Bill > HB897

This bill, effective July 1, 2027, modifies the existing sales and use tax exemption for data centers by introducing new environmental and energy efficiency requirements for operators to maintain eligibility. Starting July 1, 2027, data centers must avoid using co-located generating facilities that emit carbon dioxide, except for backup generators. By July 1, 2029, they will need to contract for a specific percentage of their energy, capacity, and renewable energy certificates from clean energy sources, as certified by the State Corporation Commission. Additionally, data centers must transition to non-carbon dioxide-emitting backup power sources, such as energy storage, with the exact date depending on when the data center initially began operations. For any new data centers receiving their final occupancy permit on or after January 1, 2030, or for existing data centers seeking to amend their agreements, they must demonstrate significant investment in environmental management and energy efficiency measures that benefit the overall energy system. The bill also includes provisions for a technical work group to assess non-carbon-emitting backup generator technology and requires electric utilities to file voluntary tariffs to facilitate customer procurement of clean energy without increasing costs for other customers.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB897