Vermont Fails to Meet Energy Reduction Targets, State Auditor Reports

Jan 28, 2026, 2:44 AM

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Vermont's state government is struggling to meet its own energy reduction goals, according to a report from the State Auditor's Office. The findings highlight serious deficiencies in the implementation and monitoring of initiatives designed to reduce energy consumption and costs across state agencies.

The report, authored by Auditor Doug Hoffer, focuses on two primary initiatives: the State Agency Energy Plan and the State Energy Management Program. The former has provided guidance for reducing energy consumption since 1992, while the latter is managed by the Department of Buildings and General Services (BGS) to execute energy efficiency projects in government buildings.

Despite a requirement to report progress biennially, the BGS has failed to measure its advancement towards these energy reduction targets. It lacks a system to quantify the transportation fuel used by state employees and has no established method for tracking energy consumption in leased state buildings.

The auditor's findings reveal alarming instances where the BGS energy office has lost money instead of achieving expected energy efficiency savings. For example, a lighting project at the Barre Courthouse cost $143,170 more than its expected savings over its lifetime, according to Efficiency Vermont's estimates. This contrasts sharply with the department's internal estimate that suggested a loss of only $72,749.

A similar situation occurred at the government office building at 133 State St. in Montpelier, where the project is projected to cost $550,687 more than it will save. Initially, the department claimed it would save over $303,000, but this estimate was shown to be misleading.

The auditor's report points to a broader trend of miscalculation within the BGS. A comparison of the projected lifetime savings for 13 projects indicated that the department overestimated these savings by more than $1,666,500.

Moreover, the BGS has not pursued as many cost-saving projects as it has in the past. Historically, the program completes around five projects a year; however, over the last three fiscal years, this number has dwindled to only one or two annually. Staffing shortages are a likely cause, with one or both energy project manager positions remaining unfilled since 2021.

The auditor's report identified over 50 potential energy-saving projects from audits conducted between 2016 and 2024, yet only 15 of these have been completed. Hoffer emphasized the need for the BGS to adhere to reporting requirements and develop a comprehensive system for tracking energy use, as well as increase the number of completed projects.

In response to the findings, Wanda Minoli, commissioner of the BGS, acknowledged most of the auditor's conclusions and provided a timeline for implementing the recommended changes.

The report's implications are significant, as Vermont seeks to meet its climate goals and reduce reliance on fossil fuels. Effective energy management is crucial not only for financial savings but also for minimizing the state's environmental impact.

As the state grapples with these challenges, the urgency for action has never been more apparent. Adhering to the auditor's recommendations could pave the way for improved energy efficiency and better alignment with Vermont's sustainability targets.

In conclusion, the State Auditor's report sheds light on critical issues within Vermont's energy management efforts, emphasizing the need for accountability and improved systems to achieve the state's energy reduction goals effectively.

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