Minimum energy and water conservation standards; heating, ventilation, and air conditioning facilities and home appliances; Department of Energy; prohibited practices; penalty. Provides that if any product or product categories under the federal Energy Policy and Conservation Act of 1975 (the EPCA) are removed by the U.S. Secretary of Energy or the federal government, the Department of Energy shall adopt energy or water conservation standards that shall be equivalent to the last applicable federal standards with a product compliance date of on or before December 31, 2025. The bill prohibits any such new products from being sold, offered for sale, leased, or rented in the Commonwealth unless such products meet or exceed such standards. The bill excludes any energy or water conservation standards set aside by a court or any product if federal law preempts the application of the minimum energy and water conservation standards to such a product, including any product or product categories where there is a requirement to develop a standard under the EPCA.
Electric utilities; construction of certain electrical transmission lines; siting requirements. Requires the State Corporation Commission, in order to approve the construction of an electrical transmission line of 138 kilovolts or more, to determine that the corridor or route chosen for the line will avoid or reasonably minimize adverse impact to the greatest extent reasonably practicable on dwelling houses. For overhead transmission lines of 500 kilovolts or more constructed by Dominion Energy Virginia, the bill directs the Commission to prioritize approving corridors or routes for construction for which the center is located farther than 150 feet from any dwelling house, public or private school building, day care, or place of worship unless no other practicable alternative exists.
Comprehensive plan; environmental justice strategy. Requires cities with populations greater than 20,000 and counties with populations greater than 100,000 to consider, beginning July 1, 2026, at the next and all subsequent reviews of the comprehensive plan, adopting an environmental justice strategy. The bill provides that the locality's strategy shall be to identify environmental justice and fenceline communities within the jurisdiction of the local planning commission and identify objectives and policies to reduce health risks, to promote civic engagement, to prioritize improvements and programs that address the needs of environmental justice and fenceline communities, as those terms are defined in the bill, and to establish baseline environmental and health conditions to characterize any disproportionate public health conditions in the identified fenceline communities. This bill is identical to HB 256.
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.
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.
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.
Comprehensive plan; environmental justice strategy. Requires cities with populations greater than 20,000 and counties with populations greater than 100,000 to consider, beginning July 1, 2026, at the next and all subsequent reviews of the comprehensive plan, adopting an environmental justice strategy. The bill provides that the locality's strategy shall be to identify environmental justice and fenceline communities within the jurisdiction of the local planning commission and identify objectives and policies to reduce health risks, to promote civic engagement, to prioritize improvements and programs that address the needs of environmental justice and fenceline communities, as those terms are defined in the bill, and to establish baseline environmental and health conditions to characterize any disproportionate public health conditions in the identified fenceline communities. This bill is identical to SB 425.
Local authority to test and monitor the land application of sewage sludge within its political boundaries. Allows a locality to provide for testing and monitoring for perfluoroalkyl and polyfluoroalkyl substances, as defined in relevant law, of the land application of sewage sludge within its political boundaries using an applicable test method established by the U.S. Environmental Protection Agency. The bill prohibits any expenses from such testing and monitoring from being eligible for reimbursement from the Sludge Management Fund.
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.
