Committee considers H.940 provisions to let Burlington Electric use thermal funds for broader clean‑energy programs

Legislative Council staff told the committee H.940 is a multipart bill that includes an energy section allowing Burlington Electric, as the entity appointed under the energy efficiency utility statute, to spend its thermal energy and process fuel funds for greenhouse‑gas‑reduction programs in the thermal and transportation sectors during the 2027–2029 planning cycle.

“May spend any amounts the entity has available … on programs, measures and services that reduce fossil fuel use and greenhouse gas emissions in the thermal energy or transportation sector,” Kowski said, adding examples such as geothermal and transportation measures and noting the provision is time‑limited to the triennial budget cycle.

Kowski emphasized negotiated conditions: the entity must prioritize weatherization and thermal‑sector efficiency in its offerings, and it “shall budget at least 60% of the funds for programs under the section for weatherization and thermal sector efficiency programs … with a minimum of 60% of those … allocated for customers with low income and low to moderate income.” Committee members asked about the funds’ source; Kowski identified RGGI (Regional Greenhouse Gas Initiative) revenue and capacity‑market payments as the primary sources and said the Department of Public Service had negotiated protections on continued use and reporting.

The bill also includes language to keep expenditures under this section separate from Burlington Electric’s Tier 3 renewable energy obligations. Kowski said the change follows a six‑year pilot (the Energy Efficiency Modernization Act pilot) and is offered for another three‑year cycle to match the energy‑utility planning schedule.

Sections 2–4 of H.940 would amend regional and municipal enhanced energy planning processes to align regional plan update procedures with enhanced energy plan review and add review windows (for example, submitting to the Department of Public Service 60 days before the first regional meeting when seeking an optional energy determination). Kowski noted these provisions could be routed through a land‑use bill vehicle (S.325) or coordinated with the Natural Resources Committee; she also said the bill repeals the Telecommunications Advisory Board, which “hasn’t met in at least 4 years.”

Committee members asked for a refresher on the Tier 1–3 accounting and signaled they want to hear from Burlington Electric, the Department of Public Service and Regional Planning Commissions as the committee prepares for public testimony. No vote or formal action occurred in the session.