Energy

Solar Interconnection Grant Fund and Program established; report; sunset. Establishes the Solar Interconnection Grant Program for the purpose of awarding grants on a competitive basis to public bodies to offset costs associated with the interconnection of solar facilities to the grid. The Program is administered by the Division of Renewable Energy and Energy Efficiency of the Department of Energy. The bill requires that priority be given to solar facilities located on previously developed project sites and requires the Division to establish and publish guidelines and criteria for the awarding of grants and general requirements of the Program. The bill has an expiration date of July 1, 2027, and, as introduced, was a recommendation of the Commission on Electric Utility Regulation. This bill is identical to SB 659.

Electric utilities; renewable portfolio standard program; zero-carbon electricity; accelerated renewable energy buyers. Classifies zero-carbon electricity generating facilities that are not otherwise renewable portfolio standard (RPS) program eligible sources and that are placed into service in the Commonwealth after July 1, 2030, as RPS eligible sources. The bill permits an accelerated renewable energy buyer to contract to obtain bundled capacity, energy, and renewable energy certificates from solar, wind, or zero-carbon electricity generation located within the PJM region and placed in commercial operation on or before January 1, 2015, if investments to increase the maximum thermal power output of such facility occurred after January 1, 2015, or if a financial agreement for procurement of energy and capacity was entered into with such facility after January 1, 2015, to prevent the early retirement or decommissioning of such facility due to financial constraints.

Distributed Energy Resources Task Force established; reports; sunset. Establishes the Distributed Energy Resources Task Force as an advisory commission within the executive branch with the purpose of developing a comprehensive strategy to advance the Commonwealth's transition toward integrated distributed energy resource markets and to support the Commonwealth's compliance with certain regulations. The bill describes the membership, powers, and duties of the Task Force and requires the Task Force to submit various reports to the Governor, the State Corporation Commission, the Federal Energy Regulatory Commission, and the Chairs of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor. The bill sunsets on July 1, 2027. This bill is identical to SB 223.

Department of Energy; developing criteria to determine the appropriateness of sites for solar facilities. Requires the Department of Energy (the Department) to develop a set of criteria to be used by reviewers to (i) assess the appropriateness of potential siting areas and (ii) assign a siting appropriateness score from one to 100 for each area and to establish a scoring committee to review applications for proposed solar facilities. Beginning January 1, 2027, the bill requires every completed land use application for a proposed solar facility to be forwarded by the host locality to the Department for evaluation and scoring. The bill provides that the locality shall continue to have final authority for approval or disapproval of a proposed solar facility.

Solar Interconnection Grant Fund and Program established; report; sunset. Establishes the Solar Interconnection Grant Program for the purpose of awarding grants on a competitive basis to public bodies to offset costs associated with the interconnection of solar facilities to the grid. The Program is administered by the Division of Renewable Energy and Energy Efficiency of the Department of Energy. The bill requires that priority be given to solar facilities located on previously developed project sites and requires the Division to establish and publish guidelines and criteria for the awarding of grants and general requirements of the Program. The bill has an expiration date of July 1, 2027, and, as introduced, was a recommendation of the Commission on Electric Utility Regulation. This bill is identical to HB 683.

Electric utilities; virtual power plant pilot program; Phase I Utilities. Requires Appalachian Power to petition the State Corporation Commission for approval to conduct a pilot program to evaluate methods to optimize demand through various technology applications, including the establishment of virtual power plants, by December 1, 2026. The bill requires the pilot program to evaluate electric grid capacity needs and the ability of such virtual power plants to provide grid services, including peak-shaving, during times of peak electric demand.

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.

Siting of battery energy storage projects; commercial solar photovoltaic generation facilities; permitted accessory use. Deems battery energy storage projects as a permitted accessory use in all zoning districts on any parcel of land that is subject to an approved special exception, as defined in the bill, for a commercial solar photovoltaic generation facility, if such battery energy storage project is located within the boundaries of the parcel covered by the existing special exception and complies with any applicable federal, state, and local safety or fire codes and environmental regulations. The bill prohibits a host locality from requiring a special exception or any other local land use approval on such battery energy storage project. The bill clarifies that nothing in the provisions of the bill shall be construed to (i) limit the authority of a host locality to enforce compliance with applicable codes or ensure the safe operation of the battery energy storage project or (ii) preclude the developer of a battery energy storage project from negotiating a siting agreement with the host locality. The bill also clarifies that any battery energy storage project for which an initial interconnection request has been filed with an electric utility or a regional transmission organization prior to July 1, 2030, and is constructed in accordance with the provisions of the bill shall be subject to the applicable local ordinance and regulation in effect on July 1, 2026. This bill is identical to SB 443.

Electric utilities; high energy demand customers; demand flexibility programs; reports. Directs Dominion Energy and Appalachian Power to file a petition with the State Corporation Commission by January 15, 2027, for approval of voluntary demand flexibility programs that apply to high energy demand customers, as defined in the bill. The bill requires the Commission to consider all forms of demand flexibility and other specific factors in approving each such program. The bill directs each cooperative that serves one or more high energy demand customers to establish a voluntary demand flexibility program for such customers by January 1, 2029. Under the bill, Dominion Energy and Appalachian Power are required to file status reports on their demand flexibility programs with the Commission three years after initial program approval and every three years thereafter. Additionally, in 2028 and annually thereafter, the Commission is required to submit information summarizing the status and performance of such programs as part of an existing report. This bill is identical to SB 371.

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.