by Ansley Bloomer, Assistant Director, Renewable Energy Vermont For every dollar we spend on fossil fuel heating in Vermont, $0.78 is sent out of state. What if, instead of sending 131 million dollars out of state a year on these fuels, we spent even just half of that on locally and sustainably produced fuels where every penny of every dollar stays here, locally? This is less of a hypothetical question, and more of reality, as innovative and resilient working Vermonters are doing just that. With the passage of a sales and use tax exemption on advanced wood heating systems, Vermont is taking steps towards re-starting a value chain that will revitalize our rural communities and preserve Vermonters’ relationship with the working landscape.
Vermont is 80% covered in forests, which require maintenance and stewardship by licensed foresters to keep them healthy; however, Vermont foresters have been stricken by a regional collapse of low-grade wood markets. Forestry operations aren’t cheap, and low-grade wood sales have provided a funding stream and kept markets viable. In years past, a forester could easily sell that wood, which would make its way to a pulp mill in New England, however, with the shuttering of many of these mills, the low-grade wood market has all but collapsed.
This market shift has sent ripples up and down the supply chain, resulting in the loss of well-paying trade jobs and disadvantaging our rural economy. In an effort to preserve the Vermont way of life, this problem has been taken as an opportunity to fulfill commitments our state has made on improving our climate and increasing our energy independence.
Renewable Energy Vermont’s 5-year plan for advanced wood heating outlines how Vermont can redirect this low-grade wood towards thermal energy and help keep forests as forests, meeting our clean energy goals. Advanced wood heating is a new take on a long Vermont tradition of meeting with wood that requires less effort of homeowners. These advanced wood systems, either boilers or furnaces, are completely automated and run on wood pellets or chips. After making the switch, advanced wood system owners notice no difference between the traditional fuel systems they were using; they just need to set a thermostat. Fuel delivery is the same, a delivery truck pumps the wood into a hopper or a silo, and when you start to feel a little chilly, and the thermostat kicks on, the system pulls from that reserve keeping you warm and cozy through our Vermont winters. You won’t notice a difference in terms of operation, however, you will be saving money, and making a difference by supporting a local value chain that starts in our forest and ends at your now warm toes. One of the recommendations of the 5-Year Plan was a sales and use tax exemption was taken up by legislative champions on the Senate Committee on Agriculture Senators Bobby Star and Anthony Pollina as well as Representative Robert Helm in the House. Throughout the legislative session, this solution received tri-partisan support and eventually found its way to the Governor’s desk.
This exemption, which was included in a rural economic development bill signed into law and in effect as of July 1st will help break down the upfront cost of advanced wood heating for Vermonters. Additionally, $6,000 in incentives are currently available from Efficiency Vermont and the Vermont Clean Energy Development Fund, plus your utility might have an incentive for you too. Vermonters can now save upwards of $8,000 on a whole home, clean advanced wood heating system! More details can be found at www.revermont.org.
So, are you ready to make a difference by choosing clean, local wood heat? You can support working Vermonters, help achieve our state’s clean energy goals, and save money by using local wood energy. With the new sales and use tax exemption, combined with incentives available through Efficiency Vermont and the Clean Energy Development Fund, there has never been a better or easier time to heat with local wood.