Public Policy Detail
Vermont Businesses for Social Responsibility
Position re: S. 94
March 23, 2007
VBSR supports S. 94. We believe that the long-term benefits of this proposed program overwhelmingly outweigh any short-term cost. We believe we MUST work together to benefit the businesses and the people of this state. The approach in S. 94 is based on proven models and sound economic principles.
- We need to bring down heating costs through conservation and efficiency.
- We need to stop wasting dollars on wasted heat
- We need to direct our spending to the benefit of Vermont and Vermonters
- We need to work together, and pool our intellectual and financial resources to make this happen- we are in this together.
We need to bring down heating costs through conservation and efficiency.
Since 1999 the average price of home heating fuels have doubled. In 2005 Vermonters spent $250 million to heat their homes. This is a tremendous amount of money, more than double what most Vermonters pay for education through local taxes. The Department of Public Service (DPS) report says Vermonters could save 486 million dollars over the next 10 years if we increased the efficiency of our homes and businesses.
We need to stop wasting dollars on wasted heat.
We can’t ignore that getting 4 dollars back for every dollar invested in efficiency makes smart business sense. (According to a recent report for the DPS there will be 4 dollars of benefit for Vermont to every dollar invested). Better to not waste our dollars on depletion of non-renewable resources.
We need to direct our spending to the benefit of Vermont and Vermonters.
Instead of spending dollars on overseas fuel aren’t we better off to increase jobs in Vermont and support Vermont’s businesses by purchasing Vermont goods? (e.g. furnaces, cellulose, fiberglass, caulk, foam). With increased efficiency, 20-40 % of the dollars now flowing out of state for fuel oil could be kept in the local economy. The jobs associated with weatherization and retro-fitting are decent, skilled jobs that can’t be outsourced. Conservation and efficiency can save our residents and businesses millions of dollars.
We need to work together, and pool our intellectual and financial resources to make this happen- we are in this together.
For example, if a homeowner purchases 900 gallons of fuel this year it will cost around $2,000. If they pay $20 per year in an efficiency charge (1%), and obtain services and make changes, they may save $500 per year. Although they might not get efficiency services immediately, they are pooling their dollars to help others in a similar situation. When they do obtain efficiency services they will not only get the pay-back that year but for every year after. The payback will only be greater as fuel prices continue to rise.
Efficiency programs to date have proven to be a sound investment of dollars. Examples of successes:
Efficiency Vermont. 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.
Weatherization Programs. The potential for costs savings and jobs creation with this approach are already proven by the work of the Low Income Weatherization programs currently implemented. CVOEO Weatherization reports that in 2006 they employed 19 Vermonters, spent more than $450,000 on local contractors and spent more than $250,000 locally on materials. They also saved their low-income clients more than $200,000 annually in energy costs. This is money that stayed in-state to the benefit of Vermonters.
We help each other, we all save.
There is an economy of scale and a storehouse of expertise that develops if we all work together to conserve energy and reduce emissions of greenhouse gases.
Investing in energy efficiency makes good business sense. Building efficiency is about sound investments, affordability, new jobs and an improved environment.An efficiency charge on the sale of heating fuels is a minimal and smart investment for considerable long-term benefits and savings.
