Governor Scott Signs State Budget With Some Criticism, Will Veto Renewable Energy Standard

Governor Scott took action on several bills Thursday, including the renewable energy standard and the state budget, one of which left his desk with a signature and the other without. (Photo file)

Montpelier, VT – Governor Scott took action Thursday on several pieces of legislation, but most notably the state budget and a bill that would require Vermont’s electric utilities to use only renewable sources by 2035 or earlier.

Governor Scott vetoed H.289, the renewable energy standard, because he believed it would raise utility costs for Vermonters beyond their means. In a statement, Scott said: “I don’t think there is any debate that H.289 will raise utility rates for Vermonters, probably by hundreds of millions of dollars. And while that alone is reason enough to merit a veto, the frustration becomes even more frustrating when you consider that our Department of Public Service has proposed a much stronger plan to the Legislature at a fraction of the cost.

Scott said the Department of Public Service’s plan would provide similar environmental goals to H.289, but at a lower price, and urged lawmakers to consider the economic situation of working-class Vermonters. “I sincerely hope that, given a better alternative to this bill, the Legislature will think about Vermonters and the cost of living and uphold this veto,” Scott said.

Senate President Pro Tem Phil Baruth reacted sharply to Governor Scott’s veto, saying in part: “Unfortunately, Governor Scott and his party automatically oppose any policy that moves the needle on fossil fuel addiction. Each session, we introduce carefully crafted legislation to reduce Vermont’s greenhouse gas emissions and protect lower-income Vermonters; “Governor Scott and his allies then do everything in their power to defeat the bill.”

A renewable energy standard would require larger utilities to use hydro, wind or solar power by 2025, but smaller utilities by 2035. Baruth pointed to the Montpelier post office as evidence of climate damage that is having a lasting impact on the community. He also said that, as the last legislative session proved, once Scott vetoes it, the Legislature still has the ability to reject it.

Governor Scott signed H.883, an $8.6 billion state budget. He said he is making key investments in areas of concern he outlined in his State of the Union address, including housing, economic development and public safety. Notably, the budget does this without new or higher taxes at the state level, as tax and education spending issues continue to cause confusion across the state.

However, Scott’s signature was not without its criticism. He said the budget includes some expenses and fee increases that he considers unnecessary. Scott said: “By failing to make difficult choices this year and focusing limited resources on programs we cannot sustain, we are preparing for a very challenging fiscal development for FY26.”

The governor also congratulated Senate Appropriations Committee Chair Sen. Jane Kitchel as this is the last budget she will work on. Scott said: “Her more than fifty years of service in the legislative and executive branches is an example of public service. The work on this budget in particular shows that when we work together – and both sides are willing to give a little – we can create a budget that meets the needs of Vermonters without increasing their tax burden. I appreciate her cooperation and dedication to Vermonters.”