Bill > SB508

This bill directs electric utilities in Virginia, specifically "Phase I Utility" and "Phase II Utility" (defined by their size and service territory as per state law), to assess their existing and planned intermittent electric generation facilities, such as solar farms, to identify any "surplus interconnection service." This surplus refers to unused capacity at a point where a generation facility connects to the electric grid, meaning more power can be sent through that connection without exceeding its limits. The utilities must identify specific points of interconnection where this surplus capacity might be utilized, considering factors like proximity to high electricity demand areas and potential to avoid other infrastructure investments. By January 1, 2027, they must report these findings to the State Corporation Commission (SCC), which is the state agency overseeing utilities. Following this, Phase I utilities will establish a 100-megawatt pilot program and Phase II utilities a 500-megawatt pilot program to test the use of this surplus capacity for energy storage resources and, if deemed practical by the SCC, solar generation facilities. The SCC will approve an independent auditor to help formulate a request for proposals (RFP) for these pilot programs, which will seek projects that can utilize existing interconnection points for surplus capacity. The results of these RFPs will be submitted to the SCC as part of the utilities' 2027 applications for approval to construct or acquire these resources. The bill also clarifies that "capacity interconnection rights" are permissions to connect generation facilities to the grid and transmit a specific amount of power, and an "interconnection agreement" is a contract for such service. Importantly, the bill allows energy storage resources to charge directly from the electric distribution grid without extra permits, as long as they do not charge from a carbon-emitting power plant. Some provisions of this bill will take effect on January 1, 2027.

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https://lis.virginia.gov/bill-details/20261/SB508