Douglas, officials spar over energy plan
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By DANIEL BARLOW Vermont Press Bureau - Published: April 23, 2009
MONTPELIER – Gov. James Douglas started his Earth Day on Wednesday morning by honoring Vermonters who plant trees with a special proclamation during a ceremony on the Statehouse lawn.
Thirty minutes later, the Republican governor stood in his ceremonial Statehouse office and explained to reporters exactly why he opposed a major renewable-energy bill supported by environmental groups that was on track to be approved by the Vermont House.
"I strongly support renewables, but we can't do it in a way that adds to the cost of living in this state," said Douglas, who stopped short of saying he would veto the bill if it comes to his desk.
With just weeks to go before the end of the Vermont Legislature's 2009 session, Douglas and lawmakers are at loggerheads over how to build the state's green energy future.
Douglas believes policies and programs in place now will do the job, while lawmakers say new incentives are needed to stimulate this growing economic sector.
The bill passed by the House this week includes a host of renewable and efficiency programs, but its main thrust is to remove some regulatory barriers to small-scale clean energy projects and require the state to set up fixed rates and long-term contracts for this new green power.
Supporters in the House say the bill would allow energy developers to launch small hydro, solar or wind projects that generate less than 2.2 megawatts of energy.
The entire program has a statewide cap of 50 megawatts of Vermont's top electrical utilities would be required to accept these contracts from the renewable developers.
"This bill creates jobs," said Rep. Rachel Weston, D-Burlington, a member of the House Natural Resources and Energy Committee. "Why is the governor opposed to creating new jobs in the renewable sector?"
Rep. Margaret Cheney, D-Norwich, another member of the House committee, estimated the bill would create 15 to 20 new jobs for every megawatt of renewable energy added to the state's system.
"If a dollar or so a month on an electrical bill is too much to ask for the governor … then he is showing his true colors as an opponent of renewable energy," said James Moore, the clean energy advocate for the Vermont Public Interest Research Group. "He is governor 'no' when it comes to renewable energy."
The war of words, vetoes and votes between the Vermont Legislature and Douglas over renewable energy and efficiency proposals is nothing new. In 2007, he vetoed the Legislature's bill to create an all-fuels efficiency program because it was funded by placing a new tax on the Vermont Yankee nuclear power plant.
Douglas has familiar arguments against this new bill. He said Wednesday that because the bill requires fixed rates and contract lengths for the small-scale clean energy projects, it would result in increases in Vermonters' electrical bills.
Douglas and Vermont Public Service Department Commissioner David O'Brien, who also opposes the plan, told reporters that they estimate the bill would add about $19 million to the monthly electrical bills for residents at a time when many are already struggling to pay them.
O'Brien described the bill as a "perfect marriage of narrow interests."
"It's a solution in search of a problem," he said, adding that he is worried the long-term contracts built into the bill could result in Vermonters paying for older technology for two decades or more.
But Douglas' opposition even has some Republicans who support the bill scratching their heads. Rep. Joseph Krawczyk, R-Bennington, the vice chairman of the energy committee, said he was disappointed in the governor's message.
"I won't live long enough to see complete energy independence in Vermont," Krawczyk said. "But I hope I can see us have a great green energy portfolio."
Douglas shares his opposition to the House energy bill, which received final approval in that chamber Wednesday, with several prominent Vermont businesses.
William Driscoll, vice president of the Associated Industries of Vermont, said the small-scale projects highlighted in the bill are the least economical of the state's options.
"There are many ways to embrace renewable energy that also take into account the ratepayers," he said.
daniel.barlow@rutlandherald.com
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