SB 252 Virginia Senate · 2026 Regular Session

Renewable energy portfolio standard program; energy from geothermal heating/cooling systems, report.

Summary

Renewable energy portfolio standard program; geothermal heating and cooling systems; report. Requires, for purposes of the renewable energy portfolio standard program, Dominion Energy Virginia and American Electric Power to annually procure and retire certain percentages of renewable energy certificates from geothermal heating and cooling systems, as defined in the bill. The bill directs the State Corporation Commission to prepare and deliver a report evaluating the procurement and retirement of renewable energy certificates from geothermal heating and cooling systems in the Commonwealth on or before November 1, 2028. The bill also directs the Real Estate Appraiser Board to promulgate regulations requiring the development of a continuing education curriculum and required training for all licensees that includes how to properly determine the increase in value of real estate created by reductions in building energy costs associated with solar, geothermal, and solar water heating investments. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation and is identical to HB 1102.

Issues: ✓ Energy

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Passage

Mar 2026

House of Delegates Passage

Mar 2026

Signed into Law

Apr 2026

Introduced Jan 12, 2026 Signed Apr 13, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 5 edits · Mar 4, 2026

MODERATE

This bill transitions the Virginia renewable energy portfolio standard from an 'Engrossed' draft to an 'Enrolled' final version, incorporating Senate amendments. The primary substantive change involves the addition of a specific requirement for utilities to procure a minimum percentage of Renewable Energy Certificates (RECs) from geothermal heating and cooling systems starting in 2027, alongside existing mandates for solar, wind, and biomass. The bill also clarifies definitions for various energy terms and establishes a timeline for retiring coal and oil-fired power plants by 2045.

Scope change

The bill's scope remains focused on amending §§ 56-576 and 56-585.5 of the Code of Virginia to regulate renewable energy procurement, but it adds a new specific compliance category for geothermal systems within the utility sector.

REQUIREMENT

Added a mandatory requirement for Phase I and Phase II utilities to procure a minimum percentage of RECs from geothermal heating and cooling systems located in the Commonwealth, starting at 0.5% in 2027 and increasing to 1% by 2029.

TIMELINE

Established a definitive retirement schedule for coal and oil-fired generating units, requiring Phase I and Phase II utilities to retire all coal units by December 31, 2045, with exceptions for biomass co-firing and cooperative ownership.

DEFINITION

Added or refined definitions for key terms including 'Aggregator,' 'Community in which a majority of the population are people of color,' 'Electrification,' and 'Geothermal heating and cooling system' to clarify regulatory boundaries.

REPORTING

Created a new mandate for the State Corporation Commission to prepare and submit a report evaluating the procurement and retirement of RECs from geothermal heating and cooling systems by November 1, 2028.

ELIGIBILITY

Clarified eligibility criteria for 'RPS eligible sources' and specified that RECs from geothermal heating and cooling systems are now explicitly included in the renewable energy portfolio standard program.

Introduced → Engrossed · 10 edits · Mar 4, 2026

MAJOR

This bill significantly expands Virginia's renewable energy goals, mandating that Phase II utilities procure geothermal heating and cooling systems and accelerating the phase-out of coal and oil power plants. It establishes specific procurement targets for solar, wind, and energy storage, while creating exemptions for large industrial customers and requiring the State Corporation Commission to report on geothermal progress.

Scope change

The bill expands the scope of the Renewable Energy Portfolio Standard (RPS) program to include geothermal heating and cooling systems as a required compliance source for Phase II utilities, while maintaining existing requirements for Phase I utilities. It also clarifies eligibility for large industrial customers to opt out of certain renewable energy costs.

REQUIREMENT

Phase II utilities must now procure a minimum percentage of RECs from geothermal heating and cooling systems starting in 2027 (0.5%), increasing to 1% by 2029.

New definitions were added for 'geothermal heating and cooling system' and 'geothermal electric generating resource' to clarify what qualifies under the new requirements.

Utilities are now required to petition the Commission for approval to construct or acquire specific amounts of solar, wind, and energy storage capacity by set deadlines (e.g., 400 MW of storage for Phase I utilities by 2035).

New requirements were added for utilities to conduct annual requests for proposals for solar and wind resources and to submit annual plans for new generation capacity.

Utilities must now procure a portion of their solar and wind capacity from non-utility owners (at least 35% for certain phases) to encourage private sector participation.

New provisions require utilities to procure equipment for renewable projects from Virginia or US-based manufacturers if reasonably available.

The Real Estate Appraiser Board is required to develop training on how to value real estate based on energy cost savings from solar and geothermal investments.

TIMELINE

The schedule for retiring coal and oil-fired power plants was updated, with specific deadlines set for the retirement of oil units over 500 megawatts by 2024 and all other carbon-emitting units by 2045.

ENFORCEMENT

A new report requirement was added, mandating the State Corporation Commission to submit a report on geothermal REC procurement by November 1, 2028.

ELIGIBILITY

Exemptions were clarified for 'accelerated renewable energy buyers' (large commercial/industrial customers) regarding non-bypassable RPS compliance costs, particularly for offshore wind and energy storage.

Floor votes · Senate Feb 11, 2026 · House of Delegates Feb 27, 2026

How they voted

39–0

Passed

Total votes 39

Feb 11, 2026

D Democratic20

20 Yea

100% Yea

R Republican19

19 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 13, 2026

Signed into law

Approved by Governor-Chapter 734 (effective 7/1/2026)

executive

Mar 4, 2026

Upper · Passed

Signed by President

upper

Mar 4, 2026

Lower · Passed

Signed by Speaker

lower

Mar 4, 2026

Upper · Passed

Bill text as passed Senate and House (SB252ER)

upper

Feb 27, 2026

Lower · Passed

Passed House (67-Y 29-N 0-A)

lower

Feb 24, 2026

Lower · Passed

Reported from Labor and Commerce (16-Y 5-N)

lower

Feb 18, 2026

Committee

Referred to Committee on Labor and Commerce

lower

Feb 13, 2026

Upper · Passed

Read third time and passed Senate (25-Y 14-N 0-A)

upper

Feb 12, 2026

Introduced

Engrossed by Senate as amended (Voice Vote)

upper

Feb 12, 2026

Upper · Passed

Commerce and Labor Amendments agreed to

upper

Feb 11, 2026

Upper · Passed

Passed by for the day Block Vote (Voice Vote)

upper

Feb 9, 2026

Upper · Passed

Reported from Commerce and Labor with amendments (9-Y 5-N)

upper

Feb 9, 2026

Upper · Passed

Senate committee amendments offered

upper

Jan 12, 2026

Committee

Referred to Committee on Commerce and Labor

upper

1 primary · 0 co-sponsors