SB 1394 Virginia Senate · 2025 Regular Session

Energy storage requirements; Department of Energy, et al., to develop model ordinances, reports.

Summary

Electric utilities; energy storage requirements; Department of Energy and Department of Environmental Quality to develop model ordinances; work groups; reports. Increases the targets for energy storage capacity that Appalachian Power and Dominion Energy Virginia are required to petition the State Corporation 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 5,220 megawatts of short-duration energy storage capacity by 2045 and 3,480 megawatts of long-duration energy storage capacity by 2045. "Long-duration energy storage" and "short-duration energy storage" are defined in the bill. 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, 2030. 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 create model ordinances for use by localities in their regulation of energy storage projects and to convene a work group to develop such model ordinances and submit a report by December 1, 2025. The bill directs the Department of Energy and the Department of Environmental Quality to convene a work group to develop recommendations and financial incentives related to the development of long-duration energy storage projects and submit a report by December 1, 2025. The bill also directs the Department of Energy to engage with PJM Interconnection, LLC, in reviewing regional market conditions related to energy storage resources and permits Dominion Energy Virginia to propose a partnership with institutions of higher education to deploy energy storage resources. This bill is identical to HB 2537.

Issues: ✓ Energy

Bill status vetoed 4 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

Senate Passage

Apr 2025

House of Delegates Passage

Mar 2025

Vetoed

May 2025

Introduced Jan 14, 2025 Vetoed May 2, 2025

Maddy AI version diff · 4 comparisons

What changed between versions

Labor and Commerce Substitute → Governor Substitute Not Adopted · 7 edits

MODERATE

The bill was changed from a House substitute version to a Senate substitute version. The Senate version repeals the House version entirely and replaces it with a new version that significantly expands renewable energy requirements, adds detailed energy storage mandates, and creates new work groups to develop model ordinances and financial incentives.

Scope change

The bill's scope changed from amending and reenacting a single section (§ 56-585.5) to repealing that section and amending multiple sections (§§ 56-585.1, 56-585.8, 56-594.3, and 56-594.4) while adding entirely new provisions for energy storage technology demonstration and workforce development.

REQUIREMENT

The House version's detailed RPS compliance percentage schedule table (2021-2045) was removed and replaced with different requirements in the Senate version.

New energy storage requirements were added, including specific megawatt targets for short-duration and long-duration storage by Phase I and Phase II utilities with deadlines through 2040 and 2045.

New provisions require utilities to petition for approval to construct or acquire specific amounts of solar and wind generating capacity by various deadlines, with Phase II utilities having significantly higher targets than Phase I utilities.

A new technology demonstration program was added for Phase II utilities to evaluate long-duration energy storage resources with a minimum discharge capacity of 3,000 megawatt-hours.

ENFORCEMENT

New work groups were established to develop model ordinances for localities regulating energy storage projects and to create financial incentives for long-duration energy storage development.

TIMELINE

Several deadlines were modified, including the repeal date for the original section and new effective dates for energy storage technology provisions contingent on State Corporation Commission determinations.

ELIGIBILITY

New provisions address partnerships between Phase II utilities and institutions of higher education for energy storage research and workforce development, requiring inclusion of historically black colleges and community colleges.

Enrolled → Commerce and Labor Substitute · 8 edits

MODERATE

This bill amends Virginia's renewable energy law to set stricter renewable portfolio standards, establish specific clean energy generation targets, and create detailed energy storage requirements. The changes include higher renewable energy percentages for utilities, expanded solar and wind capacity goals, new energy storage targets, and provisions for long-duration energy storage technology demonstration.

Scope change

The bill expands requirements for both Phase I and Phase II utilities, adds specific targets for offshore wind generation, and creates new work groups and technology demonstration programs for energy storage.

REQUIREMENT

Renewable portfolio standard percentages for Phase I and Phase II utilities were increased across all years from 2021 through 2045, with Phase II utilities facing steeper requirements.

New specific targets for solar and wind generation capacity were established, including 16,100 megawatts for Phase II utilities by 2035 with offshore wind up to 5,200 megawatts.

Energy storage requirements were added with Phase I utilities targeting 400-780 megawatts of short-duration storage and 520 megawatts of long-duration storage by 2040-2045.

New technology demonstration program for long-duration energy storage was created, requiring Phase II utilities to pursue projects with at least 3,000 megawatt-hours of discharge capacity.

Two new work groups were established to develop model ordinances for local energy storage regulation and to recommend financial incentives for long-duration energy storage projects.

New requirement that utilities procure equipment from Virginia or US-based manufacturers for projects constructed under the bill, if reasonably available and competitively priced.

TIMELINE

Several deadlines were adjusted, including coal retirement by December 31, 2024, and various renewable energy procurement milestones spread through 2035 and 2045.

ELIGIBILITY

Expanded definition of RPS eligible sources to include more falling water resources and clarified biomass facility eligibility with specific capacity and fuel source restrictions.

Floor votes · Senate Jan 29, 2025 · House of Delegates Feb 18, 2025

How they voted

38–0

Passed · 2 other

Total votes 40

Jan 29, 2025

D Democratic21

21 Yea

100% Yea

R Republican19

17 Yea 2

89% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 2, 2025

Vetoed

Vetoed by Governor

executive

Apr 2, 2025

Upper · Passed

Passed by for the day

upper

Mar 24, 2025

Vetoed

Governor's recommendation received by Senate

executive

Mar 10, 2025

Upper · Passed

Signed by President

upper

Mar 7, 2025

Lower · Passed

Signed by Speaker

lower

Mar 7, 2025

Upper · Passed

Bill text as passed Senate and House (SB1394ER)

upper

Feb 18, 2025

Lower · Passed

Passed House with substitute (55-Y 42-N)

lower

Feb 13, 2025

Lower · Passed

Reported from Labor and Commerce with substitute (15-Y 7-N)

lower

Feb 6, 2025

Committee

Referred to Committee on Labor and Commerce

lower

Jan 31, 2025

Upper · Passed

Read third time and passed Senate (40-Y 0-N)

upper

Jan 29, 2025

Upper · Passed

Passed by for the day

upper

Jan 27, 2025

Upper · Passed

Reported from Commerce and Labor with substitute (13-Y 1-N 1-A)

upper

Jan 14, 2025

Committee

Referred to Committee on Commerce and Labor

upper

Jan 14, 2025

Introduced

Presented and ordered printed 25104704D

upper

1 primary · 1 co-sponsor