The 2026 Virginia General Assembly session saw continued focus on electrification, distributed energy resources, and utility regulation, alongside the creation of a new cabinet-level Chief Energy Officer role. A number of energy-related measures have now been signed into law, while others remain pending or were carried over, reflecting an evolving policy landscape centered on affordability, reliability, and long-term system planning.
Creation of Chief Energy Officer Role
Governor Abigail Spanberger recently issued an executive order establishing a cabinet-level Chief Energy Officer and appointed Josephus Allmond to serve in the role. The Chief Energy Officer is tasked with coordinating energy policy across state agencies, utilities, and regional grid operators, with a focus on addressing rising energy costs, improving system reliability, and supporting long-term energy planning.
The creation of this role signals a more centralized and coordinated approach to energy policy as the Commonwealth manages rapid load growth and increasing infrastructure demands.
Utility Role in Electrification and Infrastructure Development
Recent legislative activity continues to position utilities and related stakeholders as central to electrification and infrastructure deployment. Legislation supporting transportation electrification and integration of charging infrastructure into utility planning has been signed into law (HB 1225 / SB 407, enacted).
Distributed Energy and Grid Flexibility
The General Assembly also advanced initiatives aimed at increasing grid flexibility through distributed energy resources. Legislation authorizing electric cooperatives to establish virtual power plant programs has been signed into law (HB 562, enacted), enabling aggregation of distributed resources to reduce peak demand.
Additional measures expand shared solar program capacity and direct further regulatory proceedings to evaluate program design and cost allocation (SB 254 / HB 807, awaiting Governor’s action). Recognition of agrivoltaics within existing renewable energy frameworks (HB 508, awaiting Governor’s action) further reflects continued support for innovative distributed generation models.
Large Load Growth and Cost Allocation
Several enacted measures directly address the impact of large energy users, including data centers, on system costs. Legislation allows high-load customers to enter into agreements with utilities to fund the construction of dedicated substations serving their facilities, thereby shielding other ratepayers from those infrastructure costs (HB 1191 / SB 377, enacted).
Related proposals would have required broader review of cost allocation to assess whether data center-driven load growth shifts costs to other customer classes (HB 658, continued to 2027). While such measures did not advance this session, they underscore continued regulatory focus on balancing large-scale demand growth with broader ratepayer impacts.
Clean Energy Procurement and Cost Oversight
Legislation also continues to evolve how utilities and large customers meet clean energy requirements. Updates to the renewable portfolio standard framework clarify procurement of renewable energy certificates and expand recognition of zero-carbon resources, including nuclear and emerging technologies (HB 369, enacted).
In addition, legislation directs the State Corporation Commission to evaluate fuel and purchased power costs and consider mechanisms to mitigate ratepayer exposure to volatility (SB 505, enacted).
Planning, Permitting, and Infrastructure Efficiency
Recent measures reflect increased focus on planning and infrastructure deployment efficiency. Legislation prioritizes the use of existing transmission corridors and directs further study of transmission siting and permitting processes (HB 889 / SB 497, enacted).
Additional measures addressing surplus interconnection capacity and pilot programs remain pending (HB 1065, awaiting Governor’s action), indicating continued attention to maximizing existing grid infrastructure.
Additional Notable Developments
Other legislative activity includes expanded energy efficiency initiatives for low-income households (HB 2 / SB 72, awaiting Governor’s action), continued participation in market-based carbon reduction frameworks (HB 397 / SB 802, awaiting Governor’s action), and increased attention to emerging technologies such as geothermal energy (HB 1102, awaiting Governor’s action).
Governor Spanberger has framed many of these measures as part of a broader effort to address rising costs for Virginia residents, including utility costs, while maintaining reliability and supporting long-term energy investment.
Key Takeaways
The 2026 session underscores several clear trends:
- Continued expansion of the utility role in electrification and infrastructure development
- Increased emphasis on distributed energy resources and grid optimization
- Growing focus on allocating infrastructure and system costs to large load customers
- Greater attention to affordability, planning, permitting efficiency, and regulatory transparency
Many of the measures that did not advance this session are likely to reemerge in future legislative cycles, particularly those addressing cost allocation, large load growth, and evolving resource adequacy needs. Taken together, these developments signal a more integrated and coordinated approach to energy policy in Virginia, with utilities, regulators, and large customers playing increasingly interconnected roles in shaping the Commonwealth’s energy future.
Against this backdrop, Hirschler advises clients on navigating evolving energy laws and regulations, including legislative developments, regulatory compliance, and infrastructure planning considerations. We work with utilities, developers, and large energy users to assess risk and position projects in a rapidly changing policy environment.
Charles W. Payne, Jr., a native of the Fredericksburg area, prides himself on the business development services he provides to the region. His practice areas include corporate and general business law, zoning and land use, commercial real estate, and federal and state government relations. He routinely represents businesses of all sizes, commercial real estate developers, contractors, not-for-profit foundations, cooperatives, medical practitioners and economic development authorities. Charlie currently serves as general counsel for Rappahannock Electric Cooperative, the largest Virginia electric utility cooperative and one of the largest utility cooperatives in the country.
Tristan Smith is an associate in Hirschler’s Business Section. His practice focuses on corporate transactions, including mergers and acquisitions, as well as energy and infrastructure matters. He also tracks and analyzes legislative and regulatory developments affecting clients in the energy sector.
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