It Could Be Law Profile of a Vermont Bill

Author: Peter Faroni

On April 7 the Vermont Senate passed a bill designed to increase the state's energy independence through the promotion of environmentally friendly power.
The bill, which passed by a margin of 21-3, included a "renewable portfolio standard" that mandates that utilities buy some of their power from renewable energy sources, which are environmentally friendly. This measure requires that utilities purchase one percent of their power from green sources in 2004, two percent in 2005, three percent in 2006 and then a percentage that will be set by the Public Service Board (PSB).
Senators noted in the bill that it was important to "encourage public and private investment in environmentally sound, sustainable and renewable energy resources, as well as in existing energy conservation technologies, and thereby to increase the degree to which Vermont's energy needs are met through nonpolluting, sustainable and renewable energy sources."
Aside from promoting environmental-friendly energy sources, these reforms are designed to stimulate the state's economy and promote efficiencies and innovation in the provision of electric service. Proponents believe that the increased independence and diversity of Vermont's energy will create new jobs and fortify the financial stability of the industry.
The legislation would promote "green pricing," which would allow customers to buy electricity that comes from renewable or clean sources. If such power, however, cost more than regular electricity, those customers alone would bear the added expense.
Additionally, the bill would give the PSB authority to try alternative regulation schemes allowing utilities to make greater profits if they meet standards for encouraging efficiency and using renewable energy, and reduce their profits if they don't. The state would be able to spend $750,000 from penalties collected from oil companies to support local projects that use alternative energy systems.
In an interview with The Middlebury Campus, Sen. Claire Ayer (D-Middlebury) noted that this bill would be part of a comprehensive energy program that, pending state funding, would increase the energy efficiency awareness of Vermonters. She also said that though "Vermont has high electricity rates, customers have lower bills due to energy efficiency."
Furthermore, Sen. Ayer pointed out, "The cost of wind energy has been cut in half over the past 10 years,"and noted that the cheapest energy now might soon be comparable in price to other types.
Aside from wind power, Vermont is also looking into a number of hydroelectric dams that are on the Connecticut River as potential sources of renewable energy. Ayer affirmed that renewable energy is important for the long run goal of establishing Vermont's energy independence.
Sen. Mark Shepard (R-Bennington) proposed an amendment that would require all renewable energy that the state purchases to be purchased from sources within the state.
The impetus behind the amendment was to prevent Vermonters from taking an attitude of "not in my backyard," and preventing the necessary power sources (namely wind turbines) from being constructed in the state.
The amendment was not included as part of the final bill because a portion of the hydroelectric dams that the state is considering as possible sources are actually located in New Hampshire and would therefore be excluded from the list of possible energy sources.
The bill is now headed for the Vermont House. There is also an alternative bill proposed which excludes the portfolio standards based on the fact that they may prove to be prohibitively costly. Vermont's largest employer, IBM, as well as Gov. James Douglas '72 believe that the portfolio standard could be potentially harmful to Vermont's already struggling business climate.