Past Policy Updates

Vermont Businesses for Social Responsibility calls upon the Governor to sign H.520 and ensure that this critical Climate Change legislation becomes law this session. We believe that conservation of energy, and development of renewable energy, are the means by which we can obtain energy independence and energy cost reduction.  We believe that short-term investments in conservation and renewable energy development will bring long-term savings and economic benefit.  Energy conservation is good for business. The programs in the bill are a unique combination of good energy policy, good economic development policy, and good environmental policy

H. 520 will help lead Vermont towards energy conservation and energy self-sufficiency
The bill will:

• Provide incentives for generation of renewable energy.
• Establish a wind energy production property tax that will help to bring wind power investments to VT.
• Require electrical utilities to increase their purchase of renewable energy.
• Raise the net Metering cap to 250kW, expand the number of net metering systems allowed (from 1% to 2%), and allow for full group net metering.
• Help people and businesses reduce use of heating fuels to save money by expanding the work of Efficiency Vermont to heating fuels.
• Increase the business solar tax credit from 7% to 30%.
• Require studies to identify ways to meet 25% of our total energy from farm and forest based resources (by 2025), and increase the use of biodiesel by the State Government.
  

The “All-Fuels” Utility is based on proven models and sound economic principles. It should be developed and funded immediately.
We need to bring down heating costs through conservation and efficiency, stop wasting dollars on wasted heat, and direct our spending to the benefit of Vermont and Vermonters.

• In 2005, Vermonters spent $250 million to heat their homes. This is more than double what most Vermonters pay for education through local taxes.1
• A report commissioned for the Department of Public Service (DPS) found that Vermonters could save 486 million dollars over the next 10 years if we increased the efficiency of our homes and businesses.2
• The same report found that there will be 4 dollars of benefit to Vermont for every dollar invested in conservation.

H.520 Will Keep Dollars In-state and Create jobs

• Instead of spending dollars on fuel from overseas we need to increase jobs in Vermont. With increased efficiency, 20-40 % of the dollars now flowing out of state for fuel oil could be kept in the local economy.3
• The jobs associated with weatherization and retro-fitting are decent, skilled jobs that can’t be outsourced. A study commissioned by the Vermont Buildings Efficiency Coalition found that a funded all-fuels utility program would create at least 180 new jobs.4
• The same study found the program would save businesses over $200 million and households almost $300 million.
• Efficiency Vermont programs to date have proven to be a sound investment of dollars. In 2005, the cost of saving electricity with Efficiency Vermont was approximately 3.6 cents per kWh.  The amount it would have cost to purchase that electricity was 9.6 cents.  In the current 3 year contract the Efficiency Utility will contribute $184 million in net economic benefits to the state.5

FYI Re: Funding

• There are many acceptable ways of funding this bill, some more palatable than others, and none easy. The important point is to get these programs up and funded as soon as possible----every day we wait we are wasting money and falling behind.
• The funding source in H.520 for the "all-fuels" utility is a graduated generating tax on large electricity generators (in lieu of the usual property tax) that would start in fiscal year 2009 and be fully implemented in fiscal year 2011.
• The tax on Yankee would be level with what was settled upon for the wind generation tax.  
• It was determined by the House that Yankee has been paying a lower property tax rate than other Vermont businesses, and that without changes they will be paying $ 1 million less in property taxes than they paid in 1999- despite their investment in capital improvements. 6
• We believe the funding source in H.520 is a fair choice.

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Notes:
1. Cost Increases to Average Vermonters, JFO, Prepared for Senator MacDonald, 1/30/07.
2. Vermont Energy Efficiency Potential Study for Oil, Propane, Kerosene and Wood Fuels, GDS Associates, 1/16/07
3. Ibid
4. Doug Hoffer, Memo to Senate Finance, March 19, 2007
5. Efficiency Vermont, 2005 Results Summary. Page 2.
6. Representative Robert Dostis Legislative Report- May 2007

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