Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the RGGI topic
No spam. Unsubscribe anytime.
Experts tell Virginia commission RGGI auction proceeds can be used to offset household bills; options laid out
Summary
At an Energy Commission briefing experts said the recent RGGI auction cleared at $35/ton and that proceeds could exceed $1 billion annually for Virginia; they outlined allocation options ranging from maintaining current program funding to rebating revenue to residential customers to offset higher allowance costs.
Commission staff and two invited experts gave a technical briefing on the Regional Greenhouse Gas Initiative and how auction proceeds have been and might be used in Virginia.
What staff said: the Commission’s packet (appendix C) explains how RGGI applies to generators 25 MW and larger, how allowance auctions work, and how each participating state decides allocations of auction revenue. Staff noted that from 2021–2023 Virginia directed roughly $413.9 million to a low‑income energy efficiency program administered by the Department of Housing and Community Development and about $372.5 million to the Department of Conservation and Recreation’s Community Flood Preparedness Fund.
What the experts said: Dallas Bertram of Resources for the Future said the latest auction cleared at about $35 per ton. At that price, auction revenues flowing to Virginia could top $1 billion a year; after reserving amounts for historically directed programs, he estimated a remaining balance in the hundreds of millions that could be rebated or targeted for bill assistance. He and University of Virginia researcher Bill Shobe explained several allocation options: maintain current allocations, rebate proceeds to all residential customers to offset bill increases, target direct bill assistance to low‑income households, or use proceeds for energy efficiency and resilience programs. They stressed that statutory change would be required to alter current allocations and that program design (rebates, triggers, targeting) determines distributional outcomes.
Commissioner concerns and questions: members asked whether Virginia is expected to be a net buyer or seller of allowances, whether higher allowance prices necessarily translate to higher net household bills after rebates, and whether rebating proceeds to households could harm industrial competitiveness or data center siting. Experts replied that apportionment and program design matter; rebates targeted at households can hold residential customers harmless and that higher auction prices can increase proceeds available for rebate, potentially more than offsetting compliance costs for households, depending on policy choices.
What comes next: staff said the Commission will study allocation options and may present recommendations for legislative action if members request changes to statutory allocations.
