AGP Executive Report

Energy Regulation: Gov. Abigail Spanberger says she’ll intervene in the $67B Dominion–NextEra merger, pushing for answers on affordability, workforce impacts, and whether Virginians would be asked to pay more. Data Centers & Grid Costs: Virginia regulators ordered Dominion to develop a policy that assigns transmission upgrade costs directly to data centers and other large-load users, aiming to stop residential customers from subsidizing commercial expansion. Local Business Growth: Waynesboro is seeing a fresh wave of tenants and new grant opportunities, with the Virginia Metalcrafters Marketplace adding makers and the city offering matching funds for storefront and tourism projects. Manufacturing/Defense: HII says the Navy awarded about $76.6B in contract modifications covering additional Virginia- and Columbia-class submarine work, including shipyard infrastructure. Aviation: The FAA ordered crack inspections for hundreds of Boeing 737 MAX jets, with rules taking effect Sept. 10. Agriculture/Environment: A Virginia hemp business story highlights how new THC restrictions are triggering lawsuits from operators trying to avoid sudden compliance changes.

Data Centers & Grid Costs: Virginia regulators ordered Dominion to draft a policy shifting certain transmission and substation upgrade costs onto data centers for projects built exclusively for them, aiming to keep households and small businesses from absorbing the bill. Local Governance: Spotsylvania supervisors are weighing support for a statewide moratorium on new data centers, while Aurora council members in Colorado are pushing a six-month pause to study zoning, water, and power impacts. Aviation Safety: The FAA ordered inspections for hundreds of Boeing 737 MAX jets after crack reports, covering 471 planes across specific 737-8/9/8200 variants. AI Infrastructure: Runware launched “Sonic Inference Pods,” modular containerized AI inference data centers designed to bypass long traditional build and grid-connection timelines. Community & Economy: Madison County will host an Aug. 11 economic development town hall on budgets and a potential 1% sales tax for school repairs. Agriculture: Tazewell County Fair marks 158 years, highlighting antique farm equipment and livestock events.

Energy Prices Watch: GasBuddy data shows Virginia fuel prices easing in the week ending Aug. 1, with standout lows like diesel at $5.29 in Fairfax city, regular at $3.47 in Emporia, regular at $3.69 in Norton, and E85 at $3.99 in Williamsburg. Data Center Policy: Virginia regulators are moving to require data centers to pay direct transmission costs, while broader national reporting highlights how AI-driven construction spending is surging and how supply-chain bottlenecks (including memory manufacturing) are locking in overseas dependency. Defense & Industry: DARPA is seeking industry input on a next-generation hypersonic cruise missile, and the Pentagon is also asking defense makers what paperwork is slowing production. Agriculture & Weather: Virginia Farm Bureau hosted a listening session for its Farm & Forest Prosperity Plan, as growers weigh uneven peach crops after spring freezes. Local Workforce/Community: New River Valley Home Builders Association brings back Touch-A-Truck NRV to spotlight trades and workforce needs.

Energy & Regulation: Virginia regulators ordered new large-load data centers to pay for transmission infrastructure built exclusively for them, shifting costs away from residents and small businesses and setting a precedent for how Dominion Energy allocates grid upgrades. Utility M&A Watch: Gov. Abigail Spanberger says she will intervene in the Dominion–NextEra merger review, arguing Virginians deserve answers as the SCC weighs affordability and conditions. Defense & Shipbuilding: The Pentagon reclassified 19 Virginia-class attack submarines as guided-missile subs (SSGNs) with Virginia Payload Module missile capacity, a move analysts say reshapes Pacific strike posture. Navy Readiness: Navy medical leaders conducted the first afloat Operational Readiness Evaluation for an expeditionary medical unit aboard USNS Point Loma, validating shipboard training and mission capability. Local Business & Growth: Bubba’s Ice Cream owner Jon Arnone is pursuing a second Danville location near Caesars Virginia, with an IDA agenda item slated for Aug. 11. Consumer Alerts: The BBB issued an “F” rating for Crown Coins Casino after hundreds of complaints about unpaid winnings, and warned shoppers to be cautious with Ridgewell Retail. Agriculture Under Pressure: Botetourt County dairy farms face a “perfect storm” of drought, rising costs, and development pressures that could force sales. Public Safety/Infrastructure: Severe storms left thousands without power across Central Virginia, with outages reported by Dominion Energy. Sales Tax Holiday: Virginia’s three-day tax-free weekend runs Aug. 7–9 for school supplies, clothing/footwear, select energy-efficient products, and certain emergency items.

Dominion-NextEra Merger Fight: Gov. Abigail Spanberger says she’ll formally intervene in the $67B Dominion Energy–NextEra deal before the State Corporation Commission, aiming to scrutinize impacts on Virginia electric bills, jobs, and the state’s energy future. Data Center Pressure in Virginia: Regulators and local leaders keep pushing back as energy and transmission costs become flashpoints, with new SCC actions requiring data centers to cover dedicated grid upgrades and transmission expenses. Public Safety & Health: A study tied xylazine scheduling to a rise in medetomidine detections in the illicit drug supply, adding fuel to the debate over supply-side drug controls. Transportation & Infrastructure: Two new I-81 ramp extensions in the New River Valley are now open, including a rock-drape safety feature designed to reduce falling-rock risk. Local Business & Community: A Virginia hemp lawsuit challenges new THC restrictions, while a franchisee’s Chapter 11 filing could force closures of Moe’s locations including one in Virginia. Back-to-School Savings: Virginia’s sales tax holiday runs Aug. 7–9, covering qualifying school supplies, clothing, and select emergency and energy-efficient home items.

Dominion-NextEra Power Fight: Gov. Abigail Spanberger is intervening in the SCC’s review of the $67B Dominion Energy–NextEra merger, arguing it’s about energy affordability and whether the combined utility can meet Virginia’s growing needs. Data Center Cost Shifts: The SCC ordered data centers to cover transmission infrastructure costs, following Spanberger’s push to stop families and small businesses from footing the bill. Hemp vs. Virginia Rules: Hemp businesses sued in federal court to block new THC limits that could make most products illegal starting Aug. 15, with owners warning they can’t survive the repackaging and cost hit. Chesapeake Bay Fisheries: The Atlantic menhaden board advanced draft addendum options that could cut the industrial harvest by up to 50%, with Virginia the lone no vote. Local Development: Winchester’s North End mixed-use plan, Fairmont Greens, is back on the table after years stalled. Public Safety & Health: Virginia Beach launched a jail-based competency restoration program to speed mental health evaluations and reduce transfers to state hospitals. Energy & Everyday Costs: Gas prices stayed volatile but mostly eased in parts of Virginia, with multiple counties reporting week-ending Aug. 1 lows.

Data Centers & Power Costs: Virginia regulators ordered data centers to pay for new transmission infrastructure, adding fuel to the backlash over electricity and water strain as residents and lawmakers push for tighter limits. State Energy Oversight: The SCC also directed Dominion to develop a policy shifting transmission costs to data centers, while Gov. Spanberger said she’ll intervene in the Dominion-NextEra merger, citing rate and job concerns. Legal Fight Over Transmission: Valley Link opponents are gearing up for a potential court battle after the SCC review of the proposed 765-kilovolt line, with organizers urging residents to build a strong record now. Drought Relief for Farmers: USDA expanded Virginia’s primary natural disaster area designations for drought, including Bland, Craig, Floyd, Giles, Montgomery, Pulaski, Roanoke and Russell, opening more assistance for local farms. Public Health Leadership: Erica Schwartz was confirmed as the next CDC director, taking over an agency facing distrust and political pressure. Workforce & Industry: HII signed performance-based production agreements with Path Robotics and GrayMatter Robotics to accelerate advanced automation across U.S. Navy shipbuilding. Local Business & Community: Charlottesville’s Holiday Dr. homeless shelter progress moved toward an emergency opening Sept. 1, with staffing and operating costs now in focus.

Data Centers & Grid Costs: Virginia’s State Corporation Commission ordered data centers to pay for dedicated new transmission infrastructure, a move Spanberger says could save ratepayers “hundreds of millions of dollars,” as residents keep pushing back over power bills and local impacts. Local Legal Fight Over Power Line: Loudoun County School Board asked the Virginia Supreme Court for permission to file another reply in its bid to halt Dominion’s Golden-to-Mars Route 3A line across school property while the appeal plays out. Community Pushback on Development: Henry County residents packed a supervisors meeting opposing data centers, citing water use, noise, environmental effects, and long-term farmland impacts; Wythe County also released a draft zoning ordinance as data-center plans reshape local debate. Energy Policy Ripple Effects: Across the country, Texas Gov. Abbott paused new data center approvals pending audits, while regulators and lawmakers elsewhere weigh how to spread grid costs fairly. Food Safety: A salmonella outbreak tied to Sinaloa jalapeños has sickened people in 27 states; Chipotle and Qdoba removed the peppers. Workforce & Education: JMU professor Philip Frana says employers want AI literacy plus human judgment, warning against “cognitive offloading.” Public Health & Consumer: Virginia hemp businesses sued over a new THC retail restriction set to take effect Aug. 15.

VDOT Roundabout Build: Pulaski County is starting a single-lane roundabout at Route 611/643/1120, with road realignments, drainage work, and a Route 1120 access shift beginning Aug. 17; flaggers will run weekdays with peak-hour pauses. Advanced Manufacturing Jobs: Virginia Steel and Fabrication will invest $3.6M in Bland County to automate and expand, creating 52 new jobs. Grid & Data Center Pressure: Loudoun supervisors delayed Dominion’s Golden Substation vote to Sept. 1, seeking better screening and landscaping for the 500-kilovolt facility. Transmission Line Reconsideration: Two Loudoun-area lawmakers asked the Virginia SCC to revisit Dominion’s Golden-to-Mars Route 606 alternative after new federal-property discussions. Drought Relief for Farmers: USDA expanded Ninth District primary natural disaster designations, adding Bland, Craig, Floyd, Giles, Montgomery, Pulaski, Roanoke and Russell for drought assistance. Cybersecurity for Water Systems: The FBI urged water utilities to boost defenses after a wave of cyberattacks across multiple states. Public Safety Campaign: Virginia DMV launched its first cannabis-impaired driving prevention effort, “Relaxxxxx, Don’t Drive High.” Broadband Expansion: Henry County selected ZiTel to replace RiverStreet Networks and finish its countywide broadband build. Defense Innovation: ONR will host Innovation Industry Days Sept. 21–25 in Arlington to match industry with Navy/Marine Corps tech needs. Naval Shipbuilding Automation: HII and Ingalls advanced intelligent welding automation pilots tied to U.S. Navy production. Local Infrastructure Funding: Henrico County is set to receive about $99M for 26 transportation projects under VDOT’s Six-Year Improvement Program.

Data Centers & Power Policy: Texas Gov. Greg Abbott ordered a pause on new data center grid connections, directing audits of planned projects after ERCOT warned demand could double by 2032—about 90% tied to data centers—while local opposition grows. Virginia Politics: Virginia Democrats picked establishment nominees in key House primaries, with Shannon Taylor set to challenge Rob Wittman in VA-1 and Elaine Luria winning VA-2 for a rematch with Jen Kiggans. Local Infrastructure & Safety: Fairfax County is seeing pedestrian and vulnerable road user deaths at alarming levels, renewing pressure for faster roadway fixes. Energy & Community Pushback: U.S. Rep. Don Beyer asked Fairfax planners to deny Dominion’s Edsall Rd substation permit tied to a nearby data center campus, arguing the scale is incompatible with surrounding neighborhoods. Tech & Research: George Mason University computer scientist Ziyu Yao won an NSF CAREER grant to improve how AI code-generation models can be interpreted and made safer. Defense & Industry: HII expanded welding automation at Ingalls Shipbuilding through a partnership with HD Hyundai Heavy Industries.

Data Centers & Energy Policy: Virginia’s data-center politics stayed hot as Botetourt County moved to create an independent commission to assess a proposed Google campus, while other coverage highlighted how developers are paying “impossible prices” for land in Northern Virginia and how housing affordability is getting squeezed. Regulatory & Community Impact: Texas signaled a broader slowdown by pausing new data-center construction pending audits of power and water use, a move that mirrors growing scrutiny over noise, grid strain, and groundwater. Trade & Tariffs: A coalition of 25 states, including Virginia, sued the Trump administration over new “forced-labor” tariffs, arguing they’re a workaround after the Supreme Court struck down earlier tariff authority. Cyber & Identity Protection: Lawmakers pushed to extend lifetime identity protection for OPM breach victims as coverage also flagged ongoing cyber-security workforce gaps. Agriculture & Wildlife: USDA awarded Virginia funding to expand the state’s Elk Management Zone, including reclaimed mining land. Local Business: K9 Resorts announced a new Sterling, Va. pet hotel opening this fall.

Virginia Defense & Shipbuilding: The U.S. Navy is reclassifying 19 planned Virginia-class submarines with the Virginia Payload Module from “fast-attack” to “guided missile” boats, reflecting expanded strike capacity. AI Infrastructure & Data Centers: Virginia’s data-center boom keeps colliding with community pushback—residents and local officials are questioning power, water, noise, and heat impacts, while developers argue the projects are essential for the AI economy. Tariffs in Court: A coalition of 25 states, including Virginia, sued the Trump administration over new tariffs, calling them an illegal pretext to replace taxes struck down by the Supreme Court. Energy & Offshore Wind: Dominion Energy says its Coastal Virginia Offshore Wind project is past 80% and is generating power, but the completion target slips to end-2027. Agriculture & Rural Health: RFK Jr. toured a Danville hydroponics lab studying how to boost micronutrients without chemicals, aiming to improve rural access to healthier food. Public Safety: Loudoun County investigators say copper wire was stolen from a data center construction site; three suspects were arrested and two remain at large.

Data Center Power Costs in Virginia: A new client alert explains Virginia’s HB 30 compromise: it keeps the sales tax exemption for data centers but adds a first-of-its-kind energy consumption tax of $0.011 per kilowatt-hour, effective July 1 and set to expire after the two-year budget cycle, alongside broader energy affordability steps. Grid & Ratepayer Pressure: Dominion Energy says it has added more than 5GW of contracted data center load to its pipeline and notes rare grid disturbances tied to data center disconnects, raising the stakes for how utilities and regulators allocate upgrade costs. Groundwater Scrutiny: Two Virginia state senators are pushing for a special session after a DEQ report warned newer industries like data centers could strain groundwater, citing potential withdrawals of millions of gallons per day. Local Industry Hit: Virginia-based Smith-Midland won a $1.7M contract to make precast utility vaults for a Louisiana data center project, underscoring how Virginia suppliers are feeding the buildout. Workforce & Training: Virginia Agriculture in the Classroom is accepting grant applications (up to $500) to fund hands-on ag learning for the 2026-27 school year, with a deadline of Oct. 13. Tech Talent Shift: Coverage from VCU and other campuses highlights a growing push for AI literacy minors as entry-level software hiring cools and employers demand basic AI skills.

Data Centers in Virginia: A Virginia state senator is pushing for an immediate moratorium on data center approvals and development, arguing the state is still figuring out environmental, health, and power-grid rules as residents demand answers. Energy Costs: Utilities are seeking major rate hikes nationwide, and the report suggests most consumers won’t see relief soon—fueling pressure to target large energy users like data centers. AI Workforce & Education: At Virginia Commonwealth University and other colleges, the AI boom is reshaping hiring expectations and driving more students into AI literacy, including minors and new requirements outside computer science. Construction & Tech Jobs: UVA is tied to biomedical research grants, while broader coverage highlights how AI is pulling more companies into construction and engineering work. Regional Business Spotlight: A Delmarva engineering and consulting firm was selected for a national Bloomberg Television/CNBC segment, spotlighting its growth across Delaware, Maryland, Virginia, and beyond. Public Safety: A fiery two-vehicle crash on the George Washington Parkway left two people critically injured, with the incident under investigation.

AI & Industry Events: Ai4 2026 opens Tuesday in Las Vegas with Geoffrey Hinton and Andrew Ng headlining, as the enterprise AI conversation shifts from pilots to governing and auditing agent decisions. Public Safety: Two people were critically hurt in a fiery, two-vehicle crash on Arlington’s George Washington Parkway early Sunday; investigators are still sorting out what happened. Housing & Development: Transwestern plans about 69 townhomes at 375/475 M St. SW, with 15% affordable under DC inclusionary zoning, while the Long Bridge project continues with utility relocations and major ramp impacts into 2028. Health: Virginia’s cyclospora count rose to 126 cases, tied to recalled Marketside iceberg lettuce sold at Walmart. Life Sciences: UVA is involved in three Virginia Catalyst grants totaling $2.4M for biomedical products and research. Energy Policy: Virginia re-enters RGGI, adding an estimated $13/month bill charge while channeling allowance revenue into energy-efficiency programs. Agriculture & Food: Virginia Agriculture in the Classroom is accepting educator grant applications (up to $500) ahead of the Oct. 13 deadline, and National Farmers Market Week runs Aug. 2–8. Workforce & Tech: A Virginia training push highlights how data center demand is pulling people into skilled trade careers.

Data Centers & Power Costs: Virginia regulators are revisiting who pays when data centers trigger expensive transmission upgrades, with residents in Prince William County saying they’ve been stuck with the bill for years while Dominion seeks billions in new grid costs. Water Stress: A new Virginia DEQ groundwater report warns aquifers east of I-95 are constrained and could struggle with additional industrial withdrawals, prompting calls for a special session to rein in use. State Energy Planning: Gov. Abigail Spanberger’s administration is gathering public input on a new 10-year energy roadmap aimed at hitting 2045 net-zero goals, with a public meeting set in Petersburg. Moratorium Push: Virginia lawmakers are backing a statewide data center moratorium as concerns grow over water, electricity, and grid reliability after recent high-profile power disruptions. Local Transparency Fight: In Franklin County, residents are pressing for answers about “Project Flash,” citing FOIA-linked records and alleged NDA-driven secrecy around zoning discussions. Workforce & Training: A guest perspective argues Virginia should include skilled workers in the data center debate, while broader coverage highlights tech firms funding electrician apprenticeship pipelines. Business & Innovation: UVA’s $350M biotech facility is advancing, with plans to fit out about half the space initially to adapt as research priorities shift. Consumer Safety: Publix expanded a recall of GreenWise frozen blueberries and mixed berries due to potential E. coli O145 contamination, with shipments including Virginia. Auto Sales: Hyundai Motor America reported record July sales, driven by strong hybrid demand.