Energy

Renewable energy portfolio standard program; geothermal heating and cooling systems; report. Requires, for purposes of the renewable energy portfolio standard program, Dominion Energy Virginia and American Electric Power to annually procure and retire certain percentages of renewable energy certificates from geothermal heating and cooling systems, as defined in the bill. The bill directs the State Corporation Commission to prepare and deliver a report evaluating the procurement and retirement of renewable energy certificates from geothermal heating and cooling systems in the Commonwealth on or before November 1, 2028. The bill also directs the Real Estate Appraiser Board to promulgate regulations requiring the development of a continuing education curriculum and required training for all licensees that includes how to properly determine the increase in value of real estate created by reductions in building energy costs associated with solar, geothermal, and solar water heating investments. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation and is identical to HB 1102.

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.

Small renewable energy projects; agrivoltaics definition; advisory panel. Defines under the provisions relating to small renewable energy projects the term "agrivoltaics" to mean the intentional co-location of agricultural production and solar energy generation on the same land that (i) is designed to prioritize and sustain agricultural productivity while integrating renewable energy; (ii) allows the ongoing production and sale of agricultural products throughout the solar array's life; (iii) is a part of an existing farm business; and (iv) ensures flexibility for farmers to adapt to market conditions and support operational needs. The bill also directs the Virginia Cooperative Extension, in consultation with the Department of Energy, to convene a stakeholder advisory panel to develop recommendations to (i) establish criteria to determine qualifying agrivoltaic projects that are eligible for grant funding through the Virginia Power Innovation Fund and Program, (ii) identify how to monitor and sustain the integrity of agrivoltaic projects, and (iii) consider permitting or provide other incentives that may be effective in promoting agrivoltaic projects in the Commonwealth. The bill directs the stakeholder advisory panel to submit a report on its recommendations to the Secretaries of Agriculture and Forestry and Natural and Historic Resources by November 1, 2026.

Electric utilities; small portable solar generation devices; local regulation; Residential Landlord and Tenant Act. Permits any electric utility customer to own and operate a small portable solar generation device, defined in the bill as a nationally certified, plug-in solar photovoltaic device with a maximum power output of no more than 1,200 watts that is intended primarily to offset part of the customer's electricity consumption. The bill prohibits an investor-owned utility, municipal utility, or electric cooperative from imposing interconnection requirements, charging any fee related to the device, or requiring that the customer obtain the utility's approval before installing or using the device. Under the bill, no electric utility or electric cooperative shall be liable for damage or injury caused by a small portable solar generation device. Small portable solar generation devices are excluded under the bill from the provisions of net metering programs applicable to eligible agricultural customer-generators, eligible customer-generators, or small agricultural generating facilities. The bill also restricts landlords owning more than four rental dwelling units from prohibiting a tenant from installing a small portable solar generation device on the exterior of the tenant's premises, provided that reasonable restrictions may be established concerning size, manner, and placement.

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.

Land subdivision and development; optional provisions of a subdivision ordinance; electric vehicle charging stations; Department of Energy; report. Allows, effective July 1, 2027, a locality to include in its subdivision ordinance a requirement for electric vehicle (EV) supply equipment, EV-ready charging spaces, or EV-capable parking spaces that provide infrastructure to facilitate future EV charging, including electrical capacity, prewiring, and conduit for a development containing commercial, industrial, or multifamily residential uses. Effective in due course, the bill directs the Department of Energy to evaluate the design and deployment of the electrical distribution infrastructure necessary to support the installation of electric vehicle charging facilities in new developments consisting of single-family and multifamily residential units, to provide recommendations on the appropriate number and type of EV charging spaces for new commercial and industrial developments, and to report its findings and recommendations to the State Corporation Commission no later than November 15, 2026.

Electric utilities; renewable energy portfolio standard eligible sources; zero-carbon electricity generating nuclear facilities. Provides that, for the purposes of the renewable energy portfolio standard, eligible sources include zero-carbon electricity generating nuclear facilities located in the Commonwealth.

Regulation of contractors; solar installation companies; sale, lease, or power purchase of solar energy systems; civil penalty. Authorizes the Board for Contractors (the Board) to require specific contract provisions and disclosures relating to the sale, lease, or power purchase agreement for a residential solar energy system, as defined in the bill. The bill requires a sale, lease, or power purchase agreement for a residential solar energy system to have a written contract that includes specific provisions related to the solar installation company, system design and performance or production guarantees, and information related to invoices and payments. The bill includes several mandatory disclosures to be included with a sale, lease, or power purchase agreement for a residential solar energy system. Under the bill, a willful violation of such requirements shall be subject to a civil penalty of no more than $2,500 per violation. The bill also directs the Board to adopt regulations and update existing regulations to implement the provisions of the bill by January 1, 2027. The remaining provisions of the bill have a delayed effective date of January 1, 2027. This bill is identical to SB 823.

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 July 1, 2027. 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.

Land development; solar canopies in parking areas. Provides that any locality may include in its land development ordinances a provision that requires that an applicant must install a solar canopy over designated surface parking areas. Such provisions shall apply only to nonresidential parking areas with 100 parking spaces or more and may require coverage of up to 50 percent of the surface parking area. The bill provides that localities shall allow for deviations, in whole or in part, from the requirements of the ordinance when its strict application would prevent the development of uses and densities otherwise allowed by the locality's zoning or development ordinance. The bill has a delayed effective date of July 1, 2027.