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HB 895

Electric utilities; energy storage requirements, Department of Energy to develop model ordinance.

2026 Regular Session Introduced by Elizabeth Bennett-Parker and 4 co-sponsors

Virginia's Department of Energy must create a model ordinance requiring electric utilities to meet energy storage standards, enabling grid stability during the clean energy transition.

Approved by Governor-Chapter 694 (effective 7/1/2026)
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Bill Summary · HB 895

Legislative bill overview

HB 895 requires Virginia's Department of Energy to develop a model ordinance for energy storage requirements that electric utilities must meet. The bill aims to standardize how utilities integrate battery storage and other energy storage systems into the state's power infrastructure, with local jurisdictions able to adopt or adapt the model ordinance for their communities.

Why is this important

Energy storage is critical for grid reliability as Virginia transitions toward renewable energy sources, which are intermittent. Establishing storage requirements helps utilities manage peak demand, stabilize the grid during outages, and reduces reliance on fossil fuel plants. The model ordinance approach provides consistency while allowing local flexibility in implementation.

Potential points of contention

  • Utility cost concerns: Utilities may argue that mandatory storage requirements increase operational costs, which could be passed to ratepayers, affecting affordability for lower-income households.
  • Timeline and feasibility: Developing and implementing storage infrastructure requires significant capital investment; critics may question whether the timeline is realistic or if standards are achievable with existing technology.
  • State versus local authority: Tension may arise over how prescriptive the state model should be versus how much discretion localities retain in adoption and modification.

Compiled from official sources — confirm details with the bill’s official record.

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