A holiday gift was delivered early to Virginia electricity ratepayers. Governor-elect Glenn Youngkin announced that he will withdraw Virginia from the highly controversial Regional Greenhouse Gas Initiative (RGGI). This is a tangible example of how elections have consequences. It also speaks volumes about the integrity of our Governor-elect because this was a campaign issue that he raised in his September 30, 2021 letter to our membership.

“RGGI describes itself as a regional market for carbon, but it is really a carbon tax that is fully passed on to ratepayers. It’s a bad deal for Virginians. It’s a bad deal for Virginia businesses, and as Governor, I will withdraw us from RGGI by Executive Action.”

Immediately following this announcement, Speaker-designee Todd Gilbert made the following statement: "The cost of RGGI to Virginia families and businesses is very real, while the impact of RGGI on climate change is negligible at best..."

The VMA can affirm the accuracy of these statements because we have led a 2.5 year battle fighting on behalf of our members in the General Assembly, at the Virginia Air Pollution Control Board, and in the Richmond District Court for RGGI relief. In fact, we expected that the RGGI tax would cost consumers nearly $280 million in 2022. As noted by the Thomas Jefferson Institute, the first RGGI allowance auction in 2021 set a price of $7.60 per ton of CO2 emitted, and by the fourth and final 2021 auction last week, that price had already risen to $13 per ton. An 83% jump in costs imposed on electricity consumers is simply unsustainable.

RGGI was sold to the public and elected officials as an inexpensive environmental benefit but has materialized as an expensive $3 billion tax scheme on families and businesses that makes Virginia less competitive for economic development and offers no defensible CO2 reductions that will not already result from the Virginia Clean Economy Act (a.k.a., Virginia Green New Deal). In fact, SCC Commissioner Judy Jagdmann opined in an August 4, 2021 SCC Rate Adjustment Clause Order, that:

"The VCEA plainly states that the RPS program requirements for Dominion shall be 100% by 2045. Thus, it remains unclear whether the significant cost required for participation in an additional cap-and-trade program - which is expected to cost customers billions of dollars - are necessary for Dominion's and Appalachian's ratepayers to bear in order to achieve the General Assembly's carbon reduction objectives."

This is the first positive step forward in rebalancing the Commonwealth's energy policies that puts consumers first. We can have a clean environment and affordable energy - these are not mutually exclusive ideas. In fact, the upcoming 2021 Virginia Natural Resources Scorecard ranked the Commonwealth's particulate matter emissions as the 15th lowest in the US beating many RGGI states. Additionally, Virginia's per capita energy-related carbon dioxide emissions were 12.7 metric tons in 2018. This level was better than the national average of 20.2 metric tons per capita and ranked 16th best in the country. The bottom line is that Virginia is already a national leader in carbon reduction without the VCEA or RGGI, and our air quality has never been better.

There will always be opportunities to make improvements in the environment, and manufacturers are committed to environmental sustainability. All energy consumers are also deserving of greater transparency in the development of energy regulation and protection from unreasonable costs. The VMA supports and appreciates Governor-elect Youngkin's decision to withdraw from RGGI and protect Virginia consumers from billions in electricity costs.

Industry's Advocate™ since 1922: Seeking Historical Documents and Pictures

The VMA celebrates its centennial anniversary in 2022. Our Centennial Planning Committee is hard at work preparing a year-long calendar of events aimed at celebrating the growth and sustainability of the manufacturing industry in the Commonwealth. Here's how you can help:

The committee is seeking historical documents and pictures from the past hundred years to help us create a digital history of the VMA and its relationship with Virginia manufacturing. If you or your company has any materials to share, please send them to Kimberly Noonan at [email protected].

The VMA will continue hosting weekly legislative updates during the 2022 General Assembly Session. Session starts on January 12 and is expected to end on March 12. The first meeting will take place January 10.

On Friday, December 3rd, the Safety & Health Codes Board voted against moving forward with the Virginia Department of Labor & Industry's Heat Illness Regulation. The vote was 5 Yes - 6 No, with 3 absentees. View the vote count here.

Learn more about this issue from the Jefferson Policy Journal: Heat Rule Gets Cold Shoulder >>>

MSI offers online OSHA 10 & OSHA 30 Training through our partnership with UL, a global safety science leader.

Visit msi.puresafety.com to learn more and register online today.

We are currently accepting applications for mentors and mentees. Applications are due by December 31st and there is no cost to participate.

Up to $15,000 in scholarship money will be awarded in 2022 to mentees who are participating in this program. Scholarships can be used to participate in one of the WiM National Educational Programs as well as access training on the WiM-VA/MSI Virtual Learning Center. Share the Mentoring Program link with your network and contact Kimberly Noonan with questions about scholarships!

VMAConnections: A B2B Service Provider Sourcing Center

VMA offers a search engine sourcing center to identify service providers that support industry in Virginia, including those that have workplace safety designations, industry certifications, and special supplier designations such as women-owned, minority-owned or veteran-owned. Find your match on VMAConnections.com.

With questions about these, or other available VMA Business Services, contact VMA Member Services Coordinator Kate Matherly for more information.

RICHMOND, VA - The Virginia Manufacturers Association (VMA) and Virginia Industry Foundation (VIF) published the 2021 Virginia Manufacturing Competitiveness Index. This report is published annually and benchmarks Virginia’s manufacturing sector against 49 other states based on 55 metrics divided into five categories: Business Climate, Workforce, Infrastructure, Innovation, and Economic Strength. Each metric is equally weighted, and no category has special weighting.

In 2021, the Commonwealth only improved its comparable performance in the category of Workforce. Business Climate, Innovation, and Infrastructure remained relatively static. However, Virginia lost ground in Economic Strength, dropping to 42nd place. Overall, the Commonwealth’s manufacturing competitiveness ranking improved from 11th to 9th most competitive.

Is Your Company Ready to Pursue International Sales? VEDP’s new online export readiness assessment helps Virginia businesses determine whether they are ready to begin exporting or expand into additional markets. The questions assist companies in systematically thinking through various components of export readiness. Visit their website to take the complimentary assessment and see your results.

Meeting Global Demand for Health IT Services - Harris Healthcare (Herndon, VA) sells a range of software tools to help hospitals, doctors, and nurses deliver medical services to patients safely and effectively. To grow its international sales, Harris Healthcare is developing partnerships with local technology companies or software resellers in each international market. To learn more, read their case study.

Exporting 101 Guide: Determining HS Codes - Harmonized System (HS) codes are a standardized numerical method of classifying traded products. Businesses need to know their product’s HS codes to determine tariff rates and complete shipping documents. The Exporting 101 guide has the steps and resources to determine HS codes.

Trade Mission to Chile & Peru – May 11 – 18, 2022

To view the full list of upcoming international trade missions and trade shows, please visit: https://exportvirginia.org/.

For the rest of 2021, VMA is recognizing the manufacturing leaders honored in Virginia Business' Virginia 500: The 2021 Power List. Follow us on Twitter for weekly shout-outs to the people that make Virginia's manufacturing industry the strongest it can be! Here's who we've recognized since our November newsletter:

The VMA is seeking someone proficient in Microsoft Dynamics to assist us in developing customized data analytics reports and webforms to better support members. If you know of someone who could help with this project, please contact Kelly Stevens at [email protected].