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. However, in 2023, Governor Glenn Youngkin withdrew from RGGI, that a court later ruled unlawful, and an appeal kept the state outside the program.
On February 20, 2026, Governor Abigail Spanberger had signed House Bill 29, directing state agencies to take the necessary steps to rejoin RGGI. The law required the Department of Environmental Quality to restore Virginia’s participation within 90 days, paving the way for reentry by late May 2026, and to update state regulations in line with the latest RGGI Model Rule by January 1, 2027. Effective July 1, 2026, Virginia and covered entities have resumed participation in and compliance with RGGI requirements.
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. During Virginia’s participation in RGGI, carbon emissions from power plants fell by 22%, while emissions increased by 31% during the period the state was outside the program. The program also generated approximately $827 million in funding to support low-income energy efficiency programs and flood resilience projects across Virginia.
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. 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/
- Governors removal of Virginia from RGGI unlawful per Floyd County Circuit Court Judge: https://virginiamercury.com/2024/11/20/judge-deems-youngkins-actions-to-withdraw-virginia-from-rggi-unlawful/
- RGGI States Welcome Virginia. https://www.rggi.org/sites/default/files/Uploads/Press-Releases/2026_04_29_VA_Welcome_Statement.pdf
- Virginia marches ahead with RGGI. https://www.selc.org/news/virginia-marches-ahead-with-rggi/
- Department of Environmental Quality (DEQ). Carbon Trading. Announcements. https://www.deq.virginia.gov/air-energy/greenhouse-gases/carbon-trading
- Virginia’s Upcoming Re-entry into the Regional Greenhouse Gas Initiative Can Reduce Household Electricity Bills. https://www.resources.org/common-resources/virginias-upcoming-re-entry-into-the-regional-greenhouse-gas-initiative-can-reduce-household-electricity-bills/
- Virginia Rejoins RGGI. https://vcnva.org/blog-virginia-rejoins-rggi/