Gov. Ralph Northam’s clean energy actions put Virginia on the path to produce all of its energy without carbon emission within the next 30 years, but critics are worried his moves could be costly for the state.
The governor signed the Virginia Clean Economy Act and proposed amendments to the Clean Energy and Community Flood Preparedness Act, which requires Virginia to join the Regional Greenhouse Gas Initiative – a coalition of states trying to reduce greenhouse gas emissions through government regulations.
“These new clean energy laws propel Virginia to leadership among the states in fighting climate change,” Northam said in a statement. “They advance environmental justice and help create clean energy jobs. In Virginia, we are proving that a clean environment and a strong economy go hand-in-hand.”
Virginia energy utilities will be forced to shut down all carbon emitting energy sources by 2050, which includes coal and natural gas, and switch to sources that do not emit carbon, such as renewable and nuclear energy. Dominion Energy Virginia will be required to meet this goal by 2045, and Appalachian Power will be required to meet it by 2050. All coal plants will have to close by the end of 2024.
“This is the most significant clean energy law in Virginia’s history,” Senate sponsor Sen. Jennifer McClellan, D-Richmond, said in a statement. “The bill that the Governor signed will make Virginia the first southern state with a 100 percent clean energy standard. The Act will create thousands of clean energy jobs, make major progress on fighting climate change, and break Virginia’s reliance on fossil fuels.”
These changes will establish energy efficiency standards and will require a third-party review of energy companies to ensure they meet such goals. They also will create a program to reduce the energy burden on low-income customers.
Offshore wind generation and solar and distributed generation will be classified as being in the public interest. The offshore wind generation goal will be set at 5,200 megawatts, and the solar and distributed generation goal will be set at 16,100 megawatts. Under the new law, Virginia’s largest energy companies will need to acquire more than 3,100 megawatts of energy storage capacity.
Energy companies that fail to meet their targets will be fined.
The moves also establish a statewide carbon dioxide cap-and-trade program, which puts a limit on how much carbon an entity can emit, but allows companies that emit more carbon to purchase “carbon credits” from those who are producing less. This reduces the overall carbon footprint, while giving some leeway to businesses to decide which ones emit more carbon.
The State Corporation Commission, which regulates the energy utilities, estimated this program could increase energy costs for Virginians.
Republicans and free-market advocates have criticized the polices, saying they would increase costs for Virginians and make it more difficult to sell excess power to other states.
Northam’s amendments to the Clean Energy and Community Flood Preparedness Act were technical to clarify how the Community Flood Preparedness Fund would operate. The amendments also provide for forgiveness of loans used in low-income geographic areas.
The General Assembly is scheduled to reconvene April 22 to consider Northam’s amendments to a series of bills. The Legislature can either approve or reject an amendment, but it cannot make any changes to the language.
