Natural gas, biogas, and other gas sources of energy; definitions, energy conservation. (SB565)

Introduced By

Sen. Scott Surovell (D-Mount Vernon) with support from co-patron Del. Israel O'Quinn (R-Bristol)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Natural gas, biogas, and other gas sources of energy; definitions; energy conservation and efficiency; Steps to Advance Virginia's Energy Plan; biogas supply infrastructure projects; work group. Permits natural gas utilities to include in their fuel portfolios, submitted to the State Corporation Commission to monitor fuel prices and purchases, supplemental or substitute forms of gas sources, defined in the bill, that meet certain standards and that reduce emissions intensity. The bill amends provisions of the Code related to conservation and energy efficiency programs, removes certain cost-effectiveness requirements for conservation and energy efficiency programs, and adds appliance rebates to the types of programs the Commission may consider. The bill expands conservation and ratemaking efficiency provisions of the Code that currently apply to natural gas consumption specifically to instead apply generally to energy consumption. The bill introduces enhanced leak detection and repair programs, defined in the bill, as a type of eligible infrastructure replacement for a natural gas utility facility. The bill provides that the costs of detecting and repairing leaks may be added to a natural gas utility's plan to identify proposed eligible infrastructure replacement projects and related cost recovery mechanisms, known as the utility's Steps to Advance Virginia's Energy (SAVE) Plan. The bill adds provisions to the Code related to biogas supply infrastructure projects, defined in the bill, and specifies that eligible infrastructure costs for such projects include (i) the investment in such projects, (ii) the return on the investment in such projects, (iii) a revenue conversion factor, (iv) operating and maintenance expenses, (v) depreciation, (vi) property tax and other taxes or government fees, and (vii) carrying costs on the over-recovery or under-recovery of the eligible biogas supply infrastructure costs. Under the bill, natural gas utilities can recover these eligible infrastructure costs on an ongoing basis through the gas component of the utility's rate structure or other recovery mechanism approved by the Commission. The bill provides that the biogas supply investment plan submitted by a natural gas utility may include an option to receive the biogas or sell the biogas at market prices and establishes a timeline for the Commission to approve such plan. The bill requires a natural gas utility with an approved biogas supply investment plan to annually file a report of the investments made, the eligible infrastructure costs incurred and the amount of such costs recovered, the volume of biogas delivered to customers or sold to third parties during the 12-month reporting period, and an analysis of the price of biogas delivered to customers and the market cost of biogas during the reporting period. Additionally, the bill directs the Department of Environmental Quality to convene a stakeholder work group to determine the feasibility of setting a statewide methane reduction goal and plan. The recommendations of the work group shall be reported to the General Assembly by July 1, 2023. This bill is identical to HB 558. Read the Bill »


Bill Has Passed


01/12/2022Prefiled and ordered printed; offered 01/12/22 22102111D
01/12/2022Referred to Committee on Agriculture, Conservation and Natural Resources
01/22/2022Impact statement from SCC (SB565)
02/01/2022Senate committee, floor amendments and substitutes offered
02/01/2022Reported from Agriculture, Conservation and Natural Resources with substitite (15-Y 0-N) (see vote tally)
02/01/2022Committee substitute printed 22105710D-S1
02/01/2022Rereferred to Commerce and Labor
02/07/2022Senate committee, floor amendments and substitutes offered
02/07/2022Reported from Commerce and Labor with substitute (13-Y 2-N) (see vote tally)
02/07/2022Committee substitute printed 22106179D-S2
02/08/2022Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/09/2022Read second time
02/09/2022Committee substitute rejected 22105710D-S1
02/09/2022Reading of substitute waived
02/09/2022Committee substitute agreed to 22106179D-S2
02/09/2022Reading of amendments waived
02/09/2022Amendments by Senator Surovell agreed to
02/09/2022Passed by for the day
02/10/2022Read second time
02/10/2022Reading of amendments waived
02/10/2022Amendments by Senator Surovell agreed to
02/10/2022Engrossed by Senate - committee substitute with amendments SB565ES2
02/10/2022Printed as engrossed 22106179D-ES2
02/11/2022Read third time and passed Senate (35-Y 5-N) (see vote tally)
02/21/2022Placed on Calendar
02/21/2022Read first time
02/21/2022Referred to Committee on Commerce and Energy
02/24/2022Impact statement from SCC (SB565ES2)
03/03/2022House committee, floor amendments and substitutes offered
03/03/2022Reported from Commerce and Energy with substitute (13-Y 9-N) (see vote tally)
03/03/2022Committee substitute printed 22107459D-H1
03/07/2022Read second time
03/08/2022Read third time
03/08/2022Committee substitute agreed to 22107459D-H1
03/08/2022Engrossed by House - committee substitute SB565H1
03/08/2022Passed House with substitute (60-Y 37-N)
03/08/2022VOTE: Passage (60-Y 37-N) (see vote tally)
03/08/2022Impact statement from SCC (SB565H1)
03/09/2022House substitute agreed to by Senate (37-Y 2-N) (see vote tally)
03/09/2022Title replaced 22107459D-H1
03/11/2022Bill text as passed Senate and House (SB565ER)
03/11/2022Signed by President
03/11/2022Signed by Speaker
03/14/2022Impact statement from SCC (SB565ER)
03/22/2022Enrolled Bill Communicated to Governor on March 22, 2022
03/22/2022G Governor's Action Deadline 11:59 p.m., April 11, 2022
04/11/2022Governor's recommendation received by Senate
04/27/2022Senate concurred in Governor's recommendation (32-Y 8-N) (see vote tally)
04/27/2022House concurred in Governor's recommendation (57-Y 43-N)
04/27/2022VOTE: Adoption (57-Y 43-N) (see vote tally)
04/27/2022G Governor's recommendation adopted
04/27/2022Reenrolled bill text (SB565ER2)
04/27/2022Signed by President as reenrolled
04/27/2022Signed by Speaker as reenrolled
04/27/2022Enacted, Chapter 728 (effective 7/1/22)
04/27/2022G Acts of Assembly Chapter text (CHAP0728)