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Bill Electric utility regulation; environmental goals. Electric utility regulation; environmental goals. Establishes a schedule by which Dominion Energy Virginia and American Electric Power are required to retire electric generating units located in the Commonwealth that emit carbon as a by-product of combusting fuel to generate electricity and by which they are required to construct, acquire, or enter into agreements to purchase generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind. The measure replaces the existing voluntary renewable energy portfolio system program (RPS Program) with a mandatory RPS that applies to electric utilities and licensed competitive suppliers. Under the mandatory RPS, utilities and suppliers are required to produce their electricity from 100 percent renewable sources by 2045 for Dominion Energy Virginia and any retail supplier operating in the service territory of Dominion Energy Virginia and by 2050 for American Electric Power and any retail supplier operating in the service territory of American Electric Power. A utility or supplier that does not meet its targets is required to pay a specific deficiency payment or purchase renewable energy certificates. The proceeds from the deficiency payments are to be deposited into an account administered by the Department of Mines, Minerals and Energy, which is directed to distribute specific percentages of the moneys to job training and renewable energy programs in historically economically disadvantaged communities, energy efficiency measures, and administrative costs. The measure directs the Department of Environmental Quality to incorporate into regulations previously adopted by the State Air Pollution Control Board certain provisions establishing a carbon dioxide cap and trade program to reduce emissions released by electric generation facilities. Such provisions are required to comply with the Regional Greenhouse Gas Initiative model rule. The measure authorizes the Director of the Department of Environmental Quality to establish, implement, and manage an auction program to sell allowances into a market-based trading program. The measure requires revenues from the sale of carbon allowances, to the extent permitted by Article X, Section 7 of the Constitution of Virginia, to be deposited in an interest-bearing account and to be distributed without further appropriation to the Virginia Community Flood Preparedness Fund, to the Department of Housing and Community Development for low-income energy efficiency programs, for administrative expenses, and for statewide climate change planning and mitigation activities. The measure continues the Virginia Shoreline Resiliency Fund as the Virginia Community Flood Preparedness Fund for the purpose of creating a low-interest loan program to help inland and coastal communities that are subject to recurrent flooding. Among other things, the measure also (i) requires, by 2035, American Electric Power and Dominion Energy Virginia to construct or acquire 400 and 2,700 megawatts of energy storage capacity, respectively; (ii) establishes an energy efficiency standard under which each investor-owned incumbent electric utility is required to achieve incremental annual energy efficiency savings that start in 2022 at 0.25 percent of the average annual energy retail sales by that utility in 2019 and increase annually. Beginning in 2026 and every three years thereafter, the Commission is required to adjust the required energy efficiency goals for the successive three years. and thereafter when energy efficiency savings of at least two percent of the average annual energy retail sales by that utility in the three preceding calendar years are required; (iii) exempts large general service customers from energy savings requirements; (iv) revises the incentive for electric utility energy efficiency programs; (v) provides that if the Commission finds in any triennial review that revenue reductions related to energy efficiency measures or programs approved and deployed since the utility's previous triennial review have caused the utility to earn more than 50 basis points below a fair combined rate of return on its generation and distribution services or, for any test period commencing after December 31, 2012, for Dominion Energy Virginia and after December 31, 2013, for American Electric Power, more than 70 basis points below a fair combined rate of return on its generation and distribution services, the Commission shall order increases to the utility's rates for generation and distribution services necessary to recover such revenue reductions; (vi) establishes requirements regarding the development by Dominion Energy Virginia of qualified offshore wind projects having an aggregate rated capacity of not less than 5,200 megawatts by January 1, 2034, and provides that in constructing any such facility, the utility shall (a) identify options for utilizing local workers; (b) identify the economic development benefits of the project for the Commonwealth, including capital investments and job creation; (c) consult with relevant governmental entities, including the Commonwealth's Chief Workforce Development Officer and the Virginia Economic Development Partnership, on opportunities to advance the Commonwealth's workforce and economic development goals, including furtherance of apprenticeship and other workforce training programs; and (d) give priority to the hiring of local workers, including workers from historically economically disadvantaged communities: (vii) requires each utility to include, and the Commission to consider, in any application to construct a new generating facility the social cost of carbon, as determined by the Commission, as a benefit or cost, whichever is appropriate; (viii) removes provisions that authorize nuclear and offshore wind generating facilities to continue to be eligible for an enhanced rate of return on common equity during the construction phase of the facility and the approved first portion of its service life of between 12 and 25 years in the case of a facility utilizing nuclear power and for a service life of between five and 15 years in the case of a facility utilizing energy derived from offshore wind; (ix) removes a provision that declares that planning and development activities for new nuclear generation facilities are in the public interest; (x) increases the limit from 5,000 megawatts to 16,100 megawatts on those solar and onshore wind generation facilities that are declared to be in the public interest and increases the limit from 16 megawatts to 5,000 megawatts on those offshore wind generation facilities that are declared to be in the public interest; (xi) amends the net energy metering program by increasing the maximum capacity of renewable generation facilities of participating nonresidential eligible customer-generators from one to three megawatts, increases the cap on the capacity of generation from facilities from the customer's expected annual energy consumption to 150 percent of such amount, increases each utility's systemwide cap from one percent of its adjusted Virginia peak-load forecast for the previous year to six percent of such amount, five percent of which is available to all customers and one percent of which is available only to low-income customers; (xii) establishes the Percentage of Income Payment Program (PIPP), which caps the monthly electric utility payment of low-income participants at six percent, or, if the participant's home uses electric heat, 10 percent, of the participant's household income and sets forth eligibility criteria for participation in PIPP, establishes the PIPP Fund to pay electric utility providers the balance of low-income participants' accounts and to fund energy efficiency and weatherization initiatives, and provides directives to the Department of Housing and Community Development regarding the administration of PIPP; (xiii) requires each investor-owned utility to consult with the Clean Energy Advisory Board in how best to inform low-income customers of opportunities to lower electric bills through access to solar energy (xiv) requires the Department of Mines, Minerals and Energy to prepare a report to the House and Senate Committees on Commerce and Labor and to the Governor's Advisory Council on Environmental Justice that ensures that the implementation of this act does not impose a disproportionate burden on minority or historically economically disadvantaged communities (xv) requires the Secretary of Natural Resources and the Secretary of Commerce and Trade, in consultation with the State Corporation Commission and the Council on Environmental Justice and appropriate stakeholders, shall report to the General Assembly by January 1, 2022, any recommendations on how to achieve 100 percent carbon-free electric energy generation by 2050 at least cost for ratepayers; and (xvi) provides that it is the policy of the Commonwealth that the State Corporation Commission, Department of Environmental Quality, Department of Mines, Minerals and Energy, Virginia Council on Environmental Justice, and other applicable state agencies, in the development of energy programs, job training programs, and placement of renewable energy facilities, shall consider those facilities and programs being to the benefit of low-income geographic areas and historically economically disadvantaged communities that are located near previously and presently permitted fossil fuel facilities or coal mines. us/states/va Virginia General Assembly 2020 SB 851 Virginia SB 851 (2020)
bill
enacted
Jennifer L. McClellan
6 63 11 2020-01-08 2020-04-11 openstates ocd-bill/7621779e-bf6d-4212-93c8-5fbaa96b282e https://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+SB851 28473b8bc330d38dd7a9e23928e5333ed6f4ecaa45482d85bb14a8352e739ccb 2026-07-01 https://data.openstates.org/daily/2026-07-01/public.pgdump 2026-07-06 reported
legislation
bill
us-va

Virginia SB 851 (2020) — Electric utility regulation; environmental goals.

Electric utility regulation; environmental goals. Establishes a schedule by which Dominion Energy Virginia and American Electric Power are required to retire electric generating units located in the Commonwealth that emit carbon as a by-product of combusting fuel to generate electricity and by which they are required to construct, acquire, or enter into agreements to purchase generating capacity located in the Commonwealth using energy derived from sunlight or onshore wind. The measure replaces the existing voluntary renewable energy portfolio system program (RPS Program) with a mandatory RPS that applies to electric utilities and licensed competitive suppliers. Under the mandatory RPS, utilities and suppliers are required to produce their electricity from 100 percent renewable sources by 2045 for Dominion Energy Virginia and any retail supplier operating in the service territory of Dominion Energy Virginia and by 2050 for American Electric Power and any retail supplier operating in the service territory of American Electric Power. A utility or supplier that does not meet its targets is required to pay a specific deficiency payment or purchase renewable energy certificates. The proceeds from the deficiency payments are to be deposited into an account administered by the Department of Mines, Minerals and Energy, which is directed to distribute specific percentages of the moneys to job training and renewable energy programs in historically economically disadvantaged communities, energy efficiency measures, and administrative costs. The measure directs the Department of Environmental Quality to incorporate into regulations previously adopted by the State Air Pollution Control Board certain provisions establishing a carbon dioxide cap and trade program to reduce emissions released by electric generation facilities. Such provisions are required to comply with the Regional Greenhouse Gas Initiative model rule. The measure authorizes the Director of the Department of Environmental Quality to establish, implement, and manage an auction program to sell allowances into a market-based trading program. The measure requires revenues from the sale of carbon allowances, to the extent permitted by Article X, Section 7 of the Constitution of Virginia, to be deposited in an interest-bearing account and to be distributed without further appropriation to the Virginia Community Flood Preparedness Fund, to the Department of Housing and Community Development for low-income energy efficiency programs, for administrative expenses, and for statewide climate change planning and mitigation activities. The measure continues the Virginia Shoreline Resiliency Fund as the Virginia Community Flood Preparedness Fund for the purpose of creating a low-interest loan program to help inland and coastal communities that are subject to recurrent flooding. Among other things, the measure also (i) requires, by 2035, American Electric Power and Dominion Energy Virginia to construct or acquire 400 and 2,700 megawatts of energy storage capacity, respectively; (ii) establishes an energy efficiency standard under which each investor-owned incumbent electric utility is required to achieve incremental annual energy efficiency savings that start in 2022 at 0.25 percent of the average annual energy retail sales by that utility in 2019 and increase annually. Beginning in 2026 and every three years thereafter, the Commission is required to adjust the required energy efficiency goals for the successive three years. and thereafter when energy efficiency savings of at least two percent of the average annual energy retail sales by that utility in the three preceding calendar years are required; (iii) exempts large general service customers from energy savings requirements; (iv) revises the incentive for electric utility energy efficiency programs; (v) provides that if the Commission finds in any triennial review that revenue reductions related to energy efficiency measures or programs approved and deployed since the utility's previous triennial review have caused the utility to earn more than 50 basis points below a fair combined rate of return on its generation and distribution services or, for any test period commencing after December 31, 2012, for Dominion Energy Virginia and after December 31, 2013, for American Electric Power, more than 70 basis points below a fair combined rate of return on its generation and distribution services, the Commission shall order increases to the utility's rates for generation and distribution services necessary to recover such revenue reductions; (vi) establishes requirements regarding the development by Dominion Energy Virginia of qualified offshore wind projects having an aggregate rated capacity of not less than 5,200 megawatts by January 1, 2034, and provides that in constructing any such facility, the utility shall (a) identify options for utilizing local workers; (b) identify the economic development benefits of the project for the Commonwealth, including capital investments and job creation; (c) consult with relevant governmental entities, including the Commonwealth's Chief Workforce Development Officer and the Virginia Economic Development Partnership, on opportunities to advance the Commonwealth's workforce and economic development goals, including furtherance of apprenticeship and other workforce training programs; and (d) give priority to the hiring of local workers, including workers from historically economically disadvantaged communities: (vii) requires each utility to include, and the Commission to consider, in any application to construct a new generating facility the social cost of carbon, as determined by the Commission, as a benefit or cost, whichever is appropriate; (viii) removes provisions that authorize nuclear and offshore wind generating facilities to continue to be eligible for an enhanced rate of return on common equity during the construction phase of the facility and the approved first portion of its service life of between 12 and 25 years in the case of a facility utilizing nuclear power and for a service life of between five and 15 years in the case of a facility utilizing energy derived from offshore wind; (ix) removes a provision that declares that planning and development activities for new nuclear generation facilities are in the public interest; (x) increases the limit from 5,000 megawatts to 16,100 megawatts on those solar and onshore wind generation facilities that are declared to be in the public interest and increases the limit from 16 megawatts to 5,000 megawatts on those offshore wind generation facilities that are declared to be in the public interest; (xi) amends the net energy metering program by increasing the maximum capacity of renewable generation facilities of participating nonresidential eligible customer-generators from one to three megawatts, increases the cap on the capacity of generation from facilities from the customer's expected annual energy consumption to 150 percent of such amount, increases each utility's systemwide cap from one percent of its adjusted Virginia peak-load forecast for the previous year to six percent of such amount, five percent of which is available to all customers and one percent of which is available only to low-income customers; (xii) establishes the Percentage of Income Payment Program (PIPP), which caps the monthly electric utility payment of low-income participants at six percent, or, if the participant's home uses electric heat, 10 percent, of the participant's household income and sets forth eligibility criteria for participation in PIPP, establishes the PIPP Fund to pay electric utility providers the balance of low-income participants' accounts and to fund energy efficiency and weatherization initiatives, and provides directives to the Department of Housing and Community Development regarding the administration of PIPP; (xiii) requires each investor-owned utility to consult with the Clean Energy Advisory Board in how best to inform low-income customers of opportunities to lower electric bills through access to solar energy (xiv) requires the Department of Mines, Minerals and Energy to prepare a report to the House and Senate Committees on Commerce and Labor and to the Governor's Advisory Council on Environmental Justice that ensures that the implementation of this act does not impose a disproportionate burden on minority or historically economically disadvantaged communities (xv) requires the Secretary of Natural Resources and the Secretary of Commerce and Trade, in consultation with the State Corporation Commission and the Council on Environmental Justice and appropriate stakeholders, shall report to the General Assembly by January 1, 2022, any recommendations on how to achieve 100 percent carbon-free electric energy generation by 2050 at least cost for ratepayers; and (xvi) provides that it is the policy of the Commonwealth that the State Corporation Commission, Department of Environmental Quality, Department of Mines, Minerals and Energy, Virginia Council on Environmental Justice, and other applicable state agencies, in the development of energy programs, job training programs, and placement of renewable energy facilities, shall consider those facilities and programs being to the benefit of low-income geographic areas and historically economically disadvantaged communities that are located near previously and presently permitted fossil fuel facilities or coal mines.

Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

  1. Acts of Assembly Chapter text (CHAP1194) (committee substitute) — source
  2. Bill text as passed Senate and House (SB851ER) (committee substitute) — source
  3. Engrossed by House - floor substitute SB851H2 (committee substitute) — source
  4. Engrossed by Senate - committee substitute SB851S1 (committee substitute) — source
  5. Impact statement from SCC (SB851) (committee substitute) — source
  6. Impact statement from SCC (SB851H1) (committee substitute) — source

Votes

  • Constitutional reading dispensed (40-Y 0-N) — 400 (pass) · upper
  • VOTE: Pass By REJECTED (38-Y 58-N) — 3758 (fail) · lower
  • Constitutional reading dispensed (39-Y 0-N) — 390 (pass) · upper
  • VOTE: REJECTED #2 (39-Y 54-N 1-A) — 3953 (fail) · lower
  • Passed Senate (21-Y 19-N) — 2119 (pass) · upper
  • House substitute agreed to by Senate (22-Y 17-N) — 2217 (pass) · upper
  • VOTE: Passage (51-Y 45-N 1-A) — 5045 (pass) · lower
  • Reported from Commerce and Labor with substitute (12-Y 3-N) — 123 (pass) · upper
  • Reported from Labor and Commerce with substitute (13-Y 9-N) — 139 (pass) · lower
  • VOTE: Adoption (50-Y 45-N) — 5044 (pass) · lower
  • VOTE: Reconsider (49-Y 48-N) — 4848 (fail) · lower

Sponsors

  • Jennifer L. McClellan — primary (person)
  • Adam P. Ebbin — cosponsor (person)
  • Barbara A. Favola — cosponsor (person)
  • David W. Marsden — cosponsor (person)
  • Ghazala F. Hashmi — cosponsor (person)
  • Jennifer B. Boysko — cosponsor (person)
  • John S. Edwards — cosponsor (person)
  • Lynwood W. Lewis, Jr. — cosponsor (person)

Timeline

The legislative action history — every referral, reading, and vote.

  • 2020-01-08 Prefiled and ordered printed; offered 01/08/20 20105040D introduction
  • 2020-01-08 Referred to Committee on Commerce and Labor referral-committee
  • 2020-01-21 Impact statement from SCC (SB851)
  • 2020-01-23 Assigned C&L sub: Energy referral-committee
  • 2020-02-09 Reported from Commerce and Labor with substitute (12-Y 3-N) committee-passage
  • 2020-02-09 Incorporates SB532 (Edwards)
  • 2020-02-09 Incorporates SB876 (Marsden)
  • 2020-02-09 Committee substitute printed 20107977D-S1 substitution
  • 2020-02-09 Substitute bill reprinted 20107977D-S1
  • 2020-02-10 Constitutional reading dispensed (39-Y 0-N)
  • 2020-02-11 Read second time reading-2
  • 2020-02-11 Reading of substitute waived
  • 2020-02-11 Committee substitute agreed to 20107977D-S1
  • 2020-02-11 Engrossed by Senate - committee substitute SB851S1
  • 2020-02-11 Constitutional reading dispensed (40-Y 0-N)
  • 2020-02-11 Passed Senate (21-Y 19-N) passage
  • 2020-02-18 Placed on Calendar
  • 2020-02-18 Read first time reading-1
  • 2020-02-18 Referred to Committee on Labor and Commerce referral-committee
  • 2020-02-20 Impact statement from SCC (SB851S1)
  • 2020-02-25 House committee, floor amendments and substitutes offered
  • 2020-02-25 Reported from Labor and Commerce with substitute (13-Y 9-N) committee-passage
  • 2020-02-25 Committee substitute printed 20109076D-H1 substitution
  • 2020-02-27 Read second time reading-2
  • 2020-02-28 Read third time reading-3
  • 2020-02-28 Passed by temporarily
  • 2020-02-28 Committee substitute agreed to 20109076D-H1
  • 2020-02-28 Pending question ordered
  • 2020-02-28 Passed by for the day
  • 2020-03-02 Passed by for the day
  • 2020-03-03 Passed by for the day
  • 2020-03-03 Motion to reconsider pass by for the day agreed to
  • 2020-03-03 Committee substitute reconsidered 20109076D-H1
  • 2020-03-03 Passed by for the day
  • 2020-03-04 Impact statement from SCC (SB851H1)
  • 2020-03-04 Passed by for the day
  • 2020-03-05 Read third time reading-3
  • 2020-03-05 Passed by temporarily
  • 2020-03-05 Floor substitute printed 20109629D-H2 (Sullivan)
  • 2020-03-05 Committee substitute rejected 20109076D-H1
  • 2020-03-05 Substitute by Delegate Sullivan agreed to 20109629D-H2
  • 2020-03-05 Motion to pass by floor amenments offered by Delegate Rasoul rejected (38-Y 58-N)
  • 2020-03-05 VOTE: Pass By REJECTED (38-Y 58-N)
  • 2020-03-05 Amendments by Delegate Rasoul agreed to (50-Y 45-N) amendment-passage
  • 2020-03-05 VOTE: Adoption (50-Y 45-N)
  • 2020-03-05 Amendments by Delegate Rasoul reconsidered
  • 2020-03-05 VOTE: Reconsider (49-Y 48-N)
  • 2020-03-05 Amendments by Delegate Rasoul rejected (39-Y 54-N 1-A) amendment-failure
  • 2020-03-05 VOTE: REJECTED #2 (39-Y 54-N 1-A)
  • 2020-03-05 Pending question ordered
  • 2020-03-05 Engrossed by House - floor substitute SB851H2
  • 2020-03-05 Passed House with substitute (51-Y 45-N 1-A) passage
  • 2020-03-05 VOTE: Passage (51-Y 45-N 1-A)
  • 2020-03-05 House substitute agreed to by Senate (22-Y 17-N)
  • 2020-03-05 Title replaced 20109629D-H2
  • 2020-03-06 Impact statement from SCC (SB851H2)
  • 2020-03-18 Enrolled
  • 2020-03-18 Signed by President
  • 2020-03-19 Signed by Speaker
  • 2020-03-20 Impact statement from SCC (SB851ER)
  • 2020-03-20 Enrolled Bill Communicated to Governor on March 20, 2020
  • 2020-03-20 Governor's Action Deadline 11:59 p.m., April 11, 2020
  • 2020-04-11 Approved by Governor-Chapter 1194 (effective 7/1/20) executive-signature

Source

OpenStates / OpenCivicData bulk snapshot 2026-07-01; origin ocd-bill/7621779e-bf6d-4212-93c8-5fbaa96b282e. Confidence: reported (aggregated from official Virginia legislature records).