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2021 SPECIAL SESSION I

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Senate Committee on Commerce and Labor

Chair: Richard L. Saslaw

Clerk: Hobie Lehman
Staff: Marvi Ali, Thomas Stevens
Date of Meeting: February 15, 2021
Time and Place: 15 minutes after Senate Adj./ Public can register at GA website
https://virginia-senate.granicus.com/ViewPublisher.php?view_id=3

H.B. 1754

Patron: Carter

Employment; retaliatory discharge of employee; Workers' Compensation. Prohibits an employer or other person from discharging or taking other retaliatory action against an employee if such action is motivated by the knowledge or belief that the employee has filed a claim or taken or intends to take certain actions under the Virginia Workers' Compensation Act. Currently, retaliatory discharges are prohibited only if the employer discharges an employee solely because the employee has taken or intends to take such an action.

A BILL to amend and reenact §§ 40.1-27.3 and 65.2-308 of the Code of Virginia, relating to employment; retaliatory discharge by employer; Workers' Compensation.

21100702D

H.B. 1807

Patron: Kilgore

Health maintenance organizations; insolvency. Updates provisions of the Code of Virginia related to insolvency procedures for health maintenance organizations (HMOs) that were inconsistent with the method to address insolvencies provided for members of the Virginia Life, Accident and Sickness Insurance Guaranty Association. HMOs became members of the Association following legislation passed during the 2018 Session.

A BILL to amend and reenact § 38.2-4310 of the Code of Virginia, relating to health maintenance organizations; insolvency.

21101071D

H.B. 1818

Patron: Heretick

Workers' compensation; presumption of compensability for certain diseases. Provides that the occupational disease presumption for death caused by hypertension or heart disease will apply for salaried or volunteer emergency medical services personnel who have at least five years of service and are operating in a locality that has legally adopted a resolution declaring that it will provide one or more of such presumptions. This bill incorporates HB 2080.

A BILL to amend and reenact § 65.2-402 of the Code of Virginia, relating to workers' compensation; presumption of compensation for certain diseases; applicable to salaried and volunteer emergency medical services personnel.

21103348D

H.B. 1822

Patron: Askew

Health insurance; cost-sharing payments for prescription asthma inhalers. Prohibits health insurance companies and other carriers from setting an amount exceeding $50 per 30-day supply of a tier one or tier two prescription asthma inhaler that a covered person is required to pay at the point of sale in order to receive a covered prescription asthma inhaler unless the carrier is prohibited from providing the additional benefits under state or federal law. The measure also prohibits a provider contract between a carrier or its pharmacy benefits manager and a pharmacy from containing a provision (i) authorizing the carrier's pharmacy benefits manager or the pharmacy to charge, (ii) requiring the pharmacy to collect, or (iii) requiring a covered person to make a cost-sharing payment for a covered prescription asthma inhaler in an amount that exceeds such limitation. The provisions apply with respect to health plans and provider contracts entered into, amended, extended, or renewed on or after January 1, 2022.

A BILL to amend the Code of Virginia by adding a section numbered 38.2-3407.15:6, relating to health insurance; cost-sharing payments for prescription asthma inhalers.

21101636D

H.B. 1829

Patron: Head

Health insurance; credentialing; health care providers. Provides that provisions requiring health insurers and other carriers to establish reasonable protocols and procedures for reimbursing a health professional for services provided while such professional's credentialing application is pending also apply to certain health maintenance organizations and to corporations operating dental or optometric plans.

A BILL to amend and reenact §§ 38.2-4319 and 38.2-4509 of the Code of Virginia, relating to health insurance; credentialing; health care providers.

21103204D

H.B. 1832

Patron: Subramanyam

Virginia Highway Corporation Act; alteration of certificate of authority; powers and duties of the State Corporation Commission. Requires any application for a transfer, extension, or amendment of a certificate of authority issued under the Virginia Highway Corporation Act to include information demonstrating the financial fitness of the entity applying to operate the roadway. The bill requires an applicant for a toll increase to provide a forward-looking analysis return that will be reviewed by the Department of Transportation that demonstrates that the proposed rates will be reasonable to the user in relation to the benefit obtained, not likely to materially discourage use of the roadway, and provide the operator no more than a reasonable return. The bill also prohibits the State Corporation Commission from authorizing a toll increase if these criteria are not met or if the proposed increase is for more than one year. The bill requires an operator to receive approval from the Commission prior to refinancing any existing debt.

A BILL to amend and reenact §§ 56-539 and 56-542 of the Code of Virginia, relating to Virginia Highway Corporation Act; alteration of certificate of authority; powers and duties of the State Corporation Commission.

21103413D

H.B. 1834

Patron: Subramanyam

Electric utilities; closure of carbon-emitting generating units. Requires each owner of a large carbon-emitting power plant to provide notice to relevant localities and state agencies about the decision to close the plant within 30 days of making such decision The bill requires localities in which such facilities are located, and planning district commissions in such localities, to conduct public hearings regarding the impending closure within six months of receipt of such notice. The bill requires the Division of Energy to maintain a public website listing the facilities subject to the requirements of the bill and their anticipated closure dates. As part of an integrated resource plan, the bill requires each utility to submit a facility retirement study for its carbon-emitting facilities and disclose the study to relevant localities and state agencies.

A BILL to amend and reenact § 56-599 of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 26 of Title 45.1 a section numbered 45.1-394.1, relating to public disclosure of electric generating facility closures; integrated resource plans.

21103066D

H.B. 1884

Patron: Sickles

Facilitated enrollment program. Directs the Department of Taxation to include space on the appropriate individual income tax forms for voluntary inclusion of personal and contact information. Such information may be shared with the Department of Medical Assistance Services, the Department of Social Services, or the Virginia Health Benefit Exchange, as applicable, for use in determining eligibility for certain programs. Beginning with tax year 2022, the Department of Taxation shall also include a checkoff box for taxpayers to indicate their consent to the sharing of tax information with the Department of Medical Assistance Services and the Department of Social Services. Beginning with tax year 2023, there shall also be included a checkoff box for taxpayers to indicate their consent to the sharing of tax information with the Virginia Health Benefit Exchange. The bill contains provisions allowing disclosure of such information in accordance with the act. The bill also directs the Virginia Health Benefits Exchange to, in consultation with other government agencies and stakeholders, identify systems, policies, and practices to facilitate eligibility determinations and enrollment.

A BILL to amend and reenact §§ 38.2-6505, 58.1-3, and 58.1-341.1 of the Code of Virginia, relating to facilitated enrollment program.

21101894D

H.B. 1892

Patron: Ayala

Property and casualty insurance form approval. Permits an insurer that receives approval of an insurance policy form or endorsement from the State Corporation Commission to use the form as soon as it is approved rather than waiting 30 days after the filing date to use it as is current law.

A BILL to amend and reenact § 38.2-317 of the Code of Virginia, relating to approval of property and casualty insurance policy forms and endorsements.

21101070D

H.B. 1896

Patron: Hudson

Essential health benefits; abortion coverage. Removes the prohibition on the provision of coverage for abortions in any qualified health insurance plan that is sold or offered for sale through a health benefits exchange established or operating in Virginia.

A BILL to amend and reenact § 38.2-3451 of the Code of Virginia, relating to health insurance; essential health benefits; abortion coverage.

21101445D

H.B. 1907

Patron: Sullivan

Electric utilities; advanced renewable energy buyers. Provides that certain accelerated renewable energy buyers that are customers of Dominion Energy Virginia and had subscribed to, as of March 1, 2020, a voluntary companion experimental tariff offering 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 is exempt from the 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 Dominion Energy Virginia. The exemption is based on the amount of Renewable Energy Certificates associated with the customer's renewable facilities agreements associated with the tariff offering in proportion to the customer's total electric energy consumption, on an annual basis.

A BILL to amend and reenact § 56-585.5 of the Code of Virginia, relating to electric utilities; Renewable Energy Certificates; contracts with accelerated renewable energy buyers; exemption from certain costs.

21100988D

H.B. 1914

Patron: Helmer

Electric utilities; period costs. Provides that in a triennial review proceeding, certain utility generation and distribution costs that are not proposed for recovery under various cost recovery mechanisms, at the State Corporation Commission's discretion, may be attributed to the test periods under review and deemed fully recovered or, if the utility has earned below a certain threshold, may be deferred for recovery over future periods. Under current law, such attribution is required unless the utility has earned below a certain threshold, in which case deferred recovery of the costs is required. The bill also eliminates provisions that limit any rate reduction ordered by the State Corporation Commission in the first triennial review of Dominion Energy Virginia after January 1, 2021, to $50 million in annual revenues and provides that in any triennial review, regardless of whether the Commission has ordered bill credits, the utility earned above its authorized rate of return during the test period under review, or the utility has made a request regarding any customer credit reinvestment offsets, the Commission may order any rate reduction it deems necessary and appropriate unless it finds that the resulting rates will not provide the utility with the opportunity to (i) fully recover its costs of providing its services and (ii) earn not less than a fair combined rate of return on its generation and distribution services. The provisions of the bill apply to the first triennial review of Dominion Energy Virginia conducted after January 1, 2021. This bill incorporates HB 1835.

A BILL to amend and reenact § 56-585.1 of the Code of Virginia, relating to electric utilities; triennial review; period costs; rate reductions.

21104073D

H.B. 1923

Patron: Ayala

Electric utilities; broadband capacity pilot program. Expands an existing pilot program under which Dominion Energy and Appalachian Power are authorized to provide or make available broadband capacity to Internet service providers in areas of the Commonwealth that are unserved by broadband to include municipal Internet service providers. The current program is restricted to nongovernmental Internet service providers.

A BILL to amend and reenact § 56-585.1:9 of the Code of Virginia, relating to electric utilities; broadband capacity pilot program.

21101272D

H.B. 1925

Patron: Kilgore


Virginia Brownfield and Coal Mine Renewable Energy Grant Fund and Program; handbook. Establishes the Virginia Brownfield and Coal Mine Renewable Energy Grant Fund and Program (the Fund and Program). The bill provides that no allocation of funds shall be made to the Fund or Program unless federal funds are available to cover the cost of such allocation. The Fund and Program shall be administered by the Department of Mines, Minerals and Energy for the purpose of awarding grants to renewable energy projects that are located on brownfields or previously coal mined lands, both defined in the bill. Grants are to be awarded on a basis of $500 per kilowatt of nameplate capacity from renewable energy sources that are located on previously coal mined lands and $100 per kilowatt of nameplate capacity from renewable energy sources that are located on brownfields.

No more than $10 million shall be awarded to any previously coal mined lands project and no more than $5 million to any single brownfield project. No more than $35 million shall be allocated per year by the grant program. Of the $35 million, $20 million shall be reserved for previously coal mined lands projects. If less than $20 million is distributed to such projects, the remaining funds may be reallocated to brownfield projects. The bill also provides that the Department shall, in consultation with stakeholders, develop a handbook for renewable energy and energy storage development on brownfields and previously coal mined lands. Finally, the bill requires the Department to submit an annual report regarding administration of the Fund and Program to the General Assembly. However, the annual report shall not be required if the Fund and Program are not funded.

A BILL to amend the Code of Virginia by adding in Title 67 a chapter numbered 18, consisting of a section numbered 67-1800, relating to Virginia Brownfield and Coal Mine Renewable Energy Grant Fund and Program; handbook.

21102691D

H.B. 1942

Patron: Kilgore

Public adjusters; continuing education. Provides for continuing education requirements for public adjusters and that the insurance continuing education board (the Board), appointed by the State Corporation Commission, is responsible for establishing and monitoring standards for such requirements. Currently, the Commission is given such responsibility and the Board is responsible for the continuing education requirements for other insurance agents and agencies. The bill maintains the current requirement that a public adjuster complete a minimum of 24 hours of approved credits, including three hours of ethics, on a biennial basis.

A BILL to amend and reenact §§ 38.2-1866, 38.2-1867, 38.2-1868.1, 38.2-1869, 38.2-1871, and 38.2-1873 of the Code of Virginia and to repeal § 38.2-1845.9 of the Code of Virginia, relating to public adjusters; continuing education.

21101074D

H.B. 1965

Patron: Bagby

State Air Pollution Control Board; low-emissions and zero-emissions vehicle program. Directs the State Air Pollution Control Board to implement a low-emissions and zero-emissions vehicle program for motor vehicles with a model year of 2025 and later. Regulations adopted by the Board to implement the program are exempt from the Administrative Process Act and shall not become effective prior to January 1, 2024. The bill also authorizes the State Corporation Commission to exclude sales related to such vehicles from certain energy efficiency calculations.

A BILL to amend and reenact § 10.1-1307 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 10.1-1307.04, relating to the State Air Pollution Control Board; low-emissions and zero-emissions vehicle standards.

21101651D

H.B. 1984

Patron: Hudson

Electric utilities; triennial review; rates of return. Provides that the State Corporation Commission, in any triennial review proceeding, including the first triennial review proceeding conducted after January 1, 2021, for Dominion Energy Virginia, may use any methodology it finds consistent with the public interest to determine fair rates of return on common equity for the utility's generation and distribution services. In any such triennial review, regardless of whether the utility earned above or below its authorized rate of return during the test period under review, the Commission also may order any increases or decreases to the utility's rates for generation and distribution that it deems necessary and appropriate, as long as the resulting rates provide the utility with the opportunity to (i) fully recover its costs of providing its services and (ii) earn an authorized rate of return.

A BILL to authorize the State Corporation Commission, in triennial review proceedings for a Phase II Utility, to determine fair rates of return on common equity for the utility's generation and distribution services and to order increases or decreases to the utility's rates for generation and distribution.

21101313D

H.B. 1985

Patron: Hurst

Workers' compensation; presumption of compensability for COVID-19. Establishes a presumption that COVID-19 causing the death or disability of health care providers is an occupational disease compensable under the Workers' Compensation Act. The bill provides that the COVID-19 virus is established by a positive diagnostic test for COVID-19, an incubation period consistent with COVID-19, and signs and symptoms of COVID-19 that require medical treatment. The bill provides that such presumption applies to any death or disability occurring on or after March 12, 2020, caused by infection from the COVID-19 virus, provided that for any such death or disability that occurred on or after March 12, 2020, and prior to December 31, 2021, the claimant received a positive diagnosis of COVID-19 from a licensed physician, after either a presumptive positive test or a laboratory-confirmed test for COVID-19, and presented with signs and symptoms of COVID-19 that required medical treatment. The bill provides that such presumptions do not apply to any person offered by his employer a vaccine for the prevention of COVID-19 unless the person's physician determines in writing that immunization would pose a significant risk to the person's health.

A BILL to amend and reenact § 65.2-402.1 of the Code of Virginia, relating to workers' compensation; presumption as to death or disability of health care providers from COVID-19.

21103301D

H.B. 1994

Patron: Murphy

Small agricultural generators; definition. Expands the definition of small agricultural generator to include any business operating a small agricultural generating facility that has been granted a manufacturer license as a distillery, limited distillery, brewery, limited brewery, winery, or farm winery. Under current law, small agricultural generators include only those businesses operating a small agricultural generating facility as part of an agricultural business. This bill incorporates HB 2215.

A BILL to amend and reenact § 56-594.2 of the Code of Virginia, relating to small agricultural generators; definition.

21103203D

H.B. 2008

Patron: Heretick

Health insurance; authorization of drug prescribed for the treatment of a mental disorder. Requires that any provider contract between a carrier and a participating health care provider with prescriptive authority, or its contracting agent, contain provisions that require, when a carrier has previously approved prior authorization for any drug prescribed for the treatment of a mental disorder listed in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders published by the American Psychiatric Association, no additional prior authorization can be required if (i) the drug is a covered benefit, (ii) the prescription does not exceed the U.S. Food and Drug Administration-labeled dosages, (iii) the prescription has been continuously issued for no fewer than three months, and (iv) the prescriber performs an annual review of the patient to evaluate the drug's continued efficacy, changes in the patient's health status, and potential contraindications. The bill provides that this requirement does not prohibit a carrier from requiring prior authorization for any drug that is not listed on its prescription drug formulary at the time the initial prescription is issued. The bill also provides that such provider contracts contain provisions requiring a carrier to honor a prior authorization issued by the carrier for a drug regardless if the drug is removed from the carrier's prescription drug formulary after the initial prescription for that drug is issued.

A BILL to amend and reenact § 38.2-3407.15:2 of the Code of Virginia, relating to health insurance; authorization of drug prescribed for the treatment of a mental disorder.

21103490D

H.B. 2032

Patron: Gooditis

Employment; domestic service. Provides that individuals who are engaged in providing domestic service are not excluded from employee protection laws and the Virginia Workers' Compensation Act.

A BILL to amend and reenact §§ 40.1-2, 40.1-49.3, 40.1-49.8, 65.2-101, and 65.2-305 of the Code of Virginia, relating to the employees providing domestic service; application of laws applicable to employee safety and workers' compensation.

21102809D

H.B. 2034

Patron: Hurst

Electric utilities; nonjurisdictional customers; third party power purchase agreements. Provides that for pilot programs under which an owner or operator of a renewable energy generation facility sells electricity to an eligible customer-generator through a third party power purchase agreement, both jurisdictional and nonjurisdictional customers may participate on a first-come, first-serve basis.

A BILL to amend and reenact § 1 of the first enactment of Chapters 358 and 382 of the Acts of Assembly of 2013, as amended by Chapter 803 of the Acts of Assembly of 2017, and as amended by Chapters 1187, 1188, 1189, 1193, 1194, and 1239 of the Acts of Assembly of 2020, relating to electric utilities; nonjurisdictional customers; third party power purchase agreements.

21101254D

H.B. 2036

Patron: Tran

Virginia Employment Commission; communications with parties; report. Authorizes the Virginia Employment Commission to send notices and other communications related to claims brought under the Virginia Unemployment Compensation Act through email or other electronic means in lieu of mail if a party to the claim so elects. The bill requires the Commission, if an electronic communication fails to be transmitted successfully, to send a new notice by first-class mail to the party's alternative address on record. The bill directs the Commission to report the number of unemployment insurance claimants who elect to receive communications electronically, and the effect of this change on Commission operations, by December 31, 2022.

A BILL to amend the Code of Virginia by adding in Article 2 of Chapter 1 of Title 60.2 a section numbered 60.2-121.1, relating to Virginia Employment Commission; communications with parties; report.

21103535D

H.B. 2037

Patron: Tran

Unemployment compensation; benefits; suitable work; benefits charges. Provides that, under specific conditions related to the COVID-19 virus, work will not be deemed suitable and benefits will not be denied to any otherwise eligible individual for refusing to accept new work if (i) the individual presents satisfactory evidence that such individual (a) has tested positive for COVID-19, (b) has been otherwise directed by a physician to quarantine due to COVID-19, or (c) is providing care for an immediate family member who has tested positive for COVID-19; or (ii) the individual has a reasonable belief, based on satisfactory evidence, that the workplace is unsafe because it does not meet governmental-mandated COVID-19 health and safety standards for the workplace, including standards issued by the U.S. Occupational Safety and Health Administration, the Department of Labor and Industry, or the Department of Health, or through an executive order or directive issued by the Governor. The bill provides, that for individuals who refuse to accept an offer of work based on such conditions, no benefits charges will be deemed to be the responsibility of the previous employer, unless the individual has refused an offer to return to work to his previous employer because the individual has a reasonable belief that the workplace is not in compliance with the Department of Labor and Industry's standards for the prevention of COVID-19. The provisions of the bill expire 30 days after the expiration or revocation of all states of emergency declared by the Governor related to the COVID-19 pandemic.

A BILL to amend and reenact §§ 60.2-528 and 60.2-618 of the Code of Virginia, relating to unemployment compensation; benefits; suitable work; benefits charges.

21103626D

H.B. 2040

Patron: Hudson


Unemployment compensation; failure to respond; continuation of benefits; repayment of overpayments. Provides that an employer shall be deemed to have established a pattern of failing to respond timely or adequately to written requests for information relating to claims if the Virginia Employment Commission determines that the employer has failed to respond timely or adequately to a written request for information relating to a claim on two or more occasions within a 48-month window and requires such employer to pay a penalty upon his second such failure to respond timely or adequately. Under current law, such pattern is established after four failures, and the penalty is assessed after the third failure. The bill provides that if an employer fails to respond timely or adequately to a written request by the Commission for information relating to a claim, the employer forfeits any appeal rights to that claim.

The bill provides that when a claimant has had a determination of initial eligibility for benefits, as determined by the issuance of compensation or waiting-week credit, payments shall continue, subject to a presumption of continued eligibility, until a determination is made that provides the claimant notice and an opportunity to be heard.

The bill provides that the Commission shall waive the obligation to repay any overpayment if (i) the overpayment was made without fault on the part of the individual and (ii) requiring repayment would be contrary to equity and good conscience. The Commission shall have authority to negotiate the terms of repayment for any overpayment where repayment is not forgiven. Overpayments shall not be considered "without fault" if the overpayment was the result of (i) a reversal in the appeals process, unless the employer failed to respond or timely respond or (ii) a programming, technological, or automated system error that results in erroneous payments to a group of individuals.

The bill also provides that the Commission shall notify each person with an unpaid overpayment of benefits that they may be entitled to a waiver of repayment and provide 30 days to request such a waiver. The bill applies to overpayments established for the week commencing March 15, 2020 through the week commencing June 26, 2021 and only to those overpayments that have not been fully or partially repaid. Finally, the bill allows the Commission to suspend or forego referring any overpayment to the collections process until June 30, 2022. A BILL to amend and reenact §§ 60.2-528.1, 60.2-619, and 60.2-633 of the Code of Virginia, relating to unemployment compensation; failure to respond; continuation of benefits; repayment of overpayments.

21104300D

H.B. 2048

Patron: Bourne


Electric utility regulation; purchasing from competitive suppliers. Authorizes individual retail customers of electric energy to purchase electric energy provided 100 percent from renewable energy from any licensed competitive supplier of electric energy, including any incumbent electric utility. Currently, such customers may purchase electric power from such suppliers, other than an incumbent electric utility that is not the incumbent electric utility serving the exclusive territory in which the customer is located, only if their incumbent electric utility does not offer an approved tariff for electric energy provided 100 percent from renewable energy. The measure also provides that a cooperative utility customer eligible to take service under a tariff for electric energy provided 100 percent from renewable energy is prohibited from purchasing electric energy provided 100 percent from renewable energy from a licensed supplier, except such customer is authorized to continue purchasing renewable energy pursuant to the terms of a power purchase agreement in effect on the date the cooperative serving it filed with the Commission such tariff for electric energy provided 100 percent from renewable energy for the duration of such agreement.

The measure requires that, within three months after the enactment of this act or within three months after beginning to offer a 100 percent renewable energy product to residential customers, whichever is later, licensed competitive suppliers that offers 100 percent renewable energy to residential customers in the service territory of Dominion Energy Virginia or Appalachian Power, to submit a proposal to the State Corporation Commission for consideration and approval to offer discounted service to low-income customers. The measure requires such proposal to include a 100 percent renewable product to be offered to a minimum number of low-income customers at a rate ten percent lower than the incumbent electric utility’s standard residential rate for non-renewable supply service for a minimum initial term of twelve months.

A BILL to amend and reenact § 56-577 of the Code of Virginia, relating to electric utility regulation; purchasing from competitive suppliers.

21101268D

H.B. 2049

Patron: Bourne

Electric utilities; customer credit reinvestment offsets. Eliminates customer credit reinvestment offsets under which a utility is allowed, upon request, to reduce or eliminate amounts of overearnings that otherwise would be required to be credited to customers by applying a customer credit reinvestment offset for expenses on new solar and wind generation facilities and electric distribution grid transformation projects.

A BILL to amend and reenact § 56-585.1 of the Code of Virginia, relating to electric utilities; customer credit reinvestment offsets.

21102818D

H.B. 2160

Patron: Tran


Electric utilities; fair rate of return; customer bill credits. Provides that the State Corporation Commission may, in any triennial review, establish a range above or below the authorized rate of return such that if the combined rate of return on common equity earned by the generation and distribution services is within that range, such combined return is not to be considered either excessive or insufficient, respectively. The bill provides that during a triennial review period, if a utility's earned return on its generation and distribution services falls below that range due to certain costs, the Commission is required to authorize deferred recovery for such costs. Additionally, if during a triennial review period, if a utility's earned return on its generation and distribution services falls below that range due to revenue reductions related to energy efficiency measures or other programs, the Commission is required to order an increase to the utility's rates. The bill requires that the Commission direct 100 percent of the amount that a utility earns over its fair rate of return to customers' bills. Under current law, the Commission is required to direct 70 percent of any earnings that were more than a certain percentage above the utility's fair rate of return to customers' bills. The bill provides that if, during a triennial review period, a utility has earned above its fair combined rate of return, the Commission is required to order reductions to the utility's rates it finds appropriate. Under current law, the Commission is only required to order reductions to the utility's rates if the utility earned more than a certain percentage above its fair combined rate of return. The provisions of the bill apply to all triennial reviews, including the first triennial review of Dominion Energy Virginia conducted after January 1, 2021.

A BILL to amend and reenact § 56-585.1 of the Code of Virginia, relating to electric utilities; triennial review; fair rate of return; customer bill credits.

21102815D

H.B. 2200

Patron: Jones


Electric utilities; triennial review. Makes various changes to procedures under which the State Corporation Commission reviews the earnings and sets the rates of investor-owned incumbent electric utilities. The bill requires the Commission, in determining a fair rate of return on common equity for an investor-owned utility, to consider the average of either (i) the returns on common equity reported to the Securities and Exchange Commission for the three most recent annual periods for which such data is available by not less than a majority of a selected peer group of the utility or (ii) the authorized returns on common equity that are set by the applicable regulatory commissions for the same selected peer group. Under current law, the Commission is required to set such return not lower than either such average.

The bill provides that in a triennial review proceeding, certain utility generation and distribution costs that are not proposed for recovery under various cost recovery mechanisms, at the Commission's discretion, may be attributed to the test periods under review and deemed fully recovered or, if the utility has earned below a certain threshold, may be deferred for recovery over future periods. Under current law, such attribution is required unless the utility has earned below a certain threshold, in which case deferred recovery of the costs is required. The bill requires the Commission to direct that 100 percent of the amount of a utility's earnings above a certain threshold be credited to customers' bills. Under current law, the Commission is required to direct that 70 percent of such overearnings be credited to customers' bills.

The bill provides that if revenue reductions related to energy efficiency measures or other programs cause a utility to earn below a certain threshold, or if for reasons other than revenue reductions the utility earns below a certain threshold, the Commission may order increases to the utility's rates for generation and distribution services necessary to recover such revenue reductions. Under current law, the Commission is required to order such an increase. The bill eliminates provisions that limit any rate reduction ordered by the Commission in the first triennial review of Dominion Energy Virginia after January 1, 2021, to $50 million in annual revenues. The bill provides that the Commission may determine that certain capital investment amounts by a utility may offset any customer bill credit amounts. Under current law, such the Commission is required to determine that such investments offset customer bill credit amounts. The bill provides that in any triennial review the Commission may order any rate increase or decrease to a utility's rates for generation and distribution services it deems necessary and appropriate, so long as the resulting rates provide the utility with the opportunity to fully recover its costs and earn an authorized rate of return on its generation and distribution services. The provisions of the bill apply to all triennial reviews, including the first triennial review of Dominion Energy Virginia conducted after January 1, 2021. This bill incorporates HB 2057.

A BILL to amend and reenact § 56-585.1 of the Code of Virginia, relating to electric utilities; triennial review.

21104266D

H.B. 2207

Patron: Jones

Workers' compensation; presumption of compensability for COVID-19. Establishes a presumption that COVID-19 causing the death or disability of firefighters, emergency medical services personnel, law-enforcement officers, and correctional officers is an occupational disease compensable under the Workers' Compensation Act. The bill provides that the COVID-19 virus is established by a positive diagnostic test for COVID-19, an incubation period consistent with COVID-19, and signs and symptoms of COVID-19 that require medical treatment. The bill provides that such presumption applies to any death or disability occurring on or after March 12, 2020, caused by infection from the COVID-19 virus, provided that for any such death or disability that occurred on or after March 12, 2020, and prior to December 31, 2021, the claimant received a diagnosis of COVID-19 from a licensed physician, after either a presumptive positive test or a laboratory confirmed test for COVID-19, and presented with signs and symptoms of COVID-19 that required medical treatment.

A BILL to amend and reenact § 65.2-402.1 of the Code of Virginia, relating to workers' compensation; presumption as to death or disability from COVID-19.

21100861D

H.B. 2219

Patron: Hodges

Pharmacies; freedom of choice. Provides that no insurance carrier, corporation providing preferred provider subscription contracts, or health maintenance organization providing health care plans or its pharmacy benefits manager shall prohibit a covered individual from selecting the pharmacy of his choice to furnish specialty pharmaceutical benefits under the covered individual's policy. The bill provides that no pharmacy that meets the terms and conditions of participation shall be precluded from obtaining a direct service agreement or participating provider agreement and that any request for such agreement by a pharmacy shall be acted upon by a carrier, corporation, or organization or its pharmacy benefits manager within 60 days of receiving the request.

A BILL to amend and reenact §§ 38.2-3407.7, 38.2-4209.1, and 38.2-4312.1 of the Code of Virginia, relating to pharmacies; freedom of choice.

21103810D

H.B. 2250

Patron: Kory

Humane Cosmetics Act; civil penalties. Prohibits a cosmetics manufacturer from: (i) conducting or contracting for cosmetic animal testing that occurs in the Commonwealth on or after January 1, 2022, (ii)manufacturing or importing for profit into the Commonwealth any cosmetic or ingredient thereof, if the cosmetics manufacturer knew or reasonably should have known that the cosmetic or any component thereof was developed or manufactured using cosmetic animal testing that was conducted on or after January 1, 2022; or (iii) beginning July 1, 2022, selling or offering for sale within the Commonwealth any cosmetic, if the cosmetics manufacturer knows or reasonably should know that the cosmetic or any component thereof was developed or manufactured using cosmetic animal testing that was conducted on or after January 1, 2022. Violations are subject to a civil penalty of up to $5,000 and an additional $1,000 for each day the violation continues. The bill preempts any local regulation on cosmetic animal testing.

 A BILL to amend the Code of Virginia by adding in Title 59.1 a chapter numbered 52, consisting of sections numbered 59.1-571 through 59.1-574, relating to Humane Cosmetics Act; civil penalties.

21103784D

H.B. 2269

Patron: Heretick

Revenue share for solar energy projects and energy storage systems. Allows localities to assess a revenue share of up to $1400 per megawatt on energy storage systems. The bill provides that on July 1, 2026, and every five years thereafter, the maximum amount of the revenue share that a locality may impose on certain solar energy projects and energy storage systems shall be increased by 10 percent. No increase may be made to any revenue share imposed by a locality on a solar energy project or energy storage systems for which an application has been filed with the locality and such application has been approved prior to January 1, 2021.

 A BILL to amend and reenact § 58.1-2636 of the Code of Virginia, relating to revenue share for solar energy projects and energy storage systems.

21103653D

H.B. 2282

Patron: Sullivan


State Corporation Commission; transportation electrification; utility recovery of certain costs; report. Directs the State Corporation Commission (Commission) to report on policy proposals to accelerate transportation electrification in the Commonwealth. The bill requires the Commission to submit, no later than May 1, 2022, a report to the General Assembly recommending policy proposals that could govern public electric utility programs to accelerate widespread transportation electrification in the Commonwealth. The bill requires the Commission to utilize a public process, facilitated by a third party with expertise in transportation electrification, in which the Commission, the Department of Environmental Quality, the Department of Mines, Minerals and Energy, the Department of Transportation, and appropriate stakeholders participate. The bill requires that the Commission, in developing its policy recommendations, evaluate (i) areas where utility or other public investment may best complement private efforts to effectively deploy charging infrastructure, with particular focus on low-income, minority, and rural communities; (ii) how smart growth policies can complement and enhance the Commonwealth's transportation electrification goals; (iii) how utility programs, investments, or incentives to customers or third parties to facilitate the deployment of charging infrastructure and related upgrades can support or enhance (a) statewide transportation electrification, including electrification of public transit; (b) the electrification of medium-duty and heavy-duty vehicles, school buses, vehicles at ports and airports, personal vehicles, and vehicle fleets; (c) increased access to electric transportation and improved air quality in low-income and medium-income communities; (d) achievement of existing energy storage targets; (e) improvements to the distribution grid or to specific sites necessary to accommodate charging infrastructure; and (f) customer education and outreach programs that increase awareness of such programs and the benefits of transportation electrification. The bill requires that the report also address whether and how transportation electrification can, under current law, (a) reduce total ratepayer rates and costs; (b) assist in grid management and more efficient use of the grid, in a manner that does not increase peak demand, through time-of-use rates, managed charging programs, vehicle-to-grid programs, or other alternative rate designs; (c) utilize increased generation from renewable energy resources; and (d) reduce fueling costs for vehicles. The bill requires that, to the extent that the Commission and stakeholders conclude that transportation electrification cannot currently deliver these benefits, the report include public policy recommendations.

Additionally, the bill requires, beginning July 1, 2021, that any approved costs of any investor-owned electric utility associated with investment in transportation electrification be recovered only through the utility's rates for generation and distribution, prohibits recovery of such costs through a rate adjustment clause, and provides that such costs are not eligible for a customer credit reinvestment offset.

A BILL to direct the State Corporation Commission to recommend policy proposals to accelerate transportation electrification in the Commonwealth; report.

21102349D

H.B. 2304

Patron: Tyler

Provision of broadband capacity by Phase I or Phase II electric utilities. Makes permanent the pilot program under which a Phase I or Phase II electric utility is permitted to petition the State Corporation Commission to provide broadband capacity to unserved areas of the Commonwealth. The bill expands the program to allow for the participation of municipalities and government-owned broadband authorities. The bill provides that investor-owned electric utilities may recover costs of and revenue generated from providing broadband capacity that serves as an electric grid transformation project in areas unserved by broadband, as defined in the bill. The bill also consolidates the State Corporation Commission petition approval process into one hearing.

A BILL to amend and reenact § 56-585.1:9 of the Code of Virginia, relating to provision of broadband services by investor-owned electric utilities.

21102868D

H.B. 2330

Patron: Kory

Electric utilities; Percentage of Income Payment Program. Requires the Department of Social Services (the Department), in consultation with, as it deems necessary, the Department of Housing and Community Development, to adopt rules or establish guidelines for the adoption, implementation, and general administration of the Percentage of Income Payment Program (PIPP) and the Percentage of Income Payment Fund (Fund). The bill requires the PIPP to commence no later than March 1, 2022.The bill establishes the Fund for the purposes of implementing and administering the PIPP and related programs. The bill requires Dominion Energy Virginia and American Electric Power to cooperate with the requests of the Department and the State Corporation Commission (the Commission) in the implementation and administration of the PIPP. The Commission is required to promulgate any rules necessary to ensure that funds collected from each utility's universal service fee are directed to the Fund. The bill requires the Commission to initiate proceedings to provide for an annual true-up of the universal service fee within 60 days of the commencement of the PIPP and on an annual or semiannual basis thereafter. The bill provides that the PIPP may utilize existing energy efficiency or related programs approved by the Commission. The bill authorizes the Department to determine what deficiencies exist in existing and available federal, state, local, or nonprofit programs to meet energy reduction obligations and to (i) make recommendations to the Commission or the utilities regarding such deficiency analysis and (ii) develop programs to address such deficiencies.

The bill authorizes the Department to develop and implement non-utility energy efficiency programs and other programs for the reduction of energy use for eligible participants in the PIPP, provided that the Department engage in a stakeholder process and undertake a cost-benefit analysis in the development of any such programs. The bill requires that the Commission to make adjustments to the universal service fee as necessary to provide adequate funding for such programs. Additionally, the bill requires the Commission to initiate any proceedings to establish new energy efficiency or low-income programs proposed by a utility as necessary to provide service to PIPP participants over a timeframe to be determined by the Commission. The bill requires the Commission to issue an order providing for the non-bypassable universal service fee as soon as practicable following the bill's effective date.

A BILL to amend and reenact §§ 56-576 and 56-585.6 of the Code of Virginia, relating to electric utilities; Percentage of Income Payment Program.

21103641D

H.B. 2332

Patron: Sickles

Commonwealth Health Reinsurance Program. Requires the State Corporation Commission (Commission)  to establish, upon approval of a state innovation waiver request pursuant to § 1332 of the Affordable Care Act, a reinsurance program, known as the Commonwealth Health Reinsurance Program (the Program).  The bill provides that the Program is funded through federal funding provided under the state innovation waiver, an assessment on carriers, and state appropriations. The bill requires that the Commission impose an annual assessment of one percent of a carrier's net written premiums on entities authorized to issue individual and group health insurance overage including grandfathered plans but excluding plans offered in the small group market. The bill provides requirements for payment parameters, data submissions, recordkeeping, reporting, and audits of health carriers. The bill requires the Secretary of Health and Human Resources to convene a work group to develop recommendations for developing a state-based subsidy program to increase affordability of health plans to individuals and to increase enrollment in the Virginia Health Benefit Exchange. The bill requires the Commission to evaluate the program following its second year of operation.The provisions of the bill, other than the requirements that the Commission apply for the state innovation waiver, will become effective 30 days after notice of approval of the waiver request.

 A BILL to amend and reenact §§ 38.2-4214 and 38.2-4319 of the Code of Virginia and to amend the Code of Virginia by adding in Title 38.2 a chapter numbered 66, consisting of sections numbered 38.2-6600 through 38.2-6607, relating to the Commonwealth Health Reinsurance Program; established; special fund established; assessment; federal waiver application.

21104420D