In Virginia, Democratic Lawmakers Clash With Youngkin Over RGGI Membership, Flood Relief

Budget plans emerging from Virginia’s state House and Senate, both controlled by Democrats, would appropriate $25 million for ongoing Hurricane Helene relief efforts in southwest Virginia.

But the source of those funds differs in the House and Senate plans, as each chamber employs different means for using the latest round of $102 million in utility payments from a multi-state carbon market, the Regional Greenhouse Gas Initiative (RGGI).

Neither chamber, meanwhile, agrees with Republican Gov. Glenn Youngkin’s plan for using that money. 

Youngkin repealed regulations late last year in order to pull the state out of RGGI—a move blocked by a judge in January. Democrats want the state back in the carbon market, which requires the state’s electricity producers, including the two regulated utilities of Dominion and Appalachian Power, to buy allowances they pay to the state for carbon emissions above agreed-upon limits. 

Democrats say Yougkin’s move to exit RGGI is costing the state millions of dollars. But for now, RGGI participation is on hold while both sides present arguments to the court. 

Youngkin’s Proposal

While declining to answer a question from reporters last year on how climate change may have impacted the effect of Helene, Youngkin has been vocal about providing disaster relief to the rural, mountainous community of Southwest.

His budget proposal suggests taking the $102 million the state received during the last RGGI auction in December, as well as $25 million in general funds, to create a permanent disaster relief fund.

Critics of Youngkin’s proposal point to the state law requiring that revenues from RGGI go toward flood preparedness and energy efficiency. Last year, Youngkin got $100 million from general funds added to a flood fund the state created in 2020. Virginia has one of the highest rates of sea level rise in the country with Norfolk, where flooding is endemic, losing elevation by about 5.38 millimeters, or .2 inches, a year, due to land subsidence.

But this year, Youngkin’s budget proposal doesn’t add any additional revenues to the flood fund or for energy efficiency. 

Youngkin’s proposal would actually reduce $10 million of RGGI funds allocated to the state Department of Housing and Community Development. Those funds had been set aside last year under a budget agreement, with $5 million for first-time homebuyer assistance grants for energy efficient homes and the other half for relocating mobile homes, in line with a bill passed by Del. Paul Krizek (D-Alexandria) last year. Early discussions since that budget agreement have included making older mobile homes that remain, or new ones that are built, energy efficient.

Youngkin press secretary Christian Martinez did not respond to a request for comment on the governor’s budget priorities.

The House Budget Proposal

The House budget keeps the $102 million from the December auction in the RGGI account, where it should get directed toward the flood fund and energy efficiency programs.

Instead, Democrats in the House propose devoting $25 million in the general fund for disaster relief specifically targeted to the Helene events and with specific requirements.

There are no allocations to the flood fund, but the House budget does put back in the language around the homebuyer assistance grants and land for mobile homes, while also adding language mandating the programs start by May 4 of this year.

Attempts to reach Democrats for comments were unsuccessful.

House Minority Leader Todd Gilbert (R-Shenandoah), who normally is involved with criminal justice policy but was appointed to the House Commerce and Labor committee, said in an interview that, “I think people hurting is our priority.”

“There’s still parts of this process that have to play out,” said Gilbert. “The governor still gets to have his say and the legislature gets to act on what he says, so, we’ll see.”

The Senate Budget

In the Senate, Democratic legislators have proposed taking the $97 million, the proceeds from the December RGGI auction that don’t include $5 million in interest, and allocating that to the general fund.

That may prove difficult, given the RGGI law requires the funds be directed to the flood fund and energy efficiency through an appropriation by Youngkin’s administration. But moving the funds out of the RGGI account could keep them from remaining there unused, as they have been by the Youngkin administration.

The Senate then is proposing $50 million go toward the flood fund, with $25 million going for disaster relief for victims of Hurricane Helene, similar to the House plan. But an additional $25 million would go toward disaster mitigation in the region to bolster the resiliency of homes during future storms.

“We want the resources to go where they’re intended,” said Sen. Mamie Locke (D-Hampton). Locke. “The governor certainly doesn’t want to do that, so there’s still ongoing discussion on how we’re going to do that.”

Budget Amendments Around RGGI Participation

House of Delegates Majority Leader Charniele Herring, (D-Fairfax) and Locke had requested amendments to the state budget that would direct the Youngkin administration to resume Virginia’s participation in RGGI within 90 days of the budget being adopted.

Those amendments are similar to attempts made last year that failed. Meanwhile, Sen. Majority Leader Scott Surovell (D-Fairfax) proposed a new approach to getting the state back in RGGI, proposing a budget amendment that would prevent Virginia Attorney General Jason Miyares, a Republican, from using any funds to pursue an appeal specifically to the Floyd County Circuit Court ruling in the lawsuit withdrawing Virginia from RGGI.

“Youngkin and Miyares have been shown for the third or fourth time now they were wrong on the law. Every month we’re not a part of RGGI we’re losing out on tens of millions of dollars, while climate change continues to wreak devastation on our Commonwealth,” Surovell said in an interview with Inside Climate News prior to the budget’s unveiling. “It’s time for them to follow the law and move on.”

The amendments from Herring, Locke and Surovell didn’t make their way into the budget proposal, but another from Surovell did. 

His would give the speaker of the House or the Senate majority leader, and chairs of the House Appropriations Committee and Senate Finance and Appropriations Committee, standing in court proceedings when the governor is found not to have followed the law, which was the case in the RGGI withdrawal, or has declined to disburse funds as the law directs. 

“In the event that our governor continues to choose to not follow the RGGI law, among other things, and who knows what other laws he’s not going to follow seeing that across the (Potomac) River there’s this whole new theme of the Constitution and the laws don’t apply,” Surovell said, referring to the Trump administration. “We want to make sure that we have the ability to defend that law that we pass in the body and this budget.”

In response, Sen. Minority Leader Ryan McDougle (R-Henrico) took exception to Surovell’s amendment, saying in regard to Trump that “positive things are going on” with bordering countries working to stop the flow of fentanyl into the U.S. Whether certain officials in Virginia should have standing in lawsuits, he added, “is already established in the courts.”

“What this will do is make our job even more difficult and will give one individual, not the body, the ability to make decisions,” McDougle said, referring to positions chosen by the chambers.”