Virginia lawmakers passed big changes to energy and environment policy this year. Here’s a look.

The Virginia General Assembly passed a slate of significant energy and environmental legislation that, if signed by Gov. Abigail Spanberger, will enact major changes across the state. Key policy shifts include Virginia rejoining the Regional Greenhouse Gas Initiative (RGGI), a carbon market previously exited by Gov. Glenn Youngkin, and implementing "grid utilization" metrics to optimize the electric grid and reduce electricity bills, making Virginia the first state to adopt such a concept. The new laws also directly address the growing impact of data centers in the commonwealth. Utilities will be required to report on water consumption by data centers, differentiating between reclaimed and drinking water sources. Legislation further mandates that state officials deny air permits for data center diesel generators unless they meet stringent EPA emissions standards, aiming to mitigate air pollution. Additionally, bills were approved to explore how data centers can reclaim "waste heat" and direct utilities to develop voluntary "demand flexibility programs" for high-energy users like data centers, designed to alleviate stress on the grid during peak times. Other environmental initiatives include expanding solar and geothermal energy access, ensuring no net loss of wetland acreage, and addressing PFAS contamination and beneficial use of dredged material.