Democratic Virginia Gov. Ralph Northam signed the Virginia Clean Economy Act (VCEA) into law, which requires the state to transition from fossil fuels to clean, carbon-free electricity, among other things. With this act, Virginia became the first Southern state to embark on a clean-energy transition. It also became one of the nations leading states on a clean-energy policy.
But what does the bill do? It is designed to squeeze emissions out of the electricity system once and for all. By 2050 there will be zero fossil fuels used in power generation.
How? There is a plan outlined in the bill, called the renewable portfolio standard (RPS), which requires the state’s two big investor-owned utilities – Appalachian Power Company (APCO) and Dominion Energy – to obtain a set percentage of their energy from carbon-free sources. Furthermore, Dominion will have to be carbon-free by 2045 and APCO by 2050.
To make sure they’ll be able to achieve the goal, the RPS contains a series of interim targets: 58% clean power by 2030, 73% by 2035, and 88% by 2040. Also, all of the coal plants must shut down by 2030 and biomass plants by 2028.
With the passing of the bill, Virginia also became a part of the Regional Greenhouse Gas Initiative (RGGI, a nine-state carbon trading network). State agencies have to develop a carbon cap-and-trade system to enter RGGI.
Another thing VCEA does is hold costs down for electricity bills to protect low-income and vulnerable communities. It will do so with a Percentage of Income Payment Program that sets a limit on the cost of electricity to a fixed percentage of their income.
Last but not least, it requires Dominion and APCO to construct or acquire offshore wind, rooftop solar, and energy storage projects, a certain amount of each category by 2035. As part of the plant to help low-income families, the utilities must give local workers from disadvantaged communities priority for jobs. And, if people install rooftop solar on their homes, they can sell the electricity to the grid.
And while the transition may be expensive, it will save a substantial amount of money in the long run, and our planet. State Sen. Jennifer McClellan of Richmond, said:
The cost of doing nothing is staggering. Yes, this is a big bill, but it does some very important things that Virginia is far, far behind in doing. … Sometimes change is necessary to meet a greater good.
According to an Advanced Energy Economy analysis, the bill will create jobs, lower rates, and boost the state’s GDP. California, Chicago, Hawaii, Maine, Nevada, New York, New Mexico, Puerto Rico, Washington, and Washington DC have all passed similar legal requirements already. Other states, like Oregon, will be joining soon.
