The Virginia Clean Economy Act (the "VCEA") Senate Bill No. 851 and House Bill No. 1526 from the 2020 Regular Session of the Virginia General Assembly became law in the Commonwealth effective July 1, 2020. The VCEA requires the development of renewable energy generation resources, the development of energy storage resources, the submission of an annual plan to meet the development targets and institutes the mandatory Renewable Energy Portfolio Standard Program.

Va. Code § 56-585.5 C establishes the mandatory Renewable Energy Portfolio Standard Program under which Dominion Energy (the “Company”) must meet annual requirements for the sale of renewable energy based on a percentage of non-nuclear electric energy sold to retail customers in the Company's service territory. The mandatory Renewable Energy Portfolio Standard Program’s annual goals for the sale of renewable energy pertain to all retail customers in the Company’s service territory, other than those customers who are certified as Accelerated Renewable Energy Buyers (“ARBs”), pursuant to subsection G of the Code, regardless of whether such customers purchase electric supply service from the Company or from suppliers other than the Company.

The implementation of the mandatory Renewable Energy Portfolio Standard Program’s costs are divided among three separate riders. The following is a summary:

• Rider RPS (Renewable Portfolio Standard) is associated with the purchase of qualifying RECs to meet compliance targets
• Rider CE (Clean Energy) is associated with projects constructed and owned by the Company
• Rider PPA (Power Purchase Agreements) is associated with the acquisition of third-party PPAs.

The mandatory Renewable Energy Portfolio Standard Program requirements are a percentage of the total electric energy sold in the previous calendar year and are required to be implemented for a Phase II Utility, such as the Company, according to the schedule below:

For the complete rules on the mandatory Renewable Energy Portfolio Standard Program, the definition of eligible sources and other items pertaining to the generation of electricity from renewable and zero carbon sources, see the following link:

Va. Code § 56-585.5

As referenced, customers certifying as an ARB may be exempt from some or all of the mandatory Renewable Energy Portfolio Standard Program requirements/costs pursuant to the requirement of Va. Code § 56-585.5. An ARB is defined as a commercial or industrial customer (including Commonwealth, County, or Municipal customers with qualifying load), irrespective of the generation supplier, with an aggregate load over 25 MW in the prior calendar year, that enters into arrangements or contracts with the Company or a person other than the Company to obtain (i) RECs from eligible resources or (ii) Bundled Contracts.

• ARBs with certified contracts for RECs only could be exempt from all or a portion of the costs of RECs for the Renewable Energy Portfolio Standard (Rider RPS).
• ARBs with certified Bundled Contracts could be exempt from all or a portion of the costs associated with new solar or onshore wind, energy, or environmental attributes, and/or energy storage facilities (both Company owned and purchased through third-party power purchase agreements). (Rider CE, Rider PPA and Rider RPS).