HB 74 — Va. Clean Economy Act; non-bypassable charges, energy-intensive trade-exposed (EITE) industries.

"Previously developed project site" includes a brownfield as defined in § 10.1-1230 or any parcTl that has been previously used (i) for a retail, commercial, or industrial purpose;

(iii) as thethat sitetook ofplace abefore parkingAugust lot3, canopy1977, or structure;any lands upon which extraction activities have been permittedng by the Department of Energy under Title 45.2;

(iv) for mining, which is any lands affected by coal mining that took place before August 3, 1977, or any lands upon which extraction activities have been permitted by the Department of Energy under Title 45.2;

"Renewable energy" also includes the proportion ofBf the thermal or electric energy from a facility that results from the co-firing of biomass.

"Renewable"Renewab4e energy" does not include waste heat from fossil-fired facilities or electricity generated from pumped storages1orage but includesinc"Renewable run-of-riverthermal generationenergy" means the thermal energy output from (i) a renewable-fueled combined pumped-storageheat and run-of-riverpower facility.generation facility that is (a) constructed, or renovated and improved, after January 1, 2012, (b) located in the Commonwealth, and (c) utilized in industrial processes other than the combined heat and power generation facility or (ii) a solar energy system, certified to the OG-100 standard of the Solar Ratings and Certification Corporation or an equivalent certification body, that (a) is constructed, or renovated and improved, after January 1, 2013, (b) is located in the Commonwealth, and (c) heats water HB74H1 4 of 13 or air for residential, commercial, institutional, or industrial purposes.

"Renewable thermal energy" means the thermal energy output from (i) a renewable-fueled combined 2012, (b) located in the Commonwealth, and (c) utilized in industrial processes other than the combined HB74 4 of 13 heat and power generation facility or (ii) a solar energy system, certified to the OG-100 standard of the Solar Ratings and Certification Corporation or an equivalent certification body, that (a) is constructed, or renovated and improved, after January 1, 2013, (b) is located in the Commonwealth, and (c) heats water or air for residential, commercial, institutional, or industrial purposes.

"Control" means the legal right, directly or indirectly, to direct or cause the direction of the of 13 management, actions, or policies of an affiliated entity, whether through the ability to exercise voting power, by contract, or otherwise.

"Control" does not include control of an entity through a fraIchisefranchise or similar contractual agreement.

Nof 13 general supplier, (i) whose peak demand during the most recent calendar year exceeded five megawattsof and (ii) that contracts with the utility to directly procure electric supply and environmental attributes associated with the offshore wind facility in amounts commensurate with the customer's electricRusageelectric usage for a contract period of 15 years or more.

In order to meet the Commonwealth's clean energy goals, prior to December 31, 2034, the Othe constructionCommonwealth's Atlantic shoreline or purchasein byfederal awaters publicand utilityinterconnected ofdirectly oneinto orthe morelocated offshoreoff windCommonwealth, generationwith facilitiesDlocatedan offaggregate thecapacity Commonwealth'sof Atlanticup shorelineto or5,200 inmegawatts, federalis watersin andthe interconnectedpublic directlyinterest intoand the Commission shall so find, provided that no customers of the utility shall be responsible for costs of any such facility in a proportion greater than the utility's share of the facility.

C C.

Pursuant to subsection B, construction by a Phase II Utility of one or more new utilitE-ownedutility-owned and utility-operated generating facilities utilizing energy derived from offshore wind and located off the Commonwealth's Atlantic shoreline, with an aggregate rated capacity of not less than 2,500 megawattsmegawattsff the and not more than 3,000 megawatts, along with electrical transmission or distribution facilities associated therewith for interconnection is in the public interest.

In acting upon any request for cost recovery by a reasonablenessPhase andII prudenceUtility offor anycosts suchassociated costs,with provided that such costsa shallfacility, bethe presumedCommission toshall bedetermine reasonablythe reasonableness and prudentlyprudence incurredof ifany thesuch Commissioncosts, determinesprovided that (i)such thecosts utilityshall hasbe compliedpresumed withto beO the competitive solicitation and procurement requirements pursuant to subsection E;

(ii) the project'sprUject's projected total levelized cost of energy, including any tax credit, on a cost per megawatt hour basis, inclusive of the costs of transmission and distribution facilities associated with the facilityHsfacilitySs interconnection, does not exceed 1.4 times the comparable cost, on an unweighted average basis,7ofbasis, of a conventional simple cycle combustion turbine generating facility as estimated by the U.S.

Energ4EnergE construction of such facilities for U.S.

The Commission shall disallow costs, or any portion thereof, only if they are otherwise unreasonably and imprudently incurred.incurredS In its review, the Commission shall give due consideration to (a) the Commonwealth's renewable portfolio standards and carbon reduction requirements, (b) the promotion of new renewable generation resoUrces, investments and job creation.ent benefits of the project for the Commonwealth, including capitaB 2.

InNotwithstanding itsthe review,provisions of § 56-585.1, the Commission shall givenot duegrant considerationan toenhanced (a)Sate theof Commonwealth'sreturn renewableto portfolioa standardsPhase andII carbonUtility reductionfor requirements, (b) the promotionconstruction of newone renewableor generationmore resources,new utility-owned and (c)utility-operated thegenerating economicfacilities developmentutilizing benefitsenergy ofderived thefrom projectoffshore forwind and located off the Commonwealth,Commonwealth's includingAtlantic capitalshoreline investmentspursuant andto jobthis creation.section.

returnI 6 of § 56-585.1 shall be allocated to aall Phasecustomers IIof Utilitythe forutility in the constructionCommonwealth as adivision A non-bypassable charge, regardless of onethe orgeneration moresupplier newof utility-ownedany andsuch utility-operatedcustomer, generatingother facilitiesthan utilizing(i) energyPIPP derivedeligible fromutility offshorecustomers, wind(ii) andadvanced locatedclean offenergy thebuyers, Commonwealth's(iii) Atlanticenergy-intensive shorelinetrade-exposed pursuantindustries, toand this(iii) section.(iv) qualifying large general service customers.

3.No electric cooperative Tustomer of the utility shall be assigned, nor shall the utility collect from any such cooperative, any of the costs of interconnection.

AnyThe suchCommission costsmay proposedpromulgate forsuch recoveryrules, throughregulations, aor rateother adjustmentdirectives clausenecessaryr pursuant to subdivisionadminister A 6 of § 56-585.1 shall be allocated to all customers of the utilityeligibility in the Commonwealth as a non-bypassable charge, regardless of the generation supplier of any such customer, other than (i) PIPP eligible utility customers, (ii) advanced clean energy buyers, (iii) energy-intensive trade-exposed the utility shall be assigned, nor shall the utility collect from any such cooperative, any of the costs of such facilities, including electrical transmission or distribution facilities associated therewith for interconnection.these exemptions.

The Commission may promulgate such rules, regulations, or other directives necessary to administer the eligibility for these exemptions.

The Commission shall permit a portion of the nameplate capacity of any such facility, in the aggregate, to be allocated to (i) advanced clean energy buyers or (ii) qualifying large general service customers, provided that no more than 10 percent of the offshore wind facility's capacity is allocated to of a special contract with any advanced clean energy buyer, or any special rate applicable to qualifyingl large general service customers, pursuant to § 56-235.2, no later than 15 months prior to the projected commercial operation date of the facility, and all customer enrollments associated with such specialspBcial contracts or rates shall be completed prior to commercial operation of the facility.

Any such specials4ecial contract or rate may include provisions for levelized rates of service over the duration of thethe1customer's customer's contracted agreement with the utility, and the Commission shall determine that such special contract or rate is designed to hold nonparticipating customers harmless over its term in connection with anyanyact ratesor in connection with any petition for approval ofby a rate adjustment clause pursuant to subdivision A HB74 6 of 13 6 of § 56-585.1 to recover the costsutility. of the facility, and the Commission shall rule upon any such petitions in its final order in such proceeding within nine months from the date of filing.

The utility may petition for approval of such special contracts or rates in connection with any petition for approval of a rate adjustment clause pursuant to subdivision A 6 of § 56-585.1 to recover the costs of the facility, and the Commission shall rule upon any such petitions in its final order in such proceeding within nine months from the date of filing.

In constructing any such facility contemplated in subsection B, the utility shall develop and HB74H1 6 of 13 submit a plan to the Commission for review that includes the following considerations:

of 13 "Zero-carbon electricity" means electricity generated by any generating unit that does not emit carbon dioxide as a by-product of combusting fuel to generate electricity.

I B.

By December 31, 2024, except for any coal-fired electric generating units (i) jointly Nwnedowned of 13 of the Commonwealth that co-fires with biomass, any Phase I and Phase II Utility shall retire alleld region generating units principally fueled by oil with a rated capacity in excess of 500 megawatts and all coal-fired electric generating units operating in the Commonwealth.

R 2.

Olocated 3.in the Commonwealth that emit carbon as a by-product of combusting fuel to generateerating units electricity.

By4. December 31, 2045, each Phase I and II Utility shall retire all other electric generatDng units located in the Commonwealth that emit carbon as a by-product of combusting fuel to generate ele4.

The Commission shall consider in-state and regional transmission entity resourcesEandresources shalland evaluatepetition.luate the reliability of each proposed retirement on a case-by-case basis in ruling upon any such petition.C.

DEach C.Phase I and Phase II Utility shall participate in a renewable energy portfolio standard program (RPS Program) that establishes annual goals for the sale of renewable energy to all retail customers in the utility's service territory, other than accelerated renewable energy buyers pursuant to subsection G, regardless of whether such customers purchase electric supply service from the utility or Utility shall procure and retire Renewable Energy Certificates (RECs) originating from renewablU energy standard eligible sources (RPS eligible sources).

EachFor Phasepurposes Iof andcomplying Phasewith IIthe UtilityRPS shallProgram participatefrom in2021 ato renewable2024, energya portfolioPhase standardI programand (RPSPhase Program)II thatUtility establishesmay annualuse goalsRECs forfrom theany sale of renewable energy tofacility, allaS retaildefined subsectionin G,§ regardless56-576, ofprovided whetherthat such customersfacilities purchaseare electriclocated supplyin service from the utilityCommonwealth oroor fromare suppliersphysically otherlocated thanwithin the utility.PJM Interconnection, LLC (PJM) region.

ToHowever, complyat withno time during this perioE or renewable thermal energy equivalent, (iii) biomass-fired facilities that are outside the RPSCommonwealth, Program,or each(iv) Phasebiomass-fired Ifacilities andoperating Phasein IIthe UtilityCommonwealth shallas procureof andJanuary retire1, Renewable2020, Energythat Certificatessupply (RECs)10 originatingpercent fromor renewablemore of their annual net electrical generation to the electric grid or more than 15 Sercent of their annual total useful energy standardto eligibleany sourcesentity (RPSother eligiblethan sources).the manufacturing facility to which the generating source is interconnected.

ForFrom purposescompliance ofyear complying2025 withand theall RPSyears Programafter, fromeach 2021Phase U and PhaIn order to 2024,qualify aas PhaseRPS Ieligible andsources, Phasesuch IIsources Utilitymust maybe use(a) RECselectric-generating fromresources anythat renewablegenerate electric energy facility,derived aHfrom definedsolar or wind located in §the 56-576,Commonwealth providedor thatoff suchtheS facilitiesCommonwealth's areAtlantic locatedshoreline or in federal waters and interconnected directly into the Commonwealth or arephysically physi7ally located within the PJM Interconnection,region; LLC (PJM) region.

However,(b) atfalling nowater timeresources duringlocated thisin perio4the Commonwealth or renewablephysically thermallocated energywithin equivalent,the (iii)PJM biomass-firedregion facilities that arewere outside the Commonwealth, or (iv) biomass-fired facilities operating in theoperation Commonwealth as of January 1,1I 2020,entered thatinto supplya 10contract percentprior or more of their annual net electrical generation to theJanuary electric1, grid2020, or more than 15 percent of their annual total useful energy to anypurchase entity other than the manufacturingenergy, facilitycapacity, toand whichrenewablehas theattributes generatingof sourcesuch isfalling interconnected.water resources;

From(c) compliancenon-utility-owned yearresources 2025from andfalling allwater yearsthat after,(1) eachare Phaseless Ithan 65 megawatts, (2) began commercial operation after December 31, 1979, or (3) added U incremental generation representing greater than 50 percent of the original nameplate capacity Tfter December 31, 1979, provided that such resources are located in the Commonwealth or are physically the Commonwealth and Phasein IIoperation Utilityas mayof onlyJanuary use1, RECs2020, provided that such resources do not usecated in waste heat from RPSfossil eligiblefuel sourcescombustion foror complianceforest withor thewoody RPSbiomass Program.as fuel;

In order to qualify as RPS eligible sources, such sources must be (a) electric-generating resources Commonwealth's Atlantic shoreline or in federal waters and interconnected directly into the the Commonwealth or physically located within the PJM region;

(b) falling water resources located in the Commonwealth or physically located within the PJM region that were in operation as of January 1, 2020, that are owned by a Phase I or Phase II Utility or for which a Phase I or Phase II Utility has entered into a contract prior to January 1, 2020, to purchase the energy, capacity, and renewable attributes of such falling water resources;

(c) non-utility-owned resources from falling water that (1) are less than 65 megawatts, (2) began commercial operation after December 31, 1979, or (3) added December 31, 1979, provided that such resources are located in the Commonwealth or are physicallyter located within the PJM region;

(d) waste-to-energy or landfill gas-fired generating resources located in the Commonwealth and in operation as of January 1, 2020, provided that such resources do not use waste heat from fossil fuel combustion or forest or woody biomass as fuel;

however, in no year may any RPS eligible source using biomass sell RECs in excess of the actualactualB megawatt-hours of electricity generated by such facility that year.

In order to comply with thethe4RPS RPS Program, each Phase I and Phase II Utility may use and retire the environmental attributes associatedasso1iated withoperation, anyor existingproposed ownedfor oroperation, contractedin solar,the wind,Commonwealth or fallingphysically waterlocated electricwithin generatingthe resourcesPJM inregion, operation,with orsuch proposedresource forqualifying operation,as ina theCommonwealth-located Commonwealthresource orfor physicallypurposes locatedof withinthis thesubsection, PJMas region,of January 1, 2020, provided such renewable attributes are verified as RECs consistent with the PJM-EIS of HB74 8 of 13 Generation Attribute Tracking System.

HB74H1 8 of 13 Phase I Utilities Phase II Utilities Year RPS Program Year RPS Program Requirement Requirement 2021 6% 2021 14% 2022 7% 2022 17% 2023 8% 2023 20% 2024 10% 2024 23% 2025 14% 2025 26% 2026 17% 2026 29% 2027 20% 2027 32% 2028 24% 2028 35% 2029 27% 2029 38% 2030 30% 2030 41% 2031 33% 2031 45% 2032 36% 2032 49% 2033 39% 2033 52% 2034 42% 2034 55% 2035 45% 2035 59% 2036 53% 2036 63% 2037 53% 2037 67% 2038 57% 2038 71% 2039 61% 2039 75% 2040 65% 2040 79% 2041 68% 2041 83% 2042 71% 2042 87% 2043 74% 2043 91% 2044 77% 2044 95% 2045 80% 2045 and thereafter 100% 2046 84% 2047 88% 2048 92% 2049 96% 2050 and thereafter 100% A Phase II Utility shall meet one percent of the RPS Program requirements in any given compliance year with solar, wind, or anaerobic digestion resources of one megawatt or less located in the Commonwealth, with not more than 3,000 kilowatts at any single location or at contiguous locations owned by the same entity or affiliated entities and, to the extent that low-income qualifying projects are available, then no less than 25 percent of such one percent shall be composed of low-income qualifying projects.

Costs associated with the purchase of energy, capacity, or environmental attributes from facilities owned by the persons other than the utility required by this subsection shall be recovered by the utility either through its rates for generation and distribution services or pursuant to § of 13 56-249.6.

Each Phase I Utility shall petition the Commission for necessary approvals to construct, Icquire,acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of 600 Negawattsmegawatts of 13 of a.

By December 31, 2023, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of at least 200 megawatts of generating capacity located in the Commonwealth using eRergyenergy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities ownedacquisition by personssuch otherPhase thanI theUtility.ity, utility, with the remainder, in the aggregate, being from constDuctionconstruction or acquisitionb. by such Phase I Utility.

By December 31, 2027, each Phase I Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and environmentalalsenvironmental attributes of at least 200 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity E procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility.

By December 31, 2030, each Phase I Utility shall petition the Commission for necessary approvals attributesto ofconstruct, atacquire, leastor 200enter megawattsinto ofagreements additionalto generatingpurchase capacity located in the Commonwealthlenergy, usingcapacity, energyand derivedenvironmental fromattributes sunlightof orat onshoreleast wind,200 andmegawatts 35 percent of suchadditional generating capacity located in the Commonwealth procured shall be from the purchase of energy, capacity, and environmental attributes from solarsolaU or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase I Utility.

HS d.

Nothing in this subdivision 1 shall prohibit such Phase I Utility from constructing, acqu7ring,acquiring, or entering into agreements to purchase the energy, capacity, and environmental attributes of more4thanmoreEthan 600 onshore wind, provided the utility receives approval from the Commission pursuant to §§ 56-580 and 56-585.1.

By December 31, 2035, each Phase II Utility shall petition the Commission for necessary S approvals to (i) construct, acquire, or enter into agreements to purchase the energy, capacity, and environmental attributes of 16,100 megawatts of generating capacity located in the CommonwealthCommonwealthUusing using energy derived from sunlight or onshore wind, which shall include 1,100 megawatts of solar generation of a nameplate capacity not to exceed three megawatts per individual project and 35 percent of suchsuchon generating capacity procured shall be from the purchase of energy, capacity, and environmental Sttributes from solar facilities owned by persons other than a utility, including utility affiliates and deregulated affiliates and (ii) pursuant to § 56-585.1:11, construct or purchase one or more offshore wind generation facilities located off the Commonwealth's Atlantic shoreline or in federal waters and interconnectedinterconnIcted directlymegawatts intoof the Commonwealth16,100 withmegawatts anshall aggregatebe capacityplaced ofon uppreviously todeveloped 5,200project megawatts.sites.east 200 a.

AtBy December 31, 2024, each Phase II Utility shall petition the Commission for necessary T approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, andU environmental attributes of at least 2003,000 megawatts of generating capacity located in the 16,100T megawattsCommonwealth shallusing beenergy placedderived onfrom previouslysunlight developedor projectonshore sites.wind, and 35 percent of such generating solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility.

a.

By December 31, 2024, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility.

B c.

By December 31, 2030, each Phase II Utility shall petition the Commission for necessary 4 approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, andand1 environmental attributes of at least 4,000 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generatinggeneratingthe capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the HB74 10 of 13 aggregate, being from construction or acquisition by such Phase II Utility.

By December 31, 2035, each Phase II Utility shall petition the Commission for necessary approvals to construct, acquire, or enter into agreements to purchase the energy, capacity, and HB74H1 10 of 13 environmental attributes of at least 6,100 megawatts of additional generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind, and 35 percent of such generating capacity procured shall be from the purchase of energy, capacity, and environmental attributes from solar or onshore wind facilities owned by persons other than the utility, with the remainder, in the aggregate, being from construction or acquisition by such Phase II Utility.

If, in any year, a Phase I or Phase II Utility is unable to meet the compliance obligation of the RPS Program requirements or if the cost of RECs necessary to comply with RPS Program requirements exceeds $45 per megawatt hour, such supplier shall be obligated to make a deficiency payment equal to $45 for each megawatt-hour shortfall for the year of noncompliance, except that the deficiency payment for any shortfall in procuring RECs for solar, wind, or anaerobic digesters located in the Commonwealth of 13 shall be $75 per megawatts hour for resources one megawatt and lower.

A Phase I or Phase II Utility shall Iebe entitled to recover the costs of such payments as a cost of compliance with the requirements of this subNectionsubsection of 13 deposited into an interest-bearing account administered by the Department of Energy.

(i) 50 percent of total revenue shall be directed to job training programs in historically economically disadvantaged R communities;

(iii) 30 percent of total revenue shall be directed to renewable energy programs located in historicallydirected economicallyto disadvantagedadministrative costs.ntaged communities;

and (iv) four percent of total revenue shaDlshall be directedFor any project constructed pursuant to administrativethis costs.subsection or subsection E, a utility shall, subject to a competitive procurement process, procure equipment from a Virginia-based or United States-based manufacturer using materials or product components made in Virginia or the United States, if reasonably available and competitively priced.

competitivePhase procurementI process,and procurePhase equipmentII fromUtility ashall Virginia-basedpetition orthe UnitedCommission States-basedUjectfor tonecessary aapprovals manufacturerto usingconstruct materialsoreach oracquire productnew, componentsutility-owned madeenergy instorage Virginiaresources. or the United States, if reasonably available and competitively priced.

E E.

To enhance reliability and performance of the utility's generation and distribution system, each Phase I and Phase II Utility shall petition the Commission for necessary approvals to construct or acquire new, utility-owned energy storage resources.

By December 31, 2035, each Phase I Utility shall petition the Commission for necessary approvals prohibitto aconstruct Phase I Utility from constructing or acquiringacquire more than 400 megawatts of energy storage,storage providedcapacity. that the utility receives approval from the Commission pursuant to §§ 56-580 and 56-585.1.

2.Nothing in this subdivision shall prohibit a Phase I Utility from constructing or acquiring more than 400 megawatts of energy storage, pro2.

By December 31, 2035, each Phase II Utility shall petition the Commission for necessarynecessary58U.1. approvals to construct or acquire 2,700 megawatts of energy storage capacity.

Nothingapprovals into thisconstruct subdivision shall prohibit a Phase II Utility from constructing or acquiringacquire more than 2,700 meHawattsmegawatts of energy storage,storage providedcapacity. that the utility receives approval from the Commission pursuant to 7 §§ 56-580 and 56-585.1.

4Nothing mayin procurethis subdivision shall prohibit a singlePhase energyII storageUtility projectfrom upconstructing toor 800acquiring megawatts.smore inthan size,2,700 exceptmeSawatts of energy storage, provided that athe Phaseutility IIreceives Utilityapproval 4.from the Commission pursuant to §§ 56-580 and 56-585.1.

E may procure a single energy storage project up to 800 megawatts.s in size, except that a Phase II Utility 4.

S 5.

After July 1, 2020, at least 35 percent of the energy storage facilities placed into service shall be (i) purchased by the public utility from a party other than the public utility or (ii) owned bybyUa a party other2021, thanthe aCommission publicshall utility,adopt withregulations to achieve the capacitydeployment fromof suchenergy facilitiesstorage soldfor totheBy theJanuary public1, utility.Commonwealth required in subdivisions 1 and 2, including regulations that set interim targets aSd update existing utility planning and procurement rules.

By January 1, 2021, the Commission shall adopt regulations to achieve the deployment of energy storage for the update existing utility planning and procurement rules.

F.I this section or pursuant to § 56-585.1:11, including (i) costs of generation facilities powered by sunlight or onshore or offshore wind, or energy storage facilities, that are constructed or acquired by a Phase I or Phase II Utility after July 1, 2020, (ii) costs of capacity, energy, or environmental attributes from generation facilities powered by sunlight or onshore or offshore wind, or falling water, or eneTgy storage facilities purchased by the utility from persons other than the utility through agreements after July 1, associated with RPS Program requirements pursuant to this section shall be recovered from all retail customers in the service territory of a Phase I or Phase II Utility as a non-bypassable charge, irrespective of the generation supplier of such customer, except (a) as provided in subsection G for an accelerated renewable energy buyer or, (b) as provided in subsection H for energy-intensive trade-exposed industries, or (c) as provided in subdivision C 3 of § 56-585.1:11, with respect to the energy buyer or qualifying large general service customer, as those terms are defined in § 56-585.1:11.n If a Phase I or Phase II Utility serves customers in more than one jurisdiction, such utility shall recover all of the costs of compliance with the RPS Program requirements from its Virginia customers thBough the applicable cost recovery mechanism, and all associated energy, capacity, and environmental 4ttributes shall be assigned to Virginia to the extent that such costs are requested but not recovered fro1 any sysBy September 1, 2020, the Commission shall direct the initiation of a proceeding for each Phase I and Phase II Utility to review and determine the amount of such costs, net of benefits, that should be allocated to retail customers within the utility's service territory which have elected to receive electric supply service from a supplier of electric energy other than the utility, and shall direct that tariff provisions be implemented to recover those costs from such customers beginning no later than January 1, 2021.

AllThereafter, costssuch incurredcharges by a Phase I or Phase II Utility related to compliance with the requirements of this section or pursuant to § 56-585.1:11, including (i) costs of generation facilities powered by sunlight or onshore or offshore wind, or energy storage facilities, that are constructed or acquired by a Phase I or Phase II Utility after July 1, 2020, (ii) costs of capacity, energy, or environmental attributes from facilities purchased by the utility from persons other than the utility through agreements after July 1,ge 2020, and (iii)tariff allprovisions other costs of compliance, including costs associated with the purchase of RECs associated with RPS Program requirements pursuant to this section shall be recoveredupdated fromand alltrued retailup customersby in the serviceutility territoryon of a Phase I or Phase II Utility as a non-bypassable charge, irrespective of the generation supplier of such customer, except (a) as provided in subsection G for an acceleratedHB74H1 renewable12 energy buyer or, (b) as provided in subsection H for energy-intensive trade-exposed industries, or (c) as provided in subdivision C 3 of §13 56-585.1:11,annual withbasis, respectsubject to thecontinuing energyreview buyer or qualifying large general service customer, as those terms are defined in § 56-585.1:11.n If a Phase I or Phase II Utility serves customers in more than one jurisdiction, such utility shall recover all of the costs of compliance with the RPS Program requirements from its Virginia customers through the applicable cost recovery mechanism, and allapproval associatedby energy, capacity, and environmental attributes shall be assigned to Virginia to the extentCommission. that such costs are requested but not recovered from any system customers outside the Commonwealth.

By September 1, 2020, the Commission shall direct the initiation of a proceeding for each Phase I allocated to retail customers within the utility's service territory which have elected to receive electric HB74 12 of 13 supply service from a supplier of electric energy other than the utility, and shall direct that tariff provisions be implemented to recover those costs from such customers beginning no later than January 1, 2021.

Thereafter, such charges and tariff provisions shall be updated and trued up by the utility on an annual basis, subject to continuing review and approval by the Commission.

of2. 13 energy-intensive trade-exposed customer exemption program for EITE industries, as defined in § 56-576, as amended by this act, from the non-bypassable charges incurred by a Phase I or Phase Virginia, as amended by this act.

TheThat programthe State Corporation Commission shall considerestablish, theimplement, Californiaand Publicmanage Utilityan energy-intensive trade-exposed (EITE) customer exemption program for EITE industries, as defined in § 56-576 of the Code of Commission'sVirginia, Californiaas Industryamended Assistanceby programthis andact, from the Americannon-bypassable Cleanof Energy13 and§ T56-585.1:11 Securityor Act56-585.5 of 2009the Code of Virginia, as guidance.amended by this act, as a pilot program of designated as the EITE Pilot Program.

RThe OState DCorporation UCommission Cmay Econsider Dthe Bestablishing 4the parameters for the EITE Pilot Program.r relevant programs as guidance in 3.

That the EITE Pilot Program created by the second enactment of this act shall commence no later than January 1, 2023, and the initial aggregate customer load pursuant to such Pilot preceding the date at which the customer is accepted into the EITE Pilot Program.

calendar year 4.

That on or before March 31, 2024, and annually thereafter, the State Corporation Commission House Committee on Commerce and Energy and the Senate Committee on Commerce and Labor,the or to the Chairmen of any successor committees, regarding the status of the EITE Pilot Program, updates on the extent to which the initial aggregate customer load cap has been met, and whether objectives of the EITE Pilot Program.nitial aggregate customer load cap in order to meet the H 5.

That any customer served by a competitive service provider pursuant to § 56-577 of the Code of enactment of this act.

However, the parameters of the EITE Pilot Program shall provide that thend State Corporation Commission may waive any advance notice requirements for any such customer U customer shall be eligible to participate in the EITE Pilot Program.ity, and upon such return, the S E S U B S T I T U T E H H 1