The RES Series, Part III

by Alison Despathy

After Governor Scott’s veto of the H.289, the updated Renewable Energy Standard (RES) on May 23, House Speaker Jill Krowinski and Representative Amy Sheldon issued a statement in favor of the many benefits of H.289 including the fact that, “The bill is a result of collaborative efforts with Vermonters, utilities, energy developers, environmentalists, housing advocates and legislators.”

To be clear, there were no Vermonters involved in the development of H.289. The only level of public engagement was several minutes offered for comment at the end of the legislative working group meetings. The Renewable Energy Standard Working Group was driven by Renewable Energy Vermont (REV), a renewable energy lobby organization and Vermont Public interest Research Group (VPIRG), a nonprofit with a dangerous amount of influence at the statehouse.  Both REV and VPIRG forced this aggressive RES update on utilities and Vermonters.

The actual Vermonter version of an updated RES included a comprehensive public engagement process consisting of focus groups, polling, events, webinars and newsletters and was developed by Vermont’s Public Service Department (PSD). Through this engagement process, Vermonters signaled that affordability, reliability and the environment were their top priorities.

The PSD RES was developed with these priorities at the forefront but after all of this work, originally tasked by the legislature itself, it never saw the light of day in the House Environment and Energy committee. The PSD RES was blatantly ignored despite its robust stakeholder process, emphasis on community solar, significantly lower cost and its realistic approach in addressing diversified energy sources, base load power and achieving similar goals to H.289.

Plain and simple, the supermajority chose REV and VPIRG, special interest groups, and their high cost, impulsive Renewable Energy Standard. It was promoted as collaborative, yet it was not. The utilities had no choice but to participate if they wanted some level of a say in their future energy sourcing as REV put the squeeze on for higher costs and goals that serve their agenda not Vermont.

In a commentary submitted to the Montpelier Bridge, Ian Buchanan, a candidate for the Washington Electric Board of Directors, stated that, “It was reasonable to wonder whether many of the proposed changes to the RES have less to do with addressing climate change and pollution challenges and more to do with ensuring that specific energy sectors have distinct competitive advantages.”

He further observed that, “Some of the strategies being employed by special interest groups lobbying the Vermont legislature today seem akin to historical methods employed by the oil and tobacco industries: simplify complicated issues via double speak, stoke fear and doubts and only present data that supports selling more of our product.”

The cost difference between H.289 and the PSD version is hundreds of millions of dollars. The initial estimate from the Joint Fiscal Office (JFO) for H.289 was $1 billion dollars. Due to major adjustments in the JFO cost analysis, that seemed “more political versus rational” according to Annette Smith, Executive Director of Vermonters for a Clean Environment (VCE), a public records request was filed by VCE. They received all email correspondence on the three cost estimates offered by the JFO for H.289.

The final JFO estimate was between $150-450 million. However email correspondence received by VCE in their public records request specifically referred to the need for upgrading distribution infrastructure due to H.289, stating that, “a high cost estimate could be formed by adding distribution costs to the memo.” Transmission costs were considered in determining this adjusted cost estimate offered by the JFO but distribution upgrade costs were not included in any of the numerous versions of JFO’s Fiscal memo. All added costs would be borne by ratepayers over a ten year period.

The Public Service Department’s cost estimate on H.289 is between $650-$750 million whereas the PSD Renewable Energy Standard update carries a significantly lower cost at $111 million and offers similar goals at a much more affordable rate. Yet again, the fact that this was ignored speaks to the supermajority impulsion and decision to choose special interests over the people. Taking risks with Vermonters pocketbooks and power sources is not responsible legislation. Playing into the hands of special interest groups like Renewable Energy Vermont and Vermont Public Interest Research Group is naive and destructive for Vermont.

Regarding possible benefits related to H.289, Smith shared that during the stakeholder advisory group of which she participated, “The modeling shows that the financial costs rise for Vermonters but the societal benefits are regional and Vermont gets only 4% of them.”  Bottom line, Vermonters will pay more for electricity, new infrastructure, and have their fields and forests compromised with industrial solar arrays all the while basically receiving zero benefit from this situation.

Smith further explained that the RES study committee also hired a consultant and the conclusion was the same, “There are increased costs for Vermonters but the societal benefits would be outside of Vermont.” After watching the process closely, Smith shared that, “Vermonters would have been better off with the PSD RES proposal which would have cost less and spurred development, especially community solar sooner.”

In order to grasp the real goals behind bills such as H.289 and the Unaffordable Heat Act (Act 18), it is essential to discuss emerging markets.  Both the carbon markets and the renewable energy credit (RECs) market are coming in full force and in order to have a market run successfully and be profitable for investors and industry, the game must be established, there must be a steady flow of the commodity and there must be players.

Through the use of industry lobbyists, nonprofits and heavily funded and organized campaigns, the renewable energy industry is creating legislation to force these games in Vermont.  Entire business sectors such as Vermont’s thermal and electric sectors are being corralled into these markets which serve an industry and make Vermonters pay more for essential services. This is dangerous to the economy, is high level intrusive government overreach and places essential businesses at risk.

All legislation that focuses on direct or indirect carbon taxes results in higher costs for Vermonters. Using carbon as an opportunity to tax Vermonters, increase revenue, favor industries, over-regulate and severely limit businesses and options is a gross abuse of power and is highly detrimental to Vermont’s economy. It appears the supermajority is not even aware of the situation they are creating and instead believe they are saving the world. In reality they are legislating for predatory markets to run and expand that will benefit industry, corporate interests and investors at a high cost to Vermonters and our beloved environments.

Let’s hope the supermajority wakes up to the realities of H.289 and understands the significance of upholding the Governor’s veto of this destructive Renewable Energy Standard.

The author is a clinical nutritionist in St. Johnsbury.