Virginia HB 1797: Renewable energy; offshore wind development.

Bill Text

2023SESSION
INTRODUCED
23101725D
1 HOUSEBILLNO.1797
2 OfferedJanuary11,2023
3 PrefiledJanuary10,2023
4 A BILL to amend and reenact § 56-585.1:11 of the Code of Virginia, relating to renewable energy;
5 offshore wind development.
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Patrons––FreitasandLaRock
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8 ReferredtoCommitteeonCommerceandEnergy
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10 Be it enacted by the General Assembly of Virginia:
11 1. That §56-585.1:11 of the Code of Virginia is amended and reenacted as follows:
12 §56-585.1:11. Development of offshore wind capacity.
13 A. As used in this section:
14 "Advanced clean energy buyer" means a commercial or industrial customer of a Phase II Utility,
15 irrespective of generation supplier, (i) with an aggregate load over 100 megawatts; (ii) with an aggregate
16 amount of at least 200 megawatts of solar or wind energy supply under contract with a term of 10 years
17 or more from facilities located within the Commonwealth by January 1, 2024; and (iii) that directly
18 procures from the utility the electric supply and environmental attributes of the offshore wind facility
19 associated with the lesser of 50 megawatts of nameplate capacity or 15 percent of the commercial or
20 industrial customer's annual peak demand for a contract period of 15 years.
21 "Aggregate load" means the combined electrical load associated with selected accounts of an
22 advanced clean energy buyer with the same legal entity name as, or in the names of affiliated entities
23 that control, are controlled by, or are under common control of, such legal entity or are the names of
24 affiliated entities under a common parent.
25 "Control" means the legal right, directly or indirectly, to direct or cause the direction of the
26 management, actions, or policies of an affiliated entity, whether through the ability to exercise voting
27 power, by contract, or otherwise. "Control" does not include control of an entity through a franchise or
28 similar contractual agreement.
29 "Qualifying large general service customer" means a customer of a Phase II Utility, irrespective of
30 general supplier, (i) whose peak demand during the most recent calendar year exceeded five megawatts
31 and (ii) that contracts with the utility to directly procure electric supply and environmental attributes
32 associated with the offshore wind facility in amounts commensurate with the customer's electric usage
33 for a contract period of 15 years or more.
34 B. In order to meet the Commonwealth's clean energy goals, prior to December 31, 2034, the
35 construction or purchase by a public utility of one or more offshore wind generation facilities located off
36 the Commonwealth's Atlantic shoreline or in federal waters and interconnected directly into the
37 Commonwealth, with an aggregate capacity of up to 5,200 megawatts, is in the public interest and the
38 Commission shall so find, provided that no customers of the utility shall be responsible for costs of any
39 such facility in a proportion greater than the utility's share of the facility.
40 C. 1. Pursuant to subsection B, construction by a Phase II Utility of one or more new utility-owned
41 and utility-operated generating facilities utilizing energy derived from offshore wind and located off the
42 Commonwealth's Atlantic shoreline, with an aggregate rated capacity of not less than 2,500 megawatts
43 and not more than 3,000 megawatts, along with electrical transmission or distribution facilities associated
44 therewith for interconnection is in the public interest. In acting upon any request for cost recovery by a
45 Phase II Utility for costs associated with such a facility, the Commission shall determine the
46 reasonableness and prudence of any such costs, provided that such costs shall be presumed to be
47 reasonably and prudently incurred if the Commission determines that (i) the utility has complied with
48 the competitive solicitation and procurement requirements pursuant to subsection E; (ii) the project's
49 projected total levelized cost of energy, including any tax credit, on a cost per megawatt hour basis,
50 inclusive of the costs of transmission and distribution facilities associated with the facility's
51 interconnection, does not exceed 1.4 times the comparable cost, on an unweighted average basis, of a
52 conventional simple cycle combustion turbine generating facility as estimated by the U.S. Energy
53 Information Administration in its Annual Energy Outlook 2019; and (iii) the utility has commenced
54 construction of such facilities for U.S. income taxation purposes prior to January 1, 2024, or has a plan
55 for such facility or facilities to be in service prior to January 1, 2028. The Commission shall disallow
56 costs, or any portion thereof, only if they are otherwise unreasonably and imprudently incurred. In its
57 review, the Commission shall give due consideration to (a) the Commonwealth's renewable portfolio
58 standards and carbon reduction requirements, (b) the promotion of new renewa