Senate Finance hears testimony on S.65 to refocus efficiency funds toward greenhouse‑gas reductions

The Senate Finance Committee on Thursday heard testimony on S.65, a 22‑page bill that would change the state's energy efficiency statutes to prioritize greenhouse‑gas reductions and allow a portion of electric efficiency funds to be used for electrification, thermal and transportation measures.

Supporters said the bill would align existing funds with Vermont's climate goals and target benefits to low‑ and moderate‑income households. Opponents — including the chair of the Public Utility Commission and multiple distribution utilities and co‑ops — warned the shift could raise electric bills, duplicate regulated utility programs, and create implementation confusion without further study.

Ed McNamara, chair of the Public Utility Commission, told the committee, “S.65 would increase electric bills.” He said the bill would divert money from energy efficiency, the lowest‑cost resource for meeting demand, to electrification programs that are more likely to require higher‑cost generation, and that would therefore increase electricity costs for customers.

Proponents described the bill as a reallocation, not a net increase in spending. A legislative counsel and other supporters said S.65 would fix the efficiency fund's…