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2016 SESSION

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Senate Committee on Commerce and Labor
Subcommittee Study Continued Legislation Relating to Electric Energy

Stuart, Cosgrove, Black, Dance, Wagner

Clerk: John Garrett
Staff: Frank Munyan
Date of Meeting: June 8, 2016
Time and Place: Wednesday, June 8, 2016 - 9 AM, Senate Room B, GAB

H.B. 352 Electric utilities; energy efficiency programs.

Patron: Ware

Electric utilities; energy efficiency programs. Requires the State Corporation Commission (SCC) to determine that an energy efficiency program proposed by an electric utility is in the public interest if the net present value of the benefits exceeds the net present value of the costs as determined by not less than three of the following benefit cost tests: (i) the Total Resource Cost Test; (ii) the Utility Cost Test (also referred to as the Program Administrator Test); (iii) the Participant Test; and (iv) the Ratepayer Impact Measure Test. The measure deletes the current requirement that the SCC analyze all four tests and deletes a provision prohibiting the SCC from rejecting an energy efficiency program solely on the basis of the results of a single test.

A BILL to amend and reenact § 56-576 of the Code of Virginia, relating to electric utilities; energy efficiency programs.

16101626D

H.B. 452 Virginia Energy Storage Consortium; created, report.

Patron: Hope

Virginia Energy Storage Consortium. Establishes the Virginia Energy Storage Consortium as a political subdivision of the Commonwealth for the purpose of positioning the Commonwealth as a leader in research, development, commercialization, manufacturing, and deployment of energy storage technology. The powers of the Consortium include (i) promoting collaborative efforts among Virginia's public and private institutions of higher education in research, development, and commercialization efforts related to energy storage; (ii) monitoring relevant developments nationally and globally; and (iii) identifying and working with the Commonwealth's industries and nonprofit partners. Staff support shall be provided by the Department of Mines, Minerals and Energy. The measure expires on July 1, 2021.

A BILL to amend the Code of Virginia by adding in Title 67 a chapter numbered 16, consisting of sections numbered 67-1600 through 67-1608, relating to the Virginia Energy Storage Consortium.

16103358D

H.B. 575 Energy efficiency programs; total resource cost test.

Patron: Sullivan

Energy efficiency programs; total resource cost test. Defines the "total resource cost test" as a test to determine if the benefit-cost ratio of a proposed energy efficiency program or measure is greater than one. The measure defines "benefit-cost ratio" as the ratio of the net present value of the total benefits of a program or measure, including savings and non-energy benefits, to the net present value of the total incremental costs of implementing that program or measure as calculated over the lifetime of the measures implemented thereunder. An energy efficiency program or measure that meets the total resource cost test is declared to be in the public interest. The measure provides that an energy efficiency program or measure that fails the total resource cost test shall be reviewed by the State Corporation Commission (SCC) under other tests for approving energy efficiency. The total resource cost test is one of the four tests used by the SCC in assessing electricity and natural gas utility energy efficiency programs.

A BILL to amend and reenact §§ 56-576 and 56-600 of the Code of Virginia, relating to electric and natural gas utilities; energy efficiency programs.

16103865D

H.B. 576 Electric and natural gas utilities; energy efficiency goals established, report.

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 2031 and thereafter, with interim goals that start at 0.25 percent for 2017-2018 and increase in biennial increments of 0.25 percent until 2031. Gas utilities are required to achieve the goal of one percent savings by 2031 and thereafter, with interim goals that start at 0.125 percent for 2017-2018 and increase in biennial increments of 0.125 percent until 2031. The utilities are required to submit energy efficiency plans with the State Corporation Commission (SCC). The SCC (i) shall order changes to a plan submitted by a utility that does not demonstrate that the utility will achieve incremental annual energy efficiency goals; (ii) shall require utilities to commence compliance efforts with the incremental annual energy efficiency goals during calendar year 2017, though it may adjust the goal for 2017 if appropriate to address a partial year of implementation; (iii) may design performance incentives that reward utilities for exceeding efficiency goals; (iv) shall require utilities to report annually to the SCC on their efforts and progress in meeting the incremental annual energy efficiency goals; and (v) shall submit reports regarding compliance with the requirements of the incremental annual energy efficiency goals every five years.

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.

16103886D

H.B. 618 Distributed electric generation; establishment of community solar gardens.

Patron: Krizek

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 29, consisting of sections numbered 56-614 through 56-619, relating to distributed solar generation facilities; community solar gardens.

16102786D

H.B. 908 Electrical transmission lines; SCC to consider impact on historic resources.

Patron: Minchew

Electrical transmission lines; effect on historic resources. Requires the State Corporation Commission (SCC), prior to approving the construction of any electrical transmission lines of 138 kV or more, to determine that the corridor or route chosen for the line will avoid any adverse impact on the scenic assets, historic resources, and environment of the area concerned. If the SCC determines that no route or corridor exists that can avoid any such adverse impact, the SCC is directed to choose the corridor or route that minimizes such adverse impacts to the greatest extent reasonably practicable. Currently, the SCC is required to determine that such a line's corridor or route will reasonably minimize adverse impact on the scenic assets, historic districts, and environment of the area concerned.

A BILL to amend and reenact § 56-46.1 of the Code of Virginia, relating to electrical transmission lines; State Corporation Commission to consider impact on historic resources.

16102632D

H.B. 1285 Community energy programs; investor-owned electric utilities and electric cooperatives to establish.

Patron: Minchew

Community energy programs. Authorizes investor-owned electric utilities and electric cooperatives to establish a community energy program with a community subscriber organization. Under a community energy program, community subscribers and community subscriber organizations may participate in community net energy metering with mutually agreed community subscriber payment rates and community subscriber credit rates. A community subscriber (i) acquires a subscription that entitles him to a proportional interest in a renewable energy generation facility and (ii) receives a credit on his electric utility bill based on the community subscriber credit rate multiplied by his share of the facility's output.

A BILL to amend the Code of Virginia by adding a section numbered 56-594.2, relating to community energy programs.

16104410D

H.B. 1286 Distributed and renewable generation of electric energy; net energy metering.

Patron: Minchew

Distributed and renewable generation of electric energy; net energy metering and third party purchase agreements. Exempts generators that are not organized as a public service company and that provide electric energy from renewable energy to retail customers under certain power purchase agreements from being defined as a public utility or a supplier. The measure authorizes retail customers to purchase electric energy from such generators provided that the renewable energy electricity generation source is located on property owned, leased, or otherwise controlled by the retail customer or any affiliated person. The net energy metering programs are amended to remove the one percent cap relative to total utility sales for net metered facilities. The State Corporation Commission is directed to establish separate net energy metering programs for eligible multi-meter customer-generators, who are customers that own or operate, or contracts with another person to own or operate, or both, a renewable energy generating facility that uses as its sole energy source solar power, wind power, or aerobic or anaerobic digester gas, does not have an aggregate generation capacity of more than one megawatt, and is used primarily to provide energy to metered accounts of the customer. The measure amends the Commonwealth's energy policy by adding the goals of encouraging private sector distributed renewable energy, increasing security of the electricity grid by supporting distributed renewable energy projects, and augmenting the exercise of private property rights by landowners desiring to generate their own energy from renewable energy sources on their lands.

A BILL to amend and reenact §§ 56-265.1, 56-576, 56-577, 56-594, and 67-102 of the Code of Virginia, relating to the regulation of electric utilities; distributed and renewable energy generation; power purchase agreements with non-utilities; net energy metering programs; Commonwealth's energy policy.

16103518D

S.B. 139 Electric utility regulation; agricultural net energy metering.

Patron: Edwards

Electric utility regulation; agricultural net energy metering. Allows an otherwise-eligible agricultural customer-generator to participate in an electric utility's net energy metering program if it is to be served by multiple meters located on one parcel or on multiple adjacent parcels. Currently, such an agricultural customer-generator may be served by multiple meters that are located at separate but contiguous sites.

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

16101876D

S.B. 140 Electric utilities; net energy metering, standby charges.

Patron: Edwards

Electric utilities; net energy metering; standby charges. Increases the size of electrical generating facilities operated by residential or agricultural net energy metering customers that are subject to a monthly standby charge from those with a capacity of 10 kilowatts to those with a capacity of 20 kilowatts.

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

16101877D

S.B. 403 Virginia Energy Storage Consortium: created, terms of Board members, report.

Patron: Ebbin

Virginia Energy Storage Consortium. Establishes the Virginia Energy Storage Consortium as a political subdivision of the Commonwealth for the purpose of positioning the Commonwealth as a leader in research, development, commercialization, manufacturing, and deployment of energy storage technology. The powers of the Consortium include (i) promoting collaborative efforts among Virginia's public and private institutions of higher education in research, development, and commercialization efforts related to energy storage; (ii) monitoring relevant developments nationally and globally; and (iii) identifying and working with the Commonwealth's industries and nonprofit partners. The Consortium shall be governed by a board of directors of 15 nonlegislative citizen members appointed by the Governor, who shall initially serve staggered terms. Staff support shall be provided by the Department of Mines, Minerals and Energy. The measure expires on July 1, 2021.

A BILL to amend the Code of Virginia by adding in Title 67 a chapter numbered 16, consisting of sections numbered 67-1600 through 67-1608, relating to the Virginia Energy Storage Consortium.

16103876D

S.B. 779 Electric utility regulation; net energy metering.

Patron: Stuart

Electric utility regulation; net energy metering. Authorizes any eligible customer-generator or eligible agricultural customer-generator to enter into a contract to sell any net metering eligible energy exceeding the eligible customer-generator's or eligible agricultural customer-generator's own energy demand for any monthly period to any other retail customer within the same service territory of the incumbent utility. The measure increases the maximum size of the aggregate generating facility that qualifies for (i) the agricultural net energy metering program from 500 kilowatts to two megawatts, (ii) the net metering program for residential eligible customer-generators from 20 kilowatts to 50 kilowatts, and (iii) the net metering program for nonresidential eligible customer-generators from one megawatt to two megawatts. The measure replaces the existing provision that allows an eligible agricultural customer-generator to be served by multiple meters that are located at separate but contiguous sites with a provision that allows such a customer-generator to be served by multiple meters that are located on one parcel or on multiple adjacent parcels. The measure repeals the provision that caps the size of a generation facility of an eligible customer-generator at his expected annual energy consumption. The measure also (a) replaces the existing provision that provides that an eligible customer-generator or eligible agricultural customer-generator will be paid for excess electricity at the rate that is provided for such purchases in a net metering standard contract or tariff approved by the State Corporation Commission with a requirement that they will be paid at a rate equal to the customer-generator's approved customer rate schedule plus all applicable riders and (b) repeals the provision that limits the net energy metering programs to one percent of each electric distribution company's adjusted Virginia peak-load forecast for the previous year.

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

16104820D