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2006 SESSION

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SB 262 Virginia Energy Plan; created.

Introduced by: Frank W. Wagner | all patrons    ...    notes | add to my profiles | history

SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION:

Virginia Energy Plan.  Establishes an energy policy for the Commonwealth and directs the Division of Energy of the Department of Mines, Minerals and Energy, in consultation with the State Corporation Commission, Department of Environmental Quality, and Virginia Center for Coal and Energy Research, to prepare, by July 1, 2007, a ten-year comprehensive Virginia Energy Plan to implement the Commonwealth's energy policy.  As part of the Energy Plan, the Division of Energy and other agencies shall develop a system for measuring the extent to which parcels are suitable for the siting of wind or solar energy facilities.  After July 1, 2007, upon receipt of a recommendation from the Department of General Services, a local governing body, or a parcel's owner that a parcel is a potentially suitable location for such an energy facility, the Division shall analyze the parcel's suitability.  The measure also provides that it is the Commonwealth's policy to support federal efforts to determine the extent of natural gas resources 50 miles or more offshore and to support the inclusion of the Atlantic Planning Areas in the federal Mineral Management Service's draft environmental impact statement for natural gas exploration 50 miles or more off the Atlantic shoreline.  It is declared to be the policy of the Commonwealth to support federal efforts to examine the feasibility of off-shore wind energy being utilized in an environmentally responsible fashion.  Other elements of the bill (i) require Dominion Virginia Power to apply for annual fuel factor adjustments to its electricity rates commencing July 1, 2007, and allow the SCC to require that 40% of any increase in fuel tariffs for the year 2007-2008 be deferred and recovered during the period from July 1, 2008, through December 31, 2010; (ii) create a state personal income tax deduction for 20% of the sales tax paid on certain energy efficient equipment or appliances, up to $500 per year; (iii) require state agencies to ensure that the design and construction of state-owned buildings comply with energy standards to be established by Department of General Services; (iv) establish a Clean Coal Technology Research Fund, to be administered by the Virginia Center for Coal and Energy Research and used to finance research initiatives at state institutions of higher education and to encourage qualified state educational institutions to apply for federal grants to finance a center of excellence for advancing new clean coal technologies; (v) direct the Commonwealth Transportation Board to encourage the use of biodiesel and other alternative fuels, to the extent practicable, in vehicles used to provide public transportation; (vi) create the Virginia Coastal Energy Research Consortium, to include Old Dominion University, the Virginia Institute of Marine Science, the Virginia Tech Advanced Research Institute, James Madison University, and Norfolk State University, to serve as an interdisciplinary study, research, and information resource on coastal energy issues; (vii) prohibit community associations from enacting any provisions restricting solar power or the use of solar energy collection devices on units or lots that are part of the development, except to the extent provided in the applicable instruments, declaration or rules, and authorizes community associations to prohibit or restrict the installation and use of such solar energy collection devices on the common elements or common areas; (viii) state that it is the policy of the Commonwealth to support federal action that provides for increasing the Corporate Average Fuel Efficiency standards; (ix) establish a program of grants of 0.85 cents for each kilowatt hour of electricity produced by a corporation from certain renewable energy resources; (x) establish a program of grants for 15% of the cost incurred in installing photovoltaic property, solar water heating property, or wind-powered electrical generators, up to $2,000 for each system of photovoltaic property, $1,000 for each system of solar water heating property, and $1,000 for each system of wind-powered electrical generators; (xi) exempt from property taxation any certified pollution control equipment and facilities used in collecting, processing, and distributing landfill gas and other gas recovered from waste products; (xii) require the State Corporation Commission and Secretary of Natural Resources to develop, by December 1, 2006, a proposal for a coordinated review of permits for any energy project that requires an environmental permit and a certificate of public convenience and necessity; and (xiii) sunset the provisions of the bill that establish the clean coal technology research fund, Coastal Energy Research Consortium, Renewable Electricity Production Grant Program, and Photovoltaic, Solar, and Wind Energy Utilization Grant Program if they are not funded by July 1, 2009.

SUMMARY AS PASSED:

Virginia Energy Plan.  Establishes an energy policy of the Commonwealth and directs the Division of Energy of the Department of Mines, Minerals and Energy, in consultation with the State Corporation Commission, Department of Environmental Quality, and Virginia Center for Coal and Energy Research, to prepare, by July 1, 2007, a ten-year comprehensive Virginia Energy Plan to implement the Commonwealth's energy policy.  With respect to offshore energy resources, the bill (i) declares that it is the policy of the Commonwealth to encourage the members of the State Congressional Delegation and federal executive agencies to develop, support, and enact federal legislation, and to take appropriate federal executive action that will provide an exemption to the moratorium that prevents until 2012 any surveying, exploration, development, or production of potential natural gas deposits in areas off the Commonwealth's Atlantic shore that are under federal jurisdiction, and to develop, support, and enact federal legislation that will enable the Commonwealth to exercise exclusive jurisdiction with respect to offshore wind energy resources; (ii) directs royalties and other moneys paid by the federal government as a result of the development of offshore energy resources to be deposited in a State Offshore Energy Revenue Fund and allocated among the Virginia Water Quality Improvement Fund, the Transportation Trust Fund, clean coal technology research, a Coastal Energy Research Consortium and other alternative energy initiatives, and grants for producing and using clean and efficient energy; (iii) directs all agencies, boards and commissions of the Commonwealth to ensure that any permits or approvals that are required for the exploration and production of hydrocarbons within federal jurisdictional areas off the Commonwealth's Atlantic shore provide that such exploration and production will be undertaken in a manner protective of the environment and public safety; (iv) prohibits the drilling of any wells for natural gas or oil in areas off the Commonwealth's Atlantic shore within 30 miles of the shoreline; and (v) prohibits the construction of onshore natural gas exploration and production facilities on the Eastern Shore.  Other initiatives (a) establish a Clean Coal Technology Research Fund, to be administered by the Virginia Center for Coal and Energy Research and used to finance research initiatives at state institutions of higher education and to encourage qualified state educational institutions to apply for federal grants to finance a center of excellence for advancing new clean coal technologies; (b) require designs for state buildings to incorporate reasonable cost-effective energy conservation measures and alternative energy systems; (c) direct the Commonwealth Transportation Board to encourage the use of biodiesel and other alternative fuels, to the extent practicable, in vehicles used to provide public transportation; (d) create the Virginia Coastal Energy Research Consortium, to include Old Dominion University, the Virginia Institute of Marine Science, the Virginia Tech Advanced Research Institute, James Madison University, and Norfolk State University, to serve as an interdisciplinary study, research, and information resource on coastal energy issues, including wave or tidal action, currents, offshore winds, thermal differences, and methane hydrates; (e) prohibit community associations from enacting any provisions restricting solar power or the use of solar energy collection devices on units or lots that are part of the development, except to the extent provided in the applicable instruments, declaration or rules, and authorizes community associations to prohibit or restrict the installation and use of such solar energy collection devices on the common elements or common areas; and (f) declare it to be the policy of the Commonwealth to encourage the members of the State Congressional Delegation and federal executive agencies to develop, support, and enact federal legislation, and to take appropriate federal executive action, that will increase the Corporate Average Fuel Efficiency standards from the current standard by promoting performance-based tax credits for advanced technology, fuel-efficient vehicles to facilitate the introduction and purchase of such vehicles and by advocating for market incentives and education programs to build demand for high-efficiency, cleaner vehicles, including tax incentives for highly efficient vehicles.  The bill directs the State Corporation Commission to develop a system for scoring parcels in the Commonwealth for their suitability as wind energy facilities, liquefied natural gas facilities, nuclear energy facilities, and solar energy facilities, upon recommendation by the Department of General Services for state-owned land, local governing bodies with the consent of the parcel's owner, or the owner of a parcel. Parcels that are scored as being optimal sites for such low-emission energy facilities would be eligible to use a one-stop permitting process, as may be adopted by the General Assembly.  The State Corporation Commission and Secretary of Natural Resources are directed to prepare a proposal for a one-stop permitting process for low-emission energy facilities, which proposal shall be presented by December 1, 2006.  The bill also provides grant awards for producing and using clean and efficient energy including grant awards in the amount of 0.85 cents for each kilowatt hour of electricity produced by a corporation from certain renewable energy resources and grants to individuals and corporations equal to 15 percent of the cost incurred in installing photovoltaic property, solar water heating property, or wind-powered electrical generators.  The grants are limited to $2,000 for each system of photovoltaic property, $1,000 for each system of solar water heating property, and $1,000 for each system of wind-powered electrical generators.  Finally, the measure exempts from property taxation certified pollution control equipment and facilities used in collecting, processing, and distributing landfill gas and other gas recovered from waste products. 

SUMMARY AS PASSED SENATE:

Virginia Energy Plan.  Establishes an energy policy of the Commonwealth and directs the Division of Energy of the Department of Mines, Minerals and Energy, in consultation with the State Corporation Commission, Department of Environmental Quality, and Virginia Center for Coal and Energy Research, to prepare, by July 1, 2007, a ten-year comprehensive Virginia Energy Plan to implement the Commonwealth's energy policy.

With respect to offshore energy resources, the bill (i) declares that it is the policy of the Commonwealth to encourage the members of the State Congressional Delegation and federal executive agencies to develop, support, and enact federal legislation, and to take appropriate federal executive action that will provide an exemption to the moratorium that prevents until 2012 any surveying, exploration, development, or production of potential natural gas deposits in areas off the Commonwealth's Atlantic shore that are under federal jurisdiction, and to develop, support, and enact federal legislation, and that will enable the Commonwealth to exercise exclusive jurisdiction with respect to offshore wind energy resources; (ii) directs royalties and other moneys paid by the federal government as a result of the development of offshore energy resources are to be deposited in a State Offshore Energy Revenue Fund and allocated among the Virginia Water Quality Improvement Fund, the Transportation Trust Fund, clean coal technology research, a Coastal Energy Research Consortium and other alternative energy initiatives, and grants for producing and using clean and efficient energy; (iii) directs all agencies, boards and commissions of the Commonwealth to ensure that any permits or approvals that are required for the exploration and production of hydrocarbons within federal jurisdictional areas off the Commonwealth's Atlantic shore provide that such exploration and production will be undertaken in a manner protective of the environment and public safety; and (iv) prohibits the drilling of any wells for natural gas or oil in areas off the Commonwealth's Atlantic shore within 30 miles of the shoreline.  Other initiatives (a) establish a Clean Coal Technology Research Fund, to be administered by the Virginia Center for Coal and Energy Research and used to finance research initiatives at state institutions of higher education and to encourage qualified state educational institutions to apply for federal grants to finance a center of excellence for advancing new clean coal technologies; (b) require designs for state buildings to incorporate reasonable cost-effective energy conservation measures and alternative energy systems; (c) directs the Commonwealth Transportation Board to encourage the use of biodiesel and other alternative fuels, to the extent practicable, in vehicles used to provide public transportation; (d) creates the Virginia Coastal Energy Research Consortium, to include Old Dominion University, the Virginia Institute of Marine Science, and Norfolk State University, to serve as an interdisciplinary study, research, and information resource on coastal energy issues, including wave or tidal action, currents, offshore winds, thermal differences, and methane hydrates; (e) prohibits community associations from enacting any provisions restricting solar power or the use of solar energy collection device on units or lots that are part of the development, except to the extent prohibited in the applicable instruments, declaration or rules, and authorizes community associations to prohibit or restrict the installation and use of such solar energy collection devices on the common elements or common areas; and (f) declares it to be the policy of the Commonwealth to encourage the members of the State Congressional Delegation and federal executive agencies to develop, support, and enact federal legislation, and to take appropriate federal executive action, that will increase the Corporate Average Fuel Efficiency standards from the current standard by promoting performance-based tax credits for advanced technology, fuel-efficient vehicles to facilitate the introduction and purchase of such vehicles and by advocating for market incentives and education programs to build demand for high-efficiency, cleaner vehicles, including tax incentives for highly efficient vehicles.  The State Corporation Commission's approval of the construction of substations, appurtenant to its approval of a transmission line, that are used primarily to step down the transmission voltage to a subtransmission voltage of not less than 40 kV shall be deemed to satisfy the requirements of local land use requirements.  The bill directs the State Corporation Commission to develop a system for scoring parcels in the Commonwealth for their suitability as wind energy facilities, liquefied natural gas facilities, nuclear energy facilities, and solar energy facilities, upon recommendation by the Department of General Services for state-owned land, local governing bodies with the consent of the parcel's owner, or the owner of a parcel. Parcels that are scored as being optimal sites for such low-emission energy facilities would be eligible to use a one-stop permitting process, as may be adopted by the General Assembly.  If approvals for such a facility are granted through the one-stop permitting process, the use of the parcel for the low-emission energy facility would be deemed to satisfy local land use requirements.  The existing Surry and North Anna nuclear plant sites and other sites determined through the U.S. Nuclear Regulatory Commission licensing process to be suitable for development of new nuclear generating units shall be deemed optimal sites without further proceedings.  The bill also provides grant awards for producing and using clean and efficient energy including grant awards in the amount of 0.85 cents for each kilowatt hour of electricity produced by a corporation from certain renewable energy resources and grants to individuals and corporations equal to 15 percent of the cost incurred in installing photovoltaic property, solar water heating property, or wind-powered electrical generators.  The grants are limited to $2,000 for each system of photovoltaic property, $1,000 for each system of solar water heating property, and $1,000 for each system of wind-powered electrical generators.  Subject to reenactment by the 2007 Session, the measure provides individual income tax deductions for 20 percent of the cost of certain appliances meeting energy star efficiency requirements developed by the federal government and for fuel cells, heat pumps, air conditioners, boilers, furnaces and water heaters meeting specified performance measures, and for the sales and use tax paid on motor vehicles using clean special fuel sources as a source of propulsion.  Finally, the measure exempts from property taxation certified pollution control equipment and facilities used in collecting, processing, and distributing landfill gas and other gas recovered from waste products.

SUMMARY AS INTRODUCED:

Virginia Energy Plan.  Establishes an energy policy of the Commonwealth and directs the Division of Energy of the Department of Mines, Minerals and Energy, in consultation with the State Corporation Commission, Department of Environmental Quality, and Virginia Center for Coal and Energy Research, to prepare a comprehensive Virginia Energy Plan to implement the policy. The measure directs the Virginia Liaison Office to work with members of the State Congressional Delegation and executive agencies to obtain an exemption to the existing federal moratorium on offshore natural gas exploration and development activity, and to enable Virginia to exercise exclusive jurisdiction over offshore wind energy resources. Royalties, lease payments, and other moneys paid by the federal government to the Commonwealth that are attributable to the development of offshore energy resources are to be deposited in the State Offshore Energy Revenue Fund and allocated among the Virginia Water Quality Improvement Fund, the Transportation Trust Fund, clean coal technology research, funding a methane hydrates research center and other alternative energy initiatives, and grants for producing and using clean and efficient energy. The Virginia Liaison Office is also directed to work with members of the State Congressional Delegation and executive agencies to enact legislation that increases the corporate average fuel efficiency standards for motor vehicles. The Center for Coal and Energy Research is directed to encourage qualified state institutions of higher education to apply for federal grants to finance a center of excellence for advancing new clean coal technologies and will administer a clean coal technology research fund. Designs for state buildings are required to incorporate reasonable cost-effective energy conservation measures and alternative energy systems. The measure requires all localities and transportation districts that provide mass transit or public transportation through the use of diesel-fueled vehicles to use biodiesel fuel in amounts not less than 1 percent of total diesel fuel consumption by volume, effective when the annual capacity in the Commonwealth for the production of biodiesel fuel exceeds one million gallons, but in no event before July 1, 2007, as a condition for receiving state funding. A methane hydrates research center is established at Old Dominion University. The measure invalidates any restrictive covenant or similar specification that restricts or prohibits solar energy collection devices. The measure also directs the State Corporation Commission to develop a system for scoring parcels in the Commonwealth for their suitability as wind energy facilities, liquefied natural gas terminals, and nuclear energy facilities, upon recommendation by the Department of General Services for state-owned land, local governing bodies with the consent of the parcel's owner, or the owner of a parcel. Parcels that are scored as being optimal sites for such low-emission energy facilities would be eligible to use a one-stop permitting process, as may be adopted by the General Assembly. If approvals for such a facility are granted through the one-stop permitting process, the use of the parcel for the low-emission energy facility would be deemed to satisfy local zoning requirements. The existing Surry and North Anna nuclear plant sites and other sites determined through the U.S. Nuclear Regulatory Commission licensing process to be suitable for development of new nuclear generating units shall be deemed optimal sites without further proceedings. The bill also provides grant awards for producing and using clean and efficient energy including (i) grant awards in the amount of 0.85 cents for each kilowatt hour of electricity produced by a corporation from certain renewable energy resources and (ii) grants to individuals and corporations equal to 15 percent of the cost incurred in installing photovoltaic property, solar water heating property, or wind-powered electrical generators. The grants are limited to $2,000 for each system of photovoltaic property, $1,000 for each system of solar water heating property, and $1,000 for each system of wind-powered electrical generators. The measure provides individual income tax deductions for 20 percent of the cost of certain appliances meeting energy star efficiency requirements developed by the federal government and for fuel cells, heat pumps, air conditioners, boilers, furnaces and water heaters meeting specified performance measures, and for the sales and use tax paid on motor vehicles using clean special fuel sources as a source of propulsion. Finally, the measure exempts certified pollution control equipment and facilities used in collecting, processing, and distributing landfill gas or natural gas recovered from waste from taxation.