A New Era for the Old Dominion: Strategies for the Virginia State Government to Lead an Equitable & Ambitious Energy Transition

Abstract

In August 2022, President Biden signed the Inflation Reduction Act, which mobilizes nearly $1 trillion in federal investment, primarily for decarbonization and a clean energy transition.1 Alongside other federal legislation, this marks a transformation in the approach to economic policy in the United States: it is a move away from neoclassical economic policy and a move towards mission driven industrial policy. In this era of transition, the emerging clean energy industry faces a particular legal regime where much of the authority over and regulation of our energy system happens at the state level. Recognizing this dynamic, this thesis is a case study on the Virginia state government and aims to analyze and identify effective policy tools to reduce GHG emissions at the state level, including transitioning away from fossil fuel power generation, increasing energy efficiency and load flexibility, and stimulating clean energy generation. This case study is structured in three parts: (1) an institutional analysis and energy profile of Virginia, (2) a history and analysis of energy regulation in Virginia, and (3) a climate and energy policy analysis. I conclude with five recommendations for state leadership to support the emerging clean energy industry and a climate transition that prioritizes the health, wellbeing, and economic gains for Virginia communities.