From the 2026 session to what’s next: Expanding our work in Virginia

Virginia’s 2026 legislative session made one thing clear: the Commonwealth is entering a new phase of energy policy.

Electricity demand is rising faster than it has in decades, driven by data centers, advanced manufacturing, and broader electrification. At the same time, policymakers are working to maintain reliability, manage costs for households, and stay on track to decarbonize the economy. Addressing these challenges simultaneously will require a broad set of tools and policy frameworks.

The Southeast is one of the most important regions in the country for energy policy, and the Commonwealth is a leading example of how new energy challenges are being addressed in real time.

CATF’s work globally focuses on enabling a zero-carbon, high-energy world, advancing technologies and policies across clean firm power, grid infrastructure, siting and permitting, and industrial decarbonization. Contributing that expertise in the Southeast means helping states navigate this next phase of energy transition—one where demand growth and decarbonization can happen at the same time.

What happened in Virginia’s 2026 legislative session

Virginia lawmakers and the governor took several pragmatic steps to begin updating the state’s energy policy framework. Rather than attempting sweeping reforms, the General Assembly focused on targeted improvements across planning, siting, and infrastructure. These efforts represent constructive steps toward addressing the state’s evolving energy needs.

Key areas of CATF support and engagement

Several legislative and administrative actions advanced this session that CATF identified and supported as particularly important.

• Diversifying Virginia’s electricity portfolio. HB 429 (Bolling) / SB 249 (Surovell) modernize Virginia’s Integrated Resource Planning process by expanding the planning horizon, requiring evaluation of a broader set of technologies, and improving transparency.

• Expanding opportunities for zero-carbon electricity procurement. HB 369 (Reid) / SB 598 (Deeds) take a step toward modernizing Virginia’s clean energy framework by allowing large customers to procure zero-carbon electricity, including clean firm resources, through the Accelerated Clean Energy Buyers program.

• Improving how energy infrastructure is sited. HB 711 (Herring) / SB 347 (VanValkenburg) set clear statewide standards for solar development while preserving local authority, and HB 889 (Shin) / SB 497 (Perry) explore co-locating transmission in existing highway rights-of-way. Together, these bills underscore that siting and permitting are among the biggest barriers to deploying energy infrastructure at scale.

• Creating opportunities for workforce development. HB 67 (Feggans) / SB 25 (Carroll Foy) direct the Department of Energy to identify and develop training resources to advance workforce development in the offshore wind industry, an important signal that the state intends to remain a leader in offshore wind deployment and supply chain development.

• Rejoining the Regional Greenhouse Gas Initiative (RGGI). After the previous administration withdrew Virginia from the program, both the legislature and Governor Spanberger began the process to participate in this multi-state carbon trading market program to reduce greenhouse gas emissions. Virginia will rejoin by July 1, 2026. Rejoining RGGI would restore a key tool for reducing power sector emissions while generating revenue that can be reinvested in energy efficiency and flood resilience.

• Establishing a new Chief Energy Officer appointee position. This is a strategic administrative step given the importance of energy to Virginia households and economy. This position is designed to coordinate energy policy across agencies, align economic development and energy planning, and ensure the state can respond effectively to rising demand, infrastructure constraints, and evolving technology pathways. As Virginia navigates the next phase of its energy transition, centralized leadership and strategic coordination will be critical to translating policy goals into implementation.

What didn’t happen and what comes next

While this session delivered meaningful progress, it also reinforced that more comprehensive policy updates are needed.

Virginia’s Clean Economy Act (VCEA) remains the backbone of the state’s energy policy, but as demand grows and reliability concerns increase, the next phase of policy development will need to:

• Better integrate clean firm resources into planning and procurement
• Strengthen grid planning and transmission development frameworks
• Expand tools to manage large load growth
• Continue improving energy siting and permitting systems

Modernizing the VCEA and related policies will be essential to ensuring the Commonwealth can meet its goals in this era of high electricity demand, while maintaining reliability and affordability.

Looking ahead: CATF’s role in Virginia and the Southeast

CATF continues to engage with policymakers, agencies, and stakeholders across Virginia and the Southeast to support the next phase of energy policy development. Our approach is grounded in providing:

• Technical expertise on emerging technologies and system planning
• Policy design support to align reliability, affordability, and decarbonization
• Coalition engagement to help advance pragmatic, durable solutions

Virginia is a place where national energy challenges are increasingly concentrated, and where thoughtful, technically grounded policy can have an outsized impact. The work ahead will require continued collaboration, iteration, and a willingness to build on the meaningful progress made in this session.

CATF looks forward to working with state leaders and partners to ensure Virginia and the Southeast can build carbon-free economies and energy systems.