Virginia rejoins Regional Greenhouse Gas Initiative with new bill credit to offset costs

RICHMOND, Va. — Virginia has officially rejoined the Regional Greenhouse Gas Initiative, known as RGGI.

RGGI limits the amount of carbon dioxide power plants can emit, requiring them to purchase allowances through quarterly auctions. In Virginia, money raised through those allowances goes toward flood preparedness and energy efficiency programs — similar to how the $828 million raised through allowances was used the last time Virginia was in RGGI.

Gov. Abigail Spanberger highlighted the return on investment the program provides.

"Every dollar invested in energy conservation returns $2-$4 in utility bill savings. Every dollar invested in flood protection saves $6 in future damage costs," Spanberger said.

New this time around, lawmakers are rolling out an additional incentive: a RGGI credit, which was added to the state budget passed Monday.

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"I'm also excited about the RGGI credit, which is a way to make sure, in fact, the benefits of rejoining RGGI is felt by every ratepayer and small business across the Commonwealth," Spanberger said.

The credit is designed to offset the monthly $13 charge that comes with rejoining RGGI. Spanberger says estimates suggest power bills could drop as much as $3 per month as a result of the new credit.

Chief Energy Officer Josephus Allmond said the credit is intended to protect households and businesses from added costs.

"The RGGI credit will insulate our families and small businesses while leaving record levels of investment in energy efficiency and resilience funding. We are using this program to lower the burden for those who need it most," Allmond said.

Not everyone supports the move. Senate Minority Leader Ryan McDougle argued the program amounts to an added tax on residents.

"RGGI is just a tax on Virginians. It should not be in place," McDougle said. "The Virginia Clean Economy Act puts provisions in place that does not allow us to focus on what is the cheapest, most economical and reliable form of energy."

Supporters of RGGI say the program represents a long-term investment for Virginia's communities.

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