Virginia is preparing to rejoin the Regional Greenhouse Gas Initiative (RGGI) in July 2026. This cap-and-trade program requires power plants to purchase carbon allowances, a cost that utilities typically pass through to consumers via higher monthly electricity bills. Critics argue that these carbon markets function as regressive taxes, citing data from other RGGI states and the EU Emissions Trading System. The debate centers on whether auction revenues effectively fund energy efficiency and climate resilience or simply increase costs for ratepayers.
