What is RGGI?
RGGI stands for Regional Greenhouse Gas Initiative. It is a market-based cap and investment program with 11 participating Northeast and MidAtlantic states that generates new funds while reducing electricity sector greenhouse gas emissions annually to keep us aligned with our climate goals and on track for a livable future. Virginia was the first Southern coal state to join, setting a precedent that our North Carolina neighbors may soon follow. Reduction of greenhouse gas, GHG, emissions improve air quality and public health while also bringing in
desperately needed revenue to help Virginia’s families with energy bills and flood protection.
How long has Virginia participated in RGGI?
In 2020, the Virginia General Assembly adopted legislation to join RGGI and then Gov. Ralph Northam signed it. Since July 1, 2020, the budget included fiscal support for participation in RGGI.
What will RGGI proceeds fund?
50% of RGGI proceeds will fund low-income energy efficiency programs.
45% will fund community flood preparedness grants.
5% will cover administrative costs.
What are the results?
Before Virginia joined RGGI, power plant GHG emissions decreased 43% during the period 2010– 2020 due to in large part the one time replacement of coal plants with natural gas; renewable generation also contributed. After joining RGGI in 2100, emissions dropped over 30%. Since joining RGGI, Virginia has received $379 million, far exceeding $104-109 million estimated annually for the next six fiscal years.
What’s not to like about RGGI? Gov. Youngkin finds fault
Gov. Youngkin plans to withdraw from RGGI through his regulatory authority of through legislation. In March 2022 Gov. Youngkin released a report “reveals that RGGI is in reality a carbon tax passed on to families, individuals and businesses throughout the commonwealth — it’s a bad deal for Virginians,” Youngkin said in a statement… The report says that carbon
emissions in RGGI states declined by 59 percent between 2005 and 2020… “The conclusions in this report really don’t match the data,” said (SELC Nate) Benforado. “While the governor attempts to brush aside the need for RGGI, the report actually confirms the need for RGGI.”
Bottom line
Virginia must stay in RGGI. It’s good for the climate. It’s good for human health. It’s good for climate-impacted communities and low-income communities. Youngkin does not have the authority to undo a duly promulgated regulation. RGGI is a critical tool for meeting the Virginia Clean Economy Act mandate for an energy transition to a zero-carbon electrical grid by 2050.
To dig deeper
- Regional Greenhouse Gas Initiative (RGGI). https://vcnva.org/issue/rggi-virginia/
- The Regional Greenhouse Gas Initiative. https://www.rggi.org/program-overview-and-design/elements
- Youngkin administration outlines plan to withdraw Virginia from carbon market by regulation. https://www.virginiamercury.com/2022/09/01/youngkin-administration-outlines-plan-to-withdraw-virginia-from-carbon-market-by-regulation/
- Youngkin says RGGI won’t cut emissions. Critics say his own report shows he’s wrong. ‘The report actually confirms the need for RGGI.’ https://www.virginiamercury.com/2022/03/18/youngkin-says-carbon-market-wont-work-to-cut-emissions-critics-say-his-own-report-shows-hes-wrong/
- Gov. Youngkin’s Executive Order 9 and report. https://www.deq.virginia.gov/home/showpublisheddocument/13813/637829669069026180
- Virginia Joins the Regional Greenhouse Gas Initiative, Finally. https://climate-xchange.org/2020/08/12/virginia-joins-the-regional-greenhouse-gas-initiative-finally/
- Regional Carbon Pricing Initiatives. https://climate-xchange.org/regional-cap-and-invest/
- As Virginia nets another $74 million, RGGI uncertainty lingers. https://www.virginiamercury.com/2022/03/14/as-virginia-nets-another-74-million-rggi-uncertainty-lingers/