VA SB802

Requires the Virginia Air Pollution Control Board to establish and maintain a market-based carbon dioxide emissions trading program consistent with the Regional Greenhouse Gas Initiative (RGGI)

Changes the Director's authority to establish an allowance auction program from permissive ("authorized to") to mandatory ("shall")

Allocates auction revenue: 45% to flood preparedness assistance for localities, 50% to low-income energy efficiency programs administered by DHCD, 3% to administrative costs and climate planning, and 2% to program implementation

Defines "life-of-the-unit contractual arrangement" to include energy conversion or tolling agreements with primary terms of 20 years or more, making purchasers responsible for acquiring required CO2 allowances

Declares the provisions to be declaratory of existing law, codifying Virginia's participation in the RGGI carbon trading program