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Carbon Trading

Executive Order 57 (EO 57) directed the Secretary of Natural Resources to convene a work group to study and recommend methods to reduce CO2 from electric power facilities and grow the clean energy economy within existing state authority. This group facilitated extensive stakeholder engagement before compiling its recommendations and submitting a final report to the Governor.

Subsequently, Executive Directive 11 (2017), 'Reducing Carbon Dioxide Emissions from the Electric Power Sector and Growing Virginia's Clean Energy Economy,' directs DEQ to develop a regulation to control CO2 from electric power facilities that allows for the use of market-based mechanisms and the trading of CO2 allowances through a multi-state trading program.

This regulation is being developed through Regulatory Revision C17. A timeline and all official regulation development documents are provided on Regulatory Town Hall:

Public Comments

Public comments  received during the comment period can be viewed on the Carbon Trading Rule comments webpage as well as Town Hall.

What's New

May 2019

The final carbon trading regulation was submitted to the Virginia Register of Regulations on 5/1/2019 and will be published on 5/27/2019.

April 2019

  • The final carbon trading regulation (Revision C17) was approved by the State Air Pollution Control Board on April 19, 2019. A copy of the department presentation is available on this website, and the final text of the carbon trading regulation is available on Town Hall. See DEQ's news release for summary.

  • Links to the regulatory documents related to draft carbon trading regulation (Revision C17) considered at the State Air Pollution Control Board's April 19, 2019 meeting.

March 2019

January 2019

  • The re-proposed carbon trading regulation (Revision C17) has completed executive review, and will be open for public comment from February 4 through March 6, 2019. The board will consider the final regulation this spring.

November 2018

October 2018

  • The State Air Pollution Control Board approved the re-proposed carbon trading regulation (Revision C17) at the September 29 meeting; the department's presentation is available. The next step is executive review, then the new proposal will be published in the Virginia Register for a 30-day comment period. The board will consider the final regulation next spring.

  • The State Air Pollution Control Board will meet on October 29, 2018, to re-consider the proposed carbon trading regulation (Revision C17); visit the Town Hall webpage for a draft agenda, the proposal and other information.

April 2018

December 2017-January 2018

  • The proposed regulation published in the Virginia Register on January 8, 2018. This initiates the public comment period. Visit Town Hall for more information, and be sure to sign up for Town Hall notifications.

November 2017

  • The department presentation to the board at its November 16, 2017 meeting is available.

  • An analysis of potential changes in residential, commercial, and industrial customer electricity bills has been prepared by the Analysis Group.

  • The Georgetown Climate Center has provided Excel files with more detailed information on the runs presented in the October 20 webinar. The information provided in these spreadsheets is what ICF provides the RGGI states for their analysis of potential program designs and RGGI, Inc., posts on its website.
  • The draft proposed regulation that will be presented to the board at the November 16 meeting is now available.

October 2017

  • On October 20, Georgetown Climate Center hosted a webinar, 'ICF’s Chris MacCracken Reviews Modeling Results for Virginia Business-as-Usual and Cap Scenarios' for members of the State Air Pollution Control Board, the RAP and the public. ICF International has conducted energy economic modeling analysis to project future business-as-usual and possible ED 11 implementation scenarios for Virginia. Chris MacCracken of ICF reported on the results of that modeling analysis and took questions from the webinar audience.

September 2017

August 2017

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Virginia Department of
Environmental Quality
P.O. Box 1105
Richmond, VA 23218
(804) 698-4000

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