9/2/2020 Senate's Energy Efficiency Bill Is Passed by the House

The House has passed a bill that allows Vermont's Energy Efficiency

utilities, Efficiency Vermont and Burlington Electric Department, to expand the money-saving services they deliver to Vermonters. It broadens their energy efficiency mandate to include helping Vermonters save on their heating and transportation costs, not just electricity bills. As such, it allows the testing and development of new strategies to achieve our climate goals while saving Vermont families and businesses money.

These strategies will be tested in small pilot programs for 3 years, and funded out of existing revenues with no increase in electric rates.  

Details

Program funding is limited to no more than $2 million (less than 5%) of existing revenues — in fact the overall electric efficiency budget for the three-year pilot period is required to stay at or below the current three-year period, or else the pilot programs will be discontinued.  Though targeting greenhouse gas (GHG) emissions, the bill, S.337, stipulates that programs must have a nexus to electricity — essentially this means encouraging "beneficial electrification," or replacing high-GHG fossil fuel use with low-GHG electricity.  

Efficiency Vermont and Burlington Electric Department must consult with State agencies to avoid duplicating programs.  They must also cooperate with other utilities, and the pilot programs must complement and not replace or compete with utility programs.  The programs must maximize cost-effective GHG reductions, and must be delivered statewide and reasonably proportional to electric efficiency charges collected in each utility territory.  

Legislative Report 1/9/2020 - Session Preview on Climate Action

The Vermont legislature convened in Montpelier this week for the second half of the biennium, i.e. the two-year legislative term between elections. Legislative work did not stop when the session adjourned in May. Off-session work includes constituent assistance as well as study committees, oversight committees and workgroups that meet either in official capacity or to prepare for the coming session. Some of our unfinished business from 2019 will be on the agenda early in the session, including increasing the minimum wage, establishing a paid family leave insurance program and creating a tax and regulate system for cannabis sales in Vermont. I’m also looking forward to working with my colleagues once more to take significant steps to address the climate crisis through Vermont’s energy policy.

Over the last two years more and more focus has been on what effects human consumption of fossil fuels has had on the global climate.  Extracting and burning fossil fuels like coal, oil and natural gas emit enormous amounts of CO₂, methane and other greenhouse gases (GHGs) which build up in the atmosphere and increase the average global temperature.  In recent years we have seen the effects in more intense hurricanes, heavier rainfall and flooding, more persistent heat waves, droughts, and wildfires in the west. Melting glaciers and icecaps have contributed to measurable sea level rise leading to “sunny day flooding” in some coastal communities. These effects drive costs higher for everyone, including Vermonters. Climate scientists have overwhelmingly concluded that we have only a limited amount of time to act decisively to limit global warming and its effects on our environment, health and economy.  Last year Vermonters have joined people all over the world in climate demonstrations demanding that governments do something about climate change.

Several years ago, a group of legislators from the House and Senate formed the Climate Solutions Caucus.  This group, now numbering more than 60 members, is committed to take meaningful steps to reduce Vermont’s contribution to the climate crisis.  The Paris Climate Accord of 2015 calls for a 50% reduction of GHG emissions from 1990 levels by 2028.  This goal was adopted by both the Shumlin and the Scott administrations. 

In contrast, however, Vermont’s emissions as measured by the Department of Environmental Conservation have instead risen by 16%. We have to bend that curve by addressing the biggest sources of GHGs in our economy: transportation and heating. This will help Vermonters save money by living in more efficient homes and driving more efficient vehicles.

While we took some steps in 2019 to help reduce Vermont’s emissions, including starting an EV incentive program, and increasing funding of low- and moderate-income residential weatherization, we know we have to do more. The Climate Caucus held several workgroup sessions over the summer to identify further steps we can take. Converting our renewable energy and energy transformation goals from the 2017 Comprehensive Energy Plan into statutory requirements by passing the Global Warming Solutions Act is the first step. To make our older housing stock more efficient for heating and cooling we’ll have to accelerate weatherization assistance to homeowners and landlords. Changing Efficiency Vermont’s mission to include using funds for moderate-income weatherization through the All Fuels Initiative will be part of the solution.

Transportation is the largest GHG contributor at 43% of emissions. We must continue to reduce transportation emissions by supporting EV purchases, electrification and expansion of mass transit options, expanding park-and-ride facilities, and promoting transportation alternatives like bicycling and walkways. We also know that Vermont can’t combat climate change alone. Alone our emissions are relatively small, but we have a responsibility to do our part. With the approval of Governor Scott, Vermont joined with 12 other eastern states from Maine to Virginia and the District of Columbia to consider a regional program to reduce GHG emissions from transportation.  This program, called the Transportation and Climate Initiative (TCI), would be a “cap and invest” system.  Details of the design were released this December and the legislature and administration will be working together to integrate this effort into Vermont policy. Reducing emissions will not only benefit the climate but will also reduce carcinogenic volatile organic compounds (VOCs) and asthma aggravating particulates in the air we breathe.

I plan to write more about these actions in the future as they develop. I welcome your emails (myantachka.dfa@gmail.com), phone calls (802-233-5238), or in-person contacts.  

Legislative Report 4/3/2019 - Steps to Address Climate Change

This past week in the Vermont House saw several major bills passed with significant floor debate. They included Broadband Deployment (H.513), Childcare (H.531), Workforce Development (H.533), and the major money bills including Transportation (H.529), Revenue (H.541), and the Budget (H.542) plus a controversial Weatherization bill (H.439) that increases the Fuel Tax by 2 cents per gallon.  After many weeks of long hours and input from all the policy committees, the administration, and individual legislators, the House Appropriations Committee presented a balanced budget, which passed 139 to 1, that is 2.6% higher than last year’s but less than the 3.1% increase proposed by the Governor.  These bills, now headed to the Senate, are significant and deserve describing in more detail than this article will allow.  Instead I will focus on elements of the budget that address climate change.

Three reports that were issued last year highlighted the importance of addressing climate change during this session: the Intergovernmental Panel on Climate Change (IPCC) Special Report on global Warming, the Fourth National Climate Assessment released by the Trump administration, and the Vermont Department of Environmental Conservation Greenhouse Gas Emissions Inventory Update.  The IPCC report noted that we are already seeing the effects of a 1 degree Celsius rise in global temperature and gave a dire warning that we have to reduce global CO2 emissions 45% by 2030 to avoid a 1.5 degree increase which would have catastrophic geologic and demographic results worldwide. The Vermont DEC reported that Vermont’s greenhouse gas emissions have increased 16% over 1990 levels, mainly from transportation (43%) and heating (24%). We have a global problem which will require global action, including Vermont’s, to solve.

The House has taken a number of steps in this direction with the passage of the budget and revenue bills. The budget includes $1.5M for an electric vehicle (EV) incentive program, $300,000 for public charging stations, $500,000 for EVs and charging stations for state government, $250,000 to Efficiency Vermont for weatherization assistance for moderate income families, and $350,000 for weatherization workforce training.  While the budget passed almost unanimously, The Weatherization bill with the fuel tax increase was the most controversial.

We currently pay 2 cents per gallon on heating oil, propane, and dyed diesel fuel and 0.75% on natural gas. The revenues fund the Weatherization Assistance Program for families below 80% of median family income to reduce the amount of fuel needed to heat their homes.  Combined with federal funds, the program benefited 860 families in 2018. The need is much greater, however.  Because of the understandable prioritization to serve the lowest income families first, many eligible, low income Vermonters are waiting years to be served while thermal energy continues to be wasted, unnecessary amounts of fossil fuels are burned, and Vermonters continue to live in cold, unhealthy and dangerous conditions. By increasing the tax from 2 cents to 4 cents on liquid fuels and from 0.75% to 1% on natural gas, an additional 400 families can be assisted.

This tax increase was debated over two days with several amendments offered.  Opposition centered on the additional cost to the low-income families it’s supposed to help as well as the additional cost to farmers and loggers who use large amounts of dyed diesel. One amendment was passed to exempt farmers and loggers not only from the increase but also from the existing 2 cents per gallon. (The House earlier also approved an exemption from the sales tax for logging equipment.) This bill, which passed by voice vote, is beneficial for the following reasons:

1) The weatherization program, in existence from the 1970s, has been very successful in helping low income families reduce their heating bills, live healthier, and reduce greenhouse gas emissions.

2) The additional cost is minimal. A typical household using 750 gals of heating oil a year will have an additional cost of $15 over the entire heating season.

3) The price of fuel oil varies ten times as much during the heating season.  This year my deliveries ranged from $2.75/gallon to $3.00/gallon.  A 2 cent increase adds only $2 more on a 100 gallon delivery which today costs $290.

4) The savings are huge. Weatherization typically saves 29% of fuel use resulting in $500 to $600 savings per season and results in cumulative savings over time instead of cumulative wasted fuel and money heating a leaky house.  This is money that stays in Vermont compared to 80% of fuel dollars which leave Vermont.

5) It reduces dependence on LIHEAP and other fuel assistance which lasts only for the season.

6) It creates more construction jobs in the weatherization field.

I see this as a win for low-income families, a win for the economy, and a win for the environment!

I welcome your emails (myantachka.dfa@gmail.com), phone calls (802-233-5238), or in-person contacts.  

Addendum: While I normally don't link to other publications within articles I write, I want to link to this VTDigger column which speaks to the same topic for reasons you will find obvious.
Margolis: In the legislative arena, worthy goals can sometimes conflict

Legislative Report 2/21/2018 - Energy & Technology

The Energy & Technology Committee (E&T) on which I serve has three areas of responsibility over Vermont's infrastructure: energy, telecommunications, and information technology (IT). In the six weeks of this session, we've been pretty active in each of these areas.

Energy

The House has already passed two of our bills dealing with energy this session. H.410 extends Vermont's appliance efficiency standards. A similar bill enacted last year adopts the current federal appliance efficiency standards for Vermont if the current federal Environmental Protection Agency decides to rescind them. Those standards have saved consumers billions of dollars in energy costs and offset millions of tons of CO2 emissions. With H.410 Vermont will adopt additional standards for products like commercial kitchen items, air compressors, computers and computer monitors, and water appliances like faucets, showerheads and toilets. These include standards developed by the U.S. Department of Energy, those adopted by the Energy Star program and other industry standards that manufacturers have already adopted.

The second bill, H.616, authorizes the Burlington Electric Department to use the waste heat from the McNeil biomass electric generation facility for a district heat project that will pump hot water through highly efficient pipes to the UVM Medical Center, the UVM campus and the new Burlington Center redevelopment project. This project will not only increase the plant's efficiency but will offset greenhouse gas emissions by replacing fossil fuels used for heating.

E&T also voted to require that the Agency of Natural Resources use the $18.7M from the Volkswagen settlement solely for electric vehicle (EV) charging infrastructure and for conversion from fossil fuel vehicles to EVs as allowed under the terms of the settlement.

Telecommunications

Again, two of our bills dealing with telecommunications were passed by the House. Both seek to get high speed broadband out to rural areas where population density is too low to justify private investment. H.581 specifies that Connectivity Initiative grants funded by the Vermont Universal Service Fund (USF) can only be used for new broadband infrastructure projects and not for ongoing operational expenses. H.582 would increase the USF fee from 2% today to 2.5% starting in 2018 and ending in 2022. While this will increase the cost of a $100 phone bill by 50 cents per month, it will raise $1.5M annually and will be allocated to the Connectivity Initiative to expand broadband in rural areas.

Information Technology

Last year the Agency of Digital Services (ADS) was created to consolidate the state government's IT infrastructure and services which were distributed throughout the agencies. Our committee has been reviewing the status of the reorganization and the IT projects the agency now oversees as well as the forward focus of the agency. To date, the reorganization is proceeding well with development personnel working in the same agencies and departments as before while reporting directly to ADS. The highest priority of ADS now is cybersecurity. In the last 12 months more than 4 million cyber attacks on state systems were detected. Plans are in place to partner with Norwich University to identify weaknesses and strengthen monitoring and remediation.

E&T has also been investigating steps the state can take to enforce net neutrality within our borders. Net neutrality is the principle that Internet Service Providers (ISPs) should enable access to all content and applications regardless of the source, and without favoring or blocking particular products or websites. The recent decision by the Federal Communications Commission to reverse Obama administration rules ensuring net neutrality puts content providers in the position of having to pay tolls to allow users to access their products thereby disadvantaging smaller content providers. While the Governor recently issued an executive order requiring state agencies and departments to write net neutrality into contracts with ISPs, E&T will continue investigating this subject in hopes of developing even stronger net neutrality rules for consumer protection.

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

Legislative Report 5/10/2017 - Laws & Sausage

By the time you read this, the Vermont legislature will be within days of adjournment. You've probably heard the saying that legislating is a lot like making sausage. This is never more true than in the last couple of weeks of Vermont's legislative session. An example of how this works can be illustrated by Senate bill S.52.

S.52 was originally crafted to make some changes to the Public Service Board process for conducting CPG (Certificate of Public Good) hearings. As you may remember from previous articles, most bills have to be passed out of the House or Senate by a certain date called “crossover”, usually a week or two after Town Meeting, to be considered by the other body. There are exceptions, but these are limited to certain types of bills like money bills and municipal charter bills. However, there are ways to get around this limitation, as S.52 demonstrates.

As it came over from the Senate, the bill gives municipal and regional planning commissions a little more control over the 45 day pre-application period when a developer notifies the local commission of its intention to site an energy generation project. It allows the commission to require the Department of Public Service to attend a local hearing and to hire an expert at the applicant's expense to evaluate the project. It also extends by a few days the time for the commission to make recommendations to the PSB regarding the project. In addition, the bill standardizes the comment periods for energy, meteorological stations, and telecommunication facilities CPG applications to 30 days from their current periods ranging from 21 to 30 days. It gives the Department of Public Service authority to investigate complaints regarding noncompliance with CPG terms and conditions and to issue administrative citations and penalties up to $5000 for violations. Finally, the bill would change the name of the Public Service Board to the Public Utility Commission, the name used by most other states. The last provision would help alleviate the public's confusion between the Department and the Board.

Here's where the art of legislative scheduling becomes creative. Since the Energy & Technology Committee passed a number of bills earlier in the session that were not yet acted upon by the Senate, we decided to add them to S.52. These bills included the telecommunication facility siting process renewal bill (H.50), the ten year telecommunication planning bill (H.347), and the appliance energy efficiency standards bill (H.411). If by the end of the session the Senate never got around to acting on them, their language would be included in S.52. Also, since we were unable to finish a bill to have the Department of Public Service study the feasibility and benefits of energy storage technology, e.g. batteries, on the electric grid, we added this language as well.

The House passed these amendments to S.52, which was then returned to the Senate. The Senate can accept the amendments, thereby enacting it and sending it to the Governor. Or, it can make further amendments and send it back to the House. Or, it can decide not to concur and ask for a Committee of Conference between the House and Senate to iron out the differences. In the meantime, if any of the bills that were added passed the Senate before S.52 was finalized, the language corresponding to the enacted bill could be removed from S.52. Thus, from a variety of ingredients, a final bill can emerge. This “sausage-making” process occurs frequently as the House and Senate work to come to a consensus on various pieces of legislation before time runs out. I hope the “sausage” will taste good, or at least be in good taste.

I encourage you to let me know your concerns and opinions. I can be reached by phone (802-233-5238) or by email (myantachka.dfa@gmail.com).