Energy

Solar Interconnection Grant Fund and Program established; report; sunset. Establishes the Solar Interconnection Grant Program for the purpose of awarding grants on a competitive basis to public bodies to offset costs associated with the interconnection of solar facilities to the grid. The Program is administered by the Division of Renewable Energy and Energy Efficiency of the Department of Energy. The bill requires that priority be given to solar facilities located on previously developed project sites and requires the Division to establish and publish guidelines and criteria for the awarding of grants and general requirements of the Program. The bill has an expiration date of July 1, 2027, and, as introduced, was a recommendation of the Commission on Electric Utility Regulation. This bill is identical to SB 659.

Phase I and Phase II Utilities; energy efficiency upgrades; low-income residents; report. States that it is the policy of the Commonwealth to reduce, wherever feasible and cost-effective, heating-related costs of living for low-income residents. The bill requires Dominion Energy Virginia and Appalachian Power to make best, reasonable efforts to provide by December 31, 2031, prescriptive efficiency measures, as defined in the bill, and related efficiency improvements to at least 30 percent of the qualifying households, as defined in the bill, identified by such utilities, provided that the State Corporation Commission determines that such measures and improvements are in the public interest. The bill requires such utilities to report to the Commission its activities, plans, and filings regarding the bill's provisions no later than January 1, 2028, annually thereafter, and in any recurring filing that the Commission deems appropriate. The bill also requires that Dominion Energy and Appalachian Power make reasonable efforts to incorporate recommendations or feedback provided by the task force that evaluates barriers to access and enrollment in programs for income-qualified energy customers. This bill is identical to HB 2.

Department of Housing and Community Development; Income-Qualified Energy Efficiency and Weatherization Task Force established; report. Directs the Department of Housing and Community Development to establish, in collaboration with the Department of Energy, and with assistance from the Department of Social Services, the Income-Qualified Energy Efficiency and Weatherization Task Force to determine barriers to access and enrollment in the current energy efficiency programs for income-qualified energy customers and to evaluate and develop a plan to address any necessary improvements regarding coordination among state and federal government agencies for utility services and resources to more effectively deliver energy-efficient housing, weatherization resources, and energy efficiency upgrades for income-qualified individuals and households in the Commonwealth. The bill requires the Task Force to meet at least six times between July 1, 2026, and September 30, 2027, and to submit a report of its findings and recommendations no later than September 30, 2027. The bill specifies that such report shall include policy recommendations and a plan to ensure that weatherization-ready repairs and whole-home energy efficiency retrofits are provided to all eligible income-qualified individuals and households in the Commonwealth residing in multifamily buildings, single-family dwellings, and manufactured homes by December 31, 2034. This bill is identical to HB 3.

Land development; solar canopies in parking areas. Provides that any locality may include in its land development ordinances a provision that requires that an applicant must install a solar canopy over designated surface parking areas. Such provisions shall apply only to nonresidential parking areas with 100 or more new off-street contiguous parking spaces and may require coverage of up to 50 percent of the surface parking area. The bill provides that an ordinance adopted pursuant to this bill shall be subject to various additional requirements and shall allow for deviations, in whole or in part, from the requirements of the ordinance when its strict application would prevent the development of uses and densities otherwise allowed by the locality's zoning or development ordinance or when a property owner shows that the solar canopy, if installed as otherwise required under the ordinance, will generate less than 75 percent of the electricity that would be expected, given the nameplate capacity of the solar modules installed on such canopy, if the canopy were to be installed at another location in the locality without surrounding impediments to insolation such as buildings or shading vegetation. Finally, the bill provides that the applicant or owner may use the electric energy generated from such solar canopy to offset the consumption of the parking lot or adjoining building served under the same account. The bill has a delayed effective date of July 1, 2027. This bill is identical to HB 1234.

Siting of battery energy storage projects; commercial solar photovoltaic generation facilities; permitted accessory use. Deems battery energy storage projects as a permitted accessory use in all zoning districts on any parcel of land that is subject to an approved special exception, as defined in the bill, for a commercial solar photovoltaic generation facility, if such battery energy storage project is located within the boundaries of the parcel covered by the existing special exception and complies with any applicable federal, state, and local safety or fire codes and environmental regulations. The bill prohibits a host locality from requiring a special exception or any other local land use approval on such battery energy storage project. The bill clarifies that nothing in the provisions of the bill shall be construed to (i) limit the authority of a host locality to enforce compliance with applicable codes or ensure the safe operation of the battery energy storage project or (ii) preclude the developer of a battery energy storage project from negotiating a siting agreement with the host locality. The bill also clarifies that any battery energy storage project for which an initial interconnection request has been filed with an electric utility or a regional transmission organization prior to July 1, 2030, and is constructed in accordance with the provisions of the bill shall be subject to the applicable local ordinance and regulation in effect on July 1, 2026. This bill is identical to HB 891.

Distributed Energy Resources Task Force established; reports; sunset. Establishes the Distributed Energy Resources Task Force as an advisory commission within the executive branch with the purpose of developing a comprehensive strategy to advance the Commonwealth's transition toward integrated distributed energy resource markets and to support the Commonwealth's compliance with certain regulations. The bill describes the membership, powers, and duties of the Task Force and requires the Task Force to submit various reports to the Governor, the State Corporation Commission, the Federal Energy Regulatory Commission, and the Chairs of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor. The bill sunsets on July 1, 2027. This bill is identical to HB 285.

Permit requirements for data centers; emission limits for certain engine-generator sets. Prohibits the Department of Environmental Quality from issuing an air permit for any application submitted for a data center on or after July 1, 2026, unless the emission limit for each engine-generator, defined in the bill, established by such permit is equal to or less than the emissions achieved by a Tier 4 equivalent engine-generator.

Transportation electrification; integrated resource planning; fast-charging stations; cost recovery by electric utilities. Permits Dominion Energy and Appalachian Power Company to file a proposed tariff with the State Corporation Commission (the Commission) to provide utility owned and operated electrical distribution infrastructure to support electric vehicle charging stations. The bill requires Dominion Energy and Appalachian Power Company to file transportation electrification plans with the Commission by February 1, 2028, and every three years thereafter, and includes requirements for information to include in such plans. Under the bill, Dominion Energy and Appalachian Power Company are required to seek recovery of necessary and appropriate expenditures for transportation electrification only through their rates for generation and distribution services.The bill prohibits Dominion Energy and Appalachian Power Company from petitioning for approval of expenditures to own and operate electric vehicle fast-charging stations unless such stations are located at or beyond a radial distance as determined by the Commission relative to the location of any privately owned fast charging station. The bill also directs the Commission to initiate a rulemaking proceeding to determine the appropriate radial distance for such utility-owned fast-charging stations from privately-owned fast charging stations, to enter its final rule in such proceeding no later than December 31, 2027, and to review such final rule by December 31, 2029. Provisions of the bill restricting the radial distance of utility owned and operated fast-charging stations expire on July 1, 2031. This bill is identical to HB 1225.

Qualifying localities; underground electric distribution and transmission improvements; levy on utility customers by ordinance. Authorizes a qualifying locality, defined in the bill, to enter into an agreement with an electric utility to place new or proposed underground electric distribution or transmission lines and facilities or to relocate or convert existing overhead electric distribution or transmission lines and facilities underground. The bill requires any such agreement to provide that the locality pay to the utility its full additional costs of placing new or proposed electric distribution or transmission lines in the qualifying locality or relocating and converting that portion of a line located in the county underground rather than overhead, minus the net of relocation credits.The bill also provides that the qualifying locality may impose an additional levy on electric utility customers, which (i) shall not exceed $1 per month on residential customers; (ii) shall not exceed $10 per month on nonresidential customers; (iii) may be fixed at any amount on nonresidential customers that are major commercial energy consumers, defined in the bill; and (iv) shall be collected by the utility on behalf of the locality.

Solar energy facilities; prevailing wage and apprenticeship requirements; report; civil penalties. Requires each solar developer, including its contractors and subcontractors, to ensure payment at the prevailing wage rate set by the Department of Labor and Industry for any mechanic, laborer, or worker employed, retained, or otherwise hired to perform construction, maintenance, or repair work for certain electricity generating sources. The bill requires each solar developer to (i) ensure that a percentage of the total labor hours of such work is performed by qualified apprentices and (ii) employ at least one qualified apprentice if four or more individuals are employed to perform such work. Under the bill, a solar developer that fails to meet the requirements of its provisions is required to make penalty payments to the Commissioner of Labor and Industry.