Virginia Chamber April Briefing: April 25, 2024
President's Message
The General Assembly returned to Richmond on April 17, for its reconvened session where legislators considered bills vetoed and amended by Governor Youngkin. Of the 1,046 bills passed by the General Assembly, Governor Youngkin signed 778 bills, proposed amendments to 116 bills, and vetoed 153 bills. The General Assembly failed to override any of the Governor’s vetoes, accepted the Governor’s amendments to 61 bills, and rejected the Governor’s amendments to the other 55 amended bills. More information on vetoed and amended bills of interest to the business community can be found below.
Governor Youngkin proposed 233 amendments to the FY25/26 biennial budget passed by the General Assembly. Rather than vote on individual amendments, General Assembly leaders and the Governor agreed to call a special session for May 13 to consider the budget, with a final vote expected on May 15.
The ability to reach an agreement on the budget in a timely manner is important to keep Virginia positioned as a top state for business. Maintaining Virginia's coveted AAA bond rating hinges on the legislature's fiscal management, which directly impacts the cost of borrowing for the state and its agencies. The AAA bond rating is an important signal of the Commonwealth’s fiscal stability and is a key factor for attracting and retaining businesses in Virginia.
A cooperative budget that addresses key priorities and is delivered on time demonstrates a commitment to long-term economic stability and growth. The work of the General Assembly to reach a budget agreement on time reinforces its reputation as a business-friendly legislature working to protect Virginia’s business climate rankings.
In closing, I would like to thank both the Virginia House of Delegates and State Senate for their unanimous approval of the House and Senate Resolutions, which recognize the Virginia Chamber of Commerce's 100-year Anniversary. Both Resolutions cite the Virginia Chamber of Commerce as a leading advocate for businesses in the Commonwealth, supporting economic prosperity and enhancing the quality of life for all Virginians.
Best Regards,
Barry DuVal
President & CEO
Virginia Chamber of Commerce
Vetoed Bills
Governor Youngkin vetoed 153 of the 1,046 bills passed by the General Assembly this session. The full list of vetoed bills is available here. During the April 17 reconvened session, all of the Governor’s vetoes were upheld. Vetoed bills of interest to the business community include:
House Bill 1 & Senate Bill 1 – Raising the hourly minimum wage to $15 by 2026
House Bill 418 & Senate Bill 259 – Allowing class action lawsuits in Virginia Circuit Courts
House Bill 570 & Senate Bill 274 – Establishing a Prescription Drug Affordability Board in Virginia
House Bill 770 – Providing double damages for willful violation of prohibited retaliatory actions by an employer
House Bill 805 & Senate Bill 14 – Allowing localities to raise the local sales and use tax for purposes of school construction and/or renovation
House Bill 938 & Senate Bill 542 – Allowing employees “locked-out” due to a labor dispute to be eligible for unemployment insurance
House Bill 974 – Allowing circumstantial evidence to satisfy the burden of proof in certain claims for workers’ compensation
House Bill 990 & Senate Bill 370 – Prohibiting employers from seeking wage or salary history of prospective employees
House Bill 1098 – Requiring employers of 50 or more employees to provide unpaid family bereavement leave
Senate Bill 373 – Establishing a mandatory paid family and medical leave insurance program in Virginia
Amended Bills
Governor Youngkin recommended amendments to 116 of the 1,046 bills passed by the General Assembly this year. The full list of bills with amendments proposed by the Governor can be found here. Governor Youngkin is expected to sign amended legislation approved by the General Assembly. Legislation with amendments rejected by the General Assembly may be signed or vetoed by the Governor. Amended bills of interest to the business community include:
House Bill 800 & Senate Bill 713 – Relates to pole attachments to accommodate cable television systems and telecommunications. The Governor’s amendments provide that the State Corporation Commission may extend proceedings to resolve disputes by 60 days beyond the timeline specified in the enrolled legislation. The General Assembly unanimously accepted the Governor’s amendments.
House Bill 950 – Temporarily prohibits modifications to the Uniform Statewide Building Code. The Governor’s amendments to this legislation would require the Board of Housing and Community Development to evaluate the impact of any introduced legislation requiring the Board to amend the Building Code and transmit that evaluation to the General Assembly. The Governor’s amendments were rejected by the House of Delegates.
House Bill 1062 & Senate Bill 271 – Relates to net energy metering and eligible customer-generators and agricultural customer-generators. The Governor’s amendments strike language providing that certain customer-generators be exempt from standby charges. The General Assembly approved the Governor’s amendments.
House Bill 1491 & Senate Bill 454 – Relates to the recovery of development costs associated with small modular nuclear reactor (SMR) facilities. The Governor’s amendments establish certain parameters in cost recovery for the legislation. House Bill 1491 applies to SMR development by American Electric Power, while Senate Bill 454 applies to SMR development by Dominion Energy Virginia. The General Assembly approved the Governor’s amendments to both bills.
Senate Bill 256 – Relates to motor vehicle insurance and remedies for bad faith for refusal of claims. The Governor’s amendments add additional provisions to the legislation and add an enactment clause clarifying the legislation applies to claims after July 1, 2024. The General Assembly approved the Governor’s amendments.
Senate Bill 729 – Creates the Virginia Clean Energy Innovation Bank. The Governor’s amendments add a reenactment clause such that the bill’s provisions do not become law unless reenacted by the General Assembly in the 2025 session. The Governor’s amendments were rejected by the Senate.
Budget Amendments
In addition to legislation discussed above, Governor Youngkin also proposed 233 individual amendments to the budget for fiscal years 2025 and 2026 as approved by the General Assembly on March 9th. Governor Youngkin also recommended nine amendments to the “caboose” budget for FY24. Many of these amendments involve adjustments to individual appropriations for specific programs, projects, and initiatives.
For example, Governor Youngkin's amendment to the appropriation for the Virginia Business Ready Sites Program Fund proposes $50 million more for the program than was included in the budget passed by the General Assembly.
In the caboose budget and the FY25–FY26 budget, the Governor struck language requiring the Commonwealth to rejoin the Regional Greenhouse Gas Initiative (RGGI) within 90 days of the budget's effective date. Governor Youngkin also vetoed provisions of the budget which would expand the sales and use tax to digital products and services, including business-to-business transactions involving software application services.
Before the start of the reconvened session, Governor Youngkin and General Assembly leaders reached an agreement to return to Richmond for a special session on May 13th to act on the budget. Between now and May 13th, the Governor and General Assembly are expected to negotiate a new budget to be presented to the General Assembly on May 13th and to be voted on by the General Assembly on May 15th. Virginia law requires at least 48 hours to elapse between the presentation of the budget and the final vote on the budget.
The full list of the Governor’s proposed amendments to the caboose budget can be found here. The full list of the Governor’s proposed amendments to the budget for FY25/26 can be found here. The Virginia Chamber will continue monitoring budget developments and will provide an update once the budget is approved by the General Assembly and the Governor.
Securities and Exchange Commission Climate-Risk Disclosure Rules Finalized
On March 6, the U.S. Securities and Exchange Commission (SEC) adopted rules requiring public companies to disclose climate-related information in their registration statements and annual reports. Companies filing registration statements with the SEC will be required to disclose climate-related risks; the actual and potential material impacts of those risks on the business’s strategy, business model, or outlook; steps taken to mitigate the risks; processes used to identify, assess, and manage risks; and information about the business’s climate-related targets or goals which are likely to affect the business. Further, large accelerated filers (LAFs) and accelerated filers (AFs) that are not otherwise exempted will be required to disclose certain information related to Scope 1 and/or Scope 2 emissions. Scope 1 emissions include those from sources owned or controlled directly by a business; Scope 2 emissions are emissions caused indirectly by the company (e.g., emissions from electrical generation used to power a business). A summary of the adopted rules prepared by the SEC can be found here. The full text of the rules can be found here.
Environmental Protection Agency Final Rule for Vehicle Emissions
On March 20, the Environmental Protection Agency (EPA) announced a final rule pertaining to emissions standards for light-duty and medium-duty vehicles beginning with model year 2027 and phased in through 2032. The rule requires auto manufacturers to ensure that total emissions in their light-duty and medium-duty fleet meet the EPA’s standards or face penalties. Beginning with model year 2027, total light-duty fleet emissions standards will be set at, on average, 170 emitted grams of carbon dioxide per mile. By 2032, the standard is increased to no more than, on average, 85 emitted grams of carbon dioxide per mile. Although these standards are expected to spur the adoption of electric and hybrid-electric vehicles, the EPA standards do not explicitly require manufacturers to produce a certain number or percentage of such vehicles. However, it is expected that manufacturers will only be able to comply with the standards by producing a larger share of electric and hybrid vehicles relative to the share of internal combustion vehicles in their fleets. A summary of the rule prepared by the EPA can be found here. The full text of the rules can be found here.
Virginia Department of Transportation Announces Electric Vehicle Charging Locations
On March 19, the Virginia Department of Transportation (VDOT) announced the location of the first 18 electric vehicle charging stations in the Commonwealth to be funded, in part, by the National Electric Vehicle and Infrastructure (NEVI) program created by the 2021 Infrastructure Investment and Jobs Act (IIJA). The NEVI program requires states first build out charging stations on federal alternative fuel corridors (effectively, the Interstate Highway System) not less than fifty miles from the next nearest charging station and not more than one mile from an Interstate exit. The following map shows the location of current NEVI-compliant charging stations and the locations of the 18 proposed awards under the first round of funding. The table below notes the applicants, hosts, locations, and awarded first round funding. Over the five-year period of the NEVI program, Virginia is expected to receive more than $100 million to build out electric vehicle charging infrastructure. Applicants seeking to build and/or host a NEVI-compliant charging station are required to match at least 20% of the total cost.
The next phase of the program in Virginia will focus on expanding electric vehicle charging infrastructure on major state highways in Virginia, including Routes 29, 460, and 17. Interested parties can follow updates on VDOT’s NEVI webpage here. If you would like to receive updates on VDOT’s NEVI program development, you may do so by emailing nevi@vdot.virginia.gov.