HB 396 — Electric utilities; municipal net energy metering.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2022 SESSION CHAPTER E388 An Act to amend and reenact § 56-585.1:8 of the Code of Virginia, relating to electric utilities;

R O [H 396] Approved LApril L11, 2022 Be it enacted by the General Assembly of Virginia:

E § 56-585.1:8.

DA. "Host account" means the premises on which a municipal customer-generator's electrical generating facility is located.

"MunicipalAs customer-generator"used means a single municipality metered account that owns and or operates, or that contracts with other persons to own or operate, an electrical generating facility that (i) uses as its total source of fuel renewable energy as defined in §this 56-576,section: (ii) has a generating capacity of not more than two three megawatts, (iii) is located on land owned or leased by the municipality's premises municipality within the municipality and is connected to the municipality's wiring on Hhe municipality's side of its interconnection with the utility, (iv) is interconnected and operate3 in parallel of the customer account's municipal customer-generator's own electricity requirements.

The"Host capacityaccount" ofllmeans orthe partpremises anyon generatingwhich facilitya installedmunicipal undercustomer-generator's thiselectrical section, other than a generating facility located on airports, landfills, parking lots and garages, wastewater treatment sites, parks, post-mine land, or a reservoir that is owned,located. operated, or leased by the municipality, shall not exceed the same limitation established with respect to an eligible customer-generator as set forth in the definition of such term in subsection B of § 56-594.

"Municipality""Municipal customer-generator" means anya county,single city,municipality metered account that owns and or townuses as its total source of fuel renewable energy as defined in the§ Commonwealth,56-576, other(ii) thanhas a municipalitygenerating thatcapacity ownsof) andnot operatesmore itsthan owntwo electricthree utility,megawatts, or(iii) anyis authoritylocated createdon pursuantland toowned or leased by the Parkmunicipality's Authoritiespremises Actmunicipality (§within "Netthe energymunicipality metering"and meansis measuringconnected to the difference,municipality's overwiring on the netmunicipality's meteringside period,of betweenits (i)interconnection electricitywith suppliedthe toutility, a(iv) municipalis customer-generatorinterconnected fromand operated in parallel with the electricutility's gridtransmission and (ii)distribution thefacilities, electricityand generated(v) andis fedintended backprimarily to theoffset electricall gridor bypart of the customer account's municipal customer-generator.customer-generator's own electricity requirements.

The capacity of any generating facility installed under this section, other than a generating facility located on airports, landfills, parking lots and garages, wastewater treatment sites, parks, post-mine land, or a reservoir that is owned, operated, or leased by the municipality, shall not exceed the same limitation established with respect to an eligible customer-generator as set forth in the definition of such term in subsection B of § 56-594.

"Municipality" means any county, city, or town in the Commonwealth, other than a municipality that owns and operates its own electric utility, or any authority created pursuant to the Park Authorities Act (§ 15.2-5700 et seq.).

"Net energy metering" means measuring the difference, over the net metering period, between (i) electricity supplied to a municipal customer-generator from the electric grid and (ii) the electricity generated and fed back to the electric grid by the municipal customer-generator.

The Commission shall require each utility Phase I Utility to submit a proposal to the Commission conditions,to andconduct restrictions:ra pilot program for municipal net energy metering in accordance with the following terms, 1.conditions, and restrictions:

1.

In each utility's Phase I Utility's pilot program, the target accounts may be at one or more other separately utility-metered public buildings or facilities at thecontiguous pilotor programnoncontiguous issites conductedowned by athe Phasemunicipality Iand Utility,used targetfor accountsa may also be at one or more otherf separately utility-metered buildings or facilities of the public schoolpurpose; division of the municipality.

however, if the pilot program is conducted by a Phase I Utility, target accounts may also be at one or more other separately utility-metered buildings or facilities of the public school division of the municipality.

The generation energy rate of the target's accounts includes all applicable kilowatt-hour-based rate adjustment clauses with the exception of any amountnon-fuel-related ofor electricitynon-generation-related generatedkilowatt-hour-based andrate theadjustment amountclauses. of electricity consumed, and the crediting for the amounthe of any excess generation determined as a result of such netting, shall occur in the twelfth month of 3 following the commencement of the host municipal customer-generator's generation of electricity under a pilot program and annually thereafter, regardless of the municipal customer-generator's regular billing period.

The netting of the amount of electricity generated and the amount of electricity consumed, and the crediting for the amount of any excess generation determined as a result of such netting, shall occur in the twelfth month following the commencement of the host municipal customer-generator's generation of electricity under a pilot program and annually thereafter, regardless of the municipal customer-generator's regular billing of 3 period.

Neither jurisdictional customers nor non-jurisdictional customers, including those that are members of a joint powers association representing member units of a political subdivision of the Commonwealth, of 3 that do not participate in a pilot program under this section shall bear any costs associated with participation in such pilot program by a participating host municipal customer-generator and paEticipatingparticipating target municipal customer.

NC. subsection B shall be six years.

TheE. duration of any pilot program approved by the Commissionn pursuant to subsection C shall be until July 1, 2028.

IfThe theduration aof any pilot program isapproved notby extendedthe beyondCommission suchpursuant initialto term,this hostsection andsubsection targetB accounts participating at the end of the initial term shall be peOmittedsix toyears. continue to participate under the terms of the pilot program that existed during the initial teLm.

The continueduration itsof program.ogramany shallpilot beprogram includedapproved inby futurethe contractsCommission forof each3 municipalitypursuant thatto electssubsection toC D.shall be until July 1, 2028.

If the a pilot program is not extended beyond such initial term, host and target accounts participating at the end of the initial term shall be permitted to continue to participate under the terms of the pilot program that existed during the initial term.

The terms of the pilot program shall be included in future contracts for each municipality that elects to continue its program.

D.

The E Commission shall review the pilot program established pursuant to subsection C in 2024 and everDevery two yeaG.years thereafter for the duration of the pilot program.

G.

programH. under this section and that are the subject of a third-party power purchase agreement shallilot constitute a portion of the existing limit of pilot programs pursuant to the provisions of § 56H594.02.

6The Raggregated capacity of all generation facilities that are the subject of each utility's pilot program under this section and that are the subject of a third-party power purchase agreement shall constitute a portion of the existing limit of pilot programs pursuant to the provisions of § 56-594.02.