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Several state lawmakers are considering energy storage related bills that among other things would require the regulators and electric utilities to develop virtual power plant (VPP) programs that are open to third-party aggregators.

In Maryland SB0697 introduces a Maryland Energy Storage Program  that would require the Public Service Commission of Maryland to establish certain targets for the deployment of new energy storage devices in the State.   The bill also requires the Commission to establish and implement the Maryland Energy Storage Program to meet certain energy storage goals and develop a certain energy storage system in the State.   This bill is cross-filed with: HB0910.

In Michigan SB 731 is a distributed energy generation and storage bill awaits full consideration by the full Senate. This bill is entitled “Clean and renewable energy and energy waste reduction act.”  In the bill “Distributed energy resource” means a device or technology 11 that interfaces with and is connected to a distribution system 12 through connection to an electric utility’s wiring or an end-use 13 customer’s system. Distributed energy resource includes eligible 14 electric generators and energy storage systems capable of exporting 15 active power to a distribution system or providing demand response 16 functions.”

Similarly in New York companion energy storage and Virtual Power Plant bills are pending before energy committees. Specifically, New York legislative bills S09500 and companion bill A10354 as introduced would establishes the New York State grid reliability and energy affordability transition (GREAT) act.

Among other things this virtual power plant program is aimed at helping reduce energy costs and grid reliability risks.  This bill provides incentives to participants for supporting the grid by investing in distributed energy resources and reducing net energy costs.

See text of bill here.

In Pennsylvania legislators are considering their own VPP bill.  Specifically HB2264 is an Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in restructuring of electric utility industry, providing for virtual power plant program.  This bill was referred to the House on March 5^th.

The bill notes that “[n]earby states like New York, Maryland and Massachusetts have already enacted policies to support VPPs, and we believe it is time we do the same. As such, we will soon be introducing legislation to direct electric utility companies to establish VPP programs. These programs will allow customers to enroll devices, such as batteries, smart thermostats, and EV chargers, into the VPP and be compensated for reducing energy use or supplying electricity back to the utility when the grid is stressed. Participation will always be voluntary, and customers will have the option to opt-out at any time.

If we do not act, Pennsylvania’s electric grid will face serious challenges ahead, leaving ratepayers to pick up the costs. By modernizing our grid with VPPs, we can create win-win scenarios for utility customers, improve sustainability, reduce electricity demand, and secure our energy future. Please join us in co-sponsoring this important legislation.”

Also as reported previously in Virginia  several energy storage related bills have passed and are awaiting the Governor’s signature or veto.

For example, HB1467 introduces an electric utilities virtual power plant (VPP) pilot program; Phase I Utilities.  This bill requires Appalachian Power to petition the State Corporation Commission for approval to conduct a pilot program to evaluate methods to optimize demand through various technology applications, including the establishment of virtual power plants, by July 1, 2027. The bill also requires the pilot program to evaluate electric grid capacity needs and the ability of such virtual power plants to provide grid services, including peak-shaving, during times of peak electric demand.

Also reported previously SB487 authorizes electric cooperatives to establish and implement a virtual power plant program. The bill defines a virtual power plant as an aggregation of distributed energy resources, enrolled either directly with an electric cooperative or indirectly through an aggregator, that are operated in coordination to provide one or more grid services. Under the bill, an electric cooperative may offer incentives to residential customers to purchase battery storage devices and is required to evaluate various methods to optimize demand.

This bill is identical to HB 562.

Note: There are a slew of legislative energy bills that have passed both chambers and await the governor’s signature or veto.  These bills include the following: House Bill HB898 (Herring), House Bill HB892 (Shin), House Bill HB807 (Sullivan), House Bill HB711 (Herring), House Bill HB809 (Sullivan), House Bill HB590 (Hernandez), House Bill HB828 (Herring), HB434 (LeVere Bolling), House Bill HB284 (Feggans), House Bill HB395 (Krizek), House Bill HB369 (Reid), House Bill HB1062 (Hernandez), House Bill HB1065 (Hernandez), House Bill HB1467 (Franklin, L.V.), Senate Bill SB175 (VanValkenburg), and House Bill HB921 (Lopez)

By state law, Gov. Spanberger must act on the passed bills by April 13, 2026.

Also, in Illinois as reported previously the Illinois Governor signed Public Act 104-0458 into law on January 8, 2026.  This omnibus energy bill is also known as the Clean and Reliable Grid Affordability Act.  This new law becomes effective June 1, 2026.

Among other things this bill amended existing law and enacts new laws regarding utility scale energy storage, renewable portfolio standard reforms, long-term capacity contracts, integrated resource planning, renewable energy siting and permitting, transmission planning reforms, distributed energy resources (DERs), building efficiency and decarbonization, interconnection and energization, nuclear power, and data centers.   See SB0025.

Stay tuned.  More to come!