                                 CODE OF VIRGINIA

ENERGY SUBMETERING, ENERGY ALLOCATION EQUIPMENT, SEWER AND WATER SUBMETERING
EQUIPMENT, AND RATIO UTILITY BILLING SYSTEMS; LOCAL GOVERNMENT FEES (§
55.1-1212)

A. As used in this section:
			&#8220;Energy allocation equipment&#8221; means the same as that term is
defined in &#xA7; 56-245.2.
			&#8220;Energy submetering equipment&#8221; has the same meaning ascribed to
&#8220;submetering equipment&#8221; in &#xA7; 56-245.2.
			&#8220;Local government fees&#8221; means any local government charges or
fees assessed against a residential building, including charges or fees for
stormwater, recycling, trash collection, elevator testing, fire or life safety
testing, or residential rental inspection programs.
			&#8220;Ratio utility billing system&#8221; means a program that utilizes a
mathematical formula for allocating, among the tenants in a residential
building, the actual or anticipated water, sewer, electrical, oil, or natural
gas billings billed to the residential building owner from a third-party
provider of the utility service. Permitted allocation methods may include
formulas based on square footage, occupancy, number of bedrooms, or some other
specific method agreed to by the residential building owner and the tenant in
the rental agreement or lease.
			&#8220;Residential building&#8221; means all of the individual units served
through the same utility-owned meter within a residential building that is
defined in &#xA7; 56-245.2 as an apartment building or house or all of the
individual dwelling units served through the same utility-owned meter within a
manufactured home park as defined in &#xA7; 55.1-1300.
			&#8220;Water and sewer submetering equipment&#8221; means equipment used to
measure actual water or sewer usage in any residential building when such
equipment is not owned or controlled by the utility or other provider of water
or sewer service that provides service to the residential building.

B. Energy submetering equipment, energy allocation equipment, water and sewer
submetering equipment, or a ratio utility billing system may be used in a
residential building if clearly stated in the rental agreement or lease for the
residential building. All energy submetering equipment and energy allocation
equipment shall meet the requirements and standards established and enforced by
the State Corporation Commission pursuant to &#xA7; 56-245.3.

C. If energy submetering equipment, energy allocation equipment, or water and
sewer submetering equipment is used in any residential building, the owner,
manager, or operator of such residential building shall bill the tenant for
electricity, oil, natural gas, or water and sewer for the same billing period as
the utility serving the residential building, unless the rental agreement or
lease expressly provides otherwise. The owner, manager, or operator of such
residential building may charge and collect from the tenant additional service
charges, including monthly billing fees, account set-up fees, or account
move-out fees, to cover the actual costs of administrative expenses and billing
charged to the residential building owner, manager, or operator by a third-party
provider of such services, provided that such charges are agreed to by the
residential building owner and the tenant in the rental agreement or lease. The
residential building owner may require the tenant to pay a late charge of up to
$5 if the tenant fails to make payment when due, which shall not be less than 15
days following the date of mailing or delivery of the bill sent pursuant to this
section.

D. If a ratio utility billing system is used in any residential building, in
lieu of increasing the rent, the owner, manager, or operator of such residential
building may employ such a program that utilizes a mathematical formula for
allocating, among the tenants in a residential building, the actual or
anticipated water, sewer, electrical, oil, or natural gas billings billed to the
residential building owner from a third-party provider of the utility service.
The owner, manager, or operator of the residential building may charge and
collect from the tenant additional service charges, including monthly billing
fees, account set-up fees, or account move-out fees, to cover the actual costs
of administrative expenses and billings charged to the residential building
owner, manager, or operator by a third-party provider of such services, provided
that such charges are agreed to by the residential building owner and the tenant
in the rental agreement or lease. The residential building owner may require the
tenant to pay a late charge of up to $5 if the tenant fails to make payment when
due, which shall not be less than 15 days following the date of mailing or
delivery of the bill sent pursuant to this section. The late charge shall be
deemed rent (i) as defined in &#xA7; 55.1-1200 if a ratio utility billing system
is used in a residential multifamily dwelling unit subject to this chapter or
(ii) as defined in &#xA7; 55.1-1300 if a ratio utility billing system is used in
a manufactured home park subject to the Manufactured Home Lot Rental Act (&#xA7;
55.1-1300 et seq.).

E. Energy allocation equipment shall be tested periodically by the owner,
manager, or operator of the residential building. Upon the request by a tenant,
the owner shall test the energy allocation equipment without charge. The test
conducted without charge to the tenant shall not be conducted more frequently
than once in a 24-month period for the same tenant. The tenant or his designated
representative may be present during the testing of the energy allocation
equipment. A written report of the results of the test shall be made to the
tenant within 10 working days after the completion of the test.

F. The owner of any residential building shall maintain adequate records
regarding energy submetering equipment, energy allocation equipment, water and
sewer submetering equipment, or a ratio utility billing system. A tenant may
inspect and copy the records for the leased premises during reasonable business
hours at a convenient location within or serving the residential building. The
owner of the residential building may impose and collect a reasonable charge for
copying documents, reflecting the actual costs of materials and labor for
copying, prior to providing copies of the records to the tenant.

G. Notwithstanding any enforcement action undertaken by the State Corporation
Commission pursuant to its authority under &#xA7; 56-245.3, tenants and owners
shall retain any private right of action resulting from any breach of the rental
agreement or lease terms required by this section or &#xA7; 56-245.3, if
applicable, to the same extent as such actions may be maintained for breach of
other terms of the rental agreement or lease under this chapter, if applicable.
The use of energy submetering equipment, energy allocation equipment, water and
sewer submetering equipment, or a ratio utility billing system is not within the
jurisdiction of the Department of Agriculture and Consumer Services under
Chapter 56 (&#xA7; 3.2-5600 et seq.) of Title 3.2.

H. In lieu of increasing the rent, the owner, manager, or operator of a
residential building may employ a program that utilizes a mathematical formula
for allocating the actual or anticipated local government fees billed to the
residential building owner among the tenants in such residential building if
clearly stated in the rental agreement or lease. Permitted allocation methods
may include formulas based upon square footage, occupancy, number of bedrooms,
or some other specific method agreed to by the residential building owner and
the tenant in the rental agreement or lease. Such owner, manager, or operator of
a residential building may also charge and collect from each tenant additional
service charges, including monthly billing fees, account set-up fees, or account
move-out fees, to cover the actual costs of administrative expenses for
administration of such a program. If the building is residential and is subject
to (i) this chapter, such local government fees and administrative expenses
shall be deemed to be rent as defined in &#xA7; 55.1-1200 or (ii) the
Manufactured Home Lot Rental Act (&#xA7; 55.1-1300 et seq.), such local
government fees and administrative expenses shall be deemed to be rent as
defined in &#xA7; 55.1-1300.

I. Nothing in this section shall be construed to prohibit an owner, manager, or
operator of a residential building from including water, sewer, electrical,
natural gas, oil, or other utilities in the amount of rent as specified in the
rental agreement or lease.

HISTORY: 1992, c. 766, § 55-226.2; 2003, c. 355; 2005, c. 278; 2010, c. 550;
2012, c. 338; 2014, c. 501; 2015, c. 596; 2017, c. 730; 2019, c. 712.