One year ago, the Biden administration passed the historic Inflation Reduction Act (IRA) to supercharge our nation’s transition to a clean energy economy. With more than 100 programs and billions of dollars available to help accelerate our commonwealth’s transition to a clean energy future, Virginia must fully embrace these programs to become a climate leader and compete for jobs in the clean economy.
Virginia has taken critical steps in its clean energy transition to make communities more resilient to climate change. In 2020, legislators passed the Virginia Clean Economy Act, committing to a zero-carbon-emissions electricity grid by 2050. We’ve joined the Regional Greenhouse Gas Initiative (RGGI) — a multi-state program in which power companies reduce and pay for the pollution they create — which has generated more than half a billion dollars for the state in just two years of participation. This funding is used to invest in energy efficiency upgrades and flood resilience projects in Virginia, such as improving stormwater infrastructure or implementing flood prevention measures.
The president’s clean energy plan will amplify those efforts with increased funding for infrastructure projects, clean energy initiatives, climate resilience and other programs that address the climate crisis and create good-paying, family-sustaining jobs. Clean energy jobs are growing faster than fossil fuel jobs, with Virginia having 92,315 in 2023, and young people overwhelmingly want to work in industries that are serious about addressing the climate crisis.
Simply put, Virginia is just beginning to see the funding opportunities flowing from these generational investments.
For example, the Biden administration’s clean energy plan is making buying electric vehicles (EVs) easier and cheaper, with thousands in tax credits to buy new and used EVs. The plan includes tax credits for electric heavy-duty trucks, such as those produced at the Volvo Trucks New River Valley Plant in Dublin, Virginia. Switching to zero emission vehicles will help lower air pollution on our highways and save Americans money at the pump.
To help power the new EVs, the commonwealth is planning an EV charging network across the state, funded with $100 million from the Bipartisan Infrastructure Law. Using these resources to build a robust EV charging network will increase EV vehicle adoption in Virginia, driving down climate pollution, creating jobs and helping Virginia reach its goal of 100% EV sales by 2035. Notably, EVs are expected to reach price parity with gas-powered vehicles by the end of this year.
Virginia’s electric power sector will also benefit from federal investments, which will help build the clean, reliable and affordable power grid of the future. The clean energy plan modified and extended tax credits for renewable energy projects, such as building wind farms and solar arrays. States with strong, binding pollution limits like RGGI will have greater incentives to use these tax credits to their advantage.
Virginia must embrace these federal dollars for necessary electric power sector investments. It only takes one extreme weather event, such as the unexpected deep freeze in Texas earlier this year, to wreak havoc on older, existing power grids. Analysis from the Environmental Defense Fund also shows that federal programs such as the IRA will spur at least 10 times the amount of investment from the private sector.
It’s encouraging to see many state agencies working to secure federal funds to invest in Virginia. Investing wisely in the clean economy to benefit all Virginians isn’t a partisan issue. We see elected leaders across party lines embrace hometown projects that bring jobs and other benefits. However, not everyone is on the same page. Despite overwhelming support for RGGI and clear pollution reductions, Gov. Glenn Youngkin is attempting to withdraw from this proven program.
This is an all-hands-on-deck moment. We need Youngkin, the General Assembly, business leaders, and local officials working in unison to ensure these crucial funds are accessible and easy to apply for, especially for businesses, counties, towns, schools and other community organizations. Virginia’s clean energy future depends on it.
Mandy Warner of Fairfax is the director of climate and clean air policy for the Environmental Defense Fund.
