DEQ coordinates Virginia’s participation in the Regional Greenhouse Gas Initiative (RGGI), an auction-based program to reduce greenhouse gas pollution from the electricity generation sector. Virginia is one of 11 RGGI members along with Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont, which will collectively reduce power sector carbon dioxide emissions by 30% by 2030.

Cap and trade programs like RGGI are a proven, cost-effective way to reduce carbon pollution. To enable participation in RGGI, Virginia passed regulations establishing an annual cap on carbon dioxide emissions from power plants. To comply with the regulations, power generators must reduce emissions to meet the cap or buy additional allowances through an auction administered by RGGI, Inc. which is the managing non-profit organization for the RGGI program. Emissions reductions are secured as the cap is lowered over time. 

Proceeds generated from the auctions will allow Virginia to invest tens of millions of dollars in helping communities prepare for severe weather events and related flooding and storms surge, and to help low income Virginians to make their homes more energy efficient, which lowers power consumption and electricity bills. Participation in RGGI will support Virginia’s transition to achieving 100% carbon-free electricity generation by 2050. 

Program History

In 2016, Executive Order 57 directed the Secretary of Natural Resources to convene a work group to study and recommend methods to reduce CO₂ from electric power facilities 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," directed 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.

An extensive rulemaking process began in 2018, and the final regulation became effective in June 2020.