HB 206 — Small renewable energy projects; impact on natural resources, report.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2022 SESSION CHAPTER E688 An Act to amend and reenact § 10.1-1197.6 of the Code of Virginia, relating to small renewable energy projects;

R O [H 206] Approved LApril L11, 2022 Be it enacted by the General Assembly of Virginia:

E § 10.1-1197.6.

DA. be effective as soon as practicable, but not later than July 1, 2012, a permit by rule or permits by rule if it is determined by the Department that one or more such permits by rule are necessary for the construction and operation of small renewable energy projects, including such conditions and standards necessary to protect the Commonwealth's natural resources.

IfNotwithstanding the provisions of § 10.1-1186.2:1, the Department determinesshall develop, by regulations to be effective as soon as practicable, but not later than July 1, 2012, a permit by rule or permits by rule if it is determined by the Department that one or more thansuch permits by rule are necessary for the construction and operation of small renewable energy projects, including such conditions and standards a single permit by rule is necessary, the Department initially shall develop the permit by rule for wind energy, which shall be effective as soon as practicable, but not later than January 1, 2011.

H B.

The conditions for issuance of the permit by rule for small renewable energy projects sha2lshall inc1.include:

1.

A copy of the final interconnection agreement between the small renewable energy project and the regional transmission organization or transmission owner indicating that the connection of the small renewable energy project will not cause a reliability problem for the system.

(ii) an electrical generation facility that generates electricity only from falling water, wave motion, tides, or geothermal electricitypower only from biomass, energy from waste, or municipal solid waste as designed does not exceedatesexceed 20100 megawatts;

or (iii) an electrical generation facility that generates electricity only from biomass, energy from waste, or municipal solid waste as designed does not exceed megawatts;

For prime agricultural soils and forest land, that analysis shall be required if a proposed project would disturb more than 10 acres of prime agricultural soils or 50 acres of contiguous forest lands, or if it would disturb forest lands enrolled in a program for forestry preservation pursuant to subdivision 2 of § 58.1-3233;

A project will be deemed to have a significant adverse impact if it would disturb more than 10 acres of prime agricultural soils or 50 acres of contiguous forest lands, or if it would disturb forest lands enrolled in a program for forestry preservation pursuant to subdivision 2 of § 58.1-3233;

of 3 9.

A certification signed by a professional engineer licensed in Virginia that the small renewable energy project is designed in accordance with all of the standards that are established in the regulations of 3 applicable to the permit by rule;

That pursuant to subdivisions B 7 and 8 of § 10.1-1197.6 of the Code of Virginia, as amended by this act, the Department of Environmental Quality (the Department), in consultation with the Department of Forestry, the State Corporation Commission, the Department of Energy, the Virginia Economic Development Partnership Authority, and other relevant stakeholders, shall convene an advisory panel to assist in further developing regulations regarding criteria to of 3 determine if a significant adverse impact to prime agricultural soils or forest lands is likely to occur as a result of a proposed solar project that is a small renewable energy project and critEriacriteria for an applicant of a solar project to address in a plan to mitigate any significant adverse impacts to soils and lands.

In developing regulations regarding plans to mitigate any significant impacts to prime agricultural soils or forest lands, the advisory panel shall consider, but not be limited to, the of 3 following factors in determining appropriate mitigation techniques or criteria to be included in an applicant's mitigation plan:

(i) the mitigation techniques to avoid, minimize, or otherwise mitOgatemitigate any such impacts;

(ii) the cost of mitigation relative to the project cost, including the costsLofcosts of proposed mitigation to rate payers;

(iv) payment of in-lieu fee orfunds landsfor aremitigation; displaced;

(v) the impact on the local agricultural or forestry economy when such soils or lands are displaced;

(vii) noncompliance with Virginia'slsVirginia's Watershed Implementation Plan III goals on the Chesapeake Bay TMDL;

and (viii) noncompliance E with other water quality criteria and standards.

Such criteria shall include reasonable actions to be taken by the applicant to avoid, minimize, or otherwise mitigate any such impacts to prime D agricultural soils or forest lands, but in the event that avoidance by the applicant is not reasonable, the applicant for the solar project that is a small renewable energy project shall be afforded the opportunity to minimize or otherwise mitigate any significant adverse impacts to prime agricultural soils or forest lands.

The advisory panel shall also consider a process by which an applicant may satisfy its mitigation obligations by agreement with a locality if such mitigation requirements conform to the regulations established by the Department pursuant to this enactment and when such mitigation requirements are included in (a) a siting agreement and approved by a H local governing body pursuant to subsection B of § 15.2-2316.7 of the Code of Virginia or (b) 2 zoning use conditions approved by the locality pursuant to § 15.2-2288.8 of the Code of Virgini6.Virginia.

stakeholders shall include but not be limited to representatives from the Virginia Association of Counties, the Virginia Farm Bureau Federation, the Virginia Agribusiness Council, the Virginia Forestry Association, the Piedmont Environmental Council, The Nature Conservancy, the Virginia Forest Products Association, the Chesapeake Solar and Storage Association, the American Clean Power Association, Advanced Energy Economy, AES Corporation, the Data Center Coalition, solar project engineers, electric utilities, and other stakeholders deemed relevant by the Department, the Department ofshall Forestry,adopt thesuch Departmentfinal ofregulations Energy, the State Corporation Commission, or the to the Governor and the Chairmen of the House Committees on Agriculture, Chesapeake andreport Natural Resources and Commerce and Energy and the Senate Committees on Agriculture, Conservation and Natural Resources and Commerce and Labor no later than December 1,31, 2022.2024.

Relevant stakeholders shall include but not be limited to representatives from the Virginia Association of Counties, the Virginia Farm Bureau Federation, the Virginia Agribusiness Council, the Virginia Forestry Association, the Piedmont Environmental Council, The Nature Conservancy, the Virginia Forest Products Association, the Chesapeake Solar and Storage Association, the American Clean Power Association, Advanced Energy Economy, AES Corporation, the Data Center Coalition, solar project engineers, electric utilities, and other stakeholders deemed relevant by the Department, the Department of Forestry, the Department of Energy, the State Corporation Commission, or the Virginia Economic Development Partnership Authority.

The advisory panel shall submit a report to the Governor and the Chairmen of the House Committees on Agriculture, Chesapeake and Natural Resources and Commerce and Energy and the Senate Committees on Agriculture, Conservation and Natural Resources and Commerce and Labor no later than December 1, 2022.

That any small renewable energy project for which an initial interconnection request application has been received and accepted by the regional transmission organization or electric utility by December 31, 2024, shall not be subject to the provisions of this act.onact. or electric utility by