General Assembly chews on, spits out healthy legislation, while still trying to digest a huge hunk of pork

They just keep getting fatter.

If you were bewildered by the sheer volume of bills addressing solar, efficiency, storage, and other energy topics that I outlined last month, take heart: clean energy advocates don’t have nearly as many bills to keep track of now. So few bills survived the Finance and Commerce and Labor Committees that it will be easier to talk about what is left than what got killed.

The bigger story, of course, is the Dominion Ratepayer Rip-Off Act of 2018, which the utility would dearly love you to think of as the “grid modernization bill,” but which might be better imagined as an oozing pork barrel. Recent amendments do make it less obnoxious than it was last week (begging the question of why it wasn’t introduced that way in the first place). The Governor now says he supports the bill, the Attorney General continues to oppose it, and the SCC keeps issuing poisonous analyses.

But right now let’s just run down the fate of the other bills we’ve been following. For explanations of these bills, see previous posts on solar; efficiency, storage and EVs; and energy choice, carbon and coal.

Of the bills affecting customer-sited solar, only a handful remain:

  • HB 1252 (Kilgore), expanding the pilot program for third-party PPAs in APCo territory to cover all nonprofits and local government: amendment ensures current Dominion pilot is unchanged, passes the House, goes to the Senate
  • HB 1451 (Sullivan), allowing a school district to attribute surplus electricity from a solar array on one school to other schools in the district: amendment turns it into a pilot program, passes House C&L
  • SB 191 (Favola), allowing customers to install solar arrays large enough to meet 125% of previous demand (up from 100% today): amended to exclude customers in coop territory*, passes Senate C&L

Delegate Toscano’s bills promoting energy storage remain alive. HB 1018, offering a tax credit for energy storage devices, passed a House Finance subcommittee last week with an amendment to delay its start date to 2020. HJ 101, calling for a study, passed Rules but then was sent to Appropriations, where it was to be heard yesterday. (The Legislative Information Service does not yet show its fate.)

HB 922 (Bulova), allowing localities to install EV charging stations, has been reported from General Laws with amendments. The companion bill, SB 908 (McClellan) passed the Senate.

The Rubin Group’s land use bills passed their respective houses with amendments. The bills are SB 429 (Stanley), its companion bill HB 508 (Hodges), SB 179 (Stanley) and companion bill HB 509 (Hodges).

All other customer-focused solar bills died. So did energy efficiency goals, the mandatory renewable portfolio standard, LED light bulb requirements, and tax credits for EVs and renewable energy. Direct Energy’s energy choice legislation died in both House and Senate in the face of Dominion’s opposition, in spite of an astonishingly diverse array of business supporters; even the support of Conservatives for Clean Energy was not enough to garner any Republican votes in the House C&L subcommittee.

Republicans also killed the Governor’s RGGI bills while passing Delegate Poindexter’s anti-RGGI bill, HB 1270, in the House. Delegate Yancey’s anti-regulation HB 1082, appears to be alive in a subcommittee, though Delegate Freitas’ anti-regulation bill died, and Senator Vogel’s effort to change the constitution to allow legislative vetoes of regulations died in committee.

Delegate Kilgore’s HB 665, restoring tax subsidies to coal companies to facilitate destroying Virginia mountains, passed House Finance on a party-line vote. Shockingly, Senator Chafin’s similar bill, SB 378, passed the Senate with support from Democrats Marsden, Petersen, Edwards, Dance, Lewis, Mason and Saslaw.

So once again, in spite of a remarkable election that swept progressive Democrats into the House and nearly upended Republican rule, clean energy advocates have done poorly this year. Some of their priorities are now part of the Dominion pork barrel legislation, to be sure. But that legislation enables utility solar and utility spending; it does nothing for customer-owned renewable energy, market competition, climate action, or consumer choice.

Dominion still rules the General Assembly, though the legislators who voted in line with the utility’s wishes won’t admit it—or give any other explanation. The Republican members of the House Commerce and Labor subcommittee slashed their way through the pro-consumer bills with ruthless efficiency, and did not bother explaining their votes. (A special shout-out goes to Democratic delegates Kory, Ward, Heretick and Bourne for just as stubbornly voting in support of the good bills.)

But over in Senate C&L, chairman Frank Wagner tried to maintain the pretense that he was merely “referring” his colleagues’ bills to the Rubin Group instead of actually killing them.

The closed-door, private, invitation-only, utility-centric Rubin Group has no legislators among its members and proposes only changes to the law that all its members like, so “sending” a bill there that the utilities oppose is pure farce. Yet that was the fate of Senator Edwards’ bills on third party PPAs, agricultural net metering, and community solar, and Senator Wexton’s community solar bill. Wagner instructed these Senators to “work with” the Rubin Group on their bills. None of the other committee members objected.

But it’s not like the Rubin Group achieved much, either. Its hallmark legislation putting 4,000 MW of utility solar in the public interest got thrown into the Dominion pork barrel (and was later upped to 5,000 MW), along with energy efficiency bills designed to eliminate the SCC’s over-reliance on the RIM test, requirements for utility spending on energy efficiency, and Delegate Habeeb’s nice battery storage pilot program. They all became tasty morsels designed to offset legislators’ queasiness over the ratepayer rip-off and, not incidentally, to maneuver advocates and bill patrons into supporting Dominion’s bill as the only way to get their own legislation passed into law.

 

 

More 2018 bills: energy efficiency, storage, and electric vehicles

 

This prototype of the 2020 Tesla Roadster is not among the EVs available for test drives at Conservation Lobby Day. I’m using the picture anyway because it is as close as I will ever come to owning one. Photo credit Smnt via Wikimedia Commons.

My post last week covered the significant renewable energy bills, especially solar bills, introduced by the end of the first week of the 2018 legislative session. In this post I tackle three other bill categories of interest to clean energy advocates: energy efficiency, energy storage, and electric vehicles.

There is more to some of these bills than my brief description indicates; I just highlight the points I think are most interesting. Also, as with the solar bills, there may be more bills added in the coming week, so keep checking back for updates.

Energy Efficiency

Virginia’s woeful performance on energy efficiency was the subject of a recent guest post here by my colleague Melissa Christensen. A number of legislators have tried in recent years to turn this around, with remarkably little success.

Delegate Rip Sullivan has worked as hard as anyone on finding legislative fixes. He has several efficiency bills this year. HB 963 is the most impactful, requiring electric and gas utilities to meet energy efficiency targets, and to submit plans to the State Corporation Commission (SCC) for its approval describing how they will achieve the targets. The bill would also require utilities and the SCC to prioritize money-saving efficiency measures over proposals for new generation or transmission facilities.

Taking a narrower approach to the problem, two other Sullivan bills address the four tests the SCC uses to determine whether to approve an energy efficiency program proposed by a utility. The SCC has relied on the Ratepayer Impact Measure (RIM) test to reject programs that otherwise would provide cost-effective energy savings. HB 964 removes the RIM test from the list of tests the SCC is required to consider when determining that an energy efficiency program proposed by an electric utility is in the public interest. Instead, the SCC would consider whether the net present value of a program’s benefits exceeds the net present value of its costs as determined under the Total Resource Cost Test, the Utility Cost Test, and the Participant Test.

Taking a different tack, HB 965 defines the Total Resource Cost Test as a test to determine if the benefit-cost ratio of a proposed energy efficiency program or measure is greater than one. An energy efficiency program or measure that meets the Total Resource Cost Test is declared to be in the public interest. If it fails the test, it would then be reviewed under the other tests.

Delegate Tim Hugo’s HB 1261 proposes another way to undercut the SCC’s over-reliance on the RIM test. The bill provides that an energy efficiency program proposed by an electric utility is in the public interest if the net present value of the benefits exceeds the net present value of the costs as determined by any three of the existing law’s four benefit-cost tests. At least, that is surely the intent. Other reviewers say the bill’s wording could potentially be interpreted in a way that undermines its intent.

Two other Sullivan bills also deserve mention. HB 560 establishes a revolving fund to provide no-interest loans to any locality, school division, or public institution of higher education for energy conservation or efficiency projects. HB 204 would allow localities to adopt ordinances to assist commercial building owners in getting energy usage data for tenants in the building.

Finally, Delegate Bell’s HB 58 would generally require state agencies to use LED bulbs instead of incandescent light bulbs for new outdoor lighting fixtures or when replacing bulbs in existing fixtures.

Energy storage

Energy storage is one of the hot topics in energy today. In most states, the focus is on advanced battery technology, which can take the form of battery packs small enough for residential and commercial customers, or arrays large enough to provide utilities with an alternative to new generating plants. The value of customer-sited battery systems goes beyond being able to use solar energy at night; batteries can also provide grid services and help communities prepare for widespread power outages caused by storms or attacks on the grid.

In Virginia, Dominion Energy currently seems more interested in pumped storage hydropower, a decades-old technology that uses reservoirs to store surplus energy, traditionally energy generated at night from coal and nuclear plants, for use in the daytime. A 2017 law gives Dominion support for pumped storage using old coal mines, potentially a boost for the economy of Southwest Virginia but an unproven technology rife with questions about its economic viability and environmental impacts.

At any rate, energy storage will be playing an increasingly important role in Virginia as elsewhere, and three of this year’s bills address it. Delegate Toscano’s HB 1018 seeks to incentivize customer acquisition of energy storage systems with a tax credit of 30% of an energy storage system’s cost, up to $5,000 for a residential storage system or $75,000 for a commercial system. Delegate Habeeb’s HB 782 addresses energy storage at the utility level. It requires the SCC to establish a pilot program under which Dominion and APCo would submit proposals to deploy batteries, up to 10 MW for APCo and up to 30 MW for Dominion.

HJ 101 (Toscano) is a study bill. It tasks the Department of Mines, Minerals and Energy with conducting a two-year study to determine what regulatory reforms and market incentives are necessary to increase the use of energy storage devices in Virginia (including pumped storage hydropower).

Electric Vehicles

As with battery storage, electric vehicle technology is only just starting to register as an important topic in Virginia, and its impact—on utilities, the grid, air pollution and the economy—is just beginning to be discussed. This may be the year legislators become engaged. DriveElectric RVA, an electric vehicle advocacy group, plans to offer test drives of EVs at the capitol on January 22, Conservation Lobby Day.

Three bills deal with EVs this year. HB 469 (Reid) offers a tax credit of up to $3,500 for purchase of a new electric vehicle. HB 922 authorizes local governments to install charging stations and charge for the electricity (individuals and businesses can already do so). HJ 74 (Reid) requires a study of the impacts of vehicle electrification, including on workers in the automotive repair industry. One of the selling points for EVs is that they require minimal maintenance.