RICHMOND, Va. – The Virginia General Assembly is moving forward with sweeping energy legislation that would overhaul the state’s electric utility framework, establish new emissions standards, and expand solar programs across the Commonwealth. The measure, patroned by Delegate Webert, revises and repeals several sections of the Code of Virginia related to electric generation, utility regulation, and renewable energy programs.
At the heart of the bill is a new Emissions Intensity Target Program, directing the State Corporation Commission (SCC) to develop a timeline for electric utilities to achieve net-zero emissions. The SCC would set measurable, time-bound targets to reduce carbon-equivalent emissions per megawatt-hour of generation. These goals must balance environmental progress with economic feasibility and grid reliability, allowing periodic reviews as technology and energy demand evolve.
The legislation also amends § 56-585.5, tightening rules for utilities’ generation sources and requiring the retirement of all coal and oil-fired units above 500 megawatts by the end of 2024, except those in limited regional or cooperative partnerships.
All remaining carbon-emitting facilities must close by 2045 unless the SCC grants reliability-based exemptions. Utilities must meet renewable energy portfolio standards through certified renewable energy certificates and prioritize solar, wind, geothermal, hydroelectric, and qualified biomass sources located in Virginia or within the PJM regional grid.
A significant component of the proposal expands shared solar programs for both Phase I (Appalachian Power) and Phase II (Dominion Energy) utilities. These programs would allow residents, businesses, and low-income service organizations to subscribe to community-based solar projects and receive proportional energy bill credits. The SCC must establish program rules, including subscriber protections, billing standards, and incentives for projects located on rooftops, brownfields, or agricultural dual-use sites. Phase II utilities could authorize up to 350 megawatts of shared solar capacity, with at least 75 megawatts dedicated to low-income customers, while Phase I utilities would start with up to 50 megawatts.
The measure further adds consumer protections by prohibiting electric rate increases during the winter months of November through February, including new or adjusted rate clauses for residential customers. Utilities may only implement such increases starting March 1 of the following year.
In addition to the regulatory and emissions changes, the bill amends the tax structure for electric suppliers through a new minimum tax under § 58.1-400.3, requiring utilities to pay 1.45 percent of annual gross receipts, offset by the state’s portion of the electric utility consumption tax. Cooperatives and affiliated entities are also included under specific filing and reporting requirements.
The State Corporation Commission must promulgate implementing regulations by January 1, 2027, after which the new provisions—including the emissions intensity program and shared solar frameworks—will take effect.
Key points:
- Virginia’s proposed energy reform sets emissions intensity targets to achieve net-zero generation by mid-century.
- The bill mandates coal and oil unit retirements and expands shared solar programs statewide.
- A new minimum tax on electric suppliers and a winter rate freeze for consumers are also included.
