Environment

Land preservation tax credit; maximum amount increase. Increases from $75 million to $100 million, beginning in calendar year 2026, the maximum amount of land preservation tax credits that may be issued in a calendar year.

Tax credit; solar energy equipment. Establishes a nonrefundable income tax credit for taxable years 2026 through 2030 for individuals who incur allowable expenses, as defined in the bill, for the purchase and installation of solar energy equipment, also defined in the bill. An individual who properly claims this credit shall be allowed a credit in the amount of 15 percent of the cost of such equipment and allowable expenses, up to $1,000. The aggregate amount of credits allowable under the provisions of the bill shall not exceed $5 million per taxable year.

Department of Environmental Quality; Environmental Justice in the Permitting Process Guidance Memo; cumulative impacts. Directs the Department of Environmental Quality to publish an updated version of the Environmental Justice in the Permitting Process Guidance Memo for public comment. The bill requires the updated memo to consider how to assess the cumulative impacts of the types of permits covered in the guidance memo and outreach strategies to engage communities impacted by any such permit. The bill requires the public comment period process to include two public town halls held no later than July 31, 2026, and requires the Department to respond to the public comments by October 31, 2026. The Department is required to issue the final guidance memo by December 31, 2026.

Electric utilities; renewable energy portfolio standard program requirements; power purchase agreements. Amends certain renewable energy portfolio standard program requirements for Dominion Energy Virginia, including the annual percentage of program requirements to be met with solar, wind, or anaerobic digestion resources of one megawatt or less located in the Commonwealth. The bill changes from 2025 to 2027 the compliance year beginning in which at least 75 percent of renewable energy certificates used by Dominion Energy Virginia shall come from eligible resources located in the Commonwealth. The bill also removes the requirement for a solar-powered or wind-powered generation facility to have a capacity of no less than 50 kilowatts to qualify for a third party power purchase agreement under a pilot program. The bill directs the State Corporation Commission, by July 1, 2033, to initiate a proceeding to evaluate the future availability of renewable energy certificates from certain resources and permits the Commission to increase or decrease by up to one percentage point the percentage of program requirements to be met by such resources in future compliance years. The bill provides that it is the policy of the Commonwealth to encourage development on previously developed project sites, as defined in existing law, to reduce the land use impacts of solar development. This bill is identical to HB 628.

Income tax; sustainable aviation fuel production tax credit. Provides, for taxable years 2026 through 2030, a nonrefundable tax credit against individual and corporate income taxes for eligible producers of sustainable aviation fuel, as such terms are defined in the bill. The amount of the credit is the lesser of (i) $0.75 per gallon of sustainable aviation fuel produced in the taxable year or (ii) $5 million. The aggregate amount of credits allowable under this bill shall not exceed $20 million per taxable year.

Small renewable energy projects; agrivoltaics definition. Provides a definition of "agrivoltaics" for the purposes of small renewable energy projects. This bill incorporates HB 899 and is identical to SB 340.

Certain boundary line adjustments; Chesapeake Bay Preservation Act. Requires a locality to provide, by ordinance, that a boundary line adjustment that applies to lots that are located in a Resource Protection Area and that are grandfathered under the Chesapeake Bay Preservation Act does not create a new lot of record. The bill requires such ordinance to include that such boundary line adjustment shall be considered as a lot that predates the Act. The bill clarifies that its provisions do not limit a locality's zoning authority. The bill also directs the State Water Control Board to amend its criteria under the Act to allow an owner of a lot in any locality that predates the Act to submit an application for a boundary line adjustment without creating a new lot of record.

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.

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.

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 or more new off-street contiguous parking spaces and may require coverage of up to 50 percent of the surface parking area. The bill provides that an ordinance adopted pursuant to this bill shall be subject to various additional requirements and 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 or when a property owner shows that the solar canopy, if installed as otherwise required under the ordinance, will generate less than 75 percent of the electricity that would be expected, given the nameplate capacity of the solar modules installed on such canopy, if the canopy were to be installed at another location in the locality without surrounding impediments to insolation such as buildings or shading vegetation. Finally, the bill provides that the applicant or owner may use the electric energy generated from such solar canopy to offset the consumption of the parking lot or adjoining building served under the same account. The bill has a delayed effective date of July 1, 2027. This bill incorporates HB 457 and is identical to SB 26.