Bill > HB2266

This bill establishes a distribution cost sharing program for electric utilities in Virginia that aims to facilitate the interconnection of renewable energy projects to the electric grid. Specifically, the bill directs the State Corporation Commission (SCC) to create regulations by July 1, 2026, for Dominion Energy Virginia and Appalachian Power that will help distribute the costs of grid infrastructure upgrades required to connect new renewable energy projects. Under the program, when a grid upgrade is necessary to interconnect a "triggering project" (an initial project that requires infrastructure improvements), the costs of that upgrade will be shared proportionally among subsequent "sharing projects" based on their electrical capacity. The bill provides tax incentives for businesses by allowing them to deduct the costs of these grid upgrade installations on their state income tax returns starting in 2026. The utilities are required to file necessary implementation documents by December 1, 2026, and the SCC must submit a report on the program's implementation to legislative committees by November 1, 2028. Key terms like "hosting capacity" (the amount of generation a distribution system can accommodate) and "qualifying upgrade" (a system upgrade that increases grid capacity) are defined in the bill to provide clarity on the program's mechanics.

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https://lis.virginia.gov/bill-details/20251/HB2266