VirginiaSB4482026 Regular SessionSenateWALLET

Electric utilities; energy storage requirements, Department of Energy to develop model ordinance.

Sponsored By: Lamont Bagby (Democratic)

Became Law

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 HB 895.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 1 benefits, 1 costs, 4 mixed.

New non-bypassable charge on power bills

All Virginia retail electric customers pay a non-bypassable charge for this law’s compliance costs. It applies even if you buy your power from a competitive supplier. Certified accelerated renewable buyers and certain pre‑2019 competitive supply customers are exempt from parts of these costs. The Commission sets how the costs are split and trues up the tariffs each year.

Large build-out of solar and wind

Phase I utilities must seek approvals for 600 MW of solar or onshore wind in three 200 MW steps by 2023, 2027, and 2030. Phase II must seek approvals for 16,100 MW by December 31, 2035, including at least 1,100 MW of small projects (3 MW or less) and at least 200 MW on previously developed sites. At least 35% of these amounts must come from non‑utility owners. Phase II may also add up to 5,200 MW of offshore wind that connects to Virginia. When a utility asks to build a solar plant, it must show the project went through a competitive procurement.

Major push for safe energy storage

All storage projects must meet the latest NFPA 855 safety standard. By January 1, 2027, the Commission sets state rules and interim targets through 2045 and updates them at least every five years. Phase I must seek 400 MW of short‑duration storage (or 780 MW by procurement) by 2040 and 520 MW of long‑duration storage by 2045, with half petitioned by 2035 and split between 10–24 hours and over 24 hours. Phase II must seek 16,000 MW of short‑duration by 2045 (4,000 MW by 2030) and 4,000 MW of long‑duration by 2045 (half by 2035), with the same duration split and at least 20% in the coalfield region. At least 10% of short‑duration storage must support distribution grid transformation; pumped‑storage expansions count toward targets. The Department of Energy must publish model local ordinances and guidance by December 1, 2026 and keep them updated and online with a stakeholder work group. No single project can exceed 500 MW (Phase II may procure one at up to 800 MW), and at least 35% of storage placed in service after July 1, 2020 must be bought from or owned by non‑utility parties. In 2026, the Commission reviews storage solicitations and can require changes; utilities cannot block proposals that meet the latest NFPA 855.

Renewable standard to 100% with limits

Utilities must meet a renewable portfolio standard using Renewable Energy Certificates from eligible sources. Phase I utilities reach 100% renewable in 2045; Phase II reaches 100% in 2050. Starting in 2025, only RECs from RPS‑eligible sources count. Biomass is limited to in‑state units operating by January 1, 2023, and a plant’s annual REC sales cannot exceed what it generated in 2022 or in that year. Small in‑state hydro that starts before July 1, 2024 also qualifies. Phase II must get 1% of its RPS from projects 1 MW or less, with at least 25% of that from low‑income projects when available, or public‑school projects if not. Utilities can bank extra RECs for up to five years, and the Commission sets rules to verify compliance.

Coal and big oil units retired 2024

Utilities must retire all coal‑fired units and any oil‑fired unit over 500 MW in Virginia by December 31, 2024. Some units are excluded by law. A utility can ask the Commission for relief if a retirement would threaten reliability or security. The Commission reviews each case and considers in‑state and regional transmission resources.

Breaks for large renewable power buyers

Big power users can cut their share of RPS costs. Commercial or industrial customers with more than 25 MW of load can be certified, buy RECs or bundled energy, and offset non‑bypassable RPS charges in proportion to what they buy. Their covered load is excluded from utility RPS calculations. Customers that chose competitive supply before early 2019 (with Phase II over 100 MW peak in 2019) do not pay these non‑bypassable fees while they buy from a competitive supplier.

Sponsors & Cosponsors

Sponsor

  • Lamont Bagby

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 257 • No: 120

Senate vote 3/12/2026

House substitute agreed to by Senate

Yes: 21 • No: 19

House vote 3/11/2026

Passed House with substitute

Yes: 66 • No: 33

House vote 3/11/2026

Delegate Wilt Floor amendment passed by

Yes: 64 • No: 35

House vote 3/5/2026

Reported from Labor and Commerce with substitute

Yes: 15 • No: 6

House vote 3/3/2026

Subcommittee recommends reporting with substitute

Yes: 8 • No: 1

Senate vote 2/16/2026

Read third time and passed Senate

Yes: 22 • No: 17

Senate vote 2/13/2026

Committee substitute rejected (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/13/2026

Committee substitute agreed to (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/12/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/12/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/11/2026

Reported from Finance and Appropriations with substitute

Yes: 12 • No: 3

Senate vote 2/9/2026

Reported from Commerce and Labor with substitute and rereferred to Finance and Appropriations

Yes: 9 • No: 6

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0695)

    4/13/2026Governor
  2. Approved by Governor-Chapter 695 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from Department of Planning and Budget (SB448)

    4/2/2026Senate
  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

    3/31/2026Senate
  6. Signed by Speaker

    3/31/2026House
  7. Bill text as passed Senate and House (SB448ER)

    3/30/2026Senate
  8. Enrolled

    3/30/2026Senate
  9. Signed by President

    3/30/2026Senate
  10. House substitute agreed to by Senate (21-Y 19-N 0-A)

    3/12/2026Senate
  11. Fiscal Impact Statement from Department of Planning and Budget (SB448)

    3/11/2026Senate
  12. Passed House with substitute (66-Y 33-N 0-A)

    3/11/2026House
  13. Engrossed by House - committee substitute

    3/11/2026House
  14. Delegate Wilt Floor amendment passed by (64-Y 35-N 0-A)

    3/11/2026House
  15. committee substitute agreed to

    3/11/2026House
  16. Read third time

    3/11/2026House
  17. Passed by for the day

    3/10/2026House
  18. Floor

    3/10/2026House
  19. Read second time

    3/9/2026House
  20. Committee substitute printed 26109068D-H1

    3/5/2026House
  21. Reported from Labor and Commerce with substitute (15-Y 6-N)

    3/5/2026House
  22. House subcommittee offered

    3/3/2026House
  23. Subcommittee recommends reporting with substitute (8-Y 1-N)

    3/3/2026House
  24. Assigned HCL sub: Subcommittee #3

    2/27/2026House
  25. Referred to Committee on Labor and Commerce

    2/19/2026House

Bill Text

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