Bill Text: VA HB576 | 2020 | Regular Session | Prefiled
Bill Title: Undergrounding electric transmission lines; pilot program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2020-03-04 - Governor: Acts of Assembly Chapter text (CHAP0164) [HB576 Detail]
Download: Virginia-2020-HB576-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §56-585.1:5 of the Code of Virginia is amended and reenacted as follows:
§56-585.1:5. Pilot program for underground transmission lines.
A. There is hereby established a pilot program to further the
understanding of underground electric transmission lines in regard to electric
reliability, construction methods and related cost and timeline estimating, and the probability of meeting
such projections, and the benefits of
undergrounding existing electric transmission lines to promote economic
development within the Commonwealth. The pilot program
shall consist of the approval to construct qualifying electrical transmission
lines of 230 kilovolts or less (but greater than 69 kilovolts) in whole or in
part underground. Such pilot program shall consist of a total of two qualifying
electrical transmission line projects, constructed in whole or in part
underground, as specified and set forth in this section.
B. Notwithstanding any other law to the contrary, as a part of the pilot program established pursuant to this section, the Commission shall approve as a qualifying project a transmission line of 230 kilovolts or less that is pending final approval of a certificate of public convenience and necessity from the Commission as of December 31, 2017, for the construction of an electrical transmission line approximately 5.3 miles in length utilizing both overhead and underground transmission facilities, of which the underground portion shall be approximately 3.1 miles in length, which has been previously proposed for construction within or immediately adjacent to the right-of-way of an interstate highway. Once the Commission has affirmed the project need through an order, the project shall be constructed in part underground, and the underground portion shall consist of a double circuit.
The Commission shall approve such underground construction
within 30 days of receipt of the written request of the public utility to
participate in the pilot program pursuant to this subsection section. The Commission shall
not require the submission of additional technical and cost analyses as a
condition of its approval but may request such analyses for its review. The
Commission shall approve the underground construction of one contiguous segment
of the transmission line that is approximately 3.1 miles in length that was
previously proposed for construction within or immediately adjacent to the
right-of-way of the interstate highway, for which, by resolution, the locality
has indicated general community support. The remainder of the construction for
the transmission line shall be aboveground. The Commission shall not be
required to perform any further analysis as to the impacts of this route,
including environmental impacts or impacts upon historical resources.
The electric utility may proceed to acquire right-of-way and take such other actions as it deems appropriate in furtherance of the construction of the approved transmission line, including acquiring the cables necessary for the underground installation.
C. In reviewing applications submitted by public utilities for
certificates of public convenience and necessity for the construction of
electrical transmission lines of 230 kilovolts or less filed between July 1,
2018, and July October
1, 2020, the Commission shall approve, consistent with the requirements of
subsection D, one additional application as a qualifying project to be
constructed in whole or in part underground, as a part of this pilot program.
The one qualifying project shall be in addition to the qualifying project
described in subsection B and shall be the
relocation or conversion of an existing 230-kilovolt
overhead line to an underground line.
D. For purposes of subsection C, a project shall be qualified
to be placed underground, in whole or in part, if it meets all of the following
criteria: (i) an engineering analysis demonstrates that it is technically
feasible to place the proposed line, in whole or in part, underground; (ii) the
governing body of each locality in which a portion of the proposed line will be
placed underground indicates, by resolution, general community support for the
project and that it supports the transmission line to be placed underground;
(iii) a project has been filed with the Commission or is pending issuance of a
certificate of public convenience and necessity by July October 1, 2020; (iv) the
estimated additional cost of placing the proposed line, in whole or in part,
underground does not exceed $40 million
or, if greater than $40 million, the cost does not exceed
2.5 times the cost of placing the same line overhead, assuming accepted
industry standards for undergrounding to ensure safety and reliability; if the
public utility, the affected localities, and the Commission agree, a proposed underground
line whose cost exceeds 2.5 times the cost of placing the line overhead may
also be accepted into the pilot program; (v) the public utility requests that
the project be considered as a qualifying project under this section; and (vi)
the primary need of the project shall be for purposes of grid reliability, grid
resiliency, or to support economic development priorities of the Commonwealth, including the economic development priorities and
the comprehensive plan of the governing body of the locality in which at least
a portion of line will be placed, and shall not be to
address aging assets that would have otherwise been replaced in due course.
E. A transmission line project that is found to meet the criteria of subsection D shall be deemed to satisfy the requirements of subsection B of §56-46.1 with respect to a finding of the Commission that the line is needed.
F. Approval of a transmission line pursuant to this section for inclusion in the pilot program shall be deemed to satisfy the requirements of §15.2-2232 and local zoning ordinances with respect to such transmission line and any associated facilities, such as stations, substations, transition stations and locations, and switchyards or stations, that may be required.
F. G. The Commission shall report
annually to the Commission on Electric Utility Restructuring, the Joint
Commission on Technology and Science, and the Governor on the progress of the
pilot program by no later than December 1 of each year that this section is in
effect. The Commission shall submit a final report to the Commission on
Electric Utility Restructuring, the Joint Commission on Technology and Science,
and the Governor no later than December 1, 2024, analyzing the entire program
and making recommendations about the continued placement of transmission lines
underground in the Commonwealth. The Commission's final report shall include, but not be limited to,
analysis and findings of the costs of underground construction and historical and
future consumer rate effects of such costs, effect of underground transmission
lines on grid reliability, operability (including operating voltage),
probability of meeting cost and construction timeline estimates of such
underground transmission lines, and economic development,
aesthetic or other benefits attendant to the placement of transmission lines
underground.
G. H. For the qualifying projects
chosen pursuant to this section and not fully recoverable as charges for new
transmission facilities pursuant to subdivision A 4 of §56-585.1, the
Commission shall approve a rate adjustment clause. The rate adjustment clause
shall provide for the full and timely recovery of any portion of the cost of
such project not recoverable under applicable rates, terms, and conditions
approved by the Federal Energy Regulatory Commission and shall include the use
of the fair return on common equity most recently approved in a State
Corporation Commission proceeding for such utility. Such costs shall be
entirely assigned to the utility's Virginia jurisdictional customers. The
Commission's final order regarding any petition filed pursuant to this
subsection shall be entered not more than three months after the filing of such
petition.
H. I. The provisions of this
section shall not be construed to limit the ability of the Commission to
approve additional applications for placement of transmission lines
underground.
I. J. If two applications are not
submitted to the Commission that meet the requirements of this section, the Commission
shall document the failure of the projects to qualify for the pilot program in
order to justify approving fewer than two projects to be placed underground, in
whole or in part.
J. K. Insofar as the provisions of
this section are inconsistent with the provisions of any other law or local
ordinance, the provisions of this section shall be controlling.
