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VA HB895

VA HB895
Electric utilities; energy storage requirements, Department of Energy to develop model ordinance.


summary

Introduced
01/13/2026
In Committee
03/06/2026
Crossed Over
03/11/2026
Passed
04/13/2026
Dead
Signed/Enacted/Adopted
04/13/2026

Introduced Session

2026 Regular Regular Session

Bill 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.

AI Summary

This bill significantly expands energy storage requirements for electric utilities in Virginia, aiming to bolster grid reliability and integrate renewable energy sources. It mandates that Appalachian Power and Dominion Energy Virginia petition the State Corporation Commission (SCC) for approval to construct, acquire, or procure specific amounts of both short-duration energy storage (capacity that can discharge for less than 10 hours) and long-duration energy storage (capacity that can discharge for 10 hours or more) by set deadlines, with increased capacity targets compared to previous law. The bill also directs the Department of Energy, in consultation with other agencies, to develop model ordinances for local governments to regulate energy storage projects, focusing on safety standards and best practices. Furthermore, the SCC is tasked with overseeing a technology demonstration program for long-duration energy storage to assess its viability and achievability, and will also initiate a technical conference to evaluate safety standards for energy storage development. Importantly, the SCC must determine the technical viability and achievability of long-duration energy storage targets before certain provisions of the bill become effective, and will review and potentially adjust both short- and long-duration energy storage targets based on this assessment, with a final order due by March 1, 2031. The bill also allows the SCC to consider energy storage project proposals during annual petitions for new renewable generation capacity.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (5)

Last Action

Acts of Assembly Chapter text (CHAP0694) (on 04/13/2026)

bill text


bill summary

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bill summary

Document Type Source Location
State Bill Page https://lis.virginia.gov/bill-details/20261/HB895
BillText https://lis.virginia.gov/bill-details/20261/HB895/text/CHAP0694
Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (HB895) https://lis.blob.core.windows.net/files/1215546.PDF
BillText https://lis.virginia.gov/bill-details/20261/HB895/text/HB895ER
Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (HB895) https://lis.blob.core.windows.net/files/1206460.PDF
BillText https://lis.virginia.gov/bill-details/20261/HB895/text/HB895S1
BillText https://lis.virginia.gov/bill-details/20261/HB895/text/HB895SC1
Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (HB895) https://lis.blob.core.windows.net/files/1145821.PDF
BillText https://lis.virginia.gov/bill-details/20261/HB895/text/HB895H1
Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (HB895) https://lis.blob.core.windows.net/files/1134395.PDF
BillText https://lis.virginia.gov/bill-details/20261/HB895/text/HB895HC2
BillText https://lis.virginia.gov/bill-details/20261/HB895/text/HB895HC1
BillText https://lis.virginia.gov/bill-details/20261/HB895/text/HB895
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