SB 448 Virginia Senate · 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 HB 895.

Issues: ✓ Energy

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

Senate Passage

Mar 2026

House of Delegates Passage

Mar 2026

Signed into Law

Apr 2026

Introduced Jan 13, 2026 Signed Apr 13, 2026

Maddy AI version diff · 5 comparisons

What changed between versions

Labor and Commerce Substitute → Subcommittee #3 Subcommittee Substitute · 7 edits

MODERATE

The bill was converted from a House substitute to a Senate substitute, resulting in significant formatting cleanup and the addition of several new policy sections. The most important substantive changes include new mandates for the State Corporation Commission to evaluate long-duration energy storage technologies, establish interim targets for energy storage deployment, and hold a technical conference on safety standards by 2026. Additionally, the bill clarifies the timeline for technology viability determinations and expands the Commission's authority to adjust energy storage targets based on technological feasibility.

Scope change

The bill's scope was expanded to include specific directives for the State Corporation Commission regarding the evaluation and regulation of long-duration energy storage technologies, including a requirement to determine their technical viability and adjust procurement targets accordingly.

REQUIREMENT

Added a new technology demonstration program requiring a Phase II Utility to test at least three different long-duration energy storage technologies.

Required the Commission to update regulations to set interim energy storage deployment targets between 2031 and 2045.

Added provisions requiring the Commission to evaluate utility proposal requirements for energy storage projects in 2026 and direct utilities to modify unreasonable criteria.

TIMELINE

Set a deadline of March 1, 2031, for the Commission to determine if long-duration energy storage targets are viable and to adjust short-duration storage targets if necessary.

ENFORCEMENT

Mandated a technical conference by September 1, 2026, to evaluate nationwide safety standards for energy storage and the reasonableness of utility safety requirements.

TECHNICAL

Removed the original table containing the Renewable Portfolio Standard (RPS) percentage requirements for Phase I and Phase II Utilities, replacing it with placeholder text.

Corrected various typos, spacing errors, and formatting inconsistencies throughout the document, such as removing extraneous dates and fixing line breaks.

Finance and Appropriations Substitute → Labor and Commerce Substitute · 8 edits

MODERATE

The bill was transferred from the Senate Finance Committee to the Labor and Commerce Committee, shifting the legislative focus from general utility regulation to specific renewable energy mandates and energy storage targets. The Labor and Commerce version introduces aggressive new requirements for utilities to retire fossil fuel plants, significantly increases Renewable Portfolio Standard (RPS) percentages, and sets ambitious new goals for constructing solar, wind, and energy storage capacity. It also adds a new chapter requiring the Department of Energy to create model ordinances for localities to regulate energy storage safety.

Scope change

The bill's scope expanded from general electric utility regulation to include specific, high-volume mandates for renewable energy generation and energy storage deployment. Applicability now includes strict retirement timelines for coal and oil plants and expanded definitions for 'zero-carbon' and 'energy storage' resources.

REQUIREMENT

New mandates require Phase I and Phase II utilities to petition for and construct massive amounts of new solar, wind, and energy storage capacity by specific deadlines (e.g., 16,100 MW of solar/wind by 2035 for Phase II utilities).

Renewable Portfolio Standard (RPS) percentages were significantly increased for all years, with Phase I and Phase II utilities required to meet much higher renewable energy sales targets.

New requirements mandate that utilities procure specific amounts of 'long-duration' and 'short-duration' energy storage, with targets reaching 4,000 MW of long-duration storage by 2045 for Phase II utilities.

TIMELINE

Fossil fuel retirement deadlines were extended; coal and oil plants must be retired by December 31, 2045, rather than the earlier dates in the Finance version.

TECHNICAL

A new chapter was added requiring the Department of Energy to develop model ordinances for localities to regulate energy storage safety and establish a work group to advise on these standards.

DEFINITION

Definitions were expanded to include specific categories for 'long-duration' (10+ hours) and 'short-duration' energy storage, and clarified rules for 'falling water' and 'zero-carbon' electricity.

ENFORCEMENT

New provisions require utilities to conduct annual competitive requests for proposals for renewable and storage resources and mandate an independent auditor to review these procurement processes.

ELIGIBILITY

Exemptions for large industrial 'accelerated renewable energy buyers' were expanded to allow them to contract for capacity and energy storage directly, exempting them from certain non-bypassable utility costs.

Commerce and Labor Substitute → Finance and Appropriations Substitute · 7 edits

MODERATE

The bill was amended by the Finance and Appropriations committee to shift the legislative focus from general energy storage regulation to specific, aggressive targets for renewable energy generation and energy storage deployment. Significant changes include extending renewable energy portfolio standard (RPS) compliance deadlines, increasing required generation capacity targets for utilities, and adding detailed mandates for short- and long-duration energy storage. The amendment also introduces new work groups and reporting requirements to oversee the development of safety model ordinances and evaluate the technical viability of new storage technologies.

Scope change

The bill's scope expanded to include specific quantitative targets for renewable energy generation and energy storage capacity, while the committee removed a complex table detailing annual RPS percentage requirements and replaced it with a policy statement on furthering energy storage growth.

TIMELINE

The deadline for retiring coal-fired generating units was extended from December 31, 2024, to December 31, 2045, and the deadline for meeting 100% RPS compliance was extended from 2045 to 2050.

REQUIREMENT

New specific targets were added for energy storage capacity, requiring Phase I utilities to procure 780 megawatts of short-duration storage and Phase II utilities to procure 16,000 megawatts of short-duration and 4,000 megawatts of long-duration storage by 2045.

New requirements mandate that utilities petition the commission for approval to construct or acquire specific amounts of solar and wind generation capacity by 2024, 2027, 2030, and 2035.

New mandates require the Department of Energy to convene multiple work groups to develop financial incentives for energy storage and to review regional market conditions with PJM Interconnection.

ENFORCEMENT

New provisions establish a technology demonstration program for long-duration energy storage and require the commission to evaluate the technical viability of storage targets before they become effective.

TECHNICAL

The detailed table listing specific annual RPS percentage requirements for Phase I and Phase II utilities was removed and replaced with a general policy statement.

DEFINITION

New definitions were added for 'short-duration energy storage' (less than 10 hours) and 'long-duration energy storage' (10 hours or more) to clarify regulatory targets.

Enrolled → Commerce and Labor Substitute · 8 edits

MODERATE

This bill was converted from an 'Enrolled' version into a 'Commerce and Labor Substitute' draft, introducing significant new mandates for renewable energy and energy storage while removing the original aggressive retirement deadlines for coal and oil plants. The substitute version adds specific targets for solar, wind, and energy storage capacity, introduces a technology demonstration program for long-duration storage, and establishes new safety and procurement rules for energy storage projects.

Scope change

The bill's scope expanded to include detailed requirements for energy storage deployment, new renewable energy generation targets, and a technology demonstration program for long-duration storage, while the applicability of the original coal/oil retirement deadlines was removed.

TIMELINE

The mandatory retirement deadlines for coal-fired and oil-fired power plants were removed entirely from the bill.

REQUIREMENT

New specific targets were added for Phase I and Phase II utilities to construct or acquire solar, wind, and energy storage capacity by various dates through 2045.

A new technology demonstration program was created for Phase II utilities to test at least three different long-duration energy storage technologies.

New safety and procurement protocols were established for energy storage projects, including adherence to NFPA 855 standards and competitive bidding requirements.

The Renewable Portfolio Standard (RPS) percentage targets for 2021 through 2040 were replaced with a new table structure, though specific percentages in the new table appear incomplete or altered in this draft.

New provisions require utilities to conduct annual requests for proposals for solar, wind, and energy storage resources with specific evaluation criteria.

New rules mandate that a portion of energy storage projects be purchased from third parties rather than built directly by the utility, and that proposals must seek both capacity and facility purchases.

DEFINITION

New definitions for 'long-duration energy storage' (10+ hours) and 'short-duration energy storage' (less than 10 hours) were added to clarify regulatory requirements.

Introduced → Enrolled · 6 edits · Mar 31, 2026

MODERATE

The bill was amended and reenacted to transition from an 'Introduced' draft to an 'Enrolled' final version, incorporating significant policy updates regarding renewable energy targets, energy storage requirements, and procedural details. Key changes include the addition of new sections for transmission regulation, specific mandates for solar and wind capacity procurement, revised energy storage targets with adjusted megawatt figures, and the establishment of new work groups and reporting requirements to support these initiatives.

Scope change

The bill's scope expanded to include explicit regulations on transmission and distribution (new § 56-580) and added detailed provisions for competitive procurement of energy storage and renewable resources. Applicability thresholds for renewable energy percentages and energy storage capacity targets were modified with specific numerical adjustments.

REQUIREMENT

Added new Section 56-580 to regulate transmission and distribution, including codes of conduct for utilities and permitting for new generating and energy storage facilities.

Adjusted specific energy storage capacity targets, changing Phase I short-duration storage from 400 to 780 megawatts and Phase II short-duration storage from 2,700 to 16,000 megawatts.

Introduced new mandates for utilities to procure specific amounts of solar and wind capacity by set dates (e.g., 600 MW for Phase I by 2035) and require competitive procurement processes.

TIMELINE

Revised compliance deadlines for energy storage targets, shifting Phase I and Phase II Utility goals for short-duration storage to 2040 and 2045 respectively, and adjusting long-duration storage targets.

ENFORCEMENT

Established new work groups and reporting deadlines (e.g., December 1, 2026) for the Department of Energy to develop model ordinances and financial incentives for energy storage.

DEFINITION

Refined definitions and eligibility criteria, including updates to the Renewable Energy Portfolio Standard (RPS) requirements and exemptions for accelerated renewable energy buyers.

Floor votes · Senate Feb 12, 2026 · House of Delegates Mar 11, 2026

How they voted

39–0

Passed

Total votes 39

Feb 12, 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

Amendments

Apr 13, 2026

Signed into law

Approved by Governor-Chapter 695 (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

Upper · Passed

Bill text as passed Senate and House (SB448ER)

upper

Mar 11, 2026

Lower · Passed

Passed House with substitute (66-Y 33-N 0-A)

lower

Mar 11, 2026

Lower · Passed

Delegate Wilt Floor amendment passed by (64-Y 35-N 0-A)

lower

Mar 10, 2026

Introduced

Floor offered Delegate Wilt Amendment

lower

Mar 10, 2026

Lower · Passed

Passed by for the day

lower

Mar 5, 2026

Lower · Passed

Reported from Labor and Commerce with substitute (15-Y 6-N)

lower

Mar 3, 2026

Lower · Passed

House subcommittee offered

lower

Feb 27, 2026

Committee

Assigned HCL sub: Subcommittee #3

lower

Feb 19, 2026

Committee

Referred to Committee on Labor and Commerce

lower

Feb 16, 2026

Upper · Passed

Read third time and passed Senate (22-Y 17-N 0-A)

upper

Feb 12, 2026

Upper · Passed

Passed by for the day Block Vote (Voice Vote)

upper

Feb 11, 2026

Upper · Passed

Reported from Finance and Appropriations with substitute (12-Y 3-N)

upper

Feb 9, 2026

Upper · Passed

Reported from Commerce and Labor with substitute and rereferred to Finance and Appropriations (9-Y 6-N)

upper

Feb 9, 2026

Upper · Passed

Senate committee offered

upper

Jan 13, 2026

Committee

Referred to Committee on Commerce and Labor

upper

1 primary · 0 co-sponsors