Editor’s note: This commentary is by Darren Springer, general manager of the Burlington Electric Department, and Rebecca Towne, CEO of Vermont Electric Cooperative.
There is rightfully a groundswell of discussion about how Vermont can make meaningful progress on reducing greenhouse gas emissions in the face of the climate emergency. Vermont’s renewable energy standard (RES) provides an important framework for how to reduce emissions and fossil fuel consumption. RES is not limited to the electric utility space, but is also beginning to make meaningful changes in the challenging areas of heating and transportation which are the source of more Vermont carbon emissions and need our focused effort.
Overall, Vermont’s RES is the best policy currently in place to help Vermont cut carbon pollution and reduce dependence on fossil fuels. While electric generation is only 10% of Vermont’s emissions, compared with far larger portions for thermal and transportation, electric utilities are going above and beyond what is required to reduce emissions and the RES gave them the tools to do so. According to a report from Vermont’s Department of Public Service (DPS), during the first year of RES implementation in 2017, utilities exceeded requirements and provided 63% renewable electricity, while also working to reduce fossil fuel use through energy transformation programs. Those accomplishments helped Vermont cut 579,000 tons of carbon dioxide emissions for program year 2017, compared with 2016 numbers, according to the report by the DPS.
The emissions reductions driven by the RES starting in 2017 currently are not accounted for in the state’s greenhouse gas emissions inventory (which only runs through 2015), and represent approximately one-fifth of the annual reductions needed for Vermont to achieve its target of meeting the Paris Agreement climate goals. While this means more effort is still needed, it is important to recognize that the RES is working as intended and reducing greenhouse gas emissions in Vermont. Importantly, the requirements of the RES continue to escalate over time providing for even more renewables and fossil fuel transitions each year. The DPS projects that the Vermont RES could drive reductions of up to seven million tons of carbon dioxide emissions over the next 10 years, which is equivalent to removing more than 1.3 million cars from the road for one year.
Since 2017, every utility in Vermont is required to supply its customers with at least 55% renewable electricity by law, with the number rising to 75% by 2032. When this requirement passed in 2015, it was the largest total renewable electric requirement in New England, and remains today one of the most ambitious renewable electricity requirements in the nation. Vermont’s policy was flexibly designed in a way that ensures maximum benefit and lowest cost for Vermont electric utility customers and members. To meet this renewable energy requirement, utilities use a mix of both in-state and regional renewables. Some of Vermont’s utilities – including Burlington Electric Department, Washington Electric Cooperative, and Swanton Electric, which all have achieved 100% renewability – have already exceeded the 75% target.
Vermont’s RES also ensured a market for new, in-state renewable generation by requiring utilities to support Vermont-based small-scale projects. This RES requirement supports adding new renewables every year to the Vermont grid, requiring on average the addition of the equivalent of 27 megawatts of Vermont-based solar — enough to power over 5,000 homes — every year from 2017 to 2032.
Finally and most meaningfully, Vermont’s RES offered a groundbreaking Energy Transformation Program that requires Vermont utilities to offer customers programs and incentives to reduce fossil fuel use, and provides greater credit for measures based on how renewable a utility’s portfolio is, providing further incentive to add renewable energy to utility supply. This requirement was unique in the nation when it was passed in 2015, and since has been the model for a new policy passed in Washington state that put forward similar regulations for its utilities. The Energy Transformation Program provides the regulatory foundation for utilities in Vermont to offer incentives for drivers to switch to electric vehicles and for residents and businesses to install cold climate heat pumps. To deliver on energy technologies best suited to various parts of Vermont, each utility is allowed to tailor programs for its customers. For example, while Burlington Electric has incentivized electric bikes and electric buses, Vermont Electric Cooperative has worked with maple sugar operators and other commercial customers to reduce generator diesel fuel use by connecting to the electric grid. Importantly, all utilities are working together and with the state of Vermont to provide incentives for electric vehicles and form partnerships with participating auto dealers.
As with all policies, it is good practice to evaluate the effectiveness of the RES over time. In 2020, the program is set to undergo a four-year implementation review by the Public Utility Commission to examine results and determine if improvements are in order. Even as we look at opportunities to do more, Vermonters can be proud that our RES continues to drive emissions reduction and energy innovation year after year, and is a flexible and effective model for other states to look at in terms of utilities helping customers switch to cleaner technologies.
