| Action Summary | Governor Spanberger approved amendments to Virginia’s 2024-2026 Biennial Budget under House Bill 29 (HB 29) on February 20, 2026. Section R of HB 29’s Item 365 reads as follows “All agencies or authorities of the Commonwealth with responsibilities identified in § 10.1-1330 of the Code of Virginia, shall take all actions necessary to rejoin the Regional Greenhouse Gas Initiative, as defined in § 10.1-1329 of the Code of Virginia, and resume participation therein.” Specifically, required actions include “repealing or otherwise nullifying the final regulation titled 9VAC5-140, Regulation for Emissions Trading Programs, published in the Virginia Register of Regulations on July 31, 2023, no later than 90 days from the effective date of this act” in addition to “reissuing or otherwise reinstating the final regulation titled 9VAC5-140, Regulation for Emissions Trading Programs, published in the Virginia Register of Regulations on August 3, 2020, including any amendments necessary to account for the time such regulation was not in effect, no later than 90 days from the effective date of this act.” Further, HB 29 establishes that “[a]ny regulatory actions necessary to effectuate the requirements of this item are hereby exempted from the provisions of the Virginia Administrative Process Act (§ 2.2-4000 et seq.)” and notes that the Department of Environmental Quality “shall complete such regulatory actions without further action by the State Air Pollution Control Board." This was enacted as Chapter 7 of the 2026 Acts of Assembly. In order to meet the requirements of Chapter 7 of the 2026 Acts of Assembly noted above, this regulatory action creates a new Part VIII that reinstates the Virginia CO2 Budget Trading Program Regulation language previously found in the repealed Part VII. The Virginia CO2 Budget Trading Program Regulation is the mechanism through which the Regional Greenhouse Gas Initiative is implemented in Virginia. Amendments to the regulatory text have been made to account for the time Virginia was not participating in the Regional Greenhouse Gas Initiative and to re-enter the Regional Greenhouse Gas Initiative. These amendments include: · Specifying Virginia's CO2 Budget Trading Program was not active from January 1, 2024, to June 30, 2026; · Creating a one-time six-month control period from July 1, 2026, to December 31, 2026; · Adjusting the base budget and allowances for calendar year 2026 to reflect participation in the program for a six month period; and · Including a crosswalk of repealed sections and reinstated sections to maintain consistency between citations in existing permits and the reinstated regulations. |
| Chapters Affected | Only affects this chapter. |
| Executive Branch Review | This Action is exempt from Article 2 of the Administrative Process Act, but falls within the Executive Branch and will be reviewed by the Governor's Office. |
| RIS Project | Yes [8592] |
| Associated Mandates |
Bill: HB29 (2026)
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| New Periodic Review | This action will not be used to conduct a new periodic review. |
| Stage ID | Stage Type | Status |
|---|---|---|
| 11159 | Final | Governor's office review in progress. |
| Name / Title: | Julia Wack / Regulatory Analyst |
| Address: |
1111 E. Main Street Suite 1400 Richmond, VA 23219 |
| Email Address: | Julia.N.Wack@deq.virginia.gov |
| Phone: | (804)432-3581 FAX: ()- TDD: ()- |