Air Board Approves Carbon Caps for Electric Utilities

The Virginia Air Pollution Board unanimously approved on Thursday regulations to reduce carbon from electric utilities by 30% between 2020 and 2030. The rule also will link Virginia to the Regional Greenhouse Gas Initiative (RGGI), which will allow Virginia utilities to swap carbon allowances with power companies in other states.

The vote “will make this Commonwealth a leader in the global fight to cut carbon and promote clean energy technologies,” said Governor Terry McAuliffe in a prepared statement. “This will allow us to achieve carbon reductions in the most innovative and cost-effective way possible with minimal impact on customer bills.”

Virginia is uniquely vulnerable to the threat of climate change and many of our residents are already experiencing its impacts. We do not have the luxury of waiting for Washington to wake up to this threat – we must act now. I am proud that Virginia is joining states around the nation that are filling the void of leadership that President Trump has left on transforming the energy sector and protecting our environment. With these regulations, we will significantly cut carbon emissions, continue our state’s explosive growth in the clean energy sector, and set an example for leadership in Washington, other states, and the entire world.

The public comment period and on-going enactment process is expected to be lengthy, especially if lawsuits are filed challenging the legality of the regulations. McAuliffe’s statement was short on details on how the regional greenhouse initiative will work.

Here follow responses from various parties as they come in.

House of Delegates Republicans: “This is a clear attempt by Governor McAuliffe’s Administration to circumvent the appropriate legislative process to impose wide-ranging regulations that, simply put, will necessitate higher electricity prices and discourage businesses from investing in the Commonwealth,” said House Speaker-designee Kirk Cox.

“Democrats purport to be champions of the poor and working class, but this policy will lead to higher electric bills for families, small businesses, seniors, and the working poor,” said Majority Leader-designee Todd Gilbert. “It will directly hurt people already anxious about making ends meet and getting through a cold winter, but it sure will please Governor-elect Northam’s California billionaire donors.”

“The Air Pollution Control Board does not have the authority to promulgate regulations at the state level that exceed those at the federal level,” said Commerce & Labor Committee Chairman Terry Kilgore. “Today’s action is clearly inconsistent with Virginia law and a gross example of bureaucratic overreach.”

Dominion Energy Virginia. “We already are a low-carbon producer of energy, and have continued to work to lower emissions both in anticipation of future state or federal regulation and because it’s the right thing to do,” said Dominion spokesman David Botkins. “We have plans to build more than 5,200 megawatts of solar arrays in Virginia, extend the lifespan of our nuclear plants and have closed or converted coal-fired generation. While we haven’t yet had a chance to fully study the state’s draft proposal, we expect to fully meet whatever regulatory requirements that result. We’ll review today’s vote and participate in the public comment period in due course.”

Appalachian Power: “Appalachian Power is reviewing the proposed regulations. Given uncertainties in the ultimate Virginia carbon budget, allocations, and allowance pricing, we are unable to estimate the impact of the proposal on our customers at this time” said Apco spokesman John Shepelwich. “But the company will participate in the public notice and comment process to ensure any final rule, if/when/promulgated, will have the least impact possible on our customers.”

APCo has already reduced CO2 generation emissions in Virginia by 96% since the year 2005, he added.

James A. Bacon publishes the Bacon’s Rebellion blog, covering public policy issues in Virginia.

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