Friday, June 30, 2023

ICYMI: RGGI is Nothing More Than a Tax

Commonwealth of Virginia

Office of Governor Glenn Youngkin

In Case You Missed It:

RGGI is Nothing More Than a Tax


The Richmond Times-Dispatch


By Delegate Chris Head

Fact check: The Regional Greenhouse Gas Initiative is really a tax that does nothing to actually reduce carbon pollution. The Times-Dispatch has printed multiple letters misrepresenting RGGI, an interstate compact that applies a regressive tax on every Virginian who uses electricity. RGGI requires power producers to purchase an off set for every ton of carbon emitted by their facilities. Unlike any other state in RGGI, Virginians get their electricity from regulated utilities with complete monopoly, and the entire cost is passed on to customers. The cut-and-paste talking points just don't work. The cost of buying the RGGI off sets is applied across the board in an add-on to customers' bills, hitting everyone regardless of their power usage.


The state's largest utility, Dominion Energy, could not be more clear about the fact that the tax does nothing to reduce carbon pollution, stating: "RGGI does not further this goal but instead imparts unnecessary additional costs on Virginia customers with no evidences of incremental benefits." Proponents argue that RGGI taxes fund important priorities, especially resiliency to flooding. This should be funded directly by the governor and General Assembly with taxes collected by and controlled by leaders elected by Virginians. Gov. Glenn Youngkin has proposed, and both chambers of the General Assembly support, over $600 million in environmental improvements, with a full $100 million of that dedicated to resiliency.


The right path forward is to continue to fund those priorities without resorting to a backdoor tax that drives up the cost of living in the commonwealth.


Del. Chris Head


Roanoke

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