VirginiaSB8022026 Regular SessionSenateWALLET

Clean energy and community flood preparedness; market-based trading program.

Sponsored By: Mamie E. Locke (Democratic)

Signed by Governor

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 HB 397.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

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

Energy-saving help for low-income households

The law directs 50 percent of carbon allowance auction revenue to low-income energy-saving programs, including programs for eligible housing developments. Virginia’s Department of Housing and Community Development manages the account and reviews and approves funding proposals. Unspent money and interest stay in the account after each fiscal year instead of returning to the general fund. Another 2 percent pays for running these programs through a partnership with the Department of Energy, which provides technical help when asked. The law does not set household award amounts or income limits.

Flood assistance for communities and residents

The law directs 45 percent of carbon allowance auction revenue to a fund for flood assistance. It supports localities and residents affected by repeated flooding, sea level rise, or flooding from severe weather. The law does not set individual award amounts or payment formulas.

Long-term power buyers must obtain allowances

Buyers under qualifying energy conversion or energy tolling contracts must obtain any carbon dioxide allowances required by the applicable rules. The contract’s primary term must be at least 20 years, and the buyer must supply fuel to the covered source or unit. The buyer must also receive all its rated generating capacity and associated energy for the entire contract term. This duty applies to qualifying power buyers, not directly to household electricity customers. The act declares its provisions to be statements of existing law.

Power plants face carbon trading rules

Virginia’s Air Pollution Control Board must maintain carbon trading rules for power plants consistent with the Regional Greenhouse Gas Initiative. The Department of Environmental Quality runs the program, and its Director must seek to auction 100 percent of allowances issued each year. The Department can allow fewer sales if full sales lower allowance value and cause a net loss of consumer benefit, or conflict with the regional program. Auction revenue earns interest in a state treasury account, with revenue and interest used for the designated purposes without further approval of spending. A 3 percent revenue share covers reasonable program and revenue-allocation costs, plus statewide climate planning and efforts to reduce climate change. The environmental, conservation, housing, and energy agencies must jointly report participation, yearly emissions reductions, revenue deposits, and each use of money. Reports go to the Governor and General Assembly by January 1, 2022, and annually afterward.

Sponsors & Cosponsors

Sponsor

  • Mamie E. Locke

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 158 • No: 72

House vote • 3/2/2026

Passed House

Yes: 64 • No: 35

House vote • 2/25/2026

Reported from Agriculture, Chesapeake and Natural Resources

Yes: 15 • No: 7

Senate vote • 2/9/2026

Read third time and passed Senate

Yes: 21 • No: 19

Senate vote • 2/6/2026

Engrossed by Senate (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/5/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/5/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote • 2/4/2026

Reported from Finance and Appropriations

Yes: 10 • No: 5

Senate vote • 1/27/2026

Reported from Agriculture, Conservation and Natural Resources and rereferred to Finance and Appropriations

Yes: 8 • No: 6

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0921)

    4/13/2026Governor
  2. Approved by Governor-Chapter 921 (effective 7/1/2026)

    4/13/2026Governor
  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

    3/10/2026Senate
  5. Fiscal Impact Statement from Department of Planning and Budget (SB802)

    3/5/2026Senate
  6. Bill text as passed Senate and House (SB802ER)

    3/5/2026Senate
  7. Enrolled

    3/5/2026Senate
  8. Signed by President

    3/5/2026Senate
  9. Signed by Speaker

    3/5/2026House
  10. Passed House (64-Y 35-N 0-A)

    3/2/2026House
  11. Read third time

    3/2/2026House
  12. Read second time

    2/27/2026House
  13. Reported from Agriculture, Chesapeake and Natural Resources (15-Y 7-N)

    2/25/2026House
  14. Referred to Committee on Agriculture, Chesapeake and Natural Resources

    2/12/2026House
  15. Read first time

    2/12/2026House
  16. Placed on Calendar

    2/12/2026House
  17. Read third time and passed Senate (21-Y 19-N 0-A)

    2/9/2026Senate
  18. Engrossed by Senate (Voice Vote)

    2/6/2026Senate
  19. Read second time

    2/6/2026Senate
  20. Passed by for the day Block Vote (Voice Vote)

    2/5/2026Senate
  21. Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A)

    2/5/2026Senate
  22. Rules suspended

    2/5/2026Senate
  23. Reported from Finance and Appropriations (10-Y 5-N)

    2/4/2026Senate
  24. Fiscal Impact Statement from Department of Planning and Budget (SB802)

    2/3/2026Senate
  25. Reported from Agriculture, Conservation and Natural Resources and rereferred to Finance and Appropriations (8-Y 6-N)

    1/27/2026Senate

Bill Text

Related Bills

Back to State Legislation