The 2026 General Assembly enacted a sizable package of energy, environment, and housing changes. Most do not directly require business action, but they shape the operating environment for property owners, commercial real estate, and any business with energy-intensive operations.
Why it matters: Several of these changes will reshape how energy is priced and procured in Virginia, how localities approach environmental planning, and what tools municipalities have for affordable housing development. Independent businesses with longer-term real estate or energy decisions should track them.
Energy
Utility energy efficiency upgrades for low-income residents (HB 2/SB 72): Dominion Energy Virginia and Appalachian Power are directed to make reasonable efforts to provide prescriptive efficiency measures to at least 30 percent of qualifying low-income households by December 31, 2031, subject to State Corporation Commission determination of public interest. Indirect effect on commercial energy customers through utility rate structures.
Income-Qualified Energy Efficiency Task Force (HB 3/SB 5): A new task force evaluates barriers and coordination of low-income energy efficiency programs, with a report due September 30, 2027.
Renewable portfolio standard changes (HB 369/SB 598): Revises conditions for accelerated clean energy buyers contracting with Dominion or Appalachian Power for renewable energy certificates. Of interest to larger commercial energy users with their own clean energy procurement strategies.
Market-based emissions trading program (HB 397/SB 802): DEQ and the State Air Pollution Control Board are directed to establish a market-based trading program consistent with the Regional Greenhouse Gas Initiative to reduce CO2 emissions from electricity generating units. Long-term effect on electricity costs.
Electric utilities — retail supplier access (HB 921): Nonresidential customers with noncoincident peak demand over 5 megawatts may now purchase electricity from licensed retail suppliers. Return-to-service notice period reduced from five years to 18 months. Relevant for larger commercial and industrial customers.
Solar canopies in surface parking (SB 26) — effective July 1, 2027: Localities may require solar canopies over designated nonresidential parking areas with 100 or more contiguous spaces, up to 50 percent coverage, with deviation provisions for shading or feasibility constraints.
Appliance energy and water standards (HB 672/SB 256): If federal Energy Policy and Conservation Act standards are removed by the U.S. Secretary of Energy, Virginia will adopt equivalent standards with a product compliance date on or before December 31, 2025.
Demand response programs evaluation (SB 43): Department of Energy evaluation and report due November 1, 2026.
Environment
Environmental justice planning (HB 256/SB 425): Cities with population over 20,000 and counties with population over 100,000 must consider adopting an environmental justice strategy at the next comprehensive plan review beginning July 1, 2026. Strategies identify environmental justice and fenceline communities, baseline environmental and health conditions, and policy objectives to reduce health risks. Relevant for any business considering expansion or new development in larger Virginia localities.
Service districts — invasive plant control (HB 388/SB 89): Service districts created within a locality may now control the spread of invasive plant species on the Department of Conservation and Recreation’s list.
Plastic bag tax distribution to towns (HB 341): Towns within counties with a plastic bag tax now receive a share of the revenue based on the local sales tax distribution formula. Affects local revenue context, not direct business compliance.
Housing
These changes expand the tools localities have for affordable housing development. Of interest if your business is considering employee housing partnerships, evaluating expansion in markets where affordable housing supply affects workforce availability, or participating in mixed-use commercial development.
Affordable housing preservation (HB 4): Localities may exercise a right of first refusal on publicly supported housing to preserve affordability for at least 15 years.
Mixed-income housing loan pilot (HB 196/HB 820): A two-year DHCD pilot program for mixed-income housing loan origination, with annual reports due each November 1.
Local affordable housing performance grants (HB 352): Localities with industrial or economic development authorities may establish performance grant programs, with restrictive covenants of up to 30 years.
Expedited approval of affordable housing developments (HB 594): Localities may authorize administrative approval — rather than legislative — of certain affordable housing rezonings meeting fair housing, utility, and density criteria.
Industrial development authorities — housing powers (HB 806): IDAs may now exercise their powers for single or multi-family residences to promote safe and affordable housing.
Local affordable housing zoning authority (HB 867) — effective July 1, 2027: Any locality may now provide for an affordable housing dwelling unit program through zoning ordinance amendment, including density bonuses, lot size reductions, and accessory housing unit allowances. Significantly expands prior authority that was limited to certain larger jurisdictions.
The bottom line: None of these changes require immediate compliance action from most independent businesses. But the energy procurement, environmental planning, and housing development changes shape the longer-term operating environment in ways worth tracking — particularly for businesses with significant energy use, real estate strategy, or workforce housing concerns.
What’s next: Wednesday, July 1, we close out the series with a consolidated compliance checklist organized by business profile.
This communication is provided for general informational purposes only and does not constitute legal advice. Statutory citations and effective dates reflect the bills as enacted by the 2026 Virginia General Assembly. Member businesses should consult qualified legal counsel for guidance on specific compliance obligations applicable to their circumstances.