Lawmakers Hear Case to Extend Ryegate Power Station Efficiency Deadline to Protect Forest Economy

The House Energy and Digital Infrastructure Committee on May 21 heard testimony supporting a one-year extension for efficiency upgrades at the Ryegate power station so new owners can complete planned improvements and preserve a market for low‑grade forest products.

Brett Long, interim commissioner of the Department of Economic Development, told the committee his agency "was originally involved in the study that was undertaken to look at the alternatives, out of which came the, original legislation for supporting the Ryegate plant." He said the plant "provides both direct and indirect economic activity for the area. Haven't checked lately, but there used to be about 20 people deployed there." Long told lawmakers the plant also offers an outlet for low‑grade wood that helps make logging economically viable in the region.

The committee heard that the department supports amendments allowing the new owners to complete upgrades and seek users for the plant's excess heat or fuel. Long summarized the department's position: "In summary, we would support the, amendments, especially giving these new owners the ability to be able to make these upgrades and to hopefully find somebody, as a user to fit." No formal vote or motion was taken during the hearing.

Members pressed the department on alternatives to burning low‑grade wood, including developing markets for wood fiber and mass timber. Long said the department has worked with entities exploring mass timber — a laminated wood product used in place of steel — but that mass timber primarily uses higher‑grade material. "Now there are obviously chip products that use low grade wood, but I couldn't say for sure really would be a question for Forest Parks and Recreation, about the economics of being able to use that," Long said, noting the high cost of trucking heavy low‑grade material.

Committee members and Long also discussed other potential uses, including wood‑fiber insulation and oriented strand board or particle board manufacturing, but agreed those markets are not yet established at scale in Vermont or the immediate region. Lawmakers noted examples of mills and wood‑using facilities that have closed in recent years and said the lack of local processing capacity can send value out of state — commonly to Canada — and create tariff exposure when products are imported back.

Members asked about the new owners' ability to complete efficiency requirements. Long said he had not met the new owners and did not have data on their capacity, but contrasted their situation with prior owners who had been in long‑term financial difficulty. Representative Scott Campbell referenced a written document the department provided, the Ryegate Power Station Closure Contingency Scenario and Remediation Report (03/08/2022), which committee staff confirmed is available in the bill folder and witness subfolder.

Committee members emphasized support for the forest economy and said they would be more hesitant if repeated extension requests continued. One lawmaker said she supported the one‑year extension but noted Ryegate "has come back several times now asking for extensions, and so I would feel very differently, I think, about a similar request a year from now."

The committee expects additional testimony from the Public Service Department at a later hearing about the station's role in local baseload power. No formal direction to staff or binding committee action was recorded during this session; the discussion focused on information gathering and the practical implications of allowing additional time for the new owners to complete efficiency upgrades.