§ 56- Renewable Energy Portfolio Standard
1. By December 31, 2000, the Department of Mines, Minerals, and Energy (DMME) shall determine the actual percentage of kilowatt-hours sales to end-use customers in the Commonwealth that is derived from existing renewable energy generating systems.
2. The Commonwealth shall establish a portfolio standard for renewable energy that sets forth the minimum percentage of the total electricity sold during each calendar year that must be derived from renewable energy systems. The portfolio standard must:
(a) by July 1, 2001, be the greater of (i) 5 percent or (ii) one percent of sales over the baseline number provided by DMME;
(b) an additional one-half of 1 percent of sales each year thereafter until December 31, 2011;
(c) be derived from not less than 20 percent emerging renewable energy resources;
(d) be based on a renewable energy credit trading mechanism; and
(e) apply to every electricity product sold in the state by retail suppliers, including those products offered by default and standard offer service providers.
3. In establishing the portfolio pursuant to this section, the Commission may establish a system of credits pursuant to which an electric utility and alternative seller may comply with the provisions of this section. A system of credits must provide that:
(a) credits are issued to all energy service providers for each kilowatt hour of renewable energy which they produce or for each kilowatt hour of electricity which they avoid by use of solar thermal water heating systems or geothermal resources as defined by VR 480-04-13 (4 VAC 25-170);
(b) small and distributed renewable energy resources can be aggregated by interested parties as tradable credits;
(c) emerging renewable energy resources receive an additional 20 percent valuation in a credit trading system;
(d) the Commonwealth can set a ceiling on cost of credits to set a cap on overall program costs; and
(e) holders of credits may trade or sell the credits to other parties.
4. All energy service providers shall submit a report to the Commission that provides information relating to the compliance by the seller with the requirements of this section. Such reports must be made at least annually, unless the Commission by regulation determines that such reports must be made more frequently than annually, and must include clear and concise information that sets forth:
(a) if the seller installed a renewable energy system during the period for which the report is being made, the date of installation;
(b) the capacity of renewable energy systems of the seller;
(c) the amount of production of energy from the renewable energy systems;
(d) the portion of the production of energy that is directly derived from renewable energy resources;
(e) the quantity of energy from renewable energy systems that is sold to end-use customers in this state by the seller;
(f) the number of renewable energy credits that the seller generated, purchased, sold and traded to meet the standards of the portfolio; and
(g) such other information that the Commission by regulation may deem relevant.
5. The Commission shall adopt rules establishing financial penalties for any seller not in compliance with the regulations for a portfolio standard. The financial penalties will be set by the Commission in such a way as to minimize non-compliance with the Standard's requirements. Any monies collected as a part of a penalty shall be added to the Renewable Energy component of the state Electric Public Benefits Fund.
§ 56-576 would be amended to include the following definitions:
"Renewable energy resource" means power produced using renewable or non-depletable primary energy sources within the meaning of regulations adopted by the Federal Energy Regulatory Commission in implementing the Public Utility Regulatory Policies Act of 1978 (P.L. 95-617).
"Emerging renewable energy resources" means power produced using (i) solar photovoltaic or solar thermal electric energy; (ii) fuel cells utilizing renewable fuels; (iii) solar thermal heating technologies; (iv) small wind systems under 100kW; and (v) small hydropower systems under 100kW. After conducting administrative proceedings, the Commission may add technologies or technology categories to this list; provided, however, that the following technologies shall not be considered renewable energy supplies: coal, oil, natural gas, and nuclear power.
"Renewable energy system" means an energy system that utilizes renewable energy resources to produce electricity or solar thermal energy systems that reduce the consumption of electricity that was installed and commenced operations after July 1, 2000.