Virginia has officially rejoined the Regional Greenhouse Gas Initiative (RGGI), the multi-state carbon cap and trade program, after a yearslong political battle. The reentry, signed into law by Governor Spanberger, means power plant operators must buy allowances for their carbon dioxide emissions, with the allowance cap shrinking over time to drive down emissions. During its first stint in RGGI, Virginia raised over $786 million for flood resilience and home weatherization programs. A key change this time is a new rebate mechanism. Lawmakers passed a budget amendment directing 45% of RGGI auction proceeds to customer bill credits, aiming to offset the higher monthly charges that Dominion Energy customers will see. Dominion proposed a rider of $13 per month for a typical household using 1,000 kWh, up from roughly $4.43 before Virginia left the program in 2023. The remaining 55% of proceeds will still fund flood preparedness and weatherization, but some environmental advocates worry the rebate will drain money from climate resilience programs.
