Energy

Electric utilities; virtual power plant pilot program; Phase I Utilities. Requires Appalachian Power to petition the State Corporation Commission for approval to conduct a pilot program to evaluate methods to optimize demand through various technology applications, including the establishment of virtual power plants, by December 1, 2026. The bill requires the pilot program to evaluate electric grid capacity needs and the ability of such virtual power plants to provide grid services, including peak-shaving, during times of peak electric demand.

Air Pollution Control Board regulations; small renewable energy projects; anaerobic digestion technology; report. Provides that for the purposes of a permit by rule for a small renewable energy project under existing law, a small renewable energy project includes an electrical generation facility in a locality in Planning District 8 with a rated capacity not exceeding 100 megawatts that generates electricity from biomass, energy from waste, or municipal solid waste and its dedicated associated interconnection facilities, provided that such facility is capable of processing the majority of its organic waste, including food waste and municipal sludge, with anaerobic digestion technology by January 1, 2030. The bill directs the Department of Environmental Quality, in coordination with relevant stakeholders, to (i) assess all practicable technologies available to waste-to-energy facilities to reduce carbon dioxide and methane emissions, (ii) assess technologies to create biomethane, and (iii) recommend any legislative changes necessary to create market conditions to ensure the viability of such program. The bill also directs the Department to report its findings to the Air Pollution Control Board by December 1, 2026.

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 SB 443.

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.

Department of Energy; Virginia Solar Energy and Battery Energy Storage Systems Program and tax credit; solar energy and battery energy storage projects. Establishes the Virginia Solar Energy and Battery Energy Storage Systems Program, to be administered by the Department of Energy for the purpose of (i) coordinating and supporting the development of solar energy and short duration battery energy storage industries and projects by other public or private entities; (ii) evaluating and approving solar energy and short duration battery energy storage projects as qualified projects for the purposes of the tax credit established by the bill; and (iii) determining which items and services are considered eligible project costs for a given qualified project, as defined in the bill. The bill establishes requirements for what can be considered a qualified solar energy and battery energy storage project based on whether the use of such project is for a residential, commercial and industrial, or utility-scale project. The bill establishes a tax credit for the installation of such residential, commercial and industrial, or utility-scale solar energy and energy storage projects for taxable years beginning on and after January 1, 2027, but before January 1, 2032. Finally, the bill requires the Department to monitor allocation of the tax credit and publish quarterly transparency reports summarizing such information and to establish and maintain a public dashboard displaying certain information on the solar energy and short duration battery energy storage installations by January 1, 2027. The bill has a delayed effective date of January 1, 2027.

Electric utilities; licensed retail suppliers; notice period for return to service. Permits an individual nonresidential retail customer of electric energy of Appalachian Power or Dominion Energy Virginia whose noncoincident peak demand exceeded five megawatts during the most recent calendar year to purchase electric energy from a licensed supplier within the Commonwealth. Currently, such a customer may only purchase electric energy from a licensed supplier if the customer's peak demand did not exceed one percent of the incumbent electric utility's peak load during the most recent calendar year unless the customer had a noncoincident peak demand of more than 90 megawatts. The bill changes from five years to eighteen months the advance notice period required for such a customer to return to service by an incumbent electric utility. This bill is identical to SB 818.

Electric utilities; small portable solar generation devices; local regulation; installation by tenants; consumer protection. Prevents a locality from prohibiting the use of a small portable solar generation device, as defined in the bill, on a residential structure, provided that certain requirements are met. The bill includes provisions related to the installation of small portable solar generation devices by tenants and prevents landlords from prohibiting such installation in certain circumstances. Under the bill, small portable solar generation devices are excluded from the provisions of net metering programs applicable to eligible agricultural customer-generators, eligible customer-generators, or small agricultural generating facilities. The bill also permits any electric utility customer to own and operate a small portable solar generation device, provided that certain requirements are met. The bill prohibits an investor-owned utility, municipal utility, or electric cooperative from imposing interconnection requirements, charging any fee related to the device, or requiring that the customer obtain the utility's approval before installing or using the device. Under the bill, no electric utility, municipal utility, electric cooperative shall be liable for damage or injury caused by a small portable solar generation device. The bill directs the State Corporation Commission to develop and publish a notification form for a customer of an electric utility or cooperative to install a small portable solar generation device and directs the Secretary of Commerce and Trade to convene a work group to evaluate and develop recommendations regarding the safety standards and requirements applicable to small portable solar generation devices. Certain provisions of the bill become effective on January 1, 2027. This bill incorporates HB 289 and HB 928 and is identical to SB 250.

Clean energy and community flood preparedness; market-based trading program. Directs the Department of Environmental Quality and the State Air Pollution Control Board to establish and maintain a market-based trading program consistent with the Regional Greenhouse Gas Initiative program, as defined in existing law, to reduce carbon dioxide emissions from electricity generating units in the Commonwealth. This bill is identical to SB 802.

Virginia Clean Energy Research and Support Center; established. Establishes the Virginia Clean Energy Research and Support Center (the Center) as an interdisciplinary study, research, and informational resource for individuals and businesses in the Commonwealth. The Center is governed by a board of directors that includes representatives from several colleges and universities in the Commonwealth, the Department of Energy, the Department of Environmental Quality, and the Commission on Electric Utility Regulation. The board is directed to establish an advisory council to provide expertise and guidance related to the functions and duties of the Center. Functions and duties of the Center include providing technical assistance in matters related to energy technologies, siting, permitting, project design, interconnection, electric infrastructure, electric utilities, ratepayer proceedings, and environmental impacts of energy projects. Under the bill, the Center shall conduct an annual evaluation and collaborate with state agencies and institutions of higher education to provide technical assistance, research, or support in matters related to siting and permitting, programs to improve electric grid reliability, energy programs established at a participating institution of higher education, and administration and implementation of the Virginia Energy Plan. The bill also requires the Center to submit an annual report to the Commission on Electric Utility Regulation summarizing its research activities and any funding received by the Center by November 1 of each year.This bill is a recommendation of the Commission on Electric Utility Regulation.

Tax credit; solar energy equipment. Establishes a nonrefundable income tax credit for taxable years 2026 through 2030 for individuals who incur allowable expenses, as defined in the bill, for the purchase and installation of solar energy equipment, also defined in the bill. An individual who properly claims this credit shall be allowed a credit in the amount of 15 percent of the cost of such equipment and allowable expenses, up to $1,000. The aggregate amount of credits allowable under the provisions of the bill shall not exceed $5 million per taxable year.