Virginia Is Rejoining RGGI — And You'll Pay the Bill

Governor Spanberger didn't put RGGI to a public vote. She buried Virginia's reentry into the Regional Greenhouse Gas Initiative inside a "caboose" budget bill — House Bill 29 — signed on February 20, 2026. The bill passed through the legislature, but what it quietly authorized was a regulatory shortcut: DEQ was explicitly exempted from the Virginia Administrative Process Act, meaning no draft regulation was published, no public comment period was held, and no Virginian had the opportunity to weigh in before the costs began. The regulation took effect April 24, 2026.

That's not just policy. That's a carbon tax imposed without the public process Virginians are owed.

What RGGI actually means for your electric bill

Power plants are required to purchase permits for every ton of carbon they emit — costs that are passed directly to ratepayers. When Virginia was previously in RGGI, a typical residential customer using 1,000 kilowatt-hours per month paid an estimated $4.43 more on their monthly electric bill just to cover the cost of participation.

That number could climb. Virginia's electricity demand is now surging — driven in large part by the explosive growth of data centers — and RGGI allowance prices have nearly doubled since Virginia last participated, recently trading above $52 per ton compared to a historical range of $25–28. With Virginia-based generators potentially needing to purchase allowances to cover demand they cannot offset locally, Virginians could end up subsidizing other states' carbon programs at a significantly higher price than before.

What the Virginia Chamber of Commerce said

The Virginia Chamber of Commerce raised concerns that rejoining RGGI would impose additional costs on electricity consumption, negatively impacting affordability, and cautioned that such costs could harm Virginia's competitiveness against major competitor states not participating in RGGI.

What happened when Youngkin tried to leave

Former Governor Youngkin directed the State Air Pollution Control Board to repeal Virginia's RGGI participation regulation, which it did in August 2023, effective December 31, 2023. A circuit court judge later ruled in November 2024 that Youngkin's exit was unlawful — finding that only the General Assembly, not the governor acting through regulation, had the authority to repeal the RGGI Act.

That ruling is important context. It means that what Spanberger has now done — enshrining RGGI reentry in statute through HB29 — forecloses any future governor from leaving through executive action. A future governor who wants out will need a legislative majority to get there.

No public voice before the costs begin

DEQ has confirmed it will not publish a draft regulation or take public comments before Virginia formally rejoins. Virginia is set to formally re-enter RGGI on July 1, 2026, with participation in September and December auctions to follow. The clock is ticking.

Contact your legislators today and demand accountability — Virginians deserve a say in policies that drive up their energy bills.