On January 15, 2022, the new Virginia governor, Glenn Youngkin (R), signed an executive order to initiate the state’s withdrawal from the Regional Greenhouse Gas Initiative (RGGI).[1] RGGI is a market-based program that sets limits for carbon emissions from power plants in 11 states[2]. Under RGGI, utilities sell carbon allowances during auctions, and the proceeds are given to participating states for clean energy, storm protection plans, or other climate-related programs. Virginia joined RGGI in 2020 through the Clean Energy and Community Flood Preparedness Act.

Governor Youngkin cited the program’s effects on energy prices as a motivator for the action. According to the executive order, which was signed on his first day in office, utilities are allowed to pass on the costs of purchasing allowances to their customers, leading to higher bills for ratepayers. The new executive order directs the Department of Environmental Quality and the secretary of natural and historic resources to deliver a report within 30 days that evaluates the costs and benefits of participation in RGGI. The executive order also calls for the development of a proposed emergency regulation to repeal RGGI-related rules set by the Air Pollution Control Board. According to the order, Virginia will notify the nonprofit corporation that runs RGGI of the state’s actions and Governor Youngkin’s intention to withdraw from RGGI through legislative or regulatory action.

[1] https://www.governor.virginia.gov/media/governorvirginiagov/governor-of-virginia/pdf/74---eo/74---eo/EO-9--RGGI.pdf

[2] Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Virginia.