Virginia Democrats push to rejoin carbon market as Youngkin seeks disaster relief fund

Virginia Democrats are trying to restore the state’s membership in the Regional Greenhouse Gas Initiative (RGGI), while Gov. Glenn Youngkin wants to use RGGI funds for permanent disaster relief instead of climate-related resilience and energy conservation programs.

Charles Paullin reports for Inside Climate News.

In short:

Virginia’s Democratic-controlled House and Senate want to rejoin RGGI, arguing that Youngkin’s withdrawal is costing the state millions. The decision remains tied up in court.
Youngkin proposes using the $102 million from RGGI’s December auction to create a disaster relief fund, a move critics say violates state law requiring RGGI funds to go toward flood preparedness and energy efficiency.
Senate Democrats suggest redirecting $97 million to the general fund, with $50 million for flood relief, $25 million for Hurricane Helene victims and $25 million for future disaster mitigation.

Key quote:

“Youngkin and Miyares have been shown for the third or fourth time now they were wrong on the law. Every month we’re not a part of RGGI we’re losing out on tens of millions of dollars, while climate change continues to wreak devastation on our Commonwealth.”

— Virginia State Senate Majority Leader Scott Surovell (D-Fairfax)

Why this matters:

Virginia is at the forefront of a growing crisis as rising sea levels and worsening floods threaten coastal communities. The Regional Greenhouse Gas Initiative, a multi-state cap-and-trade program, has provided crucial funding for flood resilience and energy efficiency projects. But a proposal by Governor Glenn Youngkin to withdraw from the program has sparked debate over how the state should prepare for climate-driven disasters. Youngkin argues that the RGGI functions as a tax on ratepayers without delivering meaningful environmental benefits. Supporters, however, say the program generates millions in revenue that helps local governments fortify communities against the impacts of climate change.

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