with the RPS Program, each Phase I and Phase II Utility shall procure and retire Renewable Energy Certificates (RECs) originating from renewable energy standard eligible sources (RPS eligible sources). For purposes of complying with the RPS Program from 2021 to 2024, a Phase I and Phase II Utility may use RECs from any renewable energy facility, as defined in 56-576, provided that such facilities are located in the Commonwealth or are physically located within the PJM Interconnection, LLC (PJM) region. However, at no time during this period or thereafter may any Phase I or Phase II Utility use RECs from (i) renewable thermal energy, (ii) renewable thermal energy equivalent, or (iii) biomass-fired facilities that are outside the Commonwealth. From compliance year 2025 and all years after, each Phase I and Phase II Utility may only use RECs from RPS eligible sources for compliance with the RPS Program. | |
| 54 | 48 | ||
| 55 | - | ||
| 49 | + | In order to qualify as RPS eligible sources, such sources must be (a) electric-generating resources that generate electric energy derived from solar or wind located in the Commonwealth or off the Commonwealth's Atlantic shoreline or in federal waters and interconnected directly into the Commonwealth or physically located within the PJM region; (b) falling water resources located in the Commonwealth or physically located within the PJM region that were in operation as of January 1, 2020, that are owned by a Phase I or Phase II Utility or for which a Phase I or Phase II Utility has entered into a contract prior to January 1, 2020, to purchase the energy, capacity, and renewable attributes of such falling water resources; (c) non-utility-owned resources from falling water that (1) are less than 65 megawatts, (2) began commercial operation after December 31, 1979, or (3) added incremental generation representing greater than 50 percent of the original nameplate capacity after December 31, 1979, provided that such resources are located in the Commonwealth or are physically located within the PJM region; (d) waste-to-energy or landfill gas-fired generating resources located in the Commonwealth and in operation as of January 1, 2020, provided that such resources do not use waste heat from fossil fuel combustion; (e) geothermal heating and cooling systems located in the Commonwealth; or (f) biomass-fired facilities in operation in the Commonwealth and in operation as of January 1, 2023, that (1) supply no more than 10 percent of their annual net electrical generation to the electric grid or no more than 15 percent of their annual total useful energy to any entity other than the manufacturing facility to which the generating source is interconnected and are fueled by forest-product manufacturing residuals, including pulping liquor, bark, paper recycling residuals, biowastes, or biomass, as described in subdivisions A 1, 2, and 4 of 10.1-1308.1, provided that biomass as described in subdivision A 1 of 10.1-1308.1 results from harvesting in accordance with best management practices for the sustainable harvesting of biomass developed and enforced by the State Forester pursuant to 10.1-1105, or (2) are owned by a Phase I or Phase II Utility, have less than 52 megawatts capacity, and are fueled by forest-product manufacturing residuals, biowastes, or biomass, as described in subdivisions A 1, 2, and 4 of 10.1-1308.1, provided that biomass as described in subdivision A 1 of 10.1-1308.1 results from harvesting in accordance with best management practices for the sustainable harvesting of biomass developed and enforced by the State Forester pursuant to 10.1-1105. Regardless of any future maintenance, expansion, or refurbishment activities, the total amount of RECs that may be sold by any RPS eligible source using biomass in any year shall be no more than the number of megawatt hours of electricity produced by that facility in 2022; however, in no year may any RPS eligible source using biomass sell RECs in excess of the actual megawatt-hours of electricity generated by such facility that year. In order to comply with the RPS Program, each Phase I and Phase II Utility may use and retire the environmental attributes associated with any existing owned or contracted solar, wind, falling water, or biomass electric generating resources in operation, or proposed for operation, in the Commonwealth or solar, wind, or falling water resources physically located within the PJM region, with such resource qualifying as a Commonwealth-located resource for purposes of this subsection, as of January 1, 2020, provided that such renewable attributes are verified as RECs consistent with the PJM-EIS Generation Attribute Tracking System. | |
| 56 | 50 | ||
| 57 | - | As of July 1, 2023, a Phase II Utility shall select a subset of rate adjustment clauses previously implemented pursuant to subdivision 5 or 6 having a combined annual revenue requirement, as of July 1, 2023, of at least $350 million and combine such rate adjustment clauses with the utility's costs, revenues, and investments for generation and distribution services. After such rate adjustment clauses are combined as specified in this paragraph, such rate adjustment clauses shall be considered part of the utility's costs, revenues, and investments for the purposes of future biennial review proceedings, and the combination of such rate adjustment clauses shall be specifically subject to audit by the Commission in the utility's 2023 biennial review filing. Notwithstanding the provisions of subsection C of 56-581, such combination shall not serve as the basis for an increase in a Phase II Utility's rates for generation and distribution services in its 2023 biennial proceeding. | |
| 58 | - | ||
| 59 | - | 4. The following costs incurred by the utility shall be deemed reasonable and prudent: (i) costs for transmission services provided to the utility by the regional transmission entity of which the utility is a member, as determined under applicable rates, terms and conditions approved by the Federal Energy Regulatory Commission; (ii) costs charged to the utility that are associated with demand response programs approved by the Federal Energy Regulatory Commission and administered by the regional transmission entity of which the utility is a member; and (iii) costs incurred by the utility to construct, operate, and maintain transmission lines and substations installed in order to provide service to a business park. Upon petition of a utility at any time after the expiration or termination of capped rates, but not more than once in any 12-month period, the Commission shall approve a rate adjustment clause under which such costs, including, without limitation, costs for transmission service; charges for new and existing transmission facilities, including costs incurred by the utility to construct, operate, and maintain transmission lines and substations installed in order to provide service to a business park; administrative charges; and ancillary service charges designed to recover transmission costs, shall be recovered on a timely and current basis from customers. Retail rates to recover these costs shall be designed using the appropriate billing determinants in the retail rate schedules. | |
| 60 | - | ||
| 61 | - | 5. A utility may at any time, after the expiration or termination of capped rates, but not more than once in any 12-month period, petition the Commission for approval of one or more rate adjustment clauses for the timely and current recovery from customers of the following costs: | |
| 62 | - | ||
| 63 | - | a. Incremental costs described in clause (vi) of subsection B of 56-582 incurred between July 1, 2004, and the expiration or termination of capped rates, if such utility is, as of July 1, 2007, deferring such costs consistent with an order of the Commission entered under clause (vi) of subsection B of 56-582. The Commission shall approve such a petition allowing the recovery of such costs that comply with the requirements of clause (vi) of subsection B of 56-582; | |
| 64 | - | ||
| 65 | - | b. Projected and actual costs for the utility to design and operate fair and effective peak-shaving programs or pilot programs. The Commission shall approve such a petition if it finds that the program is in the public interest, provided that the Commission shall allow the recovery of such costs as it finds are reasonable; | |
| 66 | - | ||
| 67 | - | c. Projected and actual costs for the utility to design, implement, and operate energy efficiency programs or pilot programs. Any such petition shall include a proposed budget for the design, implementation, and operation of the energy efficiency program, including anticipated savings from and spending on each program, and the Commission shall grant a final order on such petitions within eight months of initial filing. The Commission shall only approve such a petition if it finds that the program is in the public interest. If the Commission determines that an energy efficiency program or portfolio of programs is not in the public interest, its final order shall include all work product and analysis conducted by the Commission's staff in relation to that program that has bearing upon the Commission's determination. Such order shall adhere to existing protocols for extraordinarily sensitive information. | |
| 68 | - | ||
| 69 | - | Energy efficiency pilot programs are in the public interest provided that the pilot program is (i) of limited scope, cost, and duration and (ii) intended to determine whether a new or substantially revised program would be cost-effective. | |
| 70 | - | ||
| 71 | - | Prior to January 1, 2022, the Commission shall award a margin for recovery on operating expenses for energy efficiency programs and pilot programs, which margin shall be equal to the general rate of return on common equity determined as described in subdivision 2. Beginning January 1, 2022, and thereafter, if the Commission determines that the utility meets in any year the annual energy efficiency standards set forth in 56-596.2, in the following year, the Commission shall award a margin on energy efficiency program operating expenses in that year, to be recovered through a rate adjustment clause, which margin shall be equal to the general rate of return on common equity determined as described in subdivision 2. If the Commission does not approve energy efficiency programs that, in the aggregate, can achieve the annual energy efficiency standards, the Commission shall award a margin on energy efficiency operating expenses in that year for any programs the Commission has approved, to be recovered through a rate adjustment clause under this subdivision, which margin shall equal the general rate of return on common equity determined as described in subdivision 2. Any margin awarded pursuant to this subdivision shall be applied as part of the utility's next rate adjustment clause true-up proceeding. The Commission shall also award an additional 20 basis points for each additional incremental 0.1 percent in annual savings in any year achieved by the utility's energy efficiency programs approved by the Commission pursuant to this subdivision, beyond the annual requirements set forth in 56-596.2, provided that the total performance incentive awarded in any year shall not exceed 10 percent of that utility's total energy efficiency program spending in that same year. | |
| 72 | - | ||
| 73 | - | The Commission shall annually monitor and report to the General Assembly the performance of all programs approved pursuant to this subdivision, including each utility's compliance with the total annual savings required by 56-596.2, as well as the annual and lifecycle net and gross energy and capacity savings, related emissions reductions, and other quantifiable benefits of each program; total customer bill savings that the programs produce; utility spending on each program, including any associated administrative costs; and each utility's avoided costs and cost-effectiveness results. | |
| 74 | - | ||
| 75 | - | Notwithstanding any other provision of law, unless the Commission finds in its discretion and after consideration of all in-state and regional transmission entity resources that there is a threat to the reliability or security of electric service to the utility's customers, the Commission shall not approve construction of any new utility-owned generating facilities that emit carbon dioxide as a by-product of combusting fuel to generate electricity unless the utility has already met the energy savings goals identified in 56-596.2 and the Commission finds that supply-side resources are more cost-effective than demand-side or energy storage resources. | |
| 76 | - | ||
| 77 | - | As used in this subdivision, "large general service customer" means a customer that has a verifiable history of having used more than one megawatt of demand from a single site. | |
| 78 | - | ||
| 79 | - | Large general service customers shall be exempt from requirements that they participate in energy efficiency programs if the Commission finds that the large general service customer has, at the customer's own expense, implemented energy efficiency programs that have produced or will produce measured and verified results consistent with industry standards and other regulatory criteria stated in this section. The Commission shall, no later than June 30, 2021, adopt rules or regulations (a) establishing the process for large general service customers to apply for such an exemption, (b) establishing the administrative procedures by which eligible customers will notify the utility, and (c) defining the standard criteria that shall be satisfied by an applicant in order to notify the utility, including means of evaluation measurement and verification and confidentiality requirements. At a minimum, such rules and regulations shall require that each exempted large general service customer certify to the utility and Commission that its implemented energy efficiency programs have delivered measured and verified savings within the prior five years. In adopting such rules or regulations, the Commission shall also specify the timing as to when a utility shall accept and act on such notice, taking into consideration the utility's integrated resource planning process, as well as its administration of energy efficiency programs that are approved for cost recovery by the Commission. Savings from large general service customers shall be accounted for in utility reporting in the standards in 56-596.2. | |
| 80 | - | ||
| 81 | - | The notice of nonparticipation by a large general service customer shall be for the duration of the service life of the customer's energy efficiency measures. The Commission may on its own motion initiate steps necessary to verify such nonparticipant's achievement of energy efficiency if the Commission has a body of evidence that the nonparticipant has knowingly misrepresented its energy efficiency achievement. | |
| 82 | - | ||
| 83 | - | A utility shall not charge such large general service customer for the costs of installing energy efficiency equipment beyond what is required to provide electric service and meter such service on the customer's premises if the customer provides, at the customer's expense, equivalent energy efficiency equipment. In all relevant proceedings pursuant to this section, the Commission shall take into consideration the goals of economic development, energy efficiency and environmental protection in the Commonwealth; | |
| 84 | - | ||
| 85 | - | d. Projected and actual costs of compliance with renewable energy portfolio standard requirements pursuant to 56-585.5 that are not recoverable under subdivision 6. The Commission shall approve such a petition allowing the recovery of such costs incurred as required by 56-585.5, provided that the Commission does not otherwise find such costs were unreasonably or imprudently incurred; | |
| 86 | - | ||
| 87 | - | e. Projected and actual costs of projects that the Commission finds to be necessary to mitigate impacts to marine life caused by construction of offshore wind generating facilities, as described in 56-585.1:11, or to comply with state or federal environmental laws or regulations applicable to generation facilities used to serve the utility's native load obligations, including the costs of allowances purchased through a market-based trading program for carbon dioxide emissions. The Commission shall approve such a petition if it finds that such costs are necessary to comply with such environmental laws or regulations; | |
| 88 | - | ||
| 89 | - | f. e. Projected and actual costs, not currently in rates, for the utility to design, implement, and operate programs approved by the Commission that accelerate the vegetation management of distribution rights-of-way. No costs shall be allocated to or recovered from customers that are served within the large general service rate classes for a Phase II Utility or that are served at subtransmission or transmission voltage, or take delivery at a substation served from subtransmission or transmission voltage, for a Phase I Utility; and | |
| 90 | - | ||
| 91 | - | g. f. Projected and actual costs, not currently in rates, for the utility to design, implement, and operate programs approved by the Commission to provide incentives to (i) low-income, elderly, and disabled individuals or (ii) organizations providing residential services to low-income, elderly, and disabled individuals for the installation of, or access to, equipment to generate electric energy derived from sunlight, provided the low-income, elderly, and disabled individuals, or organizations providing residential services to low-income, elderly, and disabled individuals, first participate in incentive programs for the installation of measures that reduce heating or cooling costs. | |
| 92 | - | ||
| 93 | - | Any rate adjustment clause approved under subdivision 5 c by the Commission shall remain in effect until the utility exhausts the approved budget for the energy efficiency program. The Commission shall have the authority to determine the duration or amortization period for any other rate adjustment clause approved under this subdivision. | |
| 94 | - | ||
| 95 | - | 6. To ensure the generation and delivery of a reliable and adequate supply of electricity, to meet the utility's projected native load obligations and to promote economic development, a utility may at any time, after the expiration or termination of capped rates, petition the Commission for approval of a rate adjustment clause for recovery on a timely and current basis from customers of the costs of (i) a coal-fueled generation facility that utilizes Virginia coal and is located in the coalfield region of the Commonwealth as described in 15.2-6002, regardless of whether such facility is located within or without the utility's service territory, (ii) one or more other generation facilities, (iii) one or more major unit modifications of generation facilities, including the costs of any system or equipment upgrade, system or equipment replacement, or other cost reasonably appropriate to extend the combined operating license for or the operating life of one or more generation facilities utilizing nuclear power, (iv) one or more new underground facilities to replace one or more existing overhead distribution facilities of 69 kilovolts or less located within the Commonwealth, (v) one or more pumped hydroelectricity generation and storage facilities that utilize on-site or off-site renewable energy resources as all or a portion of their power source and such facilities and associated resources are located in the coalfield region of the Commonwealth as described in 15.2-6002, regardless of whether such facility is located within or without the utility's service territory, or (vi) one or more electric distribution grid transformation projects; however, subject to the provisions of the following sentence, the utility shall not file a petition under clause (iv) more often than annually and, in such petition, shall not seek any annual incremental increase in the level of investments associated with such a petition that exceeds five percent of such utility's distribution rate base, as such rate base was determined for the most recently ended 12-month test period in the utility's latest review proceeding conducted pursuant to subdivision 3 and concluded by final order of the Commission prior to the date of filing of such petition under clause (iv). In all proceedings regarding petitions filed under clause (iv) or (vi), the level of investments approved for recovery in such proceedings shall be in addition to, and not in lieu of, levels of investments previously approved for recovery in prior proceedings under clause (iv) or (vi), as applicable. As of December 1, 2028, any costs recovered by a utility pursuant to clause (iv) shall be limited to any remaining costs associated with conversions of overhead distribution facilities to underground facilities that have been previously approved or are pending approval by the Commission through a petition by the utility under this subdivision. Such a petition concerning facilities described in clause (ii) that utilize nuclear power, facilities described in clause (ii) that are coal-fueled and will be built by a Phase I Utility, or facilities described in clause (i) may also be filed before the expiration or termination of capped rates. A utility that constructs or makes modifications to any such facility, or purchases any facility consisting of at least one megawatt of generating capacity using energy derived from sunlight and located in the Commonwealth and that utilizes goods or services sourced, in whole or in part, from one or more Virginia businesses, shall have the right to recover the costs of the facility, as accrued against income, through its rates, including projected construction work in progress, and any associated allowance for funds used during construction, planning, development and construction or acquisition costs, life-cycle costs, costs related to assessing the feasibility of potential sites for new underground facilities, and costs of infrastructure associated therewith, plus, as an incentive to undertake such projects, an enhanced rate of return on common equity calculated as specified below; however, in determining the amounts recoverable under a rate adjustment clause for new underground facilities, the Commission shall not consider, or increase or reduce such amounts recoverable because of (a) the operation and maintenance costs attributable to either the overhead distribution facilities being replaced or the new underground facilities or (b) any other costs attributable to the overhead distribution facilities being replaced. Notwithstanding the preceding sentence, the costs described in clauses (a) and (b) thereof shall remain eligible for recovery from customers through the utility's base rates for distribution service. A utility filing a petition for approval to construct or purchase a facility consisting of at least one megawatt of generating capacity using energy derived from sunlight and located in the Commonwealth and that utilizes goods or services sourced, in whole or in part, from one or more Virginia businesses may propose a rate adjustment clause based on a market index in lieu of a cost of service model for such facility. A utility seeking approval to construct or purchase a generating facility that emits carbon dioxide shall demonstrate that it has already met the energy savings goals identified in 56-596.2 and that the identified need cannot be met more affordably through the deployment or utilization of demand-side resources or energy storage resources and that it has considered and weighed alternative options, including third-party market alternatives, in its selection process. | |
| 96 | - | ||
| 97 | - | The costs of the facility, other than return on projected construction work in progress and allowance for funds used during construction, shall not be recovered prior to the date a facility constructed by the utility and described in clause (i), (ii), (iii), or (v) begins commercial operation, the date the utility becomes the owner of a purchased generation facility consisting of at least one megawatt of generating capacity using energy derived from sunlight and located in the Commonwealth and that utilizes goods or services sourced, in whole or in part, from one or more Virginia businesses, or the date new underground facilities are classified by the utility as plant in service. In any application to construct a new generating facility, the utility shall include, and the Commission shall consider, the social cost of carbon, as determined by the Commission, as a benefit or cost, whichever is appropriate. The Commission shall ensure that the development of new, or expansion of existing, energy resources or facilities does not have a disproportionate adverse impact on historically economically disadvantaged communities. The Commission may adopt any rules it deems necessary to determine the social cost of carbon and shall use the best available science and technology, including the Technical Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866, published by the Interagency Working Group on Social Cost of Greenhouse Gases from the United States Government in August 2016, as guidance. The Commission shall include a system to adjust the costs established in this section with inflation. | |
| 98 | - | ||
| 99 | - | Such enhanced rate of return on common equity shall be applied to allowance for funds used during construction and to construction work in progress during the construction phase of the facility and shall thereafter be applied to the entire facility during the first portion of the service life of the facility. The first portion of the service life shall be as specified in the table below; however, the Commission shall determine the duration of the first portion of the service life of any facility, within the range specified in the table below, which determination shall be consistent with the public interest and shall reflect the Commission's determinations regarding how critical the facility may be in meeting the energy needs of the citizens of the Commonwealth and the risks involved in the development of the facility. After the first portion of the service life of the facility is concluded, the utility's general rate of return shall be applied to such facility for the remainder of its service life. As used herein, the service life of the facility shall be deemed to begin on the date a facility constructed by the utility and described in clause (i), (ii), (iii), or (v) begins commercial operation, the date the utility becomes the owner of a purchased generation facility consisting of at least one megawatt of generating capacity using energy derived from sunlight and located in the Commonwealth and that utilizes goods or services sourced, in whole or in part, from one or more Virginia businesses, or the date new underground facilities or new electric distribution grid transformation projects are classified by the utility as plant in service, and such service life shall be deemed equal in years to the life of that facility as used to calculate the utility's depreciation expense. Such enhanced rate of return on common equity shall be calculated by adding the basis points specified in the table below to the utility's general rate of return, and such enhanced rate of return shall apply only to the facility that is the subject of such rate adjustment clause. Allowance for funds used during construction shall be calculated for any such facility utilizing the utility's actual capital structure and overall cost of capital, including an enhanced rate of return on common equity as determined pursuant to this subdivision, until such construction work in progress is included in rates. The construction of any facility described in clause (i) or (v) is in the public interest, and in determining whether to approve such facility, the Commission shall liberally construe the provisions of this title. The construction or purchase by a utility of one or more generation facilities with at least one megawatt of generating capacity, and with an aggregate rated capacity that does not exceed 16,100 megawatts, including rooftop solar installations with a capacity of not less than 50 kilowatts, and with an aggregate capacity of 100 megawatts, that use energy derived from sunlight or from onshore wind and are located in the Commonwealth or off the Commonwealth's Atlantic shoreline, regardless of whether any of such facilities are located within or without the utility's service territory, is in the public interest, and in determining whether to approve such facility, the Commission shall liberally construe the provisions of this title. A utility may enter into short-term or long-term power purchase contracts for the power derived from sunlight generated by such generation facility prior to purchasing the generation facility. The replacement of any subset of a utility's existing overhead distribution tap lines that have, in the aggregate, an average of nine or more total unplanned outage events-per-mile over a preceding 10-year period with new underground facilities in order to improve electric service reliability is in the public interest. In determining whether to approve petitions for rate adjustment clauses for such new underground facilities that meet this criteria, and in determining the level of costs to be recovered thereunder, the Commission shall liberally construe the provisions of this title. | |
| 100 | - | ||
| 101 | - | The conversion of any such facilities on or after September 1, 2016, is deemed to provide local and system-wide benefits and to be cost beneficial, and the costs associated with such new underground facilities are deemed to be reasonably and prudently incurred and, notwithstanding the provisions of subsection C or D, shall be approved for recovery by the Commission pursuant to this subdivision, provided that the total costs associated with the replacement of any subset of existing overhead distribution tap lines proposed by the utility with new underground facilities, exclusive of financing costs, shall not exceed an average cost per customer of $20,000, with such customers, including those served directly by or downline of the tap lines proposed for conversion, and, further, such total costs shall not exceed an average cost per mile of tap lines converted, exclusive of financing costs, of $750,000. A utility shall, without regard for whether it has petitioned for any rate adjustment clause pursuant to clause (vi), petition the Commission, not more than once annually, for approval of a plan for electric distribution grid transformation projects. Any plan for electric distribution grid transformation projects shall include both measures to facilitate integration of distributed energy resources and measures to enhance physical electric distribution grid reliability and security. In ruling upon such a petition, the Commission shall consider whether the utility's plan for such projects, and the projected costs associated therewith, are reasonable and prudent. Such petition shall be considered on a stand-alone basis without regard to the other costs, revenues, investments, or earnings of the utility; without regard to whether the costs associated with such projects will be recovered through a rate adjustment clause under this subdivision or through the utility's rates for generation and distribution services; and without regard to whether such costs will be the subject of a customer credit offset, as applicable, pursuant to subdivision 8 d. The Commission's final order regarding any such petition for approval of an electric distribution grid transformation plan shall be entered by the Commission not more than six months after the date of filing such petition. The Commission shall likewise enter its final order with respect to any petition by a utility for a certificate to construct and operate a generating facility or facilities utilizing energy derived from sunlight, pursuant to subsection D of 56-580, within six months after the date of filing such petition. The basis points to be added to the utility's general rate of return to calculate the enhanced rate of return on common equity, and the first portion of that facility's service life to which such enhanced rate of return shall be applied, shall vary by type of facility, as specified in the following table: | |
| 51 | + | 1. The RPS Program requirements shall be a percentage of the total electric energy sold in the previous calendar year and shall be implemented in accordance with the following schedule: | |
| 102 | 52 | ||
| 103 | 53 | ||
| 104 | 54 | ||
| 105 | - | Type of Generation Facility Basis Points First Portion of Service Life | |
| 106 | - | Nuclear-powered 200 Between 12 and 25 years | |
| 107 | - | Carbon capture compatible, clean-coal powered 200 Between 10 and 20 years | |
| 108 | - | Renewable powered, other than landfill gas powered 200 Between 5 and 15 years | |
| 109 | - | Coalbed methane gas powered 150 Between 5 and 15 years | |
| 110 | - | Landfill gas powered 200 Between 5 and 15 years | |
| 111 | - | Conventional coal or combined-cycle combustion turbine 100 Between 10 and 20 years | |
| 55 | + | Phase I Utilities Phase II Utilities | |
| 112 | 56 | ||
| 113 | - | ||
| 57 | + | Phase I Utilities | |
| 114 | 58 | ||
| 115 | - | ||
| 59 | + | Phase II Utilities | |
| 116 | 60 | ||
| 117 | - | First Portion of Service Life | |
| 118 | 61 | ||
| 119 | - | Nuclear-powered | |
| 120 | 62 | ||
| 121 | - | 200 | |
| 122 | 63 | ||
| 123 | - | Between 12 and 25 years | |
| 124 | 64 | ||
| 125 | - | Carbon capture compatible, clean-coal powered | |
| 65 | + | Year RPS Program Requirement Year RPS Program Requirement | |
| 66 | + | 2021 6% 2021 14% | |
| 67 | + | 2022 7% 2022 17% | |
| 68 | + | 2023 8% 2023 20% | |
| 69 | + | 2024 10% 2024 23% | |
| 70 | + | 2025 14% 2025 26% | |
| 71 | + | 2026 17% 2026 29% | |
| 72 | + | 2027 20% 2027 32% | |
| 73 | + | 2028 24% 2028 35% | |
| 74 | + | 2029 27% 2029 38% | |
| 75 | + | 2030 30% 2030 41% | |
| 76 | + | 2031 33% 2031 45% | |
| 77 | + | 2032 36% 2032 49% | |
| 78 | + | 2033 39% 2033 52% | |
| 79 | + | 2034 42% 2034 55% | |
| 80 | + | 2035 45% 2035 59% | |
| 81 | + | 2036 53% 2036 63% | |
| 82 | + | 2037 53% 2037 67% | |
| 83 | + | 2038 57% 2038 71% | |
| 84 | + | 2039 61% 2039 75% | |
| 85 | + | 2040 65% 2040 79% | |
| 86 | + | 2041 68% 2041 83% | |
| 87 | + | 2042 71% 2042 87% | |
| 88 | + | 2043 74% 2043 91% | |
| 89 | + | 2044 77% 2044 95% | |
| 90 | + | 2045 80% 2045 and thereafter 100% | |
| 91 | + | 2046 84% | |
| 92 | + | 2047 88% | |
| 93 | + | 2048 92% | |
| 94 | + | 2049 96% | |
| 95 | + | 2050 and thereafter 100% | |
| 126 | 96 | ||
| 127 | - | ||
| 97 | + | Year | |
| 128 | 98 | ||
| 129 | - | ||
| 99 | + | RPS Program Requirement | |
| 130 | 100 | ||
| 131 | - | ||
| 101 | + | Year | |
| 132 | 102 | ||
| 133 | - | ||
| 103 | + | RPS Program Requirement | |
| 134 | 104 | ||
| 135 | - | ||
| 105 | + | 2021 | |
| 136 | 106 | ||
| 137 | - | ||
| 107 | + | 6% | |
| 138 | 108 | ||
| 139 | - | ||
| 109 | + | 2021 | |
| 140 | 110 | ||
| 141 | - | ||
| 111 | + | 14% | |
| 142 | 112 | ||
| 143 | - | ||
| 113 | + | 2022 | |
| 144 | 114 | ||
| 145 | - | ||
| 115 | + | 7% | |
| 146 | 116 | ||
| 147 | - | ||
| 117 | + | 2022 | |
| 148 | 118 | ||
| 149 | - | ||
| 119 | + | 17% | |
| 150 | 120 | ||
| 151 | - | ||
| 121 | + | 2023 | |
| 152 | 122 | ||
| 153 | - | ||
| 123 | + | 8% | |
| 154 | 124 | ||
| 155 | - | ||
| 125 | + | 2023 | |
| 156 | 126 | ||
| 157 | - | ||
| 127 | + | 20% | |
| 158 | 128 | ||
| 159 | - | ||
| 129 | + | 2024 | |
| 160 | 130 | ||
| 161 | - | ||
| 131 | + | 10% | |
| 162 | 132 | ||
| 163 | - | ||
| 133 | + | 2024 | |
| 164 | 134 | ||
| 165 | - | ||
| 135 | + | 23% | |
| 166 | 136 | ||
| 167 | - | ||
| 137 | + | 2025 | |
| 168 | 138 | ||
| 169 | - | ||
| 139 | + | 14% | |
| 170 | 140 | ||
| 171 | - | ||
| 141 | + | 2025 | |
| 172 | 142 | ||
| 173 | - | ||
| 143 | + | 26% | |
| 174 | 144 | ||
| 175 | - | ||
| 145 | + | 2026 | |
| 176 | 146 | ||
| 177 | - | ||
| 147 | + | 17% | |
| 178 | 148 | ||
| 179 | - | ||
| 149 | + | 2026 | |
| 180 | 150 | ||
| 181 | - | ||
| 151 | + | 29% | |
| 182 | 152 | ||
| 183 | - | ||
| 153 | + | 2027 | |
| 184 | 154 | ||
| 185 | - | ||
| 155 | + | 20% | |
| 186 | 156 | ||
| 187 | - | ||
| 157 | + | 2027 | |
| 188 | 158 | ||
| 189 | - | ||
| 159 | + | 32% | |
| 190 | 160 | ||
| 191 | - | ||
| 161 | + | 2028 | |
| 192 | 162 | ||
| 193 | - | ||
| 163 | + | 24% | |
| 194 | 164 | ||
| 195 | - | ||
| 165 | + | 2028 | |
| 196 | 166 | ||
| 197 | - | ||
| 167 | + | 35% | |
| 198 | 168 | ||
| 199 | - | ||
| 169 | + | 2029 | |
| 200 | 170 | ||
| 201 | - | ||
| 171 | + | 27% | |
| 202 | 172 | ||
| 203 | - | ||
| 173 | + | 2029 | |
| 204 | 174 | ||
| 205 | - | ||
| 175 | + | 38% | |
| 206 | 176 | ||
| 207 | - | ||
| 177 | + | 2030 | |
| 208 | 178 | ||
| 209 | - | ||
| 179 | + | 30% | |
| 210 | 180 | ||
| 211 | - | ||
| 181 | + | 2030 | |
| 212 | 182 | ||
| 213 | - | ||
| 183 | + | 41% | |
| 214 | 184 | ||
| 215 | - | ||
| 185 | + | 2031 | |
| 216 | 186 | ||
| 217 | - | ||
| 187 | + | 33% | |
| 218 | 188 | ||
| 219 | - | ||
| 189 | + | 2031 | |
| 220 | 190 | ||
| 221 | - | ||
| 191 | + | 45% | |
| 222 | 192 | ||
| 223 | - | ||
| 193 | + | 2032 | |
| 224 | 194 | ||
| 225 | - | ||
| 195 | + | 36% | |
| 226 | 196 | ||
| 227 | - | ||
| 197 | + | 2032 | |
| 228 | 198 | ||
| 229 | - | ||
| 199 | + | 49% | |
| 230 | 200 | ||
| 231 | - | ||
| 201 | + | 2033 | |
| 232 | 202 | ||
| 233 | - | ||
| 203 | + | 39% | |
| 234 | 204 | ||
| 235 | - | ||
| 205 | + | 2033 | |
| 236 | 206 | ||
| 237 | - | ||
| 207 | + | 52% | |
| 238 | 208 | ||
| 239 | - | ||
| 209 | + | 2034 | |
| 240 | 210 | ||
| 241 | - | ||
| 211 | + | 42% | |
| 242 | 212 | ||
| 243 | - | ||
| 213 | + | 2034 | |
| 244 | 214 | ||
| 245 | - | ||
| 215 | + | 55% | |
| 246 | 216 | ||
| 247 | - | ||
| 217 | + | 2035 | |
| 248 | 218 | ||
| 249 | - | ||
| 219 | + | 45% | |
| 250 | 220 | ||
| 251 | - | ||
| 221 | + | 2035 | |
| 252 | 222 | ||
| 253 | - | ||
| 223 | + | 59% | |
| 254 | 224 | ||
| 255 | - | ||
| 225 | + | 2036 | |
| 256 | 226 | ||
| 257 | - | ||
| 227 | + | 53% | |
| 258 | 228 | ||
| 259 | - | ||
| 229 | + | 2036 | |
| 260 | 230 | ||
| 261 | - | ||
| 231 | + | 63% | |
| 262 | 232 | ||
| 263 | - | ||
| 233 | + | 2037 | |
| 264 | 234 | ||
| 265 | - | ||
| 235 | + | 53% | |
| 266 | 236 | ||
| 267 | - | ||
| 237 | + | 2037 | |
| 268 | 238 | ||
| 269 | - | ||
| 239 | + | 67% | |
| 270 | 240 | ||
| 271 | - | ||
| 241 | + | 2038 | |
| 272 | 242 | ||
| 273 | - | ||
| 243 | + | 57% | |
| 274 | 244 | ||
| 275 | - | ||
| 245 | + | 2038 | |
| 276 | 246 | ||
| 277 | - | ||
| 247 | + | 71% | |
| 278 | 248 | ||
| 279 | - | ||
| 249 | + | 2039 | |
| 280 | 250 | ||
| 281 | - | ||
| 251 | + | 61% | |
| 282 | 252 | ||
| 283 | - | ||
| 253 | + | 2039 | |
| 284 | 254 | ||
| 285 | - | ||
| 255 | + | 75% | |
| 286 | 256 | ||
| 287 | - | ||
| 257 | + | 2040 | |
| 288 | 258 | ||
| 289 | - | ||
| 259 | + | 65% | |
| 290 | 260 | ||
| 291 | - | ||
| 261 | + | 2040 | |
| 292 | 262 | ||
| 293 | - | ||
| 263 | + | 79% | |
| 294 | 264 | ||
| 295 | - | ||
| 265 | + | 2041 | |
| 296 | 266 | ||
| 297 | - | ||
| 267 | + | 68% | |
| 298 | 268 | ||
| 299 | - | ||
| 269 | + | 2041 | |
| 300 | 270 | ||
| 301 | - | ||
| 271 | + | 83% | |
| 302 | 272 | ||
| 303 | - | ||
| 273 | + | 2042 | |
| 304 | 274 | ||
| 305 | - | ||
| 275 | + | 71% | |
| 306 | 276 | ||
| 307 | - | ||
| 277 | + | 2042 | |
| 308 | 278 | ||
| 309 | - | ||
| 279 | + | 87% | |
| 310 | 280 | ||
| 311 | - | ||
| 281 | + | 2043 | |
| 312 | 282 | ||
| 313 | - | ||
| 283 | + | 74% | |
| 314 | 284 | ||
| 315 | - | ||
| 285 | + | 2043 | |
| 316 | 286 | ||
| 317 | - | ||
| 287 | + | 91% | |
| 318 | 288 | ||
| 319 | - | ||
| 289 | + | 2044 | |
| 320 | 290 | ||
| 321 | - | ||
| 291 | + | 77% | |
| 322 | 292 | ||
| 323 | - | ||
| 293 | + | 2044 | |
| 324 | 294 | ||
| 325 | - | ||
| 295 | + | 95% | |
| 326 | 296 | ||
| 327 | - | ||
| 297 | + | 2045 | |
| 328 | 298 | ||
| 329 | - | ||
| 299 | + | 80% | |
| 330 | 300 | ||
| 331 | - | ||
| 301 | + | 2045 and thereafter | |
| 332 | 302 | ||
| 333 | - | ||
| 303 | + | 100% | |
| 334 | 304 | ||
| 335 | - | ||
| 305 | + | 2046 | |
| 336 | 306 | ||
| 337 | - | ||
| 307 | + | 84% | |
| 338 | 308 | ||
| 339 | - | 3. Create a stakeholder working group including low-income community representatives and community solar providers to facilitate low-income customer and low-income service organization participation in the program; | |
| 340 | 309 | ||
| 341 | - | 4. Encourage public-private partnerships to further the Commonwealth's clean energy and equity goals, such as state agency and affordable housing provider participation as subscribers of a shared solar program; | |
| 342 | 310 | ||
| 343 | - | 5. Not remove a customer from its otherwise applicable customer class in order to participate in a shared solar facility; | |
| 344 | 311 | ||
| 345 | - | 6. Reasonably allow for the transferability and portability of subscriptions, including allowing a subscriber to retain a subscription to a shared solar facility if the subscriber moves within the same utility's service territory; | |
| 346 | 312 | ||
| 347 | - | ||
| 313 | + | 2047 | |
| 348 | 314 | ||
| 349 | - | ||
| 315 | + | 88% | |
| 350 | 316 | ||
| 351 | - | 9. Allow the utility the opportunity to recover reasonable costs of administering the program; | |
| 352 | 317 | ||
| 353 | - | 10. Ensure nondiscriminatory and efficient requirements and utility procedures for interconnecting projects; | |
| 354 | 318 | ||
| 355 | - | 11. Address the co-location of two or more shared solar facilities on a single parcel of land and provide guidelines for determining when two or more such facilities are co-located; | |
| 356 | 319 | ||
| 357 | - | 12. Include a program implementation schedule; | |
| 358 | 320 | ||
| 359 | - | ||
| 321 | + | 2048 | |
| 360 | 322 | ||
| 361 | - | ||
| 323 | + | 92% | |
| 362 | 324 | ||
| 363 | - | 15. Require a customer's affirmative consent by written or electronic signature before providing access to customer billing and usage data to a subscriber organization; | |
| 364 | 325 | ||
| 365 | - | 16. Establish customer engagement rules and minimum rules for education, contract reviews, and continued engagement; | |
| 366 | 326 | ||
| 367 | - | 17. Require net crediting functionality. Under net crediting, the utility shall include the shared solar subscription fee on the customer's utility bill and provide the customer with a net credit equivalent to the total bill credit value for that generation period minus the shared solar subscription fee as set by the subscriber organization. The net crediting fee shall not exceed one percent of the bill credit value. Net crediting shall be optional for subscriber organizations, and any shared solar subscription fees charged via the net crediting model shall be set to ensure that subscribers do not pay more in subscription fees than they receive in bill credits; and | |
| 368 | 327 | ||
| 369 | - | 18. Allow the utility to recover as the cost of purchased power pursuant to 56-249.6 any difference between the bill credit provided to the subscriber and the cost of energy injected into the grid by the subscriber organization. | |
| 370 | 328 | ||
| 371 | - | ||
| 329 | + | 2049 | |
| 372 | 330 | ||
| 373 | - | ||
| 331 | + | 96% | |
| 374 | 332 | ||
| 375 | - | A. As used in this section: | |
| 376 | 333 | ||
| 377 | - | "Administrative cost" means the reasonable incremental cost to the investor-owned utility to process subscribers' bills for the program. | |
| 378 | 334 | ||
| 379 | - | "Applicable bill credit rate" means the dollar-per-kilowatt-hour rate used to calculate the subscriber's bill credit. | |
| 380 | 335 | ||
| 381 | - | "Bill credit" means the monetary value of the electricity, in kilowatt-hours, generated by the shared solar facility allocated to a subscriber to offset that subscriber's electricity bill. | |
| 382 | 336 | ||
| 383 | - | ||
| 337 | + | 2050 and thereafter | |
| 384 | 338 | ||
| 385 | - | ||
| 339 | + | 100% | |
| 386 | 340 | ||
| 387 | - | "Incremental cost" means any cost directly caused by the implementation of the shared solar program that would not have occurred absent the implementation of the shared solar program. | |
| 388 | 341 | ||
| 389 | - | "Minimum bill" means an amount determined by the Commission under subsection D that a subscriber is required to, at a minimum, pay on the subscriber's utility bill each month after accounting for any bill credits. | |
| 390 | 342 | ||
| 391 | - | "Net bill" means the resulting amount a customer must pay the utility after deducting the bill credit from the customer's monthly gross bill. | |
| 392 | 343 | ||
| 393 | - | "Phase I Utility" has the same meaning as provided in subdivision A 1 of 56-585.1. | |
| 394 | 344 | ||
| 395 | - | ||
| 345 | + | 2. A Phase II Utility shall meet one percent of the RPS Program requirements in any given compliance year with solar, wind, or anaerobic digestion resources of one megawatt or less located in the Commonwealth, with not more than 3,000 kilowatts at any single location or at contiguous locations owned by the same entity or affiliated entities and, to the extent that low-income qualifying projects are available, then no less than 25 percent of such one percent shall be composed of low-income qualifying projects. | |
| 396 | 346 | ||
| 397 | - | ||
| 347 | + | 3. Beginning with the 2025 compliance year and thereafter, at least 75 percent of all RECs used by a Phase II Utility in a compliance period shall come from RPS eligible resources located in the Commonwealth. | |
| 398 | 348 | ||
| 399 | - | ||
| 349 | + | 4. Any Phase I or Phase II Utility may apply renewable energy sales achieved or RECs acquired in excess of the sales requirement for that RPS Program to the sales requirements for RPS Program requirements in the year in which it was generated and the five calendar years after the renewable energy was generated or the RECs were created. To the extent that a Phase I or Phase II Utility procures RECs for RPS Program compliance from resources the utility does not own, the utility shall be entitled to recover the costs of such certificates at its election pursuant to 56-249.6 or subdivision A 5 d of 56-585.1. | |
| 400 | 350 | ||
| 401 | - | ||
| 351 | + | 5. Energy from a geothermal heating and cooling system is eligible for inclusion in meeting the requirements of the RPS Program. RECs from a geothermal heating and cooling system are created based on the amount of energy, converted from BTUs to kilowatt-hours, that is generated by a geothermal heating and cooling system for space heating and cooling or water heating. The Commission shall determine the form and manner in which such RECs are verified. | |
| 402 | 352 | ||
| 403 | - | ||
| 353 | + | D. Each Phase I or Phase II Utility shall petition the Commission for necessary approvals to procure zero-carbon electricity generating capacity as set forth in this subsection and energy storage resources as set forth in subsection E. To the extent that a Phase I or Phase II Utility constructs or acquires new zero-carbon generating facilities or energy storage resources, the utility shall petition the Commission for the recovery of the costs of such facilities, at the utility's election, either through its rates for generation and distribution services or through a rate adjustment clause pursuant to subdivision A 6 of 56-585.1. All costs not sought for recovery through a rate adjustment clause pursuant to subdivision A 6 of 56-585.1 associated with generating facilities provided by sunlight or onshore or offshore wind are also eligible to be applied by the utility as a customer credit reinvestment offset as provided in subdivision A 8 of 56-585.1. Costs associated with the purchase of energy, capacity, or environmental attributes from facilities owned by the persons other than the utility required by this subsection shall be recovered by the utility either through its rates for generation and distribution services or pursuant to 56-249.6. | |
| 404 | 354 | ||
| 405 | - | ||
| 355 | + | 1. Each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of 600 megawatts of generating capacity using energy derived from sunlight or onshore wind. | |
| 406 | 356 | ||
| 407 | - | ||
| 357 | + | a. By December 31, 2023, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility. | |
| 408 | 358 | ||
| 409 | - | ||
| 359 | + | b. By December 31, 2027, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility. | |
| 410 | 360 | ||
| 411 | - | ||
| 361 | + | c. By December 31, 2030, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility. | |
| 412 | 362 | ||
| 413 | - | ||
| 363 | + | d. Nothing in this subdivision 1 shall prohibit such Phase I Utility from constructing, acquiring, or entering into agreements to purchase the energy, capacity, and environmental attributes of more than 600 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, provided the utility receives approval from the Commission pursuant to 56-580 and 56-585.1. | |
| 414 | 364 | ||
| 415 | - | ||
| 365 | + | 2. By December 31, 2035, each Phase II Utility shall petition the Commission for necessary approvals to (i) construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of 16,100 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, which shall include 1,100 megawatts of solar generation of a nameplate capacity not to exceed three megawatts per individual project and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar facilities owned by persons other than a utility, including utility affiliates and deregulated affiliates and (ii) pursuant to 56-585.1:11, construct or purchase one or more offshore wind generation facilities located off the Commonwealth's Atlantic shoreline or in federal waters and interconnected directly into the Commonwealth with an aggregate capacity of up to 5,200 megawatts. At least 200 megawatts of the 16,100 megawatts shall be placed on previously developed project sites. | |
| 416 | 366 | ||
| 417 | - | ||
| 367 | + | a. By December 31, 2024, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 3,000 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility. | |
| 418 | 368 | ||
| 419 | - | ||
| 369 | + | b. By December 31, 2027, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 3,000 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility. | |
| 420 | 370 | ||
| 421 | - | ||
| 371 | + | c. By December 31, 2030, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 4,000 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility. | |
| 422 | 372 | ||
| 423 | - | ||
| 373 | + | d. By December 31, 2035, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 6,100 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility. | |
| 424 | 374 | ||
| 425 | - | ||
| 375 | + | e. Nothing in this subdivision 2 shall prohibit such Phase II Utility from constructing, acquiring, or entering into agreements to purchase the energy, capacity, and environmental attributes of more than 16,100 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, provided the utility receives approval from the Commission pursuant to 56-580 and 56-585.1. | |
| 426 | 376 | ||
| 427 | - | ||
| 377 | + | 3. Nothing in this section shall prohibit a utility from petitioning the Commission to construct or acquire zero-carbon electricity or from entering into contracts to procure the energy, capacity, and environmental attributes of zero-carbon electricity generating resources in excess of the requirements in subsection B. The Commission shall determine whether to approve such petitions on a stand-alone basis pursuant to 56-580 and 56-585.1, provided that the Commission's review shall also consider whether the proposed generating capacity (i) is necessary to meet the utility's native load, (ii) is likely to lower customer fuel costs, (iii) will provide economic development opportunities in the Commonwealth, and (iv) serves a need that cannot be more affordably met with demand-side or energy storage resources. | |
| 428 | 378 | ||
| 429 | - | ||
| 379 | + | Each Phase I and Phase II Utility shall, at least once every year, conduct a request for proposals for new solar and wind resources. Such requests shall quantify and describe the utility's need for energy, capacity, or renewable energy certificates. The requests for proposals shall be publicly announced and made available for public review on the utility's website at least 45 days prior to the closing of such request for proposals. The requests for proposals shall provide, at a minimum, the following information: (a) the size, type, and timing of resources for which the utility anticipates contracting; (b) any minimum thresholds that must be met by respondents; (c) major assumptions to be used by the utility in the bid evaluation process, including environmental emission standards; (d) detailed instructions for preparing bids so that bids can be evaluated on a consistent basis; (e) the preferred general location of additional capacity; and (f) specific information concerning the factors involved in determining the price and non-price criteria used for selecting winning bids. A utility may evaluate responses to requests for proposals based on any criteria that it deems reasonable but shall at a minimum consider the following in its selection process: (1) the status of a particular project's development; (2) the age of existing generation facilities; (3) the demonstrated financial viability of a project and the developer; (4) a developer's prior experience in the field; (5) the location and effect on the transmission grid of a generation facility; (6) benefits to the Commonwealth that are associated with particular projects, including regional economic development and the use of goods and services from Virginia businesses; and (7) the environmental impacts of particular resources, including impacts on air quality within the Commonwealth and the carbon intensity of the utility's generation portfolio. | |
| 430 | 380 | ||
| 431 | - | ||
| 381 | + | 4. In connection with the requirements of this subsection, each Phase I and Phase II Utility shall, commencing in 2020 and concluding in 2035, submit annually a plan and petition for approval for the development of new solar and onshore wind generation capacity. Such plan shall reflect, in the aggregate and over its duration, the requirements of subsection D concerning the allocation percentages for construction or purchase of such capacity. Such petition shall contain any request for approval to construct such facilities pursuant to subsection D of 56-580 and a request for approval or update of a rate adjustment clause pursuant to subdivision A 6 of 56-585.1 to recover the costs of such facilities. Such plan shall also include the utility's plan to meet the energy storage project targets of subsection E, including the goal of installing at least 10 percent of such energy storage projects petitioned for pursuant to subdivisions E 1 and 2 behind the meter. In determining whether to approve the utility's plan and any associated petition requests, the Commission shall determine whether they are reasonable and prudent and shall give due consideration to (i) the RPS and carbon dioxide reduction requirements in this section; (ii) the promotion of new renewable generation and energy storage resources within the Commonwealth, and associated economic development; and (iii) fuel savings projected to be achieved by the plan. Notwithstanding any other provision of this title, the Commission's final order regarding any such petition and associated requests shall be entered by the Commission not more than six months after the date of the filing of such petition. | |
| 432 | 382 | ||
| 433 | - | ||
| 383 | + | 5. If, in any year, a Phase I or Phase II Utility is unable to meet the compliance obligation of the RPS Program requirements or if the cost of RECs necessary to comply with RPS Program requirements exceeds $45 per megawatt hour, such supplier shall be obligated to make a deficiency payment equal to $45 for each megawatt-hour shortfall for the year of noncompliance, except that the deficiency payment for any shortfall in procuring RECs for solar, wind, or anaerobic digesters located in the Commonwealth shall be $75 per megawatts hour for resources one megawatt and lower. The amount of any deficiency payment shall increase by one percent annually after 2021. A Phase I or Phase II Utility shall be entitled to recover the costs of such payments as a cost of compliance with the requirements of this subsection pursuant to subdivision A 5 d of 56-585.1. All proceeds from the deficiency payments shall be deposited into an interest-bearing account administered by the Department of Energy. In administering this account, the Department of Energy shall manage the account as follows: (i) 50 percent of total revenue shall be directed to job training programs in historically economically disadvantaged communities; (ii) 16 percent of total revenue shall be directed to energy efficiency measures for public facilities; (iii) 30 percent of total revenue shall be directed to renewable energy programs located in historically economically disadvantaged communities; and (iv) four percent of total revenue shall be directed to administrative costs. | |
| 434 | 384 | ||
| 435 | - | ||
| 385 | + | For any project constructed pursuant to this subsection or subsection E, a utility shall, subject to a competitive procurement process, procure equipment from a Virginia-based or United States-based manufacturer using materials or product components made in Virginia or the United States, if reasonably available and competitively priced. | |
| 436 | 386 | ||
| 437 | - | ||
| 387 | + | E. To enhance reliability and performance of the utility's generation and distribution system, each Phase I and Phase II Utility shall petition the Commission for necessary approvals to construct or, acquire new, or procure utility-owned energy storage resources. For the purposes of this subsection, "long-duration energy storage" means energy storage resources with 10 hours or more of generation capacity operating at full nameplate capacity and "short-duration energy storage" means energy storage resources with less than 10 hours of generation capacity. | |
| 438 | 388 | ||
| 439 | - | ||
| 389 | + | 1. By December 31, 2035 2040, each Phase I Utility shall petition the Commission for necessary approvals to construct or, acquire 400, or procure 780 megawatts of short-duration energy storage capacity. Nothing in this subdivision shall prohibit a Phase I Utility from constructing or, acquiring, or procuring more than 400 780 megawatts of short-duration energy storage, provided that the utility receives approval from the Commission pursuant to 56-580 and 56-585.1. | |
| 440 | 390 | ||
| 441 | - | ||
| 391 | + | 2. By December 31, 2035 2040, each Phase II Utility shall petition the Commission for necessary approvals to construct or, acquire 2,700, or procure 4,000 megawatts of short-duration energy storage capacity, and by December 31, 2045, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or procure 5,220 megawatts of short-duration energy storage capacity. Nothing in this subdivision shall prohibit a Phase II Utility from constructing or, acquiring, or procuring more than 2,700 5,220 megawatts of short-duration energy storage, provided that the utility receives approval from the Commission pursuant to 56-580 and 56-585.1. | |
| 442 | 392 | ||
| 443 | - | ||
| 393 | + | 3. By December 31, 2045, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or procure 520 megawatts of long-duration energy storage capacity, half of which shall be petitioned to the Commission for necessary approvals to be constructed, acquired, or procured by December 31, 2035. Of such 520 megawatts, half shall have between 10 and 24 hours of storage capacity and the other half shall have more than 24 hours of storage capacity. Nothing in this subdivision shall prohibit a Phase I Utility from constructing, acquiring, or procuring more than 520 megawatts of long-duration energy storage, provided that the utility receives approval from the Commission pursuant to 56-580 and 56-585.1. | |
| 444 | 394 | ||
| 445 | - | ||
| 395 | + | 4. By December 31, 2045, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or procure 3,480 megawatts of long-duration energy storage capacity, half of which shall be petitioned to the Commission for necessary approvals to be constructed, acquired, or procured by December 31, 2035. Of such 3,480 megawatts, half shall have between 10 and 24 hours of storage capacity and the other half shall have more than 24 hours of storage capacity. Nothing in this subdivision shall prohibit a Phase II Utility from constructing, acquiring, or procuring more than 3,480 megawatts of long-duration energy storage, provided that the utility receives approval from the Commission pursuant to 56-580 and 56-585.1. | |
| 446 | 396 | ||
| 447 | - | ||
| 397 | + | 5. No single energy storage project shall exceed 500 megawatts in size, except that a Phase II Utility may procure a single energy storage project up to 800 megawatts. | |
| 448 | 398 | ||
| 449 | - | 4. | |
| 399 | + | 4. 6. All energy storage projects procured pursuant to this subsection shall meet the competitive procurement protocols established in subdivision D 3. | |
| 450 | 400 | ||
| 451 | - | 5. | |
| 401 | + | 5. 7. After July 1, 2020, at least 35 percent of the energy storage facilities placed into service shall be (i) purchased by the public utility from a party other than the public utility or (ii) owned by a party other than a public utility, with the capacity from such facilities sold to the public utility. By January 1, 2021, the Commission shall adopt regulations to achieve the deployment of energy storage for the Commonwealth required in subdivisions 1 and 2, including regulations that set interim targets and update existing utility planning and procurement rules. The regulations shall include programs and mechanisms to deploy energy storage, including competitive solicitations, behind-the-meter incentives, non-wires alternatives programs, and peak demand reduction programs. The Commission shall update these regulations every five years. | |
| 452 | 402 | ||
| 453 | - | ||
| 403 | + | 8. By December 1, 2025, the Department of Energy, in consultation with the Department of Environmental Quality and the Department of Fire Programs, shall create model ordinances suggested for use by localities in their regulation of energy storage projects and shall update such model ordinances every three years. | |
| 454 | 404 | ||
| 455 | - | ||
| 405 | + | F. All costs incurred by a Phase I or Phase II Utility related to compliance with the requirements of this section or pursuant to 56-585.1:11, including (i) costs of generation facilities powered by sunlight or onshore or offshore wind, or energy storage facilities, that are constructed or acquired by a Phase I or Phase II Utility after July 1, 2020, (ii) costs of capacity, energy, or environmental attributes from generation facilities powered by sunlight or onshore or offshore wind, or falling water, or energy storage facilities purchased by the utility from persons other than the utility through agreements after July 1, 2020, and (iii) all other costs of compliance, including costs associated with the purchase of RECs associated with RPS Program requirements pursuant to this section shall be recovered from all retail customers in the service territory of a Phase I or Phase II Utility as a non-bypassable charge, irrespective of the generation supplier of such customer, except (a) as provided in subsection G for an accelerated renewable energy buyer or (b) as provided in subdivision C 3 of 56-585.1:11, with respect to the costs of an offshore wind generation facility, for a PIPP eligible utility customer or an advanced clean energy buyer or qualifying large general service customer, as those terms are defined in 56-585.1:11. If a Phase I or Phase II Utility serves customers in more than one jurisdiction, such utility shall recover all of the costs of compliance with the RPS Program requirements from its Virginia customers through the applicable cost recovery mechanism, and all associated energy, capacity, and environmental attributes shall be assigned to Virginia to the extent that such costs are requested but not recovered from any system customers outside the Commonwealth. | |
| 456 | 406 | ||
| 457 | - | ||
| 407 | + | By September 1, 2020, the Commission shall direct the initiation of a proceeding for each Phase I and Phase II Utility to review and determine the amount of such costs, net of benefits, that should be allocated to retail customers within the utility's service territory which have elected to receive electric supply service from a supplier of electric energy other than the utility, and shall direct that tariff provisions be implemented to recover those costs from such customers beginning no later than January 1, 2021. Thereafter, such charges and tariff provisions shall be updated and trued up by the utility on an annual basis, subject to continuing review and approval by the Commission. | |
| 458 | 408 | ||
| 459 | - | ||
| 409 | + | G. 1. An accelerated renewable energy buyer may contract with a Phase I or Phase II Utility, or a person other than a Phase I or Phase II Utility, to obtain (i) RECs from RPS eligible resources or (ii) bundled capacity, energy, and RECs from solar or wind generation resources located within the PJM region and initially placed in commercial operation after January 1, 2015, including any contract with a utility for such generation resources that does not allocate to or recover from any other customer of the utility the cost of such resources. Such an accelerated renewable energy buyer may offset all or a portion of its electric load for purposes of RPS compliance through such arrangements. An accelerated renewable energy buyer shall be exempt from the assignment of non-bypassable RPS compliance costs pursuant to subsection F, with the exception of the costs of an offshore wind generating facility pursuant to 56-585.1:11, based on the amount of RECs obtained pursuant to this subsection in proportion to the customer's total electric energy consumption, on an annual basis. An accelerated renewable energy buyer obtaining RECs only shall not be exempt from costs related to procurement of new solar or onshore wind generation capacity, energy, or environmental attributes, or energy storage facilities, by the utility pursuant to subsections D and E, however, an accelerated renewable energy buyer that is a customer of a Phase II Utility and was subscribed, as of March 1, 2020, to a voluntary companion experimental tariff offering of the utility for the purchase of renewable attributes from renewable energy facilities that requires a renewable facilities agreement and the purchase of a minimum of 2,000 renewable attributes annually, shall be exempt from allocation of the net costs related to procurement of new solar or onshore wind generation capacity, energy, or environmental attributes, or energy storage facilities, by the utility pursuant to subsections D and E, based on the amount of RECs associated with the customer's renewable facilities agreements associated with such tariff offering as of that date in proportion to the customer's total electric energy consumption, on an annual basis. To the extent that an accelerated renewable energy buyer contracts for the capacity of new solar or wind generation resources pursuant to this subsection, the aggregate amount of such nameplate capacity shall be offset from the utility's procurement requirements pursuant to subsection D. All RECs associated with contracts entered into by an accelerated renewable energy buyer with the utility, or a person other than the utility, for an RPS Program shall not be credited to the utility's compliance with its RPS requirements, and the calculation of the utility's RPS Program requirements shall not include the electric load covered by customers certified as accelerated renewable energy buyers. | |
| 460 | 410 | ||
| 461 | - | ||
| 411 | + | 2. Each Phase I or Phase II Utility shall certify, and verify as necessary, to the Commission that the accelerated renewable energy buyer has satisfied the exemption requirements of this subsection for each year, or an accelerated renewable energy buyer may choose to certify satisfaction of this exemption by reporting to the Commission individually. The Commission may promulgate such rules and regulations as may be necessary to implement the provisions of this subsection. | |
| 462 | 412 | ||
| 463 | - | ||
| 413 | + | 3. Provided that no incremental costs associated with any contract between a Phase I or Phase II Utility and an accelerated renewable energy buyer is allocated to or recovered from any other customer of the utility, any such contract with an accelerated renewable energy buyer that is a jurisdictional customer of the utility shall not be deemed a special rate or contract requiring Commission approval pursuant to 56-235.2. | |
| 464 | 414 | ||
| 465 | - | ||
| 415 | + | H. No customer of a Phase II Utility with a peak demand in excess of 100 megawatts in 2019 that elected pursuant to subdivision A 3 of 56-577 to purchase electric energy from a competitive service provider prior to April 1, 2019, shall be allocated any non-bypassable charges pursuant to subsection F for such period that the customer is not purchasing electric energy from the utility, and such customer's electric load shall not be included in the utility's RPS Program requirements. No customer of a Phase I Utility that elected pursuant to subdivision A 3 of 56-577 to purchase electric energy from a competitive service provider prior to February 1, 2019, shall be allocated any non-bypassable charges pursuant to subsection F for such period that the customer is not purchasing electric energy from the utility, and such customer's electric load shall not be included in the utility's RPS Program requirements. | |
| 466 | 416 | ||
| 467 | - | ||
| 417 | + | I. In any petition by a Phase I or Phase II Utility for a certificate of public convenience and necessity to construct and operate an electrical generating facility that generates electric energy derived from sunlight submitted pursuant to 56-580, such utility shall demonstrate that the proposed facility was subject to competitive procurement or solicitation as set forth in subdivision D 3. | |
| 468 | 418 | ||
| 469 | - | ||
| 419 | + | J. Notwithstanding any contrary provision of law, for the purposes of this section, any falling water generation facility located in the Commonwealth and commencing commercial operations prior to July 1, 2024, shall be considered a renewable energy portfolio standard (RPS) eligible source. | |
| 470 | 420 | ||
| 471 | - | ||
| 421 | + | K. Nothing in this section shall apply to any entity organized under Chapter 9.1 ( 56-231.15 et seq.). | |
| 472 | 422 | ||
| 473 | - | ||
| 423 | + | L. The Commission shall adopt such rules and regulations as may be necessary to implement the provisions of this section, including a requirement that participants verify whether the RPS Program requirements are met in accordance with this section. | |
| 474 | 424 | ||
| 475 | - | ||
| 425 | + | 2. That it is the policy of the Commonwealth to further the evaluation and growth of existing and new energy storage technologies, including short-duration energy storage and long-duration energy storage, as those terms are defined in subsection E of 56-585.5 of the Code of Virginia, as amended by this act, in bolstering reliability of the electric grid and resource adequacy needs. The State Corporation Commission shall consider such policy in evaluating petitions by a Phase I or Phase II Utility, as those terms are defined in subdivision A 1 of 56-585.1 of the Code of Virginia, to construct, acquire, or procure short-duration or long-duration energy storage resources pursuant to subsection E of 56-585.5 of the Code of Virginia, as amended by this act. | |
| 476 | 426 | ||
| 477 | - | 2. That 56-585.5 of the Code of Virginia is repealed. | |
| 427 | + | 3. That the Department of Energy, in consultation with the Department of Environmental Quality (the Departments), shall convene a work group to determine recommendations and financial incentives for the development of long-duration energy storage projects, as defined in subsection E of 56-585.5 of the Code of Virginia, as amended by this act. The work group shall include representatives from electric utilities, localities, interest groups, private businesses, and other stakeholders to develop recommendations and financial incentives related to the development of long-duration energy storage projects. In developing such recommendations and financial incentives, the work group shall give special consideration to projects on previously disturbed land, projects that connect directly to the electric distribution grid, and projects seeking to leverage the exemption for storage facilities provided in subsection G of 58.1-3660 of the Code of Virginia and whether the threshold for such exemption should change. The Departments shall submit a report from the work group to the Chairmen of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor no later than December 1, 2025. | |
| 428 | + | ||
| 429 | + | 4. That the Department of Energy, in consultation with the Department of Environmental Quality and the Department of Fire Programs (the Departments), shall convene a work group to develop model ordinances suggested for use by localities in their regulation of energy storage projects pursuant to subdivision E 8 of 56-585.5 of the Code of Virginia, as amended by this act. The work group shall include representatives from the Virginia Association of Counties, the Virginia Fire Prevention Association, the Virginia Farm Bureau Federation, the Piedmont Environmental Council, the Chesapeake Solar and Storage Association, the Solar Energy Industries Association, the American Clean Power Association, Advanced Energy United, storage project engineers, electric utilities, and any other stakeholders deemed relevant by the Departments, the State Corporation Commission, or the Virginia Economic Development Partnership Authority. The Departments shall make available online the resources and studies that inform the model ordinances developed by the work group. The Departments shall submit a report from the work group to the Chairmen of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor no later than December 1, 2025. | |
| 430 | + | ||
| 431 | + | 5. That the State Corporation Commission (the Commission) shall establish a technology demonstration program for long-duration energy storage resources, as defined in subsection E of 56-585.5 of the Code of Virginia, as amended by this act, to evaluate the feasibility, effectiveness, and reliability benefits of such resources. Such program shall provide for a Phase II Utility, as defined in subdivision A 1 of 56-585.1 of the Code of Virginia, to petition the Commission for approval to construct, acquire, or procure one or more long-duration energy storage resources with a discharge capacity of at least 3,000 megawatt-hours, unless the Commission in its discretion determines that long-duration energy storage resources were not reasonably available in sufficient quantities to support such petitions. The program shall also provide that the Phase II Utility may include any long-duration energy storage resources existing at the time of such petition in such aggregate capacity. In performing the technology demonstration as established by the Commission, a Phase II Utility shall make a reasonable good-faith effort to secure appropriate sources of funding from the U.S. Department of Energy. A Phase II Utility shall report technology demonstration program outcomes to the Commission no later than October 1, 2029. Such report may include data regarding the costs of projects included in the technology demonstration program, the ease and ability to procure necessary supply chain elements supporting long-duration energy storage, the relative ease associated with siting long-duration energy storage resources, and any other data that the Commission deems relevant. | |
| 432 | + | ||
| 433 | + | 6. That the provisions of subdivisions E 3 and 4 of 56-585.5 of the Code of Virginia, as amended by this act, shall become effective only upon a determination by the State Corporation Commission (the Commission) that the technology referenced in such subdivisions is technically viable and that the construction, acquisition, or procurement targets referenced in such subdivisions are reasonably achievable. The Commission shall initiate a proceeding to make such determination or alternatively propose modified targets for the construction, acquisition, or procurement of such technology upon receipt of the report by a Phase II Utility as required by the fifth enactment of this act and shall enter its final order in such proceeding no later than March 1, 2030. As part of such proceeding, the Commission shall also determine whether an additional technology demonstration program for long-duration energy storage is necessary to further the goal of evaluating the role for energy storage technologies in bolstering reliability of the electric grid. If the Commission so determines, the Commission shall establish the duration and scope of an additional technology demonstration program, including an incremental amount of discharge capacity from long-duration energy storage projects eligible to be deployed. The Commission shall use all available data and information relating to such technology in the proceeding. In the event the Commission does not determine that such technology and targets are viable and achievable, nothing in this act shall prohibit the Commission from initiating future proceedings in its own discretion or upon a petition by an interested party to assess such technology and targets. | |
| 434 | + | ||
| 435 | + | 7. That the State Corporation Commission (the Commission) shall update its regulations to achieve the deployment of energy storage in the Commonwealth, including regulations that set interim targets consistent with the provisions of subdivisions E 3 and 4 of 56-585.5 of the Code of Virginia, as amended by this act. Upon making the determination pursuant to the sixth enactment of this act, the Commission shall promulgate regulations, including interim targets, reflecting the provisions of subdivisions E 3 and 4 of 56-585.5 of the Code of Virginia, as amended by this act. | |
| 436 | + | ||
| 437 | + | 8. That the Department of Energy shall, through the Independent State Agencies Committee, engage with PJM Interconnection, LLC, and other state-level utility regulators within the PJM region in reviewing regional market conditions for the energy storage market, including existing cost signals and interconnection related to energy storage technology. | |
| 438 | + | ||
| 439 | + | 9. That, in order to promote research and workforce development in the energy storage industry, a Phase II Utility, as defined in subdivision A 1 of 56-585.1 of the Code of Virginia, may propose an energy storage partnership with institutions of higher education in the Commonwealth, which may include energy storage deployment at such institutions, internships related to the energy storage industry, and involvement as appropriate in new and ongoing research in the energy storage industry. Such proposal shall be subject to approval by the State Corporation Commission and shall include at least one historically black college or university, as defined in 2.2-1604 of the Code of Virginia, and one comprehensive community college, as defined in 23.1-100 of the Code of Virginia. |