A BILL to amend the Code of Virginia by adding a section numbered 10.1-1186.7, relating to Department of Environmental Quality; carbon market participation; coastal and marine resources.
Summary
HB1152 would authorize the Department of Environmental Quality to participate in carbon markets for projects tied to the preservation, restoration, and sustainable management of Virginia’s coastal and marine resources on state-owned bottomlands and other state property. The bill allows the Department to enter into agreements with private entities to register and sell offset credits, and it gives the Department exclusive title to those credits until they are sold.
The measure also permits the Department to work with leaseholders of state-owned bottomlands and to retain part of the revenue to cover administrative costs. Any proceeds from credit sales would be divided so that 75 percent goes to the Oyster Replenishment Fund and 25 percent goes to the qualifying leaseholder, creating a dedicated funding stream for oyster-related restoration and coastal resource management.
Impact
The bill would add a new section to the Code of Virginia, § 10.1-1186.7, expanding DEQ’s authority into carbon market participation linked to coastal and marine conservation. It would create a statutory framework for generating and selling carbon offset credits from state-owned aquatic and bottomland resources, establish ownership and revenue-sharing rules, and direct most proceeds to the Oyster Replenishment Fund while allowing administrative cost recovery and payments to leaseholders.
Sentiment
The bill appears to have received generally favorable consideration in committee and on the House floor, passing the House with a strong bipartisan margin after being reported from committee with a substitute. However, the bill was later stricken at the request of the patron in the Agriculture, Conservation and Natural Resources committee, indicating that despite support, the proposal did not advance to enactment in its introduced form.
Contention
The main points of discussion likely centered on whether a state agency should participate in carbon markets, how offset credits tied to public coastal resources should be owned and sold, and how revenues should be distributed among the state, leaseholders, and the Oyster Replenishment Fund. Potential concerns would include administrative complexity, the role of private entities in credit sales, and whether carbon-market participation is an appropriate mechanism for managing public marine resources, while supporters would emphasize conservation funding and revenue generation for oyster restoration.
Virginia Institute of Marine Science; study of the cumulative impacts of surface water intakes on aquatic fauna and water quality in the Chesapeake Bay and its major Virginia tributaries; report.