Energy

Electric utilities; surplus interconnection service sites. Directs Appalachian Power and Dominion Energy Virginia to undertake a comprehensive assessment of available interconnection capacity at each such utility's existing and planned intermittent electric generation facilities located in the Commonwealth. The bill directs such utilities to establish pilot programs for energy storage resources and solar generation facilities that utilize surplus interconnection service, as defined in the bill, including a request for proposals. The bill requires such utilities to submit the results of such requests for proposals as part of their 2027 plans and petitions for approval for the development of new solar and onshore wind generation capacity, which plans are required under existing law. This bill is identical to HB 1065.

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.

Electric utilities; pilot program for electric energy conservation, generation, and storage. Requires American Electric Power and Dominion Energy Virginia to each petition the State Corporation Commission by December 31, 2026, to conduct a pilot program for electric energy conservation, solar energy generation, and energy storage resources for low-income, elderly, and disabled individuals. The bill directs the Commission to convene a technical conference to evaluate the creation of an energy efficiency program meeting certain requirements by November 1, 2026. Under the bill, if the Commission determines that such a program is feasible for implementation by American Electric Power and Dominion Energy Virginia, the Commission shall require such utilities to petition for approval by May 1, 2027, to implement such programs. The bill has an expiration date of July 1, 2034. This bill is identical to SB 327.

Electric utilities; RPS requirements; Air Pollution Control Board; regulations. Delays for 20 years the timeline by which Appalachian Power and Dominion Energy Virginia are required to produce 100 percent of their electric energy from 100 percent renewable resources. Under the bill, the annual percentage requirements are paused after the 2023 compliance year and do not resume until 2044. The bill provides that Appalachian Power and Dominion Energy Virginia are required to meet the 100 percent requirement by 2070 and 2065, respectively. Additionally, the bill provides that the Air Pollution Control Board is required to adopt regulations for the period of 2051 to 2070 to reduce carbon emissions from electric power generating facilities. Under current law, the Board is required to adopt regulations to reduce emissions for the period of 2031 through 2050.

Electric utilities; licensed retail suppliers; renewable portfolio standard requirements. Permits an individual retail customer of electric energy from Appalachian Power or Dominion Energy Virginia whose noncoincident peak demand exceeded five megawatts during 2024 or any year thereafter 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 requires a licensed supplier providing electric energy to such a customer to meet the annual renewable portfolio standard program requirements on an aggregate basis for all electric energy sold within the incumbent electric utility's service territory during a compliance year.

Electric utilities; shared solar programs; Phase II Utility. Amends certain provisions related to the shared solar program established by the State Corporation Commission for Dominion Energy Virginia. Under the bill, Dominion Energy Virginia is authorized to release an additional 525 megawatts of capacity as part two of such program upon the earlier of (i) a determination that at least 90 percent of the aggregate program capacity has been subscribed and project construction is substantially complete or (ii) July 1, 2026. The bill directs Dominion Energy Virginia to petition the Commission to initiate a proceeding to determine the capacity for part three of such program on or before part two of such program is substantially complete for 268 megawatts of capacity. The bill directs the Commission to evaluate the costs and benefits of the shared solar program under such proceeding and to consider the results of such proceeding in determining any future allocations of shared solar capacity and changes in program design. The bill directs the Commission to update its regulations on shared solar programs to comply with the provisions of the bill by December 31, 2026, and to require each participating utility to file any tariffs, agreements, or forms necessary for implementation of such programs by March 1, 2027. This bill is identical to HB 807.

Pilot program for underground transmission lines; qualifying projects; levy; report. Authorizes the State Corporation Commission, in reviewing any application submitted by a public utility for a certificate of public convenience and necessity for the construction of an electrical transmission line of 500 kilovolts filed between January 1, 2025, and July 1, 2033, to approve up to four applications for qualifying projects to be constructed in whole or in part underground as part of the pilot program for underground transmission lines and to provide an expedited review of any such application. The bill removes certain provisions related to the existing pilot program. Under the bill, a project shall be qualified if (i) the Commission finds that an engineering analysis demonstrates that it is technically feasible to place the proposed line in whole or in part underground, (ii) the application contains certain information regarding projections of project costs, (iii) the application contains evidence that the governing body of each locality in which at least a portion of the proposed line will be placed underground supports the project's inclusion in the program and agrees to meet its related funding obligations, and (iv) the Commission finds the overall cost of the project reasonable and consistent with the public interest. The bill permits the Commission to deny an application for a project that otherwise meets the criteria to qualify, provided that the Commission publicly shares its rationale for doing so.The bill requires at least 50 percent of the marginal costs, as defined in the bill, of the portion of a qualifying project chosen to be placed underground within a locality pursuant to its provisions to be paid by such locality. The bill permits such a locality to meet such requirement through imposing a levy on electric utility customers within the locality, issuing a general obligation bond subject to a referendum, or allocating its own funds. The bill extends the Commission's final report deadline for the pilot program from December 1, 2024, to December 1, 2034.

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 SB 252.

Extreme Weather Taxpayer Protection Program and Fund established. Establishes the Extreme Weather Taxpayer Protection Program and Fund, administered by the Department of Conservation and Recreation, for the purpose of holding parties responsible for covered greenhouse gas emissions between the covered period of January 1, 1995, and December 31, 2025, for the parties' share of the Commonwealth's costs due to climate change. The bill defines responsible parties as fossil fuel extractors or crude oil refiners causing emissions of one billion metric tons or more of covered greenhouse gases during the covered period. Under the bill, responsible parties are strictly liable for cost recovery payments to the Commonwealth. The bill requires the State Treasurer to conduct an assessment of the costs to the Commonwealth and its residents of the emissions of covered greenhouse gases during the covered period. The bill establishes the Extreme Weather Relief Fund into which the cost recovery payments from responsible entities are deposited and used to pay for extreme weather relief projects, as defined in the bill.

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.