Policy & Regulation

Vermont governor vetoes bill requiring utilities to source all renewable energy by 2035

Vermont governor vetoes bill requiring utilities to source all renewable energy by 2035
The 1.3 MW Trombley Hill Solar Project was Encore Renewable Energy's first under a partnership with the Vermont Public Power Supply Authority. The project is sited on underutilized property owned by Morrisville Water and Light and was commissioned in 2019. (Courtesy: Encore Renewable Energy)

This article includes reporting from the Associated Press

Vermont’s governor vetoed on Thursday a bill that would have required state utilities to source all renewable energy by 2035, saying it would be too costly for ratepayers.

Under the legislation, the biggest utilities would need to meet the goal by 2030. If the bill had been enacted into law, Vermont would have become the second state with such an ambitious timeline.

“I don’t believe there is any debate that H.289 will raise Vermonters’ utility rates, likely by hundreds of millions of dollars,” Republican Gov. Phil Scott wrote in his veto message to the Legislature.

Vermont utilities currently are required to buy 75% renewable energy by 2032.

The legislature could overturn the governor’s veto when they gather for a special session next month. The bill passed both chambers with veto-proof majorities and can circumvent the governor’s will, as long as no one changes their vote.

“Earlier this month, after significant debate and discussion across multiple committees, the Vermont legislature overwhelmingly supported expanding our renewable energy goals to embrace the cost-driven shift to clean energy resources and make Vermont the second state in the country to reach 100% renewable energy,” said Chad Farrell, founder and co-CEO of Encore Renewable Energy in a statement to Renewable Energy World. Encore is the largest solar developer in the state.

“With increasing demand from businesses, institutions, and utilities for stably priced, cost-efficient, locally and regionally generated renewable energy, we need legislation and ultimately regulation that allows for the development and deployment of these cleaner and often cheaper long-term sources of energy,” he added. “As such, we appreciate and applaud our legislators’ continued support of this landmark legislation to allow us to continue to grow the clean energy sector of our economy, reduce our reliance on fossil fuels, provide greater energy security for Vermonters, and ultimately create a brighter future for all.”

Senate President Pro Tem Phil Baruth, a Democrat, said in a statement that Scott and his party “are an automatic ‘no’ on any policy that will move the needle on fossil fuel dependence.”

“It’s a shameful dynamic, especially in a world where our state capital still lacks a functioning US post office due to persistent, climate-related flooding,” he said.

Scott has said the Democratic-controlled Legislature is out of balance. He said Wednesday at his weekly press conference that lawmakers sometimes focus so much on their goals that they “don’t consider the unintended consequences” and “some bills end up doing more harm than good.”

While he said he shares many of the same priorities as the Legislature, they differ on how to accomplish the goals.

“I would rather come to agreement before a bill comes to my desk and avoid a veto altogether,” he said.

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