                                 CODE OF VIRGINIA

GENERATION OF ELECTRICITY FROM RENEWABLE AND ZERO CARBON SOURCES (§ 56-585.5)

A. As used in this section:
			&#8220;Accelerated renewable energy buyer&#8221; 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.
			&#8220;Aggregate load&#8221; 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.
			&#8220;Control&#8221; has the same meaning as provided in &#xA7; 56-585.1:11.
			&#8220;Elementary or secondary&#8221; has the same meaning as provided in
&#xA7; 22.1-1.
			&#8220;Falling water&#8221; means hydroelectric resources, including
run-of-river generation from a combined pumped-storage and run-of-river
facility. &#8220;Falling water&#8221; does not include electricity generated
from pumped-storage facilities.
			&#8220;Low-income qualifying projects&#8221; 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 &#xA7; 56-576.
			&#8220;Phase I Utility&#8221; has the same meaning as provided in subdivision
A 1 of &#xA7; 56-585.1.
			&#8220;Phase II Utility&#8221; has the same meaning as provided in
subdivision A 1 of &#xA7; 56-585.1.
			&#8220;Previously developed project site&#8221; 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.
&#8220;Previously developed project site&#8221; includes a brownfield as defined
in &#xA7; 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.
			&#8220;Total electric energy&#8221; 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.
			&#8220;Zero-carbon electricity&#8221; means electricity generated by any
generating unit that does not emit carbon dioxide as a by-product of combusting
fuel to generate electricity.

B. 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.

   2. 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.

   3. 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.

C. 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&#8217;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 § 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.
			In 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&#8217;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 § 10.1-1308.1, provided
that biomass as described in subdivision A 1 of § 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
§ 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 §
10.1-1308.1, provided that biomass as described in subdivision A 1 of §
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 § 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. 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:
   				RPS Program
   				Requirement
   				RPS Program
   				Requirement
   				6%
   				14%
   				7%
   				17%
   				8%
   				20%
   				10%
   				23%
   				14%
   				26%
   				17%
   				29%
   				20%
   				32%
   				24%
   				35%
   				27%
   				38%
   				30%
   				41%
   				33%
   				45%
   				36%
   				49%
   				39%
   				52%
   				42%
   				55%
   				45%
   				59%
   				53%
   				63%
   				53%
   				67%
   				57%
   				71%
   				61%
   				75%
   				65%
   				79%
   				68%
   				83%
   				71%
   				87%
   				74%
   				91%
   				77%
   				95%
   				80%
   				2045 and
   				thereafter
   				100%
   				84%
   				88%
   				92%
   				96%
   				2050 and
   				thereafter
   				100%

   2. 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.

   3. 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.

   4. 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 &#xA7; 56-249.6 or subdivision A 5 d
   of &#xA7; 56-585.1.

   5. 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.

D. 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&#8217;s election, either through its rates for generation and
distribution services or through a rate adjustment clause pursuant to
subdivision A 6 of § 56-585.1. All costs not sought for recovery through a rate
adjustment clause pursuant to subdivision A 6 of § 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 § 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 § 56-249.6.

   1. 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.
   				a. 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.
   				b. 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.
   				c. 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.
   				d. 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 &#xA7;&#xA7; 56-580 and 56-585.1.

   2. 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 &#xA7; 56-585.1:11,
   construct or purchase one or more offshore wind generation facilities located
   off the Commonwealth&#8217;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.
   				a. 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.
   				b. 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.
   				c. 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.
   				d. 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.
   				e. 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 &#xA7;&#xA7; 56-580 and 56-585.1.

   3. 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 &#xA7;&#xA7; 56-580 and 56-585.1,
   provided that the Commission&#8217;s review shall also consider whether the
   proposed generating capacity (i) is necessary to meet the utility&#8217;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.
   				Each 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&#8217;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&#8217;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&#8217;s development; (2) the
   age of existing generation facilities; (3) the demonstrated financial
   viability of a project and the developer; (4) a developer&#8217;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&#8217;s generation
   portfolio.

   4. 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 &#xA7; 56-580 and a request for approval or update
   of a rate adjustment clause pursuant to subdivision A 6 of &#xA7; 56-585.1 to
   recover the costs of such facilities. Such plan shall also include the
   utility&#8217;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&#8217;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&#8217;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. 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 &#xA7; 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.
   				For 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. To enhance reliability and performance of the utility&#8217;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. 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
   &#xA7;&#xA7; 56-580 and 56-585.1.

   2. 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 &#xA7;&#xA7; 56-580 and 56-585.1.

   3. 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.

   4. All energy storage projects procured pursuant to this subsection shall meet
   the competitive procurement protocols established in subdivision D 3.

   5. 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.

F. All costs incurred by a Phase I or Phase II Utility related to compliance
with the requirements of this section or pursuant to &#xA7; 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 &#xA7; 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 &#xA7; 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.
			By 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&#8217;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. 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 § 56-585.1:11, based on the amount of RECs obtained pursuant to this
subsection in proportion to the customer&#8217;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&#8217;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&#8217;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&#8217;s renewable facilities agreements associated with such tariff
offering as of that date in proportion to the customer&#8217;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&#8217;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&#8217;s compliance with its RPS requirements, and
the calculation of the utility&#8217;s RPS Program requirements shall not
include the electric load covered by customers certified as accelerated
renewable energy buyers.

   2. 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.

   3. 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 &#xA7; 56-235.2.

   4. The State Corporation Commission shall ensure that any distribution and
   transmission costs associated with new energy generation resources procured
   pursuant to subsection G of &#xA7; 56-585.5 of the Code of Virginia, as
   amended by this act, are justly and reasonably allocated.

H. 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 &#xA7; 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&#8217;s electric load shall not be included in the
utility&#8217;s RPS Program requirements. No customer of a Phase I Utility that
elected pursuant to subdivision A 3 of &#xA7; 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&#8217;s electric load shall not be included in the utility&#8217;s RPS
Program requirements.

I. 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 &#xA7; 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. 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.

K. Nothing in this section shall apply to any entity organized under Chapter 9.1
(&#xA7; 56-231.15 et seq.).

L. 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.

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.