General Assembly
The 2010 Session of the Virginia General Assembly is well underway. The following energy-related legislation has been introduced. You may follow progress on this legislation by clicking on the link to each bill’s page on the General Assembly’s Legislative Information System. We will monitor this legislation throughout the Session and continue to add more energy-related legislation as it is introduced.
Key Bills to Watch
Green Jobs Income Tax Credit
HB 803 Green jobs tax credit – Allows a $500 income tax credit for the creation of “green” jobs for taxable years beginning on and after January 1, 2010.
Virginia Offshore Wind Development Authority and Commission Bills:
HB 389 Virginia Offshore Wind Project Development Authority – Creates the Virginia Offshore Wind Development Authority to facilitate and support the development of wind-powered electric energy facilities located off the coast of the Commonwealth beyond the Commonwealth’s three-mile jurisdictional limit.
SB 577 Virginia Offshore Wind Project Development Authority – Creates the Virginia Offshore Wind Development Authority to facilitate and support the development of wind-powered electric energy facilities located off the coast of the Commonwealth beyond the Commonwealth’s three-mile jurisdictional limit.
Tax Exemptions for Renewable Energy Systems
SB 174 Retail sales and use tax exemptions for renewable energy systems – Exempts from the retail sales and use tax solar photovoltaic systems, solar thermal systems, and wind-powered electrical generators purchased for installation in or on residential real property.
Rate Suspension for Investor-Owned Utilities
HB 1308 Suspension of all rates, tolls and charges proposed by an investor-owned utility while base rate change pending before the SCC – Requires an investor-owned electric utility to suspend collection of interim rates during the pendency of the State Corporation Commission’s consideration of the utility’s base rate case. The SCC is required to issue its final order on the utility’s application by July 15, 2010. With regard to base rate case proceedings involving any investor-owned electric utility that are filed after January 1, 2010, the SCC’s final order is required to be issued within nine months, and any resulting revision in rates shall take effect within 60 days after the order is entered.
Other Energy Bills to Watch
HB 88 Prepaid electric utility service – Authorizes electric cooperatives to install and operate a prepaid metering equipment and system upon a customer’s request.
HB 92 Renewable energy certificates – Provides that an electric cooperative is deemed to offer an approved tariff for electric energy provided 100 percent from renewable energy if it bundles its electricity with renewable energy certificates.
HB 442 Customer generation and sale of renewable energy to utility – Authorizes an electric utility customer to continue generating and selling renewable energy to any entity pursuant to the terms of a power purchase agreement that was in effect on the date the State Corporation Commission approved a tariff for the incumbent electric utility that serves the exclusive service territory in which the customer is located to offer electric energy provided 100 percent from renewable energy, provided that such power purchase agreement complied with applicable law at the time of its execution.
HB 787 Offshore energy resources – States that it shall be the policy of the Commonwealth to support oil and natural gas exploration, development, and production 50 miles or more off Virginia’s coast. Currently, the policy is limited to supporting exploration for natural gas resources 50 miles or more offshore.
HB 806 Virginia Alternative Revolving Fuels Fund – Adds improvement of infrastructure such as refueling stations as a goal of the Fund. Requires that the Commissioner aggressively pursue grants and other sources of funding for the Fund.
HB 928 Virginia University Clean Energy Development and Economic Stimulus Foundation – Companion to SB 326. Creates the Virginia Universities Clean Energy Development and Economic Stimulus Foundation as a body corporate and a political subdivision of the Commonwealth. The Foundation shall identify, obtain, disburse, and administer funding for (i) research and development of alternative fuels, clean energy production, and related technologies; (ii) support of economic development projects in disadvantaged rural areas; and (iii) the provision of assistance in the commercialization of alternative fuels and clean energy technologies.
HB 999 Certified renewable energy manufacturing equipment – Adds certified renewable energy manufacturing equipment, facilities, and devices to a separate class of property for local property tax purposes so the local governing body can exempt or partially exempt such property.
HB 1022 Renewable Energy Portfolio Standard Program – Provides that an investor-owned electric utility will receive triple credit toward meeting the goals of the renewable energy portfolio standard program for energy derived from offshore wind.
SB 109 Green Public Buildings Act – Requires executive branch agencies and institutions entering the design phase for construction of a new building greater than 5,000 gross square feet in size, or renovating such a building where the cost of renovation exceeds 50 percent of the value of the building, to conform to the LEED Silver or Green Globes two globe standard.
SB 110 Clean energy financing – Gives localities the authority to, in order to secure loans for the initial acquisition and installation of clean energy improvements, place liens ranking on parity with liens for unpaid property taxes against any property where such renewable energy systems are being installed. Further allows the locality to bundle the loans for transfer to private lenders in such a manner that would allow the liens to remain in full force to secure the loans.
SB 112 Steps to Advance Virginia’s Energy Plan Act – Authorizes investor-owned natural gas utilities to petition the State Corporation Commission to implement a separate rider that will allow for recovery of certain costs associated with eligible infrastructure replacement projects.
SB 113 Tax exemption for energy conservation and efficiency equipment – Provides for a referendum at the November 2, 2010, election to approve or reject an amendment allowing the General Assembly to authorize legislation that permits localities to exempt or partially exempt certain energy and resource efficient equipment, facilities, or devices from real or personal property taxes. The present Constitution allows exemptions for pollution abatement and solar energy equipment.
SB 129 Clean Energy Manufacturing Incentive Grant Program – Repeals the Solar Photovoltaic Manufacturing Incentive Grant Program and creates a program to provide financial incentives to companies that manufacture or assemble equipment, systems, or products used to produce renewable or nuclear energy, or products used for energy conservation, storage, or grid efficiency purposes. To be eligible for a grant, the manufacturer must make a capital investment greater than $50 million and create at least 200 full-time jobs that pay at least the prevailing wage.
SB 143 Renewable energy job creation tax credit – Provides an income tax credit to corporations for each “Renewable Energy Job” created and filled. The amount of the credit for each such job is $1,000 for each salary of $50,000 and more a year and may be taken for three years.
SB 267 Virginia Commission on Energy and Environment – Requires the Division of Energy to present drafts of updates to the Virginia Energy Plan to the Commission on Energy and Environment and ensures the Commission’s responsibility to review and consider the direct and indirect impacts of energy production and use on the Commonwealth’s environment and natural resources.
SB 272 Minimum biodiesel and green diesel content in state contracts for vehicle fuel – Requires state public bodies to procure only diesel fuel containing, at a minimum, two percent, by volume, biodiesel fuel or green diesel fuel. The requirement will only apply to procurements of diesel fuel for use in on-road internal combustion engines and shall not apply if (i) such fuel is not practically available or (ii) the cost of such procurement exceeds the cost of unblended diesel fuel by five percent or more. Based on a finding of sufficient availability of biodiesel or green diesel, the Governor may increase the requirement of biodiesel fuel or green diesel fuel up to 20 percent by volume.
SB 291 Donations by localities to energy efficiency service providers – Provides that a locality may make gifts and donations to any nonprofit organization, association, or agency that is engaged in providing energy efficiency services or promoting energy efficiency within or without the boundaries of the locality.
SB 394 Offshore energy resources – States that it shall be the policy of the Commonwealth to support oil and natural gas exploration, development, and production 50 miles or more off Virginia’s coast. Currently, the policy is limited to supporting exploration for natural gas resources 50 miles or more offshore.
SB 623 Green jobs tax credit – Allows a $500 income tax credit for the creation of “green” jobs for taxable years beginning on and after January 1, 2010. Each taxpayer is allowed a credit for up to 350 new green jobs and may qualify for the Enterprise Zone Grant program if the job is located in an enterprise zone.
Failed Bills
SB 111 Electric utility rate structure – Authorizes the State Corporation Commission (SCC) to review rate structure during the biennial review process. The bill explicitly adds innovative rate structures to the list of energy efficiency programs for which a utility may petition the SCC for cost recovery. The bill also requires the SCC to consider energy efficiency and environmental protection in all proceedings pursuant to the Virginia Electric Utility Regulation Act.
SB 564 Coal surface mining refuse control – Prohibits the issuing of a permit for coal surface mining operations unless the applicant affirmatively demonstrates, and the Director finds in writing, that no spoil, refuse, silt, slurry, tailings, or other waste materials from coal surface mining and reclamation operations will be disposed of in any intermittent, perennial, or ephemeral stream.
HB 1222 Voluntary Solar Resource Development Fund – Requires electric utilities to provide customers with the option to make voluntary contributions to the Voluntary Solar Resource Development Fund, which is established by this measure. Moneys in the Fund will be allocated by the State Corporation Commission as grants for projects that involve the acquisition, installation, or operation of photovoltaic devices, solar water heating devices, or solar space heating devices at a residence, structure occupied by a nonprofit organization, or commercial establishment.
SB 39 Renewable energy portfolio standards – Removes the requirement that utilities participating in a renewable portfolio standard (RPS) program collectively use no more than 1.5 million tons of forest products such as wood chips, bark, and sawdust each year towards meeting RPS goals.
SB 450 Mandatory renewable energy portfolio standard program – Provides for a mandatory renewable energy portfolio standard program. Under current law, the renewable energy portfolio standard program is a voluntary program to which investor-owned utilities apply to receive certain incentives. The bill creates a mandatory RPS program that retains the existing RPS goals and positive incentives and authorizes the SCC to charge a noncompliance fee to utilities that do not meet the RPS goals. The bill also creates the Virginia Sustainable Energy Fund into which utilities that fail to meet the program goals pay noncompliance fees.
Bills Continued to 2011
HB 441 Community net metering – Requires the State Corporation Commission to establish a program of community net metering, which will allow a group of residential, small commercial, and other customers to establish an “eligible community customer” to act collectively to generate renewable energy for their own use.
HB 881 Restrictive covenants regarding solar energy collection devices – Invalidates any new or existing restrictive covenant adopted by a community association that prohibits or restricts the installation or use of any solar energy collection device. Community associations may establish reasonable restrictions as to the size, place, and manner regarding the placement of such devices on private property and community areas.
HB 998 Renewable Energy Products Tax Credit – Provides an income tax credit for taxable years beginning on and after January 1, 2011, but before January 1, 2016, for the production and export of renewable energy products. The credit ranges from $0.20 to $0.40 per ton of renewable energy products, depending on the current year export volume. The total amount of credits allowed annually is $6 million.
HB 1037 Clean Energy Manufacturing Incentive Grant Program – Repeals the Solar Photovoltaic Manufacturing Incentive Grant Program and creates a program to provide financial incentives to companies that manufacture or assemble equipment, systems, or products used to produce renewable energy, nuclear energy, or energy efficiency products. To be eligible for a grant, the manufacturer must make a capital investment greater than $50 million and create at least 200 full-time jobs. The program would be managed by the Director of the Department of Mines, Minerals and Energy.
SB 647 Impact assessment for energy mandates – Requires standing committees of the General Assembly to request that the State Corporation Commission or the Joint Legislative Audit and Review Commission prepare an assessment of the economic impact, on customers and public utilities in the Commonwealth, of any proposed state law or other mandate that affects the use, delivery, availability or regulation of energy in the Commonwealth.
