TheVermontHouse of Representatives passed a major energy bill today to expandVermont’s use of renewable energy, decrease its greenhouse gas emissions, and increase its energy independence. Opponents of the bill maintain that it will increase electric costs to Vermont customers, while moving the renewable energy credits to other New England states.
The bill,H 468,sets out a target of renewable energy to be 75 percent of the state’s total power portfolio by 2032.The Department of Public Service estimates the bill will bring in more than half a billion dollars in capital investment in energy generation projects to the state.
‘Vermont’s energy portfolio is already made up of 59 percent renewables. This bill will continue the development of the state’s renewable power market by encouraging energy entrepreneurship,’ said Speaker Shap Smith. ‘It’s good for our environment, createsVermontjobs, and ultimately it’s good for our economy.’
With passage of H 468,Vermontwill join the otherNew Englandstates by establishing a renewable portfolio standard (RPS). Vermont’s RPS will require the power portfolios ofVermontutilities to be made up of 35 percent renewable energy by 2032.Ten percent of that amount must be small distributed generation projects, under 5 megawatts, to take pressure off the state grid and help avoid costs associated with transmission upgrades. Utilities will meet this requirement over time, which will allow them to continue to sell tradable ‘Renewable Energy Certificates’ in decreasing amounts over the next 20 years to help cushion the rate impact.
The bill also expands the state’s first-in-the-nation standard offer program, which provides long-term, stably priced contracts for community-scale renewable energy projects under 2.2 megawatts in size.H 468 will raise the current statewide cap of 50 megawatts to a total of 150 megawatts over the next ten years, at a rate of 10 megawatts per year.
Critics say the legislation will have an impact on electricity bills in Vermont.
Representative Margaret Cheney, vice chair of the House Committee on Natural Resources and Energy, said the bill would have an average rate impact of 4.3 percent for utility customers in 2025.
Cheney said the measure lays the groundwork for the state to move toward more renewable energy.
‘It sets the pace for next 20 years,’ Cheney said. ‘It does so in tandem with other New England states. It doesn’t happen overnight. It’s very sensitive to any impact on electric rates. It’s deliberate, balanced and some would say slow.’
RepresentativeHeidi Scheuermann, who voted against the bill said, ‘I believe the return in the bill is not worth the costs.’
The estimated 2 percent decrease in carbon emissions as a result of more renewable energy is not worth the rate hike, she said.
The bill would also expand the standard offer program, which allows small in-state projects to lock in a set rate.
Environmental groups have generally supported the idea of a renewable portfolio standard.
One outspoken critic of the state’s existing renewable energy program says it keeps up bad habits.
Kevin Jones, smart grid project leader at the Institute for Energy and the Environment at Vermont Law School, said the bill would keep a program in place that encourages utilities to buy energy from renewable projects but allows them to sell the renewable attributes or credits that come with the power to other states.
While utilities say selling these renewable energy credits helps keep rates down, Jones said it forces Vermonters to buy expensive power that subsidizes states like Massachusetts and Connecticut to meet their goals. Once the credits are sold, power from a renewable source is no longer considered ‘green’ under a regional accounting program.
Under the current renewable energy program in Vermont, utilities sell the majority of the renewable energy credits to Connecticut and Massachusetts.
Campaign for Vermont Founder Bruce Lisman said in a statement that the billas passed will have significant negative impacts on electric rates and cost competitiveness. He said IBM shared its cost projection analysis prepared by Green Mountain Power and it shows the company’s electric bill rising by $5 million to $7million per year by 2032.
"Since its inception, Campaign for Vermont has been asking what the state's proposed energy plan will cost ratepayers. Today, one important consumer and employer has figured it out. We learned that IBM, the state's largest private employer, will pay an additional 5 to 7 million dollars a year if H 468, the renewable power bill passes the Legislature. Talk about sticker shock! Right now IBM pays a $36 million electric bill. That's a 16-20 percent increase in the cost of power. This is unacceptable and proof that H 468 is a jobs loser.
"IBM is the economic lynchpin of Chittenden County, Vermont's strongest jobs sector. If Montpelier forces IBM to cut jobs in Vermont as a result of this law, even when warned of the adverse consequences, it will be one more sign that Montpelier is more interested in pleasing special interests than in providing shared prosperity for all Vermonters."
Renewable Energy Vermont had a positive take on the House passage of 468.
REV stated: "This bill sets Vermont on a path to continue growing our renewable energy economy, creating good jobs and keeping Vermonters' hard earned dollars local. From metal workers and electrical board manufacturers to installation contractors and skilled laborers, local renewable energy means local work.
"The reach of our renewable energy businesses continue to expand throughout Vermont's economy. As a state, we simply cannot let the new energy economy pass us by. This bill helps assure that does not happen.
"Additionally, this bill sets a directive to help save Vermonters money and energy by easing transmission constrained areas. This will help reduce our use of dirty power during peak load hot summer days, reduce the waste of energy from line loss caused by importation of power from far away, and lessen the need for expensive transmission upgrades.
"Finally, the bill puts in place steps towards a 'Total Energy Standard,' where our energy planning starts to look at power, heating and transportation needs.
"While we hope to continue to strengthen and improve this bill through the legislative process, this is an excellent step toward a more renewable energy future for our state."
H 468 passed the House 91-46.It now moves on to the Senate for its consideration.
H.468: An act relating to a renewable portfolio standard and the Sustainably Priced Energy Enterprise Development Program
Date
Question
Total
Yes
Total
No
Total
Absent
Pass/
Fail
Jrn.
Page
03/21/2012
Shall the bill pass?
91
46
12
Pass
Member
Vote
Acinapura of Brandon
Nay
Ancel of Calais
Yea
Andrews of Rutland City
Yea
Aswad of Burlington
Absent
Atkins of Winooski
Yea
Bartholomew of Hartland
Yea
Batchelor of Derby
Nay
Bissonnette of Winooski
Yea
Bohi of Hartford
Yea
Botzow of Pownal
Yea
Bouchard of Colchester
Nay
Branagan of Georgia
Nay
Brennan of Colchester
Nay
Browning of Arlington
Nay
Burditt of West Rutland
Absent
Burke of Brattleboro
Yea
Buxton of Tunbridge
Yea
Campion of Bennington
Yea
Canfield of Fair Haven
Yea
Cheney of Norwich
Yea
Christie of Hartford
Yea
Clark of Vergennes
Nay
Clarkson of Woodstock
Yea
Condon of Colchester
Nay
Conquest of Newbury
Yea
Consejo of Sheldon
Nay
Copeland-Hanzas of Bradford
Yea
Corcoran of Bennington
Yea
Courcelle of Rutland City
Yea
Crawford of Burke
Nay
Dakin of Chester
Yea
Davis of Washington
Absent
Deen of Westminster
Yea
Degree of St. Albans City
Nay
Devereux of Mount Holly
Nay
Dickinson of St. Albans Town
Nay
Donaghy of Poultney
Nay
Donahue of Northfield
Nay
Donovan of Burlington
Yea
Eckhardt of Chittenden
Nay
Edwards of Brattleboro
Yea
Ellis of Waterbury
Absent
Emmons of Springfield
Yea
Evans of Essex
Yea
Fagan of Rutland City
Nay
Fisher of Lincoln
Yea
Frank of Underhill
Yea
French of Randolph
Yea
French of Shrewsbury
Yea
Gilbert of Fairfax
Yea
Grad of Moretown
Yea
Greshin of Warren
Nay
Haas of Rochester
Absent
Head of South Burlington
Yea
Heath of Westford
Yea
Hebert of Vernon
Nay
Helm of Fair Haven
Yea
Higley of Lowell
Absent
Hooper of Montpelier
Yea
Howard of Cambridge
Yea
Howrigan of Fairfield
Nay
Hubert of Milton
Nay
Jerman of Essex
Yea
Jewett of Ripton
Yea
Johnson of Canaan
Nay
Johnson of South Hero
Yea
Keenan of St. Albans City
Yea
Kilmartin of Newport City
Nay*
Kitzmiller of Montpelier
Yea
Klein of East Montpelier
Yea
Koch of Barre Town
Nay
Komline of Dorset
Nay
Krebs of South Hero
Yea
Krowinski of Burlington
Yea
Kupersmith of South Burlington
Yea
Lanpher of Vergennes
Yea
Larocque of Barnet
Yea
Lawrence of Lyndon
Nay
Lenes of Shelburne
Yea
Leriche of Hardwick
Yea
Lewis of Berlin
Nay
Lewis of Derby
Nay
Lippert of Hinesburg
Yea
Lorber of Burlington
Absent
Macaig of Williston
Yea
Malcolm of Pawlet
Yea
Manwaring of Wilmington
Yea
Marcotte of Coventry
Nay
Marek of Newfane
Yea
Martin of Springfield
Yea
Martin of Wolcott
Yea
Masland of Thetford
Yea
McAllister of Highgate
Absent
McCullough of Williston
Yea
McFaun of Barre Town
Nay
McNeil of Rutland Town
Nay
Miller of Shaftsbury
Absent
Mook of Bennington
Yea
Moran of Wardsboro
Yea
Morrissey of Bennington
Absent
Mrowicki of Putney
Yea
Munger of South Burlington
Yea
Myers of Essex
Nay*
Nuovo of Middlebury
Yea
O'Brien of Richmond
Yea
O'Sullivan of Burlington
Yea
Olsen of Jamaica
Nay
Partridge of Windham
Yea
Pearce of Richford
Nay
Pearson of Burlington
Yea
Peaslee of Guildhall
Yea
Peltz of Woodbury
Yea
Perley of Enosburgh
Nay
Poirier of Barre City
Yea
Potter of Clarendon
Yea
Pugh of South Burlington
Yea
Ralston of Middlebury
Yea
Ram of Burlington
Yea
Reis of St. Johnsbury
Nay
Russell of Rutland City
Yea
Savage of Swanton
Nay
Scheuermann of Stowe
Nay
Shand of Weathersfield
Yea
Sharpe of Bristol
Yea
Shaw of Pittsford
Nay
Smith of Morristown
Not Voting
Smith of New Haven
Nay
South of St. Johnsbury
Nay
Spengler of Colchester
Absent
Stevens of Shoreham
Yea
Stevens of Waterbury
Yea
Strong of Albany
Nay
Stuart of Brattleboro
Yea
Sweaney of Windsor
Yea
Taylor of Barre City
Yea
Till of Jericho
Yea
Toll of Danville
Yea
Townsend of Randolph
Yea
Trieber of Rockingham
Absent
Turner of Milton
Nay
Waite-Simpson of Essex
Yea
Webb of Shelburne
Yea
Wilson of Manchester
Yea
Winters of Williamstown
Nay
Wizowaty of Burlington
Yea
Woodward of Johnson
Nay
Wright of Burlington
Yea
Yantachka of Charlotte
Yea
Young of Glover
Nay
Zagar of Barnard
Yea
* Member explained vote on floor. See the House Journal for the date in question.
Source: Vermont Speaker of the House. Vermont Business Magazine. Alan Panebaker of vtdigger.org contributed to this report. 3.21.2012