Virginia HB 895: Electric utilities; energy storage requirements, Department of Energy to develop model ordinance.

Bill Text

2026 SESSION

INTRODUCED

26104780D

HOUSE BILL NO. 895

Offered January 14, 2026

Prefiled January 13, 2026

A BILL to amend and reenact § 56-585.5 of the Code of Virginia and to amend the Code of Virginia by adding in Subtitle V of Title 45.2 a chapter numbered 22, consisting of a section numbered 45.2-2120, relating to electric utilities; energy storage resources; Department of Energy to develop model ordinances; work groups; reports.

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Patrons—Sullivan, Lopez, Simonds, Bennett-Parker and Carr

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Referred to Committee on Labor and Commerce

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Be it enacted by the General Assembly of Virginia:

1. That § 56-585.5 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding in Subtitle V of Title 45.2 a chapter numbered 22, consisting of a section numbered 45.2-2120, as follows:

CHAPTER 22.

ENERGY STORAGE.

§ 45.2-2120. Model ordinances for energy storage resources.

A. By December 1, 2026, the Department, in consultation with the Department of Environmental Quality and the Department of Fire Programs, shall develop model ordinances suggested for use by localities in their regulation of energy storage projects, as described in subsection E of § 56-585.5, and shall update such model ordinances every three years thereafter. Such model ordinances shall include (i) minimum safety standards in accordance with the most recently published edition of the National Fire Protection Association 855 Standard for the Installation of Stationary Energy Storage Systems and (ii) consideration of the varying characteristics of different energy storage technologies. In conducting such development, the Department shall develop and publish a guideline document that advises localities on best practices for reviewing energy storage projects. 

B. The Department shall convene a work group to advise on the development or update of model ordinances conducted pursuant to subsection A. Such work group shall include representatives from the Department of Environmental Quality, the Department of Fire Programs, an association representing localities, a nonprofit agricultural advocacy organization, an environmental organization, trade associations related to solar, energy storage, and clean energy, storage project engineers, electric utilities, and any other stakeholders deemed relevant by the Department. The Department shall make available online any resources or studies developed by the work group and shall develop and maintain online resources to educate localities, developers, contractors, residents, businesses, researchers, and other stakeholders about energy storage.

§ 56-585.5. Generation of electricity from renewable and zero carbon sources.

A. As used in this section:

"Accelerated renewable energy buyer" means a commercial or industrial customer of a Phase I or Phase II Utility, irrespective of generation supplier, with an aggregate load over 25 megawatts in the prior calendar year, that enters into arrangements pursuant to subsection G, as certified by the Commission.

"Aggregate load" means the combined electrical load associated with selected accounts of an accelerated renewable energy buyer with the same legal entity name as, or in the names of affiliated entities that control, are controlled by, or are under common control of, such legal entity or are the names of affiliated entities under a common parent.

"Control" has the same meaning as provided in § 56-585.1:11.

"Elementary or secondary" has the same meaning as provided in § 22.1-1.

"Falling water" means hydroelectric resources, including run-of-river generation from a combined pumped-storage and run-of-river facility. "Falling water" does not include electricity generated from pumped-storage facilities.

"Low-income qualifying projects" means a project that provides a minimum of 50 percent of the respective electric output to low-income utility customers as that term is defined in § 56-576.

"Phase I Utility" has the same meaning as provided in subdivision A 1 of § 56-585.1.

"Phase II Utility" has the same meaning as provided in subdivision A 1 of § 56-585.1.

"Previously developed project site" means any property, including related buffer areas, if any, that has been previously disturbed or developed for non-single-family residential, nonagricultural, or nonsilvicultural use, regardless of whether such property currently is being used for any purpose. "Previously developed project site" includes a brownfield as defined in § 10.1-1230 or any parcel that has been previously used (i) for a retail, commercial, or industrial purpose; (ii) as a parking lot; (iii) as the site of a parking lot canopy or structure; (iv) for mining, which is any lands affected by coal mining that took place before August 3, 1977, or any lands upon which extraction activities have been permitted by the Department of Energy under Title 45.2; (v) for quarrying; or (vi) as a landfill.

"Total electric energy" means total electric energy