Large-Scale Electricity Consumer Infrastructure Impact Fund; created.

Plain English Breakdown

The official source does not specify how much money will remain in the fund each year after expenses are paid, leaving this detail uncertain.

Large-Scale Electricity Consumer Infrastructure Impact Fund

This law establishes a fund to help utilities cover costs related to large electricity users and provides bill credits for residential customers affected by these users.

What This Bill Does

• Establishes the Large-Scale Electricity Consumer Infrastructure Impact Fund to offset infrastructure replacement and enhancement costs incurred by utilities due to large-scale electricity consumers.
• Requires each large-scale electricity consumer operating in Virginia to pay an annual fee based on their energy usage and demand, which goes into the fund.
• Localities that approve new large-scale electricity consumer projects after January 1, 2028 must also pay a yearly fee of 5% of tax revenue from these projects into the fund.
• The money in the fund is used to offset infrastructure costs for utilities and provide bill credits to residential customers affected by large users.

Who It Names or Affects

• Large-scale electricity consumers operating in Virginia
• Localities that approve new large-scale electricity consumer projects after January 1, 2028

Terms To Know

large-scale electricity consumer

A facility or combination of facilities with an electricity demand exceeding 25 megawatts.

infrastructure impact fee

An annual fee paid by large-scale electricity consumers and localities to the Fund based on energy usage, demand, and tax revenue.

Limits and Unknowns

• The exact amount of fees that will be collected is not specified; it depends on factors determined by the State Corporation Commission.
• It's unclear how much money will remain in the fund each year after expenses are paid.

Official Summary Text

Large-Scale Electricity Consumer Infrastructure Impact Fund.
Establishes the Large-Scale Electricity Consumer Infrastructure Impact Fund (the Fund) for the purposes of offsetting infrastructure replacement and enhancement costs incurred by utilities that are directly attributable to the electricity demand of large-scale electricity consumers and providing bill credits to residential customers to offset rate increases due to the electricity demand of large-scale electricity consumers.

The bill requires each large-scale electricity consumer operating in the Commonwealth to remit an annual infrastructure impact fee in an amount determined and assessed by the State Corporation Commission (the Commission) based on energy usage and demand in megawatts and square footage of the large-scale electricity consumer. Additionally, the bill requires each locality that gives final approval for the construction or operation of a large-scale electricity consumer on or after January 1, 2028, to remit an annual infrastructure impact fee to the Commission in an amount equal to five percent of the total annual tax revenue received by the locality that is directly or indirectly attributable to the construction or operation of each such large-scale electricity consumer. All fees collected from such assessments shall be deposited into the Fund.

Current Bill Text

A BILL to amend the Code of Virginia by adding a section numbered
56-585.9
, relating to Large-Scale Electricity Consumer Infrastructure Impact Fund; established; infrastructure impact fee on large-scale electricity consumers and localities.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered
56-585.9
as follows:

§
56-
585.9
.
Large-Scale Electricity Consumer Infrastructure Impact Fund
.

A.
As used in this section
:

"
L
arge-scale electricity consumer" means any facility, or a combination of facilities that in the Commission's discretion effectively operate together as one facility, with

a
measured or contracted
electricity demand that exceeds 25 megawatts
.

"Fund" means the
Large-Scale Electricity Consumer Infrastructure Impact Fund established by this section.

B.

E
ach
l
arge-scale electricity consumer
operating in the Commonwealth shall remit an annual infrastructure impact fee in an amount determined
and assessed
by the Commission based on energy
usage and
demand in megawatts and square footage of the
large-scale electricity consumer
. The Commission may take into account additional factors that mitigate energy us
e and impacts on electric grid
infrastructure
in determining the assessment amount for each
large-scale electricity consumer
in the Commonwealth.
All
fees collected
from such assessments shall be deposited into the Fund established pursuant to

this section
and used solely for the purposes stated
.

C. Each locality that gives final approval for the con
struction or operation of a large-scale electricity consumer on or after January 1, 202
8
, shall
remit an annual infrastructure impact fee to
Commission
in
an
amount equal to five percent of the total annual tax revenue
received by the locality
and not otherwise restricted by state law
that is directly or indirectly attributable to the
construction
or
operation of each large-scale electricity consumer
approved after January 1, 202
8
.
All fees collected from such assessments shall be deposited into the Fund established pursuant to this section and used solely for the purposes stated.

D
.
There is hereby created in the state treasury a special nonreverting fund to be known as the Large-Scale Electricity Consumer Infrastructure Impact Fund. The Fund shall be established on the books of the Comptroller. All funds appropriated for such purpose,
any
fees collected under this
section from large-scale electricity
consumers
and localities
, and any gifts, donations, grants, bequests, and other funds received on its behalf shall be paid into the state treasury and credited to the Fund.
Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund.
Moneys in the Fund shall be used solely for the purposes of (i) offsetting infrastructure replacement and enhancement costs
incurred by utilities and directly attributable to
the electricity demand of large-scale electricity consumer
s
in Commonwealth
,
(ii) providing bill credits to residential customers located in the Co
mmonwealth to offset rate increases due to
the electricity demand of
large-scale electricity consumers
in the Commonwealth
, and (iii) administration of the Fund
.
The
Commission shall manage and oversee the Fund.