Staff outlined three PJM pathways for DERs — demand-response participation, DER aggregations as supply resources via Order 2222, and a peak-shaving adjustment for load-serving entities — and flagged data centers as a near-term opportunity to reduce capacity obligations and system costs.

HB 25 78 (substitute) would tie tax incentives and other benefits to data‑center performance standards — energy‑management targets, cleaner backup generators, and clean power procurement — and launch stakeholder workgroups; supporters said the bill uses incentives to raise industry performance, while industry and some localities warned of competitiveness and retroactivity concerns; the subcommittee laid the bill on the table (4–1).

Todd Andrews told the committee Virginia’s new data‑center electricity consumption tax is 1.1¢ per kWh and that timing and billing cycles explain why initial remittances covered only a portion of expected July–August consumption; treasury expects catch-up remittances in coming months.

Joao Ferreira of the Weldon Cooper Center briefed the Virginia Beach Planning Commission on Oct. 14, saying hyperscale data centers generate major electricity and water peaks, offer significant local tax revenue but contribute relatively few permanent jobs. He urged transparency on peak water use and power connections before local approval.

Commissioners and presenters debated how the rapid growth of data-center load affects system cost and who bears upgrades. Officials said data centers drive large portions of modeled system cost, but proper cost allocation and tariff design could shift burdens away from residential customers.

The Senate agriculture committee reported HB507 to require tier‑4 (or equivalent) generator technology for data centers with air permit applications received on or after July 1, 2026. Supporters cited large NOx reductions and local air‑quality benefits; members pressed DEQ on grandfathering and options for existing generators.

A substitute (HB 496 laid on SB 553) would require data centers with DEQ air permits to register water withdrawals and use data with the State Water Control Board, include reclaimed-water reporting and allow quarterly reporting where monthly measurement is unavailable; the committee reported the bill with substitute and a delayed enactment date of 01/01/2029.

The subcommittee voted to report a substitute to HB507 that would require data centers built after July 1, 2026 to employ best-available, low‑emission generator technology and limit nonemergency use; the substitute passed 7–3 after DEQ noted prior guidance recommending Tier 4‑equivalent generators.

Sen. Roem'026 offered a substitute limiting use of Tier 2 generators to sudden, unforeseeable outages and phasing in retrofits toward Tier 4-equivalent emissions. DEQ officials told the committee Tier 4-equivalent systems can cut pollutant emissions by roughly 90%. Committee adopted a technical amendment to require site plans approved after July 1, 2026, to use Tier 4 or equivalent.

A substitute for HB323 directs the Department of Energy to lead an effort to evaluate and encourage reuse of waste heat from data centers for district heating or industrial use; supporters pointed to international examples and potential local opportunities to heat schools or factories.

Senate Bill 552 would require applicant‑funded site assessments and statewide standards for large data centers, plus public hearings and utility‑infrastructure disclosure. Environmental groups supported transparency; the data‑center industry and trades opposed duplication and competitiveness impacts. After procedural activity and reconsideration, the committee reported and referred the bill to Local Government.

The subcommittee reported House Bill 153 — a revised, partly mandatory package of siting and disclosure rules for data centers that incorporates HB 511 — after supporters and industry groups negotiated compromises; the substitute passed committee 8-0.

The Board of Supervisors adopted a county policy to guide siting and mitigation of data centers after debating noise, water and power impacts; an amendment raised the distance from occupied residences to 1,000 feet. Staff will provide mapping and the policy remains subject to site‑specific SUP review.

County planning staff presented a draft policy to guide siting and mitigation of data center facilities. Supervisors discussed setbacks, water and power impacts, the possibility of community benefits, and asked staff to return with edits and recommended sites and to arrange field visits.