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Subcommittee advances bill pushing utilities to upgrade low‑income homes to heat pumps
Summary
The House Commerce and Labor subcommittee reported a substitute of HB2 that directs Dominion and Appalachian Power to expand efficiency upgrades for income‑qualified households, harmonize with existing programs and change reporting to triannual. Supporters said the upgrades could save households roughly $1,400 a year; the substitute passed the panel 7‑2.
The House Commerce and Labor subcommittee advanced a substitute to HB2 on voice and roll votes, sending it forward by 7 to 2 after testimony from utilities, advocates and industry groups.
Delegate Carrie Carr (patron) told the panel the bill sets performance targets for Dominion Energy and Appalachian Power to deliver efficiency upgrades — principally replacing costly oil and propane furnaces with high‑efficiency heat pumps for income‑qualified households. “This bill would save our customers over $1,400 per year,” Carr said, describing the measure as narrowly aimed at households that face the highest energy burdens.
Walton Shepherd of the Natural Resources Defense Council testified in support and said the measure would "significantly help [families] make ends meet," citing per‑household savings in APCO territory. Environmental and low‑income advocates including the Sierra Club and the Virginia Poverty Law Center also backed the bill, saying coordination with existing programs would expand access.
Representatives of Dominion and Appalachian Power said they supported the bill in principle but requested technical edits to mitigate unintended consequences; Dominion indicated it would review a draft expected later in the week. Mike O'Connor of the Virginia Petroleum Marketers and Propane Association opposed the measure’s current scope, arguing it targets a subset of delivered‑fuel households and could unduly affect small businesses that rely on on‑site fuel storage.
Witnesses told members the program would be financed through a mix of utility funds, state and federal grant dollars and additional electricity revenue from new connections. NRDC and others said program changes would still require approval from the State Corporation Commission, and witnesses characterized the load from residential heat pumps as manageable when paired with utility demand‑management programs.
The substitute reported favorably on a 7‑2 vote and will move to the full committee for further consideration.
