Energy

Department of Energy; use of waste heat from data centers; findings and recommendations; work group; report. Directs the Department of Energy to lead efforts to accelerate the use of waste heat from data centers in the Commonwealth by making certain findings and recommendations and convening a work group to provide expertise, assistance, and feedback on the Department's efforts. The bill requires the Department to submit a report of its efforts, findings, legislative proposals, and recommendations no later than September 1, 2026.

Virginia Clean Energy Innovation Bank; established; report. Creates the Virginia Clean Energy Innovation Bank to finance clean energy projects, greenhouse gas emissions reduction projects, and other qualified projects through the strategic deployment of public funds in the form of grants, loans, credit enhancements, and other financing mechanisms. An advisory board consisting of nonlegislative citizen members and ex officio members shall oversee the Bank and provide recommendations related to the Bank and its effectiveness. The bill contains provisions for (i) the powers and duties of the Bank, (ii) lending practices, (iii) a strategic plan, (iv) an investment strategy, (v) public outreach requirements, (vi) audits, and (vii) reporting requirements. This bill is identical to SB 225.

Electric utilities; pilot programs for energy assistance and weatherization for certain individuals. Amends annual funding commitments for the purposes of the annual pilot program for energy assistance and weatherization for low-income, elderly, and disabled individuals conducted by Dominion Energy Virginia and Appalachian Power Company. Under the bill, Appalachian Power Company is required to continue its pilot program at no less than $1 million and no greater than $1.5 million annually. Dominion Energy Virginia is required to continue its pilot program at no less than $156 million and no greater than $204 million for the time period beginning July 1, 2026, and ending July 1, 2038. The bill extends the sunset date of such pilot programs from July 1, 2028, to July 1, 2038.The bill also provides that Dominion Energy Virginia may recover costs associated with certain electrical facilities that have been approved by the State Corporation Commission as of December 1, 2033, provided that certain requirements are met and notwithstanding any limitations on such cost recovery in current law. The bill directs Dominion Energy Virginia to propose to the Commission, in any proceeding to determine rates for generation and distribution services commencing after January 1, 2027, and before July 1, 2033, that certain costs related to capacity procurement requirements and distribution infrastructure investments are allocated to the utility's customer class approved to serve customers with a contracted or measured electric demand of 25 megawatts or greater and an anticipated or measured average annual electric load factor of 75 percent or greater. The bill provides that certain customers in manufacturing, industrial, or consumer goods warehousing and distribution activities other than data storage may elect to remain on their existing rate schedule. The bill requires Dominion Energy Virginia, in connection with its first proceeding to determine rates for generation and distribution services commencing after July 1, 2026, to include in its petition to the Commission a proposal to revise its tariff for supplementary, maintenance, or standby service for customers with power plants, effective as of January 1, 2028. The bill provides that the Commission shall only approve such proposal if it determines that such tariff will not adversely affect other retail customers or the utility in a manner contrary to the public interest, and any revised tariff terms shall include protections against stranded cost risks to the utility customer base. Additionally, the bill authorizes Dominion Energy Virginia to file a petition for the securitization of certain deferred fuel costs. The bill requires the Commission, in evaluating certain petitions, to require to the greatest extent it finds in the public interest the use of wages, salaries, benefits, and other remuneration to any mechanic, laborer, or worker employed, retained, or otherwise hired to perform services in connection with a contract contemplated pursuant to such petition at the prevailing wage rate and to the greatest extent practicable, the use of a skilled workforce through registered apprenticeship programs for any authorized demand flexibility programs, utility-related procurement through utility-owned or third-party providers, and an evaluation of other potential opportunities to develop Virginia's skilled workforce by requiring minimum apprenticeship program requirements for such electric generation or energy storage facility work. This bill incorporates HB 634.

Power Transformer Manufacturing Grant Fund. Establishes the Power Transformer Manufacturing Grant Fund to provide grant installment awards between July 1, 2026, and July 1, 2035, in an amount not to exceed $4.6 million per fiscal year and in an aggregate amount not to exceed $29.4 million, to a qualified company that (i) engages in the manufacture of power transformers, (ii) executes a memorandum of understanding with the Commonwealth, and (iii) is expected to make a capital investment of at least $457,157,000 and create and maintain at least 825 new full-time jobs. This bill is identical to HB 799.

Power Transformer Manufacturing Grant Fund. Establishes the Power Transformer Manufacturing Grant Fund to provide grant installment awards between July 1, 2026, and July 1, 2035, in an amount not to exceed $4.6 million per fiscal year and in an aggregate amount not to exceed $29.4 million, to a qualified company that (i) engages in the manufacture of power transformers, (ii) executes a memorandum of understanding with the Commonwealth, and (iii) is expected to make a capital investment of at least $457,157,000 and create and maintain at least 825 new full-time jobs. This bill is identical to SB 403.

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 SB 5.

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.

Electric utilities; high energy demand customers; demand flexibility programs; reports. Directs Dominion Energy and Appalachian Power to file a petition with the State Corporation Commission by January 15, 2027, for approval of voluntary demand flexibility programs that apply to high energy demand customers, as defined in the bill. The bill requires the Commission to consider all forms of demand flexibility and other specific factors in approving each such program. The bill directs each cooperative that serves one or more high energy demand customers to establish a voluntary demand flexibility program for such customers by January 1, 2029. Under the bill, Dominion Energy and Appalachian Power are required to file status reports on their demand flexibility programs with the Commission three years after initial program approval and every three years thereafter. Additionally, in 2028 and annually thereafter, the Commission is required to submit information summarizing the status and performance of such programs as part of an existing report. This bill is identical to SB 371.

Remediated Mine Gas Grant Program established; report. Directs the Department of Energy to establish the Remediated Mine Gas Grant Program to assist projects in the Commonwealth with capture and sequestration of remediated mine gas. The bill requires (i) the Department to award grants for the Program to taxpayers on a first-come, first-served basis, subject to appropriation by the General Assembly, and (ii) grant recipients to submit a report to the Department by October 1 of any year in which funds are made available for the Program. The bill also directs the Department to submit a report summarizing the information received from grant recipients to relevant committees of the General Assembly by January 1 after any year in which funds are made available for the Program.

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.