Bill Text: VA HB2087 | 2025 | Regular Session | Introduced
Bill Title: Electric utilities; electric vehicle charging stations; transportation electrification.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-01-14 - Assigned L & C sub: Subcommittee #3 [HB2087 Detail]
Download: Virginia-2025-HB2087-Introduced.html
2025 SESSION
INTRODUCED
25104457D
HOUSE BILL NO. 2087
Offered January 8, 2025
Prefiled January 7, 2025
A BILL to amend the Code of Virginia by adding sections numbered 56-1.2:2 and 56-581.2 and to repeal § 56-585.1:13 of the Code of Virginia, relating to electric utilities; electric vehicle charging stations; transportation electrification.
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Patron—Shin
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Committee Referral Pending
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Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding sections numbered 56-1.2:2 and 56-581.2 as follows:
§ 56-1.2:2. Electric vehicle fast-charging stations.
A. As used in this section, unless the context requires a different meaning:
"Fast-charging station" means a charging system capable of delivering at least 50 kilowatts of direct current electrical power to an electric vehicle's rechargeable battery at a voltage of 200 volts or greater.
"Phase I Utility" and "Phase II Utility" have the same meanings as provided in subdivision A 1 of § 56-585.1.
B. Effective January 1, 2028, a Phase I or Phase II Utility may develop, own, maintain, or operate public-facing fast-charging stations only at or beyond a radial distance, as determined by the Commission, relative to the location of any privately owned fast-charging station that is already in commercial operation or has a pending building permit or interconnection request as of July 1, 2027. Such radial distance shall be determined by the Commission pursuant to a rulemaking proceeding initiated by June 1, 2027, with a final order entered no later than December 1, 2027.
§ 56-581.2. Transportation electrification.
A. As used in this section, unless the context requires a different meaning:
"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.
"Fast-charging station" has the same meaning as provided in § 56-1.2:2.
"Historically economically disadvantaged community" has the same meaning as provided in § 56-576.
"Phase I Utility" and "Phase II Utility" have the same meanings as provided in subdivision A 1 of § 56-585.1.
"Rural community" means a city with a population density of less than 1,470 people per square mile or a county with a population density of less than 160 people per square mile.
"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 materials, goods, or people.
B. The Commission shall require each Phase I and Phase II Utility to maintain an accurate and full accounting of all expenses related to electrical distribution infrastructure as it relates to this section.
C. A Phase I or Phase II Utility may file a proposed tariff or rule with the Commission to provide utility-owned and utility-operated electrical distribution infrastructure between the main overhead or underground lines and the customer electrical revenue meter available to customers installing separately metered infrastructure to support electric vehicle charging stations, other than those in single-family residences. The Commission shall approve and authorize or modify and approve such tariff or rule within six months after filing. Such proposal and such tariff or rule shall provide that related costs incurred by such utility shall be tracked and reported separately and shall be eligible for cost recovery, at the utility's election, pursuant to the utility's rates for generation and distribution services or through a rate adjustment clause approved pursuant to subdivision A 6 of § 56-585.1. 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. Customers may elect to take service under such a tariff or rule as an alternative to taking service under existing line extension rules. The provisions of this section shall not modify any arrangements for contribution in aid of construction or other agreements in effect prior to the effective date of the rule or tariff.
D. By November 15, 2025, and every two years thereafter, each Phase I and Phase II Utility shall file applications to accelerate widespread transportation electrification across the Commonwealth in a manner designed to maximize ratepayer benefits. The Commission shall, after notice and opportunity for hearing, determine whether to approve and authorize, modify and approve, or reject such transportation electrification plan application within eight months of the application's filing date. At least 35 percent of such proposed costs of utility programs to accelerate widespread transportation electrification shall be allocated to programs designed to benefit rural communities and historically economically disadvantaged communities. Such transportation electrification plan applications may include:
1. Programs to incentivize and facilitate the deployment of electric vehicle charging infrastructure for light-duty, medium-duty, and heavy-duty vehicles;
2. Rate designs and programs that encourage transportation electrification, support the efficient operation of the electric grid, facilitate fuel cost savings, and support various categories of vehicles and charging use cases, including public level 2 and direct-current fast-charging, workplace charging, residential charging for single-family and multifamily dwellings, fleet and depot charging, non-road industrial areas including ports, and charging for medium-duty and heavy-duty vehicles; and
3. Targeted and broad customer education and outreach programs that increase the awareness of related customer incentives and the ratepayer benefits of transportation electrification.
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 rural communities and historically economically disadvantaged communities;
2. Reasonably expected to provide lower costs to customers and fleet operators who charge electric vehicles taking into account grid demand 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 mitigating increased peak demand;
4. Reasonably expected to expand access to public charging in a manner that does not result with unreasonable competition with companies as defined in § 56-265.1;
5. Reasonably expected to improve air quality; and
6. Transparent, including the incorporation of public reporting requirements to inform program design and Commission policy.
F. By May 15, 2026, each Phase I and Phase II Utility shall submit to the Commission estimates and plans to serve load capacity needs to support transportation electrification and to comply with applicable air quality standards and regulations, and a proposal for a specific rate or set of rates for:
1. Electricity used to charge light-duty, medium-duty, and heavy-duty electric vehicles that (i) encourage electric vehicle charging and (ii) support the efficient off-peak utilization of the electric grid; and
2. Various categories of vehicles and charging use cases, including as appropriate, public level 2 and direct-current fast-charging, workplace charging, residential charging in single-family and multifamily dwellings, fleet and depot charging, and vehicle-to-grid battery discharge designed to support efficient utilization of the grid including by decreasing peak demand.
G. Each Phase I and Phase II Utility shall update the plans and rates established pursuant to subsection F annually, as determined by the utility in its sole discretion to be necessary.
H. Consistent with the estimates and plans required by subsection F, a Phase I or Phase II Utility shall propose electrical distribution system investments 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.
2. That § 56-585.1:13 of the Code of Virginia is repealed effective December 1, 2027.
3. That no later than June 1, 2027, the State Corporation Commission (the Commission) shall initiate a rulemaking proceeding pursuant to § 56-1.2:2 of the Code of Virginia, as created by this act, to determine the appropriate radial distance between privately owned fast-charging stations that are already in commercial operation or have a pending building permit or interconnection request as of July 1, 2027, and fast-charging stations owned, maintained, or operated by the Phase I or Phase II Utility, as those terms are defined in subdivision A 1 of § 56-585.1 of the Code of Virginia. In determining such radial distance, the Commission shall consider the policy of the Commonwealth, pursuant to Chapter 268 of the Acts of Assembly of 2021, Special Session I, to promote, to the greatest extent possible, private competition and investment in transportation electrification and to enable public utilities and the public sector to complement such private investment where most effective. In conducting such proceeding, the Commission's review shall include (i) an analysis of the adequacy of electric vehicle charging infrastructure throughout the Commonwealth and how equitably such infrastructure is distributed; (ii) a consideration of the impact of any federal grants or loans made to provide electric vehicle charging infrastructure in the Commonwealth; (iii) minimum requirements for fast-charging equipment, including adherence to universal design guidelines and the minimum number of privately owned fast-charging stations by a Phase I or Phase II Utility within the radial distance determined by the Commission; (iv) a consideration of similar radial distance arrangements or determinations made in other states with vertically integrated utilities; and (v) any other issues deemed relevant by the Commission. The Commission shall enter its final order no later than December 1, 2027.
