HB 895 Virginia House of Delegates · 2026 Regular Session

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

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.

Issues: ✓ Energy

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

House of Delegates Passage

Mar 2026

Senate Passage

Mar 2026

Signed into Law

Apr 2026

Introduced Jan 13, 2026 Signed Apr 13, 2026

Maddy AI version diff · 4 comparisons

What changed between versions

Subcommittee #3 Subcommittee Substitute → Commerce and Labor Substitute · 5 edits

MODERATE

This bill was revised to shift legislative oversight from the House to the Senate and updated the new section number to align with the correct Title structure. The most significant change is the extension of the renewable energy portfolio standard (RPS) compliance deadline for Phase II utilities from 2035 to 2045, allowing more time to meet renewable energy goals. Additionally, the bill now requires the State Corporation Commission to approve an independent auditor chosen by the utility rather than appointing one directly, and it mandates a new safety conference to review national fire standards for energy storage.

Scope change

The bill's scope was adjusted to correct the statutory citation from Subtitle V to Title 45.2 and to extend the timeline for renewable energy compliance targets for Phase II utilities by ten years.

TIMELINE

Extended the deadline for Phase II utilities to meet renewable energy portfolio standard requirements from 2035 to 2045, delaying the final 100% compliance target by a decade.

REQUIREMENT

Changed the process for selecting independent auditors for energy storage requests from proposals; the utility now proposes a list of three auditors for the Commission to approve, rather than the Commission appointing the auditor directly.

Updated the bill's section numbering and title references to correct the statutory location from Subtitle V to Title 45.2 and changed the new section number from 45.2-2120 to 45.2-2200.

ENFORCEMENT

Added a requirement for the State Corporation Commission to hold a technical conference by September 2026 to evaluate nationwide safety standards for energy storage and review utility safety requirements.

ELIGIBILITY

Expanded the definition of eligible utilities for certain energy storage capacity provisions to include both Phase I and Phase II utilities, whereas previously only Phase II utilities were explicitly mentioned in some contexts.

Enrolled → Labor and Commerce Substitute · 6 edits

MODERATE

The bill was converted from an 'Enrolled' version into a 'Labor and Commerce Substitute,' which significantly altered the renewable energy and energy storage mandates. The most critical changes involve the timeline for retiring coal and oil plants, the targets for new solar and wind capacity, and the specific amounts of energy storage required. Additionally, the bill introduces new policy sections to evaluate long-duration energy storage technology and adjust targets if they are deemed technically unfeasible.

Scope change

The bill's scope expanded to include a new technology demonstration program for long-duration energy storage and provisions for the State Corporation Commission to adjust targets if they are not technically viable. It also added specific requirements for competitive procurement of energy storage.

TIMELINE

Retirement deadlines for coal and oil-fired power plants were extended by several years, moving the coal retirement date from 2024 to 2045 and the oil retirement date from 2024 to 2045.

The deadline for the Department of Energy to develop model ordinances for energy storage safety was moved from December 1, 2026, to December 1, 2027.

REQUIREMENT

The required capacity for new solar and wind generation was significantly reduced for Phase I utilities (from 600 MW to 400 MW short-duration storage and no specific new solar target in the substitute) and Phase II utilities (from 16,100 MW to 2,700 MW short-duration storage).

Energy storage targets were lowered, with Phase I short-duration storage targets dropping from 780 MW to 400 MW and Phase II targets dropping from 16,000 MW to 2,700 MW.

New requirements mandate that utilities use competitive procurement processes for energy storage and demonstrate that proposals were evaluated based on cost, risk, and grid impact.

TECHNICAL

New provisions were added to create a technology demonstration program for long-duration energy storage and to allow the Commission to delay or modify targets if the technology is not yet viable.

Introduced → Enrolled · 8 edits · Apr 13, 2026

MODERATE

This bill evolved from a proposal to amend renewable energy and energy storage laws into a comprehensive enacted act that significantly expands Virginia's clean energy goals. The final version adds strict mandates for retiring fossil fuel plants, sets aggressive renewable energy portfolio standards, and establishes specific targets for short- and long-duration energy storage. It also creates new work groups to develop safety model ordinances and financial incentives for long-duration storage technologies.

Scope change

The bill's scope expanded from primarily focusing on energy storage regulations to a full-scale renewable energy transition plan. It now includes mandatory retirement dates for coal and oil plants, detailed procurement requirements for solar and wind capacity, and new exemptions for large industrial customers.

TIMELINE

The retirement deadline for coal-fired power plants was extended from 2024 to 2045, and the deadline for retiring oil-fired plants was extended from 2024 to 2045.

REQUIREMENT

New mandatory targets require utilities to procure specific amounts of short-duration (under 10 hours) and long-duration (10+ hours) energy storage by 2035 and 2045.

Utilities must now petition the commission to construct or acquire at least 600 megawatts of solar and wind capacity by 2035, with specific interim milestones.

New safety and procurement rules require utilities to use independent auditors for energy storage projects and adhere to specific NFPA 855 fire safety standards.

ELIGIBILITY

The Renewable Energy Portfolio Standard (RPS) requirements were updated to increase the percentage of renewable energy utilities must purchase annually, reaching 100% by 2045.

DEFINITION

New definitions were added for 'long-duration energy storage' (10+ hours) and 'short-duration energy storage' (less than 10 hours) to guide utility planning.

FISCAL

A new technology demonstration program was created to evaluate long-duration storage, with provisions for utilities to seek federal funding and report outcomes.

ENFORCEMENT

Utilities facing non-compliance with renewable energy goals must make deficiency payments to a state fund, which is then allocated to job training and energy efficiency programs.

Labor and Commerce Substitute → Subcommittee #3 Subcommittee Substitute · 10 edits

MAJOR

The bill was amended to significantly accelerate renewable energy and energy storage targets, extending compliance deadlines and increasing capacity requirements for electric utilities. The changes also introduce new oversight mechanisms, including independent audits for energy storage procurement and specific provisions to support long-duration energy storage technologies and workforce development.

Scope change

The bill's scope was expanded to include more aggressive renewable energy generation targets and higher energy storage capacity requirements, with extended timelines for compliance and new mandates for independent auditing and technology demonstration programs.

TIMELINE

Compliance deadlines for renewable energy and energy storage targets were extended in several instances, such as moving the Phase I solar/wind target deadline from 2023 to 2027, and adjusting long-duration energy storage deadlines from 2035 to 2040 or 2045.

REQUIREMENT

Renewable energy portfolio standard (RPS) percentage requirements for utilities were increased across multiple years, with Phase I and Phase II utilities facing higher compliance thresholds by 2030 and beyond.

Energy storage capacity targets were substantially increased; for example, Phase I short-duration storage targets rose from 400 megawatts to 780 megawatts, and Phase II targets increased from 2,700 megawatts to 16,000 megawatts.

A new technology demonstration program was added for long-duration energy storage, requiring a Phase II utility to test at least three different technologies with a cumulative capacity of 4,000 megawatt-hours.

New mandates require the Department of Energy to convene work groups to develop financial incentives for both short- and long-duration energy storage and to establish a full-time staff position to support these projects.

Requirements for energy storage projects were updated to mandate that at least 10 percent of short-duration storage be recovered as electric distribution grid transformation projects.

New reporting requirements were added for the Weldon Cooper Center for Public Service to monitor energy storage project applications, approvals, and denials.

ENFORCEMENT

New provisions require an independent auditor to review energy storage procurement processes to ensure costs are minimized and project safety is maintained, with reports made public.

ELIGIBILITY

Specific provisions were added to ensure that at least one historically Black college or university and one comprehensive community college are included in any energy storage partnerships proposed by utilities for workforce development.

DEFINITION

The definition of 'long-duration energy storage' was clarified to include resources with 10 hours or more of generation capacity, and 'short-duration energy storage' was defined as less than 10 hours.

Floor votes · Senate Mar 9, 2026 · House of Delegates Feb 17, 2026

How they voted

39–0

Passed

Total votes 39

Mar 9, 2026

D Democratic20

20 Yea

100% Yea

R Republican19

19 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 13, 2026

Signed into law

Approved by Governor-Chapter 694 (effective 7/1/2026)

executive

Mar 31, 2026

Lower · Passed

Signed by Speaker

lower

Mar 30, 2026

Upper · Passed

Signed by President

upper

Mar 30, 2026

Lower · Passed

Bill text as passed House and Senate (HB895ER)

lower

Mar 10, 2026

Upper · Passed

Passed Senate with substitute (21-Y 19-N 0-A)

upper

Mar 9, 2026

Upper · Passed

Passed by for the day Block Vote (Voice Vote)

upper

Mar 6, 2026

Upper · Passed

Reported from Finance and Appropriations (10-Y 4-N)

upper

Mar 2, 2026

Upper · Passed

Reported from Commerce and Labor with substitute and rereferred to Finance and Appropriations (8-Y 5-N)

upper

Mar 2, 2026

Upper · Passed

Senate committee offered

upper

Feb 18, 2026

Committee

Referred to Committee on Commerce and Labor

upper

Feb 17, 2026

Lower · Passed

Read third time and passed House (65-Y 32-N 0-A)

lower

Feb 11, 2026

Lower · Passed

Reported from Appropriations (17-Y 5-N)

lower

Feb 11, 2026

Lower · Passed

Subcommittee recommends reporting (6-Y 1-N)

lower

Feb 11, 2026

Committee

Assigned HAPP sub: Commerce Agriculture & Natural Resources

lower

Feb 10, 2026

Lower · Passed

Reported from Labor and Commerce with substitute and referred to Appropriations (17-Y 5-N)

lower

Feb 5, 2026

Lower · Passed

House subcommittee offered

lower

Jan 22, 2026

Committee

Assigned HCL sub: Subcommittee #3

lower

Jan 13, 2026

Committee

Referred to Committee on Labor and Commerce

lower

1 primary · 4 co-sponsors