                                 CODE OF VIRGINIA

ENERGY EFFICIENCY POLICY AND PROGRAMS; FINANCIAL ASSISTANCE FOR LOW-INCOME
CUSTOMERS (§ 56-596.2)

A. Notwithstanding subsection G of &#xA7; 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 &#xA7; 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. 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:

   1. For Phase I electric utilities:
   				a. In calendar year 2022, at least 0.5 percent of the average annual
   energy jurisdictional retail sales by that utility in 2019;
   				b. In calendar year 2023, at least 1.0 percent of the average annual
   energy jurisdictional retail sales by that utility in 2019;
   				c. In calendar year 2024, at least 1.5 percent of the average annual
   energy jurisdictional retail sales by that utility in 2019; and
   				d. In calendar year 2025, at least 2.0 percent of the average annual
   energy jurisdictional retail sales by that utility in 2019;

   2. For Phase II electric utilities:
   				a. In calendar year 2022, at least 1.25 percent of the average annual
   energy jurisdictional retail sales by that utility in 2019;
   				b. In calendar year 2023, at least 2.5 percent of the average annual
   energy jurisdictional retail sales by that utility in 2019;
   				c. In calendar year 2024, at least 3.75 percent of the average annual
   energy jurisdictional retail sales by that utility in 2019; and
   				d. In calendar year 2025, at least 5.0 percent of the average annual
   energy jurisdictional retail sales by that utility in 2019;

   3. 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

   4. 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&#8217;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
   &#xA7; 56-592.1, to independently conduct an energy efficiency potential study
   for each Phase I and Phase II Utility&#8217;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 &#xA7; 56-592.1, to update the energy
   efficiency potential study for each Phase I and Phase II Utility&#8217;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. 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 &#xA7;
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&#8217;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&#8217;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. Nothing in this section shall apply to any entity organized under Chapter 9.1
(&#xA7; 56-231.15 et seq.).

HISTORY: 2018, c. 296; 2019, cc. 397, 398; 2020, cc. 1193, 1194, 1208; 2021, Sp.
Sess. I, cc. 401, 532; 2024, cc. 794, 818.