by Steve Haner
Governor Glenn Youngkin (R) is seeking to get Virginia out of a regional carbon tax compact, yet inexplicably has offered supporters of the Regional Greenhouse Gas Initiative (RGGI) a path to protect it.
His proposal would remove the tax on monthly electric bills which has galvanized opposition and move the cost of the mandated carbon allowances into the base rates of Dominion Energy Virginia. If somebody told Youngkin that was a benefit to the taxpayers, he was misled. It still costs us money.
Who benefits from his move, especially if it becomes a long-term approach? The utility does, as it is still using ratepayer money, and also the various special interest spending programs now being supported with the RGGI taxes. The state collected $228 million last year and will likely collect $300 million in 2022.
The proposal is in the form of a budget amendment to House and Senate Bills 29, the so-called “caboose” bill that makes amendments to the budget now in force. As a language amendment to the caboose bill, if adopted, it technically would expire as of June 30, 2022.
The danger, and do not think for a moment I’m the first to see this, is that the amendment could migrate to House and Senate Bills 30, the new budget, and be in force from July 1, 2022, to June 30, 2024. By then, the RGGI tax costs would be established as a regular cost of doing business. It would reduce the excess profits that fund the customer rebates like those the State Corporation Commission just ordered and reduce the chance future excess profits might spark a rate cut. Continue reading →