{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-585.5.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-585.5.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-585.5.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-585.5.html"}],"law_id":81665,"edition_id":1,"section_id":81665,"structure_id":13084,"section_number":"56-585.5","catch_line":"Generation of electricity from renewable and zero carbon sources","history":"2020, cc. 1193, 1194; 2021, Sp. Sess. I, cc. 140, 328, 532; 2023, cc. 732, 803, 804; 2024, cc. 596, 597; 2025, cc. 707, 708, 713, 714.","full_text":"A\n\nAs used in this section:\n\t\t\t“Accelerated renewable energy buyer” means a commercial or industrial customer of a Phase I or Phase II Utility, irrespective of generation supplier, with an aggregate load over 25 megawatts in the prior calendar year, that enters into arrangements pursuant to subsection G, as certified by the Commission.\n\t\t\t“Aggregate load” means the combined electrical load associated with selected accounts of an accelerated renewable energy buyer with the same legal entity name as, or in the names of affiliated entities that control, are controlled by, or are under common control of, such legal entity or are the names of affiliated entities under a common parent.\n\t\t\t“Control” has the same meaning as provided in § 56-585.1:11.\n\t\t\t“Elementary or secondary” has the same meaning as provided in § 22.1-1.\n\t\t\t“Falling water” means hydroelectric resources, including run-of-river generation from a combined pumped-storage and run-of-river facility. “Falling water” does not include electricity generated from pumped-storage facilities.\n\t\t\t“Low-income qualifying projects” means a project that provides a minimum of 50 percent of the respective electric output to low-income utility customers as that term is defined in § 56-576.\n\t\t\t“Phase I Utility” has the same meaning as provided in subdivision A 1 of § 56-585.1.\n\t\t\t“Phase II Utility” has the same meaning as provided in subdivision A 1 of § 56-585.1.\n\t\t\t“Previously developed project site” means any property, including related buffer areas, if any, that has been previously disturbed or developed for non-single-family residential, nonagricultural, or nonsilvicultural use, regardless of whether such property currently is being used for any purpose. “Previously developed project site” includes a brownfield as defined in § 10.1-1230 or any parcel that has been previously used (i) for a retail, commercial, or industrial purpose; (ii) as a parking lot; (iii) as the site of a parking lot canopy or structure; (iv) for mining, which is any lands affected by coal mining that took place before August 3, 1977, or any lands upon which extraction activities have been permitted by the Department of Energy under Title 45.2; (v) for quarrying; or (vi) as a landfill.\n\t\t\t“Total electric energy” means total electric energy sold to retail customers in the Commonwealth service territory of a Phase I or Phase II Utility, other than accelerated renewable energy buyers, by the incumbent electric utility or other retail supplier of electric energy in the previous calendar year, excluding an amount equivalent to the annual percentages of the electric energy that was supplied to such customer from nuclear generating plants located within the Commonwealth in the previous calendar year, provided such nuclear units were operating by July 1, 2020, or from any zero-carbon electric generating facilities not otherwise RPS eligible sources and placed into service in the Commonwealth after July 1, 2030.\n\t\t\t“Zero-carbon electricity” means electricity generated by any generating unit that does not emit carbon dioxide as a by-product of combusting fuel to generate electricity.B\n\n1. By December 31, 2024, except for any coal-fired electric generating units (i) jointly owned with a cooperative utility or (ii) owned and operated by a Phase II Utility located in the coalfield region of the Commonwealth that co-fires with biomass, any Phase I and Phase II Utility shall retire all generating units principally fueled by oil with a rated capacity in excess of 500 megawatts and all coal-fired electric generating units operating in the Commonwealth.2\n\nBy December 31, 2045, except for biomass-fired electric generating units that do not co-fire with coal, each Phase I and II Utility shall retire all other electric generating units located in the Commonwealth that emit carbon as a by-product of combusting fuel to generate electricity.3\n\nA Phase I or Phase II Utility may petition the Commission for relief from the requirements of this subsection on the basis that the requirement would threaten the reliability or security of electric service to customers. The Commission shall consider in-state and regional transmission entity resources and shall evaluate the reliability of each proposed retirement on a case-by-case basis in ruling upon any such petition.C\n\nEach Phase I and Phase II Utility shall participate in a renewable energy portfolio standard program (RPS Program) that establishes annual goals for the sale of renewable energy to all retail customers in the utility’s service territory, other than accelerated renewable energy buyers pursuant to subsection G, regardless of whether such customers purchase electric supply service from the utility or from suppliers other than the utility. To comply with the RPS Program, each Phase I and Phase II Utility shall procure and retire Renewable Energy Certificates (RECs) originating from renewable energy standard eligible sources (RPS eligible sources). For purposes of complying with the RPS Program from 2021 to 2024, a Phase I and Phase II Utility may use RECs from any renewable energy facility, as defined in \u00a7 56-576, provided that such facilities are located in the Commonwealth or are physically located within the PJM Interconnection, LLC (PJM) region. However, at no time during this period or thereafter may any Phase I or Phase II Utility use RECs from (i) renewable thermal energy, (ii) renewable thermal energy equivalent, or (iii) biomass-fired facilities that are outside the Commonwealth. From compliance year 2025 and all years after, each Phase I and Phase II Utility may only use RECs from RPS eligible sources for compliance with the RPS Program.\n\t\t\tIn order to qualify as RPS eligible sources, such sources must be (a) electric-generating resources that generate electric energy derived from solar or wind located in the Commonwealth or off the Commonwealth’s Atlantic shoreline or in federal waters and interconnected directly into the Commonwealth or physically located within the PJM region; (b) falling water resources located in the Commonwealth or physically located within the PJM region that were in operation as of January 1, 2020, that are owned by a Phase I or Phase II Utility or for which a Phase I or Phase II Utility has entered into a contract prior to January 1, 2020, to purchase the energy, capacity, and renewable attributes of such falling water resources; (c) non-utility-owned resources from falling water that (1) are less than 65 megawatts, (2) began commercial operation after December 31, 1979, or (3) added incremental generation representing greater than 50 percent of the original nameplate capacity after December 31, 1979, provided that such resources are located in the Commonwealth or are physically located within the PJM region; (d) waste-to-energy or landfill gas-fired generating resources located in the Commonwealth and in operation as of January 1, 2020, provided that such resources do not use waste heat from fossil fuel combustion; (e) geothermal heating and cooling systems located in the Commonwealth; (f) geothermal electric generating resources located in the Commonwealth or physically located within the PJM region; or (g) biomass-fired facilities in operation in the Commonwealth and in operation as of January 1, 2023, that (1) supply no more than 10 percent of their annual net electrical generation to the electric grid or no more than 15 percent of their annual total useful energy to any entity other than the manufacturing facility to which the generating source is interconnected and are fueled by forest-product manufacturing residuals, including pulping liquor, bark, paper recycling residuals, biowastes, or biomass, as described in subdivisions A 1, 2, and 4 of \u00a7 10.1-1308.1, provided that biomass as described in subdivision A 1 of \u00a7 10.1-1308.1 results from harvesting in accordance with best management practices for the sustainable harvesting of biomass developed and enforced by the State Forester pursuant to \u00a7 10.1-1105, or (2) are owned by a Phase I or Phase II Utility, have less than 52 megawatts capacity, and are fueled by forest-product manufacturing residuals, biowastes, or biomass, as described in subdivisions A 1, 2, and 4 of \u00a7 10.1-1308.1, provided that biomass as described in subdivision A 1 of \u00a7 10.1-1308.1 results from harvesting in accordance with best management practices for the sustainable harvesting of biomass developed and enforced by the State Forester pursuant to \u00a7 10.1-1105. Regardless of any future maintenance, expansion, or refurbishment activities, the total amount of RECs that may be sold by any RPS eligible source using biomass in any year shall be no more than the number of megawatt hours of electricity produced by that facility in 2022; however, in no year may any RPS eligible source using biomass sell RECs in excess of the actual megawatt-hours of electricity generated by such facility that year. In order to comply with the RPS Program, each Phase I and Phase II Utility may use and retire the environmental attributes associated with any existing owned or contracted solar, wind, falling water, or biomass electric generating resources in operation, or proposed for operation, in the Commonwealth or solar, wind, or falling water resources physically located within the PJM region, with such resource qualifying as a Commonwealth-located resource for purposes of this subsection, as of January 1, 2020, provided that such renewable attributes are verified as RECs consistent with the PJM-EIS Generation Attribute Tracking System.1\n\nThe RPS Program requirements shall be a percentage of the total electric energy sold in the previous calendar year and shall be implemented in accordance with the following schedule:\n\t\t\t\tRPS Program\n\t\t\t\tRequirement\n\t\t\t\tRPS Program\n\t\t\t\tRequirement\n\t\t\t\t6%\n\t\t\t\t14%\n\t\t\t\t7%\n\t\t\t\t17%\n\t\t\t\t8%\n\t\t\t\t20%\n\t\t\t\t10%\n\t\t\t\t23%\n\t\t\t\t14%\n\t\t\t\t26%\n\t\t\t\t17%\n\t\t\t\t29%\n\t\t\t\t20%\n\t\t\t\t32%\n\t\t\t\t24%\n\t\t\t\t35%\n\t\t\t\t27%\n\t\t\t\t38%\n\t\t\t\t30%\n\t\t\t\t41%\n\t\t\t\t33%\n\t\t\t\t45%\n\t\t\t\t36%\n\t\t\t\t49%\n\t\t\t\t39%\n\t\t\t\t52%\n\t\t\t\t42%\n\t\t\t\t55%\n\t\t\t\t45%\n\t\t\t\t59%\n\t\t\t\t53%\n\t\t\t\t63%\n\t\t\t\t53%\n\t\t\t\t67%\n\t\t\t\t57%\n\t\t\t\t71%\n\t\t\t\t61%\n\t\t\t\t75%\n\t\t\t\t65%\n\t\t\t\t79%\n\t\t\t\t68%\n\t\t\t\t83%\n\t\t\t\t71%\n\t\t\t\t87%\n\t\t\t\t74%\n\t\t\t\t91%\n\t\t\t\t77%\n\t\t\t\t95%\n\t\t\t\t80%\n\t\t\t\t2045 and\n\t\t\t\tthereafter\n\t\t\t\t100%\n\t\t\t\t84%\n\t\t\t\t88%\n\t\t\t\t92%\n\t\t\t\t96%\n\t\t\t\t2050 and\n\t\t\t\tthereafter\n\t\t\t\t100%2\n\nA Phase II Utility shall meet one percent of the RPS Program requirements in any given compliance year with solar, wind, or anaerobic digestion resources of one megawatt or less located in the Commonwealth, with not more than 3,000 kilowatts at any single location or at contiguous locations owned by the same entity or affiliated entities and, to the extent that low-income qualifying projects are available, then no less than 25 percent of such one percent shall be composed of low-income qualifying projects. To the extent that low-income qualifying projects are not available and projects located on or adjacent to public elementary or secondary schools are available, the remainder of no less than 25 percent of such one percent shall be composed of projects located on or adjacent to public elementary or secondary schools. A project located on or adjacent to a public elementary or secondary school shall have a contractual relationship with such school in order to qualify for the provisions of this section.3\n\nBeginning with the 2025 compliance year and thereafter, at least 75 percent of all RECs used by a Phase II Utility in a compliance period shall come from RPS eligible resources located in the Commonwealth.4\n\nAny Phase I or Phase II Utility may apply renewable energy sales achieved or RECs acquired in excess of the sales requirement for that RPS Program to the sales requirements for RPS Program requirements in the year in which it was generated and the five calendar years after the renewable energy was generated or the RECs were created. To the extent that a Phase I or Phase II Utility procures RECs for RPS Program compliance from resources the utility does not own, the utility shall be entitled to recover the costs of such certificates at its election pursuant to § 56-249.6 or subdivision A 5 d of § 56-585.1.5\n\nEnergy from a geothermal heating and cooling system is eligible for inclusion in meeting the requirements of the RPS Program. RECs from a geothermal heating and cooling system are created based on the amount of energy, converted from BTUs to kilowatt-hours, that is generated by a geothermal heating and cooling system for space heating and cooling or water heating. The Commission shall determine the form and manner in which such RECs are verified.D\n\nEach Phase I or Phase II Utility shall petition the Commission for necessary approvals to procure zero-carbon electricity generating capacity as set forth in this subsection and energy storage resources as set forth in subsection E. To the extent that a Phase I or Phase II Utility constructs or acquires new zero-carbon generating facilities or energy storage resources, the utility shall petition the Commission for the recovery of the costs of such facilities, at the utility’s election, either through its rates for generation and distribution services or through a rate adjustment clause pursuant to subdivision A 6 of \u00a7 56-585.1. All costs not sought for recovery through a rate adjustment clause pursuant to subdivision A 6 of \u00a7 56-585.1 associated with generating facilities provided by sunlight or onshore or offshore wind are also eligible to be applied by the utility as a customer credit reinvestment offset as provided in subdivision A 8 of \u00a7 56-585.1. Costs associated with the purchase of energy, capacity, or environmental attributes from facilities owned by the persons other than the utility required by this subsection shall be recovered by the utility either through its rates for generation and distribution services or pursuant to \u00a7 56-249.6.1\n\nEach Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of 600 megawatts of generating capacity using energy derived from sunlight or onshore wind.\n\t\t\t\ta. By December 31, 2023, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility.\n\t\t\t\tb. By December 31, 2027, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility.\n\t\t\t\tc. By December 31, 2030, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility.\n\t\t\t\td. Nothing in this subdivision 1 shall prohibit such Phase I Utility from constructing, acquiring, or entering into agreements to purchase the energy, capacity, and environmental attributes of more than 600 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, provided the utility receives approval from the Commission pursuant to §§ 56-580 and 56-585.1.2\n\nBy December 31, 2035, each Phase II Utility shall petition the Commission for necessary approvals to (i) construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of 16,100 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, which shall include 1,100 megawatts of solar generation of a nameplate capacity not to exceed three megawatts per individual project and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar facilities owned by persons other than a utility, including utility affiliates and deregulated affiliates and (ii) pursuant to § 56-585.1:11, construct or purchase one or more offshore wind generation facilities located off the Commonwealth’s Atlantic shoreline or in federal waters and interconnected directly into the Commonwealth with an aggregate capacity of up to 5,200 megawatts. At least 200 megawatts of the 16,100 megawatts shall be placed on previously developed project sites.\n\t\t\t\ta. By December 31, 2024, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 3,000 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility.\n\t\t\t\tb. By December 31, 2027, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 3,000 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility.\n\t\t\t\tc. By December 31, 2030, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 4,000 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility.\n\t\t\t\td. By December 31, 2035, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 6,100 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility.\n\t\t\t\te. Nothing in this subdivision 2 shall prohibit such Phase II Utility from constructing, acquiring, or entering into agreements to purchase the energy, capacity, and environmental attributes of more than 16,100 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, provided the utility receives approval from the Commission pursuant to §§ 56-580 and 56-585.1.3\n\nNothing in this section shall prohibit a utility from petitioning the Commission to construct or acquire zero-carbon electricity or from entering into contracts to procure the energy, capacity, and environmental attributes of zero-carbon electricity generating resources in excess of the requirements in subsection B. The Commission shall determine whether to approve such petitions on a stand-alone basis pursuant to §§ 56-580 and 56-585.1, provided that the Commission’s review shall also consider whether the proposed generating capacity (i) is necessary to meet the utility’s native load, (ii) is likely to lower customer fuel costs, (iii) will provide economic development opportunities in the Commonwealth, and (iv) serves a need that cannot be more affordably met with demand-side or energy storage resources.\n\t\t\t\tEach Phase I and Phase II Utility shall, at least once every year, conduct a request for proposals for new solar and wind resources. Such requests shall quantify and describe the utility’s need for energy, capacity, or renewable energy certificates. The requests for proposals shall be publicly announced and made available for public review on the utility’s website at least 45 days prior to the closing of such request for proposals. The requests for proposals shall provide, at a minimum, the following information: (a) the size, type, and timing of resources for which the utility anticipates contracting; (b) any minimum thresholds that must be met by respondents; (c) major assumptions to be used by the utility in the bid evaluation process, including environmental emission standards; (d) detailed instructions for preparing bids so that bids can be evaluated on a consistent basis; (e) the preferred general location of additional capacity; and (f) specific information concerning the factors involved in determining the price and non-price criteria used for selecting winning bids. A utility may evaluate responses to requests for proposals based on any criteria that it deems reasonable but shall at a minimum consider the following in its selection process: (1) the status of a particular project’s development; (2) the age of existing generation facilities; (3) the demonstrated financial viability of a project and the developer; (4) a developer’s prior experience in the field; (5) the location and effect on the transmission grid of a generation facility; (6) benefits to the Commonwealth that are associated with particular projects, including regional economic development and the use of goods and services from Virginia businesses; and (7) the environmental impacts of particular resources, including impacts on air quality within the Commonwealth and the carbon intensity of the utility’s generation portfolio.4\n\nIn connection with the requirements of this subsection, each Phase I and Phase II Utility shall, commencing in 2020 and concluding in 2035, submit annually a plan and petition for approval for the development of new solar and onshore wind generation capacity. Such plan shall reflect, in the aggregate and over its duration, the requirements of subsection D concerning the allocation percentages for construction or purchase of such capacity. Such petition shall contain any request for approval to construct such facilities pursuant to subsection D of § 56-580 and a request for approval or update of a rate adjustment clause pursuant to subdivision A 6 of § 56-585.1 to recover the costs of such facilities. Such plan shall also include the utility’s plan to meet the energy storage project targets of subsection E, including the goal of installing at least 10 percent of such energy storage projects behind the meter. In determining whether to approve the utility’s plan and any associated petition requests, the Commission shall determine whether they are reasonable and prudent and shall give due consideration to (i) the RPS and carbon dioxide reduction requirements in this section; (ii) the promotion of new renewable generation and energy storage resources within the Commonwealth, and associated economic development; and (iii) fuel savings projected to be achieved by the plan. Notwithstanding any other provision of this title, the Commission’s final order regarding any such petition and associated requests shall be entered by the Commission not more than six months after the date of the filing of such petition.5\n\nIf, in any year, a Phase I or Phase II Utility is unable to meet the compliance obligation of the RPS Program requirements or if the cost of RECs necessary to comply with RPS Program requirements exceeds $45 per megawatt hour, such supplier shall be obligated to make a deficiency payment equal to $45 for each megawatt-hour shortfall for the year of noncompliance, except that the deficiency payment for any shortfall in procuring RECs for solar, wind, or anaerobic digesters located in the Commonwealth shall be $75 per megawatts hour for resources one megawatt and lower. The amount of any deficiency payment shall increase by one percent annually after 2021. A Phase I or Phase II Utility shall be entitled to recover the costs of such payments as a cost of compliance with the requirements of this subsection pursuant to subdivision A 5 d of § 56-585.1. All proceeds from the deficiency payments shall be deposited into an interest-bearing account administered by the Department of Energy. In administering this account, the Department of Energy shall manage the account as follows: (i) 50 percent of total revenue shall be directed to job training programs in historically economically disadvantaged communities; (ii) 16 percent of total revenue shall be directed to energy efficiency measures for public facilities; (iii) 30 percent of total revenue shall be directed to renewable energy programs located in historically economically disadvantaged communities; and (iv) four percent of total revenue shall be directed to administrative costs.\n\t\t\t\tFor any project constructed pursuant to this subsection or subsection E, a utility shall, subject to a competitive procurement process, procure equipment from a Virginia-based or United States-based manufacturer using materials or product components made in Virginia or the United States, if reasonably available and competitively priced.E\n\nTo enhance reliability and performance of the utility’s generation and distribution system, each Phase I and Phase II Utility shall petition the Commission for necessary approvals to construct or acquire new, utility-owned energy storage resources.1\n\nBy December 31, 2035, each Phase I Utility shall petition the Commission for necessary approvals to construct or acquire 400 megawatts of energy storage capacity. Nothing in this subdivision shall prohibit a Phase I Utility from constructing or acquiring more than 400 megawatts of energy storage, provided that the utility receives approval from the Commission pursuant to §§ 56-580 and 56-585.1.2\n\nBy December 31, 2035, each Phase II Utility shall petition the Commission for necessary approvals to construct or acquire 2,700 megawatts of energy storage capacity. Nothing in this subdivision shall prohibit a Phase II Utility from constructing or acquiring more than 2,700 megawatts of energy storage, provided that the utility receives approval from the Commission pursuant to §§ 56-580 and 56-585.1.3\n\nNo single energy storage project shall exceed 500 megawatts in size, except that a Phase II Utility may procure a single energy storage project up to 800 megawatts.4\n\nAll energy storage projects procured pursuant to this subsection shall meet the competitive procurement protocols established in subdivision D 3.5\n\nAfter July 1, 2020, at least 35 percent of the energy storage facilities placed into service shall be (i) purchased by the public utility from a party other than the public utility or (ii) owned by a party other than a public utility, with the capacity from such facilities sold to the public utility. By January 1, 2021, the Commission shall adopt regulations to achieve the deployment of energy storage for the Commonwealth required in subdivisions 1 and 2, including regulations that set interim targets and update existing utility planning and procurement rules. The regulations shall include programs and mechanisms to deploy energy storage, including competitive solicitations, behind-the-meter incentives, non-wires alternatives programs, and peak demand reduction programs.F\n\nAll costs incurred by a Phase I or Phase II Utility related to compliance with the requirements of this section or pursuant to § 56-585.1:11, including (i) costs of generation facilities powered by sunlight or onshore or offshore wind, or energy storage facilities, that are constructed or acquired by a Phase I or Phase II Utility after July 1, 2020, (ii) costs of capacity, energy, or environmental attributes from generation facilities powered by sunlight or onshore or offshore wind, or falling water, or energy storage facilities purchased by the utility from persons other than the utility through agreements after July 1, 2020, and (iii) all other costs of compliance, including costs associated with the purchase of RECs associated with RPS Program requirements pursuant to this section shall be recovered from all retail customers in the service territory of a Phase I or Phase II Utility as a non-bypassable charge, irrespective of the generation supplier of such customer, except (a) as provided in subsection G for an accelerated renewable energy buyer or (b) as provided in subdivision C 3 of § 56-585.1:11, with respect to the costs of an offshore wind generation facility, for a PIPP eligible utility customer or an advanced clean energy buyer or qualifying large general service customer, as those terms are defined in § 56-585.1:11. If a Phase I or Phase II Utility serves customers in more than one jurisdiction, such utility shall recover all of the costs of compliance with the RPS Program requirements from its Virginia customers through the applicable cost recovery mechanism, and all associated energy, capacity, and environmental attributes shall be assigned to Virginia to the extent that such costs are requested but not recovered from any system customers outside the Commonwealth.\n\t\t\tBy September 1, 2020, the Commission shall direct the initiation of a proceeding for each Phase I and Phase II Utility to review and determine the amount of such costs, net of benefits, that should be allocated to retail customers within the utility’s service territory which have elected to receive electric supply service from a supplier of electric energy other than the utility, and shall direct that tariff provisions be implemented to recover those costs from such customers beginning no later than January 1, 2021. Thereafter, such charges and tariff provisions shall be updated and trued up by the utility on an annual basis, subject to continuing review and approval by the Commission.G\n\n1. An accelerated renewable energy buyer may contract with a Phase I or Phase II Utility, or a person other than a Phase I or Phase II Utility, to obtain (i) RECs from RPS eligible resources or (ii) bundled capacity, energy, and RECs from solar or, wind, or zero-carbon electricity generation resources located within the PJM region and initially placed in commercial operation after January 1, 2015, including any contract with a utility for such generation resources that does not allocate the cost of such resources to or recover the cost of such resources from any other customers of the utility that have not voluntarily agreed to pay such cost. Such an accelerated renewable energy buyer may offset all or a portion of its electric load for purposes of RPS compliance through such arrangements. An accelerated renewable energy buyer shall be exempt from the assignment of non-bypassable RPS compliance costs pursuant to subsection F, with the exception of the costs of an offshore wind generating facility pursuant to \u00a7 56-585.1:11, based on the amount of RECs obtained pursuant to this subsection in proportion to the customer’s total electric energy consumption, on an annual basis. An accelerated renewable energy buyer may also contract with a Phase I or Phase II Utility, or a person other than a Phase I or Phase II Utility, to obtain capacity from energy storage facilities located within the network service area of the utility pursuant to this subsection, provided that the costs of such resources are not recovered from any of the utility’s customers who have not voluntarily agreed to pay for such costs. Such accelerated renewable energy buyer shall be exempt from the assignment of non-bypassable RPS Program compliance costs specifically associated with energy storage facilities pursuant to this subsection in proportion to the customer’s total capacity demand on an annual basis. An accelerated renewable energy buyer obtaining RECs only shall not be exempt from costs related to procurement of new solar or onshore wind generation capacity, energy, or environmental attributes, or energy storage facilities, by the utility pursuant to subsections D and E, however, an accelerated renewable energy buyer that is a customer of a Phase II Utility and was subscribed, as of March 1, 2020, to a voluntary companion experimental tariff offering of the utility 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, shall be exempt from 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 the utility pursuant to subsections D and E, based on the amount of RECs associated with the customer’s renewable facilities agreements associated with such tariff offering as of that date in proportion to the customer’s total electric energy consumption, on an annual basis. To the extent that an accelerated renewable energy buyer contracts for the capacity of new solar or wind generation resources or energy storage facilities pursuant to this subsection, the aggregate amount of such nameplate capacity shall be offset from the utility’s procurement requirements pursuant to subsection D. All RECs associated with contracts entered into by an accelerated renewable energy buyer with the utility, or a person other than the utility, for an RPS Program shall not be credited to the utility’s compliance with its RPS requirements, and the calculation of the utility’s RPS Program requirements shall not include the electric load covered by customers certified as accelerated renewable energy buyers.2\n\nEach Phase I or Phase II Utility shall certify, and verify as necessary, to the Commission that the accelerated renewable energy buyer has satisfied the exemption requirements of this subsection for each year, or an accelerated renewable energy buyer may choose to certify satisfaction of this exemption by reporting to the Commission individually. The Commission may promulgate such rules and regulations as may be necessary to implement the provisions of this subsection.3\n\nProvided that no incremental costs associated with any contract between a Phase I or Phase II Utility and an accelerated renewable energy buyer is allocated to or recovered from any other customer of the utility, any such contract with an accelerated renewable energy buyer that is a jurisdictional customer of the utility shall not be deemed a special rate or contract requiring Commission approval pursuant to § 56-235.2.4\n\nThe State Corporation Commission shall ensure that any distribution and transmission costs associated with new energy generation resources procured pursuant to subsection G of § 56-585.5 of the Code of Virginia, as amended by this act, are justly and reasonably allocated.H\n\nNo customer of a Phase II Utility with a peak demand in excess of 100 megawatts in 2019 that elected pursuant to subdivision A 3 of § 56-577 to purchase electric energy from a competitive service provider prior to April 1, 2019, shall be allocated any non-bypassable charges pursuant to subsection F for such period that the customer is not purchasing electric energy from the utility, and such customer’s electric load shall not be included in the utility’s RPS Program requirements. No customer of a Phase I Utility that elected pursuant to subdivision A 3 of § 56-577 to purchase electric energy from a competitive service provider prior to February 1, 2019, shall be allocated any non-bypassable charges pursuant to subsection F for such period that the customer is not purchasing electric energy from the utility, and such customer’s electric load shall not be included in the utility’s RPS Program requirements.I\n\nIn any petition by a Phase I or Phase II Utility for a certificate of public convenience and necessity to construct and operate an electrical generating facility that generates electric energy derived from sunlight submitted pursuant to § 56-580, such utility shall demonstrate that the proposed facility was subject to competitive procurement or solicitation as set forth in subdivision D 3.J\n\nNotwithstanding any contrary provision of law, for the purposes of this section, any falling water generation facility located in the Commonwealth and commencing commercial operations prior to July 1, 2024, shall be considered a renewable energy portfolio standard (RPS) eligible source.K\n\nNothing in this section shall apply to any entity organized under Chapter 9.1 (§ 56-231.15 et seq.).L\n\nThe Commission shall adopt such rules and regulations as may be necessary to implement the provisions of this section, including a requirement that participants verify whether the RPS Program requirements are met in accordance with this section.","order_by":null,"text":{"0":{"id":292501,"text":"As used in this section:\n\t\t\t“Accelerated renewable energy buyer” means a commercial or industrial customer of a Phase I or Phase II Utility, irrespective of generation supplier, with an aggregate load over 25 megawatts in the prior calendar year, that enters into arrangements pursuant to subsection G, as certified by the Commission.\n\t\t\t“Aggregate load” means the combined electrical load associated with selected accounts of an accelerated renewable energy buyer with the same legal entity name as, or in the names of affiliated entities that control, are controlled by, or are under common control of, such legal entity or are the names of affiliated entities under a common parent.\n\t\t\t“Control” has the same meaning as provided in § 56-585.1:11.\n\t\t\t“Elementary or secondary” has the same meaning as provided in § 22.1-1.\n\t\t\t“Falling water” means hydroelectric resources, including run-of-river generation from a combined pumped-storage and run-of-river facility. “Falling water” does not include electricity generated from pumped-storage facilities.\n\t\t\t“Low-income qualifying projects” means a project that provides a minimum of 50 percent of the respective electric output to low-income utility customers as that term is defined in § 56-576.\n\t\t\t“Phase I Utility” has the same meaning as provided in subdivision A 1 of § 56-585.1.\n\t\t\t“Phase II Utility” has the same meaning as provided in subdivision A 1 of § 56-585.1.\n\t\t\t“Previously developed project site” means any property, including related buffer areas, if any, that has been previously disturbed or developed for non-single-family residential, nonagricultural, or nonsilvicultural use, regardless of whether such property currently is being used for any purpose. “Previously developed project site” includes a brownfield as defined in § 10.1-1230 or any parcel that has been previously used (i) for a retail, commercial, or industrial purpose; (ii) as a parking lot; (iii) as the site of a parking lot canopy or structure; (iv) for mining, which is any lands affected by coal mining that took place before August 3, 1977, or any lands upon which extraction activities have been permitted by the Department of Energy under Title 45.2; (v) for quarrying; or (vi) as a landfill.\n\t\t\t“Total electric energy” means total electric energy sold to retail customers in the Commonwealth service territory of a Phase I or Phase II Utility, other than accelerated renewable energy buyers, by the incumbent electric utility or other retail supplier of electric energy in the previous calendar year, excluding an amount equivalent to the annual percentages of the electric energy that was supplied to such customer from nuclear generating plants located within the Commonwealth in the previous calendar year, provided such nuclear units were operating by July 1, 2020, or from any zero-carbon electric generating facilities not otherwise RPS eligible sources and placed into service in the Commonwealth after July 1, 2030.\n\t\t\t“Zero-carbon electricity” means electricity generated by any generating unit that does not emit carbon dioxide as a by-product of combusting fuel to generate electricity.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":292502,"text":"1. By December 31, 2024, except for any coal-fired electric generating units (i) jointly owned with a cooperative utility or (ii) owned and operated by a Phase II Utility located in the coalfield region of the Commonwealth that co-fires with biomass, any Phase I and Phase II Utility shall retire all generating units principally fueled by oil with a rated capacity in excess of 500 megawatts and all coal-fired electric generating units operating in the Commonwealth.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":292503,"text":"By December 31, 2045, except for biomass-fired electric generating units that do not co-fire with coal, each Phase I and II Utility shall retire all other electric generating units located in the Commonwealth that emit carbon as a by-product of combusting fuel to generate electricity.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"B3"},"3":{"id":292504,"text":"A Phase I or Phase II Utility may petition the Commission for relief from the requirements of this subsection on the basis that the requirement would threaten the reliability or security of electric service to customers. The Commission shall consider in-state and regional transmission entity resources and shall evaluate the reliability of each proposed retirement on a case-by-case basis in ruling upon any such petition.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"4":{"id":292505,"text":"Each Phase I and Phase II Utility shall participate in a renewable energy portfolio standard program (RPS Program) that establishes annual goals for the sale of renewable energy to all retail customers in the utility’s service territory, other than accelerated renewable energy buyers pursuant to subsection G, regardless of whether such customers purchase electric supply service from the utility or from suppliers other than the utility. To comply with the RPS Program, each Phase I and Phase II Utility shall procure and retire Renewable Energy Certificates (RECs) originating from renewable energy standard eligible sources (RPS eligible sources). For purposes of complying with the RPS Program from 2021 to 2024, a Phase I and Phase II Utility may use RECs from any renewable energy facility, as defined in \u00a7 56-576, provided that such facilities are located in the Commonwealth or are physically located within the PJM Interconnection, LLC (PJM) region. However, at no time during this period or thereafter may any Phase I or Phase II Utility use RECs from (i) renewable thermal energy, (ii) renewable thermal energy equivalent, or (iii) biomass-fired facilities that are outside the Commonwealth. From compliance year 2025 and all years after, each Phase I and Phase II Utility may only use RECs from RPS eligible sources for compliance with the RPS Program.\n\t\t\tIn order to qualify as RPS eligible sources, such sources must be (a) electric-generating resources that generate electric energy derived from solar or wind located in the Commonwealth or off the Commonwealth’s Atlantic shoreline or in federal waters and interconnected directly into the Commonwealth or physically located within the PJM region; (b) falling water resources located in the Commonwealth or physically located within the PJM region that were in operation as of January 1, 2020, that are owned by a Phase I or Phase II Utility or for which a Phase I or Phase II Utility has entered into a contract prior to January 1, 2020, to purchase the energy, capacity, and renewable attributes of such falling water resources; (c) non-utility-owned resources from falling water that (1) are less than 65 megawatts, (2) began commercial operation after December 31, 1979, or (3) added incremental generation representing greater than 50 percent of the original nameplate capacity after December 31, 1979, provided that such resources are located in the Commonwealth or are physically located within the PJM region; (d) waste-to-energy or landfill gas-fired generating resources located in the Commonwealth and in operation as of January 1, 2020, provided that such resources do not use waste heat from fossil fuel combustion; (e) geothermal heating and cooling systems located in the Commonwealth; (f) geothermal electric generating resources located in the Commonwealth or physically located within the PJM region; or (g) biomass-fired facilities in operation in the Commonwealth and in operation as of January 1, 2023, that (1) supply no more than 10 percent of their annual net electrical generation to the electric grid or no more than 15 percent of their annual total useful energy to any entity other than the manufacturing facility to which the generating source is interconnected and are fueled by forest-product manufacturing residuals, including pulping liquor, bark, paper recycling residuals, biowastes, or biomass, as described in subdivisions A 1, 2, and 4 of \u00a7 10.1-1308.1, provided that biomass as described in subdivision A 1 of \u00a7 10.1-1308.1 results from harvesting in accordance with best management practices for the sustainable harvesting of biomass developed and enforced by the State Forester pursuant to \u00a7 10.1-1105, or (2) are owned by a Phase I or Phase II Utility, have less than 52 megawatts capacity, and are fueled by forest-product manufacturing residuals, biowastes, or biomass, as described in subdivisions A 1, 2, and 4 of \u00a7 10.1-1308.1, provided that biomass as described in subdivision A 1 of \u00a7 10.1-1308.1 results from harvesting in accordance with best management practices for the sustainable harvesting of biomass developed and enforced by the State Forester pursuant to \u00a7 10.1-1105. Regardless of any future maintenance, expansion, or refurbishment activities, the total amount of RECs that may be sold by any RPS eligible source using biomass in any year shall be no more than the number of megawatt hours of electricity produced by that facility in 2022; however, in no year may any RPS eligible source using biomass sell RECs in excess of the actual megawatt-hours of electricity generated by such facility that year. In order to comply with the RPS Program, each Phase I and Phase II Utility may use and retire the environmental attributes associated with any existing owned or contracted solar, wind, falling water, or biomass electric generating resources in operation, or proposed for operation, in the Commonwealth or solar, wind, or falling water resources physically located within the PJM region, with such resource qualifying as a Commonwealth-located resource for purposes of this subsection, as of January 1, 2020, provided that such renewable attributes are verified as RECs consistent with the PJM-EIS Generation Attribute Tracking System.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"C1"},"5":{"id":292506,"text":"The RPS Program requirements shall be a percentage of the total electric energy sold in the previous calendar year and shall be implemented in accordance with the following schedule:\n\t\t\t\tRPS Program\n\t\t\t\tRequirement\n\t\t\t\tRPS Program\n\t\t\t\tRequirement\n\t\t\t\t6%\n\t\t\t\t14%\n\t\t\t\t7%\n\t\t\t\t17%\n\t\t\t\t8%\n\t\t\t\t20%\n\t\t\t\t10%\n\t\t\t\t23%\n\t\t\t\t14%\n\t\t\t\t26%\n\t\t\t\t17%\n\t\t\t\t29%\n\t\t\t\t20%\n\t\t\t\t32%\n\t\t\t\t24%\n\t\t\t\t35%\n\t\t\t\t27%\n\t\t\t\t38%\n\t\t\t\t30%\n\t\t\t\t41%\n\t\t\t\t33%\n\t\t\t\t45%\n\t\t\t\t36%\n\t\t\t\t49%\n\t\t\t\t39%\n\t\t\t\t52%\n\t\t\t\t42%\n\t\t\t\t55%\n\t\t\t\t45%\n\t\t\t\t59%\n\t\t\t\t53%\n\t\t\t\t63%\n\t\t\t\t53%\n\t\t\t\t67%\n\t\t\t\t57%\n\t\t\t\t71%\n\t\t\t\t61%\n\t\t\t\t75%\n\t\t\t\t65%\n\t\t\t\t79%\n\t\t\t\t68%\n\t\t\t\t83%\n\t\t\t\t71%\n\t\t\t\t87%\n\t\t\t\t74%\n\t\t\t\t91%\n\t\t\t\t77%\n\t\t\t\t95%\n\t\t\t\t80%\n\t\t\t\t2045 and\n\t\t\t\tthereafter\n\t\t\t\t100%\n\t\t\t\t84%\n\t\t\t\t88%\n\t\t\t\t92%\n\t\t\t\t96%\n\t\t\t\t2050 and\n\t\t\t\tthereafter\n\t\t\t\t100%","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"6":{"id":292507,"text":"A Phase II Utility shall meet one percent of the RPS Program requirements in any given compliance year with solar, wind, or anaerobic digestion resources of one megawatt or less located in the Commonwealth, with not more than 3,000 kilowatts at any single location or at contiguous locations owned by the same entity or affiliated entities and, to the extent that low-income qualifying projects are available, then no less than 25 percent of such one percent shall be composed of low-income qualifying projects. To the extent that low-income qualifying projects are not available and projects located on or adjacent to public elementary or secondary schools are available, the remainder of no less than 25 percent of such one percent shall be composed of projects located on or adjacent to public elementary or secondary schools. A project located on or adjacent to a public elementary or secondary school shall have a contractual relationship with such school in order to qualify for the provisions of this section.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"7":{"id":292508,"text":"Beginning with the 2025 compliance year and thereafter, at least 75 percent of all RECs used by a Phase II Utility in a compliance period shall come from RPS eligible resources located in the Commonwealth.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"8":{"id":292509,"text":"Any Phase I or Phase II Utility may apply renewable energy sales achieved or RECs acquired in excess of the sales requirement for that RPS Program to the sales requirements for RPS Program requirements in the year in which it was generated and the five calendar years after the renewable energy was generated or the RECs were created. To the extent that a Phase I or Phase II Utility procures RECs for RPS Program compliance from resources the utility does not own, the utility shall be entitled to recover the costs of such certificates at its election pursuant to § 56-249.6 or subdivision A 5 d of § 56-585.1.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"9":{"id":292510,"text":"Energy from a geothermal heating and cooling system is eligible for inclusion in meeting the requirements of the RPS Program. RECs from a geothermal heating and cooling system are created based on the amount of energy, converted from BTUs to kilowatt-hours, that is generated by a geothermal heating and cooling system for space heating and cooling or water heating. The Commission shall determine the form and manner in which such RECs are verified.","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"D"},"10":{"id":292511,"text":"Each Phase I or Phase II Utility shall petition the Commission for necessary approvals to procure zero-carbon electricity generating capacity as set forth in this subsection and energy storage resources as set forth in subsection E. To the extent that a Phase I or Phase II Utility constructs or acquires new zero-carbon generating facilities or energy storage resources, the utility shall petition the Commission for the recovery of the costs of such facilities, at the utility’s election, either through its rates for generation and distribution services or through a rate adjustment clause pursuant to subdivision A 6 of \u00a7 56-585.1. All costs not sought for recovery through a rate adjustment clause pursuant to subdivision A 6 of \u00a7 56-585.1 associated with generating facilities provided by sunlight or onshore or offshore wind are also eligible to be applied by the utility as a customer credit reinvestment offset as provided in subdivision A 8 of \u00a7 56-585.1. Costs associated with the purchase of energy, capacity, or environmental attributes from facilities owned by the persons other than the utility required by this subsection shall be recovered by the utility either through its rates for generation and distribution services or pursuant to \u00a7 56-249.6.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C5","next_prefix":"D1"},"11":{"id":292512,"text":"Each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of 600 megawatts of generating capacity using energy derived from sunlight or onshore wind.\n\t\t\t\ta. By December 31, 2023, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility.\n\t\t\t\tb. By December 31, 2027, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility.\n\t\t\t\tc. By December 31, 2030, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility.\n\t\t\t\td. Nothing in this subdivision 1 shall prohibit such Phase I Utility from constructing, acquiring, or entering into agreements to purchase the energy, capacity, and environmental attributes of more than 600 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, provided the utility receives approval from the Commission pursuant to §§ 56-580 and 56-585.1.","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"12":{"id":292513,"text":"By December 31, 2035, each Phase II Utility shall petition the Commission for necessary approvals to (i) construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of 16,100 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, which shall include 1,100 megawatts of solar generation of a nameplate capacity not to exceed three megawatts per individual project and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar facilities owned by persons other than a utility, including utility affiliates and deregulated affiliates and (ii) pursuant to § 56-585.1:11, construct or purchase one or more offshore wind generation facilities located off the Commonwealth’s Atlantic shoreline or in federal waters and interconnected directly into the Commonwealth with an aggregate capacity of up to 5,200 megawatts. At least 200 megawatts of the 16,100 megawatts shall be placed on previously developed project sites.\n\t\t\t\ta. By December 31, 2024, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 3,000 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility.\n\t\t\t\tb. By December 31, 2027, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 3,000 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility.\n\t\t\t\tc. By December 31, 2030, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 4,000 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility.\n\t\t\t\td. By December 31, 2035, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 6,100 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility.\n\t\t\t\te. Nothing in this subdivision 2 shall prohibit such Phase II Utility from constructing, acquiring, or entering into agreements to purchase the energy, capacity, and environmental attributes of more than 16,100 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, provided the utility receives approval from the Commission pursuant to §§ 56-580 and 56-585.1.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"13":{"id":292514,"text":"Nothing in this section shall prohibit a utility from petitioning the Commission to construct or acquire zero-carbon electricity or from entering into contracts to procure the energy, capacity, and environmental attributes of zero-carbon electricity generating resources in excess of the requirements in subsection B. The Commission shall determine whether to approve such petitions on a stand-alone basis pursuant to §§ 56-580 and 56-585.1, provided that the Commission’s review shall also consider whether the proposed generating capacity (i) is necessary to meet the utility’s native load, (ii) is likely to lower customer fuel costs, (iii) will provide economic development opportunities in the Commonwealth, and (iv) serves a need that cannot be more affordably met with demand-side or energy storage resources.\n\t\t\t\tEach Phase I and Phase II Utility shall, at least once every year, conduct a request for proposals for new solar and wind resources. Such requests shall quantify and describe the utility’s need for energy, capacity, or renewable energy certificates. The requests for proposals shall be publicly announced and made available for public review on the utility’s website at least 45 days prior to the closing of such request for proposals. The requests for proposals shall provide, at a minimum, the following information: (a) the size, type, and timing of resources for which the utility anticipates contracting; (b) any minimum thresholds that must be met by respondents; (c) major assumptions to be used by the utility in the bid evaluation process, including environmental emission standards; (d) detailed instructions for preparing bids so that bids can be evaluated on a consistent basis; (e) the preferred general location of additional capacity; and (f) specific information concerning the factors involved in determining the price and non-price criteria used for selecting winning bids. A utility may evaluate responses to requests for proposals based on any criteria that it deems reasonable but shall at a minimum consider the following in its selection process: (1) the status of a particular project’s development; (2) the age of existing generation facilities; (3) the demonstrated financial viability of a project and the developer; (4) a developer’s prior experience in the field; (5) the location and effect on the transmission grid of a generation facility; (6) benefits to the Commonwealth that are associated with particular projects, including regional economic development and the use of goods and services from Virginia businesses; and (7) the environmental impacts of particular resources, including impacts on air quality within the Commonwealth and the carbon intensity of the utility’s generation portfolio.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"14":{"id":292515,"text":"In connection with the requirements of this subsection, each Phase I and Phase II Utility shall, commencing in 2020 and concluding in 2035, submit annually a plan and petition for approval for the development of new solar and onshore wind generation capacity. Such plan shall reflect, in the aggregate and over its duration, the requirements of subsection D concerning the allocation percentages for construction or purchase of such capacity. Such petition shall contain any request for approval to construct such facilities pursuant to subsection D of § 56-580 and a request for approval or update of a rate adjustment clause pursuant to subdivision A 6 of § 56-585.1 to recover the costs of such facilities. Such plan shall also include the utility’s plan to meet the energy storage project targets of subsection E, including the goal of installing at least 10 percent of such energy storage projects behind the meter. In determining whether to approve the utility’s plan and any associated petition requests, the Commission shall determine whether they are reasonable and prudent and shall give due consideration to (i) the RPS and carbon dioxide reduction requirements in this section; (ii) the promotion of new renewable generation and energy storage resources within the Commonwealth, and associated economic development; and (iii) fuel savings projected to be achieved by the plan. Notwithstanding any other provision of this title, the Commission’s final order regarding any such petition and associated requests shall be entered by the Commission not more than six months after the date of the filing of such petition.","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"15":{"id":292516,"text":"If, in any year, a Phase I or Phase II Utility is unable to meet the compliance obligation of the RPS Program requirements or if the cost of RECs necessary to comply with RPS Program requirements exceeds $45 per megawatt hour, such supplier shall be obligated to make a deficiency payment equal to $45 for each megawatt-hour shortfall for the year of noncompliance, except that the deficiency payment for any shortfall in procuring RECs for solar, wind, or anaerobic digesters located in the Commonwealth shall be $75 per megawatts hour for resources one megawatt and lower. The amount of any deficiency payment shall increase by one percent annually after 2021. A Phase I or Phase II Utility shall be entitled to recover the costs of such payments as a cost of compliance with the requirements of this subsection pursuant to subdivision A 5 d of § 56-585.1. All proceeds from the deficiency payments shall be deposited into an interest-bearing account administered by the Department of Energy. In administering this account, the Department of Energy shall manage the account as follows: (i) 50 percent of total revenue shall be directed to job training programs in historically economically disadvantaged communities; (ii) 16 percent of total revenue shall be directed to energy efficiency measures for public facilities; (iii) 30 percent of total revenue shall be directed to renewable energy programs located in historically economically disadvantaged communities; and (iv) four percent of total revenue shall be directed to administrative costs.\n\t\t\t\tFor any project constructed pursuant to this subsection or subsection E, a utility shall, subject to a competitive procurement process, procure equipment from a Virginia-based or United States-based manufacturer using materials or product components made in Virginia or the United States, if reasonably available and competitively priced.","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"E"},"16":{"id":292517,"text":"To enhance reliability and performance of the utility’s generation and distribution system, each Phase I and Phase II Utility shall petition the Commission for necessary approvals to construct or acquire new, utility-owned energy storage resources.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D5","next_prefix":"E1"},"17":{"id":292518,"text":"By December 31, 2035, each Phase I Utility shall petition the Commission for necessary approvals to construct or acquire 400 megawatts of energy storage capacity. Nothing in this subdivision shall prohibit a Phase I Utility from constructing or acquiring more than 400 megawatts of energy storage, provided that the utility receives approval from the Commission pursuant to §§ 56-580 and 56-585.1.","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"18":{"id":292519,"text":"By December 31, 2035, each Phase II Utility shall petition the Commission for necessary approvals to construct or acquire 2,700 megawatts of energy storage capacity. Nothing in this subdivision shall prohibit a Phase II Utility from constructing or acquiring more than 2,700 megawatts of energy storage, provided that the utility receives approval from the Commission pursuant to §§ 56-580 and 56-585.1.","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"19":{"id":292520,"text":"No single energy storage project shall exceed 500 megawatts in size, except that a Phase II Utility may procure a single energy storage project up to 800 megawatts.","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"E4"},"20":{"id":292521,"text":"All energy storage projects procured pursuant to this subsection shall meet the competitive procurement protocols established in subdivision D 3.","type":"section","prefixes":["E","4"],"prefix":"4","entire_prefix":"E4","prefix_anchor":"E4","level":2,"prior_prefix":"E3","next_prefix":"E5"},"21":{"id":292522,"text":"After July 1, 2020, at least 35 percent of the energy storage facilities placed into service shall be (i) purchased by the public utility from a party other than the public utility or (ii) owned by a party other than a public utility, with the capacity from such facilities sold to the public utility. By January 1, 2021, the Commission shall adopt regulations to achieve the deployment of energy storage for the Commonwealth required in subdivisions 1 and 2, including regulations that set interim targets and update existing utility planning and procurement rules. The regulations shall include programs and mechanisms to deploy energy storage, including competitive solicitations, behind-the-meter incentives, non-wires alternatives programs, and peak demand reduction programs.","type":"section","prefixes":["E","5"],"prefix":"5","entire_prefix":"E5","prefix_anchor":"E5","level":2,"prior_prefix":"E4","next_prefix":"F"},"22":{"id":292523,"text":"All costs incurred by a Phase I or Phase II Utility related to compliance with the requirements of this section or pursuant to § 56-585.1:11, including (i) costs of generation facilities powered by sunlight or onshore or offshore wind, or energy storage facilities, that are constructed or acquired by a Phase I or Phase II Utility after July 1, 2020, (ii) costs of capacity, energy, or environmental attributes from generation facilities powered by sunlight or onshore or offshore wind, or falling water, or energy storage facilities purchased by the utility from persons other than the utility through agreements after July 1, 2020, and (iii) all other costs of compliance, including costs associated with the purchase of RECs associated with RPS Program requirements pursuant to this section shall be recovered from all retail customers in the service territory of a Phase I or Phase II Utility as a non-bypassable charge, irrespective of the generation supplier of such customer, except (a) as provided in subsection G for an accelerated renewable energy buyer or (b) as provided in subdivision C 3 of § 56-585.1:11, with respect to the costs of an offshore wind generation facility, for a PIPP eligible utility customer or an advanced clean energy buyer or qualifying large general service customer, as those terms are defined in § 56-585.1:11. If a Phase I or Phase II Utility serves customers in more than one jurisdiction, such utility shall recover all of the costs of compliance with the RPS Program requirements from its Virginia customers through the applicable cost recovery mechanism, and all associated energy, capacity, and environmental attributes shall be assigned to Virginia to the extent that such costs are requested but not recovered from any system customers outside the Commonwealth.\n\t\t\tBy September 1, 2020, the Commission shall direct the initiation of a proceeding for each Phase I and Phase II Utility to review and determine the amount of such costs, net of benefits, that should be allocated to retail customers within the utility’s service territory which have elected to receive electric supply service from a supplier of electric energy other than the utility, and shall direct that tariff provisions be implemented to recover those costs from such customers beginning no later than January 1, 2021. Thereafter, such charges and tariff provisions shall be updated and trued up by the utility on an annual basis, subject to continuing review and approval by the Commission.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E5","next_prefix":"G"},"23":{"id":292524,"text":"1. An accelerated renewable energy buyer may contract with a Phase I or Phase II Utility, or a person other than a Phase I or Phase II Utility, to obtain (i) RECs from RPS eligible resources or (ii) bundled capacity, energy, and RECs from solar or, wind, or zero-carbon electricity generation resources located within the PJM region and initially placed in commercial operation after January 1, 2015, including any contract with a utility for such generation resources that does not allocate the cost of such resources to or recover the cost of such resources from any other customers of the utility that have not voluntarily agreed to pay such cost. Such an accelerated renewable energy buyer may offset all or a portion of its electric load for purposes of RPS compliance through such arrangements. An accelerated renewable energy buyer shall be exempt from the assignment of non-bypassable RPS compliance costs pursuant to subsection F, with the exception of the costs of an offshore wind generating facility pursuant to \u00a7 56-585.1:11, based on the amount of RECs obtained pursuant to this subsection in proportion to the customer’s total electric energy consumption, on an annual basis. An accelerated renewable energy buyer may also contract with a Phase I or Phase II Utility, or a person other than a Phase I or Phase II Utility, to obtain capacity from energy storage facilities located within the network service area of the utility pursuant to this subsection, provided that the costs of such resources are not recovered from any of the utility’s customers who have not voluntarily agreed to pay for such costs. Such accelerated renewable energy buyer shall be exempt from the assignment of non-bypassable RPS Program compliance costs specifically associated with energy storage facilities pursuant to this subsection in proportion to the customer’s total capacity demand on an annual basis. An accelerated renewable energy buyer obtaining RECs only shall not be exempt from costs related to procurement of new solar or onshore wind generation capacity, energy, or environmental attributes, or energy storage facilities, by the utility pursuant to subsections D and E, however, an accelerated renewable energy buyer that is a customer of a Phase II Utility and was subscribed, as of March 1, 2020, to a voluntary companion experimental tariff offering of the utility 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, shall be exempt from 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 the utility pursuant to subsections D and E, based on the amount of RECs associated with the customer’s renewable facilities agreements associated with such tariff offering as of that date in proportion to the customer’s total electric energy consumption, on an annual basis. To the extent that an accelerated renewable energy buyer contracts for the capacity of new solar or wind generation resources or energy storage facilities pursuant to this subsection, the aggregate amount of such nameplate capacity shall be offset from the utility’s procurement requirements pursuant to subsection D. All RECs associated with contracts entered into by an accelerated renewable energy buyer with the utility, or a person other than the utility, for an RPS Program shall not be credited to the utility’s compliance with its RPS requirements, and the calculation of the utility’s RPS Program requirements shall not include the electric load covered by customers certified as accelerated renewable energy buyers.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"G2"},"24":{"id":292525,"text":"Each Phase I or Phase II Utility shall certify, and verify as necessary, to the Commission that the accelerated renewable energy buyer has satisfied the exemption requirements of this subsection for each year, or an accelerated renewable energy buyer may choose to certify satisfaction of this exemption by reporting to the Commission individually. The Commission may promulgate such rules and regulations as may be necessary to implement the provisions of this subsection.","type":"section","prefixes":["G","2"],"prefix":"2","entire_prefix":"G2","prefix_anchor":"G2","level":2,"prior_prefix":"G","next_prefix":"G3"},"25":{"id":292526,"text":"Provided that no incremental costs associated with any contract between a Phase I or Phase II Utility and an accelerated renewable energy buyer is allocated to or recovered from any other customer of the utility, any such contract with an accelerated renewable energy buyer that is a jurisdictional customer of the utility shall not be deemed a special rate or contract requiring Commission approval pursuant to § 56-235.2.","type":"section","prefixes":["G","3"],"prefix":"3","entire_prefix":"G3","prefix_anchor":"G3","level":2,"prior_prefix":"G2","next_prefix":"G4"},"26":{"id":292527,"text":"The State Corporation Commission shall ensure that any distribution and transmission costs associated with new energy generation resources procured pursuant to subsection G of § 56-585.5 of the Code of Virginia, as amended by this act, are justly and reasonably allocated.","type":"section","prefixes":["G","4"],"prefix":"4","entire_prefix":"G4","prefix_anchor":"G4","level":2,"prior_prefix":"G3","next_prefix":"H"},"27":{"id":292528,"text":"No customer of a Phase II Utility with a peak demand in excess of 100 megawatts in 2019 that elected pursuant to subdivision A 3 of § 56-577 to purchase electric energy from a competitive service provider prior to April 1, 2019, shall be allocated any non-bypassable charges pursuant to subsection F for such period that the customer is not purchasing electric energy from the utility, and such customer’s electric load shall not be included in the utility’s RPS Program requirements. No customer of a Phase I Utility that elected pursuant to subdivision A 3 of § 56-577 to purchase electric energy from a competitive service provider prior to February 1, 2019, shall be allocated any non-bypassable charges pursuant to subsection F for such period that the customer is not purchasing electric energy from the utility, and such customer’s electric load shall not be included in the utility’s RPS Program requirements.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G4","next_prefix":"I"},"28":{"id":292529,"text":"In any petition by a Phase I or Phase II Utility for a certificate of public convenience and necessity to construct and operate an electrical generating facility that generates electric energy derived from sunlight submitted pursuant to § 56-580, such utility shall demonstrate that the proposed facility was subject to competitive procurement or solicitation as set forth in subdivision D 3.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"29":{"id":292530,"text":"Notwithstanding any contrary provision of law, for the purposes of this section, any falling water generation facility located in the Commonwealth and commencing commercial operations prior to July 1, 2024, shall be considered a renewable energy portfolio standard (RPS) eligible source.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"30":{"id":292531,"text":"Nothing in this section shall apply to any entity organized under Chapter 9.1 (§ 56-231.15 et seq.).","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J","next_prefix":"L"},"31":{"id":292532,"text":"The Commission shall adopt such rules and regulations as may be necessary to implement the provisions of this section, including a requirement that participants verify whether the RPS Program requirements are met in accordance with this section.","type":"section","prefixes":["L"],"prefix":"L","entire_prefix":"L","prefix_anchor":"L","level":1,"prior_prefix":"K"}},"ancestry":[{"id":13084,"edition_id":1,"name":"Virginia Electric Utility Regulation Act","identifier":"23","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:44:15","date_modified":"2026-06-26 03:44:15","permalink":{"id":250597,"object_type":"structure","relational_id":13084,"identifier":"23","token":"56\/23","url":"\/56\/23\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12881,"edition_id":1,"name":"Public Service Companies","identifier":"56","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:58","date_modified":"2026-06-26 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This law was first created in 2020. The record of its establishment is cataloged in chapters 1193<\/a> and 1194<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2023, chapters 732<\/a>, 803<\/a>, and 804<\/a>; in 2024, chapters 596<\/a> and 597<\/a>; in 2025, chapters 707<\/a>, 708<\/a>, 713<\/a>, and 714<\/a>.<\/p>","references":[{"id":67687,"section_number":"56-585.1","catch_line":"Generation, distribution, and transmission rates after capped rates terminate or expire","order_by":null,"url":"\/56-585.1\/"},{"id":81665,"section_number":"56-585.5","catch_line":"Generation of electricity from renewable and zero carbon sources","order_by":null,"url":"\/56-585.5\/"},{"id":84206,"section_number":"56-585.8","catch_line":"Biennial rate reviews","order_by":null,"url":"\/56-585.8\/"},{"id":75595,"section_number":"56-596.5","catch_line":"Rate increases in certain months prohibited; Phase I Utility","order_by":null,"url":"\/56-596.5\/"}],"refers_to":[{"id":82127,"section_number":"10.1-1105","catch_line":"Additional powers and duties of State Forester","order_by":null,"url":"\/10.1-1105\/"},{"id":79851,"section_number":"10.1-1230","catch_line":"Definitions","order_by":null,"url":"\/10.1-1230\/"},{"id":82671,"section_number":"10.1-1308.1","catch_line":"Streamlined permitting process for qualified energy generators","order_by":null,"url":"\/10.1-1308.1\/"},{"id":74111,"section_number":"22.1-1","catch_line":"(Effective July 1, 2026) Definitions","order_by":null,"url":"\/22.1-1\/"},{"id":77567,"section_number":"56-231.15","catch_line":"Definitions","order_by":null,"url":"\/56-231.15\/"},{"id":55635,"section_number":"56-249.6","catch_line":"Recovery of fuel and purchased power costs","order_by":null,"url":"\/56-249.6\/"},{"id":62210,"section_number":"56-576","catch_line":"Definitions","order_by":null,"url":"\/56-576\/"},{"id":79838,"section_number":"56-577","catch_line":"Schedule for transition to retail competition; Commission authority; exemptions; pilot programs","order_by":null,"url":"\/56-577\/"},{"id":77551,"section_number":"56-580","catch_line":"Transmission and distribution of electric energy","order_by":null,"url":"\/56-580\/"},{"id":67687,"section_number":"56-585.1","catch_line":"Generation, distribution, and transmission rates after capped rates terminate or expire","order_by":null,"url":"\/56-585.1\/"},{"id":82389,"section_number":"56-585.1:11","catch_line":"Development of offshore wind capacity","order_by":null,"url":"\/56-585.1_11\/"},{"id":81665,"section_number":"56-585.5","catch_line":"Generation of electricity from renewable and zero carbon sources","order_by":null,"url":"\/56-585.5\/"}],"permalink":{"id":250727,"object_type":"law","relational_id":81665,"identifier":"56-585.5","token":"56\/23\/56-585.5","url":"\/56-585.5\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-585.5\/","token":"56\/23\/56-585.5","dublin_core":{"Title":"Generation of electricity from renewable and zero carbon sources","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-585.5","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Accelerated renewable energy buyer<\/span>” means a commercial or industrial customer of a Phase I or Phase II Utility<\/span>, irrespective of generation supplier<\/span>, with an aggregate load<\/span> over 25 megawatts in the prior calendar year, that enters into arrangements pursuant to subsection G, as certified by the Commission<\/span>.\n\t\t\t“Aggregate load<\/span>” means the combined electrical load associated with selected accounts of an accelerated renewable energy buyer<\/span> with the same legal entity name as, or in the names of affiliated entities that control<\/span>, are controlled by, or are under common control<\/span> of, such legal entity or are the names of affiliated entities under a common parent.\n\t\t\t“Control<\/span>” has the same meaning as provided in § 56-585.1:11<\/a>.\n\t\t\t“Elementary or secondary<\/span>” has the same meaning as provided in § 22.1-1<\/a>.\n\t\t\t“Falling water<\/span>” means hydroelectric resources, including run-of-river generation from a combined pumped-storage and run-of-river facility. “Falling water<\/span>” does not include electricity generated from pumped-storage facilities.\n\t\t\t“Low-income qualifying projects<\/span>” means a project that provides a minimum of 50 percent of the respective electric output to low-income utility customers<\/span> as that term is defined in § 56-576<\/a>.\n\t\t\t“Phase I Utility<\/span>” has the same meaning as provided in subdivision A 1 of § 56-585.1<\/a>.\n\t\t\t“Phase II Utility<\/span>” has the same meaning as provided in subdivision A 1 of § 56-585.1<\/a>.\n\t\t\t“Previously developed project site<\/span>” means any property, including related buffer areas, if any, that has been previously disturbed or developed for non-single-family residential, nonagricultural, or nonsilvicultural use, regardless of whether such property currently is being used for any purpose. “Previously developed project site<\/span>” includes a brownfield as defined in § 10.1-1230<\/a> or any parcel that has been previously used (i) for a retail, commercial, or industrial purpose; (ii) as a parking lot; (iii) as the site of a parking lot canopy or structure; (iv) for mining, which is any lands affected by coal mining that took place before August 3, 1977, or any lands upon which extraction activities have been permitted by the Department of Energy under Title 45.2; (v) for quarrying; or (vi) as a landfill.\n\t\t\t“Total electric energy<\/span>” means total electric energy<\/span> sold to retail customers<\/span> in the Commonwealth service territory of a Phase I or Phase II Utility<\/span>, other than accelerated renewable energy buyers<\/span>, by the incumbent electric utility<\/span> or other retail supplier<\/span> of electric energy in the previous calendar year, excluding an amount equivalent to the annual percentages of the electric energy that was supplied to such customer from nuclear generating plants located within the Commonwealth in the previous calendar year, provided such nuclear units were operating by July 1, 2020, or from any zero-carbon electric generating facilities not otherwise RPS eligible sources and placed into service in the Commonwealth after July 1, 2030.\n\t\t\t“Zero-carbon electricity<\/span>” means electricity generated by any generating unit that does not emit carbon dioxide as a by-product of combusting fuel to generate electricity. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. By December 31, 2024, except for any coal-fired electric generating units (i) jointly owned with a cooperative<\/span> utility or (ii) owned and operated by a Phase II Utility<\/span> located in the coalfield region of the Commonwealth that co-fires with biomass, any Phase I and Phase II Utility<\/span> shall retire all generating units principally fueled by oil with a rated capacity in excess of 500 megawatts and all coal-fired electric generating units operating in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> By December 31, 2045, except for biomass-fired electric generating units that do not co-fire with coal, each Phase I and II Utility shall retire all other electric generating units located in the Commonwealth that emit carbon as a by-product of combusting fuel to generate electricity. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A Phase I or Phase II Utility<\/span> may petition<\/span> the Commission<\/span> for relief from the requirements of this subsection on the basis that the requirement would threaten the reliability or security of electric service to customers. The Commission<\/span> shall consider in-state and regional transmission entity resources and shall evaluate the reliability of each proposed retirement on a case-by-case basis in ruling upon any such petition<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Each Phase I and Phase II Utility<\/span> shall participate in a renewable energy portfolio standard program (RPS Program) that establishes annual goals for the sale of renewable energy to all retail customers<\/span> in the utility’s service territory, other than accelerated renewable energy buyers<\/span> pursuant to subsection G, regardless of whether such customers purchase electric supply<\/span> service from the utility or from suppliers<\/span> other than the utility. To comply with the RPS Program, each Phase I and Phase II Utility<\/span> shall procure and retire Renewable Energy Certificates (RECs) originating from renewable energy standard eligible sources (RPS eligible sources). For purposes of complying with the RPS Program from 2021 to 2024, a Phase I and Phase II Utility<\/span> may use RECs from any renewable energy facility, as defined in \u00a7 56-576<\/a>, provided that such facilities are located in the Commonwealth or are physically located within the PJM Interconnection, LLC (PJM) region. However, at no time during this period or thereafter may any Phase I or Phase II Utility<\/span> use RECs from (i) renewable thermal energy<\/span>, (ii) renewable thermal energy<\/span> equivalent<\/span>, or (iii) biomass-fired facilities that are outside the Commonwealth. From compliance year 2025 and all years after, each Phase I and Phase II Utility<\/span> may only use RECs from RPS eligible sources for compliance with the RPS Program.\n\t\t\tIn order<\/span> to qualify as RPS eligible sources, such sources must be (a) electric-generating resources that generate electric energy derived from solar or wind located in the Commonwealth or off the Commonwealth’s Atlantic shoreline or in federal waters and interconnected directly into the Commonwealth or physically located within the PJM region; (b) falling water<\/span> resources located in the Commonwealth or physically located within the PJM region that were in operation as of January 1, 2020, that are owned by a Phase I or Phase II Utility<\/span> or for which a Phase I or Phase II Utility<\/span> has entered into a contract<\/span> prior to January 1, 2020, to purchase the energy, capacity, and renewable attributes of such falling water<\/span> resources; (c) non-utility-owned resources from falling water<\/span> that (1) are less than 65 megawatts, (2) began commercial operation after December 31, 1979, or (3) added incremental generation representing greater than 50 percent of the original nameplate capacity after December 31, 1979, provided that such resources are located in the Commonwealth or are physically located within the PJM region; (d) waste-to-energy or landfill gas-fired generating resources located in the Commonwealth and in operation as of January 1, 2020, provided that such resources do not use waste heat from fossil fuel combustion; (e) geothermal heating and cooling systems<\/span> located in the Commonwealth; (f) geothermal electric generating resources<\/span> located in the Commonwealth or physically located within the PJM region; or (g) biomass-fired facilities in operation in the Commonwealth and in operation as of January 1, 2023, that (1) supply<\/span> no more than 10 percent of their annual net electrical generation to the electric grid or no more than 15 percent of their annual total useful energy to any entity other than the manufacturing facility to which the generating source is interconnected and are fueled by forest-product manufacturing residuals, including pulping liquor, bark, paper recycling residuals, biowastes, or biomass, as described in subdivisions A 1, 2, and 4 of \u00a7 10.1-1308.1<\/a>, provided that biomass as described in subdivision A 1 of \u00a7 10.1-1308.1<\/a> results from harvesting in accordance with best management practices for the sustainable harvesting of biomass developed and enforced by the State Forester pursuant to \u00a7 10.1-1105<\/a>, or (2) are owned by a Phase I or Phase II Utility<\/span>, have less than 52 megawatts capacity, and are fueled by forest-product manufacturing residuals, biowastes, or biomass, as described in subdivisions A 1, 2, and 4 of \u00a7 10.1-1308.1<\/a>, provided that biomass as described in subdivision A 1 of \u00a7 10.1-1308.1<\/a> results from harvesting in accordance with best management practices for the sustainable harvesting of biomass developed and enforced by the State Forester pursuant to \u00a7 10.1-1105<\/a>. Regardless of any future maintenance, expansion, or refurbishment activities, the total amount of RECs that may be sold by any RPS eligible source using biomass in any year shall be no more than the number of megawatt hours of electricity produced by that facility in 2022; however, in no year may any RPS eligible source using biomass sell RECs in excess of the actual megawatt-hours of electricity generated by such facility that year. In order<\/span> to comply with the RPS Program, each Phase I and Phase II Utility<\/span> may use and retire the environmental attributes associated with any existing owned or contracted solar, wind, falling water<\/span>, or biomass electric generating resources in operation, or proposed for operation, in the Commonwealth or solar, wind, or falling water<\/span> resources physically located within the PJM region, with such resource qualifying as a Commonwealth-located resource for purposes of this subsection, as of January 1, 2020, provided that such renewable attributes are verified as RECs consistent with the PJM-EIS Generation Attribute Tracking System. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The RPS Program requirements shall be a percentage of the total electric energy<\/span> sold in the previous calendar year and shall be implemented in accordance with the following schedule:\n\t\t\t\tRPS Program\n\t\t\t\tRequirement\n\t\t\t\tRPS Program\n\t\t\t\tRequirement\n\t\t\t\t6%\n\t\t\t\t14%\n\t\t\t\t7%\n\t\t\t\t17%\n\t\t\t\t8%\n\t\t\t\t20%\n\t\t\t\t10%\n\t\t\t\t23%\n\t\t\t\t14%\n\t\t\t\t26%\n\t\t\t\t17%\n\t\t\t\t29%\n\t\t\t\t20%\n\t\t\t\t32%\n\t\t\t\t24%\n\t\t\t\t35%\n\t\t\t\t27%\n\t\t\t\t38%\n\t\t\t\t30%\n\t\t\t\t41%\n\t\t\t\t33%\n\t\t\t\t45%\n\t\t\t\t36%\n\t\t\t\t49%\n\t\t\t\t39%\n\t\t\t\t52%\n\t\t\t\t42%\n\t\t\t\t55%\n\t\t\t\t45%\n\t\t\t\t59%\n\t\t\t\t53%\n\t\t\t\t63%\n\t\t\t\t53%\n\t\t\t\t67%\n\t\t\t\t57%\n\t\t\t\t71%\n\t\t\t\t61%\n\t\t\t\t75%\n\t\t\t\t65%\n\t\t\t\t79%\n\t\t\t\t68%\n\t\t\t\t83%\n\t\t\t\t71%\n\t\t\t\t87%\n\t\t\t\t74%\n\t\t\t\t91%\n\t\t\t\t77%\n\t\t\t\t95%\n\t\t\t\t80%\n\t\t\t\t2045 and\n\t\t\t\tthereafter\n\t\t\t\t100%\n\t\t\t\t84%\n\t\t\t\t88%\n\t\t\t\t92%\n\t\t\t\t96%\n\t\t\t\t2050 and\n\t\t\t\tthereafter\n\t\t\t\t100% <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A Phase II Utility<\/span> shall meet one percent of the RPS Program requirements in any given compliance year with solar, wind, or anaerobic digestion resources of one megawatt or less located in the Commonwealth, with not more than 3,000 kilowatts at any single location or at contiguous locations owned by the same entity or affiliated entities and, to the extent that low-income qualifying projects<\/span> are available, then no less than 25 percent of such one percent shall be composed of low-income qualifying projects<\/span>. To the extent that low-income qualifying projects<\/span> are not available and projects located on or adjacent to public elementary or secondary<\/span> schools are available, the remainder of no less than 25 percent of such one percent shall be composed of projects located on or adjacent to public elementary or secondary<\/span> schools. A project located on or adjacent to a public elementary or secondary<\/span> school shall have a contractual relationship with such school in order<\/span> to qualify for the provisions of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Beginning with the 2025 compliance year and thereafter, at least 75 percent of all RECs used by a Phase II Utility<\/span> in a compliance period shall come from RPS eligible resources located in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Any Phase I or Phase II Utility<\/span> may apply renewable energy sales achieved or RECs acquired in excess of the sales requirement for that RPS Program to the sales requirements for RPS Program requirements in the year in which it was generated and the five calendar years after the renewable energy was generated or the RECs were created. To the extent that a Phase I or Phase II Utility<\/span> procures RECs for RPS Program compliance from resources the utility does not own, the utility shall be entitled to recover the costs of such certificates at its election pursuant to § 56-249.6<\/a> or subdivision A 5 d of § 56-585.1<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Energy from a geothermal heating and cooling system<\/span> is eligible for inclusion in meeting the requirements of the RPS Program. RECs from a geothermal heating and cooling system<\/span> are created based on the amount of energy, converted from BTUs to kilowatt-hours, that is generated by a geothermal heating and cooling system<\/span> for space heating and cooling or water heating. The Commission<\/span> shall determine the form and manner in which such RECs are verified. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Each Phase I or Phase II Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to procure zero-carbon electricity<\/span> generating capacity as set forth in this subsection and energy storage resources as set forth in subsection E. To the extent that a Phase I or Phase II Utility<\/span> constructs or acquires new zero-carbon generating facilities or energy storage resources, the utility shall petition<\/span> the Commission<\/span> for the recovery of the costs of such facilities, at the utility’s election, either through its rates<\/span> for generation and distribution services or through a rate<\/span> adjustment clause pursuant to subdivision A 6 of \u00a7 56-585.1<\/a>. All costs not sought for recovery through a rate<\/span> adjustment clause pursuant to subdivision A 6 of \u00a7 56-585.1<\/a> associated with generating facilities provided by sunlight or onshore or offshore wind are also eligible to be applied by the utility as a customer credit reinvestment offset as provided in subdivision A 8 of \u00a7 56-585.1<\/a>. Costs associated with the purchase of energy, capacity, or environmental attributes from facilities owned by the persons<\/span> other than the utility required by this subsection shall be recovered by the utility either through its rates<\/span> for generation and distribution services or pursuant to \u00a7 56-249.6<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Each Phase I Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of 600 megawatts of generating capacity using energy derived from sunlight or onshore wind.\n\t\t\t\ta. By December 31, 2023, each Phase I Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons<\/span> other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility<\/span>.\n\t\t\t\tb. By December 31, 2027, each Phase I Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons<\/span> other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility<\/span>.\n\t\t\t\tc. By December 31, 2030, each Phase I Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons<\/span> other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility<\/span>.\n\t\t\t\td. Nothing in this subdivision 1 shall prohibit such Phase I Utility<\/span> from constructing, acquiring, or entering into agreements to purchase the energy, capacity, and environmental attributes of more than 600 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, provided the utility receives approval from the Commission<\/span> pursuant to §§ 56-580<\/a> and 56-585.1<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> By December 31, 2035, each Phase II Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to (i) construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of 16,100 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, which shall include 1,100 megawatts of solar generation of<\/span> a nameplate capacity not to exceed three megawatts per individual project and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar facilities owned by persons<\/span> other than a utility, including utility affiliates<\/span> and deregulated affiliates<\/span> and (ii) pursuant to § 56-585.1:11<\/a>, construct or purchase one or more offshore wind generation facilities located off the Commonwealth’s Atlantic shoreline or in federal waters and interconnected directly into the Commonwealth with an aggregate capacity of up to 5,200 megawatts. At least 200 megawatts of the 16,100 megawatts shall be placed on previously developed project sites<\/span>.\n\t\t\t\ta. By December 31, 2024, each Phase II Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 3,000 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons<\/span> other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility<\/span>.\n\t\t\t\tb. By December 31, 2027, each Phase II Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 3,000 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons<\/span> other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility<\/span>.\n\t\t\t\tc. By December 31, 2030, each Phase II Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 4,000 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons<\/span> other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility<\/span>.\n\t\t\t\td. By December 31, 2035, each Phase II Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 6,100 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons<\/span> other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility<\/span>.\n\t\t\t\te. Nothing in this subdivision 2 shall prohibit such Phase II Utility<\/span> from constructing, acquiring, or entering into agreements to purchase the energy, capacity, and environmental attributes of more than 16,100 megawatts of generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, provided the utility receives approval from the Commission<\/span> pursuant to §§ 56-580<\/a> and 56-585.1<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Nothing in this section shall prohibit a utility from petitioning the Commission<\/span> to construct or acquire zero-carbon electricity<\/span> or from entering into contracts<\/span> to procure the energy, capacity, and environmental attributes of zero-carbon electricity<\/span> generating resources in excess of the requirements in subsection B. The Commission<\/span> shall determine whether to approve such petitions<\/span> on a stand-alone basis pursuant to §§ 56-580<\/a> and 56-585.1<\/a>, provided that the Commission<\/span>’s review shall also consider whether the proposed generating capacity (i) is necessary to meet the utility’s native load, (ii) is likely to lower customer fuel costs, (iii) will provide economic development opportunities in the Commonwealth, and (iv) serves a need that cannot be more affordably met with demand-side or energy storage resources.\n\t\t\t\tEach Phase I and Phase II Utility<\/span> shall, at least once every year, conduct a request for proposals for new solar and wind resources. Such requests shall quantify and describe the utility’s need for energy, capacity, or renewable energy certificates. The requests for proposals shall be publicly announced and made available for public review on the utility’s website at least 45 days prior to the closing of such request for proposals. The requests for proposals shall provide, at a minimum, the following information: (a) the size, type, and timing of resources for which the utility anticipates contracting; (b) any minimum thresholds that must be met by respondents; (c) major assumptions to be used by the utility in the bid evaluation process, including environmental emission standards; (d) detailed instructions for preparing bids so that bids can be evaluated on a consistent basis; (e) the preferred general location of additional capacity; and (f) specific information concerning the factors involved in determining the price and non-price criteria used for selecting winning bids. A utility may evaluate responses to requests for proposals based on any criteria that it deems reasonable but shall at a minimum consider the following in its selection process: (1) the status of a particular project’s development; (2) the age of existing generation facilities; (3) the demonstrated financial viability of a project and the developer; (4) a developer’s prior experience in the field; (5) the location and effect on the transmission grid of a generation facility; (6) benefits to the Commonwealth that are associated with particular projects, including regional economic development and the use of goods and services from Virginia businesses; and (7) the environmental impacts of particular resources, including impacts on air quality within the Commonwealth and the carbon intensity of the utility’s generation portfolio. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> In connection with the requirements of this subsection, each Phase I and Phase II Utility<\/span> shall, commencing in 2020 and concluding in 2035, submit annually a plan and petition<\/span> for approval for the development of new solar and onshore wind generation capacity. Such plan shall reflect, in the aggregate and over its duration, the requirements of subsection D concerning the allocation percentages for construction or purchase of such capacity. Such petition<\/span> shall contain any request for approval to construct such facilities pursuant to subsection D of § 56-580<\/a> and a request for approval or update of a rate<\/span> adjustment clause pursuant to subdivision A 6 of § 56-585.1<\/a> to recover the costs of such facilities. Such plan shall also include the utility’s plan to meet the energy storage project targets of subsection E, including the goal of installing at least 10 percent of such energy storage projects behind the meter. In determining whether to approve the utility’s plan and any associated petition<\/span> requests, the Commission<\/span> shall determine whether they are reasonable and prudent and shall give due consideration to (i) the RPS and carbon dioxide reduction requirements in this section; (ii) the promotion of new renewable generation and energy storage resources within the Commonwealth, and associated economic development; and (iii) fuel savings projected to be achieved by the plan. Notwithstanding any other provision of this title, the Commission<\/span>’s final order<\/span> regarding any such petition<\/span> and associated requests shall be entered by the Commission<\/span> not more than six months after the date of the filing of such petition<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> If, in any year, a Phase I or Phase II Utility<\/span> is unable to meet the compliance obligation of the RPS Program requirements or if the cost of RECs necessary to comply with RPS Program requirements exceeds $45 per megawatt hour, such supplier<\/span> shall be obligated to make a deficiency payment equal to $45 for each megawatt-hour shortfall for the year of noncompliance, except that the deficiency payment for any shortfall in procuring RECs for solar, wind, or anaerobic digesters located in the Commonwealth shall be $75 per megawatts hour for resources one megawatt and lower. The amount of any deficiency payment shall increase by one percent annually after 2021. A Phase I or Phase II Utility<\/span> shall be entitled to recover the costs of such payments as a cost of compliance with the requirements of this subsection pursuant to subdivision A 5 d of § 56-585.1<\/a>. All proceeds from the deficiency payments shall be deposited into an interest-bearing account administered by the Department of Energy. In administering this account, the Department of Energy shall manage the account as follows: (i) 50 percent of total revenue shall be directed to job training programs in historically economically disadvantaged communities; (ii) 16 percent of total revenue shall be directed to energy efficiency measures for public facilities; (iii) 30 percent of total revenue shall be directed to renewable energy programs located in historically economically disadvantaged communities; and (iv) four percent of total revenue shall be directed to administrative costs.\n\t\t\t\tFor any project constructed pursuant to this subsection or subsection E, a utility shall, subject to a competitive procurement process, procure equipment from a Virginia-based or United States-based manufacturer using materials<\/span> or product components made in Virginia or the United States, if reasonably available and competitively priced. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> To enhance reliability and performance of the utility’s generation and distribution system, each Phase I and Phase II Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to construct or acquire new, utility-owned energy storage resources. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> By December 31, 2035, each Phase I Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to construct or acquire 400 megawatts of energy storage capacity. Nothing in this subdivision shall prohibit a Phase I Utility<\/span> from constructing or acquiring more than 400 megawatts of energy storage, provided that the utility receives approval from the Commission<\/span> pursuant to §§ 56-580<\/a> and 56-585.1<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> By December 31, 2035, each Phase II Utility<\/span> shall petition<\/span> the Commission<\/span> for necessary approvals to construct or acquire 2,700 megawatts of energy storage capacity. Nothing in this subdivision shall prohibit a Phase II Utility<\/span> from constructing or acquiring more than 2,700 megawatts of energy storage, provided that the utility receives approval from the Commission<\/span> pursuant to §§ 56-580<\/a> and 56-585.1<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> No single energy storage project shall exceed 500 megawatts in size, except that a Phase II Utility<\/span> may procure a single energy storage project up to 800 megawatts. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> All energy storage projects procured pursuant to this subsection shall meet the competitive procurement protocols established in subdivision D 3. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> After July 1, 2020, at least 35 percent of the energy storage facilities placed into service shall be (i) purchased by the public utility from a party<\/span> other than the public utility or (ii) owned by a party<\/span> other than a public utility, with the capacity from such facilities sold to the public utility. By January 1, 2021, the Commission<\/span> shall adopt regulations to achieve the deployment of energy storage for the Commonwealth required in subdivisions 1 and 2, including regulations that set interim targets and update existing utility planning and procurement rules. The regulations shall include programs and mechanisms to deploy energy storage, including competitive solicitations, behind-the-meter incentives, non-wires alternatives programs, and peak demand reduction programs. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> All costs incurred by a Phase I or Phase II Utility<\/span> related to compliance with the requirements of this section or pursuant to § 56-585.1:11<\/a>, including (i) costs of generation facilities powered by sunlight or onshore or offshore wind, or energy storage facilities, that are constructed or acquired by a Phase I or Phase II Utility<\/span> after July 1, 2020, (ii) costs of capacity, energy, or environmental attributes from generation facilities powered by sunlight or onshore or offshore wind, or falling water<\/span>, or energy storage facilities purchased by the utility from persons<\/span> other than the utility through agreements after July 1, 2020, and (iii) all other costs of compliance, including costs associated with the purchase of RECs associated with RPS Program requirements pursuant to this section shall be recovered from all retail customers<\/span> in the service territory of a Phase I or Phase II Utility<\/span> as a non-bypassable charge, irrespective of the generation supplier<\/span> of such customer, except (a) as provided in subsection G for an accelerated renewable energy buyer<\/span> or (b) as provided in subdivision C 3 of § 56-585.1:11<\/a>, with respect to the costs of an offshore wind generation facility, for a PIPP eligible utility customer or an advanced clean energy buyer or qualifying large general service customer, as those terms are defined in § 56-585.1:11<\/a>. If a Phase I or Phase II Utility<\/span> serves customers in more than one jurisdiction<\/span>, such utility shall recover all of the costs of compliance with the RPS Program requirements from its Virginia customers through the applicable cost recovery mechanism, and all associated energy, capacity, and environmental attributes shall be assigned to Virginia to the extent that such costs are requested but not recovered from any system customers outside the Commonwealth.\n\t\t\tBy September 1, 2020, the Commission<\/span> shall direct the initiation of a proceeding for each Phase I and Phase II Utility<\/span> to review and determine the amount of such costs, net of benefits, that should be allocated to retail customers<\/span> within the utility’s service territory which have elected to receive electric supply<\/span> service from a supplier<\/span> of electric energy other than the utility, and shall direct that tariff provisions be implemented to recover those costs from such customers beginning no later than January 1, 2021. Thereafter, such charges and tariff provisions shall be updated and trued up by the utility on an annual basis, subject to continuing review and approval by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> 1. An accelerated renewable energy buyer<\/span> may contract<\/span> with a Phase I or Phase II Utility<\/span>, or a person<\/span> other than a Phase I or Phase II Utility<\/span>, to obtain (i) RECs from RPS eligible resources or (ii) bundled capacity, energy, and RECs from solar or, wind, or zero-carbon electricity<\/span> generation resources located within the PJM region and initially placed in commercial operation after January 1, 2015, including any contract<\/span> with a utility for such generation resources that does not allocate the cost of such resources to or recover the cost of such resources from any other customers of the utility that have not voluntarily agreed to pay such cost. Such an accelerated renewable energy buyer<\/span> may offset all or a portion of its electric load for purposes of RPS compliance through such arrangements. An accelerated renewable energy buyer<\/span> shall be exempt from the assignment of non-bypassable RPS compliance costs pursuant to subsection F, with the exception of the costs of an offshore wind generating facility pursuant to \u00a7 56-585.1:11<\/a>, based on the amount of RECs obtained pursuant to this subsection in proportion to the customer’s total electric energy<\/span> consumption, on an annual basis. An accelerated renewable energy buyer<\/span> may also contract<\/span> with a Phase I or Phase II Utility<\/span>, or a person<\/span> other than a Phase I or Phase II Utility<\/span>, to obtain capacity from energy storage facilities located within the network service area of the utility pursuant to this subsection, provided that the costs of such resources are not recovered from any of the utility’s customers who have not voluntarily agreed to pay for such costs. Such accelerated renewable energy buyer<\/span> shall be exempt from the assignment of non-bypassable RPS Program compliance costs specifically associated with energy storage facilities pursuant to this subsection in proportion to the customer’s total capacity demand on an annual basis. An accelerated renewable energy buyer<\/span> obtaining RECs only shall not be exempt from costs related to procurement of new solar or onshore wind generation capacity, energy, or environmental attributes, or energy storage facilities, by the utility pursuant to subsections D and E, however, an accelerated renewable energy buyer<\/span> that is a customer of a Phase II Utility<\/span> and was subscribed, as of March 1, 2020, to a voluntary companion experimental tariff offering of the utility 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, shall be exempt from 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 the utility pursuant to subsections D and E, based on the amount of RECs associated with the customer’s renewable facilities agreements associated with such tariff offering as of that date in proportion to the customer’s total electric energy<\/span> consumption, on an annual basis. To the extent that an accelerated renewable energy buyer<\/span> contracts<\/span> for the capacity of new solar or wind generation resources or energy storage facilities pursuant to this subsection, the aggregate amount of such nameplate capacity shall be offset from the utility’s procurement requirements pursuant to subsection D. All RECs associated with contracts<\/span> entered into by an accelerated renewable energy buyer<\/span> with the utility, or a person<\/span> other than the utility, for an RPS Program shall not be credited to the utility’s compliance with its RPS requirements, and the calculation of the utility’s RPS Program requirements shall not include the electric load covered by customers certified as accelerated renewable energy buyers<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Each Phase I or Phase II Utility<\/span> shall certify, and verify as necessary, to the Commission<\/span> that the accelerated renewable energy buyer<\/span> has satisfied the exemption requirements of this subsection for each year, or an accelerated renewable energy buyer<\/span> may choose to certify satisfaction of this exemption by reporting to the Commission<\/span> individually. The Commission<\/span> may promulgate such rules and regulations as may be necessary to implement the provisions of this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Provided that no incremental costs associated with any contract<\/span> between a Phase I or Phase II Utility<\/span> and an accelerated renewable energy buyer<\/span> is allocated to or recovered from any other customer of the utility, any such contract<\/span> with an accelerated renewable energy buyer<\/span> that is a jurisdictional customer of the utility shall not be deemed a special rate<\/span> or contract<\/span> requiring Commission<\/span> approval pursuant to § 56-235.2<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The State Corporation<\/span> Commission<\/span> shall ensure that any distribution and transmission costs associated with new energy generation resources procured pursuant to subsection G of § 56-585.5<\/a> of the Code of Virginia, as amended by this act, are justly and reasonably allocated. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> No customer of a Phase II Utility<\/span> with a peak demand in excess of 100 megawatts in 2019 that elected pursuant to subdivision A 3 of § 56-577<\/a> to purchase electric energy from a competitive service provider prior to April 1, 2019, shall be allocated any non-bypassable charges pursuant to subsection F for such period that the customer is not purchasing electric energy from the utility, and such customer’s electric load shall not be included in the utility’s RPS Program requirements. No customer of a Phase I Utility<\/span> that elected pursuant to subdivision A 3 of § 56-577<\/a> to purchase electric energy from a competitive service provider prior to February 1, 2019, shall be allocated any non-bypassable charges pursuant to subsection F for such period that the customer is not purchasing electric energy from the utility, and such customer’s electric load shall not be included in the utility’s RPS Program requirements. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> In any petition<\/span> by a Phase I or Phase II Utility<\/span> for a certificate of public convenience and necessity to construct and operate an electrical generating facility that generates electric energy derived from sunlight submitted pursuant to § 56-580<\/a>, such utility shall demonstrate that the proposed facility was subject to competitive procurement or solicitation as set forth in subdivision D 3. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> Notwithstanding any contrary provision of law<\/span>, for the purposes of this section, any falling water<\/span> generation facility located in the Commonwealth and commencing commercial operations prior to July 1, 2024, shall be considered a renewable energy portfolio standard (RPS) eligible source. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> Nothing in this section shall apply to any entity organized under Chapter 9.1 (§ 56-231.15<\/a> et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

L.<\/span> The Commission<\/span> shall adopt such rules and regulations as may be necessary to implement the provisions of this section, including a requirement that participants verify whether the RPS Program requirements are met in accordance with this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nGENERATION OF ELECTRICITY FROM RENEWABLE AND ZERO CARBON SOURCES (\u00a7 56-585.5)\n\nA. As used in this section:\n\t\t\t“Accelerated renewable energy buyer” means a commercial or\nindustrial customer of a Phase I or Phase II Utility, irrespective of generation\nsupplier, with an aggregate load over 25 megawatts in the prior calendar year,\nthat enters into arrangements pursuant to subsection G, as certified by the\nCommission.\n\t\t\t“Aggregate load” means the combined electrical load associated\nwith selected accounts of an accelerated renewable energy buyer with the same\nlegal entity name as, or in the names of affiliated entities that control, are\ncontrolled by, or are under common control of, such legal entity or are the\nnames of affiliated entities under a common parent.\n\t\t\t“Control” has the same meaning as provided in § 56-585.1:11.\n\t\t\t“Elementary or secondary” has the same meaning as provided in\n§ 22.1-1.\n\t\t\t“Falling water” means hydroelectric resources, including\nrun-of-river generation from a combined pumped-storage and run-of-river\nfacility. “Falling water” does not include electricity generated\nfrom pumped-storage facilities.\n\t\t\t“Low-income qualifying projects” means a project that provides a\nminimum of 50 percent of the respective electric output to low-income utility\ncustomers as that term is defined in § 56-576.\n\t\t\t“Phase I Utility” has the same meaning as provided in subdivision\nA 1 of § 56-585.1.\n\t\t\t“Phase II Utility” has the same meaning as provided in\nsubdivision A 1 of § 56-585.1.\n\t\t\t“Previously developed project site” means any property, including\nrelated buffer areas, if any, that has been previously disturbed or developed\nfor non-single-family residential, nonagricultural, or nonsilvicultural use,\nregardless of whether such property currently is being used for any purpose.\n“Previously developed project site” includes a brownfield as defined\nin § 10.1-1230 or any parcel that has been previously used (i) for a\nretail, commercial, or industrial purpose; (ii) as a parking lot; (iii) as the\nsite of a parking lot canopy or structure; (iv) for mining, which is any lands\naffected by coal mining that took place before August 3, 1977, or any lands upon\nwhich extraction activities have been permitted by the Department of Energy\nunder Title 45.2; (v) for quarrying; or (vi) as a landfill.\n\t\t\t“Total electric energy” means total electric energy sold to\nretail customers in the Commonwealth service territory of a Phase I or Phase II\nUtility, other than accelerated renewable energy buyers, by the incumbent\nelectric utility or other retail supplier of electric energy in the previous\ncalendar year, excluding an amount equivalent to the annual percentages of the\nelectric energy that was supplied to such customer from nuclear generating\nplants located within the Commonwealth in the previous calendar year, provided\nsuch nuclear units were operating by July 1, 2020, or from any zero-carbon\nelectric generating facilities not otherwise RPS eligible sources and placed\ninto service in the Commonwealth after July 1, 2030.\n\t\t\t“Zero-carbon electricity” means electricity generated by any\ngenerating unit that does not emit carbon dioxide as a by-product of combusting\nfuel to generate electricity.\n\nB. 1. By December 31, 2024, except for any coal-fired electric generating units\n(i) jointly owned with a cooperative utility or (ii) owned and operated by a\nPhase II Utility located in the coalfield region of the Commonwealth that\nco-fires with biomass, any Phase I and Phase II Utility shall retire all\ngenerating units principally fueled by oil with a rated capacity in excess of\n500 megawatts and all coal-fired electric generating units operating in the\nCommonwealth.\n\n 2. By December 31, 2045, except for biomass-fired electric generating units\n that do not co-fire with coal, each Phase I and II Utility shall retire all\n other electric generating units located in the Commonwealth that emit carbon\n as a by-product of combusting fuel to generate electricity.\n\n 3. A Phase I or Phase II Utility may petition the Commission for relief from\n the requirements of this subsection on the basis that the requirement would\n threaten the reliability or security of electric service to customers. The\n Commission shall consider in-state and regional transmission entity resources\n and shall evaluate the reliability of each proposed retirement on a\n case-by-case basis in ruling upon any such petition.\n\nC. Each Phase I and Phase II Utility shall participate in a renewable energy\nportfolio standard program (RPS Program) that establishes annual goals for the\nsale of renewable energy to all retail customers in the utility’s service\nterritory, other than accelerated renewable energy buyers pursuant to subsection\nG, regardless of whether such customers purchase electric supply service from\nthe utility or from suppliers other than the utility. To comply with the RPS\nProgram, each Phase I and Phase II Utility shall procure and retire Renewable\nEnergy Certificates (RECs) originating from renewable energy standard eligible\nsources (RPS eligible sources). For purposes of complying with the RPS Program\nfrom 2021 to 2024, a Phase I and Phase II Utility may use RECs from any\nrenewable energy facility, as defined in \u00a7 56-576, provided that such\nfacilities are located in the Commonwealth or are physically located within the\nPJM Interconnection, LLC (PJM) region. However, at no time during this period or\nthereafter may any Phase I or Phase II Utility use RECs from (i) renewable\nthermal energy, (ii) renewable thermal energy equivalent, or (iii) biomass-fired\nfacilities that are outside the Commonwealth. From compliance year 2025 and all\nyears after, each Phase I and Phase II Utility may only use RECs from RPS\neligible sources for compliance with the RPS Program.\n\t\t\tIn order to qualify as RPS eligible sources, such sources must be (a)\nelectric-generating resources that generate electric energy derived from solar\nor wind located in the Commonwealth or off the Commonwealth’s Atlantic\nshoreline or in federal waters and interconnected directly into the Commonwealth\nor physically located within the PJM region; (b) falling water resources located\nin the Commonwealth or physically located within the PJM region that were in\noperation as of January 1, 2020, that are owned by a Phase I or Phase II Utility\nor for which a Phase I or Phase II Utility has entered into a contract prior to\nJanuary 1, 2020, to purchase the energy, capacity, and renewable attributes of\nsuch falling water resources; (c) non-utility-owned resources from falling water\nthat (1) are less than 65 megawatts, (2) began commercial operation after\nDecember 31, 1979, or (3) added incremental generation representing greater than\n50 percent of the original nameplate capacity after December 31, 1979, provided\nthat such resources are located in the Commonwealth or are physically located\nwithin the PJM region; (d) waste-to-energy or landfill gas-fired generating\nresources located in the Commonwealth and in operation as of January 1, 2020,\nprovided that such resources do not use waste heat from fossil fuel combustion;\n(e) geothermal heating and cooling systems located in the Commonwealth; (f)\ngeothermal electric generating resources located in the Commonwealth or\nphysically located within the PJM region; or (g) biomass-fired facilities in\noperation in the Commonwealth and in operation as of January 1, 2023, that (1)\nsupply no more than 10 percent of their annual net electrical generation to the\nelectric grid or no more than 15 percent of their annual total useful energy to\nany entity other than the manufacturing facility to which the generating source\nis interconnected and are fueled by forest-product manufacturing residuals,\nincluding pulping liquor, bark, paper recycling residuals, biowastes, or\nbiomass, as described in subdivisions A 1, 2, and 4 of \u00a7 10.1-1308.1, provided\nthat biomass as described in subdivision A 1 of \u00a7 10.1-1308.1 results from\nharvesting in accordance with best management practices for the sustainable\nharvesting of biomass developed and enforced by the State Forester pursuant to\n\u00a7 10.1-1105, or (2) are owned by a Phase I or Phase II Utility, have less than\n52 megawatts capacity, and are fueled by forest-product manufacturing residuals,\nbiowastes, or biomass, as described in subdivisions A 1, 2, and 4 of \u00a7\n10.1-1308.1, provided that biomass as described in subdivision A 1 of \u00a7\n10.1-1308.1 results from harvesting in accordance with best management practices\nfor the sustainable harvesting of biomass developed and enforced by the State\nForester pursuant to \u00a7 10.1-1105. Regardless of any future maintenance,\nexpansion, or refurbishment activities, the total amount of RECs that may be\nsold by any RPS eligible source using biomass in any year shall be no more than\nthe number of megawatt hours of electricity produced by that facility in 2022;\nhowever, in no year may any RPS eligible source using biomass sell RECs in\nexcess of the actual megawatt-hours of electricity generated by such facility\nthat year. In order to comply with the RPS Program, each Phase I and Phase II\nUtility may use and retire the environmental attributes associated with any\nexisting owned or contracted solar, wind, falling water, or biomass electric\ngenerating resources in operation, or proposed for operation, in the\nCommonwealth or solar, wind, or falling water resources physically located\nwithin the PJM region, with such resource qualifying as a Commonwealth-located\nresource for purposes of this subsection, as of January 1, 2020, provided that\nsuch renewable attributes are verified as RECs consistent with the PJM-EIS\nGeneration Attribute Tracking System.\n\n 1. The RPS Program requirements shall be a percentage of the total electric\n energy sold in the previous calendar year and shall be implemented in\n accordance with the following schedule:\n \t\t\t\tRPS Program\n \t\t\t\tRequirement\n \t\t\t\tRPS Program\n \t\t\t\tRequirement\n \t\t\t\t6%\n \t\t\t\t14%\n \t\t\t\t7%\n \t\t\t\t17%\n \t\t\t\t8%\n \t\t\t\t20%\n \t\t\t\t10%\n \t\t\t\t23%\n \t\t\t\t14%\n \t\t\t\t26%\n \t\t\t\t17%\n \t\t\t\t29%\n \t\t\t\t20%\n \t\t\t\t32%\n \t\t\t\t24%\n \t\t\t\t35%\n \t\t\t\t27%\n \t\t\t\t38%\n \t\t\t\t30%\n \t\t\t\t41%\n \t\t\t\t33%\n \t\t\t\t45%\n \t\t\t\t36%\n \t\t\t\t49%\n \t\t\t\t39%\n \t\t\t\t52%\n \t\t\t\t42%\n \t\t\t\t55%\n \t\t\t\t45%\n \t\t\t\t59%\n \t\t\t\t53%\n \t\t\t\t63%\n \t\t\t\t53%\n \t\t\t\t67%\n \t\t\t\t57%\n \t\t\t\t71%\n \t\t\t\t61%\n \t\t\t\t75%\n \t\t\t\t65%\n \t\t\t\t79%\n \t\t\t\t68%\n \t\t\t\t83%\n \t\t\t\t71%\n \t\t\t\t87%\n \t\t\t\t74%\n \t\t\t\t91%\n \t\t\t\t77%\n \t\t\t\t95%\n \t\t\t\t80%\n \t\t\t\t2045 and\n \t\t\t\tthereafter\n \t\t\t\t100%\n \t\t\t\t84%\n \t\t\t\t88%\n \t\t\t\t92%\n \t\t\t\t96%\n \t\t\t\t2050 and\n \t\t\t\tthereafter\n \t\t\t\t100%\n\n 2. A Phase II Utility shall meet one percent of the RPS Program requirements\n in any given compliance year with solar, wind, or anaerobic digestion\n resources of one megawatt or less located in the Commonwealth, with not more\n than 3,000 kilowatts at any single location or at contiguous locations owned\n by the same entity or affiliated entities and, to the extent that low-income\n qualifying projects are available, then no less than 25 percent of such one\n percent shall be composed of low-income qualifying projects. To the extent\n that low-income qualifying projects are not available and projects located on\n or adjacent to public elementary or secondary schools are available, the\n remainder of no less than 25 percent of such one percent shall be composed of\n projects located on or adjacent to public elementary or secondary schools. A\n project located on or adjacent to a public elementary or secondary school\n shall have a contractual relationship with such school in order to qualify for\n the provisions of this section.\n\n 3. Beginning with the 2025 compliance year and thereafter, at least 75 percent\n of all RECs used by a Phase II Utility in a compliance period shall come from\n RPS eligible resources located in the Commonwealth.\n\n 4. Any Phase I or Phase II Utility may apply renewable energy sales achieved\n or RECs acquired in excess of the sales requirement for that RPS Program to\n the sales requirements for RPS Program requirements in the year in which it\n was generated and the five calendar years after the renewable energy was\n generated or the RECs were created. To the extent that a Phase I or Phase II\n Utility procures RECs for RPS Program compliance from resources the utility\n does not own, the utility shall be entitled to recover the costs of such\n certificates at its election pursuant to § 56-249.6 or subdivision A 5 d\n of § 56-585.1.\n\n 5. Energy from a geothermal heating and cooling system is eligible for\n inclusion in meeting the requirements of the RPS Program. RECs from a\n geothermal heating and cooling system are created based on the amount of\n energy, converted from BTUs to kilowatt-hours, that is generated by a\n geothermal heating and cooling system for space heating and cooling or water\n heating. The Commission shall determine the form and manner in which such RECs\n are verified.\n\nD. Each Phase I or Phase II Utility shall petition the Commission for necessary\napprovals to procure zero-carbon electricity generating capacity as set forth in\nthis subsection and energy storage resources as set forth in subsection E. To\nthe extent that a Phase I or Phase II Utility constructs or acquires new\nzero-carbon generating facilities or energy storage resources, the utility shall\npetition the Commission for the recovery of the costs of such facilities, at the\nutility’s election, either through its rates for generation and\ndistribution services or through a rate adjustment clause pursuant to\nsubdivision A 6 of \u00a7 56-585.1. All costs not sought for recovery through a rate\nadjustment clause pursuant to subdivision A 6 of \u00a7 56-585.1 associated with\ngenerating facilities provided by sunlight or onshore or offshore wind are also\neligible to be applied by the utility as a customer credit reinvestment offset\nas provided in subdivision A 8 of \u00a7 56-585.1. Costs associated with the\npurchase of energy, capacity, or environmental attributes from facilities owned\nby the persons other than the utility required by this subsection shall be\nrecovered by the utility either through its rates for generation and\ndistribution services or pursuant to \u00a7 56-249.6.\n\n 1. Each Phase I Utility shall petition the Commission for necessary approvals\n to construct, acquire, or enter into agreements to purchase the energy,\n capacity, and environmental attributes of 600 megawatts of generating capacity\n using energy derived from sunlight or onshore wind.\n \t\t\t\ta. By December 31, 2023, each Phase I Utility shall petition the\n Commission for necessary approvals to construct, acquire, or enter into\n agreements to purchase the energy, capacity, and environmental attributes of\n at least 200 megawatts of generating capacity located in the Commonwealth\n using energy derived from sunlight or onshore wind, and 35 percent of such\n generating capacity procured shall be from the purchase of energy, capacity,\n and environmental attributes from solar or onshore wind facilities owned by\n persons other than the utility, with the remainder, in the aggregate, being\n from construction or acquisition by such Phase I Utility.\n \t\t\t\tb. By December 31, 2027, each Phase I Utility shall petition the\n Commission for necessary approvals to construct, acquire, or enter into\n agreements to purchase the energy, capacity, and environmental attributes of\n at least 200 megawatts of additional generating capacity located in the\n Commonwealth using energy derived from sunlight or onshore wind, and 35\n percent of such generating capacity procured shall be from the purchase of\n energy, capacity, and environmental attributes from solar or onshore wind\n facilities owned by persons other than the utility, with the remainder, in the\n aggregate, being from construction or acquisition by such Phase I Utility.\n \t\t\t\tc. By December 31, 2030, each Phase I Utility shall petition the\n Commission for necessary approvals to construct, acquire, or enter into\n agreements to purchase the energy, capacity, and environmental attributes of\n at least 200 megawatts of additional generating capacity located in the\n Commonwealth using energy derived from sunlight or onshore wind, and 35\n percent of such generating capacity procured shall be from the purchase of\n energy, capacity, and environmental attributes from solar or onshore wind\n facilities owned by persons other than the utility, with the remainder, in the\n aggregate, being from construction or acquisition by such Phase I Utility.\n \t\t\t\td. Nothing in this subdivision 1 shall prohibit such Phase I Utility from\n constructing, acquiring, or entering into agreements to purchase the energy,\n capacity, and environmental attributes of more than 600 megawatts of\n generating capacity located in the Commonwealth using energy derived from\n sunlight or onshore wind, provided the utility receives approval from the\n Commission pursuant to §§ 56-580 and 56-585.1.\n\n 2. By December 31, 2035, each Phase II Utility shall petition the Commission\n for necessary approvals to (i) construct, acquire, or enter into agreements to\n purchase the energy, capacity, and environmental attributes of 16,100\n megawatts of generating capacity located in the Commonwealth using energy\n derived from sunlight or onshore wind, which shall include 1,100 megawatts of\n solar generation of a nameplate capacity not to exceed three megawatts per\n individual project and 35 percent of such generating capacity procured shall\n be from the purchase of energy, capacity, and environmental attributes from\n solar facilities owned by persons other than a utility, including utility\n affiliates and deregulated affiliates and (ii) pursuant to § 56-585.1:11,\n construct or purchase one or more offshore wind generation facilities located\n off the Commonwealth’s Atlantic shoreline or in federal waters and\n interconnected directly into the Commonwealth with an aggregate capacity of up\n to 5,200 megawatts. At least 200 megawatts of the 16,100 megawatts shall be\n placed on previously developed project sites.\n \t\t\t\ta. By December 31, 2024, each Phase II Utility shall petition the\n Commission for necessary approvals to construct, acquire, or enter into\n agreements to purchase the energy, capacity, and environmental attributes of\n at least 3,000 megawatts of generating capacity located in the Commonwealth\n using energy derived from sunlight or onshore wind, and 35 percent of such\n generating capacity procured shall be from the purchase of energy, capacity,\n and environmental attributes from solar or onshore wind facilities owned by\n persons other than the utility, with the remainder, in the aggregate, being\n from construction or acquisition by such Phase II Utility.\n \t\t\t\tb. By December 31, 2027, each Phase II Utility shall petition the\n Commission for necessary approvals to construct, acquire, or enter into\n agreements to purchase the energy, capacity, and environmental attributes of\n at least 3,000 megawatts of additional generating capacity located in the\n Commonwealth using energy derived from sunlight or onshore wind, and 35\n percent of such generating capacity procured shall be from the purchase of\n energy, capacity, and environmental attributes from solar or onshore wind\n facilities owned by persons other than the utility, with the remainder, in the\n aggregate, being from construction or acquisition by such Phase II Utility.\n \t\t\t\tc. By December 31, 2030, each Phase II Utility shall petition the\n Commission for necessary approvals to construct, acquire, or enter into\n agreements to purchase the energy, capacity, and environmental attributes of\n at least 4,000 megawatts of additional generating capacity located in the\n Commonwealth using energy derived from sunlight or onshore wind, and 35\n percent of such generating capacity procured shall be from the purchase of\n energy, capacity, and environmental attributes from solar or onshore wind\n facilities owned by persons other than the utility, with the remainder, in the\n aggregate, being from construction or acquisition by such Phase II Utility.\n \t\t\t\td. By December 31, 2035, each Phase II Utility shall petition the\n Commission for necessary approvals to construct, acquire, or enter into\n agreements to purchase the energy, capacity, and environmental attributes of\n at least 6,100 megawatts of additional generating capacity located in the\n Commonwealth using energy derived from sunlight or onshore wind, and 35\n percent of such generating capacity procured shall be from the purchase of\n energy, capacity, and environmental attributes from solar or onshore wind\n facilities owned by persons other than the utility, with the remainder, in the\n aggregate, being from construction or acquisition by such Phase II Utility.\n \t\t\t\te. Nothing in this subdivision 2 shall prohibit such Phase II Utility from\n constructing, acquiring, or entering into agreements to purchase the energy,\n capacity, and environmental attributes of more than 16,100 megawatts of\n generating capacity located in the Commonwealth using energy derived from\n sunlight or onshore wind, provided the utility receives approval from the\n Commission pursuant to §§ 56-580 and 56-585.1.\n\n 3. Nothing in this section shall prohibit a utility from petitioning the\n Commission to construct or acquire zero-carbon electricity or from entering\n into contracts to procure the energy, capacity, and environmental attributes\n of zero-carbon electricity generating resources in excess of the requirements\n in subsection B. The Commission shall determine whether to approve such\n petitions on a stand-alone basis pursuant to §§ 56-580 and 56-585.1,\n provided that the Commission’s review shall also consider whether the\n proposed generating capacity (i) is necessary to meet the utility’s\n native load, (ii) is likely to lower customer fuel costs, (iii) will provide\n economic development opportunities in the Commonwealth, and (iv) serves a need\n that cannot be more affordably met with demand-side or energy storage\n resources.\n \t\t\t\tEach Phase I and Phase II Utility shall, at least once every year, conduct\n a request for proposals for new solar and wind resources. Such requests shall\n quantify and describe the utility’s need for energy, capacity, or\n renewable energy certificates. The requests for proposals shall be publicly\n announced and made available for public review on the utility’s website\n at least 45 days prior to the closing of such request for proposals. The\n requests for proposals shall provide, at a minimum, the following information:\n (a) the size, type, and timing of resources for which the utility anticipates\n contracting; (b) any minimum thresholds that must be met by respondents; (c)\n major assumptions to be used by the utility in the bid evaluation process,\n including environmental emission standards; (d) detailed instructions for\n preparing bids so that bids can be evaluated on a consistent basis; (e) the\n preferred general location of additional capacity; and (f) specific\n information concerning the factors involved in determining the price and\n non-price criteria used for selecting winning bids. A utility may evaluate\n responses to requests for proposals based on any criteria that it deems\n reasonable but shall at a minimum consider the following in its selection\n process: (1) the status of a particular project’s development; (2) the\n age of existing generation facilities; (3) the demonstrated financial\n viability of a project and the developer; (4) a developer’s prior\n experience in the field; (5) the location and effect on the transmission grid\n of a generation facility; (6) benefits to the Commonwealth that are associated\n with particular projects, including regional economic development and the use\n of goods and services from Virginia businesses; and (7) the environmental\n impacts of particular resources, including impacts on air quality within the\n Commonwealth and the carbon intensity of the utility’s generation\n portfolio.\n\n 4. In connection with the requirements of this subsection, each Phase I and\n Phase II Utility shall, commencing in 2020 and concluding in 2035, submit\n annually a plan and petition for approval for the development of new solar and\n onshore wind generation capacity. Such plan shall reflect, in the aggregate\n and over its duration, the requirements of subsection D concerning the\n allocation percentages for construction or purchase of such capacity. Such\n petition shall contain any request for approval to construct such facilities\n pursuant to subsection D of § 56-580 and a request for approval or update\n of a rate adjustment clause pursuant to subdivision A 6 of § 56-585.1 to\n recover the costs of such facilities. Such plan shall also include the\n utility’s plan to meet the energy storage project targets of subsection\n E, including the goal of installing at least 10 percent of such energy storage\n projects behind the meter. In determining whether to approve the\n utility’s plan and any associated petition requests, the Commission\n shall determine whether they are reasonable and prudent and shall give due\n consideration to (i) the RPS and carbon dioxide reduction requirements in this\n section; (ii) the promotion of new renewable generation and energy storage\n resources within the Commonwealth, and associated economic development; and\n (iii) fuel savings projected to be achieved by the plan. Notwithstanding any\n other provision of this title, the Commission’s final order regarding\n any such petition and associated requests shall be entered by the Commission\n not more than six months after the date of the filing of such petition.\n\n 5. If, in any year, a Phase I or Phase II Utility is unable to meet the\n compliance obligation of the RPS Program requirements or if the cost of RECs\n necessary to comply with RPS Program requirements exceeds $45 per megawatt\n hour, such supplier shall be obligated to make a deficiency payment equal to\n $45 for each megawatt-hour shortfall for the year of noncompliance, except\n that the deficiency payment for any shortfall in procuring RECs for solar,\n wind, or anaerobic digesters located in the Commonwealth shall be $75 per\n megawatts hour for resources one megawatt and lower. The amount of any\n deficiency payment shall increase by one percent annually after 2021. A Phase\n I or Phase II Utility shall be entitled to recover the costs of such payments\n as a cost of compliance with the requirements of this subsection pursuant to\n subdivision A 5 d of § 56-585.1. All proceeds from the deficiency\n payments shall be deposited into an interest-bearing account administered by\n the Department of Energy. In administering this account, the Department of\n Energy shall manage the account as follows: (i) 50 percent of total revenue\n shall be directed to job training programs in historically economically\n disadvantaged communities; (ii) 16 percent of total revenue shall be directed\n to energy efficiency measures for public facilities; (iii) 30 percent of total\n revenue shall be directed to renewable energy programs located in historically\n economically disadvantaged communities; and (iv) four percent of total revenue\n shall be directed to administrative costs.\n \t\t\t\tFor any project constructed pursuant to this subsection or subsection E, a\n utility shall, subject to a competitive procurement process, procure equipment\n from a Virginia-based or United States-based manufacturer using materials or\n product components made in Virginia or the United States, if reasonably\n available and competitively priced.\n\nE. To enhance reliability and performance of the utility’s generation and\ndistribution system, each Phase I and Phase II Utility shall petition the\nCommission for necessary approvals to construct or acquire new, utility-owned\nenergy storage resources.\n\n 1. By December 31, 2035, each Phase I Utility shall petition the Commission\n for necessary approvals to construct or acquire 400 megawatts of energy\n storage capacity. Nothing in this subdivision shall prohibit a Phase I Utility\n from constructing or acquiring more than 400 megawatts of energy storage,\n provided that the utility receives approval from the Commission pursuant to\n §§ 56-580 and 56-585.1.\n\n 2. By December 31, 2035, each Phase II Utility shall petition the Commission\n for necessary approvals to construct or acquire 2,700 megawatts of energy\n storage capacity. Nothing in this subdivision shall prohibit a Phase II\n Utility from constructing or acquiring more than 2,700 megawatts of energy\n storage, provided that the utility receives approval from the Commission\n pursuant to §§ 56-580 and 56-585.1.\n\n 3. No single energy storage project shall exceed 500 megawatts in size, except\n that a Phase II Utility may procure a single energy storage project up to 800\n megawatts.\n\n 4. All energy storage projects procured pursuant to this subsection shall meet\n the competitive procurement protocols established in subdivision D 3.\n\n 5. After July 1, 2020, at least 35 percent of the energy storage facilities\n placed into service shall be (i) purchased by the public utility from a party\n other than the public utility or (ii) owned by a party other than a public\n utility, with the capacity from such facilities sold to the public utility. By\n January 1, 2021, the Commission shall adopt regulations to achieve the\n deployment of energy storage for the Commonwealth required in subdivisions 1\n and 2, including regulations that set interim targets and update existing\n utility planning and procurement rules. The regulations shall include programs\n and mechanisms to deploy energy storage, including competitive solicitations,\n behind-the-meter incentives, non-wires alternatives programs, and peak demand\n reduction programs.\n\nF. All costs incurred by a Phase I or Phase II Utility related to compliance\nwith the requirements of this section or pursuant to § 56-585.1:11,\nincluding (i) costs of generation facilities powered by sunlight or onshore or\noffshore wind, or energy storage facilities, that are constructed or acquired by\na Phase I or Phase II Utility after July 1, 2020, (ii) costs of capacity,\nenergy, or environmental attributes from generation facilities powered by\nsunlight or onshore or offshore wind, or falling water, or energy storage\nfacilities purchased by the utility from persons other than the utility through\nagreements after July 1, 2020, and (iii) all other costs of compliance,\nincluding costs associated with the purchase of RECs associated with RPS Program\nrequirements pursuant to this section shall be recovered from all retail\ncustomers in the service territory of a Phase I or Phase II Utility as a\nnon-bypassable charge, irrespective of the generation supplier of such customer,\nexcept (a) as provided in subsection G for an accelerated renewable energy buyer\nor (b) as provided in subdivision C 3 of § 56-585.1:11, with respect to the\ncosts of an offshore wind generation facility, for a PIPP eligible utility\ncustomer or an advanced clean energy buyer or qualifying large general service\ncustomer, as those terms are defined in § 56-585.1:11. If a Phase I or\nPhase II Utility serves customers in more than one jurisdiction, such utility\nshall recover all of the costs of compliance with the RPS Program requirements\nfrom its Virginia customers through the applicable cost recovery mechanism, and\nall associated energy, capacity, and environmental attributes shall be assigned\nto Virginia to the extent that such costs are requested but not recovered from\nany system customers outside the Commonwealth.\n\t\t\tBy September 1, 2020, the Commission shall direct the initiation of a\nproceeding for each Phase I and Phase II Utility to review and determine the\namount of such costs, net of benefits, that should be allocated to retail\ncustomers within the utility’s service territory which have elected to\nreceive electric supply service from a supplier of electric energy other than\nthe utility, and shall direct that tariff provisions be implemented to recover\nthose costs from such customers beginning no later than January 1, 2021.\nThereafter, such charges and tariff provisions shall be updated and trued up by\nthe utility on an annual basis, subject to continuing review and approval by the\nCommission.\n\nG. 1. An accelerated renewable energy buyer may contract with a Phase I or Phase\nII Utility, or a person other than a Phase I or Phase II Utility, to obtain (i)\nRECs from RPS eligible resources or (ii) bundled capacity, energy, and RECs from\nsolar or, wind, or zero-carbon electricity generation resources located within\nthe PJM region and initially placed in commercial operation after January 1,\n2015, including any contract with a utility for such generation resources that\ndoes not allocate the cost of such resources to or recover the cost of such\nresources from any other customers of the utility that have not voluntarily\nagreed to pay such cost. Such an accelerated renewable energy buyer may offset\nall or a portion of its electric load for purposes of RPS compliance through\nsuch arrangements. An accelerated renewable energy buyer shall be exempt from\nthe assignment of non-bypassable RPS compliance costs pursuant to subsection F,\nwith the exception of the costs of an offshore wind generating facility pursuant\nto \u00a7 56-585.1:11, based on the amount of RECs obtained pursuant to this\nsubsection in proportion to the customer’s total electric energy\nconsumption, on an annual basis. An accelerated renewable energy buyer may also\ncontract with a Phase I or Phase II Utility, or a person other than a Phase I or\nPhase II Utility, to obtain capacity from energy storage facilities located\nwithin the network service area of the utility pursuant to this subsection,\nprovided that the costs of such resources are not recovered from any of the\nutility’s customers who have not voluntarily agreed to pay for such costs.\nSuch accelerated renewable energy buyer shall be exempt from the assignment of\nnon-bypassable RPS Program compliance costs specifically associated with energy\nstorage facilities pursuant to this subsection in proportion to the\ncustomer’s total capacity demand on an annual basis. An accelerated\nrenewable energy buyer obtaining RECs only shall not be exempt from costs\nrelated to procurement of new solar or onshore wind generation capacity, energy,\nor environmental attributes, or energy storage facilities, by the utility\npursuant to subsections D and E, however, an accelerated renewable energy buyer\nthat is a customer of a Phase II Utility and was subscribed, as of March 1,\n2020, to a voluntary companion experimental tariff offering of the utility for\nthe purchase of renewable attributes from renewable energy facilities that\nrequires a renewable facilities agreement and the purchase of a minimum of 2,000\nrenewable attributes annually, shall be exempt from allocation of the net costs\nrelated to procurement of new solar or onshore wind generation capacity, energy,\nor environmental attributes, or energy storage facilities, by the utility\npursuant to subsections D and E, based on the amount of RECs associated with the\ncustomer’s renewable facilities agreements associated with such tariff\noffering as of that date in proportion to the customer’s total electric\nenergy consumption, on an annual basis. To the extent that an accelerated\nrenewable energy buyer contracts for the capacity of new solar or wind\ngeneration resources or energy storage facilities pursuant to this subsection,\nthe aggregate amount of such nameplate capacity shall be offset from the\nutility’s procurement requirements pursuant to subsection D. All RECs\nassociated with contracts entered into by an accelerated renewable energy buyer\nwith the utility, or a person other than the utility, for an RPS Program shall\nnot be credited to the utility’s compliance with its RPS requirements, and\nthe calculation of the utility’s RPS Program requirements shall not\ninclude the electric load covered by customers certified as accelerated\nrenewable energy buyers.\n\n 2. Each Phase I or Phase II Utility shall certify, and verify as necessary, to\n the Commission that the accelerated renewable energy buyer has satisfied the\n exemption requirements of this subsection for each year, or an accelerated\n renewable energy buyer may choose to certify satisfaction of this exemption by\n reporting to the Commission individually. The Commission may promulgate such\n rules and regulations as may be necessary to implement the provisions of this\n subsection.\n\n 3. Provided that no incremental costs associated with any contract between a\n Phase I or Phase II Utility and an accelerated renewable energy buyer is\n allocated to or recovered from any other customer of the utility, any such\n contract with an accelerated renewable energy buyer that is a jurisdictional\n customer of the utility shall not be deemed a special rate or contract\n requiring Commission approval pursuant to § 56-235.2.\n\n 4. The State Corporation Commission shall ensure that any distribution and\n transmission costs associated with new energy generation resources procured\n pursuant to subsection G of § 56-585.5 of the Code of Virginia, as\n amended by this act, are justly and reasonably allocated.\n\nH. No customer of a Phase II Utility with a peak demand in excess of 100\nmegawatts in 2019 that elected pursuant to subdivision A 3 of § 56-577 to\npurchase electric energy from a competitive service provider prior to April 1,\n2019, shall be allocated any non-bypassable charges pursuant to subsection F for\nsuch period that the customer is not purchasing electric energy from the\nutility, and such customer’s electric load shall not be included in the\nutility’s RPS Program requirements. No customer of a Phase I Utility that\nelected pursuant to subdivision A 3 of § 56-577 to purchase electric energy\nfrom a competitive service provider prior to February 1, 2019, shall be\nallocated any non-bypassable charges pursuant to subsection F for such period\nthat the customer is not purchasing electric energy from the utility, and such\ncustomer’s electric load shall not be included in the utility’s RPS\nProgram requirements.\n\nI. In any petition by a Phase I or Phase II Utility for a certificate of public\nconvenience and necessity to construct and operate an electrical generating\nfacility that generates electric energy derived from sunlight submitted pursuant\nto § 56-580, such utility shall demonstrate that the proposed facility was\nsubject to competitive procurement or solicitation as set forth in subdivision D\n3.\n\nJ. Notwithstanding any contrary provision of law, for the purposes of this\nsection, any falling water generation facility located in the Commonwealth and\ncommencing commercial operations prior to July 1, 2024, shall be considered a\nrenewable energy portfolio standard (RPS) eligible source.\n\nK. Nothing in this section shall apply to any entity organized under Chapter 9.1\n(§ 56-231.15 et seq.).\n\nL. The Commission shall adopt such rules and regulations as may be necessary to\nimplement the provisions of this section, including a requirement that\nparticipants verify whether the RPS Program requirements are met in accordance\nwith this section.\n\nHISTORY: 2020, cc. 1193, 1194; 2021, Sp. Sess. I, cc. 140, 328, 532; 2023, cc.\n732, 803, 804; 2024, cc. 596, 597; 2025, cc. 707, 708, 713, 714.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}