VirginiaHB14872026 Regular SessionHouseWALLET

Underground transmission lines; pilot program, clarifies qualifying projects, report.

Sponsored By: JJ Singh (Democratic)

Signed by Governor

Summary

Pilot program for underground transmission lines; qualifying projects; levy; report. Authorizes the State Corporation Commission, in reviewing any application submitted by a public utility for a certificate of public convenience and necessity for the construction of an electrical transmission line of 500 kilovolts filed between January 1, 2025, and July 1, 2033, to approve up to four applications for qualifying projects to be constructed in whole or in part underground as part of the pilot program for underground transmission lines and to provide an expedited review of any such application. The bill removes certain provisions related to the existing pilot program. Under the bill, a project shall be qualified if (i) the Commission finds that an engineering analysis demonstrates that it is technically feasible to place the proposed line in whole or in part underground, (ii) the application contains certain information regarding projections of project costs, (iii) the application contains evidence that the governing body of each locality in which at least a portion of the proposed line will be placed underground supports the project's inclusion in the program and agrees to meet its related funding obligations, and (iv) the Commission finds the overall cost of the project reasonable and consistent with the public interest. The bill permits the Commission to deny an application for a project that otherwise meets the criteria to qualify, provided that the Commission publicly shares its rationale for doing so.The bill requires at least 50 percent of the marginal costs, as defined in the bill, of the portion of a qualifying project chosen to be placed underground within a locality pursuant to its provisions to be paid by such locality. The bill permits such a locality to meet such requirement through imposing a levy that meets certain requirements on electric utility customers within the locality, issuing a general obligation bond subject to a referendum, allocating its own funds, or any combination of such methods. The bill extends the Commission's final report deadline for the pilot program from December 1, 2024, to December 1, 2034. This bill is identical to SB 827.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 2 costs, 3 mixed.

Virginia utility customers pay project costs

The Commission must allow a separate utility rate charge for approved pilot project costs not fully recovered through transmission facility charges. Those costs are assigned to the utility's Virginia customers. The law does not specify the total costs or how much customer bills increase.

Optional local charge on electric bills

A locality with a proposed underground pilot segment can adopt an extra charge on electric customers by ordinance. Residential customers cannot be charged more than $0.99 per month. This charge is allowed in addition to the existing utility consumer tax limit. The locality must consult Commission staff and follow the required cost-allocation and recovery rules. Money collected must pay the locality's required project costs; adopting the charge is optional.

Faster approvals for limited underground power lines

Virginia limits the underground power line pilot to four projects. Generally, projects must include a 500-kilovolt section and pass within one-quarter mile of a residentially zoned area. Eligible applications can be filed from January 1, 2025, through July 1, 2033. The State Corporation Commission reviews feasibility, costs, public interest, and local support and funding commitments through an expedited process. A special rule covers an approximately 8.3-mile project with 500- and 230-kilovolt lines pending final approval on February 1, 2026. For that project, the Commission must approve an approximately 3.1-mile, locally supported underground segment within 30 days of the utility's written request. The remaining line stays above ground, and further environmental or historical analysis is not required for the approved segment. Pilot approval satisfies required findings of need, local land-use review, and zoning requirements for the line and related facilities. Utilities can acquire land rights and cables to advance construction, but other projects can still place overhead lines in the same corridor.

Localities help fund underground power lines

A supporting locality must pay at least 50% of the added cost of placing the line underground within its borders. The Commission can assign it more if customers outside the locality otherwise face harm contrary to the public interest. Localities sharing a project must coordinate how they divide its total added cost. A locality can withdraw its support and funding agreement within 30 days after final approval, removing the project from the pilot. Under applicable land-acquisition laws, participating localities can acquire land rights directly beside—but not within—the approved route and utility-held land rights. These rights are only for placing other public utilities there without interfering with the transmission line. Proceeds from placing those utilities there can help meet the locality's project costs.

Stricter rules preserve local utility tax shares

These rules apply to local electricity and natural gas taxes imposed before January 1, 2001. When converting them to usage-based taxes, localities must preserve annual revenue and each customer class's share of the tax. Electricity taxes use kilowatt-hours; natural gas taxes use units of 100 cubic feet. The law removes the exception allowing these protections only when practical. These changes do not set a new tax amount or guarantee that each customer's bill stays the same.

Sponsors & Cosponsors

Sponsor

  • JJ Singh

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 303 • No: 195

Senate vote • 3/14/2026

Conference report agreed to by Senate

Yes: 28 • No: 11

House vote • 3/14/2026

Conference report agreed to by House

Yes: 61 • No: 36

Senate vote • 3/4/2026

Senate insisted on amendment Block Vote

Yes: 40 • No: 0

House vote • 3/2/2026

Senate substitute rejected by House

Yes: 7 • No: 92

Senate vote • 2/26/2026

Passed Senate with substitute

Yes: 27 • No: 13

Senate vote • 2/26/2026

Commerce and Labor Substitute agreed to

Yes: 0 • No: 0

Senate vote • 2/25/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 2/25/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/23/2026

Reported from Commerce and Labor with substitute

Yes: 12 • No: 3

House vote • 2/16/2026

Read third time and passed House

Yes: 62 • No: 36

House vote • 2/10/2026

Reported from Labor and Commerce with substitute

Yes: 19 • No: 3

House vote • 2/5/2026

Subcommittee recommends reporting with substitute

Yes: 7 • No: 1

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0863)

    4/13/2026Governor
  2. Approved by Governor-Chapter 863 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (HB1487)

    4/6/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  5. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026House
  6. Signed by Speaker

    3/31/2026House
  7. Bill text as passed House and Senate (HB1487ER)

    3/30/2026House
  8. Enrolled

    3/30/2026House
  9. Signed by President

    3/30/2026Senate
  10. Conference report agreed to by Senate (28-Y 11-N 0-A)

    3/14/2026Senate
  11. Conference report agreed to by House (61-Y 36-N 0-A)

    3/14/2026House
  12. Conference Report released

    3/13/2026
  13. House Conferees: Singh, Sullivan, O'Quinn

    3/9/2026House
  14. Conferees appointed by House

    3/9/2026House
  15. Senate Conferees: Srinivasan, Surovell, Peake

    3/6/2026Senate
  16. Conferees appointed by Senate

    3/6/2026Senate
  17. House acceded to request

    3/5/2026House
  18. Senate insisted on amendment Block Vote (40-Y 0-N 0-A)

    3/4/2026Senate
  19. Senate requested conference committee

    3/4/2026Senate
  20. Senate substitute rejected by House (7-Y 92-N 0-A)

    3/2/2026House
  21. Fiscal Impact Statement from State Corporation Commission (HB1487)

    2/26/2026House
  22. Passed Senate with substitute (27-Y 13-N 0-A)

    2/26/2026Senate
  23. Commerce and Labor Substitute agreed to

    2/26/2026Senate
  24. Engrossed by Senate - committee substitute

    2/26/2026Senate
  25. Read third time

    2/26/2026Senate

Bill Text

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