House passes Herring bill to rejoin regional carbon-trading program

Bill to rejoin carbon market program heads to Senate after 63-35 vote; Youngkin withdrew Virginia from RGGI during his administration

The Virginia House of Delegates on Tuesday passed House Democratic Leader Charniele L. Herring’s bill to rejoin the Regional Greenhouse Gas Initiative, a carbon market program tied to energy efficiency investments, affordable housing upgrades, and flood preparedness.

House Bill 397 passed on a 63-35 vote and now heads to the Senate. Alexandria’s full House delegation — Herring, Del. Elizabeth Bennett-Parker, and Del. Alfonso Lopez — voted in favor.

“Leaving RGGI harmed Virginian families,” Herring said in a statement. “Rejoining RGGI will help lower energy costs long-term and expand energy-efficient housing, as well as prepare and protect communities for flooding events. I look forward to the Senate passing this legislation and sending it to Governor Spanberger’s desk for her to sign.”

The bill would direct the director of the Department of Environmental Quality to establish, implement and manage an auction program to sell allowances into a market-based trading program consistent with RGGI and the Clean Energy and Community Flood Preparedness Act. Under current law, the director is authorized but not required to do so. The measure also requires certain regulatory actions necessary for Virginia to rejoin the program.

Under the bill, auction revenue would be split among several priorities: 50% for low-income energy efficiency programs administered by the Department of Housing and Community Development, 45% for a fund to assist localities affected by recurrent flooding and sea level rise, 3% for administrative costs and statewide climate planning, and 2% for DHCD to administer the energy efficiency programs.

Gov. Glenn Youngkin withdrew Virginia from the multistate cap-and-trade program during his administration. Rejoining RGGI has been a priority for Alexandria’s General Assembly delegation. Lopez, who co-chairs the legislature’s policy committee on natural resources and environmental policy, told City Council in November that Gov. Abigail Spanberger could rejoin through regulatory action without requiring new legislation. Herring’s bill takes a legislative route, requiring DEQ to act.

The vote also comes as Alexandria’s City Council has made housing affordability and flood resilience central priorities in its 2026 Legislative Package. Nearly 60% of city residents rent, and almost half of those households are cost-burdened. The package, adopted in December, warns that federal funding losses will affect thousands of Alexandria residents.

The bill cleared the House Agriculture, Chesapeake and Natural Resources Committee on a 15-7 vote Jan. 28 after a subcommittee recommended it with a substitute on a 7-3 vote.