SB 651 Virginia Senate · 2026 Regular Session

Underground electric distribution & transmission improvement; levy on utility customers by ordinance.

Summary

Qualifying localities; underground electric distribution and transmission improvements; levy on utility customers by ordinance. Authorizes a qualifying locality, defined in the bill, to enter into an agreement with an electric utility to place new or proposed underground electric distribution or transmission lines and facilities or to relocate or convert existing overhead electric distribution or transmission lines and facilities underground. The bill requires any such agreement to provide that the locality pay to the utility its full additional costs of placing new or proposed electric distribution or transmission lines in the qualifying locality or relocating and converting that portion of a line located in the county underground rather than overhead, minus the net of relocation credits.The bill also provides that the qualifying locality may impose an additional levy on electric utility customers, which (i) shall not exceed $1 per month on residential customers; (ii) shall not exceed $10 per month on nonresidential customers; (iii) may be fixed at any amount on nonresidential customers that are major commercial energy consumers, defined in the bill; and (iv) shall be collected by the utility on behalf of the locality.

Issues: ✓ Energy

Bill status failed 4 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

Senate Passage

Feb 2026

House of Delegates Passage

Mar 2026

Governor

Introduced Jan 14, 2026 Last action Mar 14, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

Subcommittee #3 Subcommittee Substitute → Engrossed · 7 edits · Feb 13, 2026

MODERATE

The bill was converted from a House Substitute to an Engrossed version, incorporating Senate amendments that significantly shift the policy from a state-run pilot program to a locality-driven initiative. The new version removes specific state-mandated transmission projects and replaces them with a new section allowing qualifying localities to voluntarily enter agreements with utilities to fund undergrounding projects through a new levy on utility customers. This change transfers the decision-making power and financial responsibility from the State Corporation Commission to local governments.

Scope change

The bill's scope shifted from a mandatory state pilot program for specific high-voltage transmission lines to a voluntary program where specific counties (primarily in the Hampton Roads area) can opt-in to fund underground utility improvements. The applicability now depends on a locality entering an agreement with a utility rather than automatic state approval.

SCOPE

Removed the creation of a state-run pilot program for specific 500-kilovolt and 230-kilovolt transmission lines, eliminating state-mandated approval for those specific projects.

Expanded the definition of eligible projects to include relocating or converting existing overhead lines underground, not just new construction, though it excludes lines with attached broadband cables.

ELIGIBILITY

Added a new section (15.2-2109.4) defining 'qualifying localities' as specific counties in Planning Districts 8 and 9 with populations above certain thresholds, limiting the program to these areas.

FISCAL

Established a new mechanism where qualifying localities can impose a levy on utility customers (capped at $1/month for residential and $10/month for nonresidential) to pay for undergrounding projects, replacing the previous complex state cost-sharing model.

DEFINITION

Introduced new definitions for 'electric utility,' 'major commercial energy consumer,' and 'underground electric distribution or transmission improvements' to clarify who and what is covered.

REQUIREMENT

Changed the process from state commission approval of specific projects to a requirement that a locality must first enter into a formal agreement with an electric utility before implementing the levy.

TIMELINE

Removed specific deadlines for the Commission to approve projects and the final report due date of December 1, 2024, as the program is no longer a fixed state pilot with a set end date.

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

How they voted

39–0

Passed

Total votes 39

Feb 11, 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

Mar 12, 2026

Committee

House requested conference committee

lower

Mar 11, 2026

Lower · Passed

Passed House with substitute (63-Y 35-N 0-A)

lower

Mar 10, 2026

Lower · Passed

Passed by for the day

lower

Mar 5, 2026

Lower · Passed

Reported from Labor and Commerce with substitute (14-Y 7-N)

lower

Mar 3, 2026

Lower · Passed

House subcommittee offered

lower

Feb 19, 2026

Committee

Assigned HCL sub: Subcommittee #3

lower

Feb 19, 2026

Committee

Referred to Committee on Labor and Commerce

lower

Feb 13, 2026

Upper · Passed

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

upper

Feb 12, 2026

Introduced

Engrossed by Senate as amended (Voice Vote)

upper

Feb 12, 2026

Upper · Passed

Commerce and Labor Amendments agreed to

upper

Feb 11, 2026

Upper · Passed

Passed by for the day Block Vote (Voice Vote)

upper

Feb 9, 2026

Upper · Passed

Reported from Commerce and Labor with amendments (11-Y 4-N)

upper

Feb 9, 2026

Upper · Passed

Senate committee offered

upper

Jan 14, 2026

Committee

Referred to Committee on Commerce and Labor

upper

1 primary · 0 co-sponsors