Renewable Portfolio Standard

In April 2020, Virginia's legislature passed H.B. 1526, which requires, among other things, the development of renewable portfolio standards for electric utilities and suppliers. 

Requirements:

Virginia's Renewable Portfolio Standard (RPS) requires Phase II Utilities to generate 100% of their power from renewable sources by 2045. The RPS requires Phase I Utilities to generate 100% of their power from renewable sources by 2050. A complete list of requirements by year is given below:

• 2021 - 6% for Phase I Utilities, 14% for Phase II Utilities
• 2022 - 7% for Phase I Utilities, 17% for Phase II Utilities
• 2023 - 8% for Phase I Utilities, 20% for Phase II Utilities
• 2024 - 10% for Phase I Utilities, 23% for Phase II Utilities
• 2025 - 14% for Phase I Utilities, 26% for Phase II Utilities
• 2026 - 17% for Phase I Utilities, 29% for Phase II Utilities
• 2027 - 20% for Phase I Utilities, 32% for Phase II Utilities
• 2028 - 24% for Phase I Utilities, 35% for Phase II Utilities
• 2029 - 27% for Phase I Utilities, 38% for Phase II Utilities
• 2030 - 30% for Phase I Utilities, 41% for Phase II Utilities
• 2031 - 33% for Phase I Utilities, 45% for Phase II Utilities
• 2032 - 36% for Phase I Utilities, 49% for Phase II Utilities
• 2033 - 39% for Phase I Utilities, 52% for Phase II Utilities
• 2034 - 42% for Phase I Utilities, 55% for Phase II Utilities
• 2035 - 45% for Phase I Utilities, 59% for Phase II Utilities
• 2036 - 53% for Phase I Utilities, 63% for Phase II Utilities
• 2037 - 53% for Phase I Utilities, 67% for Phase II Utilities
• 2038 - 57% for Phase I Utilities, 71% for Phase II Utilities
• 2039 - 61% for Phase I Utilities, 75% for Phase II Utilities
• 2040 - 65% for Phase I Utilities, 79% for Phase II Utilities
• 2041 - 68% for Phase I Utilities, 83% for Phase II Utilities
• 2042 - 71% for Phase I Utilities, 87% for Phase II Utilities
• 2043 - 74% for Phase I Utilities, 91% for Phase II Utilities
• 2044 - 77% for Phase I Utilities, 95% for Phase II Utilities
• 2045 - 80% for Phase I Utilities, 100% for Phase II Utilities
• 2046 - 84% for Phase I Utilities
• 2047 - 88% for Phase I Utilities
• 2048 - 92% for Phase I Utilities
• 2049 - 96% for Phase I Utilities
• 2050 - 100% for Phase I Utilities

Eligible Technologies:

From 2021-2024, a Phase I and Phase II Utility may use RECs from any renewable energy facility. Renewable energy facilities, as defined by Virginia law, are energy derived from wind, sunlight, biomass, falling water, energy from waste, landfill gas, municipal solid waste, geothermal power, and wave motion. Renewable energy sources also include the proportion of electric or thermal energy from a facility that comes from the co-firing of biomass. At no time may a utility use RECs from renewable thermal energy or equivalent, biomass-fired facilities outside Virginia, or biomass-fired facilities within Virginia that either supply more than 10% of their annual net electrical generation to the grid or more than 15% of their yearly total useful energy to entities other than the manufacturing facility.

For 2025 and any years after, only RPS eligible sources may be used to satisfy the requirements of the RPS program. RPS eligible sources include:

• Biomass-fired facilities within Virginia that either supply no more than 10% of their annual net electrical generation to the grid or no more than 15% of their yearly total useful energy to entities other than the manufacturing facility
• Falling water resources located in Virginia or within the PJM Interconnection, LLC region that are owned by a Phase I or Phase II Utility for which that utility has entered into a contract prior to January 1, 2020 
• Lanfill-gas-fired or waste-to-energy plants located within Virginia or the PJM Interconnection, LLC region in operation as of January 1, 2020 (fossil fuel and woody biomass combustion excluded) 
• Solar or Wind resources directly interconnected into Virginia or are physically located within the PJM Interconnection, LLC region
• Falling water resources not owned by a utility that 1. comprise less than 65 MW, 2. began to operate commercially after December 31, 1979, 3. added incremental generation of more than 50 percent of original nameplate capacity after December 31, 1979, provided that these resources are located within Virginia

Offshore Wind Target

H.B. 1526 of 2020 requires Phase II utilities to generate 5,200 MW of offshore wind energy by December 31, 2034.