HB2635 amends Virginia’s Brownfield and Coal Mine Renewable Energy Grant Fund and Program to support renewable energy development on brownfields and previously coal mined lands. The bill keeps the existing framework for a special nonreverting fund and competitive grant program, but updates the grant amounts and program details. It authorizes grants for projects that restore and redevelop contaminated or formerly mined sites for renewable energy generation or storage, including site assessment, cleanup, demolition, remediation planning, and related work.
The bill changes the per-kilowatt grant rates to $500 for renewable energy projects on previously coal mined lands and increases the brownfield rate from $100 to $200 per kilowatt. It also caps awards at $10 million per project on previously coal mined lands and $5 million per brownfield project, with a total annual program allocation of $35 million and $20 million reserved for coal-mined lands projects. If the coal-mined lands reserve is not fully used, the remaining money may be shifted to brownfield projects. The Department is directed to administer the program, consult with the Department of Environmental Quality, publish guidelines, require local hiring criteria, oversee grants, and provide annual reporting on grants, acreage reclaimed, capacity built, jobs created, and economic impact.
The bill’s impact on state law is to revise the statutory structure and funding rules for the Virginia Brownfield and Coal Mine Renewable Energy Grant Fund and Program in Title 45.2 of the Code of Virginia. It affects the Department responsible for administration, grant applicants and developers seeking to site solar, wind, geothermal, or energy storage projects on brownfields or former coal lands, and localities and stakeholders involved in redevelopment and permitting. It also reinforces the state’s role in encouraging reuse of environmentally challenged sites for clean energy while tying grant eligibility to project location and capacity.
Overall sentiment around the bill appears strongly favorable in the House, where it advanced unanimously through subcommittee, full committee, and floor votes. The only recorded opposition or hesitation appears later in the Senate Finance and Appropriations Committee, where the bill was passed by indefinitely on a 9-6 vote, indicating some concern about fiscal or policy priorities despite earlier broad support. No committee transcript is available, so the recorded votes are the main indicator of sentiment.
The main points of contention likely involve the size and allocation of the grant program, especially the annual $35 million cap, the $20 million reservation for previously coal mined lands, and the increase in per-kilowatt grant support for brownfield projects. Other potential issues include the requirement that project developers hire local residents, the administrative burden of annual reporting and program oversight, and whether the state should expand incentives for renewable energy redevelopment at this scale. The Senate Finance and Appropriations vote suggests the bill may have raised budgetary concerns even though it was not controversial in the House.
HB2635 revises Virginia Code § 45.2-1725 to modify the Brownfield and Coal Mine Renewable Energy Grant Fund and Program, including grant amounts, project caps, annual funding limits, and administrative requirements. It affects state grant administration, renewable energy developers, brownfield and former coal mine site owners, and local stakeholders by creating or expanding financial incentives for siting renewable energy and storage projects on contaminated or previously mined lands.
The bill appears to have enjoyed strong support in the House, passing subcommittee, committee, and floor votes unanimously or nearly unanimously. The later 9-6 vote to pass the bill by indefinitely in Senate Finance and Appropriations suggests more mixed sentiment in the Senate, likely tied to fiscal concerns rather than opposition to the underlying redevelopment and clean energy goals.
The likely areas of disagreement are the cost and scale of the grant program, including the annual $35 million allocation, the $20 million set-aside for previously coal mined lands, and the increased brownfield grant rate from $100 to $200 per kilowatt. Some lawmakers may also have questioned whether the local hiring requirement, reporting obligations, and administrative costs are appropriate or whether the program should be funded at all. The Senate Finance and Appropriations result indicates that budget impact was probably the main point of contention.