DC-to-DC Power Wrap: Recon 3.0, DC Headwinds, Nuke Loans, & Polestar Out

Research evidence excerpt

DC-to-DC Power Wrap: Recon 3.0, DC Headwinds, Nuke Loans, & Polestar Out

TD Securities (USA) LLC POLICY NOTE

June 26, 2026

■WRG Energy Transition & Sustainability DC-to-DC Power Wrap: Recon 3.0, DC

Headwinds, Nuke Loans, & Polestar Out

John Miller THE TD COWEN INSIGHT

202 868 5306 ■House Freedom Caucus Recon 3.0 priorities include elimination of remaining IRA credits

john.p.miller@tdsecurities.com

■VA passes new data center electricity consumption tax while key House Dem calls for a

Cooper Pryde

moratorium

212 468 7804

cooper.pryde@tdsecurities.com ■DOE offering $17.5B for long lead time Westinghouse nuclear parts

■EV OEM Polestar to exit US due to DOC's anti-PRC rule

Sector Impacts: Utilities, Industrials (BTM Tech & Nuclear), Auto OEMs

What Mattered This Week?

Congress – Recon 3.0 – House Freedom Caucus (HFC) outlined Recon 3.0 expectations

(HERE). We note the full elimination of all remaining IRA clean energy tax credits (termed

the "green new scam") is HFC's top ask. With a short calendar and ongoing intra-Rep

disagreement on the need for a reconciliation package, pathways for a successful Recon 3.0

effort are narrow. We remain of the view that if Recon 3.0 does move forward, additional post-

OBBBA clean energy tax credit cuts are unlikely.

Energy Infrastructure - Data Center Updates - Two key highlights:

■VA Consumption Tax - Last minute VA budget agreement implements a new $0.011/kWh fee

on data center electricity consumption, capped at $600M (HERE). We expect further tweaks

to tax in next session and note that data centers remain net beneficiaries of VA policies with

~$2B in annual sales tax breaks.

■Moratorium Call - House E&C Ranking Member Pallone (D-NJ), a moderate, shocked the

wider policy world in calling for a nationwide AI data center moratorium (HERE).