by Steve Haner
The energy regulatory provisions buried in the final conference report on Virginiaโs 2026-2028 budget, approved by the General Assembly Monday, are as complex and detailed as any of the energy bills reviewed earlier during the regular session. They are also just as damaging.ย
The data center industry was a particular target. The political fights over its partial sales and use tax exemption and its sources of energy were not resolved at all, but another new tax and a host of new regulations are now imposed on just these companies. A harsh but clear message was sent.ย
Why even have a 60-day General Assembly session if all the big decisions are made in a closed room in a delayed budget negotiation? This conference report could not be amended, could not be divided into separate votes on separate provisions, and was โmust passโ because the June 30 deadline is next week. The public disenfranchisement was total. ย
All the headlines are focused on the newย consumption taxย imposedย on the data centers effective July 1, which isย similarย and in addition toย an existing state and local energyย consumption tax. The additional tax of 1.1 cent per kilowatt hour will raise $600 million in each of the next two years and then sunset, but this tax likely will only go away if something even more detrimental to the industry is adopted.ย
Threeย things are important to note about that new consumption tax.ย (more…)















