                                 CODE OF VIRGINIA

ENERGY CONVERSION OR ENERGY TOLLING AGREEMENTS (§ 10.1-1331)

If the Governor seeks to include the Commonwealth as a full participant in RGGI
or another carbon trading program with an open auction of allowances, or if the
Department implements the final carbon trading regulation as approved by the
Board on April 19, 2019, (the Final Regulation) in order to establish a carbon
dioxide cap and trade program that limits and reduces the total carbon dioxide
emissions released by certain electric generation facilities and that complies
with the RGGI model rule, then (i) the definition of the term
&#8220;life-of-the-unit contractual arrangement&#8221; under the Final
Regulation shall include any energy conversion or energy tolling agreement that
has a primary term of 20 years or more and pursuant to which the purchaser is
required to deliver fuel to the CO2 budget source or CO2 budget unit and is
entitled to receive all of the nameplate capacity and associated energy
generated by such source or unit for the entire contractual period and (ii) any
purchaser under an energy conversion or energy tolling agreement shall be
responsible for acquiring any CO2 allowances required under the Final Regulation
in relation to a CO2 budget source or CO2 budget unit that is subject to such
agreement.

HISTORY: 2020, cc. 1219, 1280.