The Virginia Clean Economy Act was passed as House Bill 1526 and Senate Bill 851, which were sponsored by Delegate Richard C. “Rip” Sullivan, Jr. and Senator Jennifer McClellan, respectively. The Act incorporates clean energy directions that the Governor issued in Executive Order Forty-Three in September 2019. It results from extensive stakeholder input and incorporates environmental justice concepts related to the Green New Deal.
The law requires new measures to promote energy efficiency, sets a schedule for closing old fossil fuel power plants, and requires electricity to come from 100 percent renewable sources such as solar or wind. Energy companies must pay penalties for not meeting their targets, and part of that revenue would fund job training and renewable energy programs in historically disadvantaged communities. The Act accomplishes the following broad goals:
- Establishes renewable portfolio standards. The Act requires Dominion Energy Virginia to be 100 percent carbon-free by 2045 and Appalachian Power to be 100 percent carbon-free by 2050. It requires nearly all coal-fired plants to close by the end of 2024.
- Establishes energy efficiency standards. The Act declares energy efficiency pilot programs to be “in the public interest.” It creates a new program to reduce the energy burden for low-income customers, and it requires the Department of Social Services and the Department of Housing and Community Development to convene stakeholders to develop recommendations to implement this program. The Act sets an energy efficiency resource standard, requiring third party review of whether energy companies meet savings goals.
- Advances offshore wind. The Act provides that 5,200 megawatts of offshore wind generation is “in the public interest.” It requires Dominion Energy Virginia to prioritize hiring local workers from historically disadvantaged communities, to work with the Commonwealth to advance apprenticeship and job training, and to include an environmental and fisheries mitigation plan.
- Advances solar and distributed generation. The Act establishes that 16,100 megawatts of solar and onshore wind is “in the public interest.” The law expands “net metering,” making it easier for rooftop solar to advance across Virginia. The new law requires Virginia’s largest energy companies to construct or acquire more than 3,100 megawatts of energy storage capacity.
