RGGI Projects for Energy Efficiency in Virginia
In 2020, Virginia passed the Clean Energy and Community Flood Preparedness Act, 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 new funds while reducing electricity sector emissions. 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 families with energy bills and flood protection.
Half of RGGI funds are directed towards low-income families for energy-efficient affordable housing and weatherization projects. Nearly 30% of Virginians are burdened by housing costs – meaning they are forced to spend 30% or more of their income on housing. Energy bills cause most of the burden: 164,000 Virginia households living below the poverty level pay about 31% of their income on energy costs, and another 179,000 pay about 17% of their income – far exceeding the 6% threshold considered to be non-burdensome.
Energy-Efficient Affordable Housing Projects
Virginia has a shortage of affordable housing by over 200,000 affordable rental units, affecting both rural and urban communities. Ensuring that affordable housing is energy efficient is an investment in the future, which helps low-income residents keep energy bills low and reduces forced moves due to unaffordable housing while also reducing climate impact from energy. consumption.
Through RGGI funds, hundreds of additional efficient affordable housing units are in development, with thousands more to come. Through just the initial round, the state has awarded 11 affordable housing grants representing 705 energy-efficient units in South Boston, Charlottesville, Albemarle, Fairfax, Henrico, and Wytheville.
The map below, provided by the Virginia Energy Efficiency Council, shows funding for the Affordable & Special Needs Housing (ASNH) program, which is fully funded through Virginia’s participation in the Regional Greenhouse Gas Initiative. These funds ensure that more energy-efficient, affordable housing is available for Virginia’s most under-served communities.
The second round of applications included $29.6 million in requests for over 30 different projects – results are expected in early 2022.
Weatherization Projects
RGGI weatherization projects reduces energy consumption, lowers energy bills for low-income households, and creates a healthier and safer living environment. RGGI prioritizes the elderly, persons with disabilities, and families with children for weatherization project funding. These projects can include sealing air leaks with insulation, caulking, and weather-stripping, repairing drafty duct systems, replacing inefficient or unsafe heating and cooling systems, and upgrading light bulbs. The service also checks for health and safety risks, including testing for carbon monoxide. Weatherization can save Virginia families an estimated $976 on electricity bills each year.
A survey of weatherization agencies in Virginia found a backlog of weatherization projects, finding almost 1 in 5 homes have been defferred. RGGI funds are the only source of funding available to fill the gap, allowing all 17 weatherization agencies in Virginia to receive funds to make critical weatherization repairs. In the first year, $15.2 million has been allocated to weatherize the approximately 1,064 homes that have been deferred in Virginia. With RGGI revenue, hundreds of home repairs and weatherization services for low-income families have been completed or are in the active pipeline.