A BILL to amend and reenact §§ 10.1-1307, 10.1-1308, 10.1-1402.03, 10.1-1402.04, 45.2-1701.1, 56-585.1, 56-585.3, 56-585.5, 56-585.8, 56-594.3, 56-594.4, 56-596.5, and 58.1-400.3 of the Code of Virginia; to amend the Code of Virginia by adding in Chapter 23 of Title 56 a section numbered 56-596.7; and to repeal §§ 56-585.1:11 and 56-585.5 of the Code of Virginia, relating to electric utilities; emissions intensity target program.
HB1090 is a broad electric-utility restructuring bill that would overhaul Virginia law governing investor-owned utilities, renewable energy procurement, coal retirement, energy storage, shared solar, rate regulation, and utility taxation. It would amend multiple sections of the Code of Virginia and add a new emissions intensity target program requiring the State Corporation Commission (SCC) to set time-bound targets for Phase I and Phase II utilities to move toward net-zero emissions. The bill also repeals existing provisions related to offshore wind and renewable energy procurement and replaces them with a new framework for renewable and zero-carbon generation, storage, and cost recovery.
A major portion of the bill expands and tightens renewable portfolio standard requirements and utility procurement obligations. It would require utilities to retire coal- and oil-fired units on an accelerated schedule, procure large amounts of solar, onshore wind, offshore wind, and energy storage, and conduct annual competitive solicitations for new solar and wind resources. The bill also revises the definition of eligible renewable energy certificate sources, limits certain biomass and out-of-state RECs, and creates special treatment for low-income projects and school-adjacent projects. It further establishes rules for accelerated renewable energy buyers, shared solar programs for both Phase I and Phase II utilities, and public disclosure requirements for planned closures of large carbon-emitting generating facilities.
The bill would significantly affect state law by changing how utility costs are recovered and how the SCC reviews utility rates. It would preserve and expand rate adjustment clauses for renewable generation, storage, coal ash closure, grid transformation, and other utility projects, while also imposing non-bypassable charges on customers to recover compliance costs. It would alter biennial and triennial rate review procedures, modify return-on-equity standards, and create customer bill credit or offset mechanisms tied to utility earnings and capital investment in solar, wind, and grid projects. It also adds a minimum tax on electric suppliers based on gross receipts, replacing or supplementing existing corporate income tax treatment for affected utilities.
The overall sentiment reflected in the bill text and legislative status is policy-driven and strongly pro-decarbonization, with an emphasis on utility planning, reliability, and consumer cost recovery. Because there are no recorded committee transcripts or votes in the provided context, there is no direct evidence of debate or bipartisan support/opposition in the materials supplied. The bill’s placement as “Left in Labor and Commerce” suggests it did not advance out of committee at this stage.
The main points of contention likely center on the scale and pace of mandated utility retirements and renewable procurement, the cost impacts on ratepayers, and the SCC’s role in approving or limiting utility investments. The bill repeatedly requires utilities to recover costs from customers through non-bypassable charges, which could draw concern from consumer advocates and large industrial customers. At the same time, the bill includes reliability escape valves, competitive procurement requirements, and exemptions for certain large customers and accelerated renewable energy buyers, indicating an attempt to balance clean-energy mandates with grid reliability and customer-specific cost concerns.
HB1090 would substantially revise Virginia utility regulation by mandating accelerated coal and oil retirements, expanding renewable and storage procurement requirements, creating a new emissions intensity target program, and changing how utility costs are recovered from customers. It would amend or add provisions in the air pollution, coal ash closure, utility ratemaking, shared solar, and tax sections of the Code of Virginia, while repealing existing offshore wind and renewable energy provisions. The bill would also require the SCC to adopt implementing regulations and would not fully take effect until those regulations are promulgated.
The bill appears to be framed as a comprehensive clean-energy and utility-modernization measure, with strong support implied for decarbonization, renewable deployment, and utility planning reforms. However, the provided record contains no committee discussion or votes, so there is no direct evidence of the level of support or opposition. Its status as left in committee indicates it did not advance in the current session.
Likely areas of contention include the bill’s aggressive retirement deadlines for fossil-fuel generation, the large mandated buildout of solar, wind, and storage, and the extent to which utility compliance costs would be passed through to customers. Industrial and large commercial customers may object to non-bypassable charges and limits on exemptions, while consumer advocates may focus on rate impacts and bill volatility. Utilities may also raise concerns about reliability, procurement flexibility, and the SCC’s ability to approve or deny petitions under the bill’s timelines.