Environment

Occoquan Reservoir; low-flow protections for drinking water safe yield. Requires any Virginia Pollutant Discharge Elimination System Permit issued after July 1, 2026, authorizing the diversion of sewage or reclaimed water from a publicly owned treatment works for reuse that would otherwise discharge into the Occoquan Reservoir, the Occoquan River, Bull Run, or any of their tributaries above the Occoquan Reservoir to incorporate certain low-flow protection requirements for drinking water safe yield if the total diversion amount allowed by the permit exceeds 500,000 gallons per day. The bill also prohibits the issuance of any Virginia Water Protection Permit after July 1, 2026, authorizing the withdrawal of water for consumptive uses from the Occoquan Reservoir, the Occoquan River, Bull Run, or any of their tributaries above the Occoquan Reservoir for any purpose other than agricultural or irrigation purposes or for continued operation, expansion, or relocation of existing public water supply withdrawals.

Owners of sewage treatment works; land application, marketing, or distribution of sewage sludge; perfluoroalkyl and polyfluoroalkyl substances; testing requirements. Directs any owner of a sewage treatment works land applying, marketing, or distributing sewage sludge in the Commonwealth, beginning January 1, 2027, to collect representative samples of the sewage sludge intended to be land applied, marketed, or distributed and have such samples analyzed by an accredited laboratory for perfluoroalkyl and polyfluoroalkyl substances (PFAS). The bill mandates certain outcomes for the land application of such sewage sludge depending on the concentration of PFAS in such sewage sludge. The bill directs the Department of Environmental Quality to modify all Virginia Pollution Abatement permits for the land application of sewage sludge and Virginia Pollutant Discharge Elimination System permits for sewage treatment works that include sewage sludge prepared for land application, marketing, or distribution as soon as practicable. The bill requires the Department to utilize the PFAS Expert Advisory Committee (PEAC) or convene a work group to study and recommend approaches to reduce the occurrence of PFAS in sewage sludge intended for land application within the Commonwealth. The Department is required to report the recommendations of the PEAC or work group to the Governor and the Chairs of the Senate Committee on Agriculture, Conservation and Natural Resources and the House Committee on Agriculture, Chesapeake and Natural Resources by November 1, 2027. This bill is identical to HB 1443.

Department of Energy; Virginia Solar Energy and Battery Energy Storage Systems Program and tax credit; solar energy and battery energy storage projects. Establishes the Virginia Solar Energy and Battery Energy Storage Systems Program, to be administered by the Department of Energy for the purpose of (i) coordinating and supporting the development of solar energy and short duration battery energy storage industries and projects by other public or private entities; (ii) evaluating and approving solar energy and short duration battery energy storage projects as qualified projects for the purposes of the tax credit established by the bill; and (iii) determining which items and services are considered eligible project costs for a given qualified project, as defined in the bill. The bill establishes requirements for what can be considered a qualified solar energy and battery energy storage project based on whether the use of such project is for a residential, commercial and industrial, or utility-scale project. The bill establishes a tax credit for the installation of such residential, commercial and industrial, or utility-scale solar energy and energy storage projects for taxable years beginning on and after January 1, 2027, but before January 1, 2032. Finally, the bill requires the Department to monitor allocation of the tax credit and publish quarterly transparency reports summarizing such information and to establish and maintain a public dashboard displaying certain information on the solar energy and short duration battery energy storage installations by January 1, 2027. The bill has a delayed effective date of January 1, 2027.

Intentional discharge of untreated sewage onto land or into waters of the Commonwealth; civil penalty. Establishes a maximum civil penalty of $50,000 per violation for any person found to have intentionally discharged untreated sewage onto land or into waters of the Commonwealth.

Data center tax revenue; local residential renewable energy incentive program; tangible personal property tax reimbursement; penalty. Authorizes the governing body of any county, city, or town that collects real or personal property taxes for any real or personal property owned by a data center to create a local residential renewable energy incentive program, through which funds shall be used to reduce existing utility bills for residential customers, to reduce reliance upon fossil fuel power generation facilities, to reduce the need for construction and placement of new transmission lines, and to minimize future electricity costs for residential customers. The bill provides that 15 percent of new data center revenue, defined in the bill, shall be spent toward residential solar and battery storage investment and 15 percent of new data center revenue shall be spent toward providing pro rata reimbursements for residents' tangible personal property tax assessments for any qualifying vehicle. Finally, the bill provides that if any locality violates the requirements for such incentive program, the local treasurer shall immediately transfer any remaining funds directly to the State Treasurer. The State Treasurer shall direct such remaining funds to be used for authorized purposes and thereafter such locality's incentive fund shall be dissolved. The bill makes it a Class 1 misdemeanor for a local treasurer to violate such requirement.

Agricultural Best Management Practices Cost-Share Program; small farms. Provides that no less than 30 percent of the funds distributed to the Virginia Agricultural Best Management Practices Cost-Share Program used for matching grants for agricultural best management practices shall be granted to small farms, as defined in the bill.

Plastic bag tax; distribution to towns. Requires that any town located within a county that has imposed a disposable plastic bag tax receive a distribution of revenues collected by the county based on the local sales tax distribution formula for appropriations to towns. The bill restricts a town's use of such revenues to the same purposes allowable for a county or city.

Department of Housing and Community Development; Virginia Disaster Assistance Fund; post-disaster recovery; floodplain mitigation and resilience projects. Requires the Department of Housing and Community Development (the Department) to amend its criteria for awarding money from the Virginia Disaster Assistance Fund (the Fund) to allow for moneys from the Fund to be used for post-disaster recovery projects that are consistent with the state floodplain management standards for state-owned buildings or local floodplain standards, whichever are more stringent. The bill requires the Department to give priority to projects that use nature-based solutions or promote green infrastructure when possible. The bill also requires the Department to coordinate with the Interagency Resilience Management Team when evaluating new applications for awards from the Fund to ensure that such projects are aligned with the Commonwealth's resilience principles.

Local competitive bidding for compost and other products containing organic soil amendments; waste disposal infrastructure; civil penalty. Allows the governing body of a locality to give preference to compost or other products containing organic soil amendments produced within such locality in the case of a tie bid when determining the award of any contract for compost or other products containing soil amendments to be purchased for use by such locality. The bill also provides that any locality may by ordinance require that certain generators, as defined in the bill, of large quantities of organic waste separate the organic waste from other solid waste and ensure that the organic waste is diverted from final disposal in a refuse disposal system by any of a variety of specified waste diversion activities. The ordinance may also establish civil penalties for violations of the ordinance, but a locality shall first issue a warning to a generator that violates the ordinance. Finally, the bill expresses that it is the intent of the General Assembly that new public school buildings and facilities and improvements and renovations to existing public school buildings and facilities include waste disposal infrastructure, as defined in the bill, that includes a place for the disposal of trash, recyclables, and food scraps and a sink for liquid waste. This bill is identical to SB 226.

Virginia Brownfield and Coal Mine Renewable Energy Grant Fund. Increases from $100 per kilowatt of nameplate capacity from renewable energy sources that are located on brownfields to $200 per kilowatt of nameplate capacity from renewable energy sources that are located on brownfields the grant amount a project developer can receive from the Virginia Brownfield and Coal Mine Renewable Energy Grant Fund. This bill is a recommendation of the Commission on Electric Utility Regulation.