I, too, stand with the numerous businesses in support of the governor’s veto on H.520, not because I am in any way opposed to efficiency programs or the many positive elements of this bill that would help Vermont to address global climate change. My opposition stems from a concern for the adverse effect this proposal may have on Vermont’s business reputation and the fact that our legislators are reneging on a prior promise to Entergy/Vermont Yankee. If the bill were allowed to become law, it would only add substance to the contention that our business climate is unpredictable and hostile. The hastily crafted funding scheme sets a poor precedent.
Legislators have cited the profitability of Yankee’s parent company, Entergy, as another excuse to levy this tax. They have decried the amount of property taxes that Entergy pays, yet this is an agreement that was negotiated by this very body in a previous legislative session. Singling out Entergy to foot the bill sends out a negative signal to the many other profitable national firms here in Vermont. Is this a proper encouragement for employers while we are trying to attract good jobs to our state and losing our young people to states with more opportunities and lower costs of living? An unpredictable business climate coupled with higher electricity costs could significantly affect any company’s decisions to expand or relocate and invest in Vermont.
This legislative action may also have a negative impact on the state’s ability to negotiate future contracts with Hydro-Québec as well, or any other potential power generator that might consider Vermont as a place to do business.
I fully support efforts to increase efficiency measures, but there are better ways to go about achieving such goals. Vermont’s economy should not be undermined with such legislative action, nor should the integrity of this great state be devalued. Vermonters expect it and should not accept anything less.
The Legislature’s attack, on nuclear power seems antithetical to their concern with global climate change. If the goal is to truly address global warming, why then would they support a legislative initiative to target and penalize a large-scale, clean and affordable source of power within Vermont that can provide reliable electricity without significant fossil emissions; one that provides more than 600 highly technical jobs and currently contributes more than $200 million a year in economic benefit to Vermont? The connection between funding this initiative and having Entergy foot the bill is truly only a political convenience. It’s not fair, it’s not smart, and it’s not right.
I support the governor’s use of his veto pen.
Staige Davis
CEO of Lang McLaughry Spera
Former chairman, Vermont Business Roundtable
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