Virginia lawmakers have a state budget, and raises greater than 175%
Virginia lawmakers approved a two-year state budget that includes a temporary electricity consumption tax on data centers. The budget also directs the Department of Environmental Quality to establish cooling water requirements and statewide noise regulations for certain new data center facilities. This budget now heads to Gov. Abigail Spanberger for approval.
Virginia lawmakers have passed a two-year state budget that introduces a temporary electricity consumption tax on qualifying data centers, set at 1.1 cents per kilowatt-hour and capped at $600 million annually. The budget, approved by the House of Delegates 71-22 and the Senate 23-16, now awaits the signature of Democratic Gov. Abigail Spanberger. This legislative action also mandates the Department of Environmental Quality to establish cooling water requirements for new data centers and develop statewide noise regulations, alongside directing the Joint Subcommittee on Tax Policy to study the industry's economic and environmental impacts.
Beyond data center regulations, the budget significantly increases salaries for General Assembly members, with delegates receiving a 183.4% raise and senators a 177.8% raise, effective January 13. It also allocates revenue from the Regional Greenhouse Gas Initiative, with 45% designated for electric bill credits for residential customers and small businesses. Furthermore, the budget creates a framework for a regulated adult-use cannabis market, provides funding for the Virginia Cannabis Control Authority, and establishes a $25 million Employee Child Care Assistance Pilot Program.