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Bill > HB2027


VA HB2027

VA HB2027
State Corporation Commission; certificate of operation for high load facilities.


summary

Introduced
01/07/2025
In Committee
01/07/2025
Crossed Over
Passed
Dead
02/22/2025

Introduced Session

2025 Regular Session

Bill Summary

State Corporation Commission; certificate of operation for high load facilities. Prohibits any person from operating a high load facility, defined in the bill as a facility whose electricity demand exceeds 25 megawatts that was not operating before July 1, 2026, without first having obtained a certificate of operation from the State Corporation Commission. The bill requires the Commission to permit the operation of a high load facility upon a finding that such facility and associated facilities (i) will have no material adverse effect upon the rates paid by customers of any regulated public utility in the Commonwealth, taking into account any likely generation, transmission, or distribution needs attributable to the operation of the high load facility; (ii) will have no material adverse effect upon reliability of electric service provided by any regulated public utility; (iii) would be consistent with the Commonwealth Clean Energy Policy; and (iv) are not otherwise contrary to the public interest. The bill requires the Commission to consider certain factors in a review of a petition for a certificate to operate a high load facility, including whether there is sufficient energy, capacity, and grid infrastructure to support the operation of the high load facility and whether the operation of the high load facility would create an unreasonable cross-subsidy across customers served by the incumbent electric utility. Finally, the bill requires the Commission to conduct a proceeding to establish minimum criteria for the issuance of a certificate of operation for a high load facility and requirements for public notice and an opportunity for hearing.

AI Summary

This bill establishes a new regulatory framework for "high load facilities" - defined as facilities with electricity demand of 100 megawatts or greater that are either new after July 1, 2026, or existing facilities expanding to that level of electricity demand. The bill requires such facilities to obtain a certificate of operation from the State Corporation Commission, which will only be granted after a comprehensive review. The Commission must ensure the facility will not negatively impact utility rates, electric service reliability, or the incumbent utility's ability to meet environmental regulations. To demonstrate environmental commitment, facilities must progressively source their electricity from zero-carbon resources, starting at 50% by 2030 and reaching 100% by 2040. The review process will consider factors like grid infrastructure capacity, environmental impact, economic development potential, and potential cross-subsidies among utility customers. The bill also mandates that the Commission develop detailed criteria, application fees, and public notice requirements for these certificates through a formal proceeding, with input from various state agencies, and these rules must be finalized by July 1, 2026. Applicants will be assessed fees to fund the Commission's administrative costs of implementing this new regulatory process.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Left in Labor and Commerce (on 02/05/2025)

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