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Vermont utilities warn frozen federal grants, administrative shifts and FEMA delays are slowing projects and raising costs
Summary
Municipal and cooperative utilities and VEPSA told the House committee that recent federal administrative changes, paused grants and slow FEMA reimbursements are delaying metering, resiliency and storage projects and could require utilities to accelerate or restructure planned work to avoid losing federal funds.
Representatives from Vermont's municipal utilities, joint action agencies and cooperatives told the House Energy and Digital Infrastructure Committee that federal grant pauses, shifting Department of Energy guidance and multi-year FEMA reimbursement timelines are creating operational and financial risk for local projects.
Ken Nolan, general manager of the Vermont Public Power Supply Authority (VEPSA), said congressionally directed spending that was negotiated with the Department of Energy has become difficult to deploy. "The administrative requirements made it almost impossible," he said of a planned revolving loan fund; VEPSA is working to convert a loan model into a one-time grant to avoid ongoing federal reporting burdens. Nolan also said officials advising VEPSA were told to avoid certain…
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