Gov. Peter Shumlin, Jan. 6, 2011. Photo by Terry J. Allen

The press conference was originally about a fact of life Vermonters struggle with at this time of year: springtime potholes, frost heaves and washboards.

The event – held at the Middlesex Park & Ride – was meant to be a feel-good, made-for-TV photo-op. Gov. Peter Shumlin, a Democrat, lauded the work of road crews who are mixing a lot of “cold patch” these days (5,500 tons so far) to fill in holes that are pockmarking the state highways.

A remark Shumlin made at the presser, however, formed a political crater that took more than a little rock and tar to fix on Wednesday.

The governor told reporters he had found an alternative to the 55-cent a month electricity meter surcharge that lawmakers in the House of Representatives had come to metaphorical blows over on Tuesday as they debated the omnibus energy bill.

The only trouble was, Shumlin wouldn’t say how he would come up with the $2.38 million to replace the money for the Clean Energy Development Fund. And, he said the proposal wouldn’t be ready for prime time until next week.

The 55-cent per month meter charge was originally supported by the Shumlin administration.

The governor refused to offer details about the change in game plan. He wouldn’t say where the money would come from, how much the state would raise, how the funding mechanism would work, or when it would kick in, except to say that Vermont Yankee, which has picked up the tab for the program over the last five years to the tune of $35 million, would not be the new source of the funding for the Clean Energy Development Fund. After March of 2012, when the license under which Vermont Yankee operates expires, Entergy will no longer be making contributions to the fund – that’s why the state is scrambling now for a new source for the pool of money that finances tax credits for renewable energy projects.

Never mind that key lawmakers, who spent two and a half months agonizing over the details of H.56, the 2011 Vermont Energy Bill, and a day of intense fighting over the regressive nature of the monthly meter fee, weren’t aware of Shumlin’s plan until shortly after the presser. It turns out the governor didn’t inform House Speaker Shap Smith about his proposal – (even though the House was poised Wednesday to pass the bill on third reading in spite of four amendments from GOP lawmakers.)

A huddle in the speaker’s office ensued, with Alex MacLean, Shumlin’s special assistant; Jeb Spaulding, secretary of the Agency of Administration, and the chairs of the House Natural Resources and Ways
and Means committees.

As reporters hovered outside the speaker’s office, Smith and the Democratic leadership of the committees decided not only to make an about-face on the 55-cent per meter per month fee, but also to propose an amendment to remove the entire section of the bill that addressed the Clean Energy Development Fund. They would wait, Smith decided, to see the governor’s plan next week and then determine whether to introduce another bill, specifically about the fund, or punt it to the Senate. Under statute, however, tax bills must originate in the House.

“I think it’s appropriate to take a couple more days to see if the proposal would work,” Smith said.

The speaker warned, however, that lawmakers have a limited amount of time to consider a new plan.

Smith said though none of the Democrats were enthusiastic about the 55-cent fee, the bill had passed 99-39 on second reading.

“The bill passed overwhelmingly with tri-partisan support,” Smith said. “It’s clear we have support for the proposal going forward. We know this kind of activity needs to be funded for renewable sector initiatives.”

As for the timing, Shap said: “I would prefer to have had the proposal before the third reading of a bill, but the legislative process requires flexibility.”

When asked whether he thought the governor had sufficient respect for the legislative process, Smith replied: “There are always bumps in the road.”

Rep. Kurt Wright, R-Burlington, was less charitable. “At the 11th hour, the governor abandoned a proposal he supported,” Wright said. “He totally disrespected the work of two committees. The onus is now on him to come up with a proposal everyone can agree with.”

Wright, a member of Natural Resources, accused Shumlin of throwing Smith and the Democratic leadership under the bus. He said Klein and Rep. Janet Ancel, chair of House Ways and Means, went out on a limb to support the 55-cent fee proposal with the support of the administration.

The amended bill ultimately passed with only a handful or so of nay votes.

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