SB 984 — Electric utilities; net metering.
Last action — Left in Commerce and Energy
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✓Introduced
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✓In Committee
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3Passed Senate
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4Passed House of Delegates
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5To Executive
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6Enacted
This bill died with 2023 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
266 added · 271 removedPlain-language change summary
The recent amendment to SB 984 updates provisions regarding net energy metering for agricultural customer-generators. Key changes include clarifying timelines and eligibility requirements, specifically allowing eligible agricultural customer-generators to choose how they interconnect and participate in net metering. This matters because it aims to streamline the process for farmers who generate their own electricity, potentially making it easier for them to benefit from renewable energy sources. By eliminating overlapping eligibility options, the amendment seeks to create a clearer regulatory framework that could enhance participation in renewable energy generation.
SESSION INTRODUCEDHOUSE 23101495DSUBSTITUTE I23107062D SENATE BILL NO.
984 OfferedAMENDMENT JanuaryIN 11,THE 2023NATURE NOF PrefiledA JanuarySUBSTITUTE 6,(Proposed 2023by Tthe House Committee on Commerce and Energy on February 16, 2023) (Patron Prior to Substitute––Senator Mason) A Butilities;BILL to amend and reenact §§ 56-594 and 56-594.02 of the Code of Virginia, relating to electric Be it enacted by the General Assembly of Virginia:ors and eligible agricultural customer-generators.
net1. metering;
eligible customer-generators and eligible agricultural customer-genRrators.
–––––––––– Patron––Mason O –––––––––– D Referred to Committee on Commerce and Labor –––––––––– U Be it enacted by the General Assembly of Virginia:
C 1.
§ 56-594.
Net energy metering provisions.
The Commission shall establish by regulation a program that affords eligible customer-generators the opportunity to participate in net energy metering, and a program, to begin no later than July 1, 2014, for customers of investor-owned utilities and to begin no later than July 1, 2015, and to end July 1, 2019, for customers of electric cooperatives as provided in subsection G, to afford eligible agricultural customer-generators the opportunity to participate in net energy metering.
or (vi) any combination of the foregoing, as the Commission U determines will facilitate the provision of net energy metering, provided that suchthe requirementsCommission dodetermines notagricultural adverselygenerators affector eligible agricultural customer-generators may elect to interconnect pursuant to the publicprovisions interest.of this section or as small agricultural generators pursuant to § 56-594.2, but Eot both.
On and after July 1, 2017, smallines agricultural generators or eligible agricultural customer-generators may elect to interconnect pursuant to the provisions of this section or as small agricultural generators pursuant to § 56-594.2, but not both.
For electricelectSic cooperatives,interconnected eligiblebefore agriculturalJuly customer-generators1, whose2019, renewablemay continue to participate in net energy generatingmetering facilitiespursuant wereto thisre section for a period not to exceed 25 years from the date of their renewable energy generating facility's original interconnection.
B B.
S "Eligible agricultural customer-generator" means a customer that operates a renewable energyT source solar power, wind power, or aerobic or anaerobic digester gas, (ii) does not have an aggregatele energy :generation capacity of more than 500 kilowatts, (iii) is located on land owned or controlled by the 36 agricultural business, (iv) is connected to the customer's wiring on the customer's side of itsT 37 interconnection with the distributor;
35(v) generatingis facilityinterconnected asand partoperated ofin anparallel agriculturalwith business, which generating facility (i) uses as its sole energy 36 source solar power, wind power, or aerobic or anaerobic digester gas, (ii) does not have an aggregateelectric / 37 generation capacity of more than 500 kilowatts, (iii) is located on land owned or controlled by the 38 agricultural business, (iv) is connected to the customer's wiring on the customer's side of its company's transmission and distribution facilities, and (vi) is used primarily to provide energy toicto 39 metered accounts of the agricultural business.
An eligible agricultural customer-generator may beTe served by multiple meters serving the eligible agricultural customer-generator that are located at the same or adjacent sites, such that the eligible agricultural customer-generator may aggregate in a singlesinglE account the electricity consumption and generation measured by the meters, provided that the same utility serves all such meters.
(iii) is located on land owned or leased by the customer and is connected to the customer's wiring on the customer's side of itsiSs interconnection with the distributor;
and (v) is intended primarily to offset allall4or or part of the customer's own electricity requirements.
ANo contractcontract, thatlease, provides for the ownership, maintenance, or operationarrangement of an electrical generating facility by which a thirdthirH party throughproperty a lease agreement with fixed monthly payments shall not constitute the sale of electricity andor shall not cause the eligiblecustomer-generator throughor suchthe athird leaseparty agreement to be considered an electric utility.utility by virtue of participating in net energy metering.
In addition to the electricalfacilityelectrical SB984 2 of 6 generating facility size limitations in clause (i), the capacity of any generating facility installed under this section between July 1, 2015, and July 1, 2020, shall not exceed the expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available.
In addition to the electrical generating facility SB984H1 2 of 6 size limitation in clause (i), in the certificated service territory of a Phase I Utility, the capacity of any generating facility installed under this section after July 1, 2020, shall not exceed 100 percent of the expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available, and in the certificated service territory of a Phase II Utility, the capacity of any generating facility installed under this section after July 1, 2020, shall not exceed 150 percent of the expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available.
The eligible customer-generator or eligible agricultural customer-generator owns any renewable energy certificates associated with its of 6 electrical generating facility;
however, at the time that the eligible customer-generator or eligible agricultural customer-generator enters into a power purchase agreement with its supplier, the eIigibleeligible customer-generator or eligible agricultural customer-generator shall have a one-time option to Nellsell the compensatedrenewable atenergy ancertificates amountassociated thatwith issuch establishedelectrical bygenerating thefacility Commission to reflectits thesupplier valueand be of such6 renewable be energy certificates.
Nothing in this section shall prevent the eligible customer-generator or eligible agricultural customer-generator and the supplier from voluntarily entering into an agreement foRfor the sale and purchase of excess electricity or renewable energy certificates at mutually-agreed upon prices if the eligible customer-generator or eligible agricultural customer-generator does not exercise its option to sell its renewable energy certificates to its supplier at Commission-approved prices at the time thaDthat the eligibleagreement customer-generatorwith or eligible agricultural customer-generator enters into a power purchase renewable energy certificates from eligible customer-generators or eligible agriculturalricity Und customer-generators shall be recoverable through its Renewablesupplier. Energy Portfolio Standard (RPS) rate adjustment clause, if the supplier has a Commission-approved RPS plan.
IfAll not,costs thenincurred allby coststhe sEallsupplier to purchase excess electricity andse renewable energy certificates from eligible customer-generators or eligible agricultural customer-generators shall be recoverable through theits supplier'sRenewable fuelEnergy Portfolio Standard (RPS) rate adjustment clause.clause, if the supplier has a Commission-approved RPS plan.
ForIf purposesnot, ofthen thisall section,costs "all costs" shall be definedrecoverable asthrough the ratessupplier's paidfuel toadjustment theclause. eligible customer-generator or eligible agricultural customer-generator for the purchase of excess electricity and renewable energy certificates and any administrative costs incurred to manage the eligible customer-generator's or eligible agricultural customer-generator's power customer-generators or eligible agricultural customer-generators on a first-come, first-served basis in each electric distribution company's Virginia service area until the rated generating capacity owned and operated by eligible customer-generators, eligible agricultural customer-generators, and small agricultural generators in the Commonwealth reaches six percent, in the aggregate, five percent of which is available to all customers and one percent of which is available only to low-income utility customers of Sach electric distribution company's adjusted Virginia peak-load forecast for the previous year, and9shall require the supplier to pay the eligible customer-generator or eligible agricultural customer-g4nerator for sucOn and after the earlier of (i) 2024 for a Phase I Utility or 2025 for a Phase II Utility or (ii) when the aggregate rated generating capacity owned and operated by eligible customer-generators, eligible agricultural customer-generators, and small agricultural generators in the Commonwealth reaches three percent of a Phase I or Phase II Utility's adjusted Virginia peak-load forecast for the previous year, the Commission shall conduct a net energy metering proceeding.
InFor anypurposes netof energythis meteringsection, proceeding,"all thecosts" Commissionshall shall,for afterthe noticepurchase andof opportunityexcess forelectricity hearing, evaluate and establishrenewable (a)energy ancertificates amountand customersany shalladministrative paycostserator onincurred theirto utilitymanage bills each month for compensate the customer,eligible ascustomer-generator's determinedor byeligible theagricultural Commission,customer-generator's forpower thepurchase totalarrangements. benefits such facilitiesately provide;
The net metering standard contract or tariff shall be available to eligible customer-generators or eligible agricultural customer-generators on a first-come, first-served basis in each electric distribution company's Virginia service area until the rated generating capacity owned and generators in the Commonwealth reaches six percent, in the aggregate, five percent of which is Uvailableral to all customers and one percent of which is available only to low-income utility customers of each electric distribution company's adjusted Virginia peak-load forecast for the previous year, andSshall require the supplier to pay the eligible customer-generator or eligible agricultural customer-generator for such excess electricity in a timely manner at a rate to be established by the Commission.
E (ii) when the aggregate rated generating capacity owned and operated by eligible customer-generators,y or eligible agricultural customer-generators, and small agricultural generators in the Commonwealth reaches three percent of a Phase I or Phase II Utility's adjusted Virginia peak-load forecast for the pSevious year, the Commission shall conduct a net energy metering proceeding.
In any net energy metering proceeding, the Commission shall, after notice and opportunity foU the costs of using the utility's infrastructure;
(b) an amount the utility shall pay to appropriatelyor compensate the customer, as determined by the Commission, for the total benefits such facilitieS provide;
The Commission shall establish an appropriate rate structure related thereto, which shall govern compensation related to all eligible customer-generators,customer-genIrators, eligible agricultural customer-generators, and small agricultural generators, except low-income utility customers, that interconnect after the effective date established in the Commission's final order.
Nothing in the Commission's final order shall affect any eligible customer-generators, eligible agricultural customer-generators, and small agricultural generators who interconnect before the effective date of such final order.
As part of the net energy metering proceeding, the Commission shall evaluate the sixsTx of such percent aggregate net metering cap and may, if appropriate, raise or remove such cap.
The Commission shall enter its final order in such a proceeding no later than 12 months after it commences such proceeding, and such final order shall establish a date by which the new terms and conditions shall apply for interconnection and shall also provide that, if the terms and conditions of compensation in the final order differ from the terms and conditions available to customers before the proceeding, low-income utility customers may interconnect under whichever terms are most favorable to them.
serviceF. territory of a Phase II Utility who owns and operates, or contracts with other persons to own, operate, or both, an electrical generating facility with a capacity that exceeds 15 kilowatts shall pay to its supplier, in addition to any other charges authorized by law, a monthly standby charge.
Any residential eligible customer-generator or eligible agricultural customer-generator, in the operate, or both, an electrical generating facility with a capacity that exceeds 15 kilowatts shall pay to its supplier, in addition to any other charges authorized by law, a monthly standby charge.
The Commission shallsha8l approve a supplier's proposed standby charge methodology if it finds that the standby charges collectedcHllected fromsupplier allto suchrecover eligibleonly customer-generatorsthe andportion eligibleof agriculturalthe customer-generatorssupplier's allowinfrastructure thecosts that are properly associated with serving such eligible customer-generators or eligible agricultural customer-generators.
Such an eligible with SB984 4 of 6 customer-generator or eligible agricultural customer-generator shall not be liable for a standby charge until the date specified in an order of the Commission approving its supplier's methodology.
An eligible SB984H1 4 of 6 customer-generator or eligible agricultural customer-generator that operates a battery storage device of capacity commensurate with and equal to or greater than that of the electrical generating facility and in conjunction with the electrical generating facility shall be exempt from standby charges.
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On and after the later of July 1, 2019, or the effective date of regulations that the Commission is required to adopt pursuant to §56-594.01,§ 56-594.01, (i) net energy metering in the service territory of each electric cooperative shall be conducted as provided in a program implemented pursuant to § 56-594.01 and (ii) the provisions of this section shall not apply to net energy metering in the service territory of an electric cooperative except as provided in § 56-594.01.
Determine a specific avoided cost for customer-generators, the different type of customer-generator technologies where the Commission deems it appropriate, and establish the methodology for determining the compensation rate for any net excess generation determined according to the applicable net measurement interval for any new tariff.tariff;
and 4.
Make all reasonable efforts to ensure that the net energy metering program does not result in cost-shifting to nonparticipating electric utility customers.
NothingAny in this section shall limit the ability of an eligible customer-generator or eligible agricultural customer-generator tomay participate in a distributed energy resource aggregation or other retail program involving demand response, energy efficiency, or peak reduction from dispatch of onsite battery service, provided that the compensation received is in exchange for a distinct service that is not already compensated by net metering credits for electricity exported to the electric distribution system.system or compensated by any other utility program or tariff.
The Commission shall review and use the imposition of standby or other charges on eligible customer-generators or eligible agricultural customer-generators in any net energy metering proceeding conducted pursuant to subsection E.
The Commission shall conduct pilot programs under which a person that owns or operates a solar-powered or wind-powered electricity generation facility located on premises owned or leased by an eligible customer-generator, as defined in § 56-594, shall be permitted to sell the electricity generated from such facility exclusively to such eligible customer-generator under a power purchase agreement used to provide third party financing of the costs of such a renewable generation facility (third party of 6 power purchase agreement), subject to the following terms, conditions, and restrictions:restrictions:ty (third party 1.
1.Notwithstanding subsection G of § 56-580 or any other provision of law, a pilot program shall be conducted within the certificated service territory of each investor-owned electric utility ("Pilot Utility");
Notwithstanding2. subsection G of § 56-580 or any other provision of law, a pilot program sIall be conducted within the certificated service territory of each investor-owned electric utility ("PNlot Utility");
Except as provided in this subdivision, both jurisdictional and nonjurisdictional customers may participate in such pilot programs on a first-come, first-serve basis.
The aggregated capacity of all generation facilities that are subject to such third party power purchase agreements at any time during the pilot program shall not exceed 500 megawatts for Virginia jurisdictional customers and 500500me Rduring megawatts for Virginia nonjurisdictional customers.
Such limitation on the aggregated capacity of such facilities shall constitute a portion of the existing limit of six percent of each Pilot Utility's adjusted Virginia peak-load forecast for the previous year that is available to eligible customer-generaDorscustomer-generators pursuant to subsection E of § 56-594.
Notwithstanding any provision of this section that incorporates power purchase agreement subject to the conditions and provisions of the Pilot Utility's net energyd party metering program under § 56-594 or (ii) provide that electricity generated from the generation facilities subject to the third party power purchase agreement will not be net metered under § 56-594, proEidedprovided that an election not to net meter under § 56-594 shall not exempt the third party power purchase agreement and the parties thereto from the requirements of this section that incorporate provisions of § 56-594;53.
3.A solar-powered or wind-powered generation facility with a capacity of no less than 50 kiUowatts and no more than three megawatts shall be eligible for a third party power purchase agreement under a pilot program;
Ahowever, solar-poweredif the customer under such agreement is a low-income utility customer, Ss defined in § 56-576, or wind-poweredis generationan facilityentity with atax-exempt status in accordance with § 501(c) of the Internal Revenue Code of 1954, as amended, then such facility is eligible for the pilot program even if Et does megawatts shall not affect the limits on the capacity of noelectrical lessgenerating thancapacities 50of 25 kilowatts for residential customers and three megawatts for nonresidential customers set forth in subsection B of § 56-594, which limitations shall continue to apply to net energy metering generation facilitieS regardless of whether they are the subject of a third party power purchase agreement under the pilot program;
however,4. if the customer under such agreement is a low-income utility customer, aser a defined in § 56-576, or is an entity with tax-exempt status in accordance with § 501(c) of the Internal Revenue Code of 1954, as amended, then such facility is eligible for the pilot program even if it does not meet the 50 kilowatts minimum size requirement.
TheA maximum generation capacityfacility ofthat threeis megawatts shall not affect the limitssubject on the capacity of electricala generatingthird capacitiesparty ofpower 25Skilowattspurchase foragreement residentialunderUthe customerspilot andmultiple threecustomers; megawatts for nonresidential customers set forth in subsect9on B of § 56-594, which limitations shall continue to apply to net energy metering generation facilitie4 regardless of 4.
A generation facility that is the subject of a third party power purchase agreement under the pilot program shall serve only one customer, and a third party power purchase agreement shall not serveserBe multiple5. customers;
5.The customer under a third party power purchase agreement under the pilot program shall bS subject to the interconnection and other requirements imposed on eligible customer-generators pursuant to subsection C of § 56-594, including the requirement that the customer bear the reasonable costs, as determined by the Commission, of the items described in clauses (i), (ii) (a), and (iii) (b) ofIsuch sub6.
TheA customer under a third party power purchase agreement under the pilot program shall not be subjectvalid tounless theit interconnectionconforms andin otherall respects to the requirements imposedof onthe eligiblepilot customer-generatorsprogram pursuantconducted tounder subsectionthe Cprovisions of §this 56-594,section includingand unless the requirementCommission thatand the customerPilot bearUtility are provided written notice of the reasonableparties' costs,intent asto determinedenter byinto thea Commission,third ofparty thepower itemspurchase describedagreement innot clausesless (i),than (ii)30 (a),days andprior (iii)to (b)the ofagreemeTt's suchproposed sub6.effective date;
Aand third party power purchase agreementarrangements underon the pilotsame programbasis shallas notmay beany validother unlessperson itthat conformssatisfies in all respects to the requirements ofofer thebeing pilota programseller conducted under the provisions of this section and unless the Commission and the Pilot Utility are provided written notice of the parties' intent to enter into a third party power purchase agreement notunder less than 30 days prior to the agreement'spilot proposedprogram. effective date;
andB. 7.
An affiliate of the Pilot Utility shall be permitted to offer and enter into third party power purchase arrangements on the same basis as may any other person that satisfies the requirements of beiB.
C.established pursuant to subsection A is prohibited in the Pilot Utility's service territory, unless such third party power purchase agreement is entered into between a licensed supplier and a retail customer pursuant to § 56-577 where such supplier is responsible for serving 100 percent of the load requirements for each retail customer account it serves.
Any8 thirdD. party power purchase agreement that is not entered into pursuant to the pilot program established pursuant to subsection A is prohibited in the Pilot Utility's service territory, unless such third party power purchase agreement is entered into between a licensed supplier and a retail customer pursuant to § 56-577 where such supplier is responsible for serving 100 percent of the load requirements forD.
If the Commission approves a tariff proposed for electric power provided 100 percent fromfromH renewable energy that serves 100 percent of the load requirements for each retail customer account it serves under such tariff, hereafter referred to as a "green tariff," such a green tariff shall not be available to any party to a third party power purchase agreement for the account being served by such power purchase agreement, and such an agreement shall remain in effect notwithstanding the approval of the green tariff.
Nothing in this section shall be construed as (i) rendering any person, by virtue of its selling electric power to an eligible customer-generator under a third party power purchase agreement entered SB984H1 6 of 6 into pursuant to the pilot program established under this section, a public utility or a competitive service SB984 6 of 6 provider, (ii) imposing a requirement that such a person meet 100 percent of the load requirements for each retail customer account it serves, or (iii) affecting third party power purchase agreements in effect prior to July 1, 2013.
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View plain text versions (2)
- Committee Substitute Committee substitute printed 23107062D-H1 Current pdf February 16, 2023
- Prefiled Prefiled and ordered printed; offered 01/11/23 23101495D pdf January 06, 2023
Action History
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Left in Commerce and Energy
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Rereferred to Commerce and Energy
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Motion to rerefer to committee agreed to
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Passed by for the day
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Read second time
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Committee substitute printed 23107062D-H1
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Reported from Commerce and Energy with substitute (21-Y 0-N)
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House committee, floor amendments and substitutes offered
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House committee, floor amendments and substitutes offered
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Subcommittee recommends reporting with amendments (6-Y 0-N)
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Assigned sub: Subcommittee #1
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Referred to Committee on Commerce and Energy
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Read first time
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Placed on Calendar
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Read third time and passed Senate (40-Y 0-N)
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Read second time and engrossed
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Constitutional reading dispensed (39-Y 0-N)
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Reported from Commerce and Labor (12-Y 1-N)
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Impact statement from SCC (SB984)
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Assigned C&L sub: Energy
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Referred to Committee on Commerce and Labor
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Prefiled and ordered printed; offered 01/11/23 23101495D
Sponsors
- T. Montgomery "Monty" Mason · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 147 not signed on
Sponsors (1)
Co-sponsors (0)
None.
Not signed on (147)
147 members have not signed on to this bill.
Show all 147 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
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Subjects
Frequently asked questions
- Who sponsors SB 984?
- SB 984 is sponsored by Mason, T. Montgomery "Monty".
- What is the current status of SB 984?
- This bill died with 2023 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track SB 984?
- Track SB 984 free on One Click Politics — get push/email alerts when it moves.
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