Underground transmission lines; qualifying projects.
SB 1358 expands and revises Virginia’s pilot program for underground electric transmission lines. The bill keeps the existing framework for selecting a limited number of qualifying projects, but updates the eligibility dates, voltage thresholds, and project criteria so that additional transmission projects can be approved for all or partial underground construction. It continues to focus on projects that are technically feasible, supported by affected localities, and tied to grid reliability, grid resiliency, or economic development, while also adding a new category for higher-voltage projects routed through developed areas or sensitive corridors such as scenic, historic, or conservation easement areas.
The bill also changes how costs are allocated and how the State Corporation Commission (SCC) handles approvals. For certain projects, the SCC would be required to approve underground construction and could not require additional technical or cost analyses as a condition of approval, while for other projects it would request such analyses and apply specific cost-sharing rules. The bill deems qualifying underground projects to satisfy certain state utility-need and local zoning requirements, and it directs the SCC to report annually on the pilot program’s progress and outcomes, including cost, reliability, timeline, and economic development effects.
SB 1358 would amend § 56-585.1:5 of the Code of Virginia, which governs the underground transmission line pilot program. It would broaden the types of transmission projects eligible for underground placement, extend filing windows for qualifying projects, and modify the criteria for approval, including locality support, technical feasibility, and cost caps or cost-sharing arrangements. It would also preempt conflicting local ordinances and streamline state approval by treating qualifying projects as satisfying certain utility-certification and zoning requirements. In practical terms, the bill shifts more authority to the SCC and participating utilities while creating a clearer statutory pathway for underground transmission projects and their associated cost recovery.
The available vote history suggests the bill faced significant skepticism in committee. It was passed by indefinitely in the Senate Commerce and Labor Committee on a 11-3 vote, which indicates a majority supported setting it aside rather than advancing it. No committee transcript is available, so the record does not show detailed debate, but the vote outcome suggests the proposal did not have enough support to move forward in its introduced form. Overall, the sentiment appears cautious to unfavorable among committee members, at least as reflected by the decision to pass it by indefinitely.
The main points of contention likely center on cost, ratepayer impacts, and the extent to which undergrounding should be mandated rather than discretionary. The bill would require substantial cost recovery through utility rate adjustment clauses and, depending on the project category, assign costs to Virginia jurisdictional customers, data center customers, or localities under cost-sharing agreements. Another likely issue is the bill’s reduced procedural review for some projects, including limits on additional technical, environmental, and historical-resource analysis, which may concern opponents who favor fuller regulatory scrutiny. Supporters, by contrast, appear focused on reliability, resiliency, economic development, and avoiding visual or land-use impacts in sensitive corridors.