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Virginia to return to multi-state greenhouse gas partnership
May 6, 2026
Virginia is rejoining the Regional Greenhouse Gas Initiative (RGGI) this year with Gov. Abigail Spanberger’s signature on several recent clean energy bills. The region has not been involved in the initiative for the past three years, but this recent return to the bill aligns with the governor’s focus on energy affordability for families in Virginia. The Department of Environmental Quality (DEQ) is anticipated to formally re-enter the program starting July 1, 2026.
RGGI is the first market-based, cap-and-invest system in the United States, aiming to reduce power sector-related carbon dioxide emissions in Virginia, among many other states along the east coast. The cooperation runs the state’s CO2 Budget Trading Program, which limits the amount of CO2 coming out of electric power plants and creates quarterly CO2 allowance auctions to regulate the number of emissions per source. These auctions are sealed-bid, uniform price auctions that establish a quarterly clearing price.
“Virginia policymakers are making good on their long-term commitment to addressing rising energy costs and building resilient homes and communities that can withstand the growing threat of extreme weather and sea-level rise,” said Walton Shepherd, senior attorney for climate and energy at the Natural Resources Defense Council, a nonprofit international advocacy organization that works to advance environmental protection efforts through government action.
“Rejoining RGGI keeps corporate polluters in check and protects the commonwealth’s most valuable resource: our people.”
Walton Shepherd
Senior Attorney – Natural Resources Defense Council
Energy expansion
Along with RGGI, Spanberger also signed legislation to increase energy storage capacity and create reliable grid solutions at lower prices for consumers in the region. The bill creates a state-level energy storage capacity target of 4,000 MW by 2030 and sets a goal of 16,000 MW of short-duration energy storage capacity by 2045.
“HB895 / SB448 joins Virginia into the growing list of states increasing their energy storage targets to stabilize the grid and put downward pressure on electricity prices,” said Darren Van’t Hof, interim president and CEO of Solar Energy Industries Association.
Solar standards
Solar panels were also in discussion this General Assembly term, including the governor’s signature on the HB711 / SB347 bill, which aims to increase transparency and establish clear standards for local solar ordinances and create predicable timelines for projects to allow for community engagement. The governor made technical amendments to the legislation, which the General Assembly approved on April 22. Both bills will take effect on July 1, 2026.
The approval of these clean energy bills is among several promising advancements on the horizon for Greater Richmond that are actively combatting climate change. The state’s commitment to sustainable energy increases consumer access to affordable and reliable electricity and positions Greater Richmond as a promising place to live.
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About The Author
Christopher Hollomon is Director of Marketing at the Greater Richmond Partnership, where he supports marketing and communications initiatives focused on business recruitment to the Richmond Region. Before joining GRP in 2025, he built a diverse career in graphic design, marketing, public relations and digital media across industries including healthcare, engineering, advocacy and the arts. His work has earned regional recognition, including award-winning campaigns for Sheltering Arms Rehabilitation Centers. Christopher holds a bachelor’s degree in Speech Communications and a master’s in Corporate and Professional Communications from Radford University and studied international communications in Salzburg, Austria. He lives in Henrico County with his wife and two children.
