(SB893)

GOVERNOR'S VETO

Pursuant to Article V, Section 6 of the Constitution of Virginia, I veto Senate Bill 893, which would add geothermal heating and cooling systems as eligible for compliance with the renewable portfolio standard (RPS).

This bill subsidizes geothermal heat pumps over other heating ventilation and cooling (HVAC) technologies such as air sourced heat pumps or high-efficiency natural gas furnaces and establishes a deficiency payment that sets a price ceiling for the qualified geothermal renewable energy credits (gRECs) which acts as a regulatory induced price anchor driving up costs to Virginia's ratepayers. HVAC technologies should compete on their own merits and consumers should make decisions based on their own needs.

Accordingly, I veto this bill.