Announcements:

Revision A26 to amend Virginia's CO2 Budget Trading Program regulation and resume participation in the Regional Greenhouse Gas Initiative (RGGI) Program is undergoing executive branch review. For access to the regulatory text, Agency Background Document, and further details on the review process, please click here.

Virginia’s CO2 Budget Trading Program regulation is being amended to reinstate the updated RGGI Model Rule as required by the House Bill 29 (HB29) Amendments to Virginia’s 2024-2026 Biennial Budget.

Governor Spanberger approved amendments to Virginia’s 2024-2026 Biennial Budget under HB29 on February 20, 2026. HB29 directs DEQ to “take all actions necessary to rejoin the Regional Greenhouse Gas Initiative...” by May 21, 2026. Specifically, a few of the required actions under Section R of Item 365 include:

  • “repealing or otherwise nullifying the final regulation titled 9VAC5-140, Regulation for Emissions Trading Programs, published in the Virginia Register of Regulations on July 31, 2023…”
  • “reissuing or otherwise reinstating the final regulation titled 9VAC5-140, Regulation for Emissions Trading Programs, published in the Virginia Register of Regulations on August 3, 2020, including any amendments necessary to account for the time such regulation was not in effect...”

Further, HB29 establishes that regulatory actions necessary to meet these requirements are exempt from the Virginia Administrative Process Act and do not require participation of the State Air Pollution Control Board. Virginia plans to resume participation in RGGI effective July 1, 2026 and take part in September and December 2026 auctions.

This webpage will be updated routinely to reflect the regulatory process accompanying Virginia’s reinstatement of the CO2 Budget Trading Program.