Energy

Department of Energy to study geothermal energy; State Corporation Commission proceeding to establish geothermal energy requirements for high energy users. Directs the Department of Energy to conduct a study on geothermal electric generating resources and geothermal heating and cooling systems in the Commonwealth and submit a report of its findings and recommendations to the State Corporation Commission by July 1, 2027. The bill also directs the State Corporation Commission to initiate a proceeding by September 30, 2027, to establish requirements for high energy users to utilize standardized amounts of capacity from geothermal electric generating resources and geothermal heating and cooling systems, as informed by the study submitted by the Department of Energy. The bill defines "high energy user" as a retail electric service customer of a utility regulated by the Commission with a consistent demand of 100 megawatts, but the Commission is permitted to adjust the megawatt size threshold for high energy users as determined by the Commission to be appropriate to manage electric demand in the Commonwealth through the use of geothermal energy.

Electric utilities; request for proposals required for certain facilities. Requires Appalachian Power and Dominion Energy Virginia, at least 15 months prior to seeking approval to construct or purchase a generating facility that emits carbon dioxide, to conduct a thorough evaluation of non-carbon-emitting electric generation options through an independent administrator selected by the State Corporation Commission and retained by such utility. The bill directs the Commission to review the framework and schedule of the request for proposals designed by the independent administrator and accept feedback from relevant stakeholders. The bill provides that if the results of the request for proposals indicate that a cost-effective set of proposed resources can meet the identified energy and capacity needs, such utility shall petition the Commission for approval of such resources.

High energy use facilities; natural gas fuel cell generating resources. Permits a high energy use facility, as defined in the bill, that owns or operates a natural gas fuel cell generating resource to enter a contract to generate electric energy on such terms and conditions negotiated with the Dominion Energy or Appalachian Power Company, including provisions related to (i) issuing utility bill credits equivalent to the value of such energy generation and (ii) the utility's purchase of excess power generated by the high energy use facility. The bill requires such natural gas fuel cell generating resource to be located on the same real property as the high energy use facility.

Electric utilities; emissions intensity target program. Requires the State Corporation Commission to develop an emissions intensity target program for Dominion Energy Virginia and Appalachian Power to achieve net-zero emissions. The bill requires the Commission to promulgate regulations to implement its provisions by January 1, 2027. Upon the promulgation of such regulations, the bill repeals certain provisions that require Dominion Energy Virginia and American Electric Power to participate in a renewable energy portfolio standard program, authorize the State Air Pollution Control Board to promulgate certain regulations, and provide that the construction or purchase by a public utility of certain generation facilities is in the public interest.

Electric utilities; development of offshore wind capacity. Increases the maximum capacity for offshore wind generation facilities that is in the public interest to be constructed or purchased by a public utility from 5,200 megawatts to 25,000 megawatts. The bill also changes the deadline for such construction or purchase from December 31, 2032, to December 31, 2030.

Virginia Brownfield and Coal Mine Renewable Energy Grant Fund. Increases from $100 per kilowatt of nameplate capacity from renewable energy sources that are located on brownfields to $200 per kilowatt of nameplate capacity from renewable energy sources that are located on brownfields the grant amount a project developer can receive from the Virginia Brownfield and Coal Mine Renewable Energy Grant Fund. This bill is a recommendation of the Commission on Electric Utility Regulation.