Governor's Axe Falls: VA SB853's Bid for Fair Wages & Apprenticeships in Green Energy Vetoed

The Promise and Peril of VA SB853: Fair Wages Blocked

In the 2025 Virginia legislative session, Senate Bill 853 (SB853) emerged with a clear objective: to ensure that the transition towards renewable energy in the Commonwealth translated into well-paying jobs and robust training opportunities for Virginia's workforce. The bill aimed to mandate prevailing wage rates and establish apprenticeship requirements for mechanics, laborers, and workers involved in building and maintaining specific electricity generating sources, particularly those qualifying under Virginia's Renewable Portfolio Standard (RPS). Despite navigating a challenging legislative path, the bill ultimately met its end with a gubernatorial veto, halting its potential impact.

What SB853 Proposed

Introduced by Senator Aaron Rouse (D-SD-007), with Senator Angelia Williams Graves (D-SD-021) as a co-sponsor, SB853 sought to tie public service company projects, including those undertaken by contractors or third-party developers for RPS-eligible sources, to fair labor standards. Specifically, it required:

Prevailing Wages: Workers on these projects would be paid at the prevailing wage rate determined by the Virginia Department of Labor and Industry. This standard aims to reflect the typical wages paid to workers in a specific occupation and geographic area, preventing a race-to-the-bottom scenario on publicly supported projects.
Apprenticeship Requirements: The bill mandated that 15% of total labor hours on covered projects be performed by qualified apprentices registered with the state. Furthermore, any project employing four or more individuals would need to include at least one qualified apprentice.
Penalties: Failure to comply would result in financial penalties paid to the Commissioner of Labor and Industry, ensuring accountability.

The bill, identical to its House counterpart HB 2356, represented a significant effort to embed worker protections and workforce development pathways directly into Virginia's growing green energy sector.

A Journey Through the Legislature: Tight Votes and Partisan Lines

SB853's journey began on January 3, 2025, when it was prefiled and referred to the Senate Committee on Commerce and Labor. This committee, holding significant influence (LegiEquity Power Score: 85.0), reported the bill with a substitute amendment on January 20th, but not without dissent, passing on a 9-Y to 6-N vote. This early division foreshadowed the bill's contentious path.

After procedural steps, including dispensing the constitutional reading (a unanimous 40-Y 0-N vote on Jan 22), the bill faced its first major floor test. On January 24th, the Senate passed SB853, incorporating the committee substitute, but by a narrow margin: 20 Yeas to 18 Nays. This close vote highlighted the lack of bipartisan support flagged by LegiEquity analysis; the division likely fell along party lines, typical for prevailing wage debates.

Moving to the House of Delegates, SB853 was referred to the Committee on Labor and Commerce on February 5th. This committee also passed the bill, but again by a slim margin (11-Y to 10-N) on February 6th.

The final legislative hurdle came on February 12th, when the full House of Delegates voted. The bill squeaked through with a 50-Y to 47-N vote. This razor-thin margin underscored the deep divisions surrounding the bill's mandates.

Having passed both chambers, the bill was enrolled (SB853ER represents the final text) and sent to the Governor's desk on February 20th.

LegiEquity Analysis: A Lost Opportunity for Positive Impact?

LegiEquity's analysis projected SB853 to have a significantly positive impact, scoring an 80% Overall Positive Impact with High Confidence. The breakdown revealed particularly strong potential benefits for specific demographics:

Age (Adults & Youth): 90% Positive Impact - Prevailing wages offer better earning potential for established workers, while apprenticeship requirements create structured learn-while-you-earn pathways for younger individuals entering the trades.
Veterans: 90% Positive Impact - Veterans often transition into skilled trades, and apprenticeship programs frequently prioritize veteran recruitment. Fair wages support economic stability for former service members.
Race (Black & Hispanic Virginians): 80% Positive Impact - Historically, these communities have faced wage gaps. Prevailing wage laws can help standardize pay scales, and targeted apprenticeship outreach can improve access to skilled, well-paying careers in growing sectors like renewable energy.

The bill's structure, promoting both fair compensation and structured training, aligned with creating equitable opportunities within the burgeoning green economy. The veto, therefore, potentially prevents these positive outcomes from materializing for many Virginians.

The Final Word: Vetoed

Despite successfully navigating the legislative process, SB853's journey ended abruptly on March 25, 2025, when the Governor vetoed the bill. While the specific veto statement details the Governor's rationale, common arguments against prevailing wage laws include concerns about increased project costs for businesses and taxpayers, potential stifling of competition, and government interference in the free market. Proponents, like Senator Rouse (Effectiveness Score: 55.0) and Senator Williams Graves (Effectiveness Score: 50.0), likely argued that the bill ensured taxpayer-supported projects created family-sustaining jobs and built a highly skilled local workforce essential for Virginia's energy future.

Historically, prevailing wage laws, like the federal Davis-Bacon Act, have been debated for decades. They aim to ensure government spending supports local wage standards and quality workmanship, while opponents argue they inflate costs. SB853 applied this concept specifically to the renewable energy sector, a focal point of economic and environmental policy.

Conclusion: What Now for Virginia's Green Workforce?

Virginia SB853 represented a legislative attempt to proactively shape the labor landscape within the state's renewable energy expansion. By linking projects to prevailing wages and apprenticeship quotas, it aimed to ensure that the economic benefits of this transition were broadly shared, particularly among demographics poised to gain significantly, according to LegiEquity analysis. The Governor's veto halts this specific approach, leaving questions about how Virginia will ensure quality jobs and workforce development pathways as its green energy sector continues to grow. The close votes throughout its journey suggest the debate over fair wages and workforce standards in this critical industry is far from over in the Commonwealth.

LegiEquity analyzes proposed legislation to determine its potential impact on various demographic groups. Our goal is to provide objective insights into how laws may affect different communities.