Bill Text: VA SB973 | 2025 | Regular Session | Introduced
Bill Title: Captured waste mine methane pilot program; electric generation, renewable portfolio standard.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-21 - Passed by indefinitely in Agriculture, Conservation and Natural Resources (8-Y 7-N) [SB973 Detail]
Download: Virginia-2025-SB973-Introduced.html
2025 SESSION
INTRODUCED
25102427D
SENATE BILL NO. 973
Offered January 8, 2025
Prefiled January 7, 2025
A BILL to amend the Code of Virginia by adding a section numbered 56-585.1:16, relating to pilot program; electric generation from captured waste mine methane; renewable portfolio standard.
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Patron—Hackworth
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Referred to Committee on Agriculture, Conservation and Natural Resources
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Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding a section numbered 56-585.1:16 as follows:
§ 56-585.1:16. Pilot program; electric generation from captured waste mine methane.
A. As used in this section:
"Phase I Utility" and "Phase II Utility" have the same meanings as provided in subdivision A 1 of § 56-585.1.
"Waste mine methane" means methane gas captured and produced from an underground gob area associated with a mined-out metallurgical coal seam that would otherwise escape into the atmosphere.
B. The Commission shall establish a pilot program under which each Phase I Utility and Phase II Utility may submit proposals to deploy electric generation projects that utilize, in whole or in part, captured waste mine methane. Each proposal shall provide for the deployment of a non-combustion electric generator or multiple generators fueled by captured waste mine methane and shall describe the extent to which such deployment demonstrates (i) reductions in life cycle greenhouse gas emissions; (ii) reductions in combustion-related air pollution; (iii) avoided water use; (iv) improved efficiency or reliability of electrical generation, transmission, or distribution systems; (v) operational flexibility to cycle on and off and follow real-time dispatch instructions; and (vi) avoided or deferred investments in generation, transmission, or distribution resources. Each proposal (a) shall indicate that the utility has evaluated funding opportunities from governmental sources and (b) may include the indirect use of captured waste mine methane.
C. In establishing guidelines for the general administration of the pilot program, the Commission shall permit the use of the Midwest Renewable Energy Tracking Systems platform or other equivalent platform to track captured waste mine methane used in the program. Such guidelines shall also require a certification from the producer of the captured waste mine methane that the feedstock used for a non-combustion electric generator is not otherwise counted to satisfy the requirements of another jurisdiction's renewable or alternative energy portfolio standard or claimed for credit in a carbon offset market.
D. Under the pilot program, a Phase I Utility may propose to install one or more electric generation projects utilizing waste mine methane with a capacity of no less than five megawatts and no more than 25 megawatts. A Phase II Utility may propose to install one or more electric generation projects utilizing waste mine methane with a capacity of no less than five megawatts and no more than 50 megawatts.
E. A Phase I Utility or Phase II Utility may recover all reasonable and prudent costs incurred for a captured waste mine methane project approved in accordance with this section through such utility's rates for generation and distribution services pursuant to subdivision A 1 of § 56-585.1. Nothing in this section shall limit the Commission's discretion to determine whether the project costs are reasonable and prudent. Any proposal by a Phase I Utility or Phase II Utility that satisfies the requirements of this section may be considered by the Commission as evidence that the proposed project is in the public interest.
F. The Commission shall, by December 31, 2025, adopt rules or establish guidelines as necessary for the general administration of pilot program projects approved pursuant to this section.
2. That notwithstanding any other provision of law, electricity generated by a Phase I Utility or Phase II Utility, as those terms are defined in subdivision A 1 of § 56-585.1 of the Code of Virginia, using captured waste mine methane with a non-combustion electric generator under a captured waste mine methane project approved by the State Corporation Commission pursuant to § 56-585.1:16 of the Code of Virginia, as created by this act, shall be considered an eligible resource for purposes of the renewable energy portfolio standard program established in § 56-585.5 of the Code of Virginia, and each megawatt-hour of electricity generated by such resource may be used to comply with the renewable energy portfolio standard program requirements under § 56-585.5 of the Code of Virginia.
3. That the provisions of the second enactment of this act shall expire on December 31, 2045.
