# Virginia HB397: Clean energy and community flood preparedness; market-based trading program.

Virginia HB397, Clean energy and community flood preparedness; market-based trading program., is a 2026 Regular Session House bill sponsored by Charniele L. Herring (Democratic); status signed, last action 2026-04-13 (Acts of Assembly Chapter text (CHAP0920)); PRIA reads it as touching household money (as of 2026-10-12).

- Canonical: https://policyrisk.com/state-bill/VA-HB397-2026
- As of: 2026-10-12
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Virginia HB397
- State: Virginia
- Session: 2026 Regular Session
- Title: Clean energy and community flood preparedness; market-based trading program.
- Status: signed
- Chamber: House
- Introduced: 2026-01-12
- Last action: 2026-04-13, Acts of Assembly Chapter text (CHAP0920)
- Sponsor: Charniele L. Herring (Democratic)
- Cosponsors: 0
- Touches household money: yes
- Roll calls: 7 (154 yes, 70 no in all)
- Economic provisions PRIA read: 4

## Summary

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.

## Bill overview: provisions PRIA read

- Energy-saving funding for low-income households: benefit, medium. Subject to Virginia's constitution, 50% of carbon-auction revenue funds low-income energy-saving programs, including programs for eligible housing developments. The housing department approves funding proposals, and the energy department provides technical help upon request. A separate 2% share pay…
- Flood preparedness funding for Virginia communities: benefit, medium. Subject to Virginia's constitution, 45% of carbon-auction revenue goes to the designated flood fund account. This money helps localities and residents facing repeated floods, rising seas, or flooding from severe weather. The law sets no total funding amount or individual household payment.
- Carbon allowance duties for long-term energy buyers: cost, low. Buyers under qualifying energy-conversion or energy-tolling contracts must acquire the covered power unit's required carbon allowances. The contract's primary term must last at least 20 years. Buyers must supply fuel and receive all rated generating capacity and associated electricity for the entir…
- Carbon trading rules for Virginia power plants: mixed, medium. Virginia requires a carbon trading program to cut power-plant pollution, following the Regional Greenhouse Gas Initiative. The environmental agency runs the program and auctions its emissions allowances. It must seek to sell 100% of allowances issued each year. Exceptions apply when selling all har…

## Sponsors and cosponsors

- Sponsor: Charniele L. Herring (Democratic), House

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2026-03-02 | Senate | Passed Senate | pass | 21 | 19 |   |
| 2026-02-26 | Senate | Constitutional reading dispensed Block Vote (on 2nd reading) | pass | 40 | 0 |   |
| 2026-02-26 | Senate | Passed by for the day Block Vote (Voice Vote) | pass | 0 | 0 |   |
| 2026-02-24 | Senate | Reported from Agriculture, Conservation and Natural Resources | pass | 8 | 6 |   |
| 2026-02-03 | House | Read third time and passed House | pass | 63 | 35 |   |
| 2026-01-28 | House | Reported from Agriculture, Chesapeake and Natural Resources with substitute | pass | 15 | 7 |   |
| 2026-01-21 | House | Subcommittee recommends reporting with substitute | pass | 7 | 3 |   |

## Actions (31)

- 2026-04-13: Acts of Assembly Chapter text (CHAP0920) (Governor)
- 2026-04-13: Approved by Governor-Chapter 920 (effective 7/1/2026) (Governor)
- 2026-03-10: Governor's Action Deadline 11:59 p.m., April 13, 2026 (Governor)
- 2026-03-10: Enrolled Bill communicated to Governor on March 10, 2026 (House)
- 2026-03-05: Fiscal Impact Statement from Department of Planning and Budget (HB397) (House)
- 2026-03-05: Bill text as passed House and Senate (HB397ER) (House)
- 2026-03-05: Enrolled (House)
- 2026-03-05: Signed by President (Senate)
- 2026-03-05: Signed by Speaker (House)
- 2026-03-02: Passed Senate (21-Y 19-N 0-A) (Senate)
- 2026-02-27: Passed by for the day (Senate)
- 2026-02-27: Read third time (Senate)
- 2026-02-26: Passed by for the day Block Vote (Voice Vote) (Senate)
- 2026-02-26: Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A) (Senate)
- 2026-02-26: Rules suspended (Senate)
- 2026-02-24: Reported from Agriculture, Conservation and Natural Resources (8-Y 6-N) (Senate)
- 2026-02-04: Referred to Committee on Agriculture, Conservation and Natural Resources (Senate)
- 2026-02-04: Constitutional reading dispensed (on 1st reading) (Senate)
- 2026-02-03: Read third time and passed House (63-Y 35-N 0-A) (House)
- 2026-02-02: Engrossed by House - committee substitute (House)
- 2026-02-02: committee substitute agreed to (House)
- 2026-02-02: Read second time (House)
- 2026-01-30: Read first time (House)
- 2026-01-29: Fiscal Impact Statement from Department of Planning and Budget (HB397) (House)
- 2026-01-28: Committee substitute printed 26105867D-H1 (House)
- 2026-01-28: Reported from Agriculture, Chesapeake and Natural Resources with substitute (15-Y 7-N) (House)
- 2026-01-21: House subcommittee offered (House)
- 2026-01-21: Subcommittee recommends reporting with substitute (7-Y 3-N) (House)
- 2026-01-19: Assigned HACNR sub: Natural Resources (House)
- 2026-01-12: Referred to Committee on Agriculture, Chesapeake and Natural Resources (House)
- 2026-01-12: Prefiled and ordered printed; Offered 01-14-2026 26104232D (House)

## Bill text

- Chaptered, 2026-04-13: [HTML](https://lis.blob.core.windows.net/files/1224631.HTML), [PDF](https://lis.blob.core.windows.net/files/1224630.PDF)
- Enrolled, 2026-03-05: [HTML](https://lis.blob.core.windows.net/files/1193744.HTML), [PDF](https://lis.blob.core.windows.net/files/1193743.PDF)
- Substitute, 2026-01-28: [HTML](https://lis.blob.core.windows.net/files/1100561.HTML), [PDF](https://lis.blob.core.windows.net/files/1100560.PDF)
- Substitute, 2026-01-21: [HTML](https://lis.blob.core.windows.net/files/1092526.HTML), [HTML](https://lis.blob.core.windows.net/files/1093230.HTML), [PDF](https://lis.blob.core.windows.net/files/1092525.PDF), [PDF](https://lis.blob.core.windows.net/files/1093229.PDF)
- Introduced, 2026-01-12: [HTML](https://lis.blob.core.windows.net/files/1084276.HTML), [PDF](https://lis.blob.core.windows.net/files/1084275.PDF)

## Related bills

- HB5: Employment; paid sick leave, civil penalties. (signed)
- SB199: Employment; paid sick leave, civil penalties. (signed)
- HB95: Va. Residential Landlord and Tenant Act; landlord remedies, noncompliance with rental agreement. (signed)
- HB1393: Electric utilities; pilot program for energy assistance and weatherization for certain individuals. (signed)
- HB834: Virginia Residential Landlord and Tenant Act; fire or casualty damage, termination by landlord. (signed)
- HB675: Protection of employees; coercion or threat based on immigration status, civil penalty. (signed)

## Sources
- [Chaptered (HTML)](https://lis.blob.core.windows.net/files/1224631.HTML)
- [Chaptered (PDF)](https://lis.blob.core.windows.net/files/1224630.PDF)
- [Enrolled (HTML)](https://lis.blob.core.windows.net/files/1193744.HTML)
- [Enrolled (PDF)](https://lis.blob.core.windows.net/files/1193743.PDF)
- [Substitute (HTML)](https://lis.blob.core.windows.net/files/1100561.HTML)
- [Substitute (PDF)](https://lis.blob.core.windows.net/files/1100560.PDF)
- [Substitute (HTML)](https://lis.blob.core.windows.net/files/1092526.HTML)
- [Substitute (HTML)](https://lis.blob.core.windows.net/files/1093230.HTML)
- [Substitute (PDF)](https://lis.blob.core.windows.net/files/1092525.PDF)
- [Substitute (PDF)](https://lis.blob.core.windows.net/files/1093229.PDF)
- [Introduced (HTML)](https://lis.blob.core.windows.net/files/1084276.HTML)
- [Introduced (PDF)](https://lis.blob.core.windows.net/files/1084275.PDF)

## Related
- [HB5: Employment; paid sick leave, civil penalties.](https://policyrisk.com/state-bill/VA-HB5-2026)
- [SB199: Employment; paid sick leave, civil penalties.](https://policyrisk.com/state-bill/VA-SB199-2026)
- [HB95: Va. Residential Landlord and Tenant Act; landlord remedies, noncompliance with…](https://policyrisk.com/state-bill/VA-HB95-2026)
- [HB1393: Electric utilities; pilot program for energy assistance and weatherization for…](https://policyrisk.com/state-bill/VA-HB1393-2026)
- [HB834: Virginia Residential Landlord and Tenant Act; fire or casualty damage, terminat…](https://policyrisk.com/state-bill/VA-HB834-2026)
- [HB675: Protection of employees; coercion or threat based on immigration status, civil…](https://policyrisk.com/state-bill/VA-HB675-2026)
- [Virginia bills](https://policyrisk.com/states/virginia/bills)
- [Virginia state hub](https://policyrisk.com/states/virginia)
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Source: PRIA, https://policyrisk.com/state-bill/VA-HB397-2026 (as of 2026-10-12).