Bill > HB397

This bill mandates the Director of the Department of Environmental Quality to establish, implement, and manage an auction program for selling allowances within a market-based trading program, aligning with the Regional Greenhouse Gas Initiative (RGGI) and the Clean Energy and Community Flood Preparedness Act. This is a shift from current law, where the Director was only authorized, not required, to do so. The bill also requires specific regulatory actions for the Commonwealth to rejoin and actively participate in RGGI, a program designed to reduce carbon dioxide emissions from electricity generating units. The proceeds from the allowance auction are to be distributed, with 45% allocated to flood preparedness, 50% to low-income energy efficiency programs, 3% for administrative expenses and climate planning, and 2% for administering low-income energy efficiency programs. Furthermore, the bill clarifies that certain energy conversion or tolling agreements will be subject to the carbon trading regulation, with the purchaser responsible for acquiring necessary CO2 allowances.

Agriculture and Natural Resources

https://lis.virginia.gov/bill-details/20261/HB397