Celebrating Virginia’s Transition to Clean Energy
The Virginia Clean Economy Act (VCEA) was passed in 2020 by the General Assembly of Virginia with the goal of achieving 100% clean electricity in Virginia. The VCEA requires Dominion Energy and Appalachian Power Company to deliver 100% clean energy by 2045 and 2050, respectively. By making this change, Virginia’s biggest electricity providers can build a modern energy economy that will create new jobs, make our planet healthier, and cost less in the long term than a dirty energy future.
Let’s break down the VCEA…
1) VCEA and Regional Greenhouse Gas Initiative (RGGI) Collaboration
The Virginia Clean Economy Act and the Regional Greenhouse Gas Initiative work hand in hand, and both are needed to achieve a thriving clean energy future where communities have healthier air to breathe. The Regional Greenhouse Gas Initiative (RGGI) is a program that requires power plant owners to pay for their pollution and the harm it imposes on Virginians by purchasing an allowance for every ton of carbon dioxide their plant emits. The amount of allowances available decreases over time, steadily decreasing emissions until fossil fuel retirements are required by the Virginia Clean Economy Act.
2) Building a Clean Energy Economy
The VCEA requires utilities to plan for increasingly more solar energy, wind energy, and battery storage. Both utilities are on track to meet those goals. These efforts have generated new jobs and significant economic development. For example, the Hampton Roads region is already seeing benefits from the construction of the Coastal Virginia Offshore Wind project. The CVOW project alone is expected to support about 900 jobs and result in over $143 million in annual economic output, $57 million in annual wages and benefits, and over $5 million in annual tax revenue during construction.
3) Prioritizing Local, Clean Energy
The VCEA incentivizes local clean energy, like rooftop solar and community solar. Rooftop solar makes use of the built environment and brings long-term bill savings to everyday households, schools, and businesses. For example, solar developers and Virginia public schools collaborated to install rooftop solar panels at Powhatan County Schools, generating clean energy for the school.
4) Reducing Energy Needed
The VCEA requires utilities to meet Energy Efficiency Resource Standards to help reduce overall energy consumption per household in Virginia.. Energy efficiency standards lower utility bills and lower carbon emissions. Every dollar invested in EERS results in twice as many jobs as fossil fuels.
Photo by Dave Parrish Photography
Over the past 5 years, Virginia has made significant progress on our path to clean energy through the VCEA, with more positive change to come.
🌎 Carbon emissions dropped 22% in the first three years of VCEA implementation while in RGGI (2021-2023).
🌎 The VCEA is projected to save $118.5 billion in fuel costs over the lifespan of clean energy project investments.
🌎 There are 118,100 clean energy jobs in Virginia.
🌎 Virginia’s Gross Domestic Product (GDP) has increased 11% since the passing of VCEA in 2020.
🌎 The VCEA is projected to save 32 lives per year across the state by 2045 and avoid up to $355 million per year in health-related costs. That’s up to $7 billion in health cost savings over 20 years.
