Energy

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.

State Corporation Commission; time frame for completion of certain proceedings. Requires the State Corporation Commission to complete proceedings involving an application for a certificate, permit, or approval required for the construction or operation by a public utility of certain transmission lines within nine months following such application, as required by current law for small renewable energy projects. The bill permits the Commission to enlarge such nine-month period for up to 120 days for applications regarding certain transmission lines. This bill is identical to SB 310.

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.

Electric utilities; small portable solar generation devices; local regulation; Residential Landlord and Tenant Act. Permits any electric utility customer to own and operate a small portable solar generation device, defined in the bill as a nationally certified, plug-in solar photovoltaic device with a maximum power output of no more than 1,200 watts that is not designed to be interconnected with the electric grid and is intended primarily to offset part of the customer's electricity consumption, provided that such customer has submitted notice to its incumbent investor-owned utility, municipal utility, or electric cooperative. 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 or electric cooperative shall be liable for damage or injury caused by a small portable solar generation device. The bill also restricts (i) localities from prohibiting the use of a small portable solar generation device on a residential structure, provided that certain requirements are met, and (ii) landlords owning more than four rental dwelling units from prohibiting a tenant from installing a small portable solar generation device on the exterior of the tenant's premises, provided that reasonable restrictions may be established concerning size, manner, and placement.

Uniform Statewide Building Code; amendments; energy efficiency and conservation. Requires the Board of Housing and Community Development to adopt amendments to the Uniform Statewide Building Code within 18 months of publication of a new version of the International Code Council's International Energy Conservation Code (IECC) to incorporate the latest IECC standards related to energy efficiency and conservation. The bill requires the Board to adopt Building Code standards that are at least as stringent as those contained in the new version of the IECC.

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.

Retail sales and use tax; exemption for data centers. Requires a data center operator, in order to be eligible for the existing data center sales and use tax exemption, to (i) beginning July 1, 2027, not use co-located generating facilities that emit carbon dioxide, other than backup generators; (ii) beginning July 1, 2029, contract for a certain percentage of energy, capacity, and renewable energy certificates from clean energy resources, as evidenced by a certification from the State Corporation Commission, or contracts and service agreements; (iii) utilize only non-carbon dioxide-emitting backup power sources, such as energy storage resources, beginning on a date dependent on the data center's initial service date; and (iv) demonstrate, for any new data center issued a final certificate of occupancy or its equivalent on or after January 1, 2030, or for any data center operator seeking an amended memorandum of understanding, sufficient investment in environmental management and energy efficiency measures to provide system-wide benefits, as defined in the bill. Finally, the bill has a delayed effective date of July 1, 2027.

Electric utilities; renewable energy portfolio standard; zero-carbon electricity; accelerated clean energy buyers. Revises the conditions under which accelerated clean energy buyers, defined in existing law as accelerated renewable energy buyers, may contract with Appalachian Power or Dominion Energy Virginia to obtain renewable energy certificates (RECs). The bill exempts an accelerated clean energy buyer obtaining capacity, energy, or RECs from qualifying resources or facilities from the assignment of non-bypassable costs associated with compliance with the renewable portfolio standard program based on the amount and type of renewable energy certificates obtained in proportion to such accelerated clean energy buyer's total electric energy consumption. This bill incorporates SB 470. This bill is identical to HB 369.

Regulation of contractors; solar installation companies; sale, lease, or power purchase of solar energy systems; civil penalty. Authorizes the Board for Contractors (the Board) to require specific contract provisions and disclosures relating to the sale, lease, or power purchase agreement for a residential solar energy system, as defined in the bill. The bill requires a sale, lease, or power purchase agreement for a residential solar energy system to have a written contract that includes specific provisions related to the solar installation company, system design and performance or production guarantees, and information related to invoices and payments. The bill includes several mandatory disclosures to be included with a sale, lease, or power purchase agreement for a residential solar energy system. Under the bill, a willful violation of such requirements shall be subject to a civil penalty of no more than $2,500 per violation. The bill also directs the Board to adopt regulations and update existing regulations to implement the provisions of the bill by January 1, 2027. The remaining provisions of the bill have a delayed effective date of January 1, 2027. This bill is identical to HB 1439.

Electric utilities; shared solar programs; Phase I Utility. Amends certain provisions related to the shared solar program established by the State Corporation Commission for Appalachian Power Company. The bill permits excess bill credits to be distributed to shared solar subscribers more than once annually. The bill also requires the utility in administering its shared solar program to require net crediting functionality for customer utility bills, as described in the bill. The bill also directs Appalachian Power to (i) release an additional 50 megawatts as part two of the shared solar program on July 1, 2026; (ii) release a further additional 50 megawatts as part three of the shared solar program by January 1, 2028; and (iii) petition the Commission to initiate a shared solar expansion proceeding to determine the capacity for part four of the shared solar program by May 1, 2029. See final enactments for bill effective date. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation. This bill is identical to HB 809.