All Roll Calls
Yes: 154 • No: 70
Sponsored By: Charniele L. Herring (Democratic)
Became Law
Clean energy and community flood preparedness; market-based trading program. Directs the Department of Environmental Quality and the State Air Pollution Control Board to establish and maintain a market-based trading program consistent with the Regional Greenhouse Gas Initiative program, as defined in existing law, to reduce carbon dioxide emissions from electricity generating units in the Commonwealth. This bill is identical to SB 802.
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3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Money from carbon allowance auctions goes into a special, interest‑bearing state account. The state can spend it for these uses without another budget vote. 45% helps localities and residents with flooding and sea level rise. 50% goes to Housing and Community Development for low‑income energy efficiency, including eligible housing; the Department of Energy provides technical help. 3% funds DEQ program costs and statewide climate planning. 2% helps Housing and Energy run those low‑income programs; money left in the Housing account does not revert.
If Virginia fully participates in RGGI or DEQ implements the carbon trading rule, some long power contracts face a new duty. A covered deal is an energy conversion or tolling agreement with a primary term of 20 years or more. The purchaser must deliver the fuel and receive all the unit’s output. Under those deals, the purchaser must buy the CO2 allowances for that unit.
The law creates a market-based carbon program for Virginia power plants. The Department of Environmental Quality runs it and follows the Regional Greenhouse Gas Initiative model. The rule uses the Board’s regulation adopted April 19, 2019 (published May 27, 2019) without another rulemaking step. DEQ runs allowance auctions and aims to sell 100% each year. It can sell fewer if needed to protect allowance value, avoid a net loss for consumers, or stay consistent with RGGI.
Charniele L. Herring
Democratic • House
There are no cosponsors for this bill.
All Roll Calls
Yes: 154 • No: 70
Senate vote • 3/2/2026
Passed Senate
Yes: 21 • No: 19
Senate vote • 2/26/2026
Constitutional reading dispensed Block Vote (on 2nd reading)
Yes: 40 • No: 0
Senate vote • 2/26/2026
Passed by for the day Block Vote (Voice Vote)
Yes: 0 • No: 0
Senate vote • 2/24/2026
Reported from Agriculture, Conservation and Natural Resources
Yes: 8 • No: 6
House vote • 2/3/2026
Read third time and passed House
Yes: 63 • No: 35
House vote • 1/28/2026
Reported from Agriculture, Chesapeake and Natural Resources with substitute
Yes: 15 • No: 7
House vote • 1/21/2026
Subcommittee recommends reporting with substitute
Yes: 7 • No: 3
Acts of Assembly Chapter text (CHAP0920)
Approved by Governor-Chapter 920 (effective 7/1/2026)
Governor's Action Deadline 11:59 p.m., April 13, 2026
Enrolled Bill communicated to Governor on March 10, 2026
Fiscal Impact Statement from Department of Planning and Budget (HB397)
Bill text as passed House and Senate (HB397ER)
Enrolled
Signed by President
Signed by Speaker
Passed Senate (21-Y 19-N 0-A)
Passed by for the day
Read third time
Passed by for the day Block Vote (Voice Vote)
Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)
Rules suspended
Reported from Agriculture, Conservation and Natural Resources (8-Y 6-N)
Referred to Committee on Agriculture, Conservation and Natural Resources
Constitutional reading dispensed (on 1st reading)
Read third time and passed House (63-Y 35-N 0-A)
Engrossed by House - committee substitute
committee substitute agreed to
Read second time
Read first time
Fiscal Impact Statement from Department of Planning and Budget (HB397)
Committee substitute printed 26105867D-H1
Chaptered
4/13/2026
Enrolled
3/5/2026
Substitute
1/28/2026
Substitute
1/21/2026
Introduced
1/12/2026
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