Virginia will rejoin the Regional Greenhouse Gas Initiative, Spanberger says

Kate Seltzer, The Virginian-Pilot on Jan 20, 2026

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NORFOLK, Va. — Virginia will rejoin the Regional Greenhouse Gas Initiative, the multistate coalition that aims to reduce the use of fossil fuels as an energy source, Gov. Abigail Spanberger told lawmakers Monday.

“This is about cost savings,” she said in an address to the Virginia House of Delegates and Senate. “RGGI generated hundreds of millions of dollars for Virginia — dollars that went directly to flood mitigation, energy efficiency programs, and lowering bills for Virginia families who need help most. Withdrawing from RGGI did not lower energy costs. We have seen them rise. In fact, the opposite has happened — it just took money out of the pocket of Virginians. It is time to fix that mistake.”

Virginia left RGGI in 2023 under former Gov. Glenn Youngkin, who argued the compact had increased energy costs for Virginians.

The General Assembly passed legislation in 2020 that entered Virginia into the regional compact, which requires energy producers to pay for each metric ton of carbon dioxide pollution they produce through a system of limited allowances. Those allowances are sold at regional auctions, and states can choose to spend the money it raises as they choose. In Virginia, the money was split, with half going toward energy-saving projects for low-income families and the other half for the Community Flood Preparedness Fund.

In Hampton Roads, localities historically benefited from grants awarded through the flood fund, with money paying for items such as stormwater system upgrades and floodwall construction. Now, that money comes from the state’s budget. Norfolk and Virginia Beach have asked the state to commit $200 million to the fund in the budget.

Youngkin took steps to begin the process of leaving RGGI immediately, writing in a January 2022 executive order that typical residential customer bills increased by $2.39 a month and the typical industrial customer’s bill was raised by $1,554 a month under RGGI.

“Simply stated, the benefits of RGGI have not materialized, while the costs have skyrocketed,” he wrote.

Environmental advocates disagreed, citing a 16.8% reduction in pollution statewide in the initiative’s first two years. And in November 2024, a circuit court judge ruled Youngkin lacked the authority to withdraw Virginia from the agreement. That ruling was suspended in March 2025 pending appeal, meaning Virginia remained out of RGGI while the case made its way through the courts.

Newly sworn in Attorney General Jay Jones has also signaled that Virginia would drop that appeal.

“I have directed my team to work with key stakeholders to determine the best legal approach to ensure Virginia’s participation in the Regional Greenhouse Gas Initiative (RGGI),” he wrote in a statement.

Del. Charniele Herring, D-Fairfax, has introduced legislation that contains regulatory actions needed for Virginia to rejoin RGGI. A House subcommittee is expected to take up the bill Wednesday morning.

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