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State PBF/USF History, Legislation, Implementation

Vermont
Last Updated: December 2011
Summary

Although Vermont has not adopted utility restructuring legislation — the usual route for funding statewide energy efficiency programs — the state Public Service Board established Efficiency Vermont as an energy efficiency "utility." Its chartered purposes include increasing the level of energy efficiency savings in Vermont, providing integrated and consistent electric energy efficiency services statewide, and ensuring that all Vermont consumers are given the opportunity to participate in and benefit from a comprehensive set of cost-effective energy efficiency services.

Efficiency Vermont (EVT) is funded through a separately stated, non-bypassable volumetric systems benefits charge on distribution utilities' bills. State legislation, S. 137, effective June 1, 1999, authorized the Board to create Efficiency Vermont and to fund it through the charge. The size of the systems benefits charge varies from one utility to the next. Each utility negotiated its contribution to energy efficiency based on factors unique to its service territory.

EVT's services, administered by Vermont Energy Investment Corporation, replace the individual demand-side management programs that Vermont's 22 utilities had conducted for about a decade. A range of energy efficiency services are available for all customer classes (residential, including low-income multifamily and single family; commercial; industrial and agriculture).

As stated in EVT's annual plan for 2011, EVT will continue its relationship with the five community-based weatherization agencies to provide maximum cost-effective electric efficiency measures, at no cost, to low-income households. While the weatherization assistance program (WAP) traditionally focuses on the thermal shell of the customer's home and the reduction of fossil fuel energy use, EVT provides financial and technical assistance for cost-effective electrical efficiency improvements. Qualifying measures include efficient lighting and water conservation products, conversion of electric space and/or water heating equipment to less costly natural gas systems, and replacement of inefficient refrigerators, freezers and clothes washers with high-efficiency ENERGY STAR models.

Minimum EVT spending requirements for residential customers for 2009-2011 is $19.7 million of which $6.3 million is designated for low-income residents. As of April 2011, total spending for residential services was $18.7 million of which almost $3.5 million was spent on low-income single-family and multi-family weatherization measures.

Electric energy efficiency measures were delivered to 2,075 single-family low-income households and 4,128 multi-family units through Efficiency Vermont's partnership with the state's Weatherization Assistance Program (WAP) during the same time period. The majority of incentives went towards energy efficient lighting and refrigerators and hot water efficiency.

Additional funding for WAP comes from Vermont's Weatherization Trust Fund, which was created in 1990 through legislative enactment of a gross receipts tax of 0.5 percent on all non-transportation fuels sold in the state except wood. The state legislature designated almost $5.2 million from the fund in 2010 to support weatherization activities for qualifying energy conservation programs for the low income.

As specified by Vermont Law, fifty percent of the net proceeds from the sale of carbon credits through the Regional Greenhouse Gas Initiative (RGGI) shall be deposited into a fuel efficiency fund to provide energy efficiency services to residential consumers who have incomes up to and including 80 percent of the state median income. Efficiency Vermont received approximately $3.5 million from RGGI for 2010.

An evaluation of EVT's programs was conducted in 2005 and included an assessment, key findings, conclusions and recommendations for each residential component: lighting program, appliance program and new construction. EVT evaluation plans and reports are available on the Vermont Department of Public Service website.

More information:

Efficiency Vermont, including its 2010 Savings Claim and 2011 Annual Plan.

The memorandum of understanding, which outlines many features of Efficiency Vermont, the order that created it and other materials can be accessed at: www.state.vt.us/psb/news/EEU_info.htm

S. 137, the enabling legislation for Efficiency Vermont

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Page last updated: December 21, 2011