Virginia Governor Abigail Spanberger has signed legislation requiring the state to rejoin the Regional Greenhouse Gas Initiative (RGGI), the mandatory carbon cap-and-trade program covering power sector emissions across 11 northeastern and mid-Atlantic states.
The provision, ending a three-year absence following a contentious executive order from Spanberger’s predecessor, was included in Virginia’s “caboose” budget bill, House Bill 29, passed at the end of February.
It requires all state agencies to take the actions necessary to rejoin RGGI, and directs the Department of Environmental Quality (DEQ) to repeal the 2023 exit regulation and reinstate the previous participation regulation within 90 days, meaning Virginia is expected to formally re-enter RGGI by late May 2026.
Virginia first joined RGGI in 2021, expanding the program’s cap coverage by 30%, before then-Governor Glenn Youngkin issued an executive order directing officials to exit.
A court later ruled that withdrawal to be unlawful and without effect, but a subsequent appeal filed in March 2025 kept the state outside RGGI until the legislature acted.
Alongside the budget provision, the General Assembly passed two standalone bills—House Bill 397 and Senate Bill 802—which clarify that Virginia’s RGGI participation is and always has been a statutory requirement.
Relevant: Virginia Lawmakers Use Budget Power To Reopen Door To RGGI
The bills, approved by the governor in April, are expected to close the legal gap previously exploited to exit the program, making it significantly harder for a future administration to withdraw through executive action alone.
The budget provision also requires DEQ to update Virginia’s regulation to align with the latest RGGI program review and revised model rule by January 1, 2027.
Virginia’s return brings the program back to its broadest geographic reach since Youngkin’s 2023 withdrawal, and comes as several other states are debating whether to expand or reform their own carbon pricing frameworks.
Read more: Pennsylvania Pulls Out Of Regional Greenhouse Gas Initiative After Years Of Dispute
