Attacks on Virginia’s climate laws are front and center at the General Assembly

People gathered in a square listening to speakers.
Climate advocates gathered at the Virginia Capitol on Friday to defend Virginia’s clean energy laws. Speakers included Senators Creigh Deeds, Ghazala Hashmi, David Marsden and Scott Surovell, and Delegates Rip Sullivan, Nadarius Clark, Rodney Willett and Alfonso Lopez. Photo courtesy of Mary-Stuart Torbeck, Virginia Sierra Club.

Every year I do a round-up of climate and energy bills at the start of the General Assembly session. This year, as expected, Republicans continue their assault on the hallmark legislation passed in 2020 and 2021 committing Virginia to a zero-carbon economy by 2050. In addition, this year features the usual assortment of bills doing favors for special interests, efforts to help residents and local governments go solar and a brand-new money and power grab by Dominion Energy.

Republicans are not down with the energy transition

Dominion Energy may have baked the transition to renewables into its planning, but unsurprisingly, the Virginia Republican Party thinks the fight to preserve fossil fuel dependence is a winning issue. The three foundational bills of Virginia’s energy transition — the Regional Greenhouse Gas Initiative (RGGI), the Virginia Clean Economy Act (VCEA) and Clean Cars — all come in for attack, either by outright repeal or death-by-a-thousand-cuts.

Senate Bill 1001 (Richard Stuart, R-Westmoreland) would repeal the Clean Energy and Community Flood Preparedness Act, the statute that propelled Virginia into the Regional Greenhouse Gas Initiative. Participation in RGGI is the vehicle by which utilities buy allowances to emit carbon pollution. Under RGGI, the number of allowances available declines every year, and Virginia’s power sector would reduce CO2 emissions 30% by 2030. The allowance auctions have already raised hundreds of millions of dollars that by law must be used for low-income energy efficiency programs and flood resilience projects. A similar bill failed last year, and Senate Democrats have pledged to block the effort again. Meanwhile, Gov. Glenn Youngkin is trying to withdraw Virginia from RGGI administratively, a move that former Attorney General Mark Herring ruled wasn’t legal. 

Carbon allowance auctions are a foundational piece of the VCEA as well, but it is a much bigger law that touches on too many aspects of energy regulation for repeal of the whole thing. This isn’t stopping Republicans from trying to undermine key provisions. House Bill 2130 (Tony Wilt, R-Rockingham) and Senate Bill 1125 (Travis Hackworth, R-Tazewell) would give the State Corporation Commission more authority over closures of fossil fuel plants and require it to conduct annual reviews aimed at second-guessing the VCEA’s framework for lowering emissions and building renewable energy. Achieving the VCEA’s climate goals is decidedly not the purpose; meanwhile, the legislation would remove business certainty and undercut utility planning.

Other attacks on the VCEA take the form of favors for specific industries, but would effectively make the VCEA’s goal of reaching 100% carbon-free electricity by 2050 at the least cost to consumers impossible. I’ve dealt separately with small modular reactors, hydrogen and coal mine methane below. 

In addition, House Bill 1430 and House Bill 1480 (Lee Ware, R-Powhatan) exempt certain industrial customers categorized as “energy-intensive trade-exposed industries” from paying costs that the VCEA makes all customers pay. The exemption would last four years. The result would be nice for those industries but would shift costs onto everyone else. The bill seems likely to pass the House, but the same bill last year died in the Senate. However, Senate Bill 1454 (Jeremy McPike, D-Prince William) proposes the SCC put together a group of experts to study the issue and make recommendations.

In the transportation sector, no fewer than seven bills sought to repeal the Air Pollution Control Board’s authority to implement the Advanced Clean Car Standard: House Bill 1372 (Buddy Fowler, R-Hanover), House Bill 1378 (Wilt), Senate Bill 778 (Stuart), Senate Bill 779 (Stephen Newman, R-Bedford), Senate Bill 781 (Bill DeSteph, R-Virginia Beach), Senate Bill 782 (Bryce Reeves, R-Fredericksburg) and Senate Bill 785 (Ryan McDougle, R-Hanover). The Senate bills were killed in committee on Tuesday. The House bills are likely to pass that Republican-led chamber, but it appears clear that Senate Democrats intend to hang fast to Clean Cars.

Although so many identical bills might look like a failure of legislators to coordinate efforts, in fact the senators all signed on as co-patrons to each other’s bills, along with a dozen House Republicans. Republicans think they have a winning issue for the November election, and lots of them want to claim they filed “the” legislation attempting to repeal Clean Cars.

Raiding the store for polluter interests

If the VCEA is here to stay, there are some decidedly non-green industries that want to claim the green mantle to get in on the action. It’s not about making themselves feel better about their high greenhouse gas emissions. It’s about getting a piece of the market for renewable energy certificates and undermining the integrity of the renewable energy label. 

House Bill 1643 (Terry Kilgore, R-Scott) and Senate Bill 1121 (Hackworth) proclaim coal mine methane a renewable energy. House Bill 2178 (James Morefield, R-Tazewell) makes coal mine methane a qualifying industry for Virginia’s green job creation tax credit. 

Burning wood for electricity produces as much CO2 as coal, at a cost much higher than solar energy today. Yet House Bill 2026 (Israel O’Quinn, R-Bristol) and Senate Bill 1231  (Lynwood Lewis, D-Accomack) remove the requirement in the VCEA for the retirement of Dominion’s generating facilities that burn wood for electricity and allow these generating plants to qualify as renewable energy sources.

SMRs and hydrogen

Speaking of raiding the store, House Bill 2197 (Kathy Byron, R-Bedford) allows “advanced nuclear technology” to qualify for Virginia’s renewable portfolio standard (RPS). The bill defines the term as “a small modular reactor or other technology for generating nuclear energy,” which looks like an opening for existing nuclear plants as well. Even if it isn’t, treating any kind of nuclear technology as a renewable resource upsets the VCEA’s calibrated approach to nuclear as a zero-carbon technology alongside renewable energy, not in place of it. 

House Bill 2311 (Kilgore) goes a step further, declaring both nuclear and hydrogen to be renewable energy sources and making them eligible for the RPS. Hydrogen, of course, is a fuel made from other sources of energy, which can be renewable but are more typically fossil fuels currently. Given Youngkin’s interest in seeing hydrogen made from coal mine methane, you can see where this is headed.  

House Bill 2333 (Danny Marshall, R-Danville) calls on the SCC to develop a pilot program to support building small modular nuclear reactors, with a goal of having the first one operational by 2032. In spite of the word “pilot,” the bill is ambitious. It contemplates four sites, each of which can have multiple reactors of up to 400  megawatts each.  

Utility reform 

Some of these bills are reform bills; some are “reform” bills. To recognize the difference, it helps to know whether the proponent is a public interest organization or the utility itself. When Dominion tells you it has a bill you’re going to love, you can be pretty sure the result will be bad for ratepayers. 

Senate Bill 1321 (Jennifer McClellan, D-Richmond, and Creigh Deeds, D-Charlottesville) and House Bill 1604 (Ware), billed as the Affordable Energy Act, is real reform legislation that gives the SCC authority to lower a utility’s base rates if it determines that existing rates produce “unreasonable revenues in excess of the utility’s authorized rate of return.” 

Other straightforward measures include House Bill 2267 (Wilt) and Senate Bill 1417 (David Suetterlein, R-Roanoke), which allow the SCC to decide to add the cost of a new utility generation project into base rates instead of granting a rate adjustment clause (RAC), and House Bill 1670 (Marshall), which returns rate reviews to every two years instead of the current three years. 

Dominion, however, has its own “reform” bill, introduced by its favorite Democratic Senate and Republican House leaders. As is typical for Dominion, Senate Bill 1265 (Dick Saslaw, D-Fairfax) and House Bill 1770 (Kilgore) is long, dense and deadly effective in crushing competition and protecting profits. The bitter pill is sugarcoated with short-term rebates and concessions to minor reform proposals, such as biennial rate reviews in place of triennial reviews and consolidating many RACs into base rates. A somewhat less objectionable substitute moved forward in Senate subcommittee this week, but further negotiations are expected to produce yet more changes.

The warring factions may be able to find common ground in House Bill 2275 (Kilgore) and Senate Bill 1166 (Scott Surovell, D-Fairfax), legislation creating a structure for state energy planning.

House Bill 1777 (O’Quinn) and Senate Bill 1075 (Frank Ruff, R-Mecklenburg) change how the SCC regulates rates of Appalachian Power – but not Dominion. They require the SCC to conduct “annual rate true-up reviews (ART reviews) of the rates, terms and conditions for generation and distribution services” by March 31, 2025 and annually after. They also remove the requirement for an integrated resource plan. 

Retail choice

Past years have seen efforts to restore the ability of customers to buy renewable energy from providers other than their own utilities, an important option for a resident or business that wants to buy renewable energy at a competitive rate. Senate Bill 1419 (Suetterlein) marks at least the fourth year in a row for this effort. A Senate subcommittee voted against it this week.

Dominion’s “reform” bill, on the other hand, clamps down further on retail choice. In light of Youngkin’s support for retail choice in his energy plan, it is interesting to see Republicans like Kilgore instead enabling Dominion’s anticompetitive efforts. 

solar panels on a school roof
Wilson Middle School, Augusta County. Photo courtesy of Secure Futures.

Goosing investments in solar and efficiency

With the passage of the federal Inflation Reduction Act last summer, renewable energy and energy efficiency tax credits are more generous and easier to access than ever before. Senate Bill 848 (Barbara Favola, D-Arlington) and House Bill 1852 (Suhas Subramanyam, D-Loudoun) direct the Commission on School Construction and Modernization to figure out how to help schools take full advantage of onsite solar. 

House Joint Resolution 545 (Briana Sewell, D-Prince William) directs the Department of Energy to study barriers to clean energy investments by localities and their residents and issue recommendations to help. 

Senate Bill 1333 (Ghazala Hashmi, D-Richmond) creates a program within the Department of Energy to be known as the Commonwealth Solar and Economic Development Program. The program will implement solar, energy efficiency and other economic development projects in specified census tracts. 

Senate Bill 1323 (McClellan) requires the SCC to establish for Dominion Energy Virginia annual energy efficiency savings targets for customers who are low-income, elderly, disabled or veterans of military service. 

Senate Bill 984 (Monty Mason, D-Williamsburg) clarifies that lease arrangements for onsite solar are legal, whether or not they’re net metered, including when battery storage is part of the project. (For context: Leasing has always been an option for onsite solar, but the IRA has increased interest in this approach. It is considered especially attractive for residential projects that, except when the customer is low-income, are barred by Virginia law from using third-party power purchase agreements.) The bill also ensures owners can be paid for grid services using the facilities. Another welcome provision of the bill is removing standby charges for residential customers who have batteries along with their solar panels. Currently, residents with systems over 15 kW must pay hefty standby charges.

House Joint Resolution 487 (Marshall) directs the Department of Transportation to study the idea of putting solar panels in highway medians.

Meanwhile, House Bill 2355 (Jackie Glass, D-Norfolk) is a consumer-protection effort for buyers of rooftop solar and other small arrays, who have sometimes been the victims of unscrupulous companies that overcharge and under-deliver.

Shared solar

Virginia has been wading into community solar like a child at the seashore, dipping a toe in and then running away again and again, without ever truly entering the water. A 2020 law establishing a “shared solar” program in Dominion territory was supposed to get us swimming. At the SCC, however, Dominion won the right to impose such a high minimum bill as to make the program unworkable for any but low-income customers, who are exempt from the minimum bill.   

Senate Bill 1266 (Surovell) attempts to address the problems with the shared solar program in Dominion territory. Surovell was the author of the 2020 law and criticized the SCC’s action for making shared solar unavailable to anyone other than low-income residents. His approach would limit the minimum bill to more than twice the basic customer charge, while also increasing the size of the program to at least 10% of the utility’s peak load and allowing non-jurisdictional customers like local governments to participate. 

Senate Bill 1083 (Edwards and Surovell) creates a shared solar program in Appalachian Power territory. It builds on the framework of the existing program in Dominion territory, but the minimum bill is limited to $20. It also seeks to prevent the interconnection problems that industry members have complained about by limiting costs and requirements to those “consistent with generally accepted industry practices in markets with significant penetration levels of distributed generation.”

On the House side, House Bill 1853 (Suhas Subramanyam, D-Loudoun) combines both Senate bills into one bill that addresses both Dominion and Appalachian Power. For both, it limits the minimum bill to two times the basic customer charge, and it includes the interconnection language. 

offshore wind turbines

Offshore wind

Senate Bill 1441 (Mamie Locke, D-Hampton) moves up the VCEA’s deadline for offshore wind farm construction from 2034 to 2024, a change I don’t understand at all, given that the current timeline calls for completion of the Coastal Virginia Offshore Wind Project (CVOW) in 2026. The bill also requires that when Dominion seeks cost recovery, the SCC must give preference “for generating facilities utilizing energy derived from offshore wind that maximize economic benefits to the Commonwealth, such as benefits arising from the construction and operation of such facilities and the manufacture of wind turbine generator components.” I look forward to learning what’s behind that, too. 

Senate Bill 1854 (Subramanyam) seeks annual reports from the SCC on the progress of CVOW, including “the status and the anticipated environmental impacts and benefits of such projects” that  “analyze the current and projected capital costs and consumer rate impacts associated with such projects.” It also wants “an analysis of the ownership structure chosen by an electric utility for previously approved wind energy projects and the costs, benefits, and risks for consumers associated with utility-owned and third-party-owned projects.” This analysis would compare the Virginia project with other U.S. projects, potentially a useful analytical tool for the next offshore wind project that comes along. 

House Bill 1797 (Nick Freitas, R-Culpeper) declares that ratepayers will be held harmless if CVOW’s annual net capacity factor falls below 42% as measured on a three-year rolling average. The capacity factor is the average output of the wind turbines as a percentage of their full potential. In its filing with the SCC, Dominion projected CVOW would hit that 42% mark. If wind speeds turn out to be stronger than projected, the turbines will produce more energy at a lower cost. If the wind (or the machinery) doesn’t meet expectations, the capacity factor will be lower and costs will be higher. The bill would make Dominion absorb the loss in that event. However, the SCC did just resolve this issue in a way that takes account of both ratepayer interests and the newness of the technology, making it unlikely that many legislators will want to revisit this topic.  

Senate Bill 1477 (Lewis) allows Dominion, subject to SCC approval, to create an affiliated company to build some or all of its offshore wind project, with the purpose of having the affiliate secure equity financing.

House Bill 2444 (Bloxom) moves up the timeline for Virginia offshore wind projects under the VCEA from 2034 to 2032 (I wonder if this is what Senator Locke’s bill was supposed to say). It also requires the SCC to give preference to requests for cost recovery by Dominion for “generating facilities utilizing energy derived from offshore wind that maximize economic benefits to the Commonwealth.” I don’t understand if this is intended to discourage Dominion from pursuing projects off the shores of other states, or if it is a poorly-worded way to support in-state manufacturing of components.

Residential PACE

Senate Bill 949 (Petersen) makes homeowners eligible for property-assessed clean energy (PACE) programs, which provide low-cost financing for energy efficiency and renewable energy upgrades. Currently PACE loans are only available to commercial customers. 

Data centers

Virginia has a data center problem. Northern Virginia hosts the largest concentration of data centers in the world, and the energy they consume now amounts to 21% of Dominion’s load. This growth has happened with no state oversight; indeed, it’s been goosed by a billion dollars’ worth of state tax incentives over the past decade. Meeting the energy demand of data centers requires more generation and more transmission lines, usually paid for by all utility customers. 

Senate Joint Resolution 240 (Chap Petersen, D-Fairfax), and House Joint Resolution 522 (Danica Roem, D-Manassas) task the Department of Energy with studying data centers’ impact on Virginia’s environment, energy supply, electricity rates and ability to meet climate targets. The bills also ask for recommendations on whether tax incentives should be conditioned on use of renewable energy or on meeting siting criteria. 

Both Roem and Petersen also have bills that deal with specific siting issues, mostly unrelated to energy. Senate Bill 1078 (Petersen) limits areas where data centers can be sited (e.g., not near parks and battlefields, a barb likely aimed at the Prince William Gateway project). However, it also requires localities to conduct site assessments for impacts on carbon emissions as well as water resources and agriculture. 

Meanwhile, though, legislators seem determined to increase taxpayer handouts to data centers. Following Governor Youngkin’s announcement about Amazon’s plans to invest billions of dollars in new data centers in Virginia, Delegate Barry Knight (R-Virginia Beach) filed House Bill 2479, creating the Cloud Computing Cluster Infrastructure Grant Fund to throw more money at a corporation that seems likely to have more money already than Virginia does.

Return of the gas ban ban 

Last year the natural gas industry tried to get a law passed to ban localities from prohibiting gas connections in new buildings. Some cities in other states have done that to protect the health and safety of residents and protect the climate; meanwhile, about 20 red states have passed laws to prevent their local governments from doing it. But no Virginia locality has attempted to ban gas connections, in part because as a Dillon Rule state, our local governments don’t appear to have that authority. That isn’t stopping the gas industry from seeking to ban bans here; House Bill 1783 (O’Quinn) and Senate Bill 1485 (Morrissey) would do just that. Obnoxiously, it calls the right to use gas “energy justice,” which is surely the best reason to oppose it.  

A version of this article appeared in the Virginia Mercury on January 18, 2023.

Update January 19: Two new bills have been added since yesterday. Senator Morrissey filed SB1485 (gas ban ban), and Senator Lewis filed SB1477 (Dominion offshore wind affiliate).

Update January 23: Delegate Bloxom filed HB2444, added to the offshore wind section above. Delegate Knight filed HB2479, a bill to enrich Amazon; see data centers.

We’re rounding the final curve at the GA. Here’s the status of the energy bills.

BILLS STILL ALIVE

Don’t let the long list fool you. While the majority of the bills we’ve been following have either passed both chambers or seem well on their way to doing so, some of the most impactful bills are now dead, and others have been amended into meekness. 

The entire category of Utility Reform got emptied out into the dumpster in Senate Commerce and Labor, which also killed Jeff Bourne’s “right to shop” bill that would have opened up the renewable energy market. They are all now found under “Dead and Buried” at the end.

Kaye Kory’s building code bill that would have ensured the Virginia residential code meet the minimum requirements of the national energy efficiency model code has been amended to require that the national code merely be considered. An additional sentence saying essentially “we really mean it” only partially redeems the amendment.

On the other hand, the Clean Cars Standard is alive and well, showing that ambitious bills can succeed when a large enough coalition pushes hard enough (and when Dominion will benefit from higher electricity sales). Even a few Republicans voiced support, though they would not go on record to vote for it. But the EV rebate bill may be in some peril, and it was supposed to be the carrot that brought auto dealers on board. 

As for school buses, stay tuned. 

Renewable energy and storage

HB1925 (Kilgore) establishes, but does not fund, the Virginia Brownfield and Coal Mine Renewable Energy Grant Fund and Program. Passed both the House and Senate unanimously and now goes to the Governor.

HB1994 (Murphy) and HB2215 (Runion) expands the definition of small agriculture generators to include certain small manufacturing businesses such as breweries, distilleries and wineries for the purposes of the law allowing these businesses to aggregate meters and sell renewable energy to a utility. HB2215 was incorporated into HB1994, which passed the House 93-6 (nay votes from Brewer, Campbell, R.R., Gilbert, LaRock, Poindexter, and Wright) and the Senate 39-0. The bills now go to the Governor.

HB2006 (Heretick) and SB1201 (Petersen) change the definition of an “electric supplier” to include the operator of a storage facility of at least 25 MW, exempting them from state and local taxation but allowing a revenue share assessment. This is a priority bill for renewable energy industry associations. HB2006 passed the House 88-11-1 and Senate 37-1-1 (Amanda Chase was the nay vote). SB1201 passed the Senate 38-0-1 (must have slipped by Chase) and House 91-6-1 (nay votes from Batten, Cole, M.L., Freitas, LaRock, Webert, and Wright. The bills now go to the Governor.

HB2034 (Hurst) clarifies that the program allowing third-party power purchase agreements (PPAs) applies to nonjurisdictional customers (i.e., local government and schools) as well as jurisdictional customers (most other customers). Passed the House 99-0 and Senate 39-0Senate companion bill SB1420 (Edwards) also passed Senate and House unanimously, so this is another done deal. It now goes to the Governor.

HB2148 (Willett) provides for energy storage facilities below 150 MW to be subject to the DEQ permit by rule process as “small renewable energy projects.” This is a priority bill for renewable energy industry associations. Passed the House 89-9, reported from Senate Ag. but then referred to Finance for reasons no one can understand. If it doesn’t get hung up there it is likely to pass the full Senate.

HB2201 (Jones) and SB1207 (Barker) expands provisions related to siting agreements for solar projects located in an opportunity zone to include energy storage projects; however, according to existing language, the provision only takes effect if the GA also passes legislation authorizing localities to adopt an ordinance providing for the tax treatment of energy storage projects. (Why doesn’t the bill just go ahead and include that authorization? Don’t ask me.) This is another renewable energy industry bill. HB2201 passed the House 71-29 and Senate 34-3-1 (Chase, DeSteph and Reeves were the only holdouts). SB1207 passed the Senate 37-0 and is on its way to the House floor. Another done deal. 

HB2269 (Heretick) provides for increases in the revenue share localities can require for solar projects based on changes in the Consumer Price Index. Passed the House 91-8, passed the Senate 37-1-1 (the sole nay vote came from, yes, Amanda Chase). It now goes to the Governor.

SB1258 (Marsden) requires the State Water Control Board to administer a Virginia Erosion and Sediment Control Program (VESCP) on behalf of any locality that notifies the Department of Environmental Quality that it has chosen not to administer a VESCP for any solar photovoltaic (electric energy) project with a rated electrical generation capacity exceeding five megawatts. The provisions become effective only if the program is funded; Marsden has submitted a budget amendment. This is also a priority bill for renewable energy industry associations. Passed the Senate 39-0, still bouncing around House committees but with no opposition.

SB1295 (DeSteph) requires utilities to use Virginia-made or US-made products in constructing renewable energy and storage facilities “if available.” After much criticism it was amended to read that the products must be “reasonably available and competitively priced,” after which the now-happily-pointless bill passed the Senate 37-0-2 and has gone on to be reported from House Commerce and Labor unanimously.

Energy efficiency and buildings

HB1811 (Helmer) adds a preference for energy efficient products in public procurement. Passed the House 55-44 along party lines. Passed the Senate 25-14 but with amendments limiting it to state agencies and softening the language—because, you know, why force localities to save taxpayer money if they would rather waste it? The House then rejected the amendments; the Senate has requested the bill be sent to a conference committee.  

HB1859 (Guy) amends last year’s legislation on Commercial Property Assessed Clean Energy (C-PACE) loans to allow these loans to be extended to projects completed in the previous 2 years; it also expressly excludes residential buildings of less than 5 units and residential condominiums. Passed House 61-38; passed Senate 26-12-1. It now goes to the Governor.

HB2001 (Helmer) requires state and local government buildings to be constructed or renovated to include electric vehicle charging infrastructure and the capability of tracking energy efficiency and carbon emissions. Local governments are authorized to adopt even more stringent requirements. Passed the House 53-45; reported from Senate General Laws with an amendment delaying its effectiveness to 2023 for localities with populations under 100,000; referred to Finance. 

HB2227 (Kory) and SB1224 (Boysko) originally required the Board of Housing and Community Development to adopt amendments to the Uniform Statewide Building Code within one year of publication of a new version of the International Code Council’s International Energy Conservation Code (IECC) to address changes related to energy efficiency and conservation. The bill would have required the Board to adopt Building Code standards that are at least as stringent as those contained in the new version of the IECC. It turns out the homebuilders who oppose higher efficiency standards have more clout with committee chairs David Bulova in the House and George Barker in the Senate than consumer and environmental advocates do. The Senate bill never even got a hearing in committee. After much negotiation, the amended House bill now merely requires the Housing Board to “consider” adopting amendments “at least as stringent as those contained” in the latest IECC, and must “assess the public health, safety, and welfare benefits” involved, “including potential energy savings and air quality benefits over time compared to the cost of initial construction.” Republicans still wouldn’t vote for it, so it passed the House only on a party-line vote of 55-45. In the Senate, it passed General Laws 8-4 but was then sucked over to Finance on the pretense that it would cost money. Once again, this is either incompetence on someone’s part or a deliberate effort to gum up the process of legislating. I’ll just note that a great many bills incorrectly hauled into Finance are ones opposed by that committee’s senior Republican, Tommy Norment.

Financing

HB1919 (Kory) authorizes a locality to establish a green bank to finance clean energy investments. Fairfax County has requested this authority. Passed the House 55-43 on another party-line vote.  Passed the Senate with a substitute 25-13. The substitute does not appear to me to hurt the bill, but the House will have to agree to it, or go to conference. 

Fossil fuels 

HB1834 (Subramanyam) and SB1247 (Deeds) originally required owners of carbon-emitting power plants to conduct a study at least every 18 months to determine whether the facility should be retired; and to give notice of any decision to retire a facility to state and local leaders within 14 days. Both bills were amended so that the retirement analysis is now just a part of the integrated resource planning process of investor-owned utilities, currently every 3 years, leaving out other plant owners like ODEC. With further amendments, both bills have passed both chambers unanimously and will go to the Governor.

HB1899 (Hudson) and SB1252 (McPike) sunset the coal tax credits, because it is absolutely crazy that Virginia continues to subsidize coal mining while we’ve committed to close coal plants. Amended to give the coal companies one more year of subsidies before the program ends January 1, 2022. HB1899 passed the House 54-45 and the Senate 21-17 (Republican Hanger voting with Democrats); SB1252 passed the Senate 22-17 and House 55-45. It now goes to the Governor.

SB1265 (Deeds) makes it easier for DEQ to inspect and issue stop-work orders during gas pipeline construction. An amendment slightly weakened the bill before it passed the Senate 38-0. It has reported from House Ag. and should now be before the full House.

SB1311 (McClellan) originally required DEQ to revise erosion and sediment control plans or stormwater management plans when a stop work order has been issued for violations related to pipeline construction. The bill has been amended significantly and the stop-work language removed. It does require pipeline applicants to submit detailed erosion and sediment control plans, and expands the applicability of the requirement to areas with slopes with a grade above 10 percent, a number that is currently 15 percent. Passed the Senate 20-17. In House subcommittee it picked up a new substitute and that was reported out of committee. If that passes the full House it will need to go back to the Senate. I’m told negotiations on the language continue.

Climate bills 

HB2330 (Kory) is the legislation the SCC asked for to provide guidance on the Percentage of Income Payment Program under the Virginia Clean Economy Act. This turned out to be harder than one would have thought for a bill that was just supposed to help implement a section of a previous year’s bill. With some amendments it passed the House 54-46, the usual party-line split except that Democrat Sam Rasoul joined the Rs. It passed the Senate 20-19 but only with a substitute saying it won’t take effect unless passed again next year. That’s the equivalent of voting it down, except that in this case it gives the bill a chance to go to a conference committee to work out the remaining concerns.  

SB1282 (Morrissey) directs DEQ to conduct a statewide greenhouse gas inventory, to be updated and published every four years. Passed the Senate 22-16. (It picked up one Republican vote: Jill Vogel.) It has reported from House Ag. 13-8 on a party-line vote and now goes to the floor.

SB1284 (Favola) changes the name of the Commonwealth Energy Policy to the Commonwealth Clean Energy Policy, and streamlines the language without making major changes to the policies set out last year in Favola’s successful SB94. That bill overhauled the CEP, which until then had been a jumble of competing priorities, and established new targets for Virginia to achieve 100% carbon-free electricity by 2040 and net-zero carbon economy-wide by 2045. This year’s bill shows the Northam Administration is now fully on board, and the result is a policy statement that is more concise and coherent. Amendments make the bill slightly more friendly to biomass and natural gas than the introduced bill had been, but it remains an improvement on existing law. Senator Norment, who opposed last year’s bill as well as this year’s, tried to run out the clock on it by getting it referred to Finance after it was reported from Commerce and Labor, but Finance promptly reported it. It passed the Senate 21-18 (party line) and the House 55-45.

SB1374 (Lewis) would set up a Carbon Sequestration Task Force to consider methods of increasing carbon sequestration in the natural environment, establish benchmarks, and identify carbon markets. Passed the Senate 38-0 and the House 79-20 with a couple of very minor amendments that the Senate agreed to, so this now goes to the Governor.

Utility reform

The reform category was well-populated at halftime, but that was then, and this is two weeks later. In the interim, Senate Commerce and Labor met—first the subcommittee, whose five members expressed great concern about harm to Dominion Energy’s profits and none about ratepayers getting fleeced, then the full committee, which wasn’t much better. All the bills in this committee can now be found in our graveyard section at the end.

EVs and Transportation energy

HB1850 (Reid) increases the roadway weight limit for electric and natural gas-fueled trucks to accommodate the extra weight of batteries or natural gas fuel systems. It picked up minor amendments along the way and easily passed the House and Senate with no dissenting votes (until Delegate Cole voted nay at the end, possibly a recording error). The bill goes now to the Governor.

HB1965 (Bagby) is the Clean Car Standard bill, which would require manufacturers to deliver more electric vehicles to Virginia dealers beginning in 2025. To get agreement from the dealers, this bill was “packaged” with HB1979 (rebates for EVs), which dealers wanted to ensure the customers would be there. Passed the House 55-44. Senator Newman made a last-ditch effort to kill the bill through amendments on the Senate floor, which were rejected. Passed the Senate 21-15, with a few Republicans not voting.

HB1979 (Reid) creates a rebate program for new and used electric vehicles. Passed the House 55-45. Senate Finance amended it to require it to be reenacted next year, and that substitute bill passed the Senate 21-17. The different House and Senate versions will go to conference, where advocates hope to get the reenactment clause stricken; if not, the bill is dead.

HB2118 (Keam) establishes an Electric Vehicle Grant Fund and Program to assist school boards in replacing diesel buses with electric, installing charging infrastructure, and developing workforce education to support the electric buses. It seems to be an empty fund. Passed the House 55-44-1. In the Senate, the bill reported from Finance but ran into trouble on the floor. Reportedly Senator Lucas did away with the bill by “rolling it into” her SB1380 in spite of their dissimilarities. This is not yet reflected in LIS, and the floor vote is being delayed from day to day.

HB2282 (Sullivan) directs the SCC to develop and report on policy proposals to accelerate transportation electrification in the Commonwealth. The bill also limits how utilities get reimbursed for investments in transportation electrification: they must recover costs through normal rates for generation and distribution, and not through rate adjustment clauses or customer credit reinvestment offsets. Passed the House 76-23, passed the Senate 38-1 (yes, that was Chase dissenting again). Now goes to the Governor.

HJ542 (McQuinn) requests a statewide study of transit equity and modernization. Passed the House 77-19. Senate Finance amended it to change who is to do the study, then agreed to it by a voice vote. 

SB1223 (Boysko) adds a requirement to the Virginia Energy Plan to include an analysis of electric vehicle charging infrastructure and other infrastructure needed to support the 2045 net-zero carbon target in the transportation sector. Passed the Senate 22-15, passed the House 57-42; now off to the Governor.

SB1380 (Lucas) authorizes electric utilities to partner with school districts on electric school buses. The utility (read: Dominion) can own the batteries and the charging infrastructure, earning its usual rate of return from ratepayers, and use the batteries for grid services and peak shaving. Passed the Senate 33-4. The House amended the bill to make it better but then voted it down anyway by a vote of 34-53. After that, the House agreed to reconsider the vote and pass it by for the day. . . and the next day, too. Lucas seems to expect to change minds by her power move to eliminate competition from the Keam bill. 

Code update

SB1453 (Edwards) revises Titles 45.1 and 67 of the Virginia Code. “The bill organizes the laws in a more logical manner, removes obsolete and duplicative provisions, and improves the structure and clarity of statutes pertaining to” mining and energy. The bill is a recommendation of the Virginia Code Commission. Passed the Senate 39-0 and the House 100-0. Goes next to Governor.

DEAD AND BURIED

In numerical order, House bills first

HB1914 (Helmer) changes “shall” to “may” in a number of places, giving the SCC discretion over when to count utility costs against revenues. HB1835 (Subramanyam) was incorporated into this bill. Passed the House 60-39. I had hopes this one might survive in the Senate due to its elegant simplicity, but no. Killed in C&L 8-7, with Saslaw, Lucas, Barker, Lewis and Mason joining Republicans Norment, Newman and Obenshain to PBI (pass by indefinitely). The 7 senators who voted not to kill were Spruill, Edwards, Deeds, Marsden, Ebbin, Surovell and Bell.

HB1934 (Simon) requires local approval for construction of any gas pipeline over 12 inches in diameter in a residential subdivision. Killed in committee.

HB1937 (Rasoul) was this year’s version of the Green New Deal Act. But like last year, it never even got a hearing, in part because it rocked too many boats, and in part because it was a lousy bill.

HB1984 (Hudson) gives the SCC added discretion to determine a utility’s fair rate of return and to order rate increases or decreases accordingly. Passed the House 64-35, killed in Senate C&L 11-4. Only Democrats Edwards, Deeds, Ebbin and Bell voted against the motion to PBI.

HB2048 (Bourne) restores the right of customers to buy renewable energy from any supplier even once their own utility offers a renewable energy purchase option.  In addition, third party suppliers of renewable energy are required to offer a discounted renewable energy product to low-income customers, saving them at least 10% off the cost of regular utility service.  Passed the House 67-32, killed in Senate Commerce and Labor due to the obsequiousness of the committee members. 

HB2049 (Bourne) would prevent utilities from using overearnings for new projects instead of issuing refunds. Passed the House 56-44, killed in Senate Commerce and Labor 11-4. Senator Spruill, ordinarily a secure vote for Dominion, joined Deeds, Ebbin and Bell in dissent. 

HB2067 (Webert) lowers from 150 MW to 50 MW the maximum size of a solar facility that can use the Permit by Rule process. Tabled in House committee.

HB2160 (Tran) gives the SCC greater authority to determine when a utility has overearned and gives the Commission greater discretion in determining whether to raise or lower rates and order refunds. It also requires 100% of overearnings to be credited to customers’ bills, instead of 70%, as is the case today. Passed the House 62-38, killed in Senate Commerce and Labor 12-3.

HB2200 (Jones) makes a number of changes to SCC rate review proceedings, including setting a fair rate of return, requiring 100% of overearnings to be credited to customers’ bills, and eliminating the $50 million limit on refunds to Dominion customers in the next rate review proceedingHB2057 (Ware) was incorporated into this bill, and it passed the House 63-37. Killed in Senate Commerce and Labor. This time Republican Steve Newman joined Deeds, Ebbin and Bell in dissent, though Newman had voted to kill the similar SB1292. 

HB2265 (Freitas) would repeal provisions of the VCEA phasing out carbon emissions from power plants, repeal the restrictions on SCC approval of new carbon-emitting facilities, and nix the provisions declaring wind, solar, offshore wind and energy storage to be in the public interest; however it also would declare that planning and development of new nuclear generation is in the public interest. Killed in subcommittee.

HB2281 (Ware) would exempt certain companies that use a lot of energy from paying for their share of the costs of Virginia’s energy transition under the VCEA, driving up costs for all other ratepayers. Killed in subcommittee.

HB2292 (Cole) was labeled the fossil fuel moratorium bill but included many other parts of the Green New Deal as well. It suffered the same fate, and for the same reasons. 

SB1292 (McClellan) was the only utility reform bill to begin in the Senate instead of the friendlier House. It would require 100% of utility overearnings to be credited to customers’ bills, instead of 70%, as is the case today. Killed in Senate Commerce and Labor 11-3, with Deeds, Mason and Bell the dissenters.

SB1463 (Cosgrove) would create a loophole to let HOAs to ban solar once again. It turned out even the HOA lobby didn’t like the bill. It was stricken by the patron in committee.