A Birthday for the State’s “Tier 3” Program

Vermont's Energy Transformation Program, also known as the “Tier III” turns ten years old next year. Created by the Legislature through Act 56 in 2015 and implemented starting in 2017, the program encourages electric utilities across the state to help members reduce fossil fuel use through technologies such as heat pumps, electric vehicles, heat pump water heaters, and other electrification measures.

Since the program began in 2017, VEC has offered members incentives to save energy and reduce emissions. Over the last ten years, VEC exceeded the state's Tier III requirements. To date, more than 7,500 members have taken advantage of the program, saving an estimated 24 million gallons of fossil fuel, which is the equivalent of taking 45,000 fossil-fuel-powered cars off the road for a year. 

One element of VEC’s efforts – the Clean Air Program – has been particularly helpful in reducing pollution. The Clean Air Program helps members replace diesel, propane, and fuel-oil powered equipment and operations with electricity and has supported projects ranging from maple sugaring operations to gravel operations to sawmills. Clean Air Program projects save about 700,000 gallons of fossil fuel annually, making the program a major contributor to VEC's Tier III success. (The Goodridge sawmill, pictured above, recently participated in a Clean Air project with VEC).

While incentives provide immediate financial benefits to members who buy electric vehicles, heat pumps, and other technologies, they also create long-term value for other members of the cooperative as well. That’s because the added electrical load helps pay for the co-op’s infrastructure, like poles and wires, that all members benefit from. When developing these incentives, VEC evaluates whether increased electricity sales from these technologies will generate benefits that ultimately exceed the cost of the incentives.

As VEC looks ahead to the next decade, electrification will be key to Vermont's energy future as we continue to electrify heating, transportation and land-based businesses. Technology will evolve, and VEC will continue to support its members who want to choose electricity.