2025 SESSION

INTRODUCED

25104158D

SENATE BILL NO. 1448

Offered January 17, 2025

A BILL to amend the Code of Virginia by adding a section numbered 10.1-1186.7, relating to permitting requirements for resource intensive facilities, Resource Intensive Facility Fee Fund established; report.

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Patron—Stuart

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Referred to Committee on Agriculture, Conservation and Natural Resources

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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 10.1-1186.7 as follows:

§ 10.1-1186.7. Resource intensive facilities permitting requirements; Resource Intensive Facility Fee Fund established; report.

A. As used in this section:

"Fund" means the Resource Intensive Facility Fee Fund established in this section.

"Resource intensive facility" or "RIF" means any facility, or combination of facilities that in the Department's discretion effectively operate together as a facility, whose electricity demand exceeds 100 megawatts or any requiring greater than 500,000 gallons per day of water from any regulated waters of the Commonwealth that was not operating before July 1, 2027.

B. The Department shall develop a required permitting process for the construction and operation of resource intensive facilities, including such conditions and standards necessary to protect the Commonwealth's natural resources environment and the public health. The Department shall, in consultation with the Department of Conservation and Recreation, the Department of Forestry, the Department of Agriculture and Consumer Services, the Department of Historic Resources, the Department of Energy, the Department of Wildlife Resources, other agencies deemed relevant to the process, and other stakeholders, convene a regulatory advisory panel to assist in the development of any conditions and standards to evaluate projects requiring a permit for an RIF and methods to assess the cumulative impact of any project of an individual proposal by an RIF taking into account existing facilities and other proposals in the region.

C. It is unlawful for any person to operate an RIF without first having obtained a permit to operate from the Department. Any permit required by this section shall be issued by the Department only after compliance with applicable notice and hearing requirements.

D. The Department shall permit the operation of an RIF in the Commonwealth upon a finding that such facility will have no material adverse effect on the public health or environment, including impacts to forests, prime agricultural soils, historic and scenic resources, high value habitat, or threatened or endangered species, taking into account the facility's water and electricity demand and all impacts resulting from associated infrastructure, transmissions, distribution, and generation needs attributable to the operation of the RIF, and the cumulative impact of multiple RIFs operating in the same geographic region.

E. In developing the standards, conditions, and regulations or in the review of an application for a permit to operate an RIF, the Department shall give consideration to the effect of the facility on public health and the environment and establish such conditions as may be desirable or necessary to minimize adverse environmental impact. The Department shall consider whether (i) the applicant has provided adequate information to the public and interested stakeholders regarding the RIF's impacts on the environment and its consumption of natural resources; (ii) the operation of the RIF is consistent with all applicable land use ordinances in the locality in which it will be located according to the locality's governing body; (iii) the operation of the RIF would result in significant impacts to the environment or public health, including impacts to forest land, prime agricultural soils, historic and scenic resources, high value habitat, or threatened or endangered species and the cumulative impacts that may result from the operation of more than one RIF in the same geographic area; (iv) the operation of the RIF would prevent attainment of national ambient air quality standards, including the anticipated use and potential air impacts from any backup generators, on-site power generation, and renewable energy use; (v) the cooling system plan is protective of the waters of the Commonwealth; and (vi) any other related systems, deemed relevant by the Department, may negatively impact the environment or the public health. For purposes of this subsection, "prime agricultural soils" means soils recognized as prime farmland by the U.S. Department of Agriculture, and "forest land" means the same as that term is defined in § 10.1-1178.

F. The Department's regulations shall establish a schedule of fees, to be payable by the owner or operator of projects by an RIF pursuant to this section. Such fees shall be assessed for the purpose of funding the costs of administering and enforcing the provisions of this article associated with such operations, including the inspection and monitoring of such projects to ensure compliance with this section.

G. The owner or operator of an RIF shall be assessed a permit fee in accordance with the criteria set forth in the Department's regulations. Such fees shall include an additional amount to cover the Department's costs of inspecting such projects. The fees collected shall be used only for the purposes specified in this section for administrative costs and to abate impairments or impacts on the Commonwealth's natural resources directly caused by projects regulated under this section.

H. There is hereby established a special, nonreverting fund in the state treasury to be known as the Resource Intensive Facility Fee Fund. The Fund shall be established on the books of the Comptroller and shall be administered by the Director. All moneys collected pursuant to this section shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purpose of carrying out the activities of this section. The Fund shall be exempt from statewide indirect costs charged and collected by the Department of Accounts. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Director.

I. Any project shall be eligible for a permit under this section if the project is proposed, developed, constructed, or purchased by a different entity as long as such changes are reported to the Department within 30 days of their occurrence.

J. Any project by an RIF after July 1, 2027, shall be required to obtain a permit under this section.

K. No person shall erect, construct, materially modify, or operate an RIF except in accordance with this section.

L. The Department shall prepare an annual report by October 1 of each year explaining the permit status and providing a summary of each project's ability to meet the permit requirements and shall make such report publicly available on its website.

2. That the Department of Environmental Quality (the Department), shall convene an advisory panel to assist in further developing regulations regarding criteria to determine the initial standards for the sustainable development of resource intensive facilities, as defined in § 10.1-1186.7 of the Code of Virginia, as created by this act, and thresholds for significant adverse impacts as they relate to public health and natural resources. Such advisory panel shall consist of representatives from the Department of Forestry, the State Corporation Commission, the Department of Energy, the Virginia Economic Development Partnership Authority, and other relevant stakeholders, including representatives of the data center industry, manufacturers, environmental NGOs, and agricultural and forest industries. The advisory panel shall consider, but not be limited to, the following factors in determining any standards and thresholds prescribed in this act: (i) the infrastructure necessary to serve any resource intensive facility; (ii) the cost to industry for compliance; (iii) the impact to state resources and the public health; (iv) the cumulative effect of more than one resource intensive facility in an area; and (v) impacts to other public health and environmental goals and policies of the Commonwealth. Such criteria shall include reasonable actions to be taken by the applicant to avoid, minimize, or otherwise mitigate any such impacts to natural resources of the Commonwealth, but in the event that avoidance by the applicant is not reasonable, the applicant shall be afforded the opportunity to minimize or otherwise mitigate any significant adverse impacts. The Department shall adopt such final regulations to be effective no later than July 1, 2027. The advisory panel shall submit a report to the Governor and the Chairmen of the House Committees on Agriculture, Chesapeake and Natural Resources and Labor and Commerce and the Senate Committees on Agriculture, Conservation and Natural Resources and Commerce and Labor no later than December 1, 2025.

3. That the provisions of the first enactment of this act shall become effective on July 1, 2027.