Bill Text: VA HB118 | 2024 | Regular Session | Prefiled
Bill Title: Electric utilities; cost recovery for electric vehicle charging infrastructure.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-02-13 - Left in Labor and Commerce [HB118 Detail]
Download: Virginia-2024-HB118-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding a section numbered 56-581.2 as follows:
§56-581.2. Cost recovery for electric vehicle charging infrastructure.
A. As used in this section, unless the context requires a different meaning:
"Community of color" has the same meaning as provided in §2.2-234.
"Electrical distribution infrastructure" means equipment, structures, and associated engineering and civil construction work designed to support electric vehicle charging stations, including poles, vaults, service drops, transformers, mounting pads, trenching, conduit, wire, cable, meters, and other necessary equipment.
"Environmental justice community" has the same meaning as provided in §2.2-234.
"Low-income community" has the same meaning as provided in §2.2-234.
"Phase I Utility" and "Phase II Utility" have the same meaning as provided for those terms in §56-585.1.
"Transportation electrification" means the use of electricity from external sources to power all or part of passenger vehicles, trucks, buses, trains, boats, or other equipment that transport goods or people.
B. The Commission shall require each Phase I and Phase II Utility to maintain accurate and full accounting of all expenses related to electrical distribution infrastructure as it relates to this section.
C. By May 1, 2025, each Phase I and Phase II Utility shall file a proposal with the Commission to design and deploy all electrical distribution infrastructure on the utility side of a customer's meter for each customer installing separately metered infrastructure to support electric vehicle charging stations, other than those in single-family residences. By September 1, 2025, the Commission shall determine whether to approve and authorize such design and deployment project through a new tariff or rule. Such proposal and such tariff or rule shall provide that related costs incurred by such utility after January 1, 2026, shall be tracked separately and shall be eligible for recovery through such utility's rates for generation and distribution services or through a rate adjustment clause approved pursuant to subdivision A 6 of § 56-585.1, provided that the Commission finds such costs to be reasonable and prudent. In any proceeding in which the Commission reviews such costs, such costs shall be evaluated by the same standards as costs incurred for other necessary and essential distribution infrastructure. The Commission's tariff or rule adopted pursuant to this subsection shall replace or take precedence over any line extension rules or policies, if applicable, as of January 1, 2026, and any customer allowances established shall be based on the full useful life of the electrical distribution infrastructure.
D. By May 1, 2025, and regularly thereafter, each Phase I and Phase II Utility shall file applications to accelerate widespread transportation electrification across the Commonwealth in a manner designed to lower total ratepayer costs and that significantly contributes to meeting air quality standards and reducing greenhouse gas emissions in a manner consistent with the objectives of the energy policy of the Commonwealth pursuant to Article 3 (§ 45.2-1705 et seq.) of Chapter 17 of Title 45.2. Such applications may include:
1. Investments or incentives to facilitate the deployment of electrical distribution infrastructure and associated electrical equipment supporting transportation electrification;
2. Rate designs or programs that encourage transportation electrification, support the operation of the electric grid, and increase fuel cost savings; and
3. Targeted and broad customer education and outreach programs that increase the awareness of related customer incentives and the benefits of transportation electrification.
At least 35 percent of investments made under this subsection shall be in low-income communities, communities of color, or environmental justice communities.
E. In considering applications filed pursuant to subsection D, the Commission shall consider whether the proposed investments, incentives, programs, rate designs, and expenditures are:
1. Reasonably expected to increase access to transportation electrification, including for low-income communities, communities of color, and environmental justice communities;
2. Reasonably expected to provide lower fueling costs to consumers and fleet operators who charge electric vehicles in a manner consistent with electric grid conditions;
3. Reasonably expected to improve the utility's electrical system efficiency, integration of variable resources, operational flexibility, and system utilization during off-peak hours while also avoiding increased peak demand;
4. Reasonably expected to (i) stimulate innovation, competition, and increased consumer choices in transportation electrification and related equipment, infrastructure, and services in a manner that does not result in unreasonable competition with nonutility enterprises; (ii) attract private capital investments; and (iii) utilize high-quality jobs and skilled worker training programs; and
5. Transparent, including the incorporation of public reporting requirements to inform program design and Commission policy.
F. Authorized investments and expenditures made pursuant to subsections D and E may allow for a return on equity as approved by the Commission, rate recovery mechanisms that allow for earlier recovery of costs, and performance-based incentive returns.
G. By May 1, 2025, each Phase I and Phase II Utility shall submit to the Commission a proposal for a specific rate or set of rates for electricity supplied to commercial and industrial facilities used to charge electric vehicles that (i) encourage electric vehicle charging and (ii) support the efficient off-peak utilization of the electric grid.
H. Nothing in this section shall preclude a Phase I or Phase II Utility from proposing an electrical distribution system investment designed to support electric vehicle charging stations in one or more plans for electric distribution grid transformation filed pursuant to subdivision A 6 of §56-585.1.
