20 Va. Admin. Code § 5-335-40

Current through Register Vol. 40, No. 22, June 17, 2024

Section 20VAC5-335-40 - Procurement of energy storage projects by Phase I and Phase II Utilities

A. In procuring energy storage projects, each Phase I or Phase II Utility shall use competitive bidding to the extent practicable, consistent with § 56-233.1 of the Code of Virginia.

B. Beginning in 2021 and ending in either 2035 or when the storage targets set forth in 20VAC5-335-30 are met, whichever is sooner, each Phase I or Phase II Utility shall sponsor at least one competitive solicitation for energy storage projects per calendar year, consistent with the following requirements:

1. The request for proposals shall quantify and describe the utility's need for energy or capacity.

2. The request for proposals shall be publicly announced and made available for public review on the utility's website at least 60 calendar days prior to the closing of such request for proposals.

3. The request for proposals shall provide, at a minimum, the following information:

(i) the size, type, and timing of energy storage projects for which the utility anticipates contracting;

(ii) any minimum thresholds that must be met by respondents, consistent with established codes and standards;

(iii) major assumptions to be used by the utility in the bid evaluation process, including environmental emission standards;

(iv) detailed instructions for preparing bids so that bids can be evaluated on a consistent basis;

(v) the preferred general location of additional energy storage projects; and

(vi) specific information concerning the factors involved in determining the price and non-price criteria used for selecting winning bids.

4. A utility may evaluate responses to the request for proposals based on any criteria that it deems reasonable but shall at a minimum consider the following in its selection process:

(i) the status of a particular project's development;

(ii) the age of existing facilities;

(iii) the demonstrated financial viability of a project and the developer;

(iv) a developer's prior experience in the field;

(v) the location and effect on the transmission grid of an energy storage project;

(vi) the benefits to the Commonwealth that are associated with particular projects, including regional economic development and the use of goods and services from Virginia businesses;

(vii) the environmental impacts of particular resources, including impacts on air quality within the Commonwealth and the carbon intensity of the utility's generation portfolio; and

(viii) how any project impacts the goals established by the Virginia Environmental Justice Act (§ 2.2-234 et seq. of the Code of Virginia).

5. A utility shall maintain documentation of its reasoning for rejecting any specific response to the request for proposals.

C. Each utility shall provide, upon request, equitable access to relevant electric system data, with appropriate confidentiality safeguards in place for privacy, system security, and public safety. Access shall be provided in a timely manner such that third parties may reasonably utilize the data to inform responses to the request for proposal.

D. Each utility shall report on any competitive solicitations for energy storage projects as part of the annual plan required by § 56-585.5D 4 of the Code of Virginia.

20 Va. Admin. Code § 5-335-40

Derived From Virginia Register Volume 37, Issue 10, eff. 1/1/2021.

Statutory Authority: §§ 12.1-13 and 56-585.5 of the Code of Virginia.