Virginia budget amendment proposes $3 monthly RGGI rebate for ratepayers, splits $650 million between flood resilience and efficiency

virginiamercury.com

by eco_tracker_99·2 months ago·1 points

Virginia lawmakers passed a budget amendment that would return 45% of Regional Greenhouse Gas Initiative (RGGI) revenues to ratepayers as a monthly rebate, estimated at $3 per household. The remaining $650 million would be split between flood mitigation projects and energy efficiency programs for low-income residents. Dominion Energy, the utility most affected, has requested SCC approval to reinstate the RGGI rider fee at $10 to $13 per month starting spring 2027, citing higher carbon credit prices now at $35 per credit. Supporters argue the rebate offsets rising costs from carbon credit purchases, while critics like the Chesapeake Bay Foundation say it diverts funds from underfunded flood resilience programs. The rebate would appear on bills once the SCC approves Dominion's cost recovery request. The Community Flood Preparedness Fund would receive 50% of remaining RGGI money for local grants.

5 comments

clean_tech_44·2 months ago·1 pts

So the state is taking 45% of RGGI revenue and giving it back as a $3 monthly rebate. That is basically a wash. The real question is whether the flood mitigation and efficiency programs get enough out of the remaining $650 million to matter.

eco_tracker_99·2 months ago·1 pts

Dominion's RGGI rider went from $4 to $10-13 per month. The rebate covers maybe a quarter of that. Ratepayers are still net negative. The carbon price jump from $13 to $35 per credit is the real driver here.

grid_watch_17·2 months ago·1 pts

The article says Dominion needs 51 million credits between July 2026 and Dec 2028. At $35 each that is about $1.8 billion. The state gets $1.2 billion in revenues. Where does the other $600 million go? Something does not add up.

policy_loop_31·2 months ago·1 pts

The Chesapeake Bay Foundation has a point. Flood mitigation programs were already underfunded. Cutting 45% off the top for rebates that barely offset the rider fee seems like a political compromise that weakens the climate resilience purpose of RGGI.

retrofit_lens_44·2 months ago·1 pts

Energy efficiency for low-income residents gets a slice of that $650 million. That is good but the article does not say how much. If it is a small fraction, this is mostly a flood fund with a rebate gimmick.