Virginia became the first southern state to join RGGI (Regional Greenhouse Gas Initiative) in 2020. RGGI is a cooperative effort among northeastern and mid-Atlantic states to reduce carbon emissions by capping emissions at power plants and generating revenue for energy efficiency and climate resiliency initiatives. Joining meant Virginia would require large stationary sources of pollution, such as power plants, to pay a fee for each ton of carbon emitted, with total emissions capped.
Citing concerns over electricity costs, the Youngkin administration later directed the Air Pollution Control Board to withdraw from the program. In June 2023, the board voted to exit RGGI, and Virginia officially left the program at the beginning of 2024. Despite the departure, leaving RGGI also involves associated costs. The state’s 2024-2026 budget, finalized without a commitment to rejoin RGGI, reflects this decision.
At the end of July, regulations were published to withdraw Virginia from the Regional Greenhouse Gas Initiative (RGGI). The regulation, which was to take effect on August 30, 2023, requires that Virginia withdraw from the RGGI program at the end of this year. As expected, a legal challenge was filed immediately by the SELC.
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