Repeal of RGGI marks a turning point in Virginia’s Energy Policy

In a move celebrated by Governor Glenn Youngkin, the State Air Pollution Control Board voted to repeal the Regional Greenhouse Gas Initiative (RGGI) regulation, following the Governor’s directive outlined in Executive Order 9. Youngkin argued that RGGI was a burdensome tax on families and businesses in the Commonwealth and did not contribute to pollution reduction.

A Return to Power Diversity

Before RGGI was implemented, Virginia witnessed significant growth in electricity generation and almost halved the CO2 emissions per MWh over a decade. The repeal of RGGI aims to return Virginia to these promising trends, providing a more balanced energy policy that does not unnecessarily burden its residents.

The General Assembly in 2020 adopted legislation that allowed the Air Board to adopt regulations requiring Virginia’s participation in RGGI. However, it did not mandate participation, allowing Governor Youngkin to scrutinize the initiative’s impact and decide on its termination.

Under the RGGI framework, power producers in Virginia were obliged to purchase carbon offsets from auctions managed by the interstate compact. The costs of these offsets were then passed onto power customers, impacting all households and businesses in Virginia. Moreover, it failed to incentivize power producers to reduce carbon emissions.

A Vision for Reliable, Affordable, and Clean Energy

Emphasizing the legal authority of the State Air Pollution Control Board to act on this regulatory proposal, Governor Youngkin expressed his vision for an affordable, clean, and reliable energy future for Virginians. This would entail an all-encompassing energy plan, including natural gas, nuclear, renewables, and emerging sources.

The repeal of RGGI, according to Governor Youngkin, will provide regulatory stability and prevent market fluctuations from impacting consumers. It’s a pivotal move towards realigning Virginia’s energy policy with the needs of its residents and businesses, creating a cleaner, more affordable, and reliable energy landscape.