Stephen D. Haner, Senior Fellow for Environment and Energy Policy at the Thomas Jefferson Institute for Public Policy, said that Virginia’s participation in the Regional Greenhouse Gas Initiative (RGGI) would significantly raise electricity costs for residents. The statement was made in an op-ed.
“Virginians will pay about $500 million more per year for electricity if Virginia again becomes one of those member states,” said D. Haner. “Getting us out of RGGI was Youngkin’s most successful initiative to lower electricity bills. The current tax of $22.25 is four times higher than 2020’s and will only keep rising. Increasing the price of hydrocarbon energy is the purpose of a carbon tax and always has been.”
According to the Thomas Jefferson Institute article, it is estimated that if Virginia rejoined RGGI, Virginians would pay about $500 million more per year in electricity costs. The article attributes this number to “the most recent carbon tax imposed on the member states of the Regional Greenhouse Gas Initiative.” It frames the figure as a political cost of reentering RGGI, arguing the burden would fall on electricity customers.
The Analysis Group’s independent economic report for RGGI covering the 2018–2020 compliance period finds that auction proceeds and emissions reductions yielded $669 million in net economic value for participating states, along with nearly 8,000 job-years of employment during that period. The report models the combined impacts of wholesale price changes, emissions reductions, and reinvestment of auction revenues into energy efficiency and clean energy programs. It further argues that these net gains reflect not just costs but also the benefits of emissions abatement, health co-benefits, and job creation in member states.
In a 2023 press release following RGGI’s Third Program Review, participating states agreed to strengthen their regional carbon dioxide emissions cap through 2037, including adjustments beginning in 2027, and implement new mechanisms to protect energy affordability. This change reflects an ongoing balancing act in RGGI design: tightening emissions constraints while guarding against undue cost burdens on energy consumers. The announcement underscores how RGGI states seek to respond to critiques about consumer cost exposure while maintaining climate goals.
Haner has observed, written about, and participated in Virginia public affairs for four decades. He has worked as a newspaper reporter, Republican political operative, state agency manager, and lobbyist. He is now retired as an independent government affairs and public relations consultant and serves as a contributing editor to the online outlet Bacon’s Rebellion. Haner has held senior positions including Manager of State Government Affairs for Huntington Ingalls Industries, Vice President for Public Policy at the Virginia Chamber of Commerce, Director of Administration in the Office of the Attorney General, and political writer for The Roanoke Times.
