2021 General Assembly Wrap-Up
Virginia’s 2021 General Assembly session saw a number of proposed bills concerning energy and environmental policy in the state. The legislature considered a number of bills that aimed to reduce the state’s dependence on non-renewable energy sources, promote the use of electric vehicles, and rein in the power of public utilities. Here’s a look at both the most positive successes of the session and items the legislature failed to enact that ought to be reconsidered in the future.
During the 2020 session, the General Assembly took a big step toward combating the climate crisis with the adoption of the Clean Economy Act, which includes the ambitious plan of making Virginia’s electric grid carbon-free by 2045. Recognizing that there’s a lot of work to be done over the next fourteen years, the General Assembly acted during the 2021 session to promote the use of clean energy in the state.
Throughout most of Virginia’s history, mining for coal played a huge role in the state’s economy. Legislation approved by the General Assembly this year shows that Virginia is moving away from coal use and toward more sustainable energy resources. A bill ending the Virginia Coal Tax Credit, which grants electricity generators a $3 tax credit for each ton of coal purchased and consumed in the state, passed both chambers of the General Assembly before being sent to the Governor. The passage of this legislation brings Virginia one step closer to a clean energy grid.
But it doesn’t seem as though the General Assembly is ready to completely phase out the use of fossil fuels in the state quite yet. A bill that would have established a moratorium on any new fossil fuel infrastructure plans was killed at this session’s crossover. This bill was notable for a provision which would have set up job training programs for workers whose careers have been impacted by the shift away from fossil fuels. The plight of workers in the fossil fuel industry remains a concern among those who are more apprehensive about the move toward renewable energy.
Reflecting the goal of a carbon-free electric grid by 2045, the General Assembly passed a number of bills which promote the use of renewable energy in the state. One bill amended 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 creates a new revenue stream for these small companies. Another piece of legislation changed the definition of certified pollution control equipment and facilities to include energy storage systems, thus exempting them from state and local taxation.
Electric vehicles were a major focus of the 2021 General Assembly session. Whether it be in the form of requiring car manufacturers to sell a certain percentage of electric vehicles starting in 2025 or giving those who purchase an electric vehicle a $2,500 rebate at the time of purchase, the General Assembly passed a slew of bills which incentivize the use of electric vehicles. And recognizing that electric vehicles won’t be able to take off without the necessary infrastructure in place, the General Assembly amended the Virginia Energy Plan to include an analysis of electric vehicle charging infrastructure and other infrastructure needed to support the 2045 net-zero carbon target for the transportation sector.
Virginia’s two largest energy providers, Dominion Energy and Appalachian Power, have played a massive role in shaping the landscape of the Virginia political scene for years. They’ve wielded their power to strip the State Corporation Commission of its regulatory role in setting customer rates. The 2021 General Assembly session was notable for the consideration of a number of bills that aimed to reform the way energy utilities and energy consumption are regulated in Virginia. One bill would have required public utilities to credit 100% of over-earnings to customer bills and gives the SCC more discretion in adjusting rates. Another bill would have gone further, eliminating Dominion Energy’s $50 million limit on refunds. Other legislation would have allowed customers to buy renewable energy from any licensed suppliers, not just from public utilities. None of these bills were approved by the General Assembly, keeping utilities in power and leaving customers with unnecessarily high bills for yet another year.