VirginiaHB11022026 Regular SessionHouseWALLET

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

Sponsored By: JJ Singh (Democratic)

Became Law

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.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 0 costs, 6 mixed.

Renewable charge on power bills

All customers in a utility’s Virginia service area pay a non-bypassable charge for renewable portfolio standard (RPS) costs, no matter their power supplier. Some large commercial or industrial customers with more than 25 megawatts of total load in the prior year can be certified as accelerated buyers and get proportional exemptions when they buy renewable energy certificates (RECs) or capacity; their RECs do not count toward the utility’s RPS, and their load is excluded. Phase II customers with more than 100 megawatts of 2019 peak demand who chose a competitive supplier before April 1, 2019 are not charged while they buy from that supplier; their load is also excluded.

Coal and oil power units retired

Utilities must retire oil‑fueled units over 500 MW and all coal‑fired units in Virginia by December 31, 2024, with narrow exceptions. By December 31, 2045, utilities must retire other Virginia units that emit carbon when fuel is burned, except certain biomass units that do not co‑fire with coal. A utility can ask the Commission for relief if retirements would threaten the reliability or security of electric service.

Penalties and funds for REC shortfalls

If a supplier cannot meet its REC obligation, it must pay per megawatt‑hour of shortfall: $45/MWh generally, $75/MWh for small (≤1 MW) solar, wind, or anaerobic systems, and $100/MWh for geothermal heating and cooling shortfalls. These amounts rise by 1% each year after 2021. Utilities must issue quarterly RFPs for geothermal RECs; they can avoid the geothermal payment if required RECs are not offered in each RFP at or below the deficiency price, but then must buy and retire other eligible RECs subject to the $45/MWh rate for the same amount. All payments go to a state account: 50% for job training in historically economically disadvantaged communities, 16% for public facility efficiency, 30% for renewable energy programs in those communities, and 4% for administration.

Geothermal systems earn clean energy credits

Owners of geothermal heating and cooling systems in Virginia can now generate renewable energy certificates (RECs). RECs are based on energy output converted from BTUs to kilowatt‑hours, and the Commission sets how those RECs are verified. Starting with the 2027 compliance year, utilities must buy and retire geothermal RECs equal to 0.5% of total RECs (0.75% in 2028 and 1% in 2029 and after); Phase I utilities must source these from inside their service area. The Commission must report on geothermal REC buying and retirement by November 1, 2028.

Stronger RPS rules favor Virginia projects

Utilities must take part in Virginia’s RPS and retire renewable energy certificates (RECs) for sales to all retail customers. From 2021–2024, they can use certain RECs from Virginia or PJM; beginning in the 2025 compliance year, only RPS‑eligible RECs count. Starting in 2025, Phase II utilities must get at least 75% of their RECs from eligible resources located in Virginia. Each year, at least 1% of the RPS must come from in‑state projects of 1 MW or less (solar, wind, or anaerobic digestion), with no more than 3,000 kW per site or related sites; at least 25% of that 1% must be low‑income qualifying projects when available, otherwise projects on or next to public schools may be used. Utilities can bank extra RECs for the generation year and the next five years. Hydroelectric facilities in Virginia that start commercial operations before July 1, 2024 are eligible. The Commission adopts rules to run the program and verify compliance.

How utilities must buy clean power

From 2020 through 2035, each utility files a yearly plan to add new solar, onshore wind, and energy storage, and the Commission rules within six months. Each year, utilities run at least one public request for proposals for new solar and onshore wind, posted at least 45 days before closing with clear bid rules. Any petition to build a solar plant must show the project used the required competitive procurement. For projects, utilities must try to buy equipment from Virginia or U.S. manufacturers when items are reasonably available and competitively priced. Utilities must seek 400 MW of storage (Phase I) and 2,700 MW (Phase II) by December 31, 2035, with single projects generally capped at 500 MW (Phase II may do one up to 800 MW), and at least 35% of post–July 1, 2020 storage from non-utility owners or sellers.

Appraisers trained to value energy savings

The Real Estate Appraiser Board sets continuing education so all licensed appraisers learn how to value home price increases from lower energy bills due to solar, geothermal, and solar water heating. The Board must report on how it implemented this by November 1, 2026.

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

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