Budget carries major Virginia policy changes
Virginia lawmakers approved budget amendments that include significant policy changes affecting data centers. These amendments revise water conservation requirements for new data facilities in specific areas and mandate electric suppliers to separately list the Data Center Electricity Consumption Tax on invoices.
Virginia lawmakers have approved all 14 budget amendments submitted by Gov. Abigail Spanberger, successfully completing work on the state's two-year spending plan ahead of the new fiscal year. The amendments, which passed both the Senate and the House of Delegates, encompass spending and policy changes across various state programs, including firearms, Medicaid, and data centers.
Specifically for data centers, two key amendments were adopted. One modifies water conservation requirements for certain new facilities located in designated Cooling Water Scarcity Areas and the Eastern Virginia Groundwater Management Area. The second requires electric suppliers to explicitly list the Data Center Electricity Consumption Tax as a separate line item on invoices issued to data center operators.
Other notable amendments include delaying changes to firearms legislation until July 1, 2027, accelerating Medicaid reimbursement increases for home care services, establishing a firefighter cancer screening grant program, and expanding Regional Greenhouse Gas Initiative utility bill credits to eligible electric cooperative customers. The budget changes collectively reduced the state's unappropriated balance.