Environment

Geoengineering prohibited; civil penalties. Prohibits any person from engaging in geoengineering, defined in the bill as the intentional injection, release, or dispersion, by any means, of chemicals, chemical compounds, substances, or apparatus into the atmosphere with the express purpose of affecting temperature, weather, or the intensity of sunlight, in the Commonwealth. The bill provides that any person who violates such prohibition shall be subject to civil penalties authorized by relevant law.

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.

Virginia Electric Vehicle Grant Fund and Program; public, private, or nonprofit entity under contract with public school division. Amends the Virginia Electric Vehicle Grant Fund and Program to allow moneys from the Fund to be awarded to any public, private, or nonprofit entity currently under contract with, or expected to be under contract with, a public school division to cover certain costs associated with transitioning from diesel school buses and other commercial motor vehicles, heavy equipment, or other machinery to electric school buses or other equipment that reduces air emissions. The bill also removes a provision that prohibits the allocation of funds to the Fund or the Program unless federal funds or nonstate funds are available to cover the entire cost of such allocation.

Virginia's Great Outdoors Act established; land preservation distributions and appropriations. Creates a data center land preservation tax on and after January 1, 2027, in an amount equal to $3 per square foot of each data center facility footprint, as defined in the bill, and directs no less than $250 million of revenues from the tax to be distributed for various land protection and preservation purposes, including into the Virginia Tribal Commitment Fund, as created in the bill. The bill also repeals provisions requiring the Governor to include in the budget bill or in his amendments to the general appropriation act a recommended appropriation from the general fund, up to $20 million, for land preservation as follows: (i) 80 percent of the unissued credits to the Virginia Land Conservation Fund, of which at least 50 percent must be used for acquisitions with public access; (ii) 10 percent to the Virginia Battlefield Preservation Fund; and (iii) 10 percent to the Virginia Farmland and Forestland Preservation Fund.

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.

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 is identical to SB 598.

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.

Office of Working Lands Preservation; powers and duties; Forest Sustainability Fund. Adds management of the Forest Sustainability Fund to the powers and duties of the Office of Working Lands Preservation within the Department of Forestry. This bill is identical to HB 543.

Virginia Student Environmental Literacy Plan Grant Fund and Program established. Establishes the Virginia Student Environmental Literacy Plan Grant Fund and Program, to be administered by The Office of Environmental Education, in consultation with the Department of Education and any other stakeholder that it deems appropriate, for the purpose of awarding grants on a competitive basis to any school division that seeks assistance to develop a local student environmental literacy plan.

Conservation and replacement of trees during development process; work group; report. Expands certain existing local government authority to plant or replace trees during the development process by expanding such authority statewide. The bill allows localities to establish higher tree canopy replacement percentages based on density per acre. The bill also alters the current process for granting exceptions to a local ordinance by modifying a provision that requires the granting of an exception when the strict application of the ordinance would result in unnecessary or unreasonable hardship to the developer, and replacing it with a requirement that the locality concur with such a determination. The bill permits localities to monitor and assess the condition and coverage of tree canopies at development sites during a period of up to 20 years after the trees are planted. The bill also allows any town within Planning District 8 belonging to an eight-hour nonattainment area for air quality standards to require, by ordinance, that a subdivision or development provide for the preservation or replacement of trees on the development site such that the minimum tree canopy or cover 10 years after development is projected to meet specified coverage criteria. Under current law, the criteria apply to tree canopy coverage 20 years after development. Finally, the bill directs the Institute for Coastal Adaptation and Resilience to convene a work group to conduct a comprehensive review of the tree canopy laws and regulations and report the work group's findings and recommendations to the Chairs of the House Committee on Counties, Cities and Towns and Senate Committee on Local Government by November 1, 2026. This bill incorporates HB 995 and is identical to SB 589.