An Act to amend the Code of Virginia by adding in Article 1 of Chapter 13 of Title 10.1 a section numbered 10.1-1322.6, relating to permit requirements for data centers; emission limits for certain engine-generator sets.
HB507 adds a new section to Virginia’s air pollution permitting law to address data centers that use engine-generator sets, or gen-sets, as backup or support power equipment. For permit applications submitted on or after July 1, 2026, the Department of Environmental Quality may not issue a permit for a data center unless the permit’s emission limit for each gen-set is at or below the emissions achieved by a Tier 4 equivalent gen-set. The bill defines Tier 4 equivalent by reference to three pollution-control technologies: selective catalytic reduction for nitrogen oxides, diesel oxidation catalyst for carbon monoxide, and diesel particulate filter control for particulate matter.
The bill also preserves the Department’s existing authority to apply or require other air-quality standards. It expressly states that nothing in the new section limits the Department’s ability to determine Best Available Control Technology, Lowest Achievable Emission Rate, Reasonably Available Control Technology, New Source Performance Standards, or National Emission Standards for Hazardous Air Pollutants, and it allows the Department to impose even stricter emission limits if warranted. In effect, the bill sets a floor for gen-set emissions at data centers while leaving broader permitting and air-pollution review authority intact.
This measure amends Title 10.1 of the Code of Virginia by adding § 10.1-1322.6, creating a specific permitting condition for data centers under the state’s environmental permitting program. It directly affects the Department of Environmental Quality’s permit issuance for new or modified data center projects and the operators, developers, and equipment suppliers associated with on-site engine-generator sets. The practical effect is to require cleaner backup generation equipment or equivalent emissions controls for covered permits issued after July 1, 2026, potentially increasing compliance costs and influencing data center design and siting decisions.
The available record shows no committee transcript or recorded vote breakdown, so there is no documented floor or committee debate to gauge detailed sentiment. Based on the enacted text, the bill appears to reflect a policy preference for tighter air-emissions controls on data center infrastructure while still preserving agency discretion to impose even stronger standards. The absence of recorded opposition or amendments in the provided materials suggests the measure moved without a documented public controversy in the supplied record.
The main policy tension is between environmental regulation and data center development. Supporters would likely view the bill as a targeted air-quality safeguard that addresses diesel emissions from gen-sets used at large data centers, while potential critics may argue it adds permitting burdens, increases costs, and could affect project timelines or competitiveness for Virginia’s data center industry. Another possible point of contention is whether the Tier 4-equivalent benchmark is sufficiently protective or, conversely, whether it is too restrictive for backup power systems that may be needed for reliability.