An Act to amend and reenact §§ 56-580 and 56-585.5 of the Code of Virginia and to amend the Code of Virginia by adding in Title 45.2 a chapter numbered 22, consisting of a section numbered 45.2-2200, relating to electric utilities; energy storage resources; Department of Energy to develop model ordinances; work groups; reports.
HB895 creates a new state framework for local regulation of energy storage projects and ties that framework to existing utility regulation. The bill directs the Department of Energy, working with the Department of Environmental Quality and the Department of Fire Programs, to develop model ordinances for localities by December 1, 2026, and to update them every three years. Those model ordinances must include minimum safety standards based on the latest NFPA 855 standard, account for differences among energy storage technologies, and include other factors the Department deems relevant to support energy storage development in Virginia.
The bill also requires the Department to convene a stakeholder work group and to publish online resources and studies to help local governments, developers, contractors, residents, businesses, and researchers understand energy storage regulation and best practices. In addition, HB895 amends existing utility statutes to expressly recognize energy storage resource facilities in the Commission’s permitting framework, alongside electric generating facilities, when evaluating reliability, public convenience and necessity, and the public interest.
HB895 amends §§ 56-580 and 56-585.5 and adds new § 45.2-2200 in Title 45.2, expanding Virginia law to address energy storage as a distinct category of energy infrastructure. It gives the Department of Energy a formal role in shaping local zoning and safety guidance for energy storage projects, while preserving local authority to regulate such projects through ordinances informed by state model standards. It also reinforces the State Corporation Commission’s authority to permit energy storage resource facilities under the same general public-interest and reliability criteria used for electric generation facilities.
The bill appears broadly supportive of energy storage development, with a strong emphasis on safety, coordination, and local guidance rather than prohibition. Its structure suggests a consensus-oriented approach: state agencies are tasked with producing model ordinances and educational materials, and the inclusion of a wide stakeholder work group indicates an effort to balance industry, local government, environmental, agricultural, and utility interests. No vote or transcript data were provided, so the record does not show recorded opposition or support beyond the enacted chapter status.
The main potential points of contention are likely to be the balance between statewide standardization and local control, and the level of safety and siting requirements imposed on energy storage projects. Localities may want flexibility in regulating projects, while developers and clean energy advocates may favor predictable model ordinances and streamlined approval. Environmental, fire safety, agricultural, and utility stakeholders may differ on issues such as setback requirements, emergency response standards, land use impacts, and how strictly the NFPA 855-based standards should be applied.