2025 Virginia General Assembly Summary of Energy & Data Center Bills

Electric utilities; renewable energy portfolio standard program requirements.

HB 1883 (Del. Katrina Callsen) | SB 1040 (Sen. Schuyler VanValkenburg)

Amends renewable energy portfolio standard (RPS) program requirements for Dominion Energy, including:

1. the annual percentage of program requirements to be met with behind-the meter solar, wind, or anaerobic digestion resources of 3 MW or less, and

2. the date by which 75% of such requirements shall be met with resources located in the Commonwealth.

This legislation also removes the requirement for solar or wind generation facilities to have a capacity of no less than 50KW to qualify for a third-party power purchase agreement under a pilot program.

Land development; solar canopies in surface parking areas.

HB 2037 (Del. David Bulova)

Provides that a locality may adopt an ordinance requiring the installation of a solar canopy over nonresidential surface parking areas with 100 parking spaces or more. Localities shall allow for deviations from the requirements of the ordinance when its strict application would prevent the development of uses and densities otherwise allowed by the locality's zoning or development ordinance. The bill has a delayed effective date of July 1, 2026.

Multi-family shared solar program; amends requirements for a shared solar facility, etc.

HB 2090 (Del. Irene Shin)

Amends the existing multi-family shared solar program to include facilities that are located on a rooftop of a commercial building that shares a common or adjacent substation of the investor-owned utility with the multi-family shared solar subscriber. This legislation also adds minimum bill requirements for the multi-family shared solar program.

Solar Interconnection Grant Program; established, sunset, report.

HB 2113 (Del. Charniele Herring)

Establishes the Solar Interconnection Grant Program for the purpose of awarding grants on a competitive basis to public bodies to offset costs associated with the interconnection of solar facilities to the grid.

Electric utilities; virtual power plant pilot program.

HB 2346 (Del. Phil Hernandez) | SB 1100 (Sen. Ghazala Hashmi)

Requires Dominion Energy Virginia to establish a pilot program to evaluate methods to optimize electric demand through various technology applications, including the establishment of virtual power plants, by December 1, 2025. 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 demand.

Electric utilities; integrated resource plans.

HB 2413 (Del. Candi Mundon King) | SB 1021 (Sen. Scott Surovell)

Changes the content and planning process for the integrated resource plan (“IRP”) developed by an electric utility, including:

1. Extending the planning timeframe from 15 to 20 years;

2. Requiring Appalachian Power to file an IRP;

3. Extending the IRP filing frequency for a utility from biennially to triennially; and

4. Requiring utilities to consider grid-enhancing technologies as alternatives to new transmission infrastructure.

The SCC shall establish guidelines, initiate a proceeding by July 1, 2026, and convene a work group to make recommendations on the required guidelines.

Small renewable energy projects; amends definition, permit by rule.

HB 2426 (Del. Katrina Callsen)

Clarifies that a permit by rule (“PBR”) for a small renewable energy project includes interconnection facilities.  "Interconnection facilities" are defined as “generation tie lines, collector lines, substations, switching stations, and any other component required to connect an electrical generation facility with the electrical grid.” The bill requires that the Department of Environmental Quality (“DEQ”) and the State Corporation Commission (“SCC”) enter into a memorandum of understanding to implement the provisions of the bill.

Energy storage requirements; Department of Energy, et al., to develop model ordinances, reports.

HB 2537 (Del. Rip Sullivan) | SB 1394 (Sen. Lamont Bagby)

The SCC shall have discretion to require:

1. Appalachian Power to construct, acquire, or procure at least 780 MWs of short-duration energy storage capacity by 2040 and 520 MWs of long-duration energy storage capacity by 2045, and

2. Dominion Energy to construct, acquire, or procure at least 5,220 MWs of short-duration energy storage capacity by 2045 and 3,480 MWs of long-duration energy storage capacity by 2045.

The bill requires the Department of Energy (“DOE”), the DEQ, and the Department of Fire Programs to convene a work group to create model ordinances for energy storage for use by localities. The DOE and DEQ are also directed to convene a work group to develop recommendations and financial incentives related to the development of long-duration energy storage projects. Finally, the legislation directs the DOE to engage with PJM in reviewing market conditions related to energy storage resources and permits Dominion Energy to propose a partnership with institutions of higher education to deploy energy storage resources.

Siting of data centers; site assessment; high energy use facility.

HB 1601 (Del. Josh Thomas) | SB 1449 (Sen. Adam Ebbin)

Prior to any approval of a rezoning application, special exception, or special use permit for the siting of a data center, a locality may require a site assessment examine the effect of the proposed facility on water, agricultural resources, parks, registered historic sites, and forestland. The bill also authorizes a locality to examine the sound profile of the facility.

Public utilities certain; SCC shall determine if using reasonable classifications of customers.

HB 2084 (Del Irene Shin)

Directs the SCC to determine whether Dominion Energy and Appalachian Power Company are using rates, tolls, charges, or schedules that contain reasonable classifications of utility customers. In making this determination, the SCC shall consider whether new or separate customer classifications, such as data center customers, are reasonable.

Demand response programs; Dept. of Energy to evaluate & assess benefits, and recommendations.

SB 1047 (Sen. Danica Roem)

Directs the DOE to evaluate and assess benefits, impacts, best practices, and implementation recommendations for demand response programs in the Commonwealth and to report back to the General Assembly by November 1, 2025.