Affordable‑housing developer urges targeted incentives and equity rules for state energy programs

Kathy Beyer, vice president of real estate development at Evernorth, told the Natural Resources & Energy Committee on Feb. 13 that Vermont should redesign parts of its energy‑incentive system so that lower‑income households receive deeper subsidies.

“How can we create a clean energy transition or future that’s gonna place our most vulnerable households at the front of the line instead of the back foot line?” Beyer said, summarizing her working group’s goals.

Why it matters: Beyer and other housing developers said the state’s energy incentive programs – including incentives administered by the efficiency utilities and the renewable‑energy tier 3 incentives – generally lack a built‑in equity weighting and can leave low‑income households behind because wealthier homeowners or market developers capture much of the available funding.

Policy recommendations offered: Beyer proposed several specific changes: weighting state incentives so that projects serving very low‑income residents receive higher payments; directing tier 3 (renewable‑energy) incentives toward LMI outcomes with stronger measurable targets; using incentives to reward builders who meet Vermont’s stringent energy code (noting enforcement gaps); and seeking a short extension of the sunset for net‑metered solar that supports affordable housing while a successor program is developed.

Examples and rationale: Beyer described Evernorth’s recent projects in Vermont, including a 24‑unit senior housing development that she said exceeded Passive House airtightness standards and serves very low‑income residents. She said Evernorth has invested nationally (stating it has raised more than $1.5 billion in equity) and that the firm often includes higher performance building techniques when state incentives make them workable.

Discussion points: Committee members asked about enforcement of Vermont’s energy code and municipal permitting; housing and energy stakeholders discussed the practical challenges of construction, training and material costs, and the limited capacity of smaller contractors. Beyer and other participants said targeted incentive shifts would not eliminate existing programs such as weatherization, but would reallocate existing incentive pools to prioritize deeper subsidies for LMI households.

Ending: Beyer said she welcomed further cross‑sector discussions and indicated Evernorth would be available for technical follow‑up and to testify on related bills.