STATE CORPORATION COMMISSION

AT RICHMOND, AUGUST 28, 2018

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. PUR-2018-00059

Ex Parte: In the matter
concerning the implementation by
Appalachian Power Company d/b/a
American Electric Power-Virginia
of a pilot program for the deployment of
electric power storage batteries pursuant to
Enactment Clause Nos. 9 and 10 of
Senate Bill 966

and

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. PUR-2018-00060

Ex Parte: In the matter
concerning the implementation by
Virginia Electric and Power
Company d/b/a Dominion Energy Virginia
of a pilot program for the deployment of
electric power storage batteries pursuant to
Enactment Clause Nos. 9 and 10 of
Senate Bill 966

ORDER FOR COMMENTS ON DRAFT GUIDELINES

On April 20, 2018, the State Corporation Commission ("Commission") established these dockets in its Order Directing Comments ("Order Directing Comments") herein for the purpose of receiving comments from Appalachian Power Company ("APCo"), Dominion Energy Virginia ("DEV") and any other interested party regarding pilot programs for the deployment of electric power storage batteries. These pilot programs were established pursuant to provisions within the Chapter 296 of the 2018 Acts of Assembly ("Act").¹ The Order Directing Comments further directed DEV and APCo to submit comments (and permitted interested parties to submit comments) concerning any rules or guidelines such utilities or interested parties believe necessary for the general administration of the pilot programs.

On June 19, 2018, DEV and APCo jointly filed comments in both dockets herein suggesting that the Commission adopt guidelines for the administration of these pilot programs in lieu of a formal rulemaking. Attached to their joint comments, the utilities provided a set of proposed draft guidelines ("draft guidelines") to serve as the basis for the Commission's guidelines. The draft guidelines, inter alia, define the scope of "battery energy storage systems" ("BESS"); outline information to be furnished to the Commission regarding each proposal to deploy such storage systems in conjunction with these pilot programs; and contain utility reporting requirements including (i) written notice by these electric utilities to the Commission prior to placing a BESS into service as part of a pilot program, and (ii) annual reports by these electric utilities to the Commission concerning the status of each pilot program. Comments were also received from Cliona Mary Robb, in her capacity as Chair of the Virginia Solar Energy Development and Energy Storage Authority. No additional comments were received in response to the Order Directing Comments.

The Commission Staff's ("Staff") Action Brief filed in these dockets states that the guidelines jointly proposed by DEV and APCo are generally compliant with the requirements outlined in Enactment Clauses 9 and 10 of the Act.  However, as outlined in its Action Brief, the Staff has made a number of revisions to the draft guidelines as submitted by APCo and DEV. The Staff recommends that the Commission issue an Order providing notice of these draft guidelines, as revised by the Staff, and allow an opportunity for DEV and APCo, and other interested parties to submit comments thereon.

NOW THE COMMISSION, upon consideration of the foregoing, will receive comments on the draft guidelines, as revised by the Staff and attached hereto, from interested persons before formally establishing Commission guidelines pursuant to the Act. Comments on the draft guidelines may be filed in this docket on or before October 1, 2018. We will also direct the Commission's Division of Public Utility Regulation to provide copies of this Order and the draft guidelines by electronic transmission, or when electronic transmission is not possible, by mail, to individuals, organizations, and companies identified by Staff as potentially having an interest in this proceeding.

Accordingly, IT IS ORDERED THAT:

(1) Comments on the draft guidelines attached hereto shall be filed on or before October 1, 2018. Interested persons wishing to comment or propose modifications or supplements to the draft guidelines shall file an original and fifteen (15) copies of such comments or proposals with Joel H. Peck, Clerk, State Corporation Commission, P.O. Box 2118, Richmond, Virginia 23218-2118. Any interested person desiring to file comments electronically may do so on or before October 1, 2018, by following the instructions on the Commission's website: http://www.scc.virginia.gov/case. Compact disks or any other form of electronic storage medium may not be filed with the comments. All such comments shall refer to Case Nos. PUR-2018-00059 and PUR-2018-00060.

(2) Copies of the draft guidelines and other documents filed in this docket are also available for interested persons to review in the Commission's Document Control Center located on the first floor of the Tyler Building, 1300 East Main Street, Richmond, Virginia 23219, between the hours of 8:15 a.m. and 5 p.m., Monday through Friday, excluding holidays. Interested persons may also download unofficial copies from the Commission's website: http://www.scc.virginia.gov/case.

(3) The Commission's Division of Public Utility Regulation shall transmit electronically or by mail a copy of this Order and draft guidelines to individuals, organizations, and companies identified by Staff as potentially having an interest in this proceeding.

(4) This matter is continued for further orders of the Commission.

AN ATTESTED COPY HEREOF shall be sent by the Clerk of the Commission to: Joseph K. Reid, III, Esquire, McGuireWoods LLP, Gateway Plaza, 800 East Canal Street, 14th Floor, Richmond, Virginia 23219; Mark O. Webb, General Counsel, Dominion Resources Services, Inc., 120 Tredegar Street, Richmond, Virginia 23219; Noelle J. Coates, Senior Counsel, American Electric Power Service Corporation, 3 James Center, 1051 East Cary Street, Suite 1100, Richmond, Virginia 23219; James R. Bacha, Esquire, American Electric Power Service Corporation, 1 Riverside Plaza, 29th Floor, Columbus, Ohio 43215; Cliona Mary Robb, Esquire, 3006 Seminary Avenue, Richmond, Virginia 23227; and C. Meade Browder, Jr., Senior Assistant Attorney General, 202 N. 9th Street, 8th Floor, Richmond, Virginia 23219-3424. A copy shall be delivered to the Commission's Office of General Counsel and Divisions of Public Utility Regulation and Utility Accounting and Finance.

______________________________

¹The Act, signed into law by the Governor of Virginia on March 9, 2018, became effective July 1, 2018. At the direction of the Virginia Code Commission, Enactment Clauses 9 and 10 of the Act establishing this pilot program were codified as § 56-585.1:6 of the Code of Virginia.

GUIDELINES REGARDING ELECTRIC POWER STORAGE BATTERY PILOT PROGRAMS

A. Purpose

The Commission is establishing these guidelines pursuant to Enactment Clause Nos. 9 and 10 of the Grid Transformation and Security Act of 2018, Chapter 296 of the 2018 Virginia Acts of Assembly, regarding pilot programs for electric power storage batteries (the "Pilot Programs").¹ Specifically, Enactment Clause No. 10 provides that the Commission shall establish such general guidelines as may be necessary for its administration of the Pilot Program by December 1, 2018.

B. Applicability

These guidelines ("Guidelines") are applicable to each Phase I Utility and Phase II Utility, as such terms are defined in subdivision A 1 of § 56-585.1 of the Code of Virginia. In other words, these guidelines are applicable to Appalachian Power Company, the Phase I Utility and Virginia Electric and Power Company, currently doing business as Dominion Energy Virginia, the Phase II Utility.

C. Definition

"Battery energy storage systems" (the "BESS") A system that includes the battery (or batteries) and all the equipment necessary to interconnect the battery (or batteries) to the utility's electric system. This includes but is not limited to switchgear, transformers, inverters, switches, cables, wires, conductors, bus work, protection devices and systems, control devices and systems, fire protection systems, and environmental protection systems.

D. Filing

Each utility may file one or more applications to participate in the Pilot Program at different times, up to the maximum allowable capacity cap of 10 megawatts ("MW") for the Phase I Utility and 30 MW for the Phase II Utility. The utility will note and explain any information requested in these Guidelines that is not available or applicable at the time of each filing.

Any information considered to be confidential may be designated as such, filed separately, and include a request that it be treated in accordance with the Commission's Rules of Practice and Procedure, 5 VAC 5-20-10, et seq.

E. Contents of Filing

Each proposal to deploy a BESS submitted as part of the Pilot Program shall include the following information:

• Location. The location where the utility proposes to install the BESS. If the utility proposes to install a BESS at a customer premise, the utility shall provide the name and address of the customer, a description of the arrangement with the customer allowing collocation on the customer's property, and a description of the proposed ownership of the BESS.

• Capacity. The utility shall provide the capacity of the proposed BESS and the aggregate capacity of all proposals approved by the Commission under the Pilot Program for the utility.

• Technology. The utility shall specify the proposed BESS technology and the manner in which the BESS will be or has been procured.

• In-Service Date. The utility shall provide the expected date on which the proposed BESS will be placed into service. The in-service date shall serve as the start date for the BESS as part of the Pilot Program.  The proposed BESS will be in service for five years unless the utility has provided notice to retire the BESS.  Each proposal shall include an explanation by the utility for any proposed use of the BESS beyond the five-year duration of the Pilot Program.

• Useful Life and Decommissioning. The utility shall provide the projected useful life of the proposed BESS, including known or projected performance degradation and proposed plan for decommissioning at the end of its useful life.

• Cost. The utility shall provide the projected installation cost of the proposed BESS and a detailed analysis of the projected operation and maintenance ("O&M") cost associated with the proposed BESS. This shall include an appropriate cost metric for evaluation based on the proposed objective(s) of the BESS.

• Asset Classification. The utility shall indicate its preferred classification of the proposed BESS as a generation, transmission, or distribution asset.

• Objective. The utility shall specify the objective(s) that the specific proposal will seek to accomplish, including a description of how the specific proposal will accomplish the stated objective(s). Permissible objectives, as listed in Enactment Clause No. 9, include: (i) improved reliability of electrical transmission or distribution systems; (ii) improved integration of different types of renewable resources; (iii) deferred investment in generation, transmission, or distribution of electricity; (iv) reduced need for additional generation of electricity during times of peak demand; or (v) connection to the facilities of a customer receiving generation, transmission, and distribution service from the utility.

Metrics and Performance Data. The utility shall provide the initial metrics that will be used to determine if the proposed BESS is meeting the objective(s) that the proposal seeks to accomplish. Initial metrics may include performance and operational safety metrics.

F. Reporting

The utility shall provide written notice to the Commission within fifteen (15) business days of placing a BESS into service as part of the Pilot Program. The written notice shall include the actual capacity of the BESS placed into service and the capacity remaining available to the utility for future proposals under the Pilot Program.

Each utility shall submit to the Commission an annual consolidated report on the status of the Pilot Program by March 31 of the following year. The report shall include the aggregate capacity of Commission-approved proposals under the Pilot Program. For each approved proposal, the report shall include (i) an update on the progress of the specific proposal in meeting its objective(s), using metrics identified in the initial filing for the proposal as approved by the Commission; (ii) an update on installation cost, as well as actual and projected O&M costs; and, (iii) performance data and metrics over time, including any additional metrics developed during the course of the deployment. The report shall also discuss (i) transmission and distribution system benefits; (ii) line-loss savings; (iii) enhanced electric generation capacity; (iv) fuel cost savings; (v) ancillary services benefits; and, (vi) any readily quantifiable economic development and job creation benefits across the Commonwealth.

_____________________________

¹Enactment Clause Nos. 9 and 10 of Chapter 296 of the 2018 Virginia Acts of Assembly were codified as § 56-585.1:6 of the Code of Virginia at the direction of the Virginia Code Commission.

AT RICHMOND, AUGUST 28, 2018

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. PUR-2018-00061

Ex Parte: In the matter
concerning the implementation by
Virginia Electric and Power
Company d/b/a Dominion Energy Virginia
of a pilot aggregation program pursuant
to House Bill 1451

ORDER FOR COMMENTS ON DRAFT GUIDELINES

On April 20, 2018, the State Corporation Commission ("Commission") established this docket in its Order Directing Comments ("Order Directing Comments") herein for the purpose of receiving comments from Dominion Energy Virginia ("DEV" or "Company") and any other interested party regarding a pilot program established pursuant to the Chapter 415 of the 2018 Acts of Assembly ("Act").¹ The Act directs DEV to submit a proposal to the State Corporation Commission ("Commission") to establish a pilot program that would allow "any school in a public school division . . . that generates electricity from a wind-powered or solar powered renewable energy facility located at the school" certain enumerated options with regard to any amounts of generated electricity that exceed the school's consumption. The Act also directed the Commission, by December 1, 2018, to adopt rules or establish guidelines "as may be necessary for the general administration of the pilot program . . . ."

On June 19, 2018, DEV submitted comments and draft guidelines in response to the Order Directing Comments. The draft guidelines address, inter alia, the applicability of the Commission's net metering rules to this pilot, various charges that participating schools will continue to pay, as well as metering requirements, the treatment of renewable energy certificates, and liability insurance requirements. Comments in this docket were also filed on June 19, 2018, by WGL Energy Systems, Inc. ("WGL Energy"). WGL Energy offered comments in support of the pilot and advocated that the pilot program operate in the form of a feed-in tariff that would enable third party suppliers to participate in the development and operation of solar facilities utilized in the pilot program. No other comments were received.

The Commission Staff's ("Staff") Action Brief filed in this docket, states that the Staff is in general agreement with the draft guidelines submitted by DEV. The Action Brief also summarized (i) the Act establishing this pilot program, (ii) comments received from DEV and WGL Energy, and (iii) DEV's draft guidelines as well as further revisions made by the Company addressing questions raised by the Staff. The Staff has recommended that the Commission issue an order providing notice of the draft guidelines as now revised, and allow an opportunity for interested parties to submit comments thereon.

NOW THE COMMISSION, upon consideration of the foregoing, will receive comments on the draft guidelines attached hereto from interested persons before formally establishing Commission guidelines pursuant to the Act. Comments on the draft guidelines may be filed in this docket on or before October 1, 2018. We also direct the Commission's Division of Public Utility Regulation to provide copies of this Order and the draft guidelines by electronic transmission, or when electronic transmission is not possible, by mail, to individuals, organizations, and companies identified by Staff as potentially having an interest in this proceeding.

Accordingly, IT IS ORDERED THAT:

(1) Comments on the draft guidelines attached hereto shall be filed on or before October 1, 2018. Interested persons wishing to comment or propose modifications or supplements to the draft guidelines shall file an original and fifteen (15) copies of such comments or proposals with Joel H. Peck, Clerk, State Corporation Commission, P.O. Box 2118, Richmond, Virginia 23218-2118. Any interested person desiring to file comments electronically may do so on or before October 1, 2018, by following the instructions on the Commission's website: http://www.scc.virginia.gov/case. Compact disks or any other form of electronic storage medium may not be filed with the comments. All such comments shall refer to Case No. PUR-2018-00061.

(2) Copies of the draft guidelines and other documents filed in this docket are also available for interested persons to review in the Commission's Document Control Center located on the first floor of the Tyler Building, 1300 East Main Street, Richmond, Virginia 23219, between the hours of 8:15 a.m. and 5 p.m., Monday through Friday, excluding holidays. Interested persons may also download unofficial copies from the Commission's website: http://www.scc.virginia.gov/case.

(3) The Commission's Division of Public Utility Regulation shall transmit electronically or by mail a copy of this Order and draft guidelines to individuals, organizations, and companies identified by Staff as potentially having an interest in this proceeding.

(4) This matter is continued for further orders of the Commission.

AN ATTESTED COPY HEREOF shall be sent by the Clerk of the Commission to: Joseph K. Reid, III, Esquire, McGuire Woods LLP, Gateway Plaza, 800 East Canal Street, 14th Floor, Richmond, Virginia 23219; Mark O. Webb, General Counsel, Dominion Resources Services, Inc., 120 Tredegar Street, Richmond, Virginia 23219; Noelle J. Coates, Senior Counsel, American Electric Power Service Corporation, 3 James Center, 1051 East Cary Street, Suite 1100, Richmond, Virginia 23219; James R. Bacha, Esquire, American Electric Power Service Corporation, 1 Riverside Plaza, 29th Floor, Columbus, Ohio 43215; Telemac N. Chryssikos, Esquire., WGL Energy Systems, Inc., 101 Constitution Avenue, N.W., Washington, D.C. 20080; and C. Meade Browder, Jr., Senior Assistant Attorney General, 202 N. 9th Street, 8th Floor, Richmond, Virginia 23219-3424. A copy shall be delivered to the Commission's Office of General Counsel and Divisions of Public Utility Regulation and Utility Accounting and Finance.

___________________________________

¹The Act, signed into law by the Governor of Virginia on March 23, 2018, became effective July 1, 2018. At the direction of the Virginia Code Commission, the Act was codified as § 56-585.1:7 of the Code of Virginia.

PROPOSED GUIDELINES FOR PUBLIC SCHOOL EXCESS WIND OR SOLAR RENEWABLE GENERATION PILOT PROGRAM

I. Introduction

The defined terms in these proposed Pilot Program guidelines shall have the meanings provided in Paragraph III, below.

Pursuant to Ordering Paragraph (2) of the Commission's Order Directing Comments in Case No. PUR-2018-00061 and pursuant to House Bill 1451, enacted as Chapter 415 of the 2018 Acts of Assembly,¹ Virginia Electric and Power Company, d/b/a Dominion Energy Virginia, respectfully submits proposed guidelines, which, upon Commission approval, would govern the Company's Pilot Program not to exceed an aggregate of ten megawatts ("10 MW") of installed capacity, for the treatment of any Host School's excess wind or solar renewable fuel generation, as envisioned by House Bill 1451 and as described below.

The Pilot Program will allow any Host School in a public school division in the Company's Virginia service territory that generates electricity from a wind-powered or solar-powered renewable fuel generator, which is located on such Host School's premises, in an amount that exceeds the electricity consumed by such Host School to have the Company either (i) credit one or more Metered Account(s) of Target School(s) or (ii) provide a payment for such Excess Generation to the Host School.

The School Board overseeing the Host School shall have the option to direct the Company to provide compensation for the Host School's Excess Generation on an annual basis, in a manner to be determined by the School Board, as follows:

A. As the first option, the School Board could direct the Company to apportion the Host School's Excess Generation to the Metered Account(s) of Target School(s) in the same public school division, such that the generation energy charges on the electric bills of such Metered Accounts of the Target Schools would be reduced by the amount of the Excess Generation kWh apportioned to the Metered Accounts multiplied by the applicable VEPGA generation energy rate of the Target Schools;

B. Alternatively, the School Board could direct the Company to pay the Host School for its Excess Generation through a power purchase agreement at a rate pursuant to the Amended and Restated Agreement for the Provision of Electric Service to Municipalities and Counties of the Commonwealth of Virginia From Virginia Electric and Power Company entered into by the Company and VEPGA on August 1, 2014, as amended.

II. Term

The Term of the Pilot Program shall be for six (6) years.  Such term shall begin on the Commencement Date and end on the 6th anniversary of the Commencement Date, which shall be the Termination Date.

III. Terms and Definitions

The terms below shall have the following definitions for the purposes of these Pilot Program guidelines:

A. "Act" – House Bill 1451 or Chapter 415 of the 2018 Acts of Assembly.

B. "Agreement" – the Amended and Restated Agreement for the Provision of Electric Service to Municipalities and Counties of the Commonwealth of Virginia From Virginia Electric and Power Company entered into by the Company and VEPGA on August 1, 2014, as amended, and any superseding agreement reached between the Company and VEPGA for Electric Service to become effective subsequent to the August 1, 2014 agreement.

C. "Commencement Date" – the commencement date for the Pilot Program, which shall be the first of the month that (i) is no less than fifteen (15) calendar days after entry of a Commission order adopting guidelines, rules, or regulations governing the Pilot Program and (ii) no more than sixty (60) calendar days after the date of such order of the Commission.

D. "Commission" – the State Corporation Commission of Virginia.

E. "Company" – Virginia Electric and Power Company, d/b/a Dominion Energy Virginia.

F. "Customer" – Any person, group of persons, association, partnership, firm or corporation purchasing Electric Service from the Company.

G. "Delivery Point" – the point where the Company's conductors for delivering Electric Service are connected to the Customer's conductors for receiving Electric Service.

H. "Distribution Service" – The delivery of electricity through the distribution facilities of the Company to the Delivery Point of a Customer.

I. "Electric Delivery Service" – Distribution Service, and the delivery of electricity under this tariff to Customers served at transmission level voltage, and related utility services, to the extent each is provided under this tariff by the Company.

J. "Electric Service" – The provision, by the Company to the Customer, of Electric Delivery Service and, to the extent provided by the Company, Electricity Supply Service and utility services.  Electric Service also means, where applicable, the interconnection of electric generators with the Company.

K. "Electricity Supply Service" – The generation of electricity, or when provided together, the generation of electricity and its transmission to the distribution facilities of the Company on behalf of a Customer.

L. "Excess Generation" – the amount of electricity generated by the Host School's Renewable Generation Facility during the Host School's Net Metering Period that is in excess of the number of kilowatt-hours consumed by the Host School during the same Net Metering Period.

M. "Host School" – a public elementary, middle, or high school that (i) is a Customer of the Company, (ii) is billed under an applicable VEPGA Rate Schedule, (iii) is situated in the Company's Virginia service territory, and (iv) has a Renewable Generation Facility, located on its premises, and generates more electricity than the Host School consumes in any Net Metering Period.

N. "Metered Account" – the Company-assigned account number, (and any superseding account number(s) that the Company may assign for this same account) for a Delivery Point metered by the Company for a Target School, which was identified by the School Board to receive a portion of the Host School's Excess Generation.

O. "Person" – means any individual, sole proprietorship, corporation, limited liability company, partnership, association, company, business, trust, joint venture, or other private legal entity, the Commonwealth, or any city, town, authority or other political subdivision of the Commonwealth.

P. "Pilot Program" – the pilot program conducted by the Company pursuant to the Act.

Q. "Rate Schedule" – any of the Company's rate schedules that are included in Attachment B of the Agreement.

R. "REC" or "RECs" – one or more renewable energy certificates owned by the Host School and created by the renewable energy output of the Host School's Renewable Generation Facility.

S. "Renewable Fuel Generator" – one or more electrical generators that meet the following criteria: 

1. Wind or solar power is the exclusive renewable fuel source;

2. The Host School owns and operates or has contracted with other Persons to own or operate, or both, the electrical generator(s), pursuant to the 20 VAC 5-315 Rules;

3. The electrical generator(s) is located on the Host School's premises and is connected to the Host School's wiring on the Host School's side of the interconnection with the Company;

4. The electrical generator(s) operates in parallel with the Company's distribution facilities.

T. "Renewable Generation Facility" – one or more Renewable Fuel Generators that has an aggregate installed capacity not to exceed the limitations of the 20 VAC 5-315 Rules.

U. "School Board" – the local recognized elected or appointed board or group that is responsible for public education in the same public school division in which the Host School and Target School(s) are located.

V. "Target School" – a public elementary, middle, or high school (including any public school technical center located in and only available to the public school students of the same public school division in which the Host School is located) that (i) is a Customer of the Company, (ii) is billed under an applicable VEPGA Rate Schedule, (iii) is located in the same public school division as the Host School, and (iv) has one or more Metered Accounts identified by the School Board to receive a bill credit amount based on an apportionment of the Host School's Excess Generation.

W. "Term" – the six (6)-year period during which the Pilot Program is effective, beginning with the Commencement Date and ending on the Termination Date.

X. "Termination Date" – the termination date of the Pilot Program, which will be the sixth anniversary of the Commencement Date.

Y. "VEPGA" – the Virginia Energy Purchasing Governmental Association.

Z. "20 VAC 5-315 Rules" – the Commission's Regulations Governing Net Energy Metering.

IV. Applicability and Availability

A. Pursuant to the Act and the 20 VAC 5-315 Rules² and pursuant to Attachment A of the Agreement, the Company's Pilot Program is applicable to any Host School which meets the following criteria:

1. The Host School must be a Net Metering Customer as defined in the 20 VAC 5-315 Rules;

2. The Host School's Renewable Generation Facility is accepted by the Company into the Pilot Program, along with any Metered Account(s) of one or more Target Schools, which have been identified by the School Board to receive an apportionment of the Excess Generation, as described in Paragraph VI, below;

3. The following provisions of the 20 VAC 5-315 Rules are not applicable to the Host School or to any Target School:

a. Agricultural Net Metering;

b. Small Agricultural Generators provisions;

c. The standby charge for residential Net Metering Customers; and

d. Option for the Host School to sign a power purchase agreement with the Company under the 20 VAC 5-315 Rules if the School Board directs the Company to apportion the Host School's Excess Generation to Metered Account(s) of Target School(s) in accordance with Paragraph I.A., above.

4. The Host School and the School Board-designated Metered Accounts of each Target School accepted into the Company's Pilot Program must purchase Electricity Supply Service from the Company during the Term of the Pilot Program.

5. Once the aggregate 10 MW alternating current installed capacity limit is reached, this Pilot Program shall be closed and no longer available to other host schools.

B. Once a Host School is accepted into the Pilot Program, in accordance with Paragraph IV.A., above, the provisions of the applicable of Paragraph I.A., or Paragraph I.B., above – but not both – will be available at the conclusion of the Host School's Net Metering Period that is in progress as of the Commencement Date of the Pilot Program.

C. The Pilot Program shall end on the Termination Date. As such, the provisions of the applicable of Paragraph I.A., or Paragraph I.B., above – but not both – shall no longer be available for the Host School's excess generation determined by the Company, in accordance with Paragraph V., below, for the Net Metering Period that is in progress as of the Termination Date of the Pilot Program. After the Termination Date, the 20 VAC 5-315 Rules shall apply to the Host School's excess generation.

V. Excess Generation

A. The Company will determine the Host School's Excess Generation pursuant to these Pilot Program guidelines.

B. The Company will calculate the Host School's Excess Generation for the most recently completed Net Metering Period during the Term of the Pilot Program. Unless the School Board directs the Company to provide compensation for the Host School's Excess Generation in accordance with either Paragraph I.A. or Paragraph I.B., above – but not both – the Company will follow the 20 VAC 5-315 Rules regarding the Host School's Excess Generation.

C. Within sixty (60) days of the effective date of the Pilot Program to the Host School, the School Board will provide the Company with the following information:

1. A list of the Metered Account(s) for one or more Target School(s) to which the Host School's Excess Generation will be apportioned;

2. The percentage of the Host School's Excess Generation to be apportioned to each Metered Account, where the sum of the percentages provided by the School Board for the Metered Accounts cannot exceed 100 percent or the total amount of the Host School's Excess Generation.

VI. Billing and Payment

A. Within sixty (60) days after the end of the Host School's most recently completed Net Metering Period and continuing annually, thereafter, for each successive Host School Net Metering Period during the Term of the Pilot Program until the Termination Date, the Company will do the following:

1. If the School Board directs the Company to apportion the Host School's Excess Generation to one or more Metered Accounts, the Company will calculate and apply a bill credit dollar amount to each Metered Account, which will receive a School-Board-designated portion of the Host School's Excess Generation, using the following formula:

TSMA_BCDA = EG * TSMA% * VEPGA_RATE

Where:

TSMA_BCDA = Target School Metered Account's Bill Credit Dollar Amount which is the amount that the Company will apply to one or more Metered Accounts designated by the School Board;

EG = Excess Generation at the end of Host School's most recently completed Net Metering Period;

TSMA% = Specified Target School Metered Account's percentage of the Host School's Excess Generation that is designated by the School Board, for the Metered Account; and

VEPGA_RATE = VEPGA Rate which is the applicable generation-related energy rate under the Electricity Supply Service Charges paragraph of the applicable, selected VEPGA Rate Schedule used to bill the Metered Account.  If such generation-related energy rate has two or more blocks or is time-differentiated, the generation-related energy rate will be equal to average annual generation-related energy rate for each Metered Account for the consecutive 12-month billing period that most closely matches the Host School's Net Metering Period.

There shall be no assessment of any new service charges or fees in connection with or arising out of such crediting during the Term of the Pilot Program.

If the School Board identifies one or more Metered Accounts but does not provide the Company with the corresponding percentage(s) to apportion the Host School's Excess Generation to the Metered Account(s), or otherwise does not follow the Pilot Program guidelines, the Company will provide compensation for the Host School's Excess Generation in accordance with the 20 VAC 5-315 Rules.

2. If, alternatively, the School Board directs the Company to provide a payment to the Host School for the Excess Generation, the Company will compensate the Host School for the Excess Generation in accordance with the VEPGA Agreement.

B. For each billing month, the Host School will pay to the Company the sum of the applicable Distribution Service Charges, Electricity Supply Service Charges, standby charges mutually agreed to by the Company and VEPGA in the Agreement, and all riders applicable to the VEPGA Rate Schedule under which the Host School receives Electric Service from the Company.

C. For each billing month, the Target School will pay to the Company the sum of the applicable Distribution Service Charges, Electricity Supply Service Charges, standby charges mutually agreed to by the Company and VEPGA in the Agreement, and all riders applicable to the VEPGA Rate Schedule under which the Target School receives Electric Service from the Company.

VII. Metering Requirements

A. The Company will require the installation of an interval data recorder ("IDR") meter or an advanced metering infrastructure ("AMI") meter at the Host School's service location to measure (i) the Host School's average 30-minute interval capacity and energy consumption by half-hour during the billing month and (ii) the average 30-minute interval capacity and energy delivered to the Host School by the Host School's Renewable Generation Facility. 

If the Host School's applicable selected VEPGA Rate Schedule does not otherwise require interval data metering or if the Host School is not located in the Company's "AMI footprint," the Host School agrees to pay to the Company the Company's incremental cost for the interval data metering equipment, subject to an Excess Facilities Charge mutually agreed to by the Company and VEPGA in the Agreement, during the period that the Host School participates in the Company's Pilot Program.

B. The Company will require the installation of an IDR or an AMI meter to measure the total output by half-hour of the Host School's Renewable Generation Facility for the billing month. The Host School agrees to pay to the Company the Company's incremental cost for the interval data metering equipment, subject to an Excess Facilities Charge mutually agreed to by the Company and VEPGA in the Agreement, during the period that the Host School participates in the Company's Pilot Program.

VIII. Renewable Energy Certificates

A. The Host School owns any RECs associated with the Renewable Generation Facility during the Term of the Pilot Program.

B. During the Term of the Pilot Program and continuing after the Termination Date of the Pilot Program, the Host School agrees to waive any right (i) to sell to the Company or to any other party or (ii) to offer to market all Renewable Generation Facility RECs which are created and accumulated during the Term of the Pilot Program.

IX. Liability insurance

A. A Host School with a Renewable Generation Facility having an alternating current capacity not exceeding 10 kilowatts shall maintain commercial or other insurance providing coverage of at least $1,000,000 for the liability of the insured against loss arising out of the use of a Renewable Generation Facility, and for a Renewable Generation Facility having an alternating current capacity exceeding 10 kilowatts the coverage shall be in the amount of at least $2,000,000.  The Host School shall name the Company as an additional insured party under such policy.

B. The Host School is not required to purchase additional liability insurance where the Host School's existing insurance policy provides coverage against loss arising out of the use of a Renewable Generation Facility by virtue of not explicitly excluding coverage for such loss.

X. Additional Controls and Tests

A Host School's Renewable Generation Facility shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories.  Beyond the requirements set forth in these Pilot Program guidelines, and to insure public safety, power quality, and reliability of the Company's electric distribution system, the Host School whose Renewable Generation Facility meets those standards shall bear all reasonable costs of equipment required for the interconnection to the Company's electric distribution system, including costs, if any, to (i) install additional controls and (ii) perform additional tests. To the extent permissible under the Virginia Tort Claims Act,³ the participating schools and school districts shall be responsible for any negligent acts or omissions of their board members, employees, contractors, agents, students, or other representatives associated with the Pilot Program.

XI. Reports to the General Assembly

The Company shall submit a report to the General Assembly by December 1 of each year the Pilot Program is in effect, commencing in 2020, regarding the status of the Pilot Program's enrollment and any other information the Company deems appropriate.

________________________________

¹HB 1451 was codified as § 56-585.1:7 of the Code of Virginia at the direction of the Virginia Code Commission.

²All 20 VAC 5-315 Rules definitions, which are applicable to the Host School, shall have the same meaning in these Pilot Program guidelines.

³Article 18.1 (§ 8.01 - 195.1, et. seq.) of Chapter 3 of Title 8.01 of the Code of Virginia.

STATE BOARD OF HEALTH

Drinking Water State Revolving Fund Program Intended Use Plan for 2019

Under the Safe Drinking Water Act, Congress authorizes capitalization grants to the states through the Drinking Water State Revolving Fund (DWSRF) Program. As part of the annual DWSRF grant application process Virginia seeks meaningful public involvement through input, review, and comments. The VDH's Office of Drinking Water (ODW) prepared a draft Intended Use Plan (IUP) that explains the goals of the program, funding priorities, how the Virginia Department of Health (VDH) intends to use the grant funds, and other important information submitted from the funding requests and set-aside suggestions.

VDH received several funding requests and set-aside suggestions following the January DWSRF funding solicitation announcement. The draft IUP and draft project lists are open for review and comment by the public for a period of 60 days. The document entitled "Virginia Drinking Water State Revolving Fund Program Design Manual" (dated January, 2018) is a part of the IUP, was announced in the Virginia Register of Regulations, and is posted on the ODW website. The Program Design Manual provides information on VDH's project prioritization criteria and methodologies.

VDH will hold a public meeting to solicit comments and recommendations regarding the IUP on Wednesday, October 17, 2018, from 9 a.m. to 11 a.m. at the VDH Office of Drinking Water, 6th Floor Library, 109 Governor Street, VA 23219. Those individuals planning to attend the public meeting should contact Theresa Hewlett at telephone (804) 864-7501 by the close of business on October 10, 2018.

Any written comments from the public must be submitted by November 16, 2018, the close of the public comment period. VDH considers all meaningful public input and comments and will make revisions to the IUP and project priority list if necessary. Please direct your requests for information and forward written comments to Steve Pellei, FCAP Division Director, Office of Drinking Water, Virginia Department of Health, 109 Governor Street, Richmond, VA 23219, telephone (804) 864-7500, FAX (804) 864-7521, or email steve.pellei@vdh.virginia.gov.

The following information is provided under Financial and Construction Assistance Programs at http://www.vdh.virginia.gov/drinking-water/financial-construction-assistance-programs/drinking-water-state-revolving-fund-program/.

VIRGINIA LOTTERY

Director's Orders

The following Director's Orders of the Virginia Lottery were filed with the Virginia Registrar of Regulations on August 29, 2018. The orders may be viewed at the Virginia Lottery, 600 East Main Street, Richmond, Virginia, or at the office of the Registrar of Regulations, 900 East Main Street, 11th Floor, Richmond, Virginia.

Director's Order Number One Hundred One (18)

Virginia Lottery "Fas Rewards October Double Points Retailer Incentive Promotion" (effective October 2, 2018)

Director's Order Number One Hundred Thirteen (18)

Virginia Lottery's Scratch Game 1889 "Super Bonus Crossword" Final Rules for Game Operation (effective August 28, 2018)

Director's Order Number One Hundred Twenty-Two (18)

"Retailer Recruitment Incentive Promotion - All-Product Retailers" Virginia Lottery Retailer Incentive Program Requirements (This Director's Order is effective nunc pro tunc to July 1, 2018, replaces all prior versions of the requirements and Director's Order for this promotion, and shall remain in full force and effect through the end of the promotion period unless otherwise extended by the Director)

Director's Order Number One Hundred Twenty-Three (18)

Retailer Recruitment Incentive Promotion - Mobile-Only Retailers" Virginia Lottery Retailer Incentive Program Requirements (effective August 27, 2018)

Director's Order Number One Hundred Twenty-Four (18)

"Player Awareness Program-Debit-at-Vending" Virginia Lottery Program Requirements (effective August 28, 2018)

Director's Order Number One Hundred Twenty-Five (18)

Virginia Lottery's "7-Eleven Spend $10 Promotion" (effective August 28, 2018)

Director's Order Number One Hundred Twenty-Eight (18)

Virginia Lottery's "Ultimate Fan Cave Promotion" Final Rules for Operation (effective September 1, 2018)

Director's Order Number One Hundred Twenty-Nine (18)

Virginia Lottery's "Wawa Win Gas For A Year Promotion" Final Rules for Operation (effective October 1, 2018)

Director's Order Number One Hundred Thirty (18)

Virginia Lottery "Multi-Chain Redskins Ticket Contest" Retailer Incentive Promotion" (effective September 1, 2018)

DEPARTMENT OF MINES, MINERALS AND ENERGY

Notice of Periodic Review and Small Business Impact Review

Pursuant to Executive Order 14 (as amended July 16, 2018) and §§ 2.2-4007.1 and 2.2-4017 of the Code of Virginia, the Department of Mines, Minerals and Energy is conducting a periodic review and small business impact review of 4VAC25-31, Reclamation Regulations for Mineral Mining. The review of this regulation will be guided by the principles in Executive Order 14 (as amended July 16, 2018).

The purpose of this review is to determine whether this regulation should be repealed, amended, or retained in its current form. Public comment is sought on the review of any issue relating to this regulation, including whether the regulation (i) is necessary for the protection of public health, safety, and welfare or for the economical performance of important governmental functions; (ii) minimizes the economic impact on small businesses in a manner consistent with the stated objectives of applicable law; and (iii) is clearly written and easily understandable.

The comment period begins September 17, 2018, and ends October 8, 2018.

Comments may be submitted online to the Virginia Regulatory Town Hall at http://www.townhall.virginia.gov/L/Forums.cfm. Comments may also be sent to Michael Skiffington, Director of Policy and Planning, Department of Mines, Minerals and Energy, 1100 Bank Street, 8th Floor, Richmond, VA 23219, telephone (804) 692-3212, FAX (804) 692-3237, or email mike.skiffington@dmme.virginia.gov.

Comments must include the commenter's name and address (physical or email) information in order to receive a response to the comment from the agency. Following the close of the public comment period, a report of both reviews will be posted on the Town Hall and a report of the small business impact review will be published in the Virginia Register of Regulations.

Small Business Impact Review - Report of Findings

Pursuant to § 2.2-4007.1 of the Code of Virginia, the Department of Mines, Minerals and Energy (DMME) conducted a small business impact review of 4VAC25-125, Regulations Governing Coal Stockpiles and Bulk Storage and Handling Facilities, and determined that this regulation should be retained in its current form. The Department of Mines, Minerals and Energy is publishing its report of findings dated August 16, 2018, to support this decision in accordance with § 2.2-4007.1 F of the Code of Virginia.

This regulation is required by statute. It is necessary to protect the health and safety of miners working at underground and surface mines in the Commonwealth. The Department of Mines, Minerals and Energy has reviewed the regulation and determined that it does not adversely impact small businesses.

Contact Information: Michael Skiffington, Regulatory Coordinator, Department of Mines, Minerals and Energy, Division of Administration, 1100 Bank Street, 8th Floor, Richmond, VA 23219, or email mike.skiffington@dmme.virginia.gov.

Small Business Impact Review - Report of Findings

Pursuant to § 2.2-4007.1 of the Code of Virginia, the Department of Mines, Minerals and Energy conducted a small business impact review of 4VAC25-165, Regulations Governing the Use of Arbitration to Resolve Coalbed Methane Gas Ownership Disputes, and determined that this regulation should be retained in its current form. The Department of Mines, Minerals and Energy is publishing its report of findings dated August 16, 2018, to support this decision in accordance with § 2.2-4007.1 F of the Code of Virginia.

The Department of Mines, Minerals and Energy has reviewed the regulation and determined that it does not adversely impact small businesses.

Contact Information: Michael Skiffington, Regulatory Coordinator, Department of Mines, Minerals and Energy, Division of Administration, 1100 Bank Street, 8th Floor, Richmond, VA 23219, or email mike.skiffington@dmme.virginia.gov.

VIRGINIA DEPARTMENT OF PLANNING AND BUDGET

Commercial Activities List – Public Comments and Recommendations

Pursuant to § 2.2-1501.1 of the Code of Virginia, the Virginia Department of Planning and Budget (DPB) published the Commercial Activities List (CAL) on September 4, 2017. The CAL is posted on the DPB website under Documents, Instructions and Publications as "Commercial Activities List – 2017" and is included in this notice.

DPB is seeking written comments on the CAL and invites recommendations from the public regarding activities being performed by state agencies that might better be performed by the private sector. The public comment period will begin September 17, 2018, and ends October 1, 2018. Please include "CAL" in the subject of the email.

Contact Information: Cari Corr, Commercial Activities List, Virginia Department of Planning and Budget, 1111 East Broad Street, Richmond, VA 23219, telephone (804) 225-4549, or email cari.corr@dpb.virginia.gov.

Virginia Commercial Activities List for
FY 2016 and FY 2017

STATE WATER CONTROL BOARD

Proposed Enforcement Action for F.V. Jones and Sons LLC

An enforcement action has been proposed for F.V. Jones and Sons LLC for violations at the F.V. Jones and Sons facility located in Mecklenburg County. The proposed enforcement action contains a schedule of compliance that details the corrective action required. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. G. Marvin Booth, III will accept comments by email at marvin.booth@deq.virginia.gov, FAX at (540) 562-6725, or postal mail at Department of Environmental Quality, 3019 Peters Creek Road, Roanoke, VA 24019, from September 17, 2018, to October 18, 2018.

Public Meeting for Total Maximum Daily Loads for Big Reed Island Creek, Greasy Creek, Little Reed Island Creek, East Fork Little Reed Island Creek, and Island Creek

The Department of Environmental Quality (DEQ) seeks written and oral comments from interested persons on the development of total maximum daily loads (TMDLs) for Big Reed Island Creek, Greasy Creek, Little Reed Island Creek, East Fork Little Reed Island Creek, and Island Creek. These streams are listed on the 2016 § 303(d) TMDL Priority List and Report as impaired due to exceedances of the state's water quality standards for bacteria in Carroll, Floyd, Pulaski, and Wythe Counties and the town of Hillsville, Virginia. In addition, Big Reed Island Creek, Island Creek, and Little Reed Island Creek are listed as impaired for failure to support the aquatic life use.

Section 303(d) of the Clean Water Act and § 62.1-44.19:7 C of the State Water Control Law requires DEQ to develop TMDLs for pollutants responsible for each impaired water contained in Virginia's § 303(d) Priority List and Report.

The impaired segments include 19.85 miles of Big Reed Island Creek from its headwaters on Hurricane Knob downstream to the Pine Creek confluence; 13.81 miles of Big Reed Island Creek from the Bobbitt Creek confluence to the Greasy Creek confluence; 9.85 miles of Big Reed Island Creek from the Greasy Creek confluence to the confluence with the New River; 13.63 miles of Greasy Creek from the Carroll-Floyd county line downstream to the Big Reed Island Creek confluence; 11 miles of Little Reed Island Creek from the confluence with Big Reed Island Creek upstream to the Rock Creek confluence; 19.7 miles of Little Reed Island Creek from the Rock Creek confluence upstream to the Hillsville Public Water Supply intake; 5.28 miles of East Fork Little Reed Island Creek from the Hillsville Public Water Supply intake upstream five miles; and 13.35 miles of Island Creek and tributaries northeast of Hillsville near Huffman Knob.

The first public meeting on the development of the TMDL to address the bacteria and aquatic life impairments for these segments will be held on September 17 from 6 p.m. to 8 p.m. at the Crossroads Institute, 1117 East Stuart Drive, Galax, VA 24333.

The public comment period will begin on September 17, 2018, and end on October 17, 2018. An advisory committee to assist in development of this TMDL will be established. Persons interested in assisting should notify the DEQ contact person by the end of the comment period and provide their name, address, phone number, email address, and the organization they are representing (if any). Notification of the composition of the panel will be sent to all applicants.

A component of a TMDL is the wasteload allocations (WLAs); therefore, this notice is provided pursuant to § 2.2-4006 A 14 of the Administrative Process Act for any future adoption of the TMDLs associated WLAs. Information on the development of the TMDLs for these impairments is available upon request. Questions, information requests, and all written comments should be addressed to Martha Chapman, Department of Environmental Quality, Southwest Regional Office, 355-A Deadmore Street, Abingdon, VA 24210, telephone (276) 676-4800, or email martha.chapman@deq.virginia.gov. All written comments should include the name, address, and telephone number of the person submitting the comments.

VIRGINIA CODE COMMISSION

Notice to State Agencies

Contact Information: Mailing Address: Virginia Code Commission, Pocahontas Building, 900 East Main Street, 8th Floor, Richmond, VA 23219; Telephone: (804) 698-1810; Email: varegs@dls.virginia.gov.

Meeting Notices: Section 2.2-3707 C of the Code of Virginia requires state agencies to post meeting notices on their websites and on the Commonwealth Calendar at https://commonwealthcalendar.virginia.gov.

Cumulative Table of Virginia Administrative Code Sections Adopted, Amended, or Repealed: A table listing  regulation sections that have been amended, added, or repealed in the Virginia Register of Regulations since the regulations were originally published or last supplemented in the print version of the Virginia Administrative Code is available at http://register.dls.virginia.gov/documents
/cumultab.pdf.

Filing Material for Publication in the Virginia Register of Regulations: Agencies use the Regulation Information System (RIS) to file regulations and related items for publication in the Virginia Register of Regulations. The Registrar's office works closely with the Department of Planning and Budget (DPB) to coordinate the system with the Virginia Regulatory Town Hall. RIS and Town Hall complement and enhance one another by sharing pertinent regulatory information.

ERRATA

DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES

Title of Regulation: 22VAC30-20. Provision of Vocational Rehabilitation Services.

Publication: 35:1 VA.R. 94-120 September 3, 2018

Correction to Final Regulation:

Page 101, 22VAC30-20-30, second column, subdivision 3, delete ", or the applicant's employment history or current employment status, or the applicant's educational status or current educational credential; and"

VA.R. Doc. No. R19-5227; Filed September 6, 2018