Virginia regulators anticipated to vote on Youngkin plan to withdraw from local weather initiative

RICHMOND, Va. — Virginia regulators are anticipated to take a last vote Wednesday on whether or not to advance Gov. Glenn Youngkin’s plan to withdraw from a multistate carbon cap-and-trade program.

Virginia spent years underneath Democratic administrations shifting towards participation within the Regional Greenhouse Gas Initiative, which environmental advocates say is a confirmed instrument to assist cut back air pollution and deal with local weather change. But that has been thrown into reverse since Youngkin, a Republican who says this system has functioned as a regressive tax on electrical energy customers, took workplace in January 2022.

A last resolution to repeal by the state Air Pollution Control Board – which is managed by Youngkin appointees and backed withdrawal in a earlier vote by 4-1 with two abstentions – would clear one of many final remaining hurdles to the governor’s proposal, although it’s finally anticipated to face a authorized problem.

The Regional Greenhouse Gas Initiative, or RGGI, is an effort by 12 mid-Atlantic and Northeast states to cut back energy crops’ carbon emissions. Participating states require crops of a sure producing capability to buy allowances to emit carbon dioxide, a greenhouse gasoline that contributes to international warming, which scientists say is already accelerating sea degree rise and worsening excessive climate.

In Virginia, most proceeds from the sale of allowances – which have reached practically $590 million to date – are divvied up between efforts to help localities affected by recurrent flooding and sea-level rise, and a state-administered account to assist vitality effectivity applications for low-income people.

Youngkin, who acknowledges the specter of local weather change and has pledged to handle sea-level rise, says his considerations with RGGI (pronounced “Reggie”) heart on the state’s electrical utility coverage and the 2020 legislation that made the state a full participant in this system.

The legislation included language that stated the prices of allowances bought by way of the initiative can be deemed environmental compliance prices that could be recovered from ratepayers of monopoly utilities Dominion Energy Virginia and Appalachian Power.

“The imposition of the RGGI ‘carbon tax’ fails to offer any incentive to change behavior. Current law allows power generators, such Dominion Energy, to pass on all their costs, essentially bearing no cost for the carbon credits,” a 2022 administration report stated.

Nate Benforado, a senior legal professional with the Southern Environmental Law Center, pushed again on that argument, noting that impartial energy producers which are regulated otherwise and account for about 30% of Virginia’s energy sector emissions additionally should comply.

In public touch upon the proposal, the SELC stated Virginia’s emission ranges had been stagnant within the decade earlier than the state joined RGGI adopted by a “clear shift” in reductions within the years since.

“Virginia’s annual total CO2 emissions from power plants declined by about 5.5 million tons/year – from about 32.8 million tons in 2020 to about 27.3 million tons in 2022 – a total decrease of 16.8% over just two years,” the group stated, citing information from the Environmental Protection Agency.

Some RGGI critics query whether or not that’s resulting from participation in this system or different components.

About 1,900 commenters weighed in by way of a web-based portal to oppose the governor’s proposal throughout the newest interval for public remark, in contrast with roughly 600 in favor.

Among these supporting a repeal was Dominion, which serves round 2.7 million prospects in Virginia. The utility wrote that RGGI participation doesn’t additional the purpose of carbon discount however “instead imparts unnecessary additional costs on Virginia customers with no evidence of incremental benefits.”

To date, Dominion has incurred about $490 million in compliance prices and has recovered about $267 million from prospects, spokesman Aaron Ruby stated.

Appalachian Power spokeswoman Teresa Hamilton Hall stated the corporate has incurred $742,000 in prices since 2021, most of which regulators stated the corporate may recuperate.

“Compliance with RGGI adds to customer costs,” she stated.

RGGI advocates have additionally argued that the best way the Youngkin’s administration has sought to go away this system – by way of administrative motion after legislative makes an attempt had been defeated – is illegal.

“We fully expect robust and ultimately successful legal challenges to ensue by any number of parties who will be harmed by this action,” stated Walton Shepherd, Virginia coverage director and senior legal professional for the Natural Resources Defense Council.