Brenda Luciano

September 27, 2007

On September 18, 2007, the Vermont Rural Energy Council ("VREC") released a report asserting, "If Vermont leads in energy efficiency and the innovative development of renewable local power, for local use, the state can build a major competitive advantage for its businesses and communities." VREC is a non-profit, non-partisan organization in cooperation with the National Rural Development partnership. Its members analyze policies that impact rural communities in the state. In its report, VREC recommended twenty-three ways in which the legislature and governor can meet the state's priorities in addressing climate change and reducing reliance on fossil fuels, while at the same time benefiting the state's economy. To accomplish these goals, VREC urged the state to set clear energy policies and standards for the development and use of renewable energy sources including: hydro, biomass, solar, wind, and methane gas.

According to the Public Service Department, about two-thirds of Vermont's electricity comes from both the Vermont Yankee Nuclear Power Plant (a division of Entergy Nuclear, a large Fortune 500 company) and Hydro-Quebec, whereas approximately 15% comes from renewable sources such as "biomass, wind, hydro, landfill methane, and now farm methane." Despite great dependence on Vermont Yankee and Hydro-Quebec for power, the good news is that the Department estimates that Vermont's reliance on fossil fuels for electricity is less than 20%. With Vermont Yankee's operating license set to expire in 2012, and Hydro-Quebec's contract also set to expire just three years later in 2015, now is the time for Vermont to put forth efforts to grow the renewable energy sector so that the state may reduce its reliance on outsourcing and instead develop local, viable, and renewable power sources.

There are both environmental and economic gains if the state increases its development of renewable energy sources according to the VREC report. In terms of environmental progress, renewable sources such as wind or solar power are essentially "never-ending" sources of power, to quote the Public Service Department, with the added benefit of little to no extra fuel costs. With renewable sources such as wind and solar, construction and maintenance costs are the bulk of the expenditures, and these sources are then maintained locally as opposed to depending on outsourcing for power to companies that exist outside the state.

VREC also detailed economic gains including an estimated 6,000 new jobs in Vermont over the next ten years by implementing renewable energy sources. The report reads that 10,000 jobs are possible in the short-term, and 3,000 may be sustained long term, the bulk of which are in commercial scale biomass generation. In addition to new jobs, the VREC report emphasizes the need to give incentives such as tax breaks to local "green" businesses. VREC reasoned that such incentives benefit all Vermonters by promoting a climate that encourages the proliferation of sound energy practices while at the same time sustaining the "natural landscape" of Vermont.

The timing of the release of VREC's report was only a few months after Governor Douglas vetoed the Vermont Energy Efficiency and Affordability Act. One of the goals of the failed bill was "by the year 2025, to produce 25 percent of the energy consumed within the state through the use of renewable energy sources." Governor Jim Douglas explained that he agreed with the major premise of the bill. Also, the Governor acknowledged that he would have signed the house version, but he said that the final version contained too many tax increases. The consolation is that the Governor promised to implement many portions of the bill administratively through agency designation. The major challenge to implementing a complex policy in the energy sector is that political support must exist at all levels of government in order for it to work. Hopefully, the Vermont Legislature and the Governor will reach a compromise so that the ultimate goal of achieving efficient and economic energy solutions can be realized for all Vermonters.

Sources:

Vermont Rural Energy Council, Strengthening Vermont's Energy Economy: Final Report and Recommendations, (Sept. 18, 2007), available at http://www.vtrural.org/reports-councils.php (last visited Sept. 24, 2007).

Vermont Department of Public Service, Vermont Electric Plan 2005, (Jan. 19, 2005) available at http://publicservice.vermont.gov/pub/state-plans-electric.html (last visited Sept. 24, 2007).

Daniel Barlow, VT Renewable Energy focus urged in Report; up to 6,000 jobs seen, Barre Montpelier Times Argus, (Sept. 19, 2007), available at http://www.timesargus.com/apps/pbcs.dll/article?AID=/20070919/NEWS01/709190367/1002/NEWS01 (last visited Sept. 24, 2007).

Louis Porter, VT to Poll Residents on Power Future, Rutland Herald, (June 30, 2007), available at

http://www.rutlandherald.com/apps/pbcs.dll/article?AID=/20070630/NEWS04/706300363/1024/NEWS04 (last visited Sept. 24, 2007).

H.520, Vermont Energy Efficiency and Affordability Act, 2007-2008 Leg., available at http://www.leg.state.vt.us/docs/legdoc.cfm?URL=/docs/2008/bills/passed/H-520.HTM (last visited Sept. 25, 2007).

Governor Vetoes H.520 -- Will Implement Bulk of the Bill Administratively -- Contemplates fuel efficiency program that does not require a tax or new bureaucracy,(June 2007), available at http://governor.vermont.gov/tools/index.php?topic=GovPressReleases&id=2464&v=Article (last visited Sept. 25, 2007).