VirginiaHB11022026 Regular SessionHouseWALLET

Renewable energy portfolio standard program; energy from geothermal heating/cooling systems, report.

Sponsored By: JJ Singh (Democratic)

Signed by Governor

Summary

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 SB 252.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

10 provisions identified: 4 benefits, 3 costs, 3 mixed.

Utilities expand storage with supplier requirements

By December 31, 2035, each Phase I utility must seek approval for 400 megawatts of storage; Phase II utilities need 2,700. Individual projects generally cannot exceed 500 megawatts, or 800 for Phase II, unless the Commission approves more. At least 35% of facilities placed in service after July 1, 2020, must be bought from or owned by nonutility parties. Plans must aim to place at least 10% of projects on the customer's side of the meter. The Commission must set interim targets, competitive bidding rules, customer-side storage incentives, alternatives to grid expansion, and peak-demand reduction programs.

Shortfall payments fund community energy jobs

Virginia's Department of Energy deposits all renewable deficiency payments into an interest-bearing account. It directs 50% to job training and 30% to renewable energy programs in historically economically disadvantaged communities. Another 16% supports energy-saving measures in public facilities, and 4% pays for administration. The law sets no total funding amount.

Electric cooperatives receive a statutory exemption

Entities organized under Virginia's electric cooperative law are exempt from the requirements of Code § 56-585.1. This is an exemption for those entities, not a direct household exemption. The law does not specify a change to their customers' electricity bills.

Geothermal and water power earn credits

Qualifying Virginia geothermal systems earn renewable energy certificates for space heating, cooling, and water heating. Their thermal energy is converted from British thermal units to kilowatt-hours, with verification set by the State Corporation Commission. Systems must use an electric geothermal heat pump, a closed or environmentally safe open loop, and meet current Energy Star standards. They must replace less efficient equipment and not feed electricity back to the grid; replaced cooling equipment need not fail Energy Star standards. Virginia falling-water facilities also qualify for the renewable program if they began commercial operations before July 1, 2024.

Some large buyers avoid renewable charges

Certified commercial and industrial buyers with prior-year combined loads above 25 megawatts get proportional exemptions from specified renewable charges. Qualifying resources must be in the PJM grid region and have started operating after January 1, 2015. Annual renewable credit purchases or storage demand determine the exemption; credit-only buyers face limits, and some offshore-wind costs remain payable. Eligibility is checked annually, and costs buyers decline cannot shift to other customers. A separate Phase II exemption requires enrollment in the specified experimental tariff and renewable facilities agreement on March 1, 2020, plus at least 2,000 renewable attributes purchased yearly. Phase II customers also avoid specified charges while using competitive supply if their 2019 peak demand exceeded 100 megawatts and they chose that supply before April 1, 2019. Phase I customers qualify for that exemption if they chose competitive supply before February 1, 2019. These competitive-supply customers' loads are excluded from utility renewable requirements while they do not buy electricity from the utility.

Utilities face rising renewable shortfall payments

Renewable compliance deficiency payments owed by Phase I and Phase II utilities increase 1% each year after 2021. The stated base payments are $45 per megawatt-hour generally and $100 for geothermal heating and cooling credits. A $75 base applies to Virginia solar, wind, or anaerobic digester credits from resources of 1 megawatt or less. The law does not specify a household bill increase from these payments.

Utilities face bidding and equipment rules

Phase I and Phase II utilities seeking approval for covered solar facilities must show they used the required competitive process. For covered construction projects, utilities must also competitively buy equipment from Virginia- or U.S.-based manufacturers. That equipment must use materials or parts made in Virginia or the United States. The domestic sourcing rule applies only when equipment is reasonably available and competitively priced.

Appraisers must learn energy upgrade valuation

The Real Estate Appraiser Board must require continuing education for all licensed appraisers on valuing energy-saving improvements. Training covers value increases tied to lower building energy costs from solar, geothermal, and solar water-heating investments. The Board's report is due November 1, 2026. The law does not guarantee higher home values or a household payment.

Customers pay renewable costs with oversight

Virginia's Phase I and Phase II utilities recover eligible renewable generation, storage, and credit costs through required customer charges. These charges apply even when customers use another supplier, unless a legal exemption applies. The State Corporation Commission approves annual updates and checks costs against benefits for customers using other suppliers. Those supplier-choice tariffs began by January 1, 2021; utilities serving multiple jurisdictions charge Virginia customers only Virginia-allocated costs. The Commission must also ensure fair sharing of grid costs for covered new energy sources.

Utilities buy geothermal credits with safeguards

Geothermal credits must supply 0.5% of utilities' renewable compliance credits in 2027, 0.75% in 2028, and 1% from 2029 onward. Phase II credits must come from Virginia systems; Phase I credits must come from systems in their own service areas. Utilities must seek offers every quarter when geothermal credits are required. A utility avoids the specified $100-per-megawatt-hour deficiency payment for required credits not offered at or below $100 per megawatt-hour. It must replace that excused shortfall with other eligible credits, subject to the specified $45-per-megawatt-hour deficiency payment.

Sponsors & Cosponsors

Sponsor

  • JJ Singh

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 243 • No: 80

House vote • 3/2/2026

Senate substitute agreed to by House

Yes: 68 • No: 31

Senate vote • 2/26/2026

Commerce and Labor Substitute agreed to

Yes: 0 • No: 0

Senate vote • 2/26/2026

Passed Senate with substitute

Yes: 24 • No: 16

Senate vote • 2/25/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 2/25/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/23/2026

Reported from Commerce and Labor with substitute

Yes: 10 • No: 5

House vote • 2/9/2026

Read third time and passed House

Yes: 71 • No: 27

House vote • 2/3/2026

Reported from Labor and Commerce with amendment(s)

Yes: 21 • No: 1

House vote • 1/29/2026

Subcommittee recommends reporting with amendment(s)

Yes: 9 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0733)

    4/13/2026Governor
  2. Approved by Governor-Chapter 733 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (HB1102)

    4/6/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  5. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026House
  6. Bill text as passed House and Senate (HB1102ER)

    3/9/2026House
  7. Enrolled

    3/9/2026House
  8. Signed by President

    3/9/2026Senate
  9. Signed by Speaker

    3/9/2026House
  10. Senate substitute agreed to by House (68-Y 31-N 0-A)

    3/2/2026House
  11. Passed Senate with substitute (24-Y 16-N 0-A)

    2/26/2026Senate
  12. Commerce and Labor Substitute agreed to

    2/26/2026Senate
  13. Engrossed by Senate - committee substitute

    2/26/2026Senate
  14. Read third time

    2/26/2026Senate
  15. Passed by for the day Block Vote (Voice Vote)

    2/25/2026Senate
  16. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    2/25/2026Senate
  17. Rules suspended

    2/25/2026Senate
  18. Committee substitute printed 26108403D-S1

    2/24/2026Senate
  19. Reported from Commerce and Labor with substitute (10-Y 5-N)

    2/23/2026Senate
  20. Referred to Committee on Commerce and Labor

    2/10/2026Senate
  21. Constitutional reading dispensed (on 1st reading)

    2/10/2026Senate
  22. Read third time and passed House (71-Y 27-N 0-A)

    2/9/2026House
  23. Fiscal Impact Statement from State Corporation Commission (HB1102)

    2/8/2026House
  24. Engrossed by House as amended

    2/6/2026House
  25. committee amendments agreed to

    2/6/2026House

Bill Text

Related Bills

Back to State Legislation