Feature Articles

HB891 – Siting of battery energy storage projects; commercial solar photovoltaic generation facilities. This new law among other things prohibits a host locality from requiring a special exception or any other local land use approval on such battery energy storage project. The bill clarifies that nothing in the provisions of the bill shall be construed to (i) limit the authority of a host locality to enforce compliance with applicable codes or ensure the safe operation of the battery energy storage project or (ii) preclude the developer of a battery energy storage project from negotiating a siting agreement with the host locality. The bill also clarifies that any battery energy storage project for which an initial interconnection request has been filed with an electric utility or a regional transmission organization prior to July 1, 2030, and is constructed in accordance with the provisions of the bill shall be subject to the applicable local ordinance and regulation in effect on July 1, 2026. This bill is identical to SB 443.

HB1467 – Electric utilities; virtual power plant pilot program, Phase I Utilities.  This new law 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 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.

HB1102 – Renewable energy portfolio standard program; energy from geothermal heating/cooling systems, report.  Requires, for purposes of the renewable energy portfolio standard program, Dominion Energy Virginia and American Electric Power to annually procure and retire certain percentages of renewable energy certificates from geothermal heating and cooling systems, as defined in the bill. The bill directs the State Corporation Commission to prepare and deliver a report evaluating the procurement and retirement of renewable energy certificates from geothermal heating and cooling systems in the Commonwealth on or before November 1, 2028. The bill also directs the Real Estate Appraiser Board to promulgate regulations requiring the development of a continuing education curriculum and required training for all licensees that includes how to properly determine the increase in value of real estate created by reductions in building energy costs associated with solar, geothermal, and solar water heating investments. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation and is identical to SB 252.

HB1062 – Electric utilities; pilot program for electric energy conservation, solar energy generation.  Requires American Electric Power and Dominion Energy Virginia to each petition the State Corporation Commission by December 31, 2026, to conduct a pilot program for electric energy conservation, solar energy generation, and energy storage resources for low-income, elderly, and disabled individuals. The bill directs the Commission to convene a technical conference to evaluate the creation of an energy efficiency program meeting certain requirements by November 1, 2026. Under the bill, if the Commission determines that such a program is feasible for implementation by American Electric Power and Dominion Energy Virginia, the Commission shall require such utilities to petition for approval by May 1, 2027, to implement such programs. The bill has an expiration date of July 1, 2034. This bill is identical to SB 327.

SB175 – Renewable energy portfolio standard program; requirements, power purchase agreements.  Amends certain renewable energy portfolio standard program requirements for Dominion Energy Virginia, including the annual percentage of program requirements to be met with solar, wind, or anaerobic digestion resources of one megawatt or less located in the Commonwealth. The bill changes from 2025 to 2027 the compliance year beginning in which at least 75 percent of renewable energy certificates used by Dominion Energy Virginia shall come from eligible resources located in the Commonwealth. The bill also removes the requirement for a solar-powered or wind-powered generation facility to have a capacity of no less than 50 kilowatts to qualify for a third party power purchase agreement under a pilot program. The bill directs the State Corporation Commission, by July 1, 2033, to initiate a proceeding to evaluate the future availability of renewable energy certificates from certain resources and permits the Commission to increase or decrease by up to one percentage point the percentage of program requirements to be met by such resources in future compliance years. The bill provides that it is the policy of the Commonwealth to encourage development on previously developed project sites, as defined in existing law, to reduce the land use impacts of solar development. This bill is identical to HB 628.

HB2426 – Small renewable energy projects; amends definition, permit by rule.  Amends the definition of “small renewable energy project” for the purposes of obtaining a permit by rule from the Department of Environmental Quality to include interconnection facilities, as defined in the bill. The bill requires that the Department of Environmental Quality and the State Corporation Commission enter into a memorandum of understanding to implement the provisions of the bill. The bill has a delayed effective date of July 1, 2026.

HB429 – Electric utilities; definitions, integrated resource plans, report.  Makes various changes related to the content and process for an integrated resource plan (IRP) developed by an electric utility that provides a forecast of its load obligations and a plan to meet those obligations. The bill (i) extends the planning timeframe from 15 to 20 years; (ii) requires Appalachian Power to file an IRP by removing an exception from the definition of “electric utility”; (iii) changes the frequency with which a utility is required to file an IRP from biennially to triennially; (iv) requires utilities to consider the use of grid-enhancing technologies as alternatives to new transmission infrastructure, and when new transmission lines are envisioned, to provide the reasons grid-enhancing technologies are not sufficient to defer or eliminate the need for new transmission infrastructure; and (v) requires utilities to consider the use of surplus interconnection service, as defined in the bill, to add new electric generation projects and energy storage resources to the grid. The bill requires that the current stakeholder review process for integrated resource plans be facilitated by a third-party facilitator selected by the State Corporation Commission and compensated by the utility. The bill requires, as part of the stakeholder review process, the utility to provide stakeholders with reasonable access to the same modeling software, modeling assumptions, modeling inputs, and data used by the utility to evaluate supply and demand resources in its integrated resource plan to enable stakeholders to create modeling scenarios for the utility’s consideration during the development of its integrated resource plan. The bill requires the State Corporation Commission to (a) establish guidelines that ensure that utilities develop comprehensive integrated resource plans and provide meaningful public engagement and maximum transparency during the planning process; (b) conduct a proceeding by July 1, 2027, and at least once every five years thereafter, to identify and review each of its existing orders relevant to integrated resource plans to determine if such orders remain necessary and effective and are not overly burdensome; and (c) convene a work group to make recommendations on the required guidelines. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation. This bill is identical to SB 249.

HB590 – Smart Solar Permitting Platform; established, residential solar energy systems.  Creates the Smart Solar Permitting Platform (the Platform) to serve as a tool for (i) contractors to obtain permits for the construction of streamline-eligible residential solar energy systems and (ii) localities to process applications for such permits. The bill requires the Department of Energy to establish, launch, and administer the Platform by July 1, 2027, as an internet-based platform that automates plan review and instantly releases a permit or a permit revision to construct certain residential solar energy systems that comply with any applicable building codes and state laws. The bill requires localities to allow contractors to submit an application to construct a residential solar energy system through the Platform or through an alternative automated solar permitting platform by July 1, 2028. The bill requires any locality that chooses to use an alternative automated solar permitting platform to submit an annual report to the Department no later than March 1 of each year. The bill directs the Director of the Department to convene a work group to determine the appropriateness of adding a surcharge to local government permitting fees to defray state costs for the Platform and to report its findings to the General Assembly on or before November 1, 2026. This bill is identical to SB 382.

HB711 – Solar facilities; local regulation, permits, special exceptions.  Provides that a ground-mounted solar energy generation facility to be located on property zoned agricultural, commercial, industrial, or institutional shall be considered pursuant to various criteria to be included in a local ordinance, such as specifications for setbacks, fencing, solar panel height, visual impacts, grading, and a decommissioning plan for solar energy equipment and facilities, unless otherwise permitted by right. The bill requires localities to furnish the State Corporation Commission with a record of special exception decisions reached pursuant to these provisions that includes (i) the reason for any adverse decision, (ii) any finding of nonconformity with the local comprehensive plan, and (iii) the date of the last revision to the comprehensive plan. The bill further requires the State Corporation Commission to compile and maintain on the Commission’s public website a searchable database of all solar special exception decisions and the reasons for any adverse decisions made over a period of not less than five years. Finally, the bill states that its provisions shall apply to any ground-mounted solar facility with a generating capacity of one megawatt or more for which an application for local approval is filed on or after July 1, 2026, and any such project shall not be governed by any local ordinances inconsistent with the bill; however, any application for a solar energy facility that has been received and accepted by the relevant authority prior to July 1, 2026, shall be subject to any applicable local ordinances in place at the time the initial application was filed. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation. This bill is identical to SB 347.

HB898 – Electric utilities, certain; SCC to determine maximum amount of fees for disconnection, etc.  Directs the State Corporation Commission (the Commission) to determine, in the next relevant cost recovery proceeding for certain utilities, the maximum allowable amount of fees for disconnection and reconnection such utilities may charge to residential customers disconnected from service due to nonpayment of bills or fees. The bill defines “utility” as an electric company, natural gas supplier, or water supplier or wastewater service provider subject to the Commission’s regulation.

HB892 – Electric utilities; integrated resource plans; SCC to investigate electric load forecasts.  Requires Dominion Energy to provide information related to forecasting its compliance with renewable energy portfolio standards in its integrated resource plan submitted to the State Corporation Commission, excluding information related to accelerated renewable energy buyers or customers purchasing electricity from a licensed supplier. The bill also directs the Commission to initiate a proceeding no later than March 1, 2027, to investigate electric load forecasting practices by Dominion Energy, Appalachian Power Company, and electric distribution cooperatives.

HB1065 – Electric utilities; comprehensive assessments, surplus interconnection service.  Electric utilities; surplus interconnection service sites. Directs Appalachian Power and Dominion Energy Virginia to undertake a comprehensive assessment of available interconnection capacity at each such utility’s existing and planned intermittent electric generation facilities located in the Commonwealth. The bill directs such utilities to establish pilot programs for energy storage resources and solar generation facilities that utilize surplus interconnection service, as defined in the bill, including a request for proposals. The bill requires such utilities to submit the results of such requests for proposals as part of their 2027 plans and petitions for approval for the development of new solar and onshore wind generation capacity, which plans are required under existing law. This bill is identical to SB 508.

HB809 – Electric utilities; shared solar programs, Phase I Utility.  Amends certain provisions related to the shared solar program established by the State Corporation Commission for Appalachian Power Company. The bill permits excess bill credits to be distributed to shared solar subscribers more than once annually. The bill also requires the utility in administering its shared solar program to require net crediting functionality for customer utility bills, as described in the bill.

The bill also directs Appalachian Power to (i) release an additional 50 megawatts as part two of the shared solar program on July 1, 2026; (ii) release a further additional 50 megawatts as part three of the shared solar program by January 1, 2028; and (iii) petition the Commission to initiate a shared solar expansion proceeding to determine the capacity for part four of the shared solar program by May 1, 2029. See final enactments for bill effective date. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation. This bill is identical to SB 255.

HB807 – Electric utilities; shared solar programs, Phase II Utility.  Amends certain provisions related to the shared solar program established by the State Corporation Commission for Dominion Energy Virginia. Under the bill, Dominion Energy Virginia is authorized to release an additional 525 megawatts of capacity as part two of such program upon the earlier of (i) a determination that at least 90 percent of the aggregate program capacity has been subscribed and project construction is substantially complete or (ii) July 1, 2026. The bill directs Dominion Energy Virginia to petition the Commission to initiate a proceeding to determine the capacity for part three of such program on or before part two of such program is substantially complete for 268 megawatts of capacity. The bill directs the Commission to evaluate the costs and benefits of the shared solar program under such proceeding and to consider the results of such proceeding in determining any future allocations of shared solar capacity and changes in program design. The bill directs the Commission to update its regulations on shared solar programs to comply with the provisions of the bill by December 31, 2026, and to require each participating utility to file any tariffs, agreements, or forms necessary for implementation of such programs by March 1, 2027. This bill is identical to SB 254.

HB369 – Electric utilities; renewable portfolio standard program, zero-carbon electricity, etc.  Revises the conditions under which accelerated clean energy buyers, defined in existing law as accelerated renewable energy buyers, may contract with Appalachian Power or Dominion Energy Virginia to obtain renewable energy certificates (RECs). The bill exempts an accelerated clean energy buyer obtaining capacity, energy, or RECs from qualifying resources or facilities from the assignment of non-bypassable costs associated with compliance with the renewable portfolio standard program based on the amount and type of renewable energy certificates obtained in proportion to such accelerated clean energy buyer’s total electric energy consumption. This bill is identical to SB 598.