As Session nears end, where do energy bills stand?
On the heels of the 2020 passage of the Clean Economy Act, which puts Virginia on track to 100% carbon-free electricity by 2050, the General Assembly this year has been considering a number of bills that reduce Virginia’s dependency on fossil fuels, incentivize the use of renewable energy, and reform the way energy utilities and energy consumption are regulated in the state.
It goes without saying that going carbon-free necessarily entails phasing out the coal industry in Virginia. HB 1899, which passed the House of Delegates earlier this month and is currently being considered by the Senate, ends the Virginia Coal Employment and Production Incentive Tax Credit, which grants electricity generators a $3 tax credit for each ton of coal purchased and consumed and has been identified as an ineffective and uneconomical. A bill that would have established a moratorium on any new fossil fuel infrastructure plans and set up job training programs for workers whose careers have been impacted by the shift away from fossil fuels, HB 2292, was left in House Commerce and Labor and effectively killed at Crossover.
A number of bills before the General Assembly create incentives for the use of renewable energy. HB 1994 amends the definition of small agricultural generators in the state code to include distilleries, breweries, and wineries. In allowing these entities to sell generated electricity to utilities, the bill encourages the adoption of clean energy sources, which also benefits creates a new revenue stream for these small companies. HB 2006 declares that the definition of certified pollution control equipment and facilities includes energy storage systems, thus exempting them from state and local taxation and has already passed both chambers. Another bill, HB 2148, defines energy storage facilities with capacities below 150 MW as a small renewable energy project, making them eligible for special permitting, review, and inspection requirements.
Other bills create incentives that promote the adoption of electric vehicles and reimagine the way Virginians move around. HB 1965 requires car manufacturers to sell a certain percentage of electric vehicles in Virginia starting in 2025, and HB 1979 gives those who purchase or lease an electric vehicle a $2,500 rebate at the time of the purchase. Both bills have cleared the House and will be taken up by the Senate in the coming weeks.
SB 1223 requires an analysis of the state’s current electric vehicle charging infrastructure and any infrastructure that will be necessary to eliminate carbon emissions in the state under the Virginia Energy Plan. Further incentivizing the use of electric vehicles, SB 1380 would let electric utilities work with school divisions to increase the number of students traveling to and from school on electric school buses. Both bills have passed the Senate and will be sent to the Governor if approved by the House of Delegates.
Encouraging the use of transit over the use of cars, HB 2054 would allow localities to consider reducing, modifying, or waiving parking requirements when planning for transit-oriented development. The bill has passed the House and has crossed over to the Senate. Another bill that would have incentivized the planning of a more sustainable future is SB 1224, which would have required the Board of Housing and Community Development to amend the state building code to reflect international energy efficiency and conservation requirements; the bill was left in committee.
Three bills that reform the way energy utilities and energy consumption are regulated were approved by the House of Delegates and summarily defeated in the Senate. HB 2160 would have required public utilities to credit 100% of over-earnings to customer bills and gives the State Corporation Commission more discretion in adjusting rates. Similarly, HB 2200 would have required public utilities to credit 100% of over-earnings to customer bills and eliminates Dominion Energy’s $50 million limit on refunds. Finally, HB 2048 would have allowed customers to buy renewable energy from any licensed suppliers, not just from public utilities. The bill also included third-party suppliers to provide a discount to low-income customers. The defeat of these bills highlights the difference in attitude towards Dominion Energy between the House and the Senate, leaving ratepayers with another year of excessively high energy bills.
With crossover now behind us, the number of surviving bills that look to build a cleaner economy is promising, despite the disappointments regarding Dominion’s overearnings, the universal building code, and the coal infrastructure moratorium. We will continue to monitor the remaining bills for the rest of the session.