# Virginia HB895: Electric utilities; energy storage requirements, Department of Energy to develop model ordinance. Virginia HB895, Electric utilities; energy storage requirements, Department of Energy to develop model ordinance., is a 2026 Regular Session House bill sponsored by Richard C. "Rip" Sullivan, Jr. (Democratic); status signed, last action 2026-04-13 (Acts of Assembly Chapter text (CHAP0694)); PRIA reads it as touching household money (as of 2026-10-12). - Canonical: https://policyrisk.com/state-bill/VA-HB895-2026 - As of: 2026-10-12 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Virginia HB895 - State: Virginia - Session: 2026 Regular Session - Title: Electric utilities; energy storage requirements, Department of Energy to develop model ordinance. - Status: signed - Chamber: House - Introduced: 2026-01-13 - Last action: 2026-04-13, Acts of Assembly Chapter text (CHAP0694) - Sponsor: Richard C. "Rip" Sullivan, Jr. (Democratic) - Cosponsors: 0 - Touches household money: yes - Roll calls: 12 (258 yes, 103 no in all) - Economic provisions PRIA read: 14 ## Summary Electric utilities; energy storage resources; Department of Energy to develop model ordinances; State Corporation Commission to conduct technology demonstration program. Increases the targets for energy storage capacity that Appalachian Power and Dominion Energy Virginia are required to petition the State Corporation Commission (the Commission) for approval to construct, acquire, or procure and extends the time frame by which such capacity must be met. Under the bill, (i) Appalachian Power shall petition the Commission for approval to construct, acquire, or procure at least 780 megawatts of short-duration energy storage capacity by 2040 and 520 megawatts of long-duration energy storage capacity by 2045 and (ii) Dominion Energy Virginia shall petition the Commission for approval to construct, acquire, or procure at least 16,000 megawatts of short-duration energy storage capacity by 2045 and 4,000 megawatts of long-duration energy storage capacity by 2045. "Long-duration energy storage" and "short-duration energy storage" are defined in the bill. Under the bill, the Commission shall approve an independent auditor to help develop criteria for and to help review requests for proposals for new energy storage resources. The bill requires the Commission to conduct a technology demonstration program for long-duration energy storage resources and initiate a proceeding to determine if such technology is viable and that the targets in the bill are reasonably achievable, for which a final order shall be entered no later than March 1, 2031. Certain provisions of the bill are only effective upon such determination by the Commission. The bill requires the Department of Energy, in consultation with the Department of Environmental Quality and the Department of Fire Programs, to develop model ordinances suggested for use by localities in their regulation of energy storage projects by December 1, 2026. The bill directs the Commission to initiate a technical conference by September 1, 2026, to evaluate safety standards and practices for energy storage development. The bill also includes a provision authorizing the Commission to evaluate energy storage project proposals during annual petitions filed for the development of new renewable generation capacity. This bill is identical to SB 448. ## Bill overview: provisions PRIA read - Qualifying clean energy buyers avoid charges: benefit, medium. Qualifying accelerated renewable energy buyers can contract directly for renewable certificates or bundled clean power covering some or all electricity use. Qualifying generation must be in the PJM grid region and have begun commercial operation after January 1, 2015. Buyers receive covered renewab… - Legacy power buyers keep charge exemptions: benefit, low. A Phase II customer avoids specified utility charges after choosing competitive supply before April 1, 2019. That customer must also have had peak demand above 100 megawatts in 2019. A Phase I customer qualifies after choosing competitive supply before February 1, 2019. The exemption lasts only whi… - Utilities can test long-duration storage technologies: benefit, low. The State Corporation Commission must establish a long-duration storage demonstration program. A Phase II utility can seek approval for at least three technologies totaling at least 4,000 megawatt-hours of discharge capacity. Existing long-duration storage can count, and the Commission can excuse t… - Utility payments fund disadvantaged community programs: benefit, low. Virginia's Department of Energy manages collected renewable shortfall payments in an account that earns interest. It directs 50% to job training and 30% to renewable energy programs in historically economically disadvantaged communities. Another 16% supports energy-saving measures at public facilit… - Utility customers pay clean energy charges: cost, medium. Customers in affected utility areas pay covered renewable energy, storage, and compliance costs, even when choosing another electricity supplier. Exceptions apply to qualifying renewable buyers and specified offshore-wind costs. The law required cost-allocation proceedings by September 1, 2020, and… - Phase II utilities expand renewable purchases: mixed, high. Each Phase II utility must seek approval for 16,100 megawatts of Virginia solar or onshore wind by December 31, 2035. The schedule requires 3,000 megawatts by December 31, 2024; 3,000 more by December 31, 2027; 4,000 more by December 31, 2030; and 6,100 more by December 31, 2035. At least 35% of ea… - Utilities face short-duration storage targets: mixed, high. Short-duration storage provides less than 10 hours of generation. Each Phase I utility must seek approval for 780 megawatts by December 31, 2040. Each Phase II utility must seek approval for 4,000 megawatts by December 31, 2030, within a 16,000-megawatt total by December 31, 2045. At least 10% of r… - Storage projects face new safety standards: mixed, medium. Covered utility storage projects must meet the latest published National Fire Protection Association 855 standard and use competitive buying. Utilities must compare buying storage capacity with buying facilities, including costs, risks, ownership, and customer effects. By December 1, 2026, Virginia… - Long-duration storage targets need viability approval: mixed, medium. Long-duration storage provides at least 10 hours of generation at full rated power. Its targets take effect only after the State Corporation Commission finds the technology viable and the targets reasonably achievable. After receiving the required utility report, the Commission must begin its revie… - Phase I utilities seek renewable capacity: mixed, medium. Each Phase I utility must seek approval for 600 megawatts of Virginia solar or onshore wind. The schedule requires at least 200 megawatts by December 31, 2023, another 200 by December 31, 2027, and another 200 by December 31, 2030. At least 35% of each group must come from facilities owned by someo… - Utilities face renewable source eligibility rules: mixed, medium. Beginning with 2025 compliance, Phase I and Phase II utilities can use only certificates from listed eligible renewable sources. Sources generally must be in Virginia, the PJM grid region, or qualifying directly connected Atlantic offshore projects. At least 75% of a Phase II utility's certificates… - Utilities get storage rules and limits: mixed, medium. The State Corporation Commission must adopt storage deployment rules by January 1, 2027, and update them at least every five years. The rules must cover interim targets for 2031–2045, competitive buying, customer-side storage incentives, alternatives to new wires, and peak-demand reduction. Individ… - Utility buying gets competition and oversight: mixed, medium. Phase I and Phase II utilities must seek solar, wind, and storage bids at least annually. Requests must be public and posted online at least 45 days before closing, with resource needs and required bid information. Bid reviews must consider listed project, developer, grid, Virginia-benefit, and env… - Utility projects receive yearly public review: mixed, medium. From 2020 through 2045, Phase I and Phase II utilities must file yearly solar, onshore wind, and storage plans. Plans must reflect ownership shares and a goal that at least 10% of covered storage projects sit on customers' side of the meter. The State Corporation Commission reviews costs, renewable… ## Sponsors and cosponsors - Sponsor: Richard C. "Rip" Sullivan, Jr. (Democratic), House ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-03-11 | House | Senate substitute agreed to by House | pass | 68 | 30 | | | 2026-03-10 | Senate | Commerce and Labor Substitute agreed to | pass | 0 | 0 | | | 2026-03-10 | Senate | Passed Senate with substitute | pass | 21 | 19 | | | 2026-03-09 | Senate | Passed by for the day Block Vote (Voice Vote) | pass | 0 | 0 | | | 2026-03-09 | Senate | Constitutional reading dispensed Block Vote (on 2nd reading) | pass | 40 | 0 | | | 2026-03-06 | Senate | Reported from Finance and Appropriations | pass | 10 | 4 | | | 2026-03-02 | Senate | Reported from Commerce and Labor with substitute and rereferred to Finance and Appropriations | pass | 8 | 5 | | | 2026-02-17 | House | Read third time and passed House | pass | 65 | 32 | | | 2026-02-11 | House | Reported from Appropriations | pass | 17 | 5 | | | 2026-02-11 | House | Subcommittee recommends reporting | pass | 6 | 1 | | | 2026-02-10 | House | Reported from Labor and Commerce with substitute and referred to Appropriations | pass | 17 | 5 | | | 2026-02-05 | House | Subcommittee recommends reporting with substitute and referring to Appropriations | pass | 6 | 2 | | ## Actions (41) - 2026-04-13: Acts of Assembly Chapter text (CHAP0694) (Governor) - 2026-04-13: Approved by Governor - Chapter 694 (effective - see bill) (Governor) - 2026-04-02: Fiscal Impact Statement from Department of Planning and Budget (HB895) (House) - 2026-03-31: Governor's Action Deadline 11:59 p.m., April 13, 2026 (Governor) - 2026-03-31: Enrolled Bill communicated to Governor on March 31, 2026 (House) - 2026-03-31: Signed by Speaker (House) - 2026-03-30: Bill text as passed House and Senate (HB895ER) (House) - 2026-03-30: Enrolled (House) - 2026-03-30: Signed by President (Senate) - 2026-03-11: Fiscal Impact Statement from Department of Planning and Budget (HB895) (House) - 2026-03-11: Senate substitute agreed to by House (68-Y 30-N 0-A) (House) - 2026-03-10: Passed Senate with substitute (21-Y 19-N 0-A) (Senate) - 2026-03-10: Commerce and Labor Substitute agreed to (Senate) - 2026-03-10: Engrossed by Senate - committee substitute (Senate) - 2026-03-10: Read third time (Senate) - 2026-03-09: Passed by for the day Block Vote (Voice Vote) (Senate) - 2026-03-09: Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A) (Senate) - 2026-03-09: Rules suspended (Senate) - 2026-03-06: Reported from Finance and Appropriations (10-Y 4-N) (Senate) - 2026-03-03: Committee substitute printed 26108942D-S1 (Senate) - 2026-03-02: Senate committee offered (Senate) - 2026-03-02: Reported from Commerce and Labor with substitute and rereferred to Finance and Appropriations (8-Y 5-N) (Senate) - 2026-02-18: Referred to Committee on Commerce and Labor (Senate) - 2026-02-18: Constitutional reading dispensed (on 1st reading) (Senate) - 2026-02-17: Read third time and passed House (65-Y 32-N 0-A) (House) - 2026-02-16: Engrossed by House - committee substitute (House) - 2026-02-16: committee substitute agreed to (House) - 2026-02-16: Read second time (House) - 2026-02-13: Read first time (House) - 2026-02-13: Fiscal Impact Statement from Department of Planning and Budget (HB895) (House) - 2026-02-11: Subcommittee recommends reporting (6-Y 1-N) (House) - 2026-02-11: Reported from Appropriations (17-Y 5-N) (House) - 2026-02-11: Assigned HAPP sub: Commerce Agriculture & Natural Resources (House) - 2026-02-10: Committee substitute printed 26107210D-H1 (House) - 2026-02-10: Reported from Labor and Commerce with substitute and referred to Appropriations (17-Y 5-N) (House) - 2026-02-09: Fiscal Impact Statement from Department of Planning and Budget (HB895) (House) - 2026-02-05: House subcommittee offered (House) - 2026-02-05: Subcommittee recommends reporting with substitute and referring to Appropriations (6-Y 2-N) (House) - 2026-01-22: Assigned HCL sub: Subcommittee #3 (House) - 2026-01-13: Referred to Committee on Labor and Commerce (House) - 2026-01-13: Prefiled and ordered printed; Offered 01-14-2026 26104780D (House) ## Bill text - Chaptered, 2026-04-13: [HTML](https://lis.blob.core.windows.net/files/1222207.HTML), [PDF](https://lis.blob.core.windows.net/files/1222206.PDF) - Enrolled, 2026-03-30: [HTML](https://lis.blob.core.windows.net/files/1212333.HTML), [PDF](https://lis.blob.core.windows.net/files/1212332.PDF) - Substitute, 2026-03-03: [HTML](https://lis.blob.core.windows.net/files/1190040.HTML), [PDF](https://lis.blob.core.windows.net/files/1190039.PDF) - Substitute, 2026-03-02: [HTML](https://lis.blob.core.windows.net/files/1189426.HTML), [PDF](https://lis.blob.core.windows.net/files/1189425.PDF) - Substitute, 2026-02-10: [HTML](https://lis.blob.core.windows.net/files/1138716.HTML), [PDF](https://lis.blob.core.windows.net/files/1138715.PDF) - Substitute, 2026-02-06: [HTML](https://lis.blob.core.windows.net/files/1132190.HTML), [PDF](https://lis.blob.core.windows.net/files/1132189.PDF) - Substitute, 2026-02-05: [HTML](https://lis.blob.core.windows.net/files/1131750.HTML), [PDF](https://lis.blob.core.windows.net/files/1131749.PDF) - Introduced, 2026-01-13: [HTML](https://lis.blob.core.windows.net/files/1086360.HTML), [PDF](https://lis.blob.core.windows.net/files/1086358.PDF) ## Related bills - HB5: Employment; paid sick leave, civil penalties. (signed) - SB199: Employment; paid sick leave, civil penalties. (signed) - HB95: Va. Residential Landlord and Tenant Act; landlord remedies, noncompliance with rental agreement. (signed) - HB1393: Electric utilities; pilot program for energy assistance and weatherization for certain individuals. (signed) - HB834: Virginia Residential Landlord and Tenant Act; fire or casualty damage, termination by landlord. (signed) - HB675: Protection of employees; coercion or threat based on immigration status, civil penalty. (signed) ## Sources - [Chaptered (HTML)](https://lis.blob.core.windows.net/files/1222207.HTML) - [Chaptered (PDF)](https://lis.blob.core.windows.net/files/1222206.PDF) - [Enrolled (HTML)](https://lis.blob.core.windows.net/files/1212333.HTML) - [Enrolled (PDF)](https://lis.blob.core.windows.net/files/1212332.PDF) - [Substitute (HTML)](https://lis.blob.core.windows.net/files/1190040.HTML) - [Substitute (PDF)](https://lis.blob.core.windows.net/files/1190039.PDF) - [Substitute (HTML)](https://lis.blob.core.windows.net/files/1189426.HTML) - [Substitute (PDF)](https://lis.blob.core.windows.net/files/1189425.PDF) - [Substitute (HTML)](https://lis.blob.core.windows.net/files/1138716.HTML) - [Substitute (PDF)](https://lis.blob.core.windows.net/files/1138715.PDF) - [Substitute (HTML)](https://lis.blob.core.windows.net/files/1132190.HTML) - [Substitute (PDF)](https://lis.blob.core.windows.net/files/1132189.PDF) - [Substitute (HTML)](https://lis.blob.core.windows.net/files/1131750.HTML) - [Substitute (PDF)](https://lis.blob.core.windows.net/files/1131749.PDF) - [Introduced (HTML)](https://lis.blob.core.windows.net/files/1086360.HTML) - [Introduced (PDF)](https://lis.blob.core.windows.net/files/1086358.PDF) ## Related - [HB5: Employment; paid sick leave, civil penalties.](https://policyrisk.com/state-bill/VA-HB5-2026) - [SB199: Employment; paid sick leave, civil penalties.](https://policyrisk.com/state-bill/VA-SB199-2026) - [HB95: Va. Residential Landlord and Tenant Act; landlord remedies, noncompliance with…](https://policyrisk.com/state-bill/VA-HB95-2026) - [HB1393: Electric utilities; pilot program for energy assistance and weatherization for…](https://policyrisk.com/state-bill/VA-HB1393-2026) - [HB834: Virginia Residential Landlord and Tenant Act; fire or casualty damage, terminat…](https://policyrisk.com/state-bill/VA-HB834-2026) - [HB675: Protection of employees; coercion or threat based on immigration status, civil…](https://policyrisk.com/state-bill/VA-HB675-2026) - [Virginia bills](https://policyrisk.com/states/virginia/bills) - [Virginia state hub](https://policyrisk.com/states/virginia) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/VA-HB895-2026 (as of 2026-10-12).