Fuel Efficiency Program
Is Signed into Law

Surrounded by legislative leaders, Gov. Jim Douglas last Wednesday signed into law today the Energy Efficiency and Affordability Act of 2008 establishing an efficiency program to help homeowners and businesses reduce fuel consumption and save money.

The passage of the bill represented an important compromise on an issue which was at the center of bitter political wrangling last year. At that time, an energy efficiency bill championed by the legislative leadership was opposed by Gov. Douglas because he didn’t like the funding source. The governor vetoed the bill and the legislature held a special session in mid-summer to attempt to override the veto.

They were unsuccessful in the override attempt, and the issue marked the five-year low point in relations between the Democratic legislature and Republican governor. In the months following, however, the two sides worked together to craft a more modest bill that was acceptable to both.

The bill is intended both to help Vermont reduce its carbon footprint by using less fuel oil and to help Vermonters cut their fuel oil costs.

Since 2004, the average Vermonter is paying about $500 more each year for oil, the Governor noted.

The new all-fuels efficiency program will help Vermonters make their homes and businesses more energy efficient. It envisions the use of grants and loan programs to help reduce the initial expense of these investments, and help spark growth in the private home efficiency market.

The legislation also continues to support the use of renewable energy in Vermont through an increased use of net metering, changes to farm energy programs and the use of biodiesel fuel in state buildings and vehicle fleet.

Some $1.6 million of funding for the all fuels program will come from existing revenues. Another $2.4 million in funding will come from Vermont’s participation in the Regional Greenhouse Gas Initiative.

"I am very proud of the fact that Vermont is the nation’s greenest state. Because we have made responsible decisions in recent years regarding our energy development and the preservation of our green space, Vermont absorbs more carbon than we produce," Douglas said. "This puts us in a strong position to capitalize on our RGGI relationship to obtain new revenues to make sustainable investments in energy efficiency and affordability."