2026 SESSION

INTRODUCED

26101002D

HOUSE BILL NO. 1087

Offered January 14, 2026

Prefiled January 14, 2026

A BILL to amend the Code of Virginia by adding a section numbered 56-589.2, relating to electric utility customers; high energy use facilities; natural gas fuel cell generating resources.

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Patron—Webert

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Referred to Committee on Labor and Commerce

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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 56-589.2 as follows:

§ 56-589.2. High energy use facilities; natural gas fuel cell generating resources.

A. As used in this section:

"High energy use facility" means any customer of a Phase I or Phase II Utility that requires 30 megawatts or more of uninterrupted electric service and is located in an urban, suburban, exurban, or rural environment in the Commonwealth. "High energy use facility" includes any data center as defined in subdivision A 43 of § 58.1-3506.

"Phase I Utility" and "Phase II Utility" have the same meanings as provided in subdivision A 1 of § 56-585.1.

"Utility" means a Phase I Utility or Phase II Utility.

B. A high energy use facility that owns or operates a natural gas fuel cell generating resource to generate electric energy may enter into a contract to generate such electric energy on terms and conditions negotiated between the high energy use facility and its incumbent utility, provided that the natural gas fuel cell generating resource is located on the same real property upon which the high energy use facility is located. Such terms and conditions may include provisions related to (i) issuing utility bill credits equivalent to the value of such energy generation to the high energy use facility and (ii) the utility's purchase of excess power generated by the high energy use facility.

C. Nothing in this section shall be construed to (i) amend or affect a Phase I or Phase II Utility's renewable energy portfolio standard obligations under § 56-585.5, (ii) count toward the capacity limit for the net energy metering program under § 56-594, (iii) limit the right of a customer to self-generate electricity, or (iv) limit the ability of a licensed supplier of electricity to utilize a natural gas fuel cell generating resource to provide electric service to its customers.