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2015 SESSION

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House Committee on Commerce and Labor
Subcommittee Special Subcommittee on Energy

Kilgore (Chairman), Byron, Ware, Hugo, Marshall, D.W., Cline, Miller, Loupassi, Habeeb, Villanueva, Tyler, Spruill, Keam

Clerk: Terry Lynn
Date of Meeting: February 3, 2015
Time and Place: Immediately upon Adjournment of Full Committee - GAB HR D

H.B. 1622 Electric utilities; net energy metering.

Patron: Sullivan

Electric utilities; net energy metering. Increases the maximum generating capacity of an electrical generating facility owned or operated by an electric utility's residential customer that may be eligible for participation in the utility's net energy metering program from 20 kilowatts to 40 kilowatts. The measure also increases the maximum generating capacity of such a facility owned or operated by a nonresidential customer that may be eligible for participation in such a program from 500 kilowatts to one megawatt. This change to the definition of an "eligible customer-generator" also affects the definition of a "qualified energy project" as used in the Virginia Small Business Financing Act.

A BILL to amend and reenact § 56-594 of the Code of Virginia, relating to electric utilities; net energy metering program; generating facility capacities.

15102542D

H.B. 1636 Net energy metering; program for community subscriber organizations.

Patron: Minchew

Electric utilities; net energy metering; community subscriber organizations. Directs the State Corporation Commission to establish by regulation a program that affords community subscribers and community subscriber organizations the opportunity to participate in net energy metering. A community subscriber is a retail customer of an electric utility who owns a subscription in a community generation facility and receives on-bill credits for each kilowatt hour of energy produced by their portion of the community generation facility. The subscriber's premises is required to be located in the service territory of the utility in which the community generation facility is located and in the county in which the community generation facility is located or a neighboring county. A community generation facility is an electrical generating facility that uses as its total source of fuel renewable energy and has a capacity of not more than two megawatts. The measure also increases the maximum generating capacity of an electrical generating facility owned or operated by an electric utility's nonresidential customer, or a customer that operates a generation facility as part of an agricultural operation, that may be eligible for participation in the utility's net energy metering program from 500 kilowatts to two megawatts.

A BILL to amend and reenact § 56-594 of the Code of Virginia, relating to electric utilities; net energy metering; community subscriber organizations.

15102497D

H.B. 1708 Certain industrial uses; transmission lines.

Patron: Marshall, R.G.

Certain industrial uses; transmission lines. Requires that a zoning ordinance shall provide that any proposed data center that will require utilization of a 230 kilovolt electrical transmission line shall be located only in an area zoned for industrial use. However, if a zoning ordinance authorizes a data center, or similar land use, that will require utilization of a 230 kilovolt or greater electrical transmission line outside of an area zoned for industrial use, any electrical transmission lines that support such a land use and that are located at a distance greater than 300 feet from an existing electrical transmission line shall be placed underground at the expense of the owner of the data center.

A BILL to amend the Code of Virginia by adding a section numbered 15.2-2293.3, relating to certain industrial uses; transmission lines.

15103531D

H.B. 1725 Virginia Solar Energy Development Authority; created, report.

Patron: Bulova

Virginia Solar Energy Development Authority. Creates the Virginia Solar Energy Development Authority to facilitate, coordinate, and support the development of the solar energy industry and solar-powered electric energy facilities in the Commonwealth. The Authority is directed to do so by developing programs to increase the availability of financing for solar energy projects, facilitate the increase of solar energy generation systems on public and private sector facilities in the Commonwealth, promote the growth of the Virginia solar industry, and provide a hub for collaboration between entities to partner on solar energy projects. The Authority will be composed of 11 members appointed by the Governor. Members may be representatives of solar businesses, solar customers, renewable energy financiers, state and local government solar customers, and solar research academics. The Authority is charged with, among other tasks, (i) identifying existing state and regulatory or administrative barriers to the development of the solar energy industry, (ii) collaborating with entities such as higher education institutions to increase the training and development of the workforce needed by the solar industry in Virginia, including industry-recognized credentials and certifications, (iii) applying to the U.S. Department of Energy for loan guarantees for such projects, and (iv) performing any other activities as may seem appropriate to increase solar energy generation in Virginia and the associated jobs and economic development and competitiveness benefits. At the recommendation of the Authority, the Director of the Department of Mines, Minerals and Energy may utilize nonstate-funded support to carry out any duties assigned to the Director. Funding for nonstate support may be provided by any source, public or private, for the purposes for which the Authority is created.

A BILL to amend the Code of Virginia by adding in Title 67 a chapter numbered 15, consisting of sections numbered 67-1500 through 67-1509, relating to the Virginia Solar Energy Development Authority.

15103207D

H.B. 1729 Distributed electric generation; establishment of community solar gardens.

Patron: Sullivan

Distributed electric generation; community solar gardens. Authorizes the establishment of community solar gardens, which are required to be owned by a subscriber organization that has at least 10 subscribers. Subscribers will receive credits on their utility bills from energy generated at the solar facility in proportion to the size of their subscription. The output and renewable energy credits from a solar garden shall be purchased by the utility in the form of net metering credits allocated to the subscribers. To the extent that a subscriber's net metering credit exceeds the subscriber's electric bill in any billing period, the credit will be applied against future bills. If the electricity output of the community solar garden is not fully subscribed, the utility is required to purchase the unsubscribed renewable energy at a rate equal to the utility's average hourly incremental cost of electricity supply over the immediately preceding calendar year.

A BILL to amend the Code of Virginia by adding in Title 56 a chapter numbered 28, consisting of sections numbered 56-610 through 56-615, relating to distributed solar generation facilities; community solar gardens.

15102823D

H.B. 1730 Electric & natural gas utilities; energy efficiency goals required for investor-owned utilities.

Patron: Sullivan

Electric and natural gas utilities; energy efficiency goals. Requires investor-owned electric utilities, cooperative electric utilities, and investor-owned natural gas distribution utilities to meet incremental annual energy efficiency goals. Electric utilities are required to implement cost-effective energy efficiency measures to achieve the goal of two percent savings by 2030, with interim goals that start at 0.5 percent for 2016 and increase incrementally to 2030. Gas utilities are required to achieve the goal of one percent savings by 2030, with interim goals that start at 0.25 percent for 2016 and increase incrementally to 2030. The utilities are required to submit energy efficiency plans with the State Corporation Commission. The Commission shall (i) require utilities to report annually on their efforts and progress in meeting the incremental annual energy efficiency goals; (ii) establish requirements for programs implemented by utilities to comply with the incremental annual energy efficiency goals; and (iii) design performance incentives that shall reward utilities for meeting or exceeding efficiency goals. The Commission may consider a penalty for failing to meet efficiency goals.

A BILL to amend and reenact § 56-235.1 of the Code of Virginia, relating to electric and natural gas utilities; energy efficiency goals established.

15103082D

H.B. 1911 Electric utilities; net energy metering, standby charges.

Patron: Lopez

Electric utilities; net energy metering; standby charges. Requires the State Corporation Commission, before approving a supplier's proposed standby charge methodology, to find that a value of solar analysis demonstrates that the standby charges reflect the supplier's net costs or benefits properly associated with serving the customers that have installed a net metered generation facility. The bill specifies that a value of solar analysis determines such net costs or benefits by subtracting the value of all benefits provided to the supplier or the electric grid as a result of the installation and operation of the solar generation facility from the portion of the supplier's infrastructure costs that are properly associated with serving such customers.

A BILL to amend and reenact § 56-594 of the Code of Virginia, relating to electric utilities; net energy metering; standby charges.

15103484D

H.B. 1912 Electric utilities; net energy metering.

Patron: Lopez

Electric utilities; net energy metering. Increases, from 500 kilowatts to two megawatts, the maximum generating capacity of an electrical generating facility owned or operated by an electric utility's nonresidential customer that may be eligible for participation in the utility's net energy metering program. This change to the definition of an "eligible customer-generator" also affects the definition of a "qualified energy project" as used in the Virginia Small Business Financing Act.

A BILL to amend and reenact § 56-594 of the Code of Virginia, relating to electric utilities; net energy metering program.

15102830D

H.B. 1913 Electric utilities; renewable energy resources and energy efficiency goals.

Patron: Lopez

Electric utilities; renewable energy resources and energy efficiency goals. Revises the existing voluntary renewable energy portfolio standard program to require participating utilities to make investments in solar energy generation, onshore wind generation, offshore wind generation, and cumulative energy efficiency savings by calendar year 2030, but does not provide sanctions on a utility that fails to meet this goal. The measure (i) deletes provisions of the existing renewable energy portfolio standard program that provide credits for qualified investments by a participating utility in research and development programs and activities; (ii) deletes the double and triple credits for certain types of renewable energy generation while retaining the double credit for energy from on-shore wind obtained under power purchase agreements entered into prior to January 1, 2013; and (iii) requires participating utilities, through the implementation of energy efficiency and demand-side management programs, by calendar year 2022 to reduce the consumption of electric energy by retail customers by an amount equal to 10 percent of the amount of electric energy consumed by retail customers in 2006. The measure also provides that for compliance with any RPS Goal for calendar years 2015 through 2025, a utility may only apply renewable energy generated from renewable energy generation facilities owned by the utility, renewable energy purchased or acquired by the utility from a non-utility generator, renewable energy certificates purchased or acquired by the utility from customer-generators participating in net energy metering, or renewable energy certificates purchased or acquired by the utility from generators in the interconnection region of the regional transmission entity, except that a utility may not apply such renewable energy certificates to meet more than 20 percent of the sales requirement for the RPS Goal in any year.

A BILL to amend and reenact § 56-585.2 of the Code of Virginia, relating to electric utilities; renewable energy resources and energy efficiency goals.

15102890D

H.B. 1925 Renewable energy; third party power purchase agreements.

Patron: Lopez

Renewable energy; third party power purchase agreements. Replaces the pilot program enacted in 2013 that authorized certain third party power purchase agreements providing financing of certain renewable generation facilities. The measure requires the State Corporation Commission to establish third party power purchase agreement programs for eligible customer-generators in the service territories of Dominion Virginia Power and AEP. This measure differs from the existing pilot program in that (i) the existing pilot program applies only to Dominion Virginia Power and (ii) the maximum size of a renewable generation facility is increased from one megawatt to two megawatts.

A BILL to amend the Code of Virginia by adding a section numbered 56-594.2 and to repeal Chapters 358 and 382 of the Acts of Assembly of 2013, relating to electric utilities; third-party power purchase agreements; financing of certain renewable generation facilities.

15102776D

H.B. 1950 Electric utilities; net energy metering.

Patron: McClellan

Electric utilities; net energy metering. Increases, from 500 kilowatts to two megawatts, the maximum generating capacity of an electrical generating facility owned or operated by an electric utility's nonresidential customer that may be eligible for participation in the utility's net energy metering program. This change to the definition of an "eligible customer-generator" also affects the definition of a "qualified energy project" as used in the Virginia Small Business Financing Act.

A BILL to amend and reenact § 56-594 of the Code of Virginia, relating to electric utilities; net energy metering program.

15101776D

H.B. 2073 Electric utilities; net energy metering, energy balancing devices.

Patron: Toscano

Electric utilities; net energy metering; energy balancing devices. Directs the State Corporation Commission to establish a program for eligible energy balancing customers, which are customers that own an energy balancing device that provides value to the electric utility or regional transmission entity in the form of spinning reserve, frequency regulation, distribution system support, reactive power, demand response, or other electric grid services. An energy balancing device means either a grid-integrated electric vehicle or an electric battery that absorbs and returns energy to the electric grid on either a second-to-second response basis that provides frequency regulation or on a longer-term daily response basis that returns that energy to the electric grid during peak periods of demand. An energy balancing device does not add net electricity to the grid over a net metering period. An eligible energy balancing customer will be credited for the electricity it adds to the grid at the rate charged for the customer's usage of electricity.

A BILL to amend and reenact § 56-594 of the Code of Virginia, relating to electric utilities; net energy metering programs; energy balancing devices.

15103214D

H.B. 2075 Electric utility regulation; solar renewable energy certificate registration system.

Patron: Toscano

Renewable energy portfolio standard program; solar renewable energy certificate registration system. Requires the State Corporation Commission to establish and maintain a registry for solar renewable energy certificates (SRECs). The SREC registry shall include pertinent information regarding all available SRECs and SREC transactions among electric suppliers in the Commonwealth, including (i) the creation and application of SRECs, (ii) the number of SRECs sold or transferred, and (iii) the price paid for the sale or transfer of SRECs.

A BILL to amend and reenact § 56-585.2 of the Code of Virginia, relating to electric utility regulation; renewable energy portfolio standard program; registry for solar renewable energy certificates.

15100966D

H.B. 2155 Energy diversification requirement.

Patron: Sickles

Energy diversification requirement. Establishes a schedule by which Virginia's two largest investor-owned electric utilities are required to achieve certain percentages of quantified energy diversification (QED). QED consists of energy generated at new zero-emitting energy facilities and energy savings achieved through demand-side efficiency. The required amounts of QED start at 0.25 percent of a utility's retail sales in calendar year 2016 and ramp up in ensuing years to 35 percent of its retail sales in 2030 and thereafter. The measure requires that not less than 40 percent of the required amount of QED that a utility is required to achieve be from demand-side efficiency, which consists of distributed generation, demand response, and energy efficiency programs. If a utility fails to meet the required percentage of sales in a calendar year from these sources, it is required to make a noncompliance payment of $200 per megawatt hour short of the requirement. The measure provides for the issuance of certain credits by the Department of Mines, Minerals and Energy or its appointee. A utility establishes that it has met a requirement by submitting credits that evidence compliance. Noncompliance payments will be deposited in the Deployment Investment Fund created by the bill. A utility is entitled to recover its costs of compliance with the requirements, including noncompliance payments if they are less than the cost of available credits, through a rate adjustment clause.

A BILL to amend and reenact § 56-585.1 of the Code of Virginia and to amend the Code of Virginia by adding in Title 56 a chapter numbered 28, consisting of sections numbered 56-610 through 56-620, relating to a requirement that certain electric utilities advance energy diversification by acquiring energy from new zero-emitting energy facilities and demand-side efficiencies; cost recovery; noncompliance payments; civil penalties; reports.

15103479D

H.B. 2196 Virginia Energy Economic Development Advisory Board; Governor's Energy Fund; report.

Patron: Ware

Virginia Energy Economic Development Advisory Board; Governor's Energy Fund; report. Establishes the Governor's Energy Fund (the Fund) to award incentive grants in the form of reduced electricity rates consisting of (i) special rate classes, (ii) temporary rate credits, or (iii) any other methodology that may be authorized by law. The bill also creates the Virginia Energy Economic Development Advisory Board to advise the Governor on the award of energy incentive grants from the Fund.

 

A BILL to amend the Code of Virginia by adding a section numbered 2.2-215.1 and by adding in Chapter 24 of Title 2.2 an article numbered 25, consisting of sections numbered 2.2-2478 through 2.2-2483, relating to Virginia Energy Economic Development Advisory Board; Governor's Energy Fund; report.

15102134D

H.B. 2205 Regional Greenhouse Gas Initiative; Commonwealth Resilience Fund established.

Patron: Villanueva

Regional Greenhouse Gas Initiative; Commonwealth Resilience Fund established. Requires the Governor to join the Regional Greenhouse Gas Initiative that established a regional CO2 electric power sector cap and trade program and establishes the Commonwealth Resilience Fund, a revolving fund to serve as a consistent revenue stream to assist counties, cities, and towns in the Hampton Roads region with the implementation of adaptation efforts to combat sea level rise and recurrent flooding. The bill also provides economic development assistance for families, businesses, and localities in Southwest Virginia to offset negative economic impacts associated with reduced fossil fuel production.

A BILL to establish a funding source to localities in coastal Virginia for flood resilience by requiring the Governor to join the Regional Greenhouse Gas Initiative.

15103469D

H.B. 2219 Utility-scale solar energy facilities; construction of facilities to be in the public interest.

Patron: Yost

Utility-scale solar energy facilities. Declares that the construction by Appalachian Power or Dominion Virginia Power of utility-scale solar energy facilities with an aggregate rated capacity that does not exceed 500 megawatts is in the public interest. The bill authorizes these utilities to petition the State Corporation Commission for a certificate of public convenience and necessity to construct such a facility that has a rated capacity of not less than 20 megawatts, regardless of whether the facility will be located in the utility's service territory. The costs of the facility are recoverable through a rate adjustment clause, provided that the total rated capacity added by these facilities does not exceed 500 megawatts. The measure sunsets on January 1, 2019.

A BILL to amend the Code of Virginia by adding a section numbered 56-265.3:2, relating to utility-scale solar energy facilities.

15103061D

H.B. 2237 Electric utilities; costs of solar energy facilities.

Patron: Yancey

Electric utilities; costs of solar energy facilities. Authorizes an investor-owned electric utility that purchases a solar power generation facility located in the Commonwealth consisting of at least five megawatts of generating capacity to recover the costs of acquiring the facility, with an enhanced rate of return on equity, through a rate adjustment clause. The rate adjustment clause for recovering such costs may be based on a market index in lieu of a cost of service model. The measure also states that (i) the construction or purchase by a utility of such a solar power generation facility and (ii) planning and development activities for solar energy facilities are in the public interest.

A BILL to amend and reenact § 56-585.1 of the Code of Virginia, relating to electric utility ratemaking; recovery of costs of solar energy facilities.

15103476D

H.B. 2244 Electric utilities, certain; updated integrated resource plans.

Patron: James

Electric utilities; integrated resource plans. Requires electric utilities serving two million or more customers in the Commonwealth to file an integrated resources plan (IRP) by September 1 of each year. Currently, they are required to file an IRP at least every two years. The measure requires copies of the IRP to be provided to the Chairmen of the House and Senate Committees on Commerce and Labor and to the chairman of the Commission on Electric Utility Regulation. The measure also requires that IRPs evaluate compliance options to minimize effects on customer rates of pending federal environmental rules.

A BILL to amend and reenact § 56-599 of the Code of Virginia, relating to electric utilities; schedule for filing integrated resource plans.

15103732D

H.B. 2267 Virginia Solar Energy Development Authority.

Patron: Hugo


Virginia Solar Energy Development Authority. Creates the Virginia Solar Energy Development Authority to facilitate, coordinate, and support the development of the solar energy industry and solar-powered electric energy facilities in the Commonwealth. The Authority is directed to do so by developing programs to increase the availability of financing for solar energy projects, facilitate the increase of solar energy generation systems on public and private sector facilities in the Commonwealth, promote the growth of the Virginia solar industry, and provide a hub for collaboration between entities to partner on solar energy projects. The Authority will be composed of 11 members appointed by the Governor. Members may be representatives of solar businesses, solar customers, renewable energy financiers, state and local government solar customers, and solar research academics. The Authority is charged with, among other tasks, (i) identifying existing state and regulatory or administrative barriers to the development of the solar energy industry, (ii) collaborating with entities such as higher education institutions to increase the training and development of the workforce needed by the solar industry in Virginia, including industry-recognized credentials and certifications, (iii) applying to the U.S. Department of Energy for loan guarantees for such projects, and (iv) performing any other activities as may seem appropriate to increase solar energy generation in Virginia and the associated jobs and economic development and competitiveness benefits. At the recommendation of the Authority, the Director of the Department of Mines, Minerals and Energy may utilize nonstate-funded support to carry out any duties assigned to the Director. Funding for nonstate support may be provided by any source, public or private, for the purposes for which the Authority is created.

A BILL to amend the Code of Virginia by adding in Title 67 a chapter numbered 15, consisting of sections numbered 67-1500 through 67-1509, relating to the Virginia Solar Energy Development Authority.

15103853D

H.B. 2274 Electric utilities; cost recovery.

Patron: Kilgore

Electric utilities; cost recovery. Permits investor-owned electric utilities to recover from certain customers, through a rate adjustment clause, the projected and actual costs of designing, implementing, and operating State Corporation Commission-approved programs that accelerate the maintenance of distribution rights-of-way or otherwise enhance distribution reliability. The measure provides that these costs shall not be allocated to or recovered from certain classes of large customers.

A BILL to amend and reenact § 56-585.1 of the Code of Virginia, relating to electric utility ratemaking; rate adjustment clause for distribution reliability and system security.

15102980D

H.B. 2291 Clean Power Plan; state implementation plan, General Assembly approval.

Patron: O'Quinn

Clean Power Plan; state implementation plan; General Assembly approval. Requires the Department of Environmental Quality to receive approval from the General Assembly for a state implementation plan to regulate carbon dioxide emissions from existing power plants prior to submitting the plan to the U.S. Environmental Protection Agency for approval. The bill contains an emergency clause.

A BILL to require the Department of Environmental Quality to receive approval from the General Assembly for a state plan to regulate carbon dioxide emissions from existing stationary sources prior to submitting the state plan to the U.S. Environmental Protection Agency for approval.

15103681D

EMERGENCY

H.B. 2325 Utility pole attachments; broadband service providers.

Patron: Minchew

Utility pole attachments; broadband service providers. Requires each public utility, including electric cooperatives, to provide broadband service providers with neutral and nondiscriminatory access to any pole, duct, conduit, or right-of-way it owns or controls. The State Corporation Commission (SCC) is authorized to determine just and reasonable rates, terms, conditions, and costs for such attachments to its poles. The existing provisions that address pole attachments by telecommunications service providers and cable television systems are conformed to these new provisions for broadband service providers. The SCC is directed, in implementing the provisions of this measure, to rely on interpretations by the Federal Communications Commission and the federal judiciary of terms and concepts included in this measure that are used or defined in the pole attachments section of the federal Communications Act.

A BILL to amend and reenact § 56-466.1 of the Code of Virginia, relating to attachments to a public utility's poles by broadband service providers.

15103189D

H.B. 2333 Underground electrical line; pilot program.

Patron: Marshall, R.G.

Underground electrical line; pilot program. Establishes a pilot program for the placement of a new electrical line of 230 kilovolts or more to be placed underground. The bill establishes criteria for participation in the project. The costs of the project shall be recoverable through a rate adjustment clause and entirely assigned to the utility's Virginia jurisdictional customers.

A BILL to establish a pilot program to place an electrical line underground.

15103769D

H.B. 2334 Electrical transmission lines; underground placement.

Patron: Marshall, R.G.

Electrical transmission lines; underground placement. Requires the State Corporation Commission (SCC), when making a determination about the method of installation of an electrical transmission line of 138 kilovolts or more, to require that the line be installed underground if the SCC determines that the incremental costs of placing or installing the line underground are less than the damage to affected properties. The damage to affected properties is the aggregate of the net diminution in the fair market value of all parcels of real property located within one-half mile of any point on the proposed route or corridor resulting from the overhead installation of the line. If the SCC requires the line to be installed underground, the utility may recover the costs of the underground placement of the line through a rate adjustment clause that provides that such costs shall be assigned to its Virginia jurisdictional customers.

A BILL to amend and reenact §§ 56-46.1 and 56-265.2 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 56-265.2:2, relating to underground placement of electrical transmission lines.

15103770D

H.B. 2356 Underground transmission lines; pilot program.

Patron: Marshall, R.G.

Underground transmission lines; pilot program. Establishes a pilot program for the placement of three or more new electrical lines of 230 kilovolts or more to be placed underground. The bill establishes criteria for participation in the project. The costs of the projects shall be recoverable through a rate adjustment clause and entirely assigned to the utility's Virginia jurisdictional customers. The measure has an emergency clause.

A BILL to establish a pilot program to place an electrical line underground.

15104173D

EMERGENCY