VirginiaSB8272026 Regular SessionSenateWALLET

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

Sponsored By: Kannan Srinivasan (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 HB 1487.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Stronger protections when utility taxes change

Localities converting qualifying electricity or gas taxes must avoid shifting the tax burden among customer groups. They must also keep annual tax revenue at its level when the conversion occurs. Electricity taxes change from a bill-dollar basis to kilowatt-hours used; gas taxes change to CCF, or hundreds of cubic feet delivered. These requirements apply to qualifying taxes imposed before January 1, 2001, and no longer depend on whether compliance is practical. The law strengthens protection against tax shifts but does not promise a lower household bill.

Virginia expands underground power line testing

Virginia expands its underground transmission pilot from two projects to four and requires faster state review. General eligibility covers new lines of at least 500 kilovolts, partly underground and within one-quarter mile of residential zoning. Applications can be filed from January 1, 2025, through July 1, 2033. The law also covers an approximately 8.3-mile, 500- and 230-kilovolt project pending final approval on February 1, 2026. That project includes an approximately 3.1-mile underground section supported by the local government; the rest may remain overhead. State regulators must find underground construction feasible, costs reasonable, and local support and funding commitments in place. Regulators can deny a qualifying application but must explain why. After approval, utilities can acquire land rights and cables; approval does not block separate overhead projects in the same corridor. Progress reports are due each December 1, with a final report on costs, customer bills, reliability, construction, and economic effects due December 1, 2034.

Customers can pay underground line charges

A participating locality can adopt an extra electric bill levy to pay its underground project share. The residential levy is capped at $0.99 monthly per project, or $11.88 over a full year at the maximum. It is separate from the usual utility tax limit, and proceeds must go toward the locality’s project costs. The locality must consult state regulators and divide charges fairly among customer groups using utility cost-allocation rules. Regulators must also allow a separate utility rate adjustment for approved project costs not fully recovered through transmission charges; no individual customer amount is set.

Localities share underground power line costs

Participating localities must pay at least 50% of the added underground construction cost within their borders. State regulators can assign them more when charging outside retail customers would harm the public interest. Localities sharing a project must coordinate how they divide costs. They can use a levy and bonds, voter-approved general obligation bonds, local funds over multiple years, or a combination. A locality can withdraw its support and funding agreement within 30 days after the final approval order. Localities can also acquire adjacent land rights solely for other public utilities and use related proceeds toward project costs. These land rights cannot lie inside the approved route, and the other utilities cannot interfere with the power line.

Sponsors & Cosponsors

Sponsor

  • Kannan Srinivasan

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 284 • No: 144

House vote • 3/14/2026

Conference report agreed to by House

Yes: 62 • No: 34

Senate vote • 3/14/2026

Conference report agreed to by Senate

Yes: 28 • No: 11

Senate vote • 3/12/2026

Senate acceded to request Block Vote

Yes: 40 • No: 0

Senate vote • 3/10/2026

House substitute rejected by Senate

Yes: 0 • No: 40

House vote • 3/6/2026

Passed House with substitute

Yes: 62 • No: 36

House vote • 3/3/2026

Reported from Labor and Commerce with substitute

Yes: 15 • No: 7

Senate vote • 2/13/2026

Read third time and passed Senate

Yes: 26 • No: 12

Senate vote • 2/12/2026

Committee substitute agreed to (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/11/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/11/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote • 2/9/2026

Reported from Commerce and Labor with substitute

Yes: 11 • No: 4

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0864)

    4/13/2026Governor
  2. Approved by Governor-Chapter 864 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (SB827)

    4/6/2026Senate
  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 (SB827ER)

    3/30/2026Senate
  8. Enrolled

    3/30/2026Senate
  9. Signed by President

    3/30/2026Senate
  10. Fiscal Impact Statement from State Corporation Commission (SB827)

    3/24/2026Senate
  11. Conference report agreed to by Senate (28-Y 11-N 0-A)

    3/14/2026Senate
  12. Conference report agreed to by House (62-Y 34-N 0-A)

    3/14/2026House
  13. Conference Report released

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

    3/12/2026House
  15. Conferees appointed by House

    3/12/2026House
  16. Senate acceded to request Block Vote (40-Y 0-N 0-A)

    3/12/2026Senate
  17. Conferees appointed by Senate

    3/12/2026Senate
  18. Senate Conferees: Srinivasan, Surovell, Stanley

    3/12/2026Senate
  19. House requested conference committee

    3/11/2026House
  20. House insisted on substitute

    3/11/2026House
  21. House substitute rejected by Senate (0-Y 40-N 0-A)

    3/10/2026Senate
  22. Passed House with substitute (62-Y 36-N 0-A)

    3/6/2026House
  23. Engrossed by House - committee substitute

    3/6/2026House
  24. committee substitute agreed to

    3/6/2026House
  25. Read third time

    3/6/2026House

Bill Text

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