VirginiaSB8272026 Regular SessionSenateWALLET

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

Sponsored By: Kannan Srinivasan (Democratic)

Became Law

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.

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

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

New charges to fund underground lines

The law splits extra undergrounding costs. Each host locality must pay at least 50% of the unrecovered marginal cost. The state commission approves a rate clause so the utility recovers these costs from Virginia customers, with the allowed return. The commission rules within three months. A locality can fund its share by a customer levy, bonds, budget funds, or a mix. Any residential levy is capped at $0.99 per month and is set with state staff input and apportionment rules. Pilot levies are outside older local consumer‑tax limits. Utilities also get a separate bill surcharge to recover any remaining qualifying costs from Virginia customers.

Fast-track for select line projects

The law fast‑tracks certain projects. For a 5.3‑mile line (about 3.1 miles underground next to an interstate) pending on December 31, 2017, the state commission approves the underground segment within 30 days after the utility asks to join and the locality passes a support resolution. No new technical or cost studies are required to approve it. The commission must also approve one more 230 kV relocation or conversion filed from July 1, 2018 to October 1, 2020 as a qualifying underground project. In addition, an about 8.3‑mile 500/230 kV project pending on February 1, 2026 can qualify if it meets the listed criteria after commission review.

Pilot to bury some power lines

The state runs a pilot to put some high‑voltage lines underground near homes. It applies when any part is within 0.25 miles of land zoned residential and covers lines over 69 kV, up to 500 kV, plus some 230 kV lines. No more than four projects can join. To qualify, the line must be feasible, have local support by resolution, and meet cost tests. The extra underground cost must be no more than $40 million or 2.5 times the overhead cost unless the utility, localities, and the commission all agree otherwise. The main need must be reliability, resiliency, or state economic development, and the commission must still find total costs reasonable.

Zoning bypass and 10-year overhead ban

For qualifying pilot projects, meeting the pilot rules counts as the state need finding. A commission approval also counts as meeting local planning and zoning for the line and related stations. After approval, no new overhead lines of 69 kV or more can be placed in the same right‑of‑way for 10 years from July 1, 2018. Underground transmission and distribution lines are still allowed. A host locality may buy land rights next to the route to co‑locate other utilities, if it does not interfere with the project, and may use that income to help pay its share.

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

Related Bills

Back to State Legislation