(Host) Congressman Peter Welch says a climate change bill passed by the House last week will be a big boost to Vermont's renewable energy industry and will create a lot of new jobs.

The state is expected to receive roughly $50 million a year to help retrofit older buildings and to provide new tax credits for homeowners.

VPRs Bob Kinzel reports.

(Kinzel) Congressman Welch says the climate change bill marks an historic shift in the way that the United States views energy issues.

The legislation is designed to reduce carbon emissions by encouraging the development of renewable energy sources and weatherization programs. It also discourages the generation of electricity from coal plants by forcing the facilities to either install cleaner emission technology or by requiring them to purchase carbon offsets from greener energy sources.

Welch says the bill will pump between 31 and 71 million dollars a year to Vermont's energy efficiency programs beginning in 2012:

(Welch) "All the evidence indicates that the biggest bang for the buck comes from energy efficiency that's within our control it has the most immediate impact and the impact that you create with energy efficiency steps goes directly to the bottom line of our businesses it goes directly to the bottom line of our homeowners and the steps you take generally require local labor you can't export the work required to retrofit a home that's a local mason, plumber contractor."

(Kinzel) Blair Hamilton is the director of Efficiency Vermont.  He says the new money will double the capacity of his group to retrofit older buildings:

(Hamilton) "Here in Vermont we have the potential to provide with these grants 30 to 50% of the costs of comprehensive home energy improvements to 2,000  to 4,000 homes per year. This would more than double our current rate of building retro fits in this state."

(Kinzel) Mike Rogers represents Green Homes America, a California based group that specializes in residential energy efficiency programs.  He says his firm is opening new offices around the country and would like to hire workers in Vermont:

(Rogers) "We'd like to do the same here in Vermont. This is real jobs, this is real solutions and its good home economics for Vermonters."

(Kinzel) Critics of the bill argue it will cause job layoffs because it will boost electric rates for business customers of coal burning plants.

Welch says he's aware of these concerns and he says that's a critical reason why the bill is being phased in over a number of years:

(Welch)"If you're going to go from this massive carbon economy to lightening up, do you do it gradually but in a sustained way or do you go cold turkey? It's just like a diet, you know. You go on a crash diet - most of the time they don't work. So this is a gradual phase in that takes into account the legitimate concerns of maintaining employment in the coal parts of the country."

(Kinzel) The bill now goes to the Senate for its consideration.

For VPR News, I'm Bob Kinzel in Montpelier.