Governor Youngkin Remains Determined to End Virginia’s Participation in the Regional Greenhouse Gas Initiative Despite Overwhelming Public Support and Proven Successes

(RICHMOND, Va.. – June 7, 2023) Today, the Virginia Air Pollution Control Board met to approve a final regulation ending Virginia’s participation in the Regional Greenhouse Gas Initiative (RGGI), a proven program with 12 member states that cuts pollution and raises investments for communities.

“The public has spoken and the success of RGGI is well documented,” said Mandy Warner, Virginia Director at Environmental Defense Fund. “Growing jobs in the clean energy economy, reducing pollution that harms human health and the environment, and investing in workers and local communities has substantial benefits. It is time that Governor Youngkin and the Air Pollution Board listens to the will of the people and provides for their future.”

This harmful and unlawful action was taken by Governor Youngkin despite overwhelming public support during a comment period initiated by his administration. The General Assembly ratified Virginia’s RGGI regulation, with certain specified changes, when it enacted the Virginia Clean Energy and Community Flood Preparedness Act in 2020. 

Of the more than 6,000 comments delivered at the March public hearing, 88% of Virginians said they opposed leaving RGGI. This opposition builds on strong pushback from the fall comment period, when 95% of Virginians said they opposed the rollback. People across the Commonwealth, including mayors, doctors, parents, faith leaders, young people and many more cited the successes and the increased costs to taxpayers that ending the program would cause.

RGGI has been operational for over a decade, cutting climate pollution from power plants in half in member states. The program uses a market-based approach that sets a total limit on pollution for the region that declines over time. Polluters must then purchase an “allowance” for each ton of pollution they produce. This compels companies to invest and innovate to reduce their pollution by switching to cleaner forms of power generation, advancing energy efficiency, creating programs to manage electricity usage and more.

“The decision to withdraw from RGGI ignores the interests of Virginia's homes and businesses and is inconsistent with clean energy trends and policies coming from the federal government,” said Warner. “Clean, affordable, reliable energy is available today, at scale – and is only accelerated by the historic Inflation Reduction Act.”

The Environmental Protection Agency has recently proposed rules to ensure fossil fuel-fired power plants operate at cleaner carbon standards nationwide. “Virginia will need to join with states across the nation to address climate change and take action,” said Warner. “Virginia should continue to lead in this area instead of taking costly steps backward.”

RGGI also provides critical funding to build climate and flood resilience in communities across Virginia. With more frequent and intense storms, Virginians are experiencing higher flood risk that threatens infrastructure, businesses and communities. In fact, the Hampton Roads region is experiencing the highest rates of sea level rise along the entire Atlantic seaboard. By 2080, nearly 1 million Virginia residents will be living in homes exposed to major coastal flooding and flood damages across the state are estimated to skyrocket to $5.1 billion annually.

RGGI has already delivered nearly $600 million in proceeds to Virginia, $100 million of which have already been used for flood resilience projects. This includes improving stormwater infrastructure and implementing other flood prevention measures without burdening taxpayers. In addition to flood resilience, RGGI investments also support energy efficiency programs for low-income Virginians, lowering energy costs for those most vulnerable. 

Leaving RGGI would have a detrimental economic impact for Virginia. Over the first ten years of the program, the RGGI states have seen energy prices fall by 5.7%, while they rose by 8.6% in the rest of the country. Clean energy is expected to be a $23 trillion market by the end of this decade and Virginia is currently ranked 10th in the nation for clean energy employment with 88,370 jobs. These industries are all poised for growth as Virginia continues to invest in its clean economy through RGGI and other programs. States that have policies like RGGI in place stand to see greater benefit of tax credits and other incentives in programs like those in the Inflation Reduction Act. Going backwards now, and after a year of high ratepayer bills hikes stemming from the state’s overreliance on natural gas, is the wrong move for Virginia.