A BILL to direct the Department of Energy to study geothermal energy and to direct the State Corporation Commission to conduct a proceeding to establish geothermal energy requirements for high energy users.
HB945 directs the Virginia Department of Energy to study geothermal electric generating resources and geothermal heating and cooling systems in the Commonwealth. The study must estimate the amount of electric generation capacity available from geothermal resources and may use an independent consultant. The Department must deliver its report, including findings and recommendations, to the State Corporation Commission by July 1, 2027.
The bill also requires the State Corporation Commission to begin a proceeding by September 30, 2027, to establish requirements for high energy users to use standardized amounts of geothermal capacity. The proceeding is to be informed by the Department’s study and must consider input from the public, experts, and other stakeholders. The bill defines a “high energy user” as a retail electric customer of a Commission-regulated utility with a consistent demand of 100 megawatts, while giving the Commission authority to adjust that threshold as needed to manage electric demand through geothermal energy.
If enacted, HB945 would create a new state-level planning and regulatory process focused on geothermal energy. It would require the Department of Energy to produce a formal assessment of geothermal potential and would direct the State Corporation Commission to consider mandatory geothermal usage requirements for very large electricity consumers. The bill could affect utility regulation, large industrial or commercial power users, and future energy planning in Virginia by linking high-load demand management to geothermal resources.
The available record shows no committee transcript or recorded votes, and the bill was left in Committee on Rules. As a result, there is no documented floor or committee debate to indicate broad support or opposition. The bill’s structure suggests a policy-oriented, exploratory approach to geothermal development, but its requirement that the Commission consider mandatory geothermal usage for high energy users could also attract scrutiny from affected industries and utility stakeholders.
The main point of potential contention is the mandate for high energy users to utilize standardized amounts of geothermal capacity, which could impose new compliance obligations on large electricity customers and the utilities serving them. Another likely issue is the Commission’s authority to adjust the 100-megawatt threshold, since that discretion could expand or narrow the bill’s reach. Supporters would likely emphasize renewable energy development, demand management, and long-term grid planning, while opponents may question feasibility, cost, administrative burden, and whether geothermal resources are available at sufficient scale.