The Floor Report: 03/21/2024
Today was a dark day in the Vermont State House, but not for a lack of renewable energy. The legislature decided to push yet another carbon tax onto the backs and out of the pockets of Vermont energy rate- payers.
This bill, H.289, will enrich solar companies and do very little to affect climate change, as the presenter of the bill so easily conceded. This bill is designed to force electrical utilities to produce or purchase all of their power from renewable sources.
The caveat of the bill is that in the event a company cannot source enough renewable energy, it will have to purchase Renewable Energy Credits or REC’s. Of course, while your utility company may be required to purchase some quantity of REC’s, it will undoubtedly pass the cost of that purchase (let’s call it what it is: a tax!) on to you.
So, what are REC’s, you might ask. REC’s, as they are called, are basically a traded commodity, much like pork bellies. The market for and price of REC’s can fluctuate wildly and most certainly with increased demand will spiral up in value. These REC prices are set on a national level and change greatly with the administration in power. (Obama $48, Trump $4-8, Biden $52) The impact of the market demand on REC’s is not known at all as Vermont and other States seek to transition to renewables.
Those in favor of the bill pointed to Vermont’s duty to lead by example despite being an infinitesimal carbon producer. One member, Rep. Mark Mihaly, a Democrat from Calais, went so far as to compare Vermont’s obligation to lead in climate change mitigation to the state’s duty to fight in the Civil War.
In reality, Vermont would be choosing to fight climate change at the expense of its own citizens by raising rates and buying credits. Vermont is not a large polluter and while the climate crisis is real, one must ask whether Vermonters can afford to grandstand on this issue when affordability is one of the biggest problems in the state. If the state is bankrupted and the workforce continues to move away, what does Vermont gain by selling renewable energy credits to its own citizens?
Where and from whom will we buy all the necessary REC’s? And what sorts of power generators will be eligible to claim that they produce REC’s?
Burning biomass is on its way out, and large scale hydro doesn’t count. What sources will continue to count? Some answer “solar,” and to some extent small- scale hydro and wind. But let’s take a second look at these so-called green energy sources.
Solar, while admirable, leaves us with outdated panels and systems on our roofs in a matter of years—panels that after taking valuable resources to construct will end up in a landfill. And by pushing for solar we will see an inequitable distribution of burden while enriching solar companies. Wind turbines degrade Vermont’s picturesque hills and threaten birds and other wildlife, and turbines are produced out of state and provide no up-side in jobs or the economy of Vermont. And finally, how long will small scale hydro be exempted if large scale is no good?
But that’s not all. Perhaps the biggest problem is that the grid as constructed cannot handle the increased demand for electricity. Solar requires 2 way power transmission technology, and the increased demand for electricity, as we are forced to transition to an electric lifestyle, cannot be supported with current infrastructure. So again, who but ratepayers will pick up the tab?
While the legislature’s Joint Fiscal Office has prepared a revised (revised at the request of the Democrat leadership) fiscal note estimates the cost over 10 years would be somewhere between $0.00 and $450,000,000.00, the original and probably more accurate estimate predicted a cost closer to one billion.
It seems that the super majority is completely in the dark when it comes to the realities of green energy. Rather than doing something good for Vermonters and for the environment, they chose to pass a feel good agenda that will cost Vermont ratepayers a fortune. I fought hard on the floor to stop this bill but the most eyes in the building are wide shut!
Gina Galfetti is the Vermont State Representative for the Washington/Orange District and can be reached: Ggalfetti@leg.state.vt.us or 802.461.3520