Report calls for costly government mandates to enforce Virginia’s clean energy goals

By EPN Staff

A new report from George Mason University (GMU) researchers recommends costly, state-directed mandates for Virginia to meet its clean energy targets.

The 148-page report lays out a potential roadmap for the next four to 10 years to achieve state-imposed goals like those in the Virginia Clean Economy Act (VCEA), which requires Dominion Energy—the state’s largest utility—to eliminate fossil fuels by 2045, which comes with significant financial implications. 

Why it matters

Many of the GMU report’s recommendations would force utilities and consumers to comply with top-down, government-driven energy mandates. It calls for:

• Virginia to “mandate and assist its utilities in increasing the marketing, delivery, processing, and participation of demand response programs with its customers.”
• A “more forceful mandate” for utilities to deploy more distributed energy resources  (DERs). 
• New tax credits and rebates (state investment tax credits, rooftop PV rebates, EV purchase rebates of up to $5,000) to achieve targets.
• The re-entry into the Regional Greenhouse Gas Initiative (RGGI).
• A publicly funded “energy education” campaign and mandatory local energy plans – all aimed at selling or enforcing the state’s 100%-renewable goals. 

One of their top strategy recommendations is to “educate communities about the cost – and health – benefits of cleaner, diversified energy generation and demand efficiency to achieve broad and long-lasting support for these policies.”

Yes, but

The report acknowledges “attempts to mandate state-wide control will likely only reduce public support for large solar projects,” particularly in rural areas.

To solve this, it recommends concentrating new solar generation in Northern Virginia – where demand is growing in part because of the proliferation of data centers there – before attempting to expand into rural communities.

It also suggests small-scale solar projects on state-owned properties – though funded by taxpayers through a mix of tax credits, rebates, grants, and revolving loan funds.

Additional details

The RGGI is a multi-state partnership meant to lower carbon emissions through a cap-and-trade system. Virginia Gov. Glenn Youngkin pulled the state out of the RGGI in 2022, because it was costing ratepayers too much money, but the issue remains tied up in court.

Virginia's participation in RGGI, as recommended by the GMU report, would add another layer of cost to the state's energy landscape. The Thomas Jefferson Institute estimates that rejoining RGGI could add approximately $500 million per year to Virginians' electricity bills.