Abigail Spanberger Henrico Campaign Rally by Ezra Deutsch-Feldman is licensed under CC BY-SA 4.0

Virginia taxpayers just got a costly reminder that elections have consequences. 

As one of her first moves in office, Governor Abigail Spanberger has taken steps to reinsert Virginia into the Regional Greenhouse Gas Initiative (RGGI), a multistate cap-and-trade scheme that serves as a backdoor carbon tax on electricity. Despite rebranding it as an “environmental investment,” RGGI is, at its core, a government-mandated energy tax that raises utility bills, distorts markets, and hits working families the hardest. 

RGGI forces power producers to purchase make-believe emissions allowances, an added cost that is inevitably passed on to consumers in the form of higher electricity prices. That means higher monthly utility bills for families and small businesses across the Commonwealth, with the pain intensifying during periods of high demand. Home heating costs will rise as well, particularly for households that rely on electric heat, as artificially inflated electricity prices ripple through the market. For seniors on fixed incomes and families already struggling with inflation, housing costs, and higher interest rates, RGGI makes keeping the lights on and homes warm even more expensive. Richmond doesn’t need to add another hidden tax to Virginians’ monthly bills. 

The cost increases are not speculative. Data from RGGI states and Virginia’s own experience show the program comes with a steep price tag: 

  • Electricity rates in RGGI states rose 64% more than in non-RGGI states eight years after the program’s creation.
  • Rejoining the program is expected to cost ratepayers $500 million per year, or about $1,100 per household. 
  • Virginians paid $828 million as a result of RGGI. Pulling out of the program saved taxpayers $937 million. 

What makes the policy even harder to justify is where the money ultimately goes. Under RGGI, millions of dollars are extracted from Virginia ratepayers through higher electricity bills and routed into a little-known nonprofit based in New York that sends a portion of those funds out of the Commonwealth altogether. In effect, Virginians are forced to pay higher energy costs so their money can be shipped out of state to support a regional bureaucracy that answers to no Virginia voter. 

Governor Spanberger’s move also ignores the reality of Virginia’s energy needs. Reliable, affordable electricity is not optional. It is essential for economic growth, manufacturing, and the daily lives of millions of families. By artificially constraining energy production and penalizing traditional power sources, RGGI increases the risk of higher prices and reduced reliability, particularly during periods of peak demand. 

Former Governor Glenn Youngkin rightly moved Virginia out of RGGI, recognizing that the program functioned as an energy tax with no clear accountability to voters. Exiting RGGI was a deliberate effort to protect ratepayers, restore state control over energy policy, and prevent Richmond from quietly extracting more money from Virginians through their electric bills. 

Virginia’s brief exit from RGGI was a step toward restoring accountability and protecting taxpayers from unnecessary cost increases. Rejoining the program reverses that progress and sends a clear message: the Spanberger administration is comfortable raising energy costs as long as the blame can be shifted elsewhere. 

In addition to Governor Abigail Spanberger’s decision to bring Virginia back into RGGI, Democratic lawmakers in Virginia have introduced a slew of bills that would further raise costs for families and businesses. These proposals include a new net investment income tax, a new tax on each and every retail delivery in Northern Virginia, increases and expansions to the sales tax, and targeted taxes on firearms and ammunition. 

At a time when states across the country are cutting taxes, promoting growth, and prioritizing affordability, Governor Spanberger is steering Virginia in the opposite direction. RGGI is not climate policy; it’s a massive tax hike masquerading as environmentalism. And Virginians will be the ones left footing the bill.