Virginia Governor Signs Legislation Requiring Transition to Carbon-Free Power by 2050

Democratic Governor Ralph Northam on April 11 signed into law the Virginia Clean Economy Act, which sets the state on the path to carbon-free power by 2050. The law replaces the voluntary renewable energy portfolio program with a mandatory standard, and paves the way for an enormous expansion of wind and solar power, and energy storage and efficiency. The legislation establishes a carbon dioxide cap-and-trade program consistent with the Regional Greenhouse Gas Initiative, the ten-state compact that established the nation’s first mandatory power sector emissions-trading program.

The new renewable portfolio standard requires Dominion Energy to source 100 percent of its electricity from carbon-free sources by 2045 and Appalachian Power Company by 2050. The law calls for the closure of fossil fuel power plants by 2045 and prohibits regulators from issuing permits for such plants until the completion of a study providing recommendations on how to achieve the goal.

The law sets an offshore wind target of 5.2 gigawatts by 2034, the third-largest state commitment in the U.S. Further, the bill requires utilities Appalachian Power Co. and Dominion Energy Inc. to procure at least 400 megawatts and 2.7 gigawatts of energy storage capacity, respectively, by 2035.

The legislation codifies the 2050 clean energy goal that Governor Northam laid out in an executive order issued last September. At the same time,
Dominion Energy Inc., the parent company of Virginia’s dominant utility, announced a new commitment to achieve net zero emissions by 2050.