Source: https://www.richmondsunlight.com/bill/2019/hb2786/fulltext/
Timestamp: 2019-08-20 23:44:22
Document Index: 199984861

Matched Legal Cases: ['§ 1', '§ 56', '§ 56', '§ 56', '§ 2', 'art 258', '§ 56', '§ 56', '§ 1', '§ 2', '§ 56']

HB2786ER
HB2786S1
HB2786H1
VIRGINIA ACTS OF ASSEMBLY -- CHAPTER An Act to allow closure of certain coal combustion residuals impoundments. [H 2786] Approved
1. § 1. A. For the purposes of this section only:
“Carrying cost” means the cost associated with financing expenditures incurred but not yet recovered from the electric utility’s customers, and shall be calculated by applying the electric utility’s weighted average cost of debt and equity capital, as determined by the State Corporation Commission, with no additional margin or profit, to any unrecovered balances.
H. All costs associated with closure of a CCR unit in accordance with this section shall be recoverable through a rate adjustment clause authorized by the State Corporation Commission (the Commission) under the provisions of subdivision A 5 e of § 56-585.1 of the Code of Virginia, provided that (i) when determining the reasonableness of such costs the Commission shall not consider closure in place of the CCR unit as an option; (ii) the annual revenue requirement recoverable through a rate adjustment clause authorized under this act, exclusive of any other rate adjustment clauses approved by the Commission under the provisions of subdivision A 5 e of § 56-585.1 of the Code of Virginia, shall not exceed $225 million on a Virginia jurisdictional basis for the Commonwealth in any 12-month period, provided that any under-recovery amount of revenue requirements incurred in excess of $225 million in a given 12-month period, limited to the under-recovery amount and the carrying cost, shall be deferred and recovered through the rate adjustment clause over up to three succeeding 12-month periods without regard to this limitation, and with the length of the amortization period being determined by the Commission; (iii) costs may begin accruing on July 1, 2019, but no approved rate adjustment clause charges shall be included in customer bills until July 1, 2021; (iv) any such costs shall be allocated to all customers of the utility in the Commonwealth as a non-bypassable charge, irrespective of the generation supplier of any such customer; and (v) any such costs that are allocated to the utility's system customers outside of the Commonwealth that are not actually recovered from such customers shall be included for cost recovery from jurisdictional customers in the Commonwealth through the rate adjustment clause.
I. Any electric public utility subject to the requirements of this section may, without regard for whether it has petitioned for any rate adjustment clause pursuant to subdivision A 5 e of § 56-585.1 of the Code of Virginia, petition the Commission for approval of a plan for CCR unit closure at any or all of its CCR unit sites listed in subsection B. Any such plan shall take into account site-specific conditions and shall include proposals to beneficially reuse no less than 6.8 million cubic yards of CCR in aggregate from no fewer than two of the sites listed in subsection B. The Commission shall issue its final order with regard to any such petition within six months of its filing, and in doing so shall determine whether the utility's plan for CCR unit closure, and the projected costs associated therewith, are reasonable and prudent, taking into account that closure in place of any CCR unit is not to be considered as an option. The Commission shall not consider plans that do not comply with subsection B of this act.
§ 2. Nothing in this act shall be construed to require additional beneficial reuse of CCR at any active coal-fired electric generation facility if such additional beneficial reuse results in a net increase in truck traffic on the public roads of the locality in which the facility is located as compared to such traffic during calendar year 2018.
3. The Commonwealth shall not authorize any cost recovery by an owner or operator subject to the provisions of this act for any fines or civil penalties resulting from violations of federal and state law or regulation.
HOUSE BILL NO. 2786 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the Senate Committee on Commerce and Labor on February 11, 2019) (Patron Prior to Substitute--Delegate Ingram) A BILL to allow closure of certain coal combustion residuals impoundments.
HOUSE BILL NO. 2786 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the House Committee on Agriculture, Chesapeake and Natural Resources on January 30, 2019) (Patron Prior to Substitute--Delegate Ingram) A BILL to allow closure of certain coal combustion residuals impoundments.
B. The owner or operator of any CCR unit located within the Chesapeake Bay watershed at the Bremo Power Station, Chesapeake Energy Center, Chesterfield Power Station, and Possum Point Power Station that ceased accepting CCR prior to July 1, 2019, shall complete closure of such unit by (i) removing all of the CCR in accordance with applicable standards established by Virginia Solid Waste Management Regulations (9VAC20-81) and (ii) either (a) beneficially reusing all such CCR in a recycling process for beneficial use in compliance with all applicable federal laws and regulations or (b) disposing of the CCR in a permitted landfill on the property upon which the CCR unit is located, adjacent to the property upon which the CCR unit is located, or off of the property on which the CCR unit is located, that includes, at a minimum, a composite liner and leachate collection system that meets or exceeds the federal Criteria for Municipal Solid Waste Landfills pursuant to 40 C.F.R. Part 258. The owner or operator shall beneficially reuse a total of no less than 6.8 million cubic yards in aggregate of such removed CCR from no fewer than two of the sites listed in this subsection where CCR is located.
H. All costs associated with closure of a CCR unit in accordance with this section shall be recoverable through a rate adjustment clause authorized by the State Corporation Commission (the Commission) under the provisions of subdivision A 5 e of § 56-585.1 of the Code of Virginia, provided that (i) when determining the reasonableness of such costs the Commission shall not consider closure in place of the CCR unit as an option; (ii) the annual revenue requirement recoverable through a rate adjustment clause authorized under this act, exclusive of any other rate adjustment clauses approved by the Commission under the provisions of subdivision A 5 e of § 56-585.1 of the Code of Virginia, shall not exceed $225 million on a Virginia jurisdictional basis for the Commonwealth in any 12-month period, provided that any under-recovery amount of revenue requirements incurred in excess of $225 million in a given 12-month period, including financing costs, shall be deferred and recovered through the rate adjustment clause over up to three succeeding 12-month periods without regard to this limitation, and with the length of the amortization period being determined by the Commission; (iii) costs may begin accruing on July 1, 2019, but no approved rate adjustment clause charges shall be included in customer bills until July 1, 2021; (iv) any such costs shall be allocated to all customers of the utility in the Commonwealth as a non-bypassable charge, irrespective of the generation supplier of any such customer; and (v) any such costs that are allocated to the utility's system customers outside of the Commonwealth that are not actually recovered from such customers shall be included for cost recovery from jurisdictional customers in the Commonwealth through the rate adjustment clause.
HOUSE BILL NO. 2786 Offered January 18, 2019 A BILL to allow closure of certain coal combustion residuals impoundments.
1. § 1. In issuing a permit for the closure of a coal combustion residuals (CCR) surface impoundment located in the Chesapeake Bay watershed, the Department of Environmental Quality (the Department) shall consider (i) the requirements imposed by state and federal laws and regulations regarding CCR surface impoundments, including time frames for closure and requirements that public health and safety be protected; (ii) anticipated truck traffic and the effects of such traffic on nearby residential areas; (iii) the long-term cost effectiveness of a proposed closure, including the costs of groundwater monitoring and of the remediation of the site; and (iv) the ability of any closure to withstand hurricanes or other extreme weather events or natural disasters.
§ 2. Costs associated with any permit issued by the Department for the closure of a CCR surface impoundment located within the Chesapeake Bay watershed, as well as any permit issued by the Department for the purpose of capping in place, removing, or beneficially reusing any CCR from the site of any current electric generation unit as of January 1, 2018, or any former electric generation unit permanently retired or placed into cold reserve prior to January 1, 2018, shall be deemed in the public interest and recoverable in accordance with the provisions of subdivision A 5 of § 56-585.1 of the Code of Virginia. Any such costs shall be fully allocated to all customers as a non-bypassable distribution charge, irrespective of the generation supplier of any such customer.
For a plain English description of this bill, comments, voting, tagging, etc., return to the main page for HB2786.