SB 333: Remediated Mine Gas Grant Program; established, report. - Virginia

Subcommittee #3 Subcommittee Substitute → Chaptered · 3 edits

MINOR

The bill was finalized and approved, changing its status from a proposed substitute to an enacted law. The primary substantive change is a clarification in the reporting requirements, requiring the Department to submit a 'report summarizing' the data rather than a 'summarized report' of the data, ensuring the final submission is a cohesive document. Minor formatting adjustments were made to the section headers and the chapter title to align with the final legislative text.

Scope change

The scope of the bill remains unchanged; it still establishes a grant program for capturing and utilizing methane from coal mines in Virginia.

REQUIREMENT

Clarified the reporting requirement in subsection D to mandate that the Department submit a 'report summarizing' the information, changing the phrasing from a 'summarized report' to ensure the final submission is a unified document.

TECHNICAL

Updated the document title from 'HOUSE SUBSTITUTE' to 'An Act' and added the approval date, reflecting the bill's transition from a draft to an enacted law.

Adjusted the section headers for definitions and the grant program to include a leading space, aligning with the final formatting standards of the Code of Virginia.

Enrolled → Agriculture, Conservation and Natural Resources Substitute · 6 edits

MODERATE

The bill was completely rewritten from a grant program into a tax credit system. The original version provided direct funding for equipment and hiring, while the new version offers tax breaks to companies that capture methane from coal mines. This changes the financial incentive from a direct payment to a reduction in state tax liability.

Scope change

The bill's scope shifted from a grant program administered by the Department of Energy to a tax credit program administered by the Tax Commissioner under the Department of Taxation.

FISCAL

The grant program for purchasing machinery and hiring employees was removed entirely.

A new tax credit system was added, offering up to 30% of equipment costs, $1,500 per new employee, and $280 per metric ton of methane sequestered.

SCOPE

The bill now targets electric generation and tax credits rather than general remediation projects and grants.

DEFINITION

The definition of 'sequester' was narrowed to exclude general beneficial use, focusing only on manufacturing feedstock or permanent storage.

TIMELINE

New effective dates were established, with credits available for specific periods between 2027 and 2032 for equipment and 2027 to 2045 for employees and methane.

REQUIREMENT

New caps were introduced, limiting total annual credits to $6 million for employee incentives and $10 million for methane credits.

Introduced → Enrolled · 6 edits · Apr 8, 2026

MODERATE

The bill evolved from a regulatory framework allowing utilities to sell renewable energy credits for using captured mine gas to a grant program providing direct financial assistance for capturing and utilizing that gas. The final version shifts the focus from utility-led projects to a broader grant system for various entities, introducing specific definitions for 'sequestration' and establishing a reporting requirement for grant recipients.

Scope change

The scope expanded from exclusively regulating Phase I and Phase II utilities to creating a general grant program available to any grantee in the Commonwealth, with a specific emphasis on revitalizing coalfields in Southwest Virginia.

FISCAL

Introduced a new grant program that provides financial assistance for purchasing equipment and hiring employees to capture remediated mine gas.

DEFINITION

Added a specific definition for 'sequestration,' covering the permanent storage or beneficial use of methane in manufacturing processes.

ELIGIBILITY

Changed the primary mechanism from utility petitions for renewable energy credits to a competitive grant application process for eligible expenditures.

Removed the specific requirement that projects must demonstrate a zero-carbon intensity score based on the U.S. Department of Energy's GREET model.

Eliminated provisions allowing utilities to recover project costs through rates and to generate renewable energy credits.

REQUIREMENT

Established mandatory reporting requirements for grant recipients to submit data on gas capture volumes and expenditures to the Department.

Labor and Commerce Substitute → Subcommittee #3 Subcommittee Substitute · 3 edits

MINOR

The bill underwent a procedural update from a Senate substitute to a House substitute, resulting in significant formatting changes and the addition of tracking numbers. The substantive policy text regarding the Remediated Mine Gas Grant Program, including definitions, grant eligibility, and reporting requirements, remains unchanged.

TECHNICAL

The document layout was restructured to reflect House substitute formatting, including the addition of tracking numbers and session headers.

Line breaks and spacing were adjusted throughout the text to accommodate the new House substitute format.

New tracking identifiers (e.g., 26108799D, SB333HC2) and session headers were inserted.

Finance and Appropriations Substitute → Labor and Commerce Substitute · 6 edits

MODERATE

The bill was transferred from the Senate Finance Committee to the Labor and Commerce Committee, shifting the program's oversight from a general appropriations body to one focused on industry and workforce. The scope expanded from a single underground metallurgical coal mine to include active and abandoned mines across the Commonwealth, with a specific emphasis on revitalizing Southwest Virginia. Definitions were broadened to include 'utilization' alongside 'sequestration,' and reporting requirements were updated to allow for the reporting of greenhouse gas reductions in addition to physical capture metrics.

Scope change

Expanded from a single underground metallurgical coal mine to include active and abandoned mines throughout the Commonwealth, with a specific focus on Southwest Virginia.

SCOPE

Changed the program's focus from a single underground metallurgical coal mine to include active and abandoned mines across the Commonwealth.

DEFINITION

Updated the definition of 'sequester' to explicitly include 'utilization' of methane, broadening what counts as a qualifying activity.

ELIGIBILITY

Changed the requirement from capturing gas at 'one' mine to capturing gas at 'active and abandoned mines,' allowing for multiple sites.

REQUIREMENT

Added flexibility to report quantified greenhouse gas emissions reductions in the first year's report instead of just physical capture volumes.

ENFORCEMENT

Changed the reporting recipient from the Commission to the Department, aligning with the new committee jurisdiction.

TIMELINE

Adjusted the summary report deadline from January 1 to 'January 1 of any year after which funds are made available,' removing the specific 2027 start date.

Agriculture, Conservation and Natural Resources Substitute → Finance and Appropriations Substitute · 6 edits

MODERATE

The bill was transferred from the Agriculture Committee to the Finance Committee, changing the mechanism from a tax credit to a direct grant program. This shifts the funding approach from taxpayers reducing their own tax bills to the state providing direct financial awards, while also moving the legal authority from the Department of Energy to a new Commission.

Scope change

The bill's scope changed from a tax credit applicable to income tax liabilities to a grant program administered by a Commission, altering how funds are distributed and reported.

FISCAL

The financial incentive changed from a nonrefundable tax credit (reducing tax owed) to a direct grant program (providing cash awards).

DEFINITION

The specific dollar amounts for employee hiring ($1,500) and methane sequestration ($280 per metric ton) were removed, as grants are now awarded based on eligible expenditures rather than fixed rates.

REQUIREMENT

A new reporting requirement was added for grant recipients to submit detailed reports on gas captured and money spent by October 1 of each year.

ENFORCEMENT

Administrative authority shifted from the Department of Energy to a newly established Commission responsible for awarding grants and managing the program.

TIMELINE

The specific tax credit windows (2027-2032 and 2027-2045) were removed, replaced by a fiscal year-based grant cycle starting in 2026.

ELIGIBILITY

Eligibility criteria changed from being tied to tax liability limits to a first-come, first-served basis with a priority for taxpayers who did not receive awards in the previous year.

Remediated Mine Gas Grant Program; established, report.

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