VirginiaHB6282026 Regular SessionHouseWALLET

Renewable energy portfolio standard program; requirements, power purchase agreements.

Sponsored By: Katrina Callsen (Democratic)

Became Law

Summary

Electric utilities; renewable energy portfolio standard program requirements; power purchase agreements. Amends certain renewable energy portfolio standard program requirements for Dominion Energy Virginia, including the annual percentage of program requirements to be met with solar, wind, or anaerobic digestion resources of one megawatt or less located in the Commonwealth. The bill changes from 2025 to 2027 the compliance year beginning in which at least 75 percent of renewable energy certificates used by Dominion Energy Virginia shall come from eligible resources located in the Commonwealth. The bill also removes the requirement for a solar-powered or wind-powered generation facility to have a capacity of no less than 50 kilowatts to qualify for a third party power purchase agreement under a pilot program. The bill directs the State Corporation Commission, by July 1, 2033, to initiate a proceeding to evaluate the future availability of renewable energy certificates from certain resources and permits the Commission to increase or decrease by up to one percentage point the percentage of program requirements to be met by such resources in future compliance years. The bill provides that it is the policy of the Commonwealth to encourage development on previously developed project sites, as defined in existing law, to reduce the land use impacts of solar development. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation. This bill is identical to SB 175.

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 0 costs, 4 mixed.

Coal plants and big oil units retired

By Dec. 31, 2024, utilities must retire all coal plants and any oil‑fired units over 500 MW operating in Virginia, with limited exceptions (such as certain jointly owned coal units and some Phase II units that co‑fire with biomass). By Dec. 31, 2045, all other in‑state power plants that emit carbon must be retired, except biomass units that do not co‑fire with coal. A utility can ask the Commission to delay a retirement if it would harm reliability or security of electric service. These steps cut emissions but can affect utility costs and customer rates over time.

Renewable standard and REC rules for utilities

The law creates a renewable portfolio standard. Utilities must buy and retire renewable energy certificates (RECs) for customers based on a share of last year’s sales. From 2025, only sources listed in law count; eligible types include solar and wind, some hydro, geothermal, certain waste‑to‑energy, and limited in‑state biomass with fuel and date limits. Starting with the 2027 compliance year, Phase II utilities must get at least 75% of RECs from Virginia projects. One percent must come from very small (1 MW or less) Virginia projects, and at least 25% of that must be low‑income qualifying projects when available; eligible school projects can fill the rest if needed. Geothermal heating and cooling systems in Virginia earn RECs based on BTUs converted to kWh, and any Virginia hydro that began before July 1, 2024 is eligible. Utilities can bank extra RECs for up to five years. The Commission sets rules, verifies compliance, and by July 1, 2033 can review and adjust the small‑project share by up to one percentage point for future years. Entities organized under Chapter 9.1 are exempt from this section.

Utilities must add major wind, solar, storage

Phase II utilities must seek approval to add 16,100 MW of in‑state solar and onshore wind by Dec. 31, 2035, which may include up to 5,200 MW of offshore wind. Targets are staged: 3,000 MW by 2024; +3,000 MW by 2027; +4,000 MW by 2030; +6,100 MW by 2035. At least 35% must be purchases from non‑utility owners, and 1,100 MW must be solar projects no larger than 3 MW each. Phase I utilities must add 600 MW of in‑state solar or onshore wind (200 MW by 2023, +200 MW by 2027, +200 MW by 2030), with at least 35% of each tranche purchased from non‑utility owners. From 2020 through 2035, each utility files a yearly plan for new solar and wind and meeting storage targets, aiming for at least 10% behind‑the‑meter storage; the Commission issues a final order within six months. Utilities must run at least one RFP each year with 45 days’ public notice and show competitive procurement when seeking a solar CPCN. Utilities must ask approval to procure zero‑carbon capacity and storage and can request cost recovery through base rates or a rate adjustment clause. When competitively priced and available, utilities must prefer equipment made in Virginia or the U.S.

Big buyers can self-procure renewables

An accelerated renewable energy buyer can contract for RECs or bundled energy, capacity, and RECs from PJM projects first in service after Jan. 1, 2015. These buyers can use the RECs to offset their load and avoid some non‑bypassable RPS charges in proportion to what they contract, except certain offshore wind costs; their load is excluded from utility RPS totals. Utilities must certify, or buyers may self‑certify, each year; the Commission can set rules. If a buyer‑utility contract does not shift extra costs to other customers, it is not treated as a special rate needing Commission approval. The Commission ensures any transmission and distribution costs are fairly split. Very large customers that switched to competitive suppliers before early 2019 are not assigned these RPS charges while they buy from others, and their loads are excluded.

Penalties for missed targets fund communities

If a utility misses its renewable targets, it must pay $45 per MWh of shortfall. For shortfalls tied to RECs from Virginia projects of 1 MW or less, the rate is $75 per MWh. These amounts rise 1% each year after 2021. Utilities can recover these payments as compliance costs in rates. All proceeds go to a state account: 50% for job training in historically economically disadvantaged communities, 16% for energy efficiency in public facilities, 30% for renewable programs in those communities, and 4% for administration.

Sponsors & Cosponsors

Sponsor

  • Katrina Callsen

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 392 • No: 26

House vote 3/2/2026

Senate substitute agreed to by House

Yes: 97 • No: 1

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: 22 • No: 18

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: 9 • No: 6

House vote 2/4/2026

Passed House Block Vote

Yes: 98 • No: 0

House vote 2/4/2026

Read third time and passed House Block Vote

Yes: 97 • No: 1

House vote 1/29/2026

Reported from Labor and Commerce with amendment(s)

Yes: 22 • No: 0

House vote 1/27/2026

Subcommittee recommends reporting with amendment(s)

Yes: 7 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0645)

    4/13/2026Governor
  2. Approved by Governor-Chapter 645 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (HB628)

    3/12/2026House
  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 (HB628ER)

    3/6/2026House
  7. Enrolled

    3/6/2026House
  8. Signed by President

    3/6/2026Senate
  9. Signed by Speaker

    3/6/2026House
  10. Senate substitute agreed to by House (97-Y 1-N 0-A)

    3/2/2026House
  11. Passed Senate with substitute (22-Y 18-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 26108349D-S1

    2/24/2026Senate
  19. Senate committee offered

    2/23/2026Senate
  20. Fiscal Impact Statement from State Corporation Commission (HB628)

    2/23/2026House
  21. Reported from Commerce and Labor with substitute (9-Y 6-N)

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

    2/5/2026Senate
  23. Constitutional reading dispensed (on 1st reading)

    2/5/2026Senate
  24. Passed House Block Vote (98-Y 0-N 0-A)

    2/4/2026House
  25. Reconsideration of passage agreed to by House

    2/4/2026House

Bill Text

Related Bills

Back to State Legislation