Virginia Rejoins Clean Energy Program After $830M Exit

Virginia is coming back to a clean energy program that put hundreds of millions toward protecting communities and cutting pollution costs.

Attorney General Jay Jones filed a motion Thursday that clears the way for Virginia to rejoin the Regional Greenhouse Gas Initiative, a 10-state partnership that makes power plants pay for their carbon emissions. The state had been part of RGGI since 2021, generating $830 million for energy efficiency programs and flood preparedness before withdrawing in 2023.

Governor Abigail Spanberger backed the return in her first major speech this week. "Withdrawing from RGGI did not lower energy costs," she said. "In fact, the opposite happened."

RGGI works by requiring electricity producers to buy allowances for carbon emissions above set limits. Those limits shrink each year, encouraging companies to shift toward cleaner energy. The money collected goes back to states to fund programs that help residents.

Before Virginia left, half the revenue went to energy efficiency programs that helped families lower their bills. Another 45 percent funded flood protection projects, with 5 percent covering administrative costs.

The withdrawal happened after former Governor Glenn Youngkin called RGGI a "regressive tax" and pulled the state out in 2022. But a judge ruled last November that the exit was illegal because state law required Virginia's participation. Only the legislature could change that, not the governor alone.

The Ripple Effect

Virginia's return matters beyond state lines. The program covers independent power producers who sell electricity across the regional grid, meaning cleaner air benefits extend to neighboring communities.

Democratic lawmakers are strengthening the language requiring participation, changing "is authorized to" join RGGI to "shall" join. Delegate Charniele Herring, who spent two years fighting to rejoin, saw her legislation advance through committee this week.

Environmental attorney Nate Benforado pointed to the health benefits of gradually shifting from fossil fuels to renewable energy. The program reduces both carbon emissions and other pollutants that affect air quality.

The state aims to reach zero emissions allowances by 2050. Meanwhile, the revenue will restart flowing to energy efficiency and flood protection programs that directly help Virginia families.

Virginia joins its partners in proving that environmental protection and economic benefits can work together.