Commentary - Climate Change Demands Action Now 8/3/2018

It is not an exaggeration to say that climate change is one of the greatest challenges facing humanity today.  While there are many who still think that climate change is a hoax, we need only to look at melting polar ice caps, extreme storms with significantly heavier precipitation and flooding, rising global atmospheric temperatures, more frequent and intense heat waves not only in the U.S. but across the globe, and the devastating wildfires in the western U.S. that have increased in both frequency and scope.  This phenomenon will continue to create heavier and heavier economic and social impacts moving forward. We have to ask ourselves what we can do to combat this phenomenon; and to do that we have to consider the cause.

Indeed, there are many who will reluctantly acknowledge that climate change is happening, but attribute it to natural cycles rather than to human influence.  This uninformed view ignores the fact that today's atmospheric CO2 level of 400 parts per million is now 1.3 times higher than the average peak concentrations of about 300 ppm over the last 400,000 years as measured by ice cores. This data is known as the Keeling Curve and is recorded and maintained by the Scripps Oceanographic Institute of the University of California San Diego and can be seen online. This breakout from the historical trend has occurred during the last century as the human race extracted and burned unprecedented amounts of fossil fuels which contain the energy of the sun stored over millions of years.

So, the answer has to be to reduce our dependence on fossil fuels. Renewable energy development since the turn of the century has provided an alternative to traditional sources of energy such as coal, oil and gas. The costs of solar and wind technology, still in their relative infancy, are already on par with oil and coal. In 2011 Vermont set a goal of becoming 90% renewable over all types of energy use by 2050 and to reduce its greenhouse gas (GHG) emissions to 1990 levels by 2025. Two years ago 189 countries, including the U.S., adopted the Paris Climate Agreement to reduce GHG emissions. Unfortunately, President Trump pulled the U.S. out of that agreement and instead has been encouraging more fossil fuel extraction. Vermont, along with hundreds of state and local governments, has resolved to continue working to achieve our own goals and those of the Paris agreement. So, how are we doing?

Sad to say, the Vermont Agency of Natural Resources recently released the 2015 Greenhouse Gas Inventory and the numbers are disheartening. Instead of seeing a reduction of GHG emissions since 2011, the state has exceeded the 1990 baseline by 16%. The full report can be found at the Vermont Department of Environmental Conservation website.  While progress has been made in electrical energy generation, the largest GHG increases came in the transportation and heating fuel use components. The latter two components are where we need to concentrate our efforts going forward.  

Renewable electricity is now the cleanest source of energy in Vermont. Moreover, since no fossil fuel is sourced in Vermont, 80% of the cost of fossil fuels leaves the state.  It makes sense to transition as much of our energy used in transportation and heating to cleaner electric energy as we continue to develop in-state renewable electricity generation. This can be encouraged by factoring into the price of fossil fuels the social and economic costs of climate change. By putting a price on carbon pollution in a revenue-neutral way, Vermonters can actually benefit economically by driving and heating more cleanly. This is not a new idea and has been proposed by conservative leaders like George Schultz, Henry Paulson, and James Baker. In a June 20th op-ed in the New York Times (https://www.nytimes.com/2018/06/20/opinion/climate-change-fee-carbon-dioxide.html), former Senators Trent Lott (Republican) and John Breaux (Democrat) made the case for a climate change fee on carbon-based fuels. And Vermont would not be alone in adopting such a strategy.  In June, the Massachusetts Senate passed a bill requiring the state to implement a carbon-pricing strategy by 2020. In Vermont legislators introduced a carbon-pricing proposal called the Economy Strengthening Strategic Energy EXchange (ESSEX) Plan that would channel revenues raised from the carbon fee to offset electricity costs.  To reduce the impact of the fees for low income and rural Vermonters, those consumers would get a greater share of the revenues.

It is well past the time to tackle this world-changing problem.  It is important to understand that we are not doing it alone and that we need to do our part.

Legislative Report 1/24/2018 - A Practical Approach to Pricing Carbon Pollution

Most people recognize that climate change is happening, that it is caused by burning fossil fuels, and that it has serious environmental and health consequences. The challenge to our generation is how to counter the trend of increasing concentrations of CO₂ and other greenhouse gases (GHGs) in the atmosphere. The most obvious action is to reduce our consumption of fossil fuels.

Our economy and lifestyle depends heavily on fossil fuels for electricity, heating and transportation. We successfully continue to transform our electric generation to renewable, clean sources, making Vermont's electric supply among the cleanest in the country while keeping our electric rates the second lowest in New England. However, despite our goal of reducing Vermont's GHG emissions by 25% compared to 1990 levels, our GHG levels have instead increased by 4%. We cannot be successful unless we address fossil fuel consumption in heating and transportation.

A proposal currently being considered called the ESSEX Plan, an Economy Strengthening Strategic Energy EXchange, was developed by a group of environmental advocates, business people and legislators over the last summer and has been introduced as Senate bill S.284. The goal of the plan is to move dependence on dirty fossil fuels to Vermont's clean electric energy by discouraging use of fossil fuels and encouraging a transition to electricity for heating and transportation. Here is how the plan works.

The EPA during the Obama administration calculated the “social cost of carbon pollution” to health and the economy to be $40/ton. Based on this number the plan starts at $5/ton of CO₂ (5 cents/gallon) and rises steadily to $40/ton (40 cents/gallon) over an 8 year period. The revenue generated goes back to Vermonters in the form of a rebate on electric bills. About $30M would be raised the first year and grows to $240M when the price tops out in eight years. This money would go into a special fund which would be drawn on for the rebates. Each month the amount collected would be allocated to each utility based on its electricity consumed for that month. That share would then be allocated based on whether the revenues came from the commercial, industrial or residential side of fossil fuel consumption. The rebates would be based on the amount of a customer's electricity usage. The revenues from the commercial and industrial customers would be rebated to them. The revenues from the residential customers would be divided based on income and geography.

Of the residential revenue 50% would be rebated to all residential customers, 25% would be rebated to customers in rural areas, and another 25% would be rebated to low income customers. Low income Vermonters in rural areas would get both bonus rebates. This formula is in recognition that Vermont is a rural state that requires longer commutes for rural residents and that low income residents pay a proportionally higher share of their income on energy costs. This strategy should encourage Vermonters to use less fossil fuel by transitioning to technologies like cold climate heat pumps, electric vehicles, mass transit, carpools and other strategies to reduce their carbon footprint.

So, how does this strengthen the state's economy? First of all, it makes Vermont more affordable. While electric rates themselves won't be affected, the carbon rebates, itemized on consumers' electric bills, will significantly decrease the net cost of electricity. Vermont's already low rates relative to our neighboring states will be even more attractive to businesses. Secondly, Vermont is not a source of fossil fuels, so 80 cents of every dollar spent on fossil fuels leaves Vermont. On the other hand, Vermont's electricity is increasingly sourced within the state or region, keeping millions of dollars of energy spending in Vermont. Third, transitioning from fossil fuels to electricity will add more well-paying green jobs to the 17,500 already created in Vermont. Finally, we are not alone. Vermont's New England neighbors and New York are poised to introduce their own carbon pricing legislation in the coming weeks making this a regional effort.

This method of carbon pricing is innovative and environmentally and economically beneficial. I look forward to a productive dialog about this plan and will host an informational forum on the topic at the Charlotte Senior Center on February 12 at 7:00 PM. I hope to see you there.

As always, I can be reached by phone (802-233-5238) or by email (myantachka.dfa@gmail.com).

Legislative Report 5/16/2016 - End of Session Summary

As the final installment of my Legislative Reports this year, I thought it would be good to highlight some of the important work the Legislature did over the two years of the biennium.

 

Water Quality

In 2015 legislation was passed that will help prevent agricultural runoff from farms, roads and other impervious surfaces by controlling discharges that could violate our water quality standards. The Required Agricultural Practices (RAPs) that all farms must follow are in the final stages of development and should be released in September, 2016. The Agency of Agriculture will provide technical and financial assistance to help farmers comply and there is funding in the budget to help towns comply with water treatment and road runoff mitigation.

 

Governance

Legislation was passed this year that will allow voluntary regional collaboration by municipalities around a range of services, including ambulance, solid waste, fire protection, and land use planning to achieve economies of scale. The law promotes transparency, local municipal voice, and treatment of municipalities as equal partners. The Legislature relaxed the requirement on how often municipal plans need to be updated from every five years to every eight years to allow more time for plan implementation. We also passed a bill that automatically registers eligible Vermonters to vote when they apply for a state driver’s license making it easier for our citizens to exercise their fundamental right to vote.

 

Human Services

The Legislature continues to focus on efforts to keep our children safe. At the end of 2015, there were 1052 children in state custody placed in foster or adoptive foster homes or in foster homes of relatives. In the past two years, reports of child abuse and neglect have surged and the state has experienced an 82% increase in the number of children under six who are in the state’s custody. In 80% of these cases, families are struggling with problems related to opioid addiction or other serious substance abuse. In addition, the tragic death of a DCF social worker allegedly by a parent this past summer has continued to place our state’s child protection system under pressure. The number of case workers added last year has not kept pace with the increase in cases, and more social workers will be hired along with substance abuse screeners to address this ongoing problem. More is being done to address the opioid addiction problem as well, including treatment, education, prevention, and increased market-constraints such as increased fees on pharmaceutical manufactures to help fund mitigation programs. A key provision is a requirement for health care providers and pharmacists to register with the Vermont Prescription Monitoring System (VPMS) and to query the system upon prescribing or dispensing a controlled substance to help eliminate prescription fraud and the diversion of controlled substances.

 

Natural Resources & Energy

Over the past decade, Vermont has led the nation with its energy efficiency programs, lowering both electricity costs and rates. In 2015 the Renewable Energy Standard Act was passed which will eliminate the double-counting or Renewable Energy Credits (RECs) and is helping Vermonters transform their energy use in the heating and transportation sectors. This year we recognized Vermonters’ concerns over the proper siting of solar and wind projects and passed legislation that will give municipalities a greater voice in these decisions if they develop energy plans to address the state’s goals for renewable energy in collaboration with their Regional Planning Commissions. We also required the Public Service Board to develop noise standards for wind projects in recognition of complaints about existing projects. We passed legislation this year that will preserve and maintain the health of Vermont’s forests, and we ensured that conservation easements that were always meant to be perpetual will continue to be so by removing the 40 year renewal requirement and ensuring that the easement remains with the property if a tax sale of the property occurs.

 

Working Vermonters

Legislation passed this year guarantees working Vermonters the right to earn paid sick leave up to three days per year, increasing to five days in subsequent years. We also increased subsidies for child care facilities to provide high-quality, affordable child care for working families. Because of Act 176 of 2014, the minimum wage in Vermont is $9.60/hour and is scheduled to increase to $10/hour on January 1, 2017. 

 

Education

The Legislature continued to address the increasing cost of education by encouraging school district consolidation under Act 46 passed in 2015 and made some changes early in 2016 to address budgeting issues being faced by school boards. Several districts across the state have already voted to merge and more, including Chittenden South, are expected to vote in the next couple of months. Chittenden South will hold its vote on June 7^th, and I encourage everyone in Charlotte to take the time to vote in person or by absentee ballot. You can find information about the proposal at act46.cssu.org. I strongly recommend reading the Final Report to inform your vote.

 

I can be reached by phone (802-233-5238) or by email (myantachka.dfa@gmail.com).  I wish you all a wonderful summer and hope to see you around town.

The Word in the House 2/18/2015 - Vermont's New Renewable Energy Policy

Q. What would lead to a 6% increase in Vermont's electric utility rates? A. Doing nothing.

 

For the last 10 years, Vermont has grown its renewable energy industry under a program called SPEED (Sustainably Priced Energy Enterprise Development). Under that program Vermont became a leader not only of utility based Renewable Energy (RE) development, but of distributed generation with net metering. Distributed generation means that the energy is generated close to where it is consumed. Set to expire in 2017, the SPEED program is in need of retirement now, however. As our neighboring states in the New England regional grid have set their own renewable energy standards, Vermont's SPEED program has come under criticism because we allow the Renewable Energy Credits (RECs) to be sold to utilities outside of Vermont while the energy that is produced is counted toward our in-state RE requirements. This “double-dipping” has become unacceptable to Connecticut and Massachusetts who claim that selling VT RECs to their utilities suppresses RE development in their states. 

 

The REC market operates much like a stock market with RECs associated with different types of RE generation having different values. Thus, a utility generating power with high-value RECs can sell those and buy back lower value RECs as long as that type of energy is considered renewable in the state the utility operates in. Utilities with excess RECs can sell them to reduce their operating costs.

 

If CT and MA stop buying Vermont RECs, a significant revenue stream for our utilities that has helped to keep our rates among the lowest in New England will disappear. The immediate impact would be a 6% increase in our average electric rates. To prevent this the House Natural Resources and Energy Committee with the help of the Department of Public Service has written legislation to replace the SPEED program with what is known as a Renewable Portfolio Standard. It would set the goals for RE generation for our utilities and require the RECs to be retained, thereby bringing our policies in line with those of our neighbors. Already the potential for passage of this legislation has led CT to hold off on legislation preventing its utilities from buying VT RECs.

Our bill, H.40, establishes the Renewable Energy Standard and Energy Transformation (RESET) Progam. It is designed to grow the share of Vermont's electricity consumption that comes from RE sources, to support new community-scale distributed generation, and to promote innovative projects that reduce fossil fuel use and save Vermonters money. There are three tiers:

1. Total Renewable Electric Requirement – 55% of sales by an electric utility in 2017 rising to 75% by 2032 will be from renewable sources. These goals are already in law, but will now require REC retention. Utilities may still sell RECs in excess of the mandated requirement.
2. Distributed Generation – 1% of sales in 2017, rising to 10% in 2032, will come from distributed generation including net metered solar, wind, hydro, and bio-fuels as long as the RECs attributed to that generation are retired by the utilities benefiting from them.
3. Energy Innovation Projects – 2% of sales in 2017 rising to 12% in 2032 would come from energy transformation projects. This tier sets targets for utility-led or partnered projects that save fossil fuels for heating or transportation and save money for consumers. Measured in BTU-equivalents (thermal units of energy), projects which save fossil fuels by either conservation or transformation can be counted toward this RE requirement. Examples include weatherization, cold-climate heat pumps, geothermal heat pumps, electric vehicles, and biomass heating. These projects would count only if they are in addition to those already happening through existing regulatory programs or state funding.
   

 

By proactively adopting the RESET Program, rate increases are projected to rise by less than 0.5% by 2017, more than 1000 new jobs will be created in the industry, more than 400 megawatts of new distributed generation will be added, and by 2032 about 15 million metric tons of greenhouse gases emissions will be avoided and $275M will be saved on Vermonters' energy bills.

 

I continue to welcome your thoughts and questions and can be reached by phone (802-233-5238) or by email (myantachka.dfa@gmail.com)

Legislative Report 1/31/2014 - Beating the Cold

With the super-cold temperatures we have been having lately, this past weekend’s cold but sunny weather was a welcome break.  I took advantage of it and brought in more wood from my woodpile.  I, like many other Vermonters, am lucky to have a wood stove to supplement my oil heat.  Burning wood, along with turning down my thermostat, has saved quite a bit of heating oil despite sub-zero temperatures for extended periods of time.  As I pulled the sled across the yard and up the steps I got to thinking about how other less fortunate families and individuals have to deal with the cold.

The most immediate challenge when temperatures drop is how to take care of people who do not have a permanent home.  The person standing at the end of I-189 by Shelburne Road asking for a handout; the Vietnam vet who usually lives in a tent somewhere in the woods around the Intervale; the family that is living in a homeless shelter because the breadwinner lost his/her job and can no longer afford to pay the rent.  Less immediate, but still important, are those who do have homes but are struggling with their heating bills. For someone who hasn’t had to struggle with situations like these, it is easy to look away and think about something else.  We can ignore the inconvenient realities that blemish our otherwise comfortable world.  But we are our brothers’ keeper, and a moral conscience dictates that those who can, the majority of us, must help.

As a society we have many vehicles to provide assistance to those who need it in such emergencies, from the non-profits like COTS and the Red Cross to federal and state assistance like the Low Income Home Energy Assistance Program (LIHEAP).  LIHEAP, a program that provides emergency heating fuel to individuals and families who have or are about to run out of fuel during the winter, has been hit hard by the federal budget cuts over the last 3 years.  This program is available to families whose income is less than 125% of the federal poverty level.   While no state funds were contributed to the LIHEAP prior to federal fiscal year 2005, in recent years, federal funds have steadily declined from a high of $38.6 million in 2009 to $17 million this year.  As federal funding declined, Vermont has supplemented the program with additional funds to try to keep at least $25M available.  The number of Vermont families served has consistently been around 27,000, with a spike to more than 45,000 in 2011 at the peak of the recession. 

As more of the burden of funding this program falls to Vermont, the question becomes how to fund it and whether a better solution can be found to address the problem.  With most low income families living in poorly insulated housing, much of their heating dollars literally fly out the window.  The key to increasing the effectiveness of LIHEAP funds is to reduce heat losses, that is, to weatherize homes.  The Comprehensive Energy Plan (CEP) of 2011 called for 80,000 homes to be weatherized by 2020.  Weatherization assistance has been available through Efficiency Vermont for all income levels, but especially for low income homeowners.  However, funding for weatherization programs has been inadequate and the state is currently about 2 years behind on reaching this CEP goal.  A study committee recommended that reaching the goal would require about $24M/year until 2020.  Funding for 2014 through a one-time source of money is $11M.

Last year Governor Shumlin proposed a tax on break-open lottery tickets sold at bars and social clubs to raise $17M, including $6M for weatherization programs.  The House Natural Resources & Energy Committee proposed a half-cent per gallon tax on fuel oil to raise $6M.  Both ideas were rejected by the legislature, the first as unfeasible, and the second as politically unacceptable.  As this session of the legislature moves forward, I will continue working to increase funding for weatherization and give a high priority for these services to LIHEAP recipients so that their future needs for assistance are reduced.

Legislative Report 2/18/2012 - Climate Change Demands Response

This past December, after a year of hearings involving businesses, environmental groups, government agencies, and other citizens, the Vermont Department of Public Service published the Comprehensive Energy Plan.  The vision expressed in the Plan to reduce our dependence on fossil fuels by moving Vermont to 90% renewable energy by 2050 is key to setting us on the correct path to our energy future.  Not surprisingly, there is resistance to that vision.  We get questions like: Climate change is a "hoax"; why are you wasting time on it?  How much can the small state of Vermont do to affect a global problem?  Why are we supporting energy resources that are economically unfeasible instead of cheaper coal, natural gas or nuclear? 

Looking at what is happening to our global environment, it is obvious that the global climate is indeed warming.  The north polar icecap as well as glaciers from Greenland to Antarctica are shrinking more each year causing sea levels to rise such that island nations in the Pacific are already losing substantial land mass.  And the effect is a feedback loop that is accelerating the change.  Solar energy, reflected less by the disappearing ice, is being absorbed and converted to infrared, which in turn heats the atmosphere.  Methane, a powerful greenhouse gas, is being released as permafrost melts in the arctic regions and organic matter that has been frozen for thousands of years decays.  Increasing CO2 and other greenhouse gases are decreasing the ability of the earth to radiate heat back into space, and the exploding use of fossil fuels since the mid-19th century has caused them to increase exponentially. 

Some will say that this is just a natural progression of the earth's thermal cycle, and maybe it is considering that the human race is part of the planet’s ecosystem, just as the dinosaurs were hundreds of millions of years ago.  Maybe our consumption of fossil fuels is just a way of recycling all that stored solar energy.  And maybe it is a tribute to our efficiency that we have learned how to recycle it so quickly.

But it doesn't change the fact that more thermal energy is available in the atmosphere to cause more energetic and frequent storms.  It doesn't change the fact that a rise in sea levels caused by the tremendous release of water stored in the glaciers and icecaps will impact coastal areas on every continent.  And it won't change the fact that some areas will see increased rainfall and flooding while others will dry out as rising temperatures and disappearing polar ice cause changes in air and ocean circulation patterns.

Maybe we have already reached the point of no return.  I hope not.  But with that hope, I want to see our policies change to at least slow down, if not reverse, our patterns of energy use, not so much for the sake of our generation, but for our grandchildren and future generations.  That will only happen by reducing our fossil fuel consumption, by learning to use the clean energy supplied so abundantly by nature even if it means some impact to the visual landscape, and by investing in research and development of technologies that will help us move toward this goal.

I am proud of the work we are doing in the House Natural Resources and Energy Committee to support that goal of making Vermont a model for clean, job-creating, renewable energy development and working with other states as they implement similar policies.

VT Public Service Commissioner Liz Miller Discusses Energy

Elizabeth Miller, Commissioner of Vermont Department of Public Service appeared with  Rep. Mike Yantachka, Chitt 1-2/ Assistant Treasurer, Chittenden County Democratic Committee, on the Chittenden County Democrats Show to discuss Vermont's energy future as outlined in the Comprehensove Energy Plan.  You can view this half-hour segment here.

The Vermont Comprehensive Energy Plan

Since the first Arab oil embargo in 1973, each succeeding decade has put more and more focus on how we use and generate energy.  Political, environmental and economic factors all play a part as we try to figure out how our energy demands will be met and how much it will cost.  During the 2010 session the legislature required by law that a plan be developed for Vermont’s energy future, taking us firmly into the 21st century with less reliance on fossil fuels.  Since January representatives from state agencies, environmental groups, utilities, agriculture, and private industry have been meeting to map out a strategic plan for the next 20 years that will get us there.  Their draft report consisting of two volumes has been released by the Department of Public Service entitled Comprehensive Energy Plan 2011 and is available for public comment until October 10th.

In the first volume of the CEP, the current status of Vermont’s energy consumption as well as future goals and strategies to achieve them are described.  The second volume describes in great detail the supporting analysis and the recommendations for implementing the plan. 

Our energy demands consist of electricity, heat, transportation and land use.  In satisfying these demands Vermont has already made strides in energy efficiency improvements (2% per year since 2008), and increased use of renewable energy sources including solar, biomass, wind and hydro for both heat and electricity generation.  Two-thirds of Vermont’s energy usage is for heating and transportation, depending almost entirely on fossil fuels. Approximately 50% of our electric supply and about 25% of Vermont’s total energy usage presently is from renewable sources.  Greenhouse gas emissions in Vermont have been reduced by 3% per year since 2004, but we are still well behind in reaching the current goal of 25% below 1990 levels by 2028.

The CEP sets a goal of achieving 90% of our energy needs from renewable sources by 2050 which will provide these four key benefits: 1) foster economic security and independence by creating jobs, enhancing local economic activity and reducing total costs for Vermonters, 2) safeguard our environment through efficiency and conservation thereby providing an example to the nation and enhancing our Vermont brand, 3) drive in-state innovation and jobs creation through research and development and energy infrastructure development, and 4) increase community involvement and investment by supporting productive energy uses of our working landscapes including our farms, forests and fields.

This strategy for reaching this lofty goal of virtually eliminating Vermont’s reliance on oil by mid-century includes “moving toward enhanced efficiency measures, greater use of clean, renewable sources for electricity, heating, and transportation, and electric vehicle adoption, while increasing our use of natural gas and biofuel blends where nonrenewable fuels remain necessary.”  The implementation will take careful planning over an extended period “to ensure overall energy costs for our businesses and residents remain regionally competitive.”  Key elements of implementation will be greater use of both in-state and external hydropower, wind energy where feasible, sustainable biomass from farms and forests, solar generation, and geothermal systems.  The CEP also recognizes that the least expensive energy is energy that isn’t used; so conservation by thermal and electric efficiency improvements has to be increased at a faster rate than is currently being done.  Transportation concepts will also have to be transformed by greater use of Plug-in Electric Vehicles (PEVs) and hybrids as well as mass transportation and blended fuels.

As Public Service Commissioner Elizabeth Miller states in the preface to the CEP, “we view this plan as the beginning of the conversation — not the end... [recognizing] that a successful plan must remain current and responsive to change. As progress is measured, we will revisit the goals set forth in this plan and adapt strategies to achieve our vision based upon experience."

This brief overview cannot do justice to the vision, thought and analysis contained in the CEP.  I hope it will stimulate you to take the time to read it yourself.  You can find it at www.vtenergyplan.vermont.gov along with a schedule of public forums for presentation and discussion of the plan.