VirginiaSB8022026 Regular SessionSenateWALLET

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

Sponsored By: Mamie E. Locke (Democratic)

Became Law

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.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Carbon cap-and-trade for power plants

The law creates a market-based trading program to cut CO2 from power plants, consistent with the Regional Greenhouse Gas Initiative. The Department of Environmental Quality runs the program and may auction emission allowances. The Director seeks to sell 100% of allowances each year unless that would hurt allowance value, cause a net loss of consumer benefit, or conflict with RGGI. The Department can add this article into the 2019 final regulation without going through normal administrative steps. These rules can change electricity prices and reduce emissions.

Auction money for floods and energy savings

The state keeps auction money in a special interest-bearing account. Forty-five percent funds community flood preparedness for places hit by recurrent flooding, sea level rise, or severe storms. Fifty percent funds low-income energy-efficiency programs run by Housing and Community Development; Energy provides technical help on request. Two percent covers running those low-income programs, and three percent funds DEQ administration and statewide climate planning. Money and interest stay available and may be used for these purposes without another appropriation when allowed by the state Constitution.

Long-term power buyers must buy allowances

If Virginia participates in RGGI or implements the final trading rule, certain long-term power deals face new duties. Any energy conversion or tolling agreement with a primary term of 20 years or more, where the buyer delivers the fuel and receives all nameplate capacity and energy, is treated as a life-of-unit deal. The buyer must obtain the CO2 allowances for the covered unit. This shifts costs to buyers and can affect contract and electricity prices.

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

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/5/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • 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

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