ROUNDUP: Governor’s RGGI Report

On Tuesday, March 15 Governor Youngkin released the Regional Greenhouse Gas Initiative report as issued by the governor’s executive order 9. The report provides a cherry-picked analysis to support Youngkin’s partisan effort to repeal Virginia’s participation in the Regional Greenhouse Gas Initiative – even though 67% of Virginians support our participation in RGGI.

Lowering our Carbon Emissions

Despite its attempt to negate the necessity of RGGI, the report actually confirms that RGGI works. RGGI is a key policy to reduce carbon emissions and meet Virginia’s goal of zero-carbon electricity by 2050. The report confirms:

“RGGI region has a long track record of emission reductions since the beginning of the program.”
“[A]n emission reduction program or combination of programs will be required to meet the Commonwealth’s climate goals of the VCEA and the 2045 net-zero carbon emissions goal. In the absence of any such program, emissions may not reduce sufficiently to achieve these goals.”
Prior to joining RGGI, Virginia’s emissions remained constant while RGGI states’ emissions dropped by 30% (2010-2020).

Lowering energy costs through rate reform, not RGGI

The Governor’s main objection seems to be his belief that Dominion lacks a strong incentive to reduce its emissions because it is permitted to pass RGGI costs to customers. It is true that Dominion has a history of overcharging customers. Since 2017, the State Corporation Commission estimates that overcharges to ratepayers amounted to over $1.1 billion.

However, Governor Youngkin’s big misconception is thinking that repealing RGGI will fix utility overcharges and lower energy costs. Every year, VCN and our partners advocate for rate reform legislation to ensure electric rates are just and fair. Dominion has a long-standing problem of overcharging customers, but repealing RGGI doesn’t fix that. If Youngkin is truly interested in lowering energy prices, he would support the removal of state electric utilities’ manipulation of RGGI to pad their profits.

Virginia Community Flood Preparedness Fund Grant Locations with Senate district boundaries.

RGGI is the sole funding source for Virginia’s Community Flood Preparedness Fund. The map above shows the localities that received funding from Grant Rounds 1 & 2.

RGGI Benefits the Whole Commonwealth

The report’s most fatal error is the failure to include the program’s current and future benefits: in pollution reductions, health benefits, and RGGI investment benefits. Half of RGGI proceeds support low-income energy efficiency programs and affordable housing projects across the State. RGGI is also the sole funding source for the Community Flood Preparedness Fund, which provides grants to localities to create and implement flood resilience planning and projects.

At the end of the day, RGGI cannot be repealed through executive action or regulation. Virginia’s participation in RGGI is required by law – passed in the 2021 General Assembly session and re-confirmed this session with the defeat of many RGGI-repeal bills.

Visit our RGGI issue page to learn more about the Regional Greenhouse Gas Initiative and how Virginians across the state are benefiting from this program.

Learn More About RGGI

Partner Statements

Virginia’s conservation leaders quickly came to RGGI’s defense. Please check back as we continue to gather VCN partner statements.

Last updated March 17th, 2022.

Nate Benforado

Senior Attorney of the Southern Environmental Law Center

“The conclusions in this report really don’t match the data. While the Governor attempts to brush aside the need for RGGI, the report actually confirms the need for RGGI. The report appears designed to support a partisan repeal effort rather than to provide an objective look at available information. In the past, the agency has taken the stance that cap and trade programs like RGGI are a proven, cost-effective way to reduce carbon pollution. If Governor Youngkin is concerned about Dominion being better incentivized to reduce its emissions, let’s work on that. But repealing RGGI doesn’t fix the long-standing problem of Dominion overcharging its customers, not just for RGGI compliance but for many projects. Repealing RGGI only helps monopoly utilities and the fossil fuel industry go back to polluting the Commonwealth’s air without having to take into account the tremendous costs greenhouse gases have on Virginians.”

Michael Town

Executive Director of Virginia League of Conservation Voters

“Governor Youngkin continues to play partisan games instead of addressing serious issues here in Virginia. It’s clear that in doing the bidding of the fossil fuel industry and big polluters, Youngkin and his coal lobbyist advisor, Andrew Wheeler, are out of touch with voters in the Commonwealth, who by wide margins, recognize the impact climate change is having on our day-to-day lives and support efforts to address this crisis, including our membership in RGGI. This program works, and is already producing tangible results for Virginians, by protecting vulnerable communities from climate change-driven flooding and sea level rise, and by helping reduce energy burdens for our most vulnerable citizens, all while cutting harmful pollution that threatens our health and puts us at even more risk. If Youngkin wants to continue playing games with climate action and environment protection, he does so at the disservice of each and every Virginian that calls this state home.”

Walton Shepherd

Virginia Policy Director, Climate & Clean Energy Program

“Virginia’s year-one RGGI benefits are impressive—and no surprise. The over 1 in 5 American states elsewhere benefitting from RGGI for over a decade cut their carbon pollution in half and secured billions of dollars in public health benefits from cleaner air. And that while also driving billions in cost-of-living reductions, through RGGI-funded energy efficiency upgrades in homes and businesses.

And don’t believe the haters: electricity prices in those RGGI states have fallen. That’s what happens when you invest in energy efficiency and zero fuel-cost renewable energy, rather than in costly fossil fuels, and that’s why we’re already seeing RGGI’s success in Virginia.

And yet, you wouldn’t hear any of these tangible benefits in the governor’s fact-challenged, polluter patronage RGGI “report,” as its the core of Gov. Youngkin’s ultra-partisan attempt to take Virginia backward on our climate, our health, and our economy….” Read more here.

ROUNDUP: Governor’s RGGI Report

ROUNDUP: Governor’s RGGI Report

Lowering our Carbon Emissions

Lowering energy costs through rate reform, not RGGI

RGGI Benefits the Whole Commonwealth