The Regional Greenhouse Gas Initiative (RGGI)

The Regional Greenhouse Gas Initiative (RGGI) is a market-based, cooperative cap-and-trade program involving multiple states in the Northeastern and Mid-Atlantic United States, aimed at reducing greenhouse gas emissions from the power sector. Established in 2009, RGGI operates by setting a regional cap on carbon dioxide (CO2) emissions, which declines over time. Power plants within the participating states are required to purchase allowances at auction for each ton of CO2 they emit, creating a financial incentive to reduce emissions. The proceeds from these auctions are typically reinvested in energy efficiency, renewable energy projects, and climate resilience initiatives, thereby not only driving emissions reductions but also fostering economic and environmental co-benefits. RGGI has been recognized as a model for effective climate policy, demonstrating how cooperative regional efforts can address climate change while supporting economic growth and public health.

Virginia’s Participation in RGGI: The Clean Energy and Community Flood Preparedness Act of 2020

Governor Ralph Northam announces the Clean Energy and Community Flood Preparedness Act of 2020.

Virginia’s Clean Energy and Community Flood Preparedness Act of 2020 mandates the Commonwealth's participation in the Regional Greenhouse Gas Initiative (RGGI) as part of its broader strategy to reduce carbon emissions and enhance climate resilience.

The Act stipulates that 50% of the proceeds be allocated to low-income energy efficiency programs, and 45% into the Community Flood Preparedness Fund (CFPF). This fund is dedicated to supporting flood resilience projects across Virginia, particularly in communities most vulnerable to the impacts of climate change.

The CFPF has become a critical resource for local governments and organizations seeking to implement flood mitigation, stormwater management, and other resilience measures, with the goal of protecting both people and property from increasing flood risks.

Virginia’s Community Flood Preparedness Fund (CFPF)

The CFPF is a pivotal element of the Commonwealth’s broader strategy to mitigate these growing climate threats, providing essential financial resources to support local and regional efforts in flood risk management and climate adaptation. The fund is designed to address the diverse and evolving needs of Virginia's communities as they confront the challenges posed by a changing climate.

The projects funded by the CFPF encompass a wide range of activities, including the development and implementation of comprehensive flood mitigation plans, the construction of flood protection infrastructure, and the retrofitting of existing structures to withstand future flood events. The fund is administered by the Virginia Department of Conservation and Recreation (DCR), which evaluates project proposals to ensure alignment with state and local resilience goals.

A distinctive feature of the CFPF is its strong emphasis on nature-based solutions and the integration of environmental justice principles. The fund encourages the use of natural and nature-based features—such as wetlands restoration, living shorelines, and other living infrastructure—to manage flood risks sustainably while enhancing ecological health. Additionally, the CFPF prioritizes projects that benefit socially vulnerable and historically underserved communities, ensuring that those most at risk from flooding hazards receive adequate protection. Through its progressive approach, the CFPF aligns financial resources with long-term resilience planning, emphasizing equity and sustainability in Virginia’s response to climate change.