Photo credit: Country Lane, Clarke County. Photo by Richard Koth

In 2020, Virginia passed the Clean Energy and Community Flood Preparedness Act (HB 981 / SB 1027), allowing the commonwealth to join the Regional Greenhouse Gas Initiative (RGGI, pronounced ‘reggie’) and establishing the Virginia Community Flood Preparedness Fund (CFPF). RGGI is a market-based program with 11 participating states that generates funding for critical programs while reducing pollution from the electricity sector. This pollution reduction program drives down greenhouse gas emissions, which improves air quality and public health while also bringing in desperately needed revenue to help Virginia’s communities with flood protection and low-income residents with energy bills. RGGI raised more than $800 million from polluters and reduced power plant emissions by 20% in the first three years Virginia participated in the program. 

In July 2023, an executive order directed officials to illegally pull Virginia out of RGGI, and the state has been out of RGGI since 2024. A lawsuit was immediately filed against the state, and in November 2024, the Floyd County Circuit Court ruled that the Air Board’s repeal was “unlawful and without effect.” The state, however, had been permitted to remain out of RGGI while it appealed the ruling.

During the 2026 General Assembly Session, Virginia passed two bills (HB 397 / SB802), a “caboose” budget (Item 365 / #1s), and a forward-looking budget (Item 368 / #5c) that would make Virginia’s participation in RGGI statutorily required. In early March, the Virginia State Air Pollution Control Board and Virginia Department of Environmental Quality also withdrew their appeal of the November 2024 ruling, further easing Virginia’s reentry into RGGI. Virginia has officially rejoined RGGI as of July 1st, 2026.

RGGI worked for Virginians for three years, steadily and cost-effectively reducing power plant pollution by 20%. With Virginia back in RGGI, families and communities will benefit from lower air pollution and revenue for the Community Flood Preparedness Fund and Low-Income Energy Efficiency programs. The most vulnerable in our communities will benefit the most. Rejoining RGGI is a step in the right direction toward improving public health outcomes and securing an equitable clean energy future. RGGI is a solution to help reduce costs and the impact of inflation for Virginians, which has reached a three-year high.

Climate change is already impacting Virginians, leading to extreme weather events that have devastated communities. Virginia’s power plants contribute to this global problem, and burning fossil fuels directly harms the health of nearby communities. For example, Dominion’s most recent long-term plan, which calls for a large-scale buildout of gas plants in Virginia, would impose $7.4 to $13.9 billion in health harms on nearby communities if implemented. RGGI is a proven solution that will keep Virginia on track to meet its climate goals, improving air quality and public health. RGGI ensures that utilities across the state steadily reduce their reliance on fossil fuels, including “merchant” power plants not currently covered by the Virginia Clean Economy Act, while tackling the impacts of climate change.

Corporate greed, data center development, and over-reliance on fossil fuels are the major drivers of higher energy bills. Dominion Energy raised rates in 2026 and has announced additional increases in 2027. Data centers operate twenty-four hours a day, consuming the same amount of energy as a small city. In 2023, data centers accounted for about 26% of the electricity supply in Virginia. This massive energy use raises system-wide costs, resulting in higher utility costs for households. RGGI is intended to reduce utilities’ reliance on expensive fossil fuels and incentivize utilities to make clean and more cost-effective choices in energy generation.

While 25% of Virginia households are energy insecure, barriers prevent customers from taking full advantage of energy efficiency to lower their bills. Higher prices are impacting families’ ability to provide necessities like food, housing, and health insurance. This comes at a time when Virginians are facing higher energy, utility, and gas prices. At the same time, solar and storage are the cheapest forms of energy to build. Investments in clean energy and energy efficiency improve energy security and create a stronger, more reliable grid. Renewable energy resource integration reduces blackout risks during extreme weather events. RGGI ensures that electric utilities steadily reduce harmful air pollution and impacts on Virginians, and by reducing utility reliance on fossil fuels, it leads to greater energy independence and security and steadier, more predictable customer bills.

Keep updated with our RGGI page for the latest news in our Commonwealth.