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SENATE BILL NO. HOUSE BILL NO.

1 A BILL to provide for the regulation of a Phase II Utility and competitive service providers operating

2 in the service territory of such a utility.

3 Be it enacted by the General Assembly of Virginia:

4 1. § 1. That, notwithstanding any provision of the Code of Virginia or any uncodified act of the General

5 Assembly:

6 1. It is hereby declared to be the policy of the Commonwealth that each Phase II Utility, as

7 defined in subdivision A 1 of § 56-585.1 of the Code of Virginia (Phase II Utility), and each competitive

8 service provider operating within the certificated service territory in the Commonwealth of a Phase II

9 Utility, be net zero by 2045 with respect to emissions of carbon dioxide resulting from the generation of

10 electricity;

11 2. Nothing in this act shall require any action that threatens the reliability of electric service in

12 the Commonwealtl~;

13 3. By 2030, not less than 55 percent of the electricity generated by a Phase II Utility or provided

14 by a competitive service provider operating within the certificated service territory in the

15 Commonwealth of a Phase II Utility shall be produced from carbon-free sources, including in-state

16 nuclear, wind, solar, storage including pump storage, and wind-powered facilities sited off the coast of

17 the Commonwealth;

18 4. By 2036, not less than 65 percent of the electricity generated by a Phase II Utility or provided

19 by a competitive service provider oUerating within the certificated service territory in the

20 Commonwealth of a Phase II Utility shall be produced from carbon-free sources, including in-state

21 nuclear, wind, solar, storage including pump storage, and wind generated off the coast of the

22 Commonwealth;

23 5. The State Corporation Commission (the Commission) shall develop expedited procedures for

24 the review and approval of renewable energy and storage projects with a capacity not exceeding 200

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25 megawatts and shall report to the General Assembly by January 1, 2021, on such procedures;

26 6. The costs incurred by a Phase II Utility of (i) developing, constructing, and operating wind-

27 powered electric generation facilities sited off the coast of the Commonwealth and (ii) compliance with

28 the requirements of the Regional Greenhouse Gas Initiative shall be allocated to all customers of the

29 Phase II Utility in the Commonwealth as a non-bypassable charge, irrespective of the generation supplier

30 of any such customer;

31 7. Each Phase II Utility shall submit to the Commission an annual plan and petition for new solar

32 generation, which shall include utility-owned facilities and agreements to purchase power from third

33 parties. The Commission shall rule on each such petition for approval, including cost recovery, within 90

34 days. In its rulings, the Commission shall give great weight to the Commonwealth's clean energy and net

35 zero carbon dioxide emissions policy;

36 8. Notwithstanding the provisions of subdivision A 6 of § 56-585.1 of the Code of Virginia and §

37 56-596.1 of the Code of Virginia that state that the construction or purchase by 2028 by a utility of one

38 or more generation facilities with an aggregate rated capacity that does not exceed 5,000 megawatts that

39 use energy derived from sunlight or from wind and are located in the Commonwealth or off the

40 Commonwealth's Atlantic shoreline is in the public interest, the Commission shall find that the

41 construction or purchase by 2036 by a Phase II Utility of one or more generation facilities with an

42 aggregate rated 'capacity that does not exceed 12,000 megawatts that use energy derived from sunlight or

43 from wind and are located in the Commonwealth or off the Commonwealth's Atlantic shoreline is in the

44 public interest;

45 9. Notwithstanding the provisions of subsection B § 56-585.1:4 of the Code of Virginia that state

46 that the construction or purchase by a public utility of one or more solar or wind generation facilities

47 located in the Commonwealth or off the Commonwealth's Atlantic shoreline, each having a rated

48 capacity of less than one megawatt, and having in the aggregate a rated capacity that does not exceed

49 500 megawatts, is in the public interest, the Commission shall find that the construction or purchase by a

50 Phase II Utility of one or more solar or wind generation facilities located in the Commonwealth or off
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51 the Commonwealth's Atlantic shoreline, each having a rated capacity of less than two megawatts, and

52 having in the aggregate a rated capacity that does not exceed 1,000 megawatts, is in the public interest;

53 10. Not more than 70 percent of the generation capacity of solar or wind generation facilities

54 described in subdivisions 7 and 8 shall be permitted to be owned by the Phase II Utility at the time of the

55 facilities' construction;

56 11. Notwithstanding the provisions of subdivision A 6 of § 56-585.1 of the Code of Virginia that

57 state that construction, purchasing, or leasing activities for autility-owned and utility-operated

58 generating facility or facilities utilizing energy derived from offshore wind with an aggregate capacity of

59 not more than 16 megawatts by 2028 are in the public interest, the Commission shall find that

60 construction, purchasing, or leasing activities by a Phase II Utility by 2028 for generation facilities that

61 use enemy derived from wind and are located off the Commonwealth's Atlantic shoreline with an

62 aggregate rated capacity that does not exceed 3,000 megawatts is in the pxblic interest;

63 12. Notwithstanding the provisions of § 56-596.2 of the Code of Virginia that state that a Phase II

64 Utility shall design, implement, and operate energy efficiency programs of which programs at least five

65 percent shall benefit low-income, elderly, and disabled individuals at a projected cost of $870 million for

66 the period beginning July 1, 2018, and ending July 1, 2028, each Phase ZI Utility shall design,

67 implement, and operate energy efficiency programs that are primarily focused on reducing bills for low-

68 income and moderate-income residential customers at a projected cost of $1.67 billion for the period

69 beginning July 1, 2018, and ending July 1, 2036;

70 13. Notwithstanding the provisions of § 56-585.1:2 of the Code of Virginia that require each

71 Phase II Utility to spend no less than $13 million annually until 2028 on energy assistance and

72 weatherization for low-income, elderly, and disabled individuals in its service territories in the

73 Commonwealth, each Phase II Utility shall spend no less than $13 million annually until 2036 on such

74 programs;

75 14. The Commission shall find that the construction or purchase by a Phase II Utility of new

76 energy storage facilities or capacity, including battery storage and pumped storage hydro, with a

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77 capacity not exceeding 2,500 megawatts through 2036 is in the public interest;

78 15. Each Phase II Utility shall file a supplement to its 2020 integrated resource plan that is due in

79 May 2020, and shall include information in each future integrated resource plan, that addresses how it

80 plans to meet the goals set in this act and by other requirements of law, including how it plans to be net

81 zero by 2045 with respect to emissions of carbon dioxide resulting from the generation of electricity and

82 how it plans to comply with requirements for renewable energy deployment, energy storage

83 development, and technology development; and

84 16. The Commission shall (i) identify each Phase II Utility's progress toward meeting the

85 Commonwealth's net zero carbon dioxide emissions, renewable energy, and energy efficiency mandates

86 in each order issued by the Commission in each proceeding involving an integrated resource plan filed

87 by such a utility pursuant to Chapter 24 (§ 56-597 et seq.) of Title 56 of the Code of Virginia and (ii)

88 determine whether the Phase II Utility's progress toward meeting the goals identified in clause (i) is

89 adequate, and (iii) if the Commission finds that adequate progress is dot being made, recommend

90 necessary public policy changes.

91 2. That the provisions of this act may be referred to as the Building Clean Energy in Virginia Act

92 of 2020.

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