RICHMOND — The upcoming Virginia gubernatorial election will influence how environmental and energy policy progresses over the next four years. The two candidates tout interest in renewable and nonrenewable energy generation, but are divided when it comes to rejoining the Regional Greenhouse Gas Initiative.
The state has increasing energy demands, in great part due to data centers. A previous initiative passed by the General Assembly attempted to cap and trade the pollution that is a byproduct of fossil-fuel energy. Virginia joined the Regional Greenhouse Gas Initiative, or RGGI, in 2021.
Gov. Glenn Youngkin began the process to withdraw Virginia from RGGI his first month in office. His executive order stated Virginia’s participation in the initiative would cause electricity prices to increase without any of its claimed benefits materializing.
RGGI is a cooperative effort among 10 Eastern states to reduce the amount of pollution emitted from power plants within each participating state. A regional cap limits each state’s emissions from regulated power plants. Power plants purchase overage allowances that permit a certain amount of pollution, and those funds are given to the state.
Split views on RGGI return
The next governor could return Virginia to RGGI. Democratic gubernatorial candidate Abigail Spanberger told the political publication Virginia Scope that she would prioritize the state’s return. In her Affordable Virginia Plan, Spanberger promised to negotiate the best ratepayer deal to rejoin RGGI.
Extreme weather events in Virginia have caused devastation in the state, Spanberger said. Virginia could use funds to offset damage caused by climate change. State law allowed 45% of the funds to support localities affected by recurrent flooding, sea level rise, and flooding from severe weather events.
“It’s not only important to the goal of reducing our state’s emissions and meeting clean energy goals, which are incredibly important,” Spanberger said. “But it’s also unbelievably valuable for us to use this revenue to make investments in our community that will benefit Virginians in the long run.”
Republican gubernatorial candidate Winsome Earle-Sears stated support of Youngkin’s decision to remove Virginia from RGGI on X.
Earle-Sears supports an “all of the above” energy profile for the state including nonrenewables like coal and gas, she said at the recent gubernatorial debate.
“Clean coal, oil, nuclear, natural gas–and we need renewables,” Earle-Sears said. “My opponent’s only plan is solar and wind. Well, what happens when the sun goes down?”
RGGI’s energy tax made it impossible for Virginia’s natural gas plants to compete with producers in states without an energy tax, Earle-Sears said in her Washington Examiner op-ed. That led to a 9% decrease in electric generation. Virginia could face billions of dollars in economic costs if it rejoins RGGI, Sears wrote.
Earle-Sears is not against solar and wind energy production, but said Virginians should not be gaslighted into believing they are clean, according to her interview with Cardinal News.
Funding increase; pollution decrease
Virginia earned more than $827.7 million in funding between 2021 and 2023 through RGGI, according to the Virginia Conservation Network. The revenue financially provided support to families with high energy bills, affordable energy-efficient housing units, and enhanced community flood prevention and protection.
There was a 22% decrease in carbon pollution during the three years Virginia was a part of RGGI, according to Nate Benforado, senior attorney at the Southern Environmental Law Center. Virginia saw a 20% increase in pollution within just a year of leaving RGGI.
Opponents said participating in RGGI would increase utility bills, Benforado said. However, some of the biggest increases in bills in the last few years have been from fossil fuel charges. Fossil fuels are a global commodity with prices that are uncontrollable. As the price of fossil fuels increases so do utility costs.
“One of the benefits of RGGI is it’s a financial incentive to reduce your reliance on fossil fuels,” Benforado said.
Dominion Energy, Virginia’s largest utility company, previously expressed concerns about joining RGGI, and supported Youngkin’s actions to withdraw. The company will have to deliver electricity from 100% renewable sources by 2045, according to the Virginia Clean Economy Act.
The company hopes to advance its proposed Chesterfield Energy Reliability Center, in an effort to transition to create more clean energy. The center will include four natural gas-powered simple cycle turbines and include a seven-day supply of fuel oil. The center would be built over the existing Dominion Energy-owned Chesterfield Power Station.
Many environmental groups oppose the idea of the plant, according to an article from VPM. They state solar and battery storage would be cheaper and just as effective at meeting energy demand. The State Corporation Commission heard arguments on allowing the company permits to build the center in September.
Energy, climate political funding
Dominion Energy is a top political donor in the state. It has spent over $86 million in the past 25 years to lobby politicians on both sides of the aisle, according to the Virginia Public Access Project.
Earle-Sears has directly received at least $250,000 from the utility company this year. Spanberger has not received any donations this campaign, although Dominion Energy has contributed over $4.5 million to Democratic candidates and committees.
The Clean Virginia Fund has donated at least $665,000 to Spanberger since she announced her run for governor in late 2023. Clean Virginia is a political action committee that has become Dominion Energy’s largest lobbying rival. The candidates it supports must promise not to accept Dominion’s political donations.
Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Communication. Students in the program provide state government coverage for a variety of media outlets in Virginia.
https://www.dailypress.com/2025/10/14/virginia-governor-candidates-rggi/
