Virginia HB 558: Natural gas, biogas, and other gas sources of energy; definitions, energy conservation.

Bill Text

VIRGINIAACTSOFASSEMBLY--2022RECONVENEDSESSION
CHAPTER759
An Act to amend and reenact §§ 56-248.1, 56-265.1, and 56-600 through 56-604 of the Code of
Virginia and to amend the Code of Virginia by adding in Title 56 a chapter numbered 30, consisting
of a section numbered 56-625, relating to natural gas, biogas, and other gas sources of energy;
definitions; energy conservation and efficiency; Steps to Advance Virginia's Energy Plan; biogas
supply infrastructure projects.
[H558]
ApprovedApril27,2022
Be it enacted by the General Assembly of Virginia:
1. That §§ 56-248.1, 56-265.1, and 56-600 through 56-604 of the Code of Virginia are amended and
reenacted and that the Code of Virginia is amended by adding in Title 56 a chapter numbered 30,
consisting of a section numbered 56-625, as follows:
§56-248.1. Commission to monitor fuel prices and utility fuel purchases; fuel price index.
A. The Commission shall monitor all fuel purchases, transportation costs, and contracts for such
purchases of a utility to ascertain that all feasible economies are being utilized. Subject to the provisions
of § 56-234, the Commission shall allow natural gas utilities to include in their fuel portfolios
supplemental or substitute forms of gas sources that meet the natural gas utility's pipeline quality gas
standards and that reduce the emissions intensity of its fuel portfolio. A natural gas utility shall procure
supplemental or substitute forms of gas sources utilizing standard industry practices and shall report to
the Commission annually the imputed reduction in carbon dioxide equivalent resulting from such
purchasing practices.
B. As used in this section:
"Biogas" means a mixture of hydrocarbons that is a gas at 60 degrees Fahrenheit and one
atmosphere of pressure that is produced through the anaerobic digestion or thermal conversion of
organic matter.
"Low-emission natural gas" means natural gas produced from a geologic source that has a methane
intensity of 0.20 or less (i) as reported under a protocol approved by the federal Environmental
Protection Agency's Gas STAR Methane Challenge, (ii) as certified by the United Nations Environment
Programme's Oil and Gas Methane Partnership 2.0, or (iii) as validated under a Qualified Attribute
Commodities Platform.
"Methane intensity" means the methane emissions assigned to natural gas on an energy basis divided
by the total methane content of produced natural gas.
"Qualified Attribute Commodities Platform" means a trading mechanism for natural gas or natural
gas attributes that are nonfinancial intangible commodities that represents, packages, and certifies the
qualifying attributes of an amount of low-emission natural gas. A Qualified Attribute Commodities
Platform provides validation by an independent third party, provides natural gas or natural gas
attributes capable of bilateral or exchange contract trading pursuant to standardized contracts for
physical delivery that reasonably eliminate validation risk, and provides transparency for audit and
reporting purposes.
"Supplemental or substitute forms of gas sources" means (i) low-emission natural gas, (ii) biogas, or
(iii) hydrogen.
C. In addition, the Commission shall establish a fuel price index in order to compare the prices paid
for the various types of fuel by Virginia utilities with the average price of the various types of fuel paid
by other public utilities at comparable geographic locations in the market.
D. This section shall not apply to telephone companies.
§56-265.1. Definitions.
In this chapter, the following terms shall have the following meanings:
(a) "Company" means a corporation, a limited liability company, an individual, a partnership, an
association, a joint-stock company, a business trust, a cooperative, or an organized group of persons,
whether incorporated or not; or any receiver, trustee or other liquidating agent of any of the foregoing in
his capacity as such; but not a municipal corporation or a county, unless such municipal corporation or
county has obtained a certificate pursuant to §56-265.4:4.
(b) "Public utility" means any company that owns or operates facilities within the Commonwealth of
Virginia for the generation, transmission, or distribution of electric energy for sale, for the production,
storage, transmission, or distribution, otherwise than in enclosed portable containers, of natural or
manufactured gas, or, if produced, stored, transmitted, or distributed by a natural gas utility as defined
in § 56-265.4:6, supplemental or substitute forms of gas sources as defined in § 56-248.1, or geothermal
resources for sale for heat, light or power, or for the furnishing of telephone service, sewerage facilities

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or water. A "public utility" may own a facility for the storage of electric energy for sale that includes
one or more pumped hydroelectricity generation and storage facilities located in the coalfield region of
Virginia as described in § 15.2-6002. However, the term "public utility" does not