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…and a lecture from your neighbor
Vermont ratepayers have forked over hundreds of millions to Efficiency Vermont since 2000, and what do we have to show for it? Not a cooler climate, not drastically lower emissions—just one of the most expensive carbon reduction programs in the country… and a finger-wagging from the local lobbyist for the Sierra Club.
As Sen. Anne Watson (D–Washington County) pushes the Legislature to shovel even more taxpayer money toward Efficiency Vermont to rescue the smoldering remains of the failed Clean Heat Standard, it’s time for a little math.
In 2019 alone, Vermont utilities collected over $57 million from Vermonters through the Energy Efficiency Charge (EEC)—a mandatory surcharge that shows up on every monthly electric bill. That money funded efficiency programs that, according to Efficiency Vermont’s own reports, saved about 36,500 megawatt-hours of electricity. That’s roughly equivalent to 18,000 metric tons of carbon dioxide avoided, using EPA’s own math.
Sounds good, right?
Until you divide the money by the emissions avoided.
That’s more than $3,100 per ton of CO₂ “saved.”
To put that in context:
- The EPA’s social cost of carbon—a value assigned to the economic harm caused by emitting a ton of CO₂—is $51.
- The RGGI (Regional Greenhouse Gas Initiative) allows power plants to buy carbon credits for about $15 per ton.
So while power companies can offset a ton of carbon for the price of a couple of craft beers, Vermonters are being told they must pay the equivalent of a used Honda Civic… for the same ton… to fund programs most people will never benefit from.
The Carbon Shell Game
Here’s the part that really stings: Carbon credits generated by Vermont’s ratepayer-funded efficiency programs are often sold to out-of-state buyers—like utilities in Massachusetts—so they can claim progress toward their climate goals.
In other words, Vermont pays for the reductions, Massachusetts gets the credit, and Efficiency Vermont keeps the money flowing.
Meanwhile, Vermont’s own emissions are rising. The state has missed its emissions targets year after year, despite over $700 million collected since 2000 through the EEC. And the Legislature’s answer? Give Efficiency Vermont more money.
Because nothing says accountability like rewarding failure with a raise.
The Carbon Tax with No Accountability
Let’s be clear: the Energy Efficiency Charge is a carbon tax in everything but name.
- You don’t choose to pay it.
- It’s tied to your energy use.
- The money is spent on emissions reduction programs.
- And the Legislature gets to say it’s not a tax because they let the Public Utility Commission impose it through regulatory authority.
That’s not just misleading. It may be unconstitutional.
The Vermont Constitution requires that taxes be imposed by elected lawmakers, for clear public benefit. But instead, the Legislature handed that power to unelected regulators, who send your money to a private nonprofit. No vote. No budget line. No real accountability.
And if you’re thinking, “Well, at least Efficiency Vermont says thank you to the people footing the bill…” — don’t bother looking.
We checked.
Not one “thank you” to Vermont’s ratepayers appears in over two decades of Efficiency Vermont reports. Not a line. Not a sentence. Not a nod.
Enter Senate Bill S.65 — Clean Heat Standard in Disguise
Just as Vermont’s Clean Heat Standard collapsed under public scrutiny, the Legislature has quietly advanced Senate Bill S.65 — a bill that doesn’t say “carbon tax,” but still aims to give Efficiency Vermont expanded authority to run new electrification, transportation, and energy storage programs. And yes — they get to keep collecting from your electric bill to fund it.
It’s not just a bureaucratic reshuffle. It’s a doubling down on the same unaccountable, ratepayer-funded governance model that’s already charging over $3,000 per ton of carbon reduction.
This time, lawmakers want to give Efficiency Vermont:
- Legal control over new programs in heating, cooling, and even transportation
- A guaranteed annual budget through 2030, tied to inflation
- Continued authority to collect money through the Energy Efficiency Charge, and now possibly carbon credit sales and direct taxpayer dollars
But not once does the bill mention a public vote, a tax, or a line-item appropriation.
This isn’t just a workaround — it’s an end-run around democracy.
The Billion-Dollar Question
After nearly 25 years and well over $700 million spent, it’s fair to ask:
Why didn’t Vermont just buy carbon credits directly on the open market?
With the same money, Vermont could have offset every ton of carbon the state emits for nearly a decade, using the same tools already used by utilities and other states. No surcharges. No bureaucracy. No climate guilt-trip lectures.
Instead, Vermonters were forced to subsidize the most expensive, least efficient workaround imaginable—while politicians still claim Vermont needs more funding and bolder action.
Maybe it’s not about carbon at all.
Maybe it’s about keeping the system alive—no matter how expensive, ineffective, or ungrateful it becomes.
And you were wondering why Vermont is unaffordable?
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Categories: Commentary, Energy, Environment, Legislation
Re: …and a lecture from your neighbor.
Which neighbor was it who penned this article? Who are the ‘we’ who did the checking. And please, use your real name.
Excuse my poor early-morning oversight. I see now that the article is from by Dave Soulia, for FYIVT.com.
My early-morning case of mistaken identity aside, Mr. Soulia is to be complimented on further exposing the racket being perpetrated by this front group, Efficiency Vermont (aka the clean energy nonprofit ‘Vermont Energy Investment Corporation’ (VEIC)), and its enabler, Vermont’s Public Utilities Commission (PUC). Without question, Efficiency Vermont is the front for a racketeering scheme.
If I may add to the FYIVT list of grievances, please consider the following.
Efficiency Vermont (VEIC), is a consulting firm that ‘promotes and facilitates’ so-called energy efficiency. It doesn’t contribute actual energy resources. VEIC simply tells Vermont energy consumers about the many various, tax-subsidized, grants and programs they are entitled to.
When someone buys an electric bike, for example, VEIC doesn’t pay the subsidy. Green Mountain Power pays it from the financial nest egg it accumulates from the various line-item charges on your electric bill, that are in addition to the charges for the actual electricity you use.
In 2023, VEIC had annual revenue of $123 Million. Of that revenue, $102 Million came from Energy Efficiency Utilities, (aka the Vermont PUC). $11 Million came from the private consulting firm, Engineering Services of Vermont LLC, that provides engineering and design services as one of the ‘preferred’ HVAC contractors in Vermont. And $1.7 Million came from Performance Incentive Awards, a taxpayer funded Vermont Department of Human Services employee recognition program.
Are you starting to get the picture?
Of VEIC’s $123 Million in annual revenue, $121 Million was spent on ‘functional expenses’, 98% being salaries, wages, benefits, and payroll taxes. For example, VEIC’s CEO received an annual salary and benefit of $330,000. Its Managing Director received $230,000. The Chief Growth and Impact Officer received $208,000. And the Chief People Officer (yes, you got that title right) received $212,000.
So, while the top eleven VEIC executives were paid an average of $216 thousand for the year, again, 98% of the $121 Million annual VEIC taxpayer funded revenue went to pay salaries, wages and benefits. Never mind this regulatory group’s allocation of funds to various HVAC sub-contractors, like Engineering Services of Vermont LLC.
https://projects.propublica.org/nonprofits/organizations/30304418
I’m afraid this is but the tip of the corrupt non-profit NGO iceberg. And I’m equally fearful of the continued legislative tyranny being perpetrated on Vermont taxpayers by our governmental despots.
Mr. Soulia is spot on when he says, “Maybe it’s not about carbon at all. Maybe it’s about keeping the system alive—no matter how expensive, ineffective, or ungrateful it becomes. And you were wondering why Vermont is unaffordable?”
I’d like to thank Mr. Soulia again for raising this important issue.
Thanks for providing some numbers on the finances and salaries on this extortion racket…
Exactly! The Climate Crisis is just another huge scam by the Globalists! It’s all about money period!
” Efficiency Vermont (aka the clean energy nonprofit ‘Vermont Energy Investment Corporation’ (VEIC)), and its enabler, Vermont’s Public Utilities Commission (PUC).” and ultimately its enabler the Vermont Dem/Prog Legislature.
“And you were wondering why Vermont is unaffordable?” Not at all. I’ve allways known why Vermont is such an expensive place to live. In a word, flatlanders !
Going back a decade, at least us ordinary Vermont energy consumers got discounted light bulbs from Efficiency Vermont. What do we get now, except for some who get a warm feeling knowing that there is a surcharge on power bills to perhaps discourage wasteful use of electricity? Who even looks at their power bill and knows what the Energy Efficiency Charge is? It just sits there amid the other surcharges. Thank you, David Soulia for bringing this up. Would be nice to see a list of all those who draw a salary and the dollar amounts for Efficiency VT…
Rich, Efficiency Vermont didn’t discount those light bulbs. They simply advertised availability. Never mind that they really weren’t energy efficient. I remember those early versions lasting nowhere near as long as conventional incandescent bulbs.
And you paid for those light bulbs – three times. First, when you paid your electric bill with the various surcharges, whether or not you bought the new bulbs. Second, when you paid your Federal and Vermont taxes that subsidized the PUC and Efficiency Vermont – again, whether or not you bought the new bulbs. And third, when you actually bought and paid for the light bulb, ostensibly at a discount… tsk, tsk.
What happened to my comment?
How about all Vermont electric rate payers refuse to pay the Efficiency Vermont charge on their bill.
Yes! Why should we have to pay those! I was thinking the same thing!
No offense Patrick Finnie but flatlander seems a little broad in it’s application, although appropriate. May I suggest a term that narrows in on what populates the VEIC upper echelon? “CARPETBAGGERS”