Carbon market participation; coastal and marine resources.

Plain English Breakdown

The official source material does not provide specific criteria for leaseholder qualification or the distribution of remaining revenues after administrative costs are covered.

Department Can Join Carbon Market for Coastal and Marine Resources

This bill allows the Department of Environmental Quality (DEQ) to join carbon markets to protect coastal areas, sell credits, and distribute proceeds between the Oyster Replenishment Fund and leaseholders.

What This Bill Does

• Allows the Department of Environmental Quality (DEQ) to participate in carbon markets for protecting and restoring coastal and marine resources on state-owned land.
• Requires DEQ to hold ownership of carbon credits until they are sold.
• Specifies that 75% of money from selling these credits goes to the Oyster Replenishment Fund, while 25% goes to qualifying leaseholders.

Who It Names or Affects

• Department of Environmental Quality
• Leaseholders of state-owned bottomlands and property

Terms To Know

Carbon market

A system where companies can buy and sell credits that represent a certain amount of carbon dioxide or other greenhouse gases they are allowed to release.

Oyster Replenishment Fund

A fund used for projects aimed at restoring oyster populations in Virginia's coastal waters.

Limits and Unknowns

• The bill does not specify how the remaining revenue will be allocated after covering administrative costs.
• It is unclear what criteria a leaseholder must meet to qualify for receiving funds from carbon credit sales.

Official Summary Text

Department of Environmental Quality; carbon market participation; coastal and marine resources.
Allows the Department of Environmental Quality to participate in any carbon market for the preservation, restoration, and sustainable management of the Commonwealth's coastal and marine resources on state-owned bottomlands and property and enter into agreements necessary to facilitate such participation. The bill requires the Department to hold exclusive title to such credits until such credits are sold. Any revenues resulting from the sale of such credits are required to be distributed as follows: 75 percent to the Oyster Replenishment Fund and 25 percent to the qualifying leaseholder.

Current Bill Text

HOUSE BILL NO. 1152

AMENDMENT IN THE NATURE OF A SUBSTITUTE

(Proposed by the House Committee on Agriculture, Chesapeake and Natural Resources

on February 11, 2026)

(Patron Prior to Substitute--Delegate Hodges)

A BILL to amend the Code of Virginia by adding a section numbered
10.1-1186.7
, relating to Department of Environmental Quality; carbon market participation; coastal and marine resources.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered
10.1-1186.7
as follows:

§
10.1-1186.7
. Carbon market participation
; coastal and marine resources.

The Department may
participate in any carbon market for the preservation, restoration,
and sustainable management of the Commonwealth's coastal and marine resources on state-owned bottomlands
and property. The Department may enter into agreements necessary to facilitate such participation, including with private entities for assistance with the registration and sale of offset credits.
The Department shall hold exclusive title to such credits until such credits are sold. The Department may
(i)

enter into agreements with leaseholders of state-owned bottomlands
and (ii) retain a portion of any resulting revenue to cover its administrative costs. Any revenues resulting from the sale of such credits shall be distributed
as follows: 75 percent to the Oyster Replenishment Fund pursuant to §
28.2-542
and 25 percent to such qualifying leaseholder.