Senate committee reviews H.940: extends thermal-fund flexibility for Burlington Electric and aligns enhanced energy planning with Act 181

Legislative Counsel and invited witnesses presented H.940 to the Senate Natural Resources & Energy Committee on April 14, describing three unrelated parts of the House-passed bill: (1) expanded use of thermal energy and process-fuel funds by Burlington Electric Department (BED) for greenhouse-gas–reduction programs; (2) procedural amendments to enhanced energy planning that align review timelines and standards with Act 181 regional plan procedures; and (3) repeal of the Telecommunications Connectivity Advisory Board.

Ellen Cowsky of the Office of Legislative Council summarized the HB text, saying Section 1 would allow the one retail electric provider that is also an entity appointed under statute (Burlington Electric) to spend annual budgeted thermal energy and process-fuel funds and carry forward prior funds on programs that reduce fossil-fuel use and greenhouse-gas emissions in the thermal energy or transportation sector for calendar years 2027–2029. The provision would require the entity to prioritize weatherization and thermal-sector efficiency and to budget at least 60% of funds under the section for weatherization and thermal efficiency programs, with at least 60% of those funds targeted to low- and moderate-income customers. Planned expenditures would require Public Utility Commission (PUC) approval as part of the triannual energy-efficiency utility planning process, and the entity must report annually on program participation.

Cowsky said Sections 2–4 would weave the enhanced energy planning process into the regional plan adoption and review process created by Act 181. Under the proposal, regional planning commissions would submit draft regional plans to the Land Use Review Board (LURB) and the Department of Public Service for review; the Department would have 60 days to respond to draft plans. The bill also permits the Department of Public Service to issue provisional affirmative determinations of energy compliance in limited circumstances (for example, when a region adopts a plan out of cycle and notifies the Department at least 30 days before the first public hearing). An affirmative determination would remain in effect through the plan’s readoption cycle unless certain exceptions apply, and the Department or regional planning commission could continue a determination if the energy element has not changed.

Katherine Demetrich, Executive Director of the Northwest Regional Commission, told the committee regional planning commissions support the bill and highlighted five benefits: it gives the Department additional time after adoption of the state comprehensive energy plan to publish implementing standards; it aligns LURB and Department review timelines; it allows reliance on regional hearings rather than a separate Department hearing; it provides provisional determinations to cover a procedural gap; and it allows simple continuation of determinations where the energy element is unchanged. Demetrich said aligning the processes will make reviews more efficient and allow public comment to be heard at times when it can shape plans.

A Department of Public Service deputy planning director (name not stated in the record) described operational pressures that motivated the bill: Act 181’s changes increased the frequency with which regional plans come to the Department for review, creating a workload that previously required roughly a full-time equivalent of staff time; the bill aims to make procedural changes that reduce duplicative hearings and align review steps. The deputy director confirmed the Department worked with regional planning commissions and the Land Use Review Board while drafting the language.

Committee members asked for clarifications about how the "enhanced energy planning standards" are developed and who is engaged in that process. Witnesses said standards are developed as part of the state comprehensive energy-plan process with stakeholder engagement that includes regional commissions, agencies and industry; the Department will publish standards within one year after adoption of the comprehensive energy plan. Members also discussed how the plans map natural-resource constraints (wetlands, deer wintering habitat, prime soils), preferred siting areas (brownfields, landfills) and grid connections (three-phase lines) to inform where generation and other projects are appropriate.

Cowsky also noted the bill repeals the Telecommunications Connectivity Advisory Board, which had not met since at least 2021; that repeal drew no opposition in committee testimony.

The committee continued consideration of H.940 and indicated it will hear additional testimony from the Land Use Review Board and Legislative Counsel where needed before final action.