VirginiaHB3692026 Regular SessionHouseWALLET

Electric utilities; renewable portfolio standard program, zero-carbon electricity, etc.

Sponsored By: David A. Reid (Democratic)

Became Law

Summary

Electric utilities; renewable energy portfolio standard; zero-carbon electricity; accelerated clean energy buyers. Revises the conditions under which accelerated clean energy buyers, defined in existing law as accelerated renewable energy buyers, may contract with Appalachian Power or Dominion Energy Virginia to obtain renewable energy certificates (RECs). The bill exempts an accelerated clean energy buyer obtaining capacity, energy, or RECs from qualifying resources or facilities from the assignment of non-bypassable costs associated with compliance with the renewable portfolio standard program based on the amount and type of renewable energy certificates obtained in proportion to such accelerated clean energy buyer's total electric energy consumption. This bill is identical to SB 598.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 2 costs, 4 mixed.

New renewable charges on power bills

The law lets utilities collect renewable and zero‑carbon program costs from every retail customer as a non‑bypassable charge. This applies even if you buy from a third‑party supplier; tariffs to collect these costs began January 1, 2021 and true up each year. Utilities also recover the cost of RECs, storage, and new projects put on them after July 1, 2020 through base rates or a rider. These charges can raise your electric bill. Some large certified buyers and certain other classes have separate exemptions.

Big build-out of solar and storage

Utilities must secure large amounts of new solar, wind, and storage. Phase I must add 600 MW of solar or onshore wind by 2030; Phase II must add 16,100 MW by 2035 and may add up to 5,200 MW of offshore wind. Phase I and II must also add 400 MW and 2,700 MW of storage by 2035, with per‑project size caps (500 MW; up to 800 MW for one Phase II project) and at least 35% from non‑utility owners. Utilities file yearly plans, and the Commission decides within six months and adopted storage regulations by January 1, 2021. Annual competitive RFPs are required, with a preference for Virginia and U.S. equipment when competitively priced; new solar CPCN filings must show competitive procurement.

Options and bill relief for large users

Large power users can be certified as accelerated clean energy buyers if their prior‑year load is over 25 MW. Certified buyers can contract for RECs, bundled zero‑carbon products, and, starting July 1, 2026, zero‑carbon electricity. Their assigned non‑bypassable RPS charges drop in proportion to the energy they obtain under these contracts, and their load and RECs do not count toward the utility’s targets. Contracts that do not shift extra costs to others are not treated as special rates. Some pre‑2019 competitive‑supply customers are also excluded from these charges. Utilities and buyers certify yearly, and the Commission sets the rules; limits apply for energy from PJM facilities outside Virginia and for REC‑only deals.

Penalties for missing renewable targets

If a utility or supplier falls short, it pays $45 per MWh of shortfall ($75 per MWh for required small in‑state solar, wind, or digester projects). These amounts rise 1% each year after 2021. Utilities can recover these payments in customer rates. The money goes to a state account: 50% for job training in disadvantaged communities, 16% for public facility efficiency, 30% for renewable programs in disadvantaged communities, and 4% for administration.

100% clean power targets over time

The law creates a Renewable Portfolio Standard for Phase I and Phase II utilities. Yearly targets rise to 100% renewable power by 2045 for Phase I and 2050 for Phase II. From 2025, only eligible RECs count, and Phase II must get at least 75% of its RECs from Virginia projects. Utilities can bank extra RECs for up to five years to meet future targets. The section does not apply to entities organized under Chapter 9.1.

Coal and oil plants must retire

Utilities must retire oil‑fired units over 500 MW and most coal units by December 31, 2024, with limited exceptions. They must retire most remaining carbon‑emitting plants in Virginia by December 31, 2045; standalone biomass is excluded. A utility may ask the Commission to delay a retirement if electric service reliability would be at risk. These steps cut emissions but may change long‑term planning and costs.

Which projects count toward targets

The law lists which resources count toward the renewable targets. It includes in‑state solar and wind, some older hydro, Virginia waste‑to‑energy and landfill gas, certain biomass, and geothermal, including heating and cooling verified by the Commission. Phase II must also meet a 1% carve‑out with in‑state projects of 1 MW or smaller; at least 25% of that must be low‑income projects when available (schools can fill gaps), and no single site can exceed 3,000 kW. Hydropower that started before July 1, 2024 is eligible. Out‑of‑state renewable thermal or biomass RECs do not count.

Sponsors & Cosponsors

Sponsor

  • David A. Reid

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 313 • No: 9

House vote 3/2/2026

Senate substitute agreed to by House

Yes: 95 • No: 4

Senate vote 2/26/2026

Commerce and Labor Substitute agreed to

Yes: 0 • No: 0

Senate vote 2/26/2026

Passed Senate with substitute Block Vote

Yes: 40 • No: 0

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: 15 • No: 0

House vote 2/9/2026

Read third time and passed House

Yes: 94 • No: 3

House vote 2/3/2026

Reported from Labor and Commerce with substitute

Yes: 20 • No: 2

House vote 1/29/2026

Subcommittee recommends reporting with substitute

Yes: 9 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0043)

    3/31/2026Governor
  2. Approved by Governor-Chapter 43 (effective 7/1/2026)

    3/31/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

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

    3/10/2026House
  5. Enrolled

    3/5/2026House
  6. Bill text as passed House and Senate (HB369ER)

    3/5/2026House
  7. Enrolled

    3/5/2026House
  8. Signed by President

    3/5/2026Senate
  9. Signed by Speaker

    3/5/2026House
  10. Fiscal Impact Statement from State Corporation Commission (HB369)

    3/2/2026House
  11. Senate substitute agreed to by House (95-Y 4-N 0-A)

    3/2/2026House
  12. Passed Senate with substitute Block Vote (40-Y 0-N 0-A)

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

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

    2/26/2026Senate
  15. Read third time

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

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

    2/25/2026Senate
  18. Rules suspended

    2/25/2026Senate
  19. Committee substitute printed 26108329D-S1

    2/24/2026Senate
  20. Senate committee offered

    2/23/2026Senate
  21. Reported from Commerce and Labor with substitute (15-Y 0-N)

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

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

    2/10/2026Senate
  24. Read third time and passed House (94-Y 3-N 0-A)

    2/9/2026House
  25. Engrossed by House - committee substitute

    2/6/2026House

Bill Text

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