GOV. DOUGLAS PROPOSES $20 MILLION ENERGY EFFICIENCY PROGRAM - WOULD NOT REQUIRE NEW TAXES OR NEW BUREAUCRACY

Gov. Jim Douglas, R-Vt., issued the following press release:

Gov. Jim Douglas today outlined an innovative public-private partnership that will invest $20 million in energy efficiency efforts over the next 4 years, without raising new taxes or bureaucracies.

The program-dubbed the Energy Efficiency Investment Program-would create a pool of private capital to provide $20 million in income-based grants and no-interest or low-interest loans allowing homeowners and small businesses to make their building more fuel efficient at no net cost, and save them more money over time.

In addition to the low-income grant program, the state would provide the resources to insure the pool against potential losses and cover up to $2.5 million of subsidies for low and moderate income participants.

NO TAXES, NO BUREAUCRACY - MORE VALUE

Governor Douglas said his proposal would have all of the advantages of the efficiency program proposed this year by the legislature, without any of the economic or environmental disadvantages.

"This proposal has all of the advantages of the Legislature's proposal-lower home heating and cooling costs, more jobs, greenhouse gas reductions and leadership by example-but five additional advantages that their proposal cannot claim," the Governor said. "It doesn't require a tax; it would not increase electric rates; it expands the private environmental products and services market in a way that has additional economic multiplier effects; it doesn't create a big new government bureaucracy, allowing a greater investment in energy efficiency itself; and perhaps most importantly this proposal progressively targets Vermonters who can least afford efficiency measures in their home."

HOW IT WORKS

The Governor said the program would be "user-friendly," feature a single entry point for participants, as well as a website and toll-free phone number. Households of four with an annual income up to $41,300 would be eligible for grants. Households with income ranging from $41,301 to $61,950 would qualify for a no interest loan. Households with income above $61,950 would receive low-interest loans. An analysis conducted by the Department of Public Service shows loans could be easily repaid-usually within 5 or fewer years-from the annual energy savings achieved.

After determining which benefit participants qualify for, an energy audit of their home or business would evaluate the cost of retrofitting and the savings it would achieve. With additional support from the State, audits could be provided by existing Community Action Agencies that provide similar services now for the State's weatherization program, Governor Douglas said.

The Community Action Agencies would also connect home and business owner with participating financial institutions and private contractors capable of conducting and certifying the work.

IMPLEMENTATION TASK FORCE

To pull together the necessary financial institutions, business coalitions, community programs and trade organizations, Governor Douglas said he would assemble an implementation task force. The task force will work out the precise structure of the investment program. Douglas hopes to announce the task force early next week.

"While I do not expect the need for many statutory changes, it will need an appropriation and legislation authorizing the Vermont Economic Development Authority (VEDA) to coordinate the financial aspects of the program," he said. "I will have a package ready for consideration when the Legislature returns on July 11th."

RESPONSIBLE PUBLIC POLICY

The Governor said the Legislature now has an opportunity to work with him to pursue improved fuel efficiency without creating a poorly contemplated, cumbersome bureaucracy funded by an arbitrary tax.

"This plan is a very clear reminder that the solution to our challenges is not raising taxes and creating new bureaucracies," the Governor said. "When Vermonters think creatively, we're capable of producing innovative new programs that live within our means.

Contact: Jason Gibbs, 802/828-3333.