Public Policy Detail
Vermont imports more than 70% of its total energy. VBSR is concerned about this fact for two primary reasons:
- ratepayers, including businesses and residential users, are at risk of price increases and limited availability, and
- the $1 billion Vermont sends to other states and countries to pay for fuel and electricity each year does not support our state's economy.
The Need for Investment
At a time when stability in the oil-producing world is threatened, Vermont revenue forecasts are falling, and many Vermont companies are downsizing, the State should be looking for ways to support our statewide economy.
Decision-makers should not focus solely on ways to save funds. More importantly, they should look for ways to foster a stronger local economy.
Where Should the Investment Go?
Vermont does not possess any non-renewable energy sources (e.g. oil, gas, coal). It does, however, possess many renewable sources (e.g. wind, sun, biomass, hydro, geothermal). Therefore, if Vermonters want to keep more energy dollars in state, that money must be invested in renewable energy and efficiency.
VBSR believes that the state should invest in the renewable energy sector for several reasons.
- The expertise is here. Vermont already hosts a large number of companies that specialize in renewable energy development, implementation, and manufacturing. Investing in renewables will help these businesses create new jobs in the state.
- $1 billion energy dollars exported annually is an enormous "leaky bucket" for our economy. By keeping even a small portion of these dollars at home, we can increase the wealth of all Vermonters.
- Current patterns of energy use put us at the mercy of global forces beyond our control. By converting our energy economy toward a healthy mix of in-state renewable resources, we reduce the risk of both price fluctuations and supply interruptions in the future.
- Placing more emphasis on renewables - i.e., clean energy sources - also gives an added environmental benefit.
With statewide revenue shortfalls and long-term energy contracts due to expire in 10-15 years, it is more important than ever to take advantage of key opportunities. The state may soon have the unique possibility of making significant investment in renewable energy, without raising power rates.
How Can We Fund an Investment in Renewables?
The Public Service Board (PSB) will soon determine the fate of the proceeds from the sale of the Vermont Yankee nuclear power plant. If the PSB decides that all or a portion of the proceeds of the sale should go to ratepayers, then VBSR recommends using that money to establish a Renewable Energy Fund.
Twelve other states have created renewable energy funds, including the New England states of Connecticut, Massachusetts, New York, and Rhode Island. These states have leveraged significant dollars to support projects, companies, market infrastructure, and research & development. The technology for renewable energy systems is mature, in the marketplace, and ready to be mainstreamed.
Conclusion
Vermont has a history of energy successes. We are a national leader in saving energy and reducing energy costs for low-income people. These successes are only a beginning, however. Our energy spending patterns must change. Establishing a Renewable Energy Fund would boost Vermont's fledgling renewable energy sector, create jobs, and stimulate other economic activity.
