Virginia set to return to RGGI by May

After years of lawsuits, rallies and legislative debates, Virginia is set to return to the Regional Greenhouse Gas Initiative.

RGGI is an 11-state partnership that imposes fees on power plants if they exceed their greenhouse gas emission limits.

In 2022, Glenn Youngkin, then the Virginia governor, withdrew the state from RGGI through an executive order — though a Virginia Circuit Court Judge ruled in November 2024 that the order was unlawful.

Nate Benforado, senior attorney with the Southern Environmental Law Center, said power plant emissions in Virginia declined 20% during the three years the state was part of the initiative. RGGI funds went to energy efficiency programs and flood mitigation projects in low-income communities across the state.

State senate Republicans like Sen. Ryan McDougle (R-Hanover) have been against membership in RGGI. They say the power companies that have to pay fees for exceeding pollution limits will pass the cost onto ratepayers. Republicans also say that pushing clean energy mandates such as RGGI goes against Democrats’ affordability agenda.

On Feb. 20, Virginia’s Democratic Gov. Abigail Spanberger signed the state’s “caboose” budget bill, which contained language requiring the state to rejoin RGGI. The caboose budget allows amendments to the main budget.

On March 2, Democrats in both chambers also passed a bill directing the state Department of Environmental Quality to reissue the needed regulation and sign a new service agreement with RGGI. That must happen within 90 days of the budget passage, which is May 21.