Data center changes, clean energy top legislative priorities in Virginia 

RICHMOND, Va. — This week Virginia kicked off the 2026 legislative session. Variations of many bills that made their way through the 2025 session will be present again as well as new bills addressing priorities of environmental groups across the state, like data centers, clean energy, clean transportation, and affordability.  

“A huge priority for everyone is affordability. Virginians have a high energy burden. Sustained movement to cleaner energy sources like solar and battery storage can ease that burden as can reducing reliance on gas and placing guardrails on data center growth,” said Josephus Allmond, SELC staff attorney.  

One bill that SELC is supporting this session seeks to increase the storage requirements for Virginia utilities and create a new requirement for long-duration energy storage. It also asks the State Corporation Commission to update storage regulations regularly.  

Another bill seeks to expand the role that distributed generation, or small scale solar, plays in Virginia’s clean energy transition. This bill would make it easier for small businesses and individuals to access solar and increase the number of projects built on previously disturbed lands. 

SELC and several other environmental and advocacy groups are also prioritizing data centers. We are focusing on changes to the state’s tax incentive, establishing a leading “demand flexibility” program for large energy users to reduce grid strain and lower costs to customers, and providing better transparency. 

“Last year alone, we handed out more than a billion dollars in tax breaks to data center developers, including to some of the most valuable companies in the world. We need to a do better job making sure any tax breaks are only given to companies that share Virginia’s commitment to clean energy. And data centers need to do their part to help keep prices down by helping develop and participate in a leading demand flexibility program. It is only fair that data centers help mitigate the effects of their immense energy needs,” said SELC Senior Attorney Nate Benforado. 

This legislative session also brings questions as to what will happen with Viginia’s participation in the Regional Greenhouse Gas Initiative (RGGI).  

“Our hope is that the legislature can help get RGGI back on track as quickly as possible,” Benforado said.  

The regular General Assembly session will adjourn on March 16.