Dear John,

Our housing and community development work often focuses on statistical measures like the number of units created, the capital stack needed to finance development, or the area median income of households served. But the true indicator of our work’s success is the quality of life for residents who live in the communities we create.

Social and environmental conditions in neighborhoods can have profound impacts on our housing and quality of life. That’s why the Regional Greenhouse Gas Initiative (REGGI) that Virginia joined in 2020 takes us a step closer to realizing our goal of healthy and sustainable communities. It’s unfortunate that Gov. Youngkin wants to get rid of it.

REGGI is a cooperative effort by 11 Mid-Atlantic and New England states designed to limit the carbon dioxide emissions from the power sector. It’s already helping Virginia drive down greenhouse gas emissions, and improve air quality and public health. In its first year, through the process of auction emission allowances, REGGI generated $228 million in revenue for critical investments across Virginia to reduce energy bills for affordable housing, and provide enhanced measures for community flood prevention and protection efforts. Ninety-five percent of the auction proceeds are allocated to two areas of concern: communities threatened by recurrent flooding and sea level rise (45 percent) and energy efficiency grants to low-income individuals, families and local programs that help vulnerable communities (50 percent).

The Southern Environmental Law Center has put together a helpful fact sheet detailing the benefits to Virginians for their participation in REGGI. We are sharing some of those facts here:

Energy-efficient affordable housing

Virginia has a shortage of 200,000 affordable homes. Of the families who qualify for affordable housing, only 4 out of 10 can find a unit. This shortage affects all of Virginia, both rural and urban areas. Ensuring affordable housing is energy efficient is an investment in housing stability of low-income residents that protects them from being forced to move when rents increase due to energy bills they can’t afford.

Why do we need these funds?

Virginia’s RGGI funds are being used to build an even greater number of energy efficient affordable housing units than would otherwise be feasible with existing funding. Developers must meet strict energy efficiency requirements by using better insulation, airtight windows, and more efficient HVAC systems and water heaters for new construction, adaptive reuse and rehabilitation projects.

In the initial round, the state awarded 11 affordable housing grants representing 705 energy-efficient units. In the second round of applications, 24 proposals received approximately $21 million in energy efficient grants, representing 1,611 units located in 18 different jurisdictions in urban and rural areas across the Commonwealth.

Community Flood Preparedness Fund

Communities across the Commonwealth are being impacted by flooding, and Virginia’s RGGI proceeds represent the first dedicated stream of state funding to help localities prevent and protect against the significant damage it causes. Flooding is the costliest and most common natural disaster in Virginia, and significant investments are needed for localities to prevent damage from this growing threat.

Did you know?

Flood damages in Virginia’s coastal region will increase from $400 million to $5.1 billion a year over the next 60 years unless we act now;
Inland communities also deal with repeated flooding. In recent years, southwestern Virginia has been hit hard by recurrent flooding, including devastating flooding in Buchanan County this summer that destroyed 20 homes and tragically took a life. Buchanan received a grant to develop a resilience plan that will identify specific projects to help prevent damage from flooding.

How is it working?

In the initial round of grants, 19 projects were awarded funding at a total of $7.8 million. These projects will help communities all across the Commonwealth, including in Virginia Beach, Richmond, Norfolk, Portsmouth, Buchanan County, Northampton County, Hampton, Charlottesville, Alexandria, Chesapeake, Suffolk, Winchester, the Middle Peninsula, and the Eastern Shore. In the second round of grants announced in December 2021, the state awarded $24.5 million across 30 different projects, greatly expanding the communities that are directly benefiting from RGGI funds.

On his first day in office, Governor Youngkin issued (and later rescinded) an Executive Order to remove Virginia from REGGI, citing the cost to taxpayers. (Accurate costs estimates still have not been provided) The order was withdrawn when the Governor learned that he could not unilaterally take this action. Now there is an amendment attached to his legislative agenda that “Begins the process of removal from the Regional Greenhouse Gas Initiative.”

Northern Virginia Affordable Housing Alliance and Faith Alliance for Climate Solutions are collaborating to advocate for REGGI and the much-needed investments it provides. Given the substantial benefits low and moderate income Virginians are receiving that result in more energy-efficient housing and mitigation of flooding and sea level rise impacts that can devastate communities, we think a cost benefit analysis weighs in favor of staying the course. These are outcomes that benefit all Virginians. The success of our efforts will depend upon the broad-based, grass-roots coalitions that we form to support communities that are diverse, healthy, and prosperous. We believe REGGI is worth fighting for. Come join us!

In partnership,

Michelle Krocker, Executive Director, Northern Virginia Affordable Housing Alliance
Scott Peterson, Vice-Chair, Faith Alliance for Climate Solutions