by Steve Haner

Governor Abigail Spanbergerโs proposed amendment to the Regional Greenhouse Gas Initiative rebate system will give most but not all residential customers of Virginiaโs rural electric cooperatives a shot at some cash back. The Northern Virginia Electric Cooperative is still in the RGGI wilderness.
The feeding frenzy over the RGGI carbon tax dollars, predicted when a carbon allowance auction reached a record $35 per ton of emitted CO2 last month, is well underway and getting very complicated, perhaps too complicated. The state is likely to reap $800 million to $1 billion or more per year in RGGI taxes at that $35 per ton carbon price.
Spanbergerโs new language, due for a vote when the Assembly comes back on Monday, also precludes any rebate to a non-Virginia customer. That presumes there will be utility customers deemed โnon-Virginianโ who are paying the utility a direct RGGI tax on their bills but will not be eligible for rebates.
Do they not teach the Commerce Clause of the U.S. Constitution anymore? Can a state law discriminate that way against people or a business in another state? (I cannot find a link directly to the amendment she put out last night, so it is set out at the end of this column.)
Spanberger and her fellow Democrats in the Assembly have gone from claiming that RGGI, with its carbon dioxide tax, cap and trade approach would lower customer costs, to admitting customers foot the bill. The generation companies that must pay the tax on the coal, oil, and natural gas they use simply pass it along to customers somehow.
(more…)











