Virginia RPS bill poised for House vote today

Virginia lawmakers could soon pass a sweeping set of energy policies that would include a new compliance market for renewable energy certificates (RECs) in the PJM Interconnection.

The state House of Delegates is scheduled to vote today on the Virginia Clean Economy Act, a bill that would implement a renewable portfolio standard (RPS) requiring the state to get 100pc of its electricity from resources such as solar and wind by 2050. If the House endorses the bill, it would head to the state Senate for consideration.

"This could be a historic moment for the chamber if we can set Virginia on this path," chief sponsor Delegate Rip Sullivan (D) said.

Democrats flipped both chambers of the state legislature in November, putting Virginia in position to codify climate policies that governor Ralph Northam (D) had set with executive orders.

If enacted, the legislation would require utility Dominion Energy to use renewables for 100pc of its electricity sales by 2045, with utility Appalachian Power given an extra five years to reach the same mark. The mandate would begin at 14pc for Dominion and 6pc for Appalachian Power in the initial 2021 compliance period.

Dominion would be required to use RECs generated in Virginia for at least 75pc of its compliance obligations from 2025 onward.

Delegates debated the bill yesterday, giving a window into how the vote could shake out. While Democrats outnumber Republicans with a 55-45 majority in the chamber, the proposal is facing opposition on both sides of the aisle.

Delegate Terry Kilgore (R) took issue with amendments added to the bill yesterday that require the state's coal-fired units to retire in waves, with the first group being forced out of the power mix by the end of 2024. The second round of closures in 2030 could require Dominion to shut down the Virginia City Hybrid Energy Center, a 600MW coal plant that co-fires with biomass.

That plant is in Kilgore's district.

"Pulling the rug out from under us and closing down the cleanest coal plant, the cleanest plant in the world right now that is running, is just a slap in the face to southwest Virginia," Kilgore said. "And to further that, those of you that have Dominion as your provider are still going to be paying for that coal plant, on and on."

Kilgore, who voted against the bill when it passed through the Labor and Commerce Committee, said lawmakers needed to develop a better energy policy to address these concerns.

Delegate Sam Rasoul (D) is backing a more aggressive renewables bill. He said the energy package has several "pretty good components," but lacks key initiatives, including an outright moratorium on fossil fuel generators and adequate protections for ratepayers.

By Patrick Zemanek