{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-596.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-596.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-596.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-596.2.html"}],"law_id":57383,"edition_id":1,"section_id":57383,"structure_id":13084,"section_number":"56-596.2","catch_line":"Energy efficiency policy and programs; financial assistance for low-income customers","history":"2018, c. 296; 2019, cc. 397, 398; 2020, cc. 1193, 1194, 1208; 2021, Sp. Sess. I, cc. 401, 532; 2024, cc. 794, 818.","full_text":"A\n\nNotwithstanding subsection G of § 56-580, or any other provision of law, each incumbent investor-owned electric utility shall develop proposed energy efficiency programs. Any program shall provide for the submission of a petition or petitions for approval to design, implement, and operate energy efficiency programs pursuant to subdivision A 5 c of § 56-585.1. At least 15 percent of such proposed costs of energy efficiency programs shall be allocated to programs designed to benefit low-income, elderly, or disabled individuals or veterans.B\n\nNotwithstanding any other provision of law, each investor-owned incumbent electric utility shall implement energy efficiency programs and measures to achieve the following total annual energy savings:1\n\nFor Phase I electric utilities:\n\t\t\t\ta. In calendar year 2022, at least 0.5 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tb. In calendar year 2023, at least 1.0 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tc. In calendar year 2024, at least 1.5 percent of the average annual energy jurisdictional retail sales by that utility in 2019; and\n\t\t\t\td. In calendar year 2025, at least 2.0 percent of the average annual energy jurisdictional retail sales by that utility in 2019;2\n\nFor Phase II electric utilities:\n\t\t\t\ta. In calendar year 2022, at least 1.25 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tb. In calendar year 2023, at least 2.5 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tc. In calendar year 2024, at least 3.75 percent of the average annual energy jurisdictional retail sales by that utility in 2019; and\n\t\t\t\td. In calendar year 2025, at least 5.0 percent of the average annual energy jurisdictional retail sales by that utility in 2019;3\n\nFor the time period 2026 through 2028, the Commission shall, after notice and hearing, establish new energy efficiency savings targets measured as a percentage of the average annual energy jurisdictional retail sales by that utility in 2019; and4\n\nFor the time period 2029 through 2031, and for every successive three-year period thereafter, the Commission shall establish new energy efficiency savings targets measured as a percentage of the average annual energy jurisdictional retail sales by that utility in 2019, which shall be the greatest level of energy savings that the Commission finds is feasible and cost-effective pursuant to the Commission’s cost-effectiveness test regulations. To assist the Commission in setting such targets, the Commission shall retain a qualified expert, compensated pursuant to subsection E of § 56-592.1, to independently conduct an energy efficiency potential study for each Phase I and Phase II Utility’s service territory, and each such utility shall provide to the Commission and its expert any information necessary to complete such study if such information is reasonably available. For every subsequent three-year period, the Commission shall retain an expert, compensated pursuant to subsection E of § 56-592.1, to update the energy efficiency potential study for each Phase I and Phase II Utility’s service territory. A utility may recover any costs it incurs to assist the Commission with the energy efficiency potential study if the Commission finds such costs are reasonable and prudent. Such costs shall not be considered when determining whether an energy efficiency measure or program is cost-effective. In advance of the effective date of such targets, the Commission shall, after notice and opportunity for hearing, initiate proceedings to establish such targets. As part of such proceeding, the Commission shall consider the feasibility of achieving energy efficiency goals and future energy efficiency savings through cost-effective programs and measures. The Commission shall annually review the feasibility of the energy efficiency program savings in this section and report to the Chairs of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor and the Secretary of Natural and Historic Resources and the Secretary of Commerce and Trade on such feasibility by October 1, 2022, and each year thereafter.C\n\nThe projected costs for the utility to design, implement, and operate such energy efficiency programs and portfolios of programs shall be no less than an aggregate amount of $140 million for a Phase I Utility and $870 million for a Phase II Utility for the period beginning July 1, 2018, and ending July 1, 2028, including any existing approved energy efficiency programs. In developing such portfolio of energy efficiency programs and portfolios of programs, each utility shall utilize a stakeholder process, to be facilitated by an independent monitor compensated under the funding provided pursuant to subsection E of § 56-592.1, to provide input and feedback on (i) the development of such energy efficiency programs and portfolios of programs; (ii) compliance with the total annual energy savings set forth in this subsection and how such savings affect utility integrated resource plans; (iii) recommended policy reforms by which the General Assembly or the Commission can ensure maximum and cost-effective deployment of energy efficiency technology across the Commonwealth; and (iv) best practices for evaluation, measurement, and verification for the purposes of assessing compliance with the total annual energy savings set forth in subsection B. Utilities shall utilize the services of a third party to perform evaluation, measurement, and verification services to determine a utility’s total annual savings as required by this subsection, as well as the annual and lifecycle net and gross energy and capacity savings, related emissions reductions, and other quantifiable benefits of each program; total customer bill savings that the programs and portfolios produce; and utility spending on each program, including any associated administrative costs. The third-party evaluator shall include and review each utility’s avoided costs and cost-benefit analyses. The findings and reports of such third parties shall be concurrently provided to both the Commission and the utility, and the Commission shall make each such final annual report easily and publicly accessible online. Such stakeholder process shall include the participation of representatives from each utility, relevant directors, deputy directors, and staff members of the Commission who participate in approval and oversight of utility energy efficiency savings programs, the office of Consumer Counsel of the Attorney General, the Department of Energy, energy efficiency program implementers, energy efficiency providers, residential and small business customers, and any other interested stakeholder whom the independent monitor deems appropriate for inclusion in such process. The independent monitor shall convene meetings of the participants in the stakeholder process not less frequently than twice in each calendar year during the period beginning July 1, 2019, and ending July 1, 2028. The independent monitor shall report on the status of the energy efficiency stakeholder process, including (a) the objectives established by the stakeholder group during this process related to programs to be proposed, (b) recommendations related to programs to be proposed that result from the stakeholder process, and (c) the status of those recommendations, in addition to the petitions filed and the determination thereon, to the Governor, the Commission, and the Chairmen of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor on July 1, 2019, and annually thereafter through July 1, 2028.D\n\nNothing in this section shall apply to any entity organized under Chapter 9.1 (§ 56-231.15 et seq.).","order_by":null,"text":{"0":{"id":210293,"text":"Notwithstanding subsection G of § 56-580, or any other provision of law, each incumbent investor-owned electric utility shall develop proposed energy efficiency programs. Any program shall provide for the submission of a petition or petitions for approval to design, implement, and operate energy efficiency programs pursuant to subdivision A 5 c of § 56-585.1. At least 15 percent of such proposed costs of energy efficiency programs shall be allocated to programs designed to benefit low-income, elderly, or disabled individuals or veterans.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":210294,"text":"Notwithstanding any other provision of law, each investor-owned incumbent electric utility shall implement energy efficiency programs and measures to achieve the following total annual energy savings:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":210295,"text":"For Phase I electric utilities:\n\t\t\t\ta. In calendar year 2022, at least 0.5 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tb. In calendar year 2023, at least 1.0 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tc. In calendar year 2024, at least 1.5 percent of the average annual energy jurisdictional retail sales by that utility in 2019; and\n\t\t\t\td. In calendar year 2025, at least 2.0 percent of the average annual energy jurisdictional retail sales by that utility in 2019;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":210296,"text":"For Phase II electric utilities:\n\t\t\t\ta. In calendar year 2022, at least 1.25 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tb. In calendar year 2023, at least 2.5 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tc. In calendar year 2024, at least 3.75 percent of the average annual energy jurisdictional retail sales by that utility in 2019; and\n\t\t\t\td. In calendar year 2025, at least 5.0 percent of the average annual energy jurisdictional retail sales by that utility in 2019;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":210297,"text":"For the time period 2026 through 2028, the Commission shall, after notice and hearing, establish new energy efficiency savings targets measured as a percentage of the average annual energy jurisdictional retail sales by that utility in 2019; and","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":210298,"text":"For the time period 2029 through 2031, and for every successive three-year period thereafter, the Commission shall establish new energy efficiency savings targets measured as a percentage of the average annual energy jurisdictional retail sales by that utility in 2019, which shall be the greatest level of energy savings that the Commission finds is feasible and cost-effective pursuant to the Commission’s cost-effectiveness test regulations. To assist the Commission in setting such targets, the Commission shall retain a qualified expert, compensated pursuant to subsection E of § 56-592.1, to independently conduct an energy efficiency potential study for each Phase I and Phase II Utility’s service territory, and each such utility shall provide to the Commission and its expert any information necessary to complete such study if such information is reasonably available. For every subsequent three-year period, the Commission shall retain an expert, compensated pursuant to subsection E of § 56-592.1, to update the energy efficiency potential study for each Phase I and Phase II Utility’s service territory. A utility may recover any costs it incurs to assist the Commission with the energy efficiency potential study if the Commission finds such costs are reasonable and prudent. Such costs shall not be considered when determining whether an energy efficiency measure or program is cost-effective. In advance of the effective date of such targets, the Commission shall, after notice and opportunity for hearing, initiate proceedings to establish such targets. As part of such proceeding, the Commission shall consider the feasibility of achieving energy efficiency goals and future energy efficiency savings through cost-effective programs and measures. The Commission shall annually review the feasibility of the energy efficiency program savings in this section and report to the Chairs of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor and the Secretary of Natural and Historic Resources and the Secretary of Commerce and Trade on such feasibility by October 1, 2022, and each year thereafter.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":210299,"text":"The projected costs for the utility to design, implement, and operate such energy efficiency programs and portfolios of programs shall be no less than an aggregate amount of $140 million for a Phase I Utility and $870 million for a Phase II Utility for the period beginning July 1, 2018, and ending July 1, 2028, including any existing approved energy efficiency programs. In developing such portfolio of energy efficiency programs and portfolios of programs, each utility shall utilize a stakeholder process, to be facilitated by an independent monitor compensated under the funding provided pursuant to subsection E of § 56-592.1, to provide input and feedback on (i) the development of such energy efficiency programs and portfolios of programs; (ii) compliance with the total annual energy savings set forth in this subsection and how such savings affect utility integrated resource plans; (iii) recommended policy reforms by which the General Assembly or the Commission can ensure maximum and cost-effective deployment of energy efficiency technology across the Commonwealth; and (iv) best practices for evaluation, measurement, and verification for the purposes of assessing compliance with the total annual energy savings set forth in subsection B. Utilities shall utilize the services of a third party to perform evaluation, measurement, and verification services to determine a utility’s total annual savings as required by this subsection, as well as the annual and lifecycle net and gross energy and capacity savings, related emissions reductions, and other quantifiable benefits of each program; total customer bill savings that the programs and portfolios produce; and utility spending on each program, including any associated administrative costs. The third-party evaluator shall include and review each utility’s avoided costs and cost-benefit analyses. The findings and reports of such third parties shall be concurrently provided to both the Commission and the utility, and the Commission shall make each such final annual report easily and publicly accessible online. Such stakeholder process shall include the participation of representatives from each utility, relevant directors, deputy directors, and staff members of the Commission who participate in approval and oversight of utility energy efficiency savings programs, the office of Consumer Counsel of the Attorney General, the Department of Energy, energy efficiency program implementers, energy efficiency providers, residential and small business customers, and any other interested stakeholder whom the independent monitor deems appropriate for inclusion in such process. The independent monitor shall convene meetings of the participants in the stakeholder process not less frequently than twice in each calendar year during the period beginning July 1, 2019, and ending July 1, 2028. The independent monitor shall report on the status of the energy efficiency stakeholder process, including (a) the objectives established by the stakeholder group during this process related to programs to be proposed, (b) recommendations related to programs to be proposed that result from the stakeholder process, and (c) the status of those recommendations, in addition to the petitions filed and the determination thereon, to the Governor, the Commission, and the Chairmen of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor on July 1, 2019, and annually thereafter through July 1, 2028.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"D"},"7":{"id":210300,"text":"Nothing in this section shall apply to any entity organized under Chapter 9.1 (§ 56-231.15 et seq.).","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"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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customers","url":"\/56-596.2_2\/","token":"56\/23\/56-596.2_2","metadata":false},{"id":71672,"structure_id":13084,"section_number":"56-596.3","catch_line":"Electric generation, transmission, and distribution; report","url":"\/56-596.3\/","token":"56\/23\/56-596.3","metadata":false},{"id":54473,"structure_id":13084,"section_number":"56-596.4","catch_line":"Electric utilities; local reliability data","url":"\/56-596.4\/","token":"56\/23\/56-596.4","metadata":false},{"id":75595,"structure_id":13084,"section_number":"56-596.5","catch_line":"Rate increases in certain months prohibited; Phase I Utility","url":"\/56-596.5\/","token":"56\/23\/56-596.5","metadata":false},{"id":80765,"structure_id":13084,"section_number":"56-596.6","catch_line":"Distribution cost sharing program","url":"\/56-596.6\/","token":"56\/23\/56-596.6","metadata":false}],"previous_section":{"id":82462,"structure_id":13084,"section_number":"56-596.1","catch_line":"New generating facilities utilizing energy derived from sunlight and from wind; report","url":"\/56-596.1\/","token":"56\/23\/56-596.1","metadata":false},"next_section":{"id":80361,"structure_id":13084,"section_number":"56-596.2:1","catch_line":"Incentives for energy conservation measures and solar energy equipment","url":"\/56-596.2_1\/","token":"56\/23\/56-596.2_1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-596.2\/","history_text":"

This law was first created in 2018. The record of its establishment is cataloged in chapter 296<\/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 2019, chapters 397<\/a> and 398<\/a>; in 2020, chapters 1193<\/a>, 1194<\/a>, and 1208<\/a>; in 2024, chapters 794<\/a> and 818<\/a>.<\/p>","references":[{"id":62210,"section_number":"56-576","catch_line":"Definitions","order_by":null,"url":"\/56-576\/"},{"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":80361,"section_number":"56-596.2:1","catch_line":"Incentives for energy conservation measures and solar energy equipment","order_by":null,"url":"\/56-596.2_1\/"}],"refers_to":[{"id":77567,"section_number":"56-231.15","catch_line":"Definitions","order_by":null,"url":"\/56-231.15\/"},{"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":75703,"section_number":"56-592.1","catch_line":"Consumer education program; scope and funding","order_by":null,"url":"\/56-592.1\/"}],"permalink":{"id":250831,"object_type":"law","relational_id":57383,"identifier":"56-596.2","token":"56\/23\/56-596.2","url":"\/56-596.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-596.2\/","token":"56\/23\/56-596.2","dublin_core":{"Title":"Energy efficiency policy and programs; financial assistance for low-income customers","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-596.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Notwithstanding subsection G of § 56-580<\/a>, or any other provision of law<\/span>, each incumbent investor-owned electric utility<\/span> shall develop proposed energy efficiency programs<\/span>. Any program shall provide for the submission of a petition<\/span> or petitions<\/span> for approval to design, implement, and operate energy efficiency programs<\/span> pursuant to subdivision A 5 c of § 56-585.1<\/a>. At least 15 percent of such proposed costs of energy efficiency programs<\/span> shall be allocated to programs designed to benefit low-income, elderly, or disabled individuals or veterans. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding any other provision of law<\/span>, each investor-owned incumbent electric utility<\/span> shall implement energy efficiency programs<\/span> and measures to achieve the following total annual energy savings<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> For Phase I electric utilities:\n\t\t\t\ta. In calendar year 2022, at least 0.5 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tb. In calendar year 2023, at least 1.0 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tc. In calendar year 2024, at least 1.5 percent of the average annual energy jurisdictional retail sales by that utility in 2019; and\n\t\t\t\td. In calendar year 2025, at least 2.0 percent of the average annual energy jurisdictional retail sales by that utility in 2019; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For Phase II electric utilities:\n\t\t\t\ta. In calendar year 2022, at least 1.25 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tb. In calendar year 2023, at least 2.5 percent of the average annual energy jurisdictional retail sales by that utility in 2019;\n\t\t\t\tc. In calendar year 2024, at least 3.75 percent of the average annual energy jurisdictional retail sales by that utility in 2019; and\n\t\t\t\td. In calendar year 2025, at least 5.0 percent of the average annual energy jurisdictional retail sales by that utility in 2019; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> For the time period 2026 through 2028, the Commission<\/span> shall, after notice and hearing<\/span>, establish new energy efficiency savings targets measured as a percentage of the average annual energy jurisdictional retail sales by that utility in 2019; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> For the time period 2029 through 2031, and for every successive three-year period thereafter, the Commission<\/span> shall establish new energy efficiency savings targets measured as a percentage of the average annual energy jurisdictional retail sales by that utility in 2019, which shall be the greatest level of energy savings that the Commission<\/span> finds is feasible and cost-effective pursuant to the Commission<\/span>’s cost-effectiveness test regulations. To assist the Commission<\/span> in setting such targets, the Commission<\/span> shall retain a qualified expert, compensated pursuant to subsection E of § 56-592.1<\/a>, to independently conduct an energy efficiency potential study for each Phase I and Phase II Utility’s service territory, and each such utility shall provide to the Commission<\/span> and its expert any information necessary to complete such study if such information is reasonably available. For every subsequent three-year period, the Commission<\/span> shall retain an expert, compensated pursuant to subsection E of § 56-592.1<\/a>, to update the energy efficiency potential study for each Phase I and Phase II Utility’s service territory. A utility may recover any costs it incurs to assist the Commission<\/span> with the energy efficiency potential study if the Commission<\/span> finds such costs are reasonable and prudent. Such costs shall not be considered when determining whether an energy efficiency measure or program is cost-effective. In advance of the effective date of such targets, the Commission<\/span> shall, after notice and opportunity for hearing<\/span>, initiate proceedings to establish such targets. As part of such proceeding, the Commission<\/span> shall consider the feasibility of achieving energy efficiency goals and future energy efficiency savings through cost-effective programs and measures. The Commission<\/span> shall annually review the feasibility of the energy efficiency program<\/span> savings in this section and report to the Chairs of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor and the Secretary of Natural and Historic Resources and the Secretary of Commerce and Trade on such feasibility by October 1, 2022, and each year thereafter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The projected costs for the utility to design, implement, and operate such energy efficiency programs<\/span> and portfolios of programs shall be no less than an aggregate amount of $140 million for a Phase I Utility and $870 million for a Phase II Utility for the period beginning July 1, 2018, and ending July 1, 2028, including any existing approved energy efficiency programs<\/span>. In developing such portfolio of energy efficiency programs<\/span> and portfolios of programs, each utility shall utilize a stakeholder process, to be facilitated by an independent monitor compensated under the funding provided pursuant to subsection E of § 56-592.1<\/a>, to provide input and feedback on (i) the development of such energy efficiency programs<\/span> and portfolios of programs; (ii) compliance with the total annual energy savings<\/span> set forth in this subsection and how such savings affect utility integrated resource plans; (iii) recommended policy reforms by which the General Assembly or the Commission<\/span> can ensure maximum and cost-effective deployment of energy efficiency technology across the Commonwealth; and (iv) best practices for evaluation, measurement, and verification for the purposes of assessing compliance with the total annual energy savings<\/span> set forth in subsection B. Utilities shall utilize the services of a third party<\/span> to perform evaluation, measurement, and verification services to determine a utility’s total annual savings as required by this subsection, as well as the annual and lifecycle net and gross energy and capacity savings, related emissions reductions, and other quantifiable benefits of each program; total customer bill savings that the programs and portfolios produce; and utility spending on each program, including any associated administrative costs. The third-party<\/span> evaluator shall include and review each utility’s avoided costs and cost-benefit analyses. The findings<\/span> and reports of such third parties shall be concurrently provided to both the Commission<\/span> and the utility, and the Commission<\/span> shall make each such final annual report easily and publicly accessible online. Such stakeholder process shall include the participation of representatives from each utility, relevant directors, deputy directors, and staff members of the Commission<\/span> who participate in approval and oversight of utility energy efficiency savings programs, the office of Consumer Counsel<\/span> of the Attorney General<\/span>, the Department of Energy, energy efficiency program<\/span> implementers, energy efficiency providers, residential and small business customers, and any other interested stakeholder whom the independent monitor deems appropriate for inclusion in such process. The independent monitor shall convene meetings of the participants in the stakeholder process not less frequently than twice in each calendar year during the period beginning July 1, 2019, and ending July 1, 2028. The independent monitor shall report on the status of the energy efficiency stakeholder process, including (a) the objectives established by the stakeholder group during this process related to programs to be proposed, (b) recommendations related to programs to be proposed that result from the stakeholder process, and (c) the status of those recommendations, in addition to the petitions<\/span> filed and the determination thereon, to the Governor, the Commission<\/span>, and the Chairmen of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor on July 1, 2019, and annually thereafter through July 1, 2028. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/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>","plain_text":" CODE OF VIRGINIA\n\nENERGY EFFICIENCY POLICY AND PROGRAMS; FINANCIAL ASSISTANCE FOR LOW-INCOME\nCUSTOMERS (\u00a7 56-596.2)\n\nA. Notwithstanding subsection G of § 56-580, or any other provision of law,\neach incumbent investor-owned electric utility shall develop proposed energy\nefficiency programs. Any program shall provide for the submission of a petition\nor petitions for approval to design, implement, and operate energy efficiency\nprograms pursuant to subdivision A 5 c of § 56-585.1. At least 15 percent\nof such proposed costs of energy efficiency programs shall be allocated to\nprograms designed to benefit low-income, elderly, or disabled individuals or\nveterans.\n\nB. Notwithstanding any other provision of law, each investor-owned incumbent\nelectric utility shall implement energy efficiency programs and measures to\nachieve the following total annual energy savings:\n\n 1. For Phase I electric utilities:\n \t\t\t\ta. In calendar year 2022, at least 0.5 percent of the average annual\n energy jurisdictional retail sales by that utility in 2019;\n \t\t\t\tb. In calendar year 2023, at least 1.0 percent of the average annual\n energy jurisdictional retail sales by that utility in 2019;\n \t\t\t\tc. In calendar year 2024, at least 1.5 percent of the average annual\n energy jurisdictional retail sales by that utility in 2019; and\n \t\t\t\td. In calendar year 2025, at least 2.0 percent of the average annual\n energy jurisdictional retail sales by that utility in 2019;\n\n 2. For Phase II electric utilities:\n \t\t\t\ta. In calendar year 2022, at least 1.25 percent of the average annual\n energy jurisdictional retail sales by that utility in 2019;\n \t\t\t\tb. In calendar year 2023, at least 2.5 percent of the average annual\n energy jurisdictional retail sales by that utility in 2019;\n \t\t\t\tc. In calendar year 2024, at least 3.75 percent of the average annual\n energy jurisdictional retail sales by that utility in 2019; and\n \t\t\t\td. In calendar year 2025, at least 5.0 percent of the average annual\n energy jurisdictional retail sales by that utility in 2019;\n\n 3. For the time period 2026 through 2028, the Commission shall, after notice\n and hearing, establish new energy efficiency savings targets measured as a\n percentage of the average annual energy jurisdictional retail sales by that\n utility in 2019; and\n\n 4. For the time period 2029 through 2031, and for every successive three-year\n period thereafter, the Commission shall establish new energy efficiency\n savings targets measured as a percentage of the average annual energy\n jurisdictional retail sales by that utility in 2019, which shall be the\n greatest level of energy savings that the Commission finds is feasible and\n cost-effective pursuant to the Commission’s cost-effectiveness test\n regulations. To assist the Commission in setting such targets, the Commission\n shall retain a qualified expert, compensated pursuant to subsection E of\n § 56-592.1, to independently conduct an energy efficiency potential study\n for each Phase I and Phase II Utility’s service territory, and each such\n utility shall provide to the Commission and its expert any information\n necessary to complete such study if such information is reasonably available.\n For every subsequent three-year period, the Commission shall retain an expert,\n compensated pursuant to subsection E of § 56-592.1, to update the energy\n efficiency potential study for each Phase I and Phase II Utility’s\n service territory. A utility may recover any costs it incurs to assist the\n Commission with the energy efficiency potential study if the Commission finds\n such costs are reasonable and prudent. Such costs shall not be considered when\n determining whether an energy efficiency measure or program is cost-effective.\n In advance of the effective date of such targets, the Commission shall, after\n notice and opportunity for hearing, initiate proceedings to establish such\n targets. As part of such proceeding, the Commission shall consider the\n feasibility of achieving energy efficiency goals and future energy efficiency\n savings through cost-effective programs and measures. The Commission shall\n annually review the feasibility of the energy efficiency program savings in\n this section and report to the Chairs of the House Committee on Labor and\n Commerce and the Senate Committee on Commerce and Labor and the Secretary of\n Natural and Historic Resources and the Secretary of Commerce and Trade on such\n feasibility by October 1, 2022, and each year thereafter.\n\nC. The projected costs for the utility to design, implement, and operate such\nenergy efficiency programs and portfolios of programs shall be no less than an\naggregate amount of $140 million for a Phase I Utility and $870 million for a\nPhase II Utility for the period beginning July 1, 2018, and ending July 1, 2028,\nincluding any existing approved energy efficiency programs. In developing such\nportfolio of energy efficiency programs and portfolios of programs, each utility\nshall utilize a stakeholder process, to be facilitated by an independent monitor\ncompensated under the funding provided pursuant to subsection E of §\n56-592.1, to provide input and feedback on (i) the development of such energy\nefficiency programs and portfolios of programs; (ii) compliance with the total\nannual energy savings set forth in this subsection and how such savings affect\nutility integrated resource plans; (iii) recommended policy reforms by which the\nGeneral Assembly or the Commission can ensure maximum and cost-effective\ndeployment of energy efficiency technology across the Commonwealth; and (iv)\nbest practices for evaluation, measurement, and verification for the purposes of\nassessing compliance with the total annual energy savings set forth in\nsubsection B. Utilities shall utilize the services of a third party to perform\nevaluation, measurement, and verification services to determine a\nutility’s total annual savings as required by this subsection, as well as\nthe annual and lifecycle net and gross energy and capacity savings, related\nemissions reductions, and other quantifiable benefits of each program; total\ncustomer bill savings that the programs and portfolios produce; and utility\nspending on each program, including any associated administrative costs. The\nthird-party evaluator shall include and review each utility’s avoided\ncosts and cost-benefit analyses. The findings and reports of such third parties\nshall be concurrently provided to both the Commission and the utility, and the\nCommission shall make each such final annual report easily and publicly\naccessible online. Such stakeholder process shall include the participation of\nrepresentatives from each utility, relevant directors, deputy directors, and\nstaff members of the Commission who participate in approval and oversight of\nutility energy efficiency savings programs, the office of Consumer Counsel of\nthe Attorney General, the Department of Energy, energy efficiency program\nimplementers, energy efficiency providers, residential and small business\ncustomers, and any other interested stakeholder whom the independent monitor\ndeems appropriate for inclusion in such process. The independent monitor shall\nconvene meetings of the participants in the stakeholder process not less\nfrequently than twice in each calendar year during the period beginning July 1,\n2019, and ending July 1, 2028. The independent monitor shall report on the\nstatus of the energy efficiency stakeholder process, including (a) the\nobjectives established by the stakeholder group during this process related to\nprograms to be proposed, (b) recommendations related to programs to be proposed\nthat result from the stakeholder process, and (c) the status of those\nrecommendations, in addition to the petitions filed and the determination\nthereon, to the Governor, the Commission, and the Chairmen of the House\nCommittee on Labor and Commerce and the Senate Committee on Commerce and Labor\non July 1, 2019, and annually thereafter through July 1, 2028.\n\nD. Nothing in this section shall apply to any entity organized under Chapter 9.1\n(§ 56-231.15 et seq.).\n\nHISTORY: 2018, c. 296; 2019, cc. 397, 398; 2020, cc. 1193, 1194, 1208; 2021, Sp.\nSess. I, cc. 401, 532; 2024, cc. 794, 818.","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}}