WHAT'S NEW:

No recent state activity has been identified.

AIR EMISSIONS REGULATIONS:

Air Quality Status	For the 8-hour ozone standard there are 9 areas in moderate nonattainment. The same 9 areas are in nonattainment for PM 2.5. EPA's Nonattainment Areas
Major Source Threshold	PTE 250 tons (100 tons for listed sources) of any criteria pollutant triggers PSD in attainment areas; 100 tons triggers NSR in nonattainment areas.
Minor Source Permitting Exemption	Size and fuel based
Minor Source Treatment	BACT for criteria pollutants and opacity
Emergency Generating Limits	Based on size and fuel type with a limit of 500 hours

 

DE MINIMIS EXEMPTIONS

The following are exempt from obtaining permits:

Internal combustion engines used for standby service, including compressors and pumps used for emergency replacement and portable generators as follows:
· Engines burning diesel fuel (maximum 0.5% sulfur) with 259,000 Btu/hr or less
· Engines burning gasoline with 18,200 Btu/hr input or less

External combustion sources listed below are exempt from permitting:
· Burning natural gas with a heat input level less than 10 MMBtu/hr
· Using distillate oil (maximum 0.5% sulfur) with a heat input of less than 1MMBtu/hr

Emission units with uncontrolled emissions of less than 5 tons per year of NOx, SO2, or PM10 are also exempt from obtaining permits. Further information on insignificant activities can be found here, http://www.deq.state.va.us/export/sites/default/air/pdf/airregs/804.pdf.

MINOR SOURCE PERMITTING

State BACT is required for all minor sources and all criteria pollutants. The state does not have a cost threshold established, but a source can take operating or fuel limits to avoid controls. There is an opacity limit of 20%, except for one six-minute period within any hour of not more than 30% opacity.

One needs to contact the DEQ regional office, complete a Form 7 application and show that local zoning requirements are satisfied. There is no public comment period unless the source is taking a synthetic minor limit to remain a minor source, in which case the comment period is 30 days. The whole permitting process takes approximately 180 days for a synthetic minor source and about 120 days for all other minor sources. See the following for more information about permitting timeframes, http://www.deq.state.va.us/air/permitting/xt-air.html.

Types of air permits and their associated fees are listed here, http://www.deq.state.va.us/air/permitting/xairperm.html002E

MAJOR NSR/PSD PERMITTING

A potential to emit 250 tons (100 tons for listed sources) of any criteria pollutant triggers PSD in attainment areas. In the nonattainment areas classified as moderate 100 tons of NOx or VOCs triggers NSR.

EGU Major Source NOx Requirements:

· 2.5 ppm or less for natural gas
· 6 ppm or less for distillate oil

Air permitting staff contacts can be found at http://www.deq.state.va.us/air/permitting/xpermstaff.html

TREATMENT OF EMERGENCY ENGINES

Engines and turbines used for emergency purposes only and which do not exceed 500 hours of operation per year at a single stationary source are exempt from permitting if they meet the following requirements:

• Diesel engines have an aggregate brake horsepower of less than 1,675 horsepower (1125 kilowatts).
• Gasoline engines have an aggregate brake horsepower of less than 910 horsepower (611 kilowatts ). 

Emergency units can operate only during interruption of power from the utility or during brief maintenance and testing exercises. The unit must document operation and notify the state in order to qualify for this exemption. Also, emergency generators in the Northern Virginia Region may be required to obtain a permit since this area is a nonattainment region. Emergency generators in this Region are evaluated based on a pte of 8760 hours per year operation. If the pte is greater than 25 tpy of NOx a permit is required and a RACT evaluation is conducted.

“Non-emergency generators” are units used for peak shaving, distributed generation, or for generating electricity for any reason other than emergency use explained above. A non-emergency generator has a pte based on 8,760 hours and thus will likely require a permit regardless of size.

See the following webpage for more information about emergency and non-emergency generator requirements, http://www.deq.state.va.us/air/permitting/egrequirements.html.

SITING REQUIREMENTS FOR NON-UTILITY GENERATORS:

In the state of Virginia, the State Corporation Commission regulates the siting of electrical generation facilities over 50 MW. However, the Commission specifically exempts distributed generation from these requirements.

AUTHORITY TO CONSTRUCT AND OPERATE AN ELECTRIC GENERATING FACILITY

20VAC5-302-10. Applicability and scope.

Any application, except as noted herein, filed by a person planning to construct electric generating facilities and incidental or associated facilities in the Commonwealth of Virginia and who must apply for approval from the State Corporation Commission ("commission"), pursuant to §§56-46.1, and 56-580 D of the Code of Virginia must comply with the provisions of this chapter. Distributed generation facilities as they may be defined by the commission and net energy metering facilities as defined in §56-594 of the Code of Virginia are not subject to this chapter. Applications filed pursuant to this chapter must set forth the nature of the proposed facility, the applicant's technical and financial fitness to construct, operate and maintain the proposed facility, the effects of the facility on the environment and economic development, the effects of the facility upon reliability of electric service provided by any regulated public utility, and why construction and operation of the proposed facility is not contrary to the public interest. The filing of confidential information will be treated in accordance with 20VAC5-20-170 of the Commission's Rules of Practice and Procedure (5VAC5-20-10 et seq.). Statutory Authority

BUILDING, ZONING AND FIRE CODES:

Building Codes: Virginia enforces the 2006 Virginia Uniform Statewide Building Code, which references the 2006 IBC with some amendments. Local jurisdictions may not make amendments.

• State Building Codes and Regulations

Energy Codes : Virginia enforces the 2006 Virginia Uniform Statewide Building Code, which references the 2006 IECC with some amendments. Local jurisdictions may not make amendments.

• Division of Energy

Fire Codes: Virginia enforces the 2006 Virginia Statewide Fire Prevention Code, which references the 2006 IFC with some amendments. Local jurisdictions may not make amendments

• Department of Fire Programs
• State Fire Marshal’s Office

Zoning: Zoning and planning happens at the local level. Check with each jurisdiction regarding their zoning codes.

Resources (information may not be as current as provided above)

A general overview of each state’s enacted codes can be found HERE.

The International Code Council Adoption page gives state-by-state adoption status of specific ICC codes, as well as information about code adoption by some municipal governments within that state.

Information about energy codes can be found at the DOE’s Building Codes for Energy Efficiency page or at the Building Codes Assistance Project.

INTERCONNECTION REQUIREMENTS:

Current standards under the Virginia State Corporation Commission (SCC) only apply to systems that are net-metered. The SCC is currently working on developing interconnection standards for DG systems that are not net metered.

In May 2000, the Virginia Corporation Commission (VCC) issued an order establishing interconnection requirements for net metering customers with residential generators less than 10 kW or nonresidential generators less than 500 kW that use solar, wind, or hydro energy. These standards were enacted with Va. Code § 56-578 and then later with 20 VAC 5-315-40. On August 8, 2006, the VCC (Case #PUE-2006-00064) rejected using federal (EPAct 2005) interconnection rules, and said it will (continue to) develop its own statewide standards.

Virginia expanded net metering with the passage of HB 1541 in April 2006. All renewable energy systems that generate electricity are now allowed to net meter. Renewable energy is defined in the state as "energy derived from sunlight, wind, falling water, sustainable biomass, energy from waste, wave motion, tides, and geothermal power." The new legislation also allows net metering for customers who contract with other entities to own or operate net-metered systems. Previously, systems had to be located on a customer's property. Virginia residential customers with systems up to 10 kW and nonresidential customers with systems up to 500 kW are allowed to net meter.

Net-metering is available on a first-come, first-serve basis until the cumulative capacity reaches 1% of each electric distribution company’s previous year peak load.

A utility may require a manual, external disconnect switch be installed. Generators that meet National Electrical Code (NEC), Institute of Electrical and Electronic Engineers (IEEE) Standard 1547 (July 2003), and Underwriters Laboratories (UL) safety codes do not need additional safety equipment. Systems with up to 10 kW rated capacity must have a minimum of $100,000 liability insurance; systems with greater than 10 kW must have at least $300,000.

For more information contact your electric distribution utility or the Virginia SCC.

Virginia State Corporation Commission

Division of Economics and Finance
PO Box 1197
Richmond, VA 23218

Tommy Oliver
Phone: (804) 371-9358
Fax: (804) 371-9935
E-Mail:tommy.oliver@scc.virginia.gov

EXIT FEES:

There are exit fees for DG in the state of Virginia. SB 1416, passed in 2007 governs exit fees and other utility policies.

§ 56-584 Stranded Costs:

Just and reasonable net stranded costs, to the extent that they exceed zero value in total for the incumbent electric utility, shall be recoverable by each incumbent electric utility provided each incumbent electric utility shall only recover its just and reasonable net stranded costs through either capped rates as provided in § 56-583. To the extent not preempted by federal law, the establishment by the Commission of wires charges for any distribution cooperative shall be conditioned upon such cooperative entering into binding commitments by which it will pay to any power supply cooperative of which such distribution cooperative is or was a member, as compensation for such power supply cooperative's stranded costs, all or part of the proceeds of such wires charges, as determined by the Commission.

UTILITY STANDBY RATES:

For DG units seeking standby service, “Schedule 8: Supplementary, Maintenance, Standby Service For Customers with Power Plants” applies.

Schedule 8: Supplementary, Maintenance, Standby Service for Customers with Power Plants
Load Size	Primary voltage	Transmission voltage
Basic Charge	$127.60
Metering Service	n/a
Supplementary, Maintenance and Standby Service	Distribution Charge <= 5000 kW: $1.00 > 5000 kW: $0.755 rKVA Demand: $0.15 Electricity Supply Adjustment Demand Charge: 1 st 5000 kW Demand: $0.421/kW Additional kW Demand: $0.318/kW Electricity Demand Charge : $12.0003/kW Energy Charge: On-peak: $0.00404/kWh Off-peak kWh: $0.00272 Standby Service Demand Charge Contract Hours: Applicable Rate ($/kW) 175 : $0.58 350 : $1.10 525 : $1.76 700 : $2.35 Maintenance Service Charge On-peak: 2.071 cents/kWh Off-peak: 1.938 cents/kWh Standby Service Energy Charge On-peak: 1.260 cents/kWh Off-peak: 0.651 cents/kWh	Electricity Demand Charge : 11.715/kW Standby Generator Rates (see Schedule SG) The customer must pay $95.00/month for metering costs Payment to the customer: Nov-April $1.28/kW May-Oct $2.56/kW
Power Purchases from CHP and Small Power Production Facilities	Requirements Qualifying facilities (QF's) must have a design capacity of 100 kW or less Purchase payments to the QF are: Beginning June 1, 2007 will be determined by PJM. See rate schedule 19 for details, http://www.dom.com/customer/pdf/va/sched19.pdf