Environment

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.

Electric utilities; renewable energy portfolio standard program requirements; power purchase agreements. Amends certain renewable energy portfolio standard program requirements for Dominion Energy Virginia, including the annual percentage of program requirements to be met with solar, wind, or anaerobic digestion resources of one megawatt or less located in the Commonwealth. The bill changes from 2025 to 2027 the compliance year beginning in which at least 75 percent of renewable energy certificates used by Dominion Energy Virginia shall come from eligible resources located in the Commonwealth. The bill also removes the requirement for a solar-powered or wind-powered generation facility to have a capacity of no less than 50 kilowatts to qualify for a third party power purchase agreement under a pilot program. The bill directs the State Corporation Commission, by July 1, 2033, to initiate a proceeding to evaluate the future availability of renewable energy certificates from certain resources and permits the Commission to increase or decrease by up to one percentage point the percentage of program requirements to be met by such resources in future compliance years. The bill provides that it is the policy of the Commonwealth to encourage development on previously developed project sites, as defined in existing law, to reduce the land use impacts of solar development. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation. This bill is identical to SB 175.

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.

Department of Conservation and Recreation; Virginia Coastal Resilience Master Plan. Directs the Department of Conservation and Recreation, when updating the Virginia Coastal Resilience Master Plan, to identify areas where marshes may migrate in the face of sea level rise.

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 Environmental Quality; industrial wastewater; publicly owned treatment works; PFAS monitoring. Directs every publicly owned treatment works (POTW) to require certain new or industrial users of such POTW to perform and report to such POTW no later than 30 days after receipt from a laboratory the results as received of quarterly discharge monitoring for perfluoroalkyl and polyfluoroalkyl substances (PFAS) for an initial characterization period of one year, provided, however, that such POTW may discontinue remaining quarterly monitoring by an industrial user with proper monitoring results that are below the method detection level for the first two quarters. If an industrial user detects PFAS in any amount above the detection method limit in its initial year of quarterly monitoring, the bill requires such industrial user to continue to perform and report to the POTW no later than 30 days after receipt from the laboratory the results as received of quarterly discharge monitoring for PFAS. The bill requires a POTW that receives PFAS monitoring results to report such results to the Department of Environmental Quality on a quarterly basis. Finally, the bill directs any POTW to notify an owner or operator of an industrial user subject to the monitoring requirements of the bill of the requirement to submit the initial quarterly monitoring results for PFAS within 30 days of the effective date of the bill. This bill is identical to SB 138.