VirginiaSB2522026 Regular SessionSenateWALLET

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

Sponsored By: Scott A. Surovell (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 HB 1102.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 1 costs, 5 mixed.

Coal and oil plants retire

By December 31, 2024, utilities must retire oil‑fired units over 500 MW and all coal‑fired units in the Commonwealth, with narrow exceptions. By December 31, 2045, they must retire other carbon‑emitting units, except certain biomass‑only plants. A utility may ask the Commission for relief if a retirement would threaten reliability or security.

Utilities must add renewables and storage

Utilities must add large amounts of solar, wind, and storage. Phase I must secure 600 MW of solar or onshore wind (200 MW by 2023, 2027, and 2030), with at least 35% from third-party projects. Phase II must secure 16,100 MW by 2035 (3,000 by 2024; 3,000 by 2027; 4,000 by 2030; 6,100 by 2035), including 1,100 MW of small solar (≤3 MW each), at least 200 MW on redeveloped sites, and up to 5,200 MW offshore, with 35% from non-utility projects. Storage targets are 400 MW (Phase I) and 2,700 MW (Phase II) by 2035; at least 35% must be owned by non-utility parties. Single storage projects are capped at 500 MW, except one Phase II project may be up to 800 MW. Each utility must run a public RFP at least once a year (posted ≥45 days), and any petition to build a solar plant must show it was competitively procured. The Commission sets interim storage rules and programs.

New clean energy charge on bills

The law adds a non-bypassable charge on all retail electric customers to cover clean-energy compliance costs. You pay it even if you buy power from a competitive supplier. Accelerated renewable buyers can get proportional exemptions, and some low-income customers are shielded from certain offshore wind costs. The Commission implements these tariffs beginning January 1, 2021, with annual updates and true-ups.

Penalties fund clean energy programs

When a utility misses its renewable target, it pays a fee per missing MWh. The fee is $45/MWh, $75/MWh for small in-state solar, wind, or digester (≤1 MW), and $100/MWh for geothermal heating/cooling RECs. Rates rise 1% each year after 2021. Utilities must run quarterly RFPs for geothermal RECs and are exempt if none are offered at or below the fee price. All payments go to a state fund: 50% job training in disadvantaged communities, 30% local renewable projects, 16% public-facility efficiency, 4% administration. Utilities can recover these payments in rates.

Stricter renewable rules and geothermal credits

The law requires all Phase I and II utilities to meet the renewable portfolio standard by buying and retiring eligible renewable energy certificates. Starting with the 2025 compliance year, only RECs from eligible sources count. For Phase II, at least 75% of RECs used each year must come from Virginia beginning in 2025. Eligible sources include in‑state solar and wind, certain hydropower, specified waste‑to‑energy and landfill gas, geothermal power, limited in‑state biomass, and geothermal heating and cooling systems. A geothermal heating/cooling system must use a closed loop or safe open loop with groundwater or ground source, meet current ENERGY STAR specs, replace less efficient heating or cooling, and not export power at the heat‑pump level.

Cost breaks for big energy users

Large energy users get ways to cut RPS charges. A commercial or industrial customer with over 25 MW of load last year can buy RECs or bundled clean power and get an exemption in the same proportion. They may also contract for storage and get a matching exemption from storage charges. Their RECs do not count toward the utility’s target, and the covered load is excluded. Also, customers that chose competitive supply before 2019 dates stay exempt while off utility supply: for Phase II, peak demand over 100 MW in 2019 and switched before April 1, 2019; for Phase I, switched before February 1, 2019.

Appraisers trained to value energy savings

The Real Estate Appraiser Board now requires training on how solar, geothermal, and solar water heating cut energy bills and raise property value. The Board must report on its implementation by November 1, 2026.

Sponsors & Cosponsors

Sponsor

  • Scott A. Surovell

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 157 • No: 53

House vote 2/27/2026

Passed House

Yes: 67 • No: 29

House vote 2/24/2026

Reported from Labor and Commerce

Yes: 16 • No: 5

Senate vote 2/13/2026

Read third time and passed Senate

Yes: 25 • No: 14

Senate vote 2/12/2026

Commerce and Labor Amendments agreed to

Yes: 0 • No: 0

Senate vote 2/11/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/11/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/9/2026

Reported from Commerce and Labor with amendments

Yes: 9 • No: 5

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0734)

    4/13/2026Governor
  2. Approved by Governor-Chapter 734 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (SB252)

    3/12/2026Senate
  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

    3/10/2026Senate
  6. Bill text as passed Senate and House (SB252ER)

    3/4/2026Senate
  7. Enrolled

    3/4/2026Senate
  8. Signed by President

    3/4/2026Senate
  9. Signed by Speaker

    3/4/2026House
  10. Passed House (67-Y 29-N 0-A)

    2/27/2026House
  11. Read third time

    2/27/2026House
  12. Read second time

    2/26/2026House
  13. Reported from Labor and Commerce (16-Y 5-N)

    2/24/2026House
  14. Referred to Committee on Labor and Commerce

    2/18/2026House
  15. Read first time

    2/18/2026House
  16. Placed on Calendar

    2/18/2026House
  17. Fiscal Impact Statement from State Corporation Commission (SB252)

    2/16/2026Senate
  18. Read third time and passed Senate (25-Y 14-N 0-A)

    2/13/2026Senate
  19. Commerce and Labor Amendments agreed to

    2/12/2026Senate
  20. Engrossed by Senate as amended (Voice Vote)

    2/12/2026Senate
  21. Read second time

    2/12/2026Senate
  22. Passed by for the day Block Vote (Voice Vote)

    2/11/2026Senate
  23. Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A)

    2/11/2026Senate
  24. Rules suspended

    2/11/2026Senate
  25. Senate committee amendments offered

    2/9/2026Senate

Bill Text

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