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Subchapter 001: GENERAL PROVISIONS
§ 8001. Renewable energy goals
(a) The General Assembly finds it in the interest of the people of the State to promote
the State energy policy established in section 202a of this title by:
(1) Balancing the benefits, lifetime costs, and rates of the State’s overall energy portfolio
to ensure that to the greatest extent possible the economic benefits of renewable
energy in the State flow to the Vermont economy in general, and to the rate-paying
citizens of the State in particular.
(2) Supporting development of renewable energy that uses natural resources efficiently
and related planned energy industries in Vermont, and the jobs and economic benefits
associated with such development, while retaining and supporting existing renewable
energy infrastructure.
(3) Providing an incentive for the State’s retail electricity providers to enter into
affordable, long-term, stably priced renewable energy contracts that mitigate market
price fluctuation for Vermonters.
(4) Developing viable markets for renewable energy and energy efficiency projects.
(5) Protecting and promoting air and water quality in the State and region through the
displacement of those fuels, including fossil fuels, that are known to emit or discharge
pollutants.
(6) Contributing to reductions in global climate change and anticipating the impacts on
the State’s economy that might be caused by federal regulation designed to attain
those reductions.
(7) Providing support and incentives to locate renewable energy plants of small and moderate
size in a manner that is distributed across the State’s electric grid, including locating
such plants in areas that will provide benefit to the operation and management of
that grid through such means as reducing line losses and addressing transmission and
distribution constraints.
(8) Promoting the inclusion, in Vermont’s electric supply portfolio, of renewable energy
plants that are diverse in plant capacity and type of renewable energy technology.
(b) The Commission shall adopt the rules that are necessary to allow the Commission and
the Department to implement and supervise programs pursuant to subchapter 1 of this
chapter. (Added 2003, No. 69, § 1, eff. June 17, 2003; amended 2005, No. 61, § 1; 2011, No. 47, § 6 (eff. May 25, 2011) and § 18; 2011, No. 170 (Adj. Sess.), § 1, eff. May 18, 2012; 2015, No. 56, § 21.)
§ 8002. Definitions
As used in this chapter:
(1) “Commission” means the Public Utility Commission under section 3 of this title.
(2) “Commissioned” or “commissioning” means the first time a plant is put into operation
following initial construction or modernization if the costs of modernization are
at least 50 percent of the costs that would be required to build a new plant including
all buildings and structures technically required for the new plant’s operation. However,
these terms shall not include activities necessary to establish operational readiness
of a plant.
(3) “CPI” means the Consumer Price Index for all urban consumers, designated as “CPI-U,”
in the northeast region, as published by the U.S. Department of Labor, Bureau of Labor
Statistics.
(4) “Customer” means a retail electric consumer.
(5) “Department” means the Department of Public Service under section 1 of this title, unless the context clearly indicates otherwise.
(6) “Energy conversion efficiency” means the effective use of energy and heat from a combustion
process.
(7) “Environmental attributes” means the characteristics of a plant that enable the energy
it produces to qualify as renewable energy and include any and all benefits of the
plant to the environment such as avoided emissions or other impacts to air, water,
or soil that may occur through the plant’s displacement of a nonrenewable energy source.
(8) “Existing renewable energy” means renewable energy produced by a plant that came into
service prior to or on December 31, 2009.
(9) “Greenhouse gas reduction credits” shall be as defined in section 8006a of this title.
(10) “Group net metering system” means a net metering system serving more than one customer,
or a single customer with multiple electric meters, located within the service area
of the same retail electricity provider. Various buildings owned by municipalities,
including water and wastewater districts, fire districts, villages, school districts,
and towns, may constitute a group net metering system. A union or district school
facility may be considered in the same group net metering system with buildings of
its member schools that are located within the service area of the same retail electricity
provider. A system that files a complete application for a certificate of public good
on or after January 1, 2026 shall not qualify for group net metering, unless the plant
will be located on the same parcel, or a parcel adjacent to, the parcel where the
energy is utilized.
(11) “kW” means kilowatt or kilowatts (AC).
(12) “kWh” means kW hour or hours.
(13) “MW” means megawatt or megawatts (AC).
(14) “MWH” means MW hour or hours.
(15) “Net metering” means measuring the difference between the electricity supplied to
a customer and the electricity fed back by the customer’s net metering system during
the customer’s billing period:
(A) Using a single, non-demand meter or other meter that would otherwise be applicable
to the customer’s usage but for the use of net metering.
(B) If the system serves more than one customer, using multiple meters. The calculation
shall be made by converting all meters to a non- demand, non-time-of-day meter, and
equalizing them to the tariffed kWh rate.
(16) “Net metering system” means a plant for generation of electricity that:
(A) is of not more than 500 kW capacity;
(B) operates in parallel with facilities of the electric distribution system;
(C) is intended primarily to offset the customer’s own electricity requirements and does
not primarily supply electricity to electric vehicle supply equipment, as defined
in section 201 of this title, for the resale of electricity to the public by the kWh or for other retail sales
to the public, including those based in whole or in part on a flat fee per charging
session or a time-based fee for occupying a parking space while using electric vehicle
supply equipment;
(D)(i) employs a renewable energy source; or
(ii) is a qualified micro-combined heat and power system of 20 kW or fewer that meets the
definition of combined heat and power in subsection 8015(b) of this title and uses any fuel source that meets air quality standards; and
(E)(i) for a system that files a complete application for a certificate of public good after
December 31, 2024, except for systems as provided for in subdivision (ii) of this
subdivision (E), generates energy that will be used on the same parcel as, or a parcel
adjacent to, the parcel where the plant is located;
(ii) for a system that files a complete application for a certificate of public good after
December 31, 2025, if the system serves a multifamily building containing qualified
rental units serving low-income tenants, as defined under 32 V.S.A. § 5404a(a)(6), generates energy that will be used on the same parcel as, or a parcel adjacent to,
the parcel where the plant is located; and
(iii) for purposes of subdivisions (10) and (16), two parcels shall be adjacent if they
share a property boundary or are adjacent and separated only by a river, stream, railroad
line, private road, public highway, or similar intervening landform.
(17) “New renewable energy” means renewable energy capable of delivery in New England and
produced by a specific and identifiable plant coming into service on or after January
1, 2010, but excluding energy generated by a hydroelectric generation plant with a
capacity of 200 MW or greater.
(A) Energy from within a system of generating plants that includes renewable energy shall
not constitute new renewable energy, regardless of whether the system includes specific
plants that came or come into service on or after January 1, 2010.
(B) Except as provided in subdivision 8005(c)(3) of this title, “new renewable energy” also includes the additional energy from an existing renewable
energy plant retrofitted with advanced technologies or otherwise operated, modified,
or expanded to increase the kWh output of the plant in excess of a historical baseline
established by calculating the average output of that plant for the 10-year period
that ended January 1, 2010. If the production of new renewable energy through changes
in operations, modification, or expansion involves combustion of the resource, the
system also must result in an incrementally higher level of energy conversion efficiency
or significantly reduced emissions.
(18) “Plant” means an independent technical facility that generates electricity from renewable
energy. A group of facilities, such as wind turbines, shall be considered one plant
if the group is part of the same project and uses common equipment and infrastructure
such as roads, control facilities, and connections to the electric grid. Common ownership,
contiguity in time of construction, and proximity of facilities to each other shall
be relevant to determining whether a group of facilities is part of the same project.
(19) “Plant capacity” means the rated electrical nameplate for a plant, except that, in
the case of a solar energy plant, the term shall mean the aggregate AC nameplate capacity
of all inverters used to convert the plant’s output to AC power.
(20) “Plant owner” means a person who has the right to sell electricity generated by a
plant.
(21) “Renewable energy” means energy produced using a technology that relies on a resource
that is being consumed at a harvest rate at or below its natural regeneration rate.
(A) For purposes of this subdivision (21), methane gas and other flammable gases produced
by the decay of sewage treatment plant wastes or landfill wastes and anaerobic digestion
of agricultural products, byproducts, or wastes, or of food wastes shall be considered
renewable energy resources, but no other form of solid waste, other than silvicultural
waste, shall be considered renewable.
(B) For purposes of this subdivision (21), no form of nuclear fuel shall be considered
renewable.
(C) The only portion of electricity produced by a system of generating resources that
shall be considered renewable is that portion generated a technology that qualifies
as renewable under this subdivision (21).
(D) The Commission by rule may add technologies or technology categories to the definition
of “renewable energy,” provided that technologies using the following fuels shall
not be considered renewable energy supplies: coal, oil, propane, and natural gas.
(E) In this chapter, renewable energy refers to either “existing renewable energy” or
“new renewable energy.”
(22)(A) “Renewable pricing” shall mean an optional service provided or contracted for by an
electric company:
(i) under which the company’s customers may voluntarily either:
(I) purchase all or part of their electric energy from renewable sources as defined in
this chapter; or
(II) cause the purchase and retirement of tradeable renewable energy credits on the participating
customer’s behalf; and
(ii) that increases the company’s reliance on renewable sources of energy beyond those
the electric company would otherwise be required to provide under section 218c of this title.
(B) Renewable pricing programs may include:
(i) contribution-based programs in which participating customers can determine the amount
of a contribution, monthly or otherwise, that will be deposited in a Commission-approved
fund for new renewable energy project development;
(ii) energy-based programs in which customers may choose all or a discrete portion of their
electric energy use to be supplied from renewable resources;
(iii) facility-based programs in which customers may subscribe to a share of the capacity
or energy from specific new renewable energy resources.
(23) “Retail electricity provider” or “provider” means a company engaged in the distribution
or sale of electricity directly to the public.
(24) “Standard Offer Facilitator” means an entity appointed by the Commission pursuant
to subsection 8005a(a) of this title.
(25) [Repealed.]
(26) “Tradeable renewable energy credits” means all of the environmental attributes associated
with a single unit of energy generated by a renewable energy source where:
(A) those attributes are transferred or recorded separately from that unit of energy;
(B) the party claiming ownership of the tradeable renewable energy credits has acquired
the exclusive legal ownership of all, and not less than all, the environmental attributes
associated with that unit of energy; and
(C) exclusive legal ownership can be verified through an auditable contract path or pursuant
to the system established or authorized by the Commission or any program for tracking
and verification of the ownership of environmental attributes of energy legally recognized
in any state and approved by the Commission.
(27) “Vermont composite electric utility system” means the combined generation, transmission,
and distribution resources along with the combined retail load requirements of the
Vermont retail electricity providers.
(28) “Energy transformation project” means an undertaking that provides energy-related
goods or services but does not include or consist of the generation of electricity
and that results in a net reduction in fossil fuel consumption by the customers of
a retail electricity provider and in the emission of greenhouse gases attributable
to that consumption. Examples of energy transformation projects may include home weatherization
or other thermal energy efficiency measures; air source or geothermal heat pumps;
high efficiency heating systems; increased use of biofuels; biomass heating systems;
support for transportation demand management strategies; support for electric vehicles
or related infrastructure; and infrastructure for the storage of renewable energy
on the electric grid.
(29) “RES” means the Renewable Energy Standard established under sections 8004 and 8005 of this title.
(30) “Energy storage facility” has the same meaning as in section 201 of this title.
(31) “Load” means the total amount of electricity utilized by a retail electricity provider
over a 12-month calendar year period, including its retail electric sales, any use
by the provider itself not included in retail sales, and transmission and distribution
line losses associated with and allocated to the retail electricity provider.
(32) “Load growth” means the increase above a baseline year in a retail electricity provider’s
load. (Added 2003, No. 69, § 1, eff. June 17, 2003; amended 2005, No. 61, § 2; 2007, No. 92 (Adj. Sess.), § 19; 2009, No. 45, § 2, eff. May 27, 2009; 2009, No. 159 (Adj. Sess.), § 13, eff. July 1, 2012; 2011, No. 47, § 7, eff. May 25, 2011 and § 18; 2011, No. 125 (Adj. Sess.), § 8; 2011, No. 170 (Adj. Sess.), § 2, eff. May 18, 2012 and § 10; 2013, No. 89, § 14; 2013, No. 99 (Adj. Sess.), § 3, eff. Jan. 1, 2017; 2015, No. 56, § 25; 2017, No. 53, § 11; 2019, No. 59, § 33, eff. June 14, 2019; 2019, No. 81, § 4; 2021, No. 54, § 10; 2023, No. 179 (Adj. Sess.), § 2, eff. July 1, 2024.)
§ 8003. Renewable energy pricing
(a) An electric utility, municipal department formed under local charter or chapter 79
of this title, or electric cooperative formed under chapter 81 of this title may implement
a renewable energy pricing program under this section for its customers, or offer
customers the option of making a voluntary contribution to the Vermont Clean Energy
Development Fund established under section 8015 of this title. Such renewable energy pricing programs may include tariffs, standard special contracts,
or other arrangements whose purpose is to increase the company’s reliance on, or the
customer’s support of, renewable sources of energy or the type and quantity of renewable
energy resources available.
(b) A standard special contract for renewable pricing that has been approved as to form
and substance by the Commission under this section shall not require further approval
by the Commission under section 229 of this title as to individual customers who choose to execute that contract.
(c) Renewable pricing programs may be priced in the form of a premium relative to the
tariff that would otherwise apply; provided the premium shall be cost-based, shall
reasonably reflect the difference between acquiring the renewable energy and the utility’s
alternative cost of power, including administrative costs, and shall be adjusted via
such periodic adjustment mechanisms, including adjustment clauses, as the Commission
shall approve as part of a renewable pricing program. Any renewable pricing program
shall require that any costs of power in excess of the company’s alternative cost
of power shall be borne solely by those customers who elect to participate in the
renewable pricing program.
(d) Tradeable renewable energy credits (with or without other features), tradeable emissions
credits, emission offsets, or other market instruments created or obtained by energy
resources acquired pursuant to or as part of a renewable pricing program approved
under this section shall be permanently retired by or on behalf of the program’s subscribers,
and shall not be sold or otherwise disposed of. However, if a program is not fully
subscribed, any such instruments created or obtained by the unsubscribed portion of
the program may be sold or disposed of at no less than market value if the net proceeds
of such sale or disposal are used to reduce the cost paid under the renewable pricing
program.
(e) The Commission shall ensure that disclosures and representations made regarding renewable
pricing programs are accurate, are reasonably supported by objective data, disclose
the types of technologies used, whether the energy is Vermont-based or not, and clearly
distinguish between energy or tradeable energy credits provided from renewable and
nonrenewable sources, and existing and new sources.
(f) [Repealed.]
(g) The Commission shall consider the following factors in deciding whether and upon what
conditions to approve a proposed renewable energy pricing program:
(1) minimization of marketing and administrative expenses;
(2) auditing or certification of sources of energy or tradeable renewable energy credits;
(3) marketing and promotion plans;
(4) effectiveness of the program in meeting the goals of promoting renewable energy generation
and public understanding of renewable energy sources in Vermont;
(5) retention by the program of renewable energy production incentives, tax incentives,
and other incentives earned or otherwise obtained by energy resources acquired pursuant
to or as part of a renewable energy pricing program approved under this section to
reduce the cost of any premiums paid under this section; and
(6) costs imposed on nonparticipating customers arising on account of the implementation
of the voluntary renewable energy pricing program. (Added 2003, No. 69, § 1, eff. June 17, 2003; amended 2007, No. 92 (Adj. Sess.), § 20; 2009, No. 45, § 4a, eff. May 27, 2009.)
§ 8004. Sales of electric energy; Renewable Energy Standard (RES)
(a) Establishment; requirements. The RES is established. Under this program, a retail electricity provider shall not
sell or otherwise provide or offer to sell or provide electricity in the State of
Vermont without ownership of sufficient energy produced by renewable energy plants
or sufficient tradeable renewable energy credits from plants whose energy is capable
of delivery in New England that reflect the required amounts of renewable energy set
forth in section 8005 of this title or without support of energy transformation projects in accordance with that section.
A retail electricity provider may meet the required amounts of renewable energy through
eligible tradeable renewable energy credits that it owns and retires, eligible renewable
energy resources with environmental attributes still attached, or a combination of
those credits and resources.
(b) Rules. The Commission shall adopt the rules that are necessary to allow the Commission and
the Department to implement and supervise further the implementation and maintenance
of the RES.
(c) RECS; banking. The Commission shall allow a provider that has met the required amount of renewable
energy in a given year, commencing with 2017, to retain tradeable renewable energy
credits created or purchased in excess of that amount for application to the provider’s
required amount of renewable energy in one of the following three years.
(d) Alternative compliance payment. In lieu of purchasing renewable energy or tradeable renewable energy credits or supporting
energy transformation projects to satisfy the requirements of this section and section 8005 of this title, a retail electricity provider in this State may pay to the Vermont Clean Energy
Development Fund established under section 8015 of this title an alternative compliance payment at the applicable rate set forth in section 8005.
The administrator of the Vermont Clean Energy Development Fund shall use the payment
from a retail electricity provider electing to make an alternative compliance payment
to satisfy its obligations under subdivisions 8005(a)(1), 8005(a)(2), 8005(a)(4), and 8005(a)(5) of this title for the development of renewable energy plants that are intended to serve and benefit
customers with low income of the retail electricity provider that has made the payment.
Such plants shall be located within the provider’s service territory, if feasible.
In the event that such a payment is insufficient to enable the development of a renewable
energy plant, the administrator may use the payment for other initiatives allowed
under section 8015 of this title that will benefit customers with low income of the retail electricity provider that
has made the payment. As used in this subsection (d), “customer with low income” means
a person purchasing energy from a retail electricity provider and with an income that
is less than or equal to 80 percent of area median income, adjusted for family size,
as published annually by the U.S. Department of Housing and Urban Development.
(e) VPPSA members. In the case of members of the Vermont Public Power Supply Authority, the requirements
of this chapter may be met in the aggregate.
(f) Joint efforts. Retail electricity providers may engage in joint efforts to meet one or more categories
within the RES. (Added 2003, No. 69, § 1, eff. June 17, 2003; amended 2005, No. 61, § 3; 2005, No. 208 (Adj. Sess.), § 14; 2007, No. 92 (Adj. Sess.), § 21; 2009, No. 45, § 3, eff. May 27, 2009; 2011, No. 47, §§ 18, 20m(a); 2015, No. 56, § 2; 2023, No. 179 (Adj. Sess.), § 3, eff. July 1, 2024.)
§ 8005. RES categories
(a) Categories. This section specifies five categories of required resources to meet the requirements
of the RES established in section 8004 of this title: total renewable energy, distributed renewable generation, energy transformation,
new renewable energy, and load growth renewable energy. In order to support progress
toward Vermont’s climate goals and requirements, a provider may, but shall not be
required to, exceed the statutorily required amounts under this section.
(1) Total renewable energy.
(A) Purpose; establishment. To encourage the economic and environmental benefits of renewable energy, this subdivision
establishes, for the RES, minimum total amounts of renewable energy within the supply
portfolio of each retail electricity provider. To satisfy this requirement, a provider
may use renewable energy with environmental attributes attached or any class of tradeable
renewable energy credits generated by any renewable energy plant whose energy is capable
of delivery in New England.
(B) Required amounts. The amounts of total renewable energy required by this subsection (a) shall be 63
percent of each retail electricity provider’s annual load during the year beginning
on January 1, 2025, increasing by at least an additional four percent each third January
1 thereafter until reaching 100 percent:
(i) on and after January 1, 2035 for a retail electricity provider who serves a single
customer that takes service at 115 kilovolts and each municipal retail electricity
provider formed under local charter or chapter 79 of this title; and
(ii) on and after January 1, 2030, for all other retail electricity providers.
(C) Relationship to other categories. Distributed renewable generation used to meet the requirements of subdivision (2)
of this subsection (a), new renewable energy under subdivision (4) of this subsection
(a), and load growth renewable generation under subdivision (5) of this subsection
(a) shall also count toward the requirements of this subdivision. However, an energy
transformation project under subdivision (3) of this subsection (a) shall not count
toward the requirements of this subdivision.
(D) Municipal providers; petition. On petition by a provider that is a municipal electric utility serving not more than
7,000 customers, the Commission may reduce the provider’s required amount under this
subdivision (1) for a period of up to three years. The Commission may approve one
such period only for a municipal provider. The Commission may reduce this required
amount if it finds that:
(i) the terms or conditions of an environmental permit or certification necessitate a
reduction in the electrical energy generated by an in-state hydroelectric facility
that the provider owns and that this reduction will require the provider to purchase
other renewable energy with environmental attributes attached or tradeable renewable
energy credits in order to meet this required amount; and
(ii) this purchase will:
(I) cause the provider to increase significantly its retail rates; or
(II) materially impair the provider’s ability to meet the public’s need for energy services
after safety concerns are addressed, in the manner set forth in subdivision 218c(a)(1)
(least-cost integrated planning) of this title.
(2) Distributed renewable generation.
(A) Purpose; establishment. This subdivision establishes a distributed renewable generation category for the RES.
This category encourages the use of distributed generation to support the reliability
of the State’s electric system; reduce line losses; contribute to avoiding or deferring
improvements to that system necessitated by transmission or distribution constraints;
and diversify the size and type of resources connected to that system. This category
requires the use of renewable energy for these purposes to reduce environmental and
health impacts from air emissions that would result from using other forms of generation.
(B) Definition. As used in this section, “distributed renewable generation” means:
(i) a renewable energy plant that has a plant capacity of five MW or less;
(ii) is one of the following:
(I) new renewable energy;
(II) a hydroelectric renewable energy plant that is, on or before January 1, 2024, owned
and operated by a municipal electric utility formed under local charter or chapter
79 of this title, as of January 1, 2020, including future plant modifications that
do not cause the capacity of such a plant to exceed five MW; or
(III) a hydroelectric renewable energy plant that is, on or before January 1, 2024, owned
and operated by a retail electricity provider that is not a municipal electric utility,
provided such plant is and continues to be certified by the Low Impact Hydropower
Institute. Plants owned by such utilities on or before January 1, 2024, which are
later certified by the Low Impact Hydropower Institute, and continue to be certified
shall be eligible under this subdivision (2) from the date of certification. Any future
modifications that do not cause the capacity of such a plant to exceed five MW shall
also be eligible under this subdivision (2); and
(iii) is one of the following:
(I) is directly connected to the subtransmission or distribution system of a Vermont retail
electricity provider;
(II) is directly connected to the transmission system of an electric company required to
submit a Transmission System Plan under subsection 218c(d) of this title, if the plant is part of a plan approved by the Commission to avoid or defer a transmission
system improvement needed to address a transmission system reliability deficiency
identified and analyzed in that Plan; or
(III) is a net metering system approved under the former section 219a or under section 8010 of this title if the system is new renewable energy and the interconnecting retail electricity
provider owns and retires the system’s environmental attributes.
(C) Required amounts. The required amounts of distributed renewable generation shall be 5.8 percent of each
retail electricity provider’s annual load during the year beginning on January 1,
2025, increasing by at least an additional:
(i) one and a half percent each subsequent January 1 until reaching 20 percent on and
after January 1, 2035 for a retail electricity provider who serves a single customer
that takes service at 115 kilovolts and each municipal electric utility formed under
local charter or chapter 79 of this title; and
(ii) two percent each subsequent January 1 until reaching 20 percent on and after January
1, 2032 for all other retail electricity providers.
(D) Distributed generation greater than five MW. On petition of a retail electricity provider, the Commission may for a given year
allow the provider to employ energy with environmental attributes attached or tradeable
renewable energy credits from a renewable energy plant with a plant capacity greater
than five MW to satisfy the distributed renewable generation requirement if the plant
would qualify as distributed renewable generation but for its plant capacity when
the provider demonstrates either that:
(i) it is unable during a given year to meet the requirement solely with qualifying renewable
energy plants of five MW or less. To demonstrate this inability, the provider shall
issue one or more requests for proposals, and show that it is unable to obtain sufficient
ownership of environmental attributes to meet its required amount under this subdivision
(2) for that year from:
(I) the construction and interconnection to its system of distributed renewable generation
that is consistent with its approved least-cost integrated resource plan under section 218c of this title at a cost less than or equal to the sum of the applicable alternative compliance
payment rate and the applicable rates published by the Department under the Commission’s
rules implementing subdivision 209(a)(8) of this title; and
(II) purchase of tradeable renewable energy credits for distributed renewable generation
at a cost that is less than the applicable alternative compliance rate; or
(ii) it has only one retail electricity customer who takes service at 115 kilovolts on
property owned or controlled by the customer as of January 1, 2024. Such a provider
may seek leave under this subdivision (D) for a period greater than a given year.
(3) Energy transformation.
(A) Purpose; establishment. This subdivision establishes an energy transformation category for the RES. This category
encourages Vermont retail electricity providers to support additional distributed
renewable generation or to support other projects to reduce fossil fuel consumed by
their customers and the emission of greenhouse gases attributable to that consumption.
A retail electricity provider may satisfy the energy transformation requirement through
distributed renewable generation in addition to the generation used to satisfy subdivision
(2) of this subsection (a) or energy transformation projects or a combination of such
generation and projects.
(B) Required amounts. For the energy transformation category, the required amounts shall be 7.33 percent
of each retail electricity provider’s annual load during the year beginning January
1, 2025, increasing by at least an additional two-thirds of a percent each subsequent
January 1 until reaching 12 percent on and after January 1, 2032. However, in the
case of a provider that is a municipal electric utility serving not more than 7,000
customers, the required amount shall be six percent of the provider’s load beginning
on January 1, 2025, increasing by an additional two-thirds of a percent each subsequent
January 1 until reaching 10 and two-thirds percent on and after January 1, 2032. Prior
to January 1, 2019, such a municipal electric utility voluntarily may engage in one
or more energy transformation projects in accordance with this subdivision (3). In
order to support progress toward Vermont’s climate goals and requirements, a retail
electricity provider may, but shall not be required to, exceed the statutorily required
amounts, up to and including procuring all available energy transformation category
projects and measures available at or below the relevant alternative compliance payment
rate.
(C) Eligibility criteria. For an energy transformation project to be eligible under this subdivision (a)(3),
each of the following shall apply:
(i) Implementation of the project shall have commenced on or after January 1, 2015.
(ii) Over its life, the project shall result in a net reduction in fossil fuel consumed
by the provider’s customers and in the emission of greenhouse gases attributable to
that consumption, whether or not the fuel is supplied by the provider.
(iii) The project shall meet the need for its goods or services at the lowest present value
life cycle cost, including environmental and economic costs. Evaluation of whether
this subdivision (iii) is met shall include analysis of alternatives that do not increase
electricity consumption.
(iv) The project shall cost the utility less per MWH than the applicable alternative compliance
payment rate.
(D) Conversion. For the purpose of determining eligibility and the application of the energy transformation
project to a provider’s annual requirement, the provider shall convert the net reduction
in fossil fuel consumption resulting from the energy transformation project to a MWH
equivalent of electric energy, in accordance with rules adopted by the Commission.
The conversion shall use the most recent year’s approximate heat rate for electricity
net generation from the total fossil fuels category as reported by the U.S. Energy
Information Administration in its Monthly Energy Review. If an energy transformation
project is funded by more than one regulated entity, the Commission shall prorate
the reduction in fossil fuel consumption among the regulated entities. In this subdivision
(D), “regulated entity” includes each provider and each efficiency entity appointed
under subsection 209(d) of this title.
(E) Other sources.
(i) A retail electricity provider or a provider’s partner may oversee an energy transformation
project under this subdivision (3). However, the provider shall deliver the project’s
goods or services in partnership with persons other than the provider unless exclusive
delivery through the provider is more cost-effective than delivery by another person
or there is no person other than the provider with the expertise or capability to
deliver the goods or services.
(ii) An energy transformation project may provide incremental support to a program authorized
under Vermont statute that meets the eligibility criteria of this subdivision (3)
but may take credit only for the additional amount of service supported and shall
not take credit for that program’s regularly budgeted or approved investments.
(iii) To meet the requirements of this subdivision (3), one or more retail electricity providers
may jointly propose with an energy efficiency entity appointed under subdivision 209(d)(2) of this title an energy transformation project or group of such projects. The proposal shall include
standards of measuring performance and methods to allocate savings and reductions
in fossil fuel consumption and greenhouse gas emissions among each participating provider
and efficiency entity.
(F) Implementation. To carry out this subdivision (3), the Commission shall adopt rules:
(i) For the conversion methodology in accordance with subdivision (3)(D) of this subsection
(a).
(ii) To provide a process for prior approval of energy transformation projects by the Commission
or its designee. This process shall ensure that each of these projects meets the requirements
of this subdivision (3) and need not consist of individual review of each energy transformation
project prior to implementation as long as the mechanism ensures those requirements
are met. An energy transformation project that commenced prior to initial adoption
of rules under this subdivision (F) may seek approval after such adoption.
(iii) For cost-effectiveness screening of energy transformation projects. This screening
shall be consistent with the provisions of this subdivision (3) and, as applicable,
the screening tests developed under subsections 209(d) (energy efficiency) and 218c(a)
(least-cost integrated planning) of this title.
(iv) To allow a provider who has met its required amount under this subdivision (3) in
a given year to apply excess net reduction in fossil fuel consumption, expressed as
a MWH equivalent, from its energy transformation project or projects during that year
toward the provider’s required amount in a future year.
(v) To ensure periodic evaluation of an energy transformation project’s claimed fossil
fuel reductions, avoided greenhouse gas emissions, conversion to MWH equivalent, cost-effectiveness
and, if applicable, energy savings, and to ensure annual verification and auditing
of a provider’s claims regarding project completion and resulting MWH equivalent.
Changes to project claims resulting from periodic evaluations shall not reduce retroactively
claims made on behalf of a project approved under subdivision (3)(F)(ii) of this subsection
(a) or reduce verified claims carried forward under subdivision (3)(F)(iv) of this
subsection (a).
(vi) To ensure that all ratepayers have an equitable opportunity to participate in, and
benefit from, energy transformation projects regardless of rate class, income level,
or provider service territory.
(vii) To ensure the coordinated delivery of energy transformation projects with the delivery
of similar services, including low-income weatherization programs, entities that fund
and support affordable housing, energy efficiency programs delivered under section 209 of this title, and other energy efficiency programs delivered locally or regionally within the
State.
(viii) To ensure that, if an energy transformation project will increase the use of electric
energy, the project incorporates best practices for demand management, uses technologies
appropriate for Vermont, and encourages the installation of the technologies in buildings
that meet minimum energy performance standards.
(ix) To provide a process under which a provider may withdraw from or terminate, in an
orderly manner, an ongoing energy transformation project that no longer meets the
eligibility criteria because of one or more factors beyond the control of the project
and the provider.
(G) Petitions. On petition of a retail electricity provider in any given year, the Commission may:
(i) reduce the provider’s required amount under this subdivision (3) for that year, without
penalty or alternative compliance payment, if the Commission finds that compliance
with the required amount for that year will:
(I) cause the provider to increase significantly its retail rates; or
(II) materially impair the provider’s ability to meet the public’s need for energy services
after safety concerns are addressed, in the manner set forth in subdivision 218c(a)(1)
(least-cost integrated planning) of this title; or
(ii) allow a provider who failed to achieve the required amount under this subdivision
(3) during the preceding year to avoid paying the alternative compliance payment if
the Commission:
(I) finds that the provider made a good faith effort to achieve the required amount and
its failure to achieve that amount resulted from market factors beyond its control;
and
(II) directs that the provider add the difference between the required amount and the provider’s
actually achieved amount for that year to its required amount for one or more future
years.
(4) New renewable energy.
(A) Purpose; establishment. This subdivision (4) establishes a new regional renewable energy category for the
RES. This category encourages the use of new renewable generation to support the reliability
of the regional ISO-NE electric system. To satisfy this requirement, a provider shall
use new renewable energy with environmental attributes attached or any class of tradeable
renewable energy credits generated by any renewable energy plant coming into service
after January 1, 2010 whose energy is capable of delivery in New England.
(B) Required amounts and exemption. A retail electricity provider that is 100 percent renewable under subdivision (b)(1)
of this section shall be exempt from any requirement for new renewable energy under
this subdivision (4). For all other retail electricity providers, the amount of new
renewable energy required by this subsection (a) shall be:
(i) For a retail electricity provider with 75,000 or more customers, the following percentages
of each provider’s annual load:
(I) Four percent beginning on January 1, 2027.
(II) 10 percent on and after January 1, 2030.
(III) 15 percent on and after January 1, 2032.
(IV) 20 percent on and after January 1, 2035. If the Commission determines in the report
required under subdivision 202b(e)(9) of this title that it is reasonable to expect that there will be sufficient new regional renewable
resources available for a provider to meet its requirement under this subdivision
(4) at or below the alternative compliance payment rate established in subdivision
(6)(C) of this subsection (a) during a year beginning prior to January 1, 2035, the
Commission shall require that provider to meet its requirement under this subdivision
(4) in the earliest year the Commission determines it can, provided that the provider
shall not be required to meet that requirement prior to the year starting January
1, 2032.
(ii) For a retail electricity provider with less than 75,000 customers, the following percentages
of each provider’s annual load:
(I) five percent beginning on January 1, 2030; and
(II) 10 percent on and after January 1, 2035.
(C) Relationship to other categories. Distributed renewable generation used to meet the requirements of subdivision (2)
of this subsection (a) shall not also count toward the requirements of this subdivision
(4). An energy transformation project under subdivision (3) of this subsection (a)
shall not count toward the requirements of this subdivision (4).
(D) Single-customer provider. If a retail electricity provider with one customer taking service at 115 kilovolts
has not satisfied the distributed renewable generation requirements of subdivision
(2) of this subsection (a) on property owned or controlled by the customer as of January
1, 2024, and the cost of additional distributed renewable generation would be at or
above the alternative compliance payment rate for the distributed renewable generation
category or meeting that requirement with new renewable energy on its property would
be economically infeasible, that provider may satisfy the requirements of subdivision
(2) of this subsection (a) with an equivalent amount of increased new renewable energy
as defined in this subdivision (4).
(5) Load growth; retail electricity providers; 100 percent renewable.
(A) For any retail electricity provider that is 100 percent renewable under subdivision
(b)(1) of this section, that provider shall meet its load growth above its 2024 calendar
year load, with at least the following percentages of new renewable energy or any
renewable energy eligible under subdivision (2) of this subsection (a):
(i) 50 percent beginning on January 1, 2025;
(ii) 75 percent on and after January 1, 2026;
(iii) 90 percent on and after January 1, 2027;
(iv) 100 percent on and after January 1, 2028 until the provider’s annual load exceeds
135 percent of the provider’s 2022 annual load, at which point the provider shall
meet its additional load growth with at least 50 percent new renewable energy until
2035; and
(v) 75 percent on and after January 1, 2035.
(B) For a retail electricity provider with 75,000 or more customers, and for each provider,
excluding any provider that is 100 percent renewable under subdivision (b)(1) of this
section, that is a member of the Vermont Public Power Supply Authority or its successor,
that provider shall meet its load growth above its 2035 calendar year load with 100
percent new renewable energy, which shall include the required amounts of distributed
renewable generation as applicable to the provider under subdivision (2) of this subsection
(a).
(C) On petition of a retail electricity provider subject to the load growth requirements
in subdivision (A) of this subdivision (a)(5), the Commission may for a given year
allow the provider to employ existing renewable energy with environmental attributes
attached or tradeable renewable energy credits from an existing renewable energy plant
to satisfy part or all of the load growth requirement if the provider demonstrates
that, after making every reasonable effort, it is unable during that year to meet
the requirement with energy with environmental attributes attached or tradeable renewable
energy credits from qualifying new renewable energy plants.
(i) To demonstrate this inability, the provider shall at a minimum timely issue one or
more subsequent requests for proposals or transactions and any additional solicitations
as necessary to show that it is unable to obtain sufficient ownership of environmental
attributes from new renewable energy to meet its required amount under this subdivision
at a cost that is less than or equal to the applicable alternative compliance rate
for the load growth category.
(ii) In the event the provider is able to meet a portion, but not all, of its load growth
requirement in a calendar year with attributes from new renewable energy at a cost
that is less than or equal to the applicable alternative compliance rate for the load
growth category, the Commission shall allow the provider to use existing renewables
only for that portion of its requirement that it is unable to meet with new renewable
energy.
(iii) In the event that the provider is unable to meet its load growth requirement with
a combination of attributes from new renewable energy and existing renewable energy
at a cost that is less than or equal to the alternative compliance rate laid out in
subdivision (6) of this subsection (a), the Commission shall require the provider
to meet the remainder of its requirement under this subdivision (5) by paying the
alternative compliance rate for the load growth category.
(D) Notwithstanding any provision of law to the contrary, any additional energy available
to a retail electricity provider that is 100 percent renewable under subdivision (b)(1)
of this section under agreements approved or authorized by the Public Utility Commission
in its April 15, 2011 Order issued in Docket No. 7670, Petition of twenty Vermont
utilities and Vermont Public Power Supply Authority requesting authorization for the
purchase of 218 MW to 225 MW of electricity shall also be eligible to meet the requirements
laid out in subdivision (A) of this subdivision (a)(5), provided that such additional
energy does not exceed two MW, and further provided that a retail electricity provider
exercises its right to such energy on or before January 1, 2028 and for no longer
than through December 31, 2038.
(6) Alternative compliance rates.
(A) The alternative compliance payment rates for the categories established by subdivisions
(1)–(3) of this subsection (a) shall be:
(i) total renewable energy requirement — $0.01 per kWh; and
(ii) distributed renewable generation and energy transformation requirements — $0.06 per
kWh.
(B) The Commission shall adjust these rates for inflation annually commencing January
1, 2018, using the CPI.
(C) For the new renewable energy and load growth requirements, it shall be $0.04 per kWh
annually commencing on January 1, 2025, with calculations for inflation beginning
on January 1, 2023.
(D) The Commission shall have the authority to adjust the alternative compliance payment
rate for the new renewable energy and load growth requirements differently than the
rate of inflation in order to minimize discrepancies between this rate and alternative
compliance payments for similar classes in other New England states and to increase
the likelihood that Vermont retail electricity providers cost-effectively achieve
these requirements, if it determines doing so is consistent with State energy policy
under section 202a of this title.
(b) Reduced amounts; providers; 100 percent renewable.
(1) The provisions of this subsection shall apply to a retail electricity provider that:
(A) as of January 1, 2015, was entitled, through contract, ownership of energy produced
by its own generation plants, or both, to an amount of renewable energy equal to or
more than 100 percent of its anticipated total retail electric sales in 2017, regardless
of whether the provider owned the environmental attributes of that renewable energy;
and
(B) annually each July 1 commencing in 2018, owns and has retired tradeable renewable
energy credits monitored and traded on the New England Generation Information System
or otherwise approved by the Commission equivalent to 100 percent of the provider’s
total retail sales of electricity for the previous calendar year.
(2) A provider meeting the requirements of subdivision (1) of this subsection may:
(A) satisfy the distributed renewable generation requirement of this section by accepting
net metering systems within its service territory pursuant to the provisions of this
title that govern net metering; and
(B) if the Commission has appointed the provider as an energy efficiency entity under
subsection 209(d) of this title, propose to the Commission to reduce the energy transformation requirement that would
otherwise apply to the provider under this section.
(i) The provider may make and the Commission may review such a proposal in connection
with a periodic submission made by the provider pursuant to its appointment under
subsection 209(d) of this title.
(ii) The Commission may approve a proposal under this subdivision (B) if it finds that:
(I) the energy transformation requirement that would otherwise apply under this section
exceeds the achievable potential for cost-effective energy transformation projects
in the provider’s service territory that meet the eligibility criteria for these projects
under this section; and
(II) the reduced energy transformation requirement proposed by the provider is not less
than the amount sufficient to ensure the provider’s deployment or support of energy
transformation projects that will acquire that achievable potential.
(iii) The measure of cost-effectiveness under this subdivision (B) shall be the alternative
compliance payment rate established in this section for the energy transformation
requirement.
(c) Biomass.
(1) Distributed renewable generation that employs biomass to produce electricity shall
be eligible to count toward a provider’s distributed renewable generation or energy
transformation requirement only if the plant satisfies the requirements of subdivision
(3) of this subsection and produces both electricity and thermal energy from the same
biomass fuel and the majority of the energy recovered from the plant is thermal energy.
(2) Distributed renewable generation and energy transformation projects that employ forest
biomass to produce energy shall comply with renewability standards adopted by the
Commissioner of Forests, Parks and Recreation under 10 V.S.A. § 2751. Energy transformation projects that use wood feedstock, except for noncommercial
applications, that are eligible at the time of project commissioning to meet the renewability
standards adopted by the Commissioner of Forests, Parks and Recreation do not lose
eligibility due to a subsequent change in the renewability standards after the project
commissioning date.
(3) No new wood biomass electricity generation facility or wood biomass combined heat
and power facility coming into service after January 1, 2023 shall be eligible to
satisfy any requirements of this section and section 8004 of this title unless that facility achieves 60 percent overall efficiency and at least a 50 percent
net lifecycle greenhouse gas emissions reduction relative to the lifecycle emissions
from the combined operation of a new combined-cycle natural gas plant using the most
efficient commercially available technology. Any energy generation using wood feedstock
from an existing wood biomass electric generation facility placed in service prior
to January 1, 2023 remains eligible to satisfy any requirements of this section and
section 8004 of this title. Changes to wood biomass electric facilities that were placed in service prior to
January 1, 2023, including converting to a combined heat and power facility, adding
or modifying a district energy system, replacing electric generation equipment, or
repowering the facility with updated or different electric generation technologies,
do not change the in service date for the facility, or affect its eligibility to satisfy
the requirements of this section and section 8004 of this title, or qualify it as new renewable energy.
(d) Hydropower. A hydroelectric renewable energy plant, that is not owned by a retail electricity
provider, shall be eligible to satisfy the distributed renewable generation or energy
transformation requirement only if, in addition to meeting the definition of distributed
renewable generation, the plant:
(1) is and continues to be certified by the Low-impact Hydropower Institute; or
(2) after January 1, 1987, received a water quality certification pursuant to 33 U.S.C. § 1341 from the Agency of Natural Resources.
(e) Intent. Nothing in this section and section 8004 of this title is intended to relieve, modify, or in any manner affect a renewable energy plant’s
on-going obligation to not have an undue adverse effect on air and water purity, the
natural environment and the use of natural resources, and to comply with required
environmental laws and rules. (Added 2005, No. 61, § 4; amended 2005, No. 208 (Adj. Sess.), § 15; 2007, No. 92 (Adj. Sess.), § 22; 2009, No. 45, § 4, eff. May 27, 2009; 2009, No. 159 (Adj. Sess.), §§ 3, 4, 5, 8, eff. June 4, 2010; 2011, No. 47, § 8 (eff. May 25, 2011) and § 18; 2011, No. 170 (Adj. Sess.), § 3, eff. May 18, 2012; 2013, No. 34, § 19; 2015, No. 56, § 3; 2015, No. 174 (Adj. Sess.), § 14; 2023, No. 179 (Adj. Sess.), § 4, eff. July 1, 2024.)
§ 8005a. Standard Offer Program
(a) Establishment. A Standard Offer Program is established. To achieve the goals of section 8001 of this title, the Commission shall issue standard offers for renewable energy plants that meet
the eligibility requirements of this section. The Commission shall implement these
standard offers by rule, order, or contract and shall appoint a Standard Offer Facilitator
to assist in this implementation. For the purpose of this section, the Commission
and the Standard Offer Facilitator constitute instrumentalities of the State.
(b) Eligibility. To be eligible for a standard offer under this section, a plant must constitute a
qualifying small power production facility under 16 U.S.C. § 796(17)(C) and 18 C.F.R. part 292, must not be a net metering system under section 219a of this title, and must be a new standard offer plant. In this section, “new standard offer plant”
means a renewable energy plant that is located in Vermont, that has a plant capacity
of 2.2 MW or less, and that is commissioned on or after September 30, 2009.
(c) Cumulative capacity. In accordance with this subsection, the Commission shall issue standard offers to
new standard offer plants until a cumulative plant capacity amount of 127.5 MW is
reached.
(1) Pace. Annually commencing April 1, 2013, the Commission shall increase the cumulative plant
capacity of the Standard Offer Program (the annual increase) until the 127.5-MW cumulative
plant capacity of this subsection is reached.
(A) Annual amounts. The amount of the annual increase shall be five MW for the three years commencing
April 1, 2013, 7.5 MW for the three years commencing April 1, 2016, and 10 MW commencing
April 1, 2019.
(B) Blocks. Each year, a portion of the annual increase shall be reserved for new standard offer
plants proposed by Vermont retail electricity providers (the provider block), and
the remainder shall be reserved for new standard offer plants proposed by persons
who are not providers (the independent developer block).
(i) The portion of the annual increase reserved for the provider block shall be 10 percent
for the three years commencing April 1, 2013, 15 percent for the three years commencing
April 1, 2016, and 20 percent commencing April 1, 2019.
(ii) If the provider block for a given year is not fully subscribed, any unsubscribed capacity
within that block shall be added to the annual increase for each following year until
that capacity is subscribed and shall be made available to new standard offer plants
proposed by persons who are not providers.
(iii) If the independent developer block for a given year is not fully subscribed, any unsubscribed
capacity within that block shall be added to the annual increase for each following
year until that capacity is subscribed and:
(I) shall be made available to new standard offer plants proposed by persons who are not
providers; and
(II) may be made available to a provider following a written request and specific proposal
submitted to and approved by the Commission.
(C) Adjustment; greenhouse gas reduction credits. The Commission shall adjust the annual increase to account for greenhouse gas reduction
credits by multiplying the annual increase by one minus the ratio of the prior year’s
greenhouse gas reduction credits to that year’s statewide retail electric sales.
(i) The amount of the prior year’s greenhouse gas reduction credits shall be determined
in accordance with subdivision 8006a(a) of this title.
(ii) The adjustment in the annual increase shall be applied proportionally to the independent
developer block and the provider block.
(iii) Greenhouse gas reduction credits used to diminish a provider’s obligation under section 8004 of this title may be used to adjust the annual increase under this subsection (c).
(D) Pilot project; preferred locations. For one year commencing on January 1, 2017, the Commission shall allocate one-sixth
of the annual increase to new standard offer plants that will be wholly located in
one or more preferred locations other than parking lots or parking lot canopies and,
separately, one-sixth of the annual increase to new standard offer plants that will
be wholly located over parking lots or on parking lot canopies.
(i) To qualify for these allocations, the plant shall not require the construction of
a new substation by the interconnecting retail electricity provider or by increasing
the capacity of one or more of the provider’s existing facilities. To qualify for
the allocation to plants wholly located over parking lots or on parking lot canopies,
the location shall remain in use as a parking lot.
(ii) These allocations shall apply proportionally to the independent developer block and
provider block.
(iii) If an allocation under this pilot project is not fully subscribed, the Commission
in 2017 shall allocate the unsubscribed capacity to new standard offer plants outside
the pilot project.
(iv) As used in this subdivision (D), “preferred location” means a site within the State
on which a renewable energy plant will be located that is one of the following:
(I) A new or existing structure whose primary use is not the generation of electricity
or providing support for the placement of equipment that generates electricity.
(II) A parking lot canopy over a paved parking lot, provided that the location remains
in use as a parking lot.
(III) A tract previously developed for a use other than siting a plant on which a structure
or impervious surface was lawfully in existence and use prior to July 1 of the year
preceding the year in which an application for a certificate of public good under
section 248 of this title for the plant is filed or in which the plant seeks an award of a contract under the
Standard Offer Program under this section, whichever is earlier. To qualify under
this subdivision (III), the limits of disturbance of a proposed renewable energy plant
must include either the existing structure or impervious surface and shall not include
any headwaters, streams, shorelines, floodways, rare and irreplaceable natural areas,
necessary wildlife habitat, wetlands, endangered species, productive forestlands,
and primary agricultural soils, all of which are as defined in 10 V.S.A. chapter 151.
(IV) Land certified by the Secretary of Natural Resources to be a brownfield site as defined
under 10 V.S.A. § 6642.
(V) A sanitary landfill as defined in 10 V.S.A. § 6602, provided that the Secretary of Natural Resources certifies that the land constitutes
such a landfill and is suitable for the development of the plant.
(VI) The disturbed portion of a gravel pit, quarry, or similar site for the extraction
of a mineral resource, provided that all activities pertaining to site reclamation
required by applicable law or permit condition are satisfied prior to the installation
of the plant.
(VII) A specific location designated in a duly adopted municipal plan under 24 V.S.A. chapter 117 for the siting of a renewable energy plant or specific type or size of renewable
energy plant, provided that the plant meets any siting criteria recommended in the
plan for the location.
(VIII) A site listed on the National Priorities List (NPL) established under the Comprehensive
Environmental Response, Compensation, and Liability Act, 42 U.S.C. chapter 103, if
the U.S. Environmental Protection Agency or the Agency of Natural Resources confirms
each of the following:
(aa) The site is listed on the NPL.
(bb) Development of the plant on the site will not compromise or interfere with remedial
action on the site.
(cc) The site is suitable for development of the plant.
(IX) A new hydroelectric generation facility at a dam in existence as of January 1, 2016
or a hydroelectric generation facility that was in existence but not in service for
a period of at least 10 years prior to January 1, 2016 and that will be redeveloped
for electric generation, if the facility has received approval or a grant of exemption
from the U.S. Federal Energy Regulatory Commission.
(2) Technology allocations. The Commission shall allocate the 127.5-MW cumulative plant capacity of this subsection
among different categories of renewable energy technologies. These categories shall
include at least each of the following: methane derived from a landfill; solar power;
wind power with a plant capacity of 100 kW or less; wind power with a plant capacity
greater than 100 kW; hydroelectric power; and biomass power using a fuel other than
methane derived from an agricultural operation or landfill.
(d) Plants outside cumulative capacity. The following categories of plants shall not count toward the cumulative capacity
amount of subsection (c) of this section, and the Commission shall make standard offers
available to them provided that they are otherwise eligible for such offers under
this section:
(1) Plants using methane derived from an agricultural operation.
(2) New standard offer plants that the Commission determines will have sufficient benefits
to the operation and management of the electric grid or a provider’s portion thereof
because of their design, characteristics, location, or any other discernible benefit.
To enhance the ability of new standard offer plants to mitigate transmission and distribution
constraints, the Commission shall require Vermont retail electricity providers and
companies that own or operate electric transmission facilities within the State to
make sufficient information concerning these constraints available to developers who
propose new standard offer plants.
(A) By March 1, 2013, the Commission shall develop a screening framework or guidelines
that will provide developers with adequate information regarding constrained areas
in which generation having particular characteristics is reasonably likely to provide
sufficient benefit to allow the generation to qualify for eligibility under this subdivision
(2).
(B) Once the Commission develops the screening framework or guidelines under subdivision
(2)(A) of this subsection (d), the Commission shall require Vermont transmission and
retail electricity providers to make the necessary information publicly available
in a timely manner, with updates at least annually.
(C) Nothing in this subdivision shall require the disclosure of information in contravention
of federal law.
(e) Term. The term of a standard offer required by this section shall be 10 to 20 years, except
that the term of a standard offer for a plant using solar power shall be 10 to 25
years.
(f) Price. The categories of renewable energy for which the Commission shall set standard offer
prices shall include at least each of the categories established pursuant to subdivision
(c)(2) of this section. The Commission by order shall determine and set the price
paid to a plant owner for each kWh generated under a standard offer required by this
section, with a goal of ensuring timely development at the lowest feasible cost. The
Commission shall not be required to make this determination as a contested case under
3 V.S.A. chapter 25.
(1) Market-based mechanisms. For new standard offer projects, the Commission shall use a market-based mechanism,
such as a reverse auction or other procurement tool, to obtain up to the authorized
amount of a category of renewable energy, if it first finds that use of the mechanism
is consistent with:
(A) applicable federal law; and
(B) the goal of timely development at the lowest feasible cost.
(2) Avoided cost.
(A) The price paid for each category of renewable energy shall be the avoided cost of
the Vermont composite electric utility system if the Commission finds either of the
following:
(i) Use of the pricing mechanism described in subdivision (1) (market-based mechanisms)
of this subsection (f) is inconsistent with applicable federal law.
(ii) Use of the pricing mechanism described in subdivision (1) (market-based mechanisms)
of this subsection (f) is reasonably likely to result in prices higher than the prices
that would apply under this subdivision (2).
(B) For the purpose of this subsection (f), the term “avoided cost” means the incremental
cost to retail electricity providers of electric energy or capacity, or both, that,
but for the purchase through the standard offer, such providers would obtain from
distributed renewable generation that uses the same generation technology as the category
of renewable energy for which the Commission is setting the price. For the purpose
of this subsection (f), the term “avoided cost” also includes the Commission’s consideration
of each of the following:
(i) The relevant cost data of the Vermont composite electric utility system.
(ii) The terms of the contract, including the duration of the obligation.
(iii) The availability, during the system’s daily and seasonal peak periods, of capacity
or energy purchased through the standard offer, and the estimated savings from mitigating
peak load.
(iv) The relationship of the availability of energy or capacity purchased through the standard
offer to the ability of the Vermont composite electric utility system or a portion
thereof to avoid costs.
(v) The costs or savings resulting from variations in line losses and other impacts to
the transmission or distribution system from those that would have existed in the
absence of purchases through the standard offer.
(vi) The supply and cost characteristics of plants eligible to receive the standard offer.
(3) Price determinations. The Commission shall take all actions necessary to determine the pricing mechanism
and implement the pricing requirements of this subsection (f) no later than March
1, 2013 for effect on April 1, 2013. Annually thereafter, the Commission shall review
the determinations previously made under this subsection to decide whether they should
be modified in any respect in order to achieve the goal and requirements of this subsection.
Any such modification shall be effective on a prospective basis commencing one month
after it has been made. Once a pricing determination made or modified under this subsection
goes into effect, subsequently executed standard offer contracts shall comply with
the most recently effective determination.
(4) Price stability. Once a plant owner has executed a contract for a standard offer under this section,
the plant owner shall continue to receive the price agreed on in that contract regardless
of whether the Commission subsequently changes the price applicable to the plant’s
category of renewable energy.
(5) Price; preferred location pilots. For the period during which the Commission allocates capacity to new standard offer
plants that will be wholly located in one or more preferred locations as set forth
in subdivision (c)(1)(D) of this section, the following shall apply to the price paid
to such a plant:
(A) If the Commission uses a market-based mechanism under subdivision (1) of this subsection
(f) to determine this price for one or both of the two allocations of capacity, the
Commission shall compare only the proposals of plants that qualify for the allocation.
(B) If the Commission uses avoided costs under subdivision (2) of this subsection (f)
to determine this price for one or both of the two allocations of capacity, the Commission
shall apply the definition of “avoided costs” as set forth in subdivision (2)(B) of
this subsection with the modification that the avoided energy or capacity shall be
from distributed renewable generation that is sited on a location that qualifies for
the allocation.
(C) With respect to the allocation to the new standard offer plants that will be wholly
located over parking lots or on parking lot canopies, if the Commission receives only
one application or multiple applications for plants owned or controlled by the same
person as defined in 10 V.S.A. § 6001, the Commission shall investigate each application and shall have discretion to reduce
the price to be consistent with the standard offer price for plants outside the pilot
project using the same generation technology.
(g) Qualifying existing agricultural plants. Notwithstanding any other provision of this section, on and after June 8, 2010, a
standard offer shall be available for a qualifying existing plant as defined in Sec.
3 of No. 159 of the Acts of the 2009 Adj. Sess. (2010) (Act 159). The provisions of
subdivision 8005(b)(2) of this title, as they existed on June 4, 2010, the effective date of Act 159, shall govern a standard
offer under this subsection. Standard offers for these plants shall not be subject
to subsection (c) of this section (cumulative capacity; new standard offer plants).
(h) Application process. The Commission shall administer the process of applying for and obtaining a standard
offer contract in a manner that ensures that the resources and capacity of the Standard
Offer Program are used for plants that are reasonably likely to achieve commissioning.
(i) Interconnection application. No contract under this section for a new standard offer plant shall be executed unless
and until the plant owner submits a complete application to interconnect the plant
to the subtransmission or distribution system of the applicable retail electricity
provider.
(j) Termination; reallocation. In the event a proposed plant accepting a standard offer fails to meet the requirements
of the Program in a timely manner, the plant’s standard offer contract shall terminate,
and any capacity reserved for the plant within the Program shall be reallocated to
one or more eligible plants.
(1) For the purpose of this subsection, the requirements of the Program shall include
commissioning of all new standard offer plants, except plants using methane derived
from an agricultural operation, within the following periods after execution of the
plant’s standard offer contract:
(A) 24 months if the plant is solar power or is wind power with a plant capacity of 100
kW or less; and
(B) 36 months if the plant uses a fuel source not described in subdivision 1(A) of this
subsection (j) or is wind power of greater than 100 kW capacity.
(2) At the request of a plant owner or for other good cause, the Commission may extend
a period described in subdivision (1) of this subsection (j) if it finds that the
plant owner has proceeded diligently and in good faith and that commissioning of the
plant has been delayed because of litigation or appeal or because of the need to obtain
an approval the timing of which is outside the Commission’s control, or for other
good cause as determined by the Commission.
(k) Executed standard offer contracts; transferability; allocation of benefits and costs. With respect to executed contracts for standard offers under this section:
(1) A contract shall be transferable. The contract transferee shall notify the Standard
Offer Facilitator of the contract transfer within 30 days following transfer.
(2) The Standard Offer Facilitator shall distribute the electricity purchased to the Vermont
retail electricity providers at the price paid to the plant owners, allocated to the
providers based on their pro rata share of total Vermont retail kWh sales for the
previous calendar year, and the Vermont retail electricity providers shall accept
and pay the Standard Offer Facilitator for the electricity. However, during any given
calendar year:
(A) Calculation of pro rata shares under this subdivision (2) shall include an adjustment
in the allocation to a provider if one or more of the provider’s customers created
greenhouse gas reduction credits under section 8006a of this title that are used to reduce the size of the annual increase under subdivision (c)(1)(C)(adjustment;
greenhouse gas reduction credits) of this section. The adjustment shall ensure that
any and all benefits or costs from the use of such credits flow to the provider whose
customers created the credits. The savings that a provider realizes as a result of
this application of greenhouse gas reduction credits shall be passed on proportionally
to the customers that created the credits.
(B) A retail electricity provider that was relieved from the requirements of this subdivision
by the Commission on or before January 25, 2018, shall be exempt from the requirements
of this subdivision in any year that the Standard Offer Facilitator allocates electricity
pursuant to this subdivision if the retail electricity provider meets the following
criteria:
(i) during the immediately preceding 12-month period ending October 31, the amount of
renewable energy supplied to the provider by generation owned by or under contract
to the provider, regardless of whether the provider owned the energy’s environmental
attributes, was not less than the amount of energy sold by the provider to its retail
customers; and
(ii) the retail electricity provider owns and retires an amount of 30 V.S.A. § 8005(a)(1) qualified energy environmental attributes that is not less than the provider’s retail
sales.
(3) The Standard Offer Facilitator shall transfer the environmental attributes, including
any tradeable renewable energy credits, of electricity purchased under standard offer
contracts to the Vermont retail electricity providers in accordance with their pro
rata share of the costs for such electricity as determined under subdivision (2) of
this subsection (k), except that in the case of a plant using methane from agricultural
operations, the plant owner shall retain such attributes and credits to be sold separately
at the owner’s discretion. It shall be a condition of a standard offer issued under
this section that tradeable renewable energy credits associated with a plant that
accepts the standard offer are owned by the retail electricity providers purchasing
power generated by the plant, except in the case of a plant using methane from agricultural
operations.
(4) The Standard Offer Facilitator shall transfer all capacity rights attributable to
the plant capacity associated with the electricity purchased under standard offer
contracts to the Vermont retail electricity providers in accordance with their pro
rata share of the costs for such electricity as determined under subdivision (2) of
this subsection (k).
(5) All reasonable costs of a Vermont retail electricity provider incurred under this
subsection shall be included in the provider’s revenue requirement for purposes of
ratemaking under sections 218, 218d, 225, and 227 of this title. In including such costs, the Commission shall appropriately account for any credits
received under subdivisions (3) and (4) of this subsection (k). Costs included in
a retail electricity provider’s revenue requirement under this subdivision (5) shall
be allocated to the provider’s ratepayers as directed by the Commission.
(l) Standard Offer Facilitator; expenses; payment. With respect to standard offers under this section, the Commission shall:
(1) determine a Standard Offer Facilitator’s reasonable expenses arising from its role
and the allocation of the expenses among plant owners and Vermont retail electricity
providers;
(2) determine the manner and timing of payments by a Standard Offer Facilitator to plant
owners for energy purchased under an executed contract for a standard offer;
(3) determine the manner and timing of payments to the Standard Offer Facilitator by the
Vermont retail electricity providers for energy distributed to them under executed
contracts for standard offers;
(4) establish reporting requirements of a Standard Offer Facilitator, a plant owner, and
a Vermont retail electricity provider.
(m) Metering. With respect to standard offers under this section, the Commission shall make rule
revisions concerning metering and the allocation of metering costs as needed to implement
the standard offer requirements of this section.
(n) Wood biomass. In addition to the other requirements of this section, wood biomass resources may
receive a standard offer under this section only if they have a design system efficiency
(the sum of full load design thermal output and electric output divided by the heat
input) of at least 50 percent.
(o) Voluntary contracts. The existence of a standard offer under this section shall not preclude a voluntary
contract between a plant owner and a Vermont retail electricity provider on terms
that may be different from those under the standard offer. A plant owner who declines
a voluntary contract may still accept a standard offer under this section.
(p) Existing hydroelectric plants. Notwithstanding any contrary requirement of this section, no later than January 15,
2013, the Commission shall make a standard offer contract available to existing hydroelectric
plants in accordance with this subsection.
(1) In this subsection:
(A) “Existing hydroelectric plant” means a hydroelectric plant of five MW plant capacity
or less that is located in the State, that was in service as of January 1, 2009, that
is a qualifying small power production facility under 16 U.S.C. § 796(17)(C) and 18 C.F.R. part 292, and that does not have an agreement with the Commission’s purchasing agent for the
purchase of its power pursuant to subdivision 209(a)(8) of this title and Commission rules adopted under subdivision (8). The term includes hydroelectric
plants that have never had such an agreement and hydroelectric plants for which such
an agreement has expired.
(B) “LIHI” means the Low-Impact Hydropower Institute.
(2) The term of a standard offer contract under this subsection shall be 10 or 20 years,
at the election of the plant owner.
(3) Unless inconsistent with applicable federal law, the price of a standard offer contract
shall be the sum of the following elements:
(A) a two-year rolling average of the ISO New England Inc. (ISO-NE) Vermont zone hourly
locational marginal price for energy;
(B) a two-year rolling average of the value of the plant’s capacity in the ISO-NE forward
capacity market;
(C) the value of avoided line losses due to the plant as a fixed increment of the energy
and capacity values;
(D) a two-year rolling average of the market value of environmental attributes, including
renewable energy credits; and
(E) the value of a 10- or 20-year contract.
(4) The Commission shall determine the price to be paid under this subsection (p) not
later than January 15, 2013.
(A)(i) Annually by January 15 commencing in 2014, the Commission shall recalculate and adjust
the energy, capacity, and environmental attribute elements of the price under subdivision
(3) of this subsection (p). The recalculated and adjusted energy, capacity, and environmental
attribute elements shall apply to all contracts executed under this subdivision, whether
or not the contracts were executed prior to the adjustments.
(ii) the Commission may periodically adjust the value of environmental attributes that
are applicable to an executed contract based upon whether the plant becomes certified
by LIHI or loses such certification.
(B) With respect to the price elements specified in subdivisions(3)(C)(avoided line losses)
and (E)(value of long-term contract) of this subsection (p):
(i) These elements shall remain fixed at their values at the time a contract is signed
for the duration of the contract.
(ii) The Commission annually may adjust these elements for inclusion in contracts that
are executed after the date any such adjustments are made.
(5) Once a plant owner has executed a contract for a standard offer under this subsection
(p), the plant owner shall continue to receive the pricing terms agreed on in that
contract regardless of whether the Commission subsequently changes any pricing terms
under this subsection.
(6) Capacity of existing hydroelectric plants executing a standard offer contract under
this subsection shall not count toward the cumulative capacity amount of subsection
(c) of this section.
(q) Allocation of regulatory costs. The Commission and Department may authorize or retain legal counsel, official stenographers,
expert witnesses, advisors, temporary employees, and research services in conjunction
with implementing their responsibilities under this section. In lieu of allocating
such costs pursuant to subsection 21(a) of this title, the Commission or Department may allocate the expense in the same manner as the
Standard Offer Facilitator’s costs under subdivision (l)(1) of this section.
(r) State; nonliability. The State and its instrumentalities shall not be liable to a plant owner or retail
electricity provider with respect to any matter related to the Standard Offer Program,
including costs associated with a standard offer contract or any damages arising from
the breach of such a contract, the flow of power between a plant and the electric
grid, or the interconnection of a plant to that grid. (Added 2011, No. 170 (Adj. Sess.), § 4, eff. May 18, 2012; amended 2013, No. 34, § 20; 2015, No. 56, § 4; 2015, No. 97 (Adj. Sess.), § 62; 2015, No. 174 (Adj. Sess.), § 12a; 2019, No. 31, §§ 15, 27; 2021, No. 42, § 8; 2023, No. 85 (Adj. Sess.), § 455, eff. July 1, 2024.)
§ 8006. Tradeable credits; environmental attributes; recognition, monitoring, and disclosure
(a) The Commission shall establish or adopt a system of tradeable renewable energy credits
for renewable resources that may be earned by electric generation qualifying for the
RES. The system shall recognize tradeable renewable energy credits monitored and traded
on the New England Generation Information System (GIS); shall provide a process for
the recognition, approval, and monitoring of environmental attributes attached to
renewable energy that are eligible to satisfy the requirements of sections 8004 and 8005 of this title but are not monitored and traded on the GIS; and shall otherwise be consistent with
regional practices.
(b) The Commission shall ensure that all electricity provider and provider-affiliate disclosures
and representations made with regard to a provider’s portfolio are accurate and reasonably
supported by objective data. Further, the Commission shall ensure that providers disclose
the types of generation used and shall clearly distinguish between energy or tradeable
energy credits provided from renewable and nonrenewable energy sources and existing
and new renewable energy. (Added 2005, No. 61, § 4; amended 2011, No. 47, § 18; 2015, No. 56, § 7.)
§ 8006a. Greenhouse gas reduction credits
(a) Standard offer adjustment. In accordance with this section, greenhouse gas reduction credits generated by an
eligible ratepayer shall result in an adjustment of the standard offer under subdivision 8005a(c)(1) of this title (cumulative capacity; pace) or may be utilized by a retail electricity provider that
serves a single customer that takes service at 115 kilovolts to meet the energy transformation
requirements under subdivision 8005(a)(3)(D) of this title. For the purpose of adjusting the standard offer under subdivision 8005a(c)(1) of this title or energy transformation requirements under subdivision 8005(a)(3)(D) of this title, the amount of a year’s greenhouse gas reduction credits shall be the lesser of the
following:
(1) The amount of greenhouse gas reduction credits created by an eligible ratepayer served
by an eligible provider.
(2) The eligible provider’s annual load during that year to those eligible ratepayers
creating greenhouse gas reduction credits.
(b) Definitions. As used in this section:
(1) “Eligible ratepayer” means a customer of a Vermont retail electricity provider who
takes service at 115 kilovolts and has demonstrated to the Commission that it has
a comprehensive energy and environmental management program. Provision of the customer’s
certification issued under standard 14001 (environmental management systems) of the
International Organization for Standardization (ISO) shall constitute such a demonstration.
(2) “Eligible provider” means a Vermont retail electricity provider who serves a single
customer that takes service at 115 kilovolts.
(3) “Eligible reduction” means a reduction in non-energy-related greenhouse gas emissions
from manufacturing processes at an in-state facility of an eligible ratepayer, provided
that each of the following applies:
(A) The reduction results from a specific project undertaken by the eligible ratepayer
at the in-state facility after January 1, 2023.
(B) The specific project reduces or avoids greenhouse gas emissions above and beyond any
reductions of such emissions required by federal and State statutes and rules.
(C) The reductions are quantifiable and verified by an independent third party as approved
by the Agency of Natural Resources and the Commission. Such independent third parties
shall be certified by a body accredited by the American National Standards Institute
(ANSI) as having a certification program that meets the ISO standards applicable to
verification and validation of greenhouse gas assertions. The independent third party
shall use methodologies specified under 40 C.F.R. part 98 and U.S. Environmental Protection Agency greenhouse gas emissions factors and global
warming potential figures to quantify and verify reductions in all cases where those
factors and figures are available.
(4) “Greenhouse gas” has the same meaning as in 10 V.S.A. § 552.
(5) “Greenhouse gas reduction credit” means a credit for eligible reductions, calculated
in accordance with subsection (c) of this section and expressed as a kWh credit eligible
under subdivision 8005a(c)(1) of this title, or as a credit eligible under subdivision 8005(a)(3)(D) of this title.
(c) Calculation. Greenhouse gas reduction credits shall be calculated as follows:
(1) Eligible reductions shall be quantified in metric tons of CO2 equivalent, in accordance
with the methodologies specified under 40 C.F.R. part 98, and using U.S. Environmental Protection Agency greenhouse gas emissions factors
and global warming potential figures, and shall be counted annually for the life of
the specific project that resulted in the reduction. A project that converts a gas
with a high global warming potential into a gas with relatively lower global warming
potential shall be eligible if the conversion produces a CO2 equivalent reduction
on an annual basis.
(2) Metric tons of CO2 equivalent quantified under subdivision (1) of this subsection
shall be converted into units of energy through calculation of the equivalent number
of kWh of generation by renewable energy plants, other than biomass, that would be
required to achieve the same level of greenhouse gas emission reduction through the
displacement of market power purchases. For the purpose of this subdivision, the value
of the avoided greenhouse gas emissions shall be based on the aggregate greenhouse
gas emission characteristics of system power in the regional transmission area overseen
by the Independent System Operator of New England (ISO-NE).
(d) Reporting. An eligible provider shall report to the Commission annually on each specific project
undertaken by an eligible ratepayer to create eligible reductions. The Commission
shall specify the required contents of such reports, which shall be publicly available. (Added 2011, No. 170 (Adj. Sess.), § 8, eff. May 18, 2012; amended 2023, No. 179 (Adj. Sess.), § 5, eff. July 1, 2024.)
§ 8007. Small renewable energy plants; simplified procedures
(a) The same application form, rules, and procedures that the Commission applies to net
metering systems of 150 kilowatts (kW) or less under sections 248 and 8010 of this title shall apply to the review under section 248 of this title of any renewable energy plant with a plant capacity of 150 kW or less and to the
interconnection of such a plant with the system of a Vermont retail electricity provider.
This requirement includes any waivers of criteria under section 248 of this title made pursuant to section 8010 of this title.
(b) With respect to renewable energy plants that have a plant capacity that is greater
than 150 kW and is 2.2 MW or less, the Commission shall establish by rule or order
standards and procedures governing application for, and issuance or revocation of,
a certificate of public good for such a plant under the provisions of section 248 of this title, and the interconnection of such a plant with the system of a Vermont retail electricity
provider.
(1) In developing such rules or orders, the Commission:
(A) Shall waive the requirements of section 248 of this title that are not applicable to such a plant, including, for a plant that is not owned
by a Vermont retail electricity provider, criteria that are generally applicable to
such a provider.
(B) May modify notice and hearing requirements of this title as it deems appropriate.
(C) Shall simplify the petition and review process as appropriate.
(2) Notwithstanding 1 V.S.A. §§ 213 and 214, a petitioner whose petition under section 248 of this title is pending as of the effective date of a Commission rule or order under this subsection
(b) may elect to apply the standards and procedures of such a rule or order to the
pending petition if the petition pertains to a renewable energy plant with a plant
capacity that is greater than 150 kW and is 2.2 MW or less. (Added 2009, No. 159 (Adj. Sess.), § 6, eff. June 4, 2010; 2013, No. 99 (Adj. Sess.), § 6, eff. Jan. 1, 2017.)
§ 8008. Agreements; attribute revenues; disposition by Commission
(a) As used in this section, “the revenues” means revenues that are from the sale, through
tradeable renewable energy certificates or other means, of environmental attributes
associated with the generation of renewable energy from a system of generation resources
with a total plant capacity greater than 200 MW and that are received by a Vermont
retail electricity provider on or after May 1, 2012, pursuant to an agreement, contract,
memorandum of understanding, or other transaction in which a person or entity agrees
to transfer such revenues or rights associated with such attributes to the provider.
(b) After notice and opportunity for hearing, the Commission shall determine the disposition,
allocation, and use of the revenues in a manner that promotes State energy policy
as stated in section 202a of this title and the goals of this chapter and supports achievement of the greenhouse gas reduction
and building efficiency goals contained in 10 V.S.A. §§ 578(a) and 581.
(1) The Commission shall provide notice of the proceeding to each Vermont retail electricity
provider, the Department, the Clean Energy Development Board under 10 V.S.A. § 6523, each fuel efficiency service provider appointed under subsection 203a(b) of this title, each energy efficiency entity appointed under subdivision 209(d)(2) of this title, the Institute for Energy and the Environment at the Vermont Law School, the Transportation
Research Center at the University of Vermont, and any other persons or entities that
have requested notice. The Commission may provide notice to additional persons or
entities.
(2) In determining the disposition, allocation, and use of the revenues, the Commission
shall consider each of the following potential uses of the revenues:
(A) Development of in-state renewable energy resources.
(B) Deposit into the Clean Energy Development Fund for use pursuant to section 8015 of this title.
(C) Deposit into the Fuel Efficiency Fund for use pursuant to section 203a of this title.
(D) Deposit into the Electric Efficiency Fund for use pursuant to section 209(d) of this title.
(E) Application, for the benefit of ratepayers, to the revenue requirement of one or more
Vermont retail electricity providers.
(F) Development of transportation alternatives to vehicles that use gasoline such as electric
or natural gas vehicles and supporting infrastructure and the coordination of such
development with so-called “smart grid” electric transmission and distribution networks.
(G) Any other uses that support the statutory policy and goals referenced in this subsection
(b).
(c) A Vermont retail electricity provider shall notify the Commission within 30 days of
the first receipt of the revenues pursuant to an agreement, contract, memorandum of
understanding, or other transaction under which it will receive the revenues. The
Commission shall open a proceeding under this section promptly on receipt of such
notice and shall issue a final order in the proceeding within 12 months following
such receipt.
(d) Any of the revenues that are received prior to completion of the 12-month period described
in subsection (c) of this section shall be credited, for the benefit of ratepayers,
against the revenue requirement of the Vermont retail electricity provider that receives
the revenues. (Added 2009, No. 159 (Adj. Sess.), § 13b, eff. June 4, 2010; amended 2011, No. 47, §§ 18, 20m(a); 2017, No. 74, § 127; 2023, No. 85 (Adj. Sess.), § 456, eff. July 1, 2024.)
§ 8009. Baseload renewable power portfolio requirement
(a) As used in this section:
(1) “Baseload renewable power” means a plant that generates electricity from renewable
energy; that, during normal operation, is capable of taking all or part of the minimum
load on an electric transmission or distribution system; and that produces electricity
essentially continuously at a constant rate.
(2) “Baseload renewable power portfolio requirement” means the actual output of baseload
renewable power from an in-state woody biomass plant that was commissioned prior to
September 30, 2009, has a nominal capacity of 20.5 MW, and was in service as of January
1, 2011.
(3) “Biomass” means organic nonfossil material of biological origin constituting a source
of renewable energy within the meaning of subdivision 8002(21) of this title.
(4) [Repealed.]
(b) Notwithstanding subsection 8004(a) and subdivision 8005(c)(1) of this title, commencing November 1, 2012, each Vermont retail electricity provider shall purchase
the provider’s pro rata share of the baseload renewable power portfolio requirement,
which shall be based on the total Vermont retail kWh sales of all such providers for
the previous calendar year. The obligation created by this subsection shall cease
on November 1, 2032 unless terminated earlier pursuant to subsection (k) of this section.
(c) A plant used to satisfy the baseload renewable power portfolio requirement shall be
a qualifying small power production facility under 16 U.S.C. § 796(17)(C) and 18 C.F.R. part 292.
(d) On or before November 1, 2028, the Commission shall determine, for the period beginning
on November 1, 2028 and ending on November 1, 2032, the price to be paid to a plant
used to satisfy the baseload renewable power portfolio requirement. The Commission
shall not be required to make this determination as a contested case under 3 V.S.A. chapter 25. The price shall be the avoided cost of the Vermont composite electric utility system.
As used in this subsection, the term “avoided cost” means the incremental cost to
retail electricity providers of electric energy or capacity, or both, that, but for
the purchase from the plant proposed to satisfy the baseload renewable power portfolio
requirement, such providers would obtain from a source using the same generation technology
as the proposed plant. For the purposes of this subsection, the term “avoided cost”
also includes the Commission’s consideration of each of the following:
(1) The relevant cost data of the Vermont composite electric utility system.
(2) The terms of the potential contract, including the duration of the obligation.
(3) The availability, during the system’s daily and seasonal peak periods, of capacity
or energy from a proposed plant.
(4) The relationship of the availability of energy, capacity, renewable energy credits
and attributes, and other ISO New England revenue streams from the proposed plant
to the ability of the Vermont composite electric utility system or a portion thereof
to avoid costs. Vermont retail electricity providers shall receive all output of the
baseload renewable plant unless the contract price is reduced to reflect the value
of all products, attributes, and services that are retained by the seller.
(5) The costs or savings resulting from variations in line losses from those that would
have existed in the absence of purchases from the proposed plant.
(6) The supply and cost characteristics of the proposed plant, including the costs of
operation and maintenance of an existing plant during the term of a proposed contract.
(7) Mechanisms for encouraging dispatch of the plant relative to the ISO New England wholesale
energy price and value of regional renewable energy credits while also respecting
the physical operating parameters, the fixed costs of the proposed plant, and the
impact on the forest economy.
(8) The appropriate assignment of risks associated with the ISO New England Forward Capacity
Market Pay for Performance program.
(e) In determining the price under subsection (d) of this section, the Commission:
(1) may require a plant proposed to be used to satisfy the baseload renewable power portfolio
requirement to produce such information as the Commission reasonably deems necessary;
(2) shall not consider the following in the determination of avoided cost:
(A) capital investments made to meet the efficiency goal established in subsection (k)
of this section;
(B) revenue generated by the capital investment made to meet the efficiency goal established
in subsection (k) of this section; and
(C) operational costs and operational impacts associated with the project or projects
implemented to meet the efficiency goals established in subsection (k) of this section;
and
(3) notwithstanding subdivision (2)(C) of this subsection, shall consider sharing with
Vermont retail electricity providers the benefits associated with waste heat that
may be used to benefit a facility that does not provide baseload renewable energy.
(f) With respect to a plant used to satisfy the baseload renewable power portfolio requirement:
(1) The Standard Offer Facilitator shall purchase the baseload renewable power and shall
allocate the electricity purchased and any associated costs to the Vermont retail
electricity providers based on their pro rata share of total Vermont retail kWh sales
for the previous calendar year, and the Vermont retail electricity providers shall
accept and pay those costs.
(2) Any tradeable renewable energy credits and attributes that are attributable to the
electricity purchased shall be transferred to the Vermont retail electricity providers
in accordance with their pro rata share of the costs for such electricity as determined
under subdivision (1) of this subsection unless the Commission approves the plant
owner retaining renewable energy credits and attributes or other ISO New England revenue
streams. If the Commission approves the plant owner retaining renewable energy credits
and attributes, or other ISO New England revenue streams, the price paid by the Vermont
retail electricity providers pursuant to this section may be reduced by the Commission
to reflect the value of those credits, attributes, products, or services.
(3) All capacity rights attributable to the plant capacity associated with the electricity
purchased shall be transferred to the Vermont retail electricity providers in accordance
with their pro rata share of the costs for such electricity as determined under subdivision
(1) of this subsection.
(4) All reasonable costs of a Vermont retail electricity provider incurred under this
section shall be included in the provider’s revenue requirement for purposes of ratemaking
under sections 218, 218d, 225, and 227 of this title. In including such costs, the Commission shall appropriately account for any credits
received under subdivision (2) of this subsection. Costs included in a retail electricity
provider’s revenue requirement under this subdivision shall be allocated to the provider’s
ratepayers as directed by the Commission.
(g) A retail electricity provider shall be exempt from the requirements of this section
if, and for so long as, one-third of the electricity supplied by the provider to its
customers is from a plant that produces electricity from woody biomass.
(h) The Commission may issue rules or orders to carry out this section.
(i) The State and its instrumentalities shall not be liable to a plant owner or retail
electricity provider with respect to any matter related to the baseload renewable
power portfolio requirement or a plant used to satisfy such requirement, including
costs associated with a contract related to such a plant or any damages arising from
the breach of such a contract, the flow of power between a plant and the electric
grid, or the interconnection of a plant to that grid. For the purpose of this section,
the Commission and the Standard Offer Facilitator constitute instrumentalities of
the State.
(j) The Commission shall authorize any Agency participating in a proceeding pursuant to
this section or an order issued under this section to assess its costs against a proposed
plant consistent with section 21 of this title.
(k) Collocation and efficiency requirements.
(1) The owner of the plant used to satisfy the baseload renewable power portfolio requirement
shall cause the plant’s overall efficiency to be increased by at least 50 percent
relative to the 12-month period preceding July 1, 2022. In achieving this efficiency,
the owner shall comply with the requirements of this subsection.
(2) On or before October 1, 2025, the owner of the plant shall submit to the Commission
and the Department:
(A) A signed contract providing for the construction of a facility at the plant that utilizes
the excess thermal heat generated at the plant for a beneficial purpose. As used in
this subdivision (A), beneficial purpose may include the displacement of fossil fuel
use for the sustainable production of a product or service or more efficient or less
costly generation of electricity.
(B) A certification by a qualified professional engineer that the construction of the
facility shall meet the requirement of subdivision (1) of this subsection (k).
(3) On or before October 1, 2026, the owner of the plant shall submit to the Commission
and the Department a certification that the main components of the facility used to
meet the requirement of subdivision (1) of this subsection have been manufactured
and that the construction plans for the facility have been completed.
(4) If the contract and certification required under subdivision (2) of this subsection
are not submitted to the Commission and Department on or before October 1, 2025 or
if the certification required under subdivision (3) is not submitted to the Commission
and Department on or before October 1, 2026, then the obligation under this section
for each Vermont retail electricity provider to purchase a pro rata share of the baseload
renewable power portfolio requirement shall cease on November 1, 2026, and the Commission
is not required to conduct the rate determination provided for in subsection (d) of
this section.
(5) On or before September 1, 2027, the Department shall investigate and submit a recommendation
to the Commission on whether the plant has achieved the requirement of subdivision
(1) of this subsection. If the Department recommends that the plant has not achieved
the requirement of subdivision (1) of this subsection, the obligation under this section
shall cease on November 1, 2027, and the Commission is not required to conduct the
rate determination provided for in subsection (d) of this section.
(6) After November 1, 2028, the owner of the plant shall report annually to the Department
and the Department shall verify the overall efficiency of the plant for the prior
12-month period. If the overall efficiency of the plant falls below the requirement
of subdivision (1) of this subsection, the report shall include a plan to return the
plant to the required efficiency within one year.
(7) If, after implementing the plan in subdivision (6) of this subsection, the owner of
the plant does not achieve the efficiency required in subdivision (1) of this subsection,
the Department shall request that the Commission commence a proceeding to terminate
the obligation under this section.
(8) The Department may retain research, scientific, or engineering services to assist
it in making the recommendation required under subdivision (5) of this subsection
and in reviewing the information required under subdivision (6) of this subsection
and may allocate the expense incurred or authorized by it to the plant’s owner.
(l) Annual report. Beginning on August 1, 2023, the owner of the plant used to satisfy the baseload
renewable power portfolio shall report annually to the House Committee on Environment
and Energy and Senate Committee on Finance, the Commissioner of Forests, Parks and
Recreation, and the Secretary of Commerce and Community Development on the wood fuel
purchases for the plant. The report shall include the average monthly price paid for
the wood fuel and the source of the wood fuel, including location, number, types,
and sources of non-forest-derived wood. (Added 2011, No. 47, § 11; amended 2011, No. 170 (Adj. Sess.), § 9; 2015, No. 56, § 26; 2021, No. 39, § 1, eff. May 20, 2021; 2021, No. 155 (Adj. Sess.), § 1, eff. May 31, 2022; 2023, No. 142 (Adj. Sess.), § 18, eff. May 30, 2024; 2025, No. 59, § 16, eff. June 11, 2025.)
§ 8010. Self-generation and net metering
(a) A customer may install and operate a net metering system in accordance with this section
and the rules adopted under this section.
(b) A net metering customer shall pay the same rates, fees, or other payments and be subject
to the same conditions and requirements as all other purchasers from the interconnecting
retail electricity provider in the same rate-class, except as this section or the
rules adopted under this section may provide, and except for appropriate and necessary
conditions approved by the Commission for the safety and reliability of the electric
distribution system.
(c) In accordance with this section, the Commission shall adopt and implement rules that
govern the installation and operation of net metering systems.
(1) The rules shall establish and maintain a net metering program that:
(A) advances the goals and total renewables targets of this chapter and the goals of 10 V.S.A. § 578 (greenhouse gas reduction) and is consistent with the criteria of subsection 248(b) of this title;
(B) achieves a level of deployment that is consistent with the recommendations of the
Electrical Energy and Comprehensive Energy Plans under sections 202 and 202b of this title, unless the Commission determines that this level is inconsistent with the goals
and targets identified in subdivision (1)(A) of this subsection (c). Under this subdivision
(B), the Commission shall consider the Plans most recently issued at the time the
Commission adopts or amends the rules;
(C) to the extent feasible, ensures that net metering does not shift costs included in
each retail electricity provider’s revenue requirement between net metering customers
and other customers;
(D) accounts for all costs and benefits of net metering, including the potential for net
metering to contribute toward relieving supply constraints in the transmission and
distribution systems and to reduce consumption of fossil fuels for heating and transportation;
(E) [Repealed.]
(F) balances, over time, the pace of deployment and cost of the program with the program’s
impact on rates;
(G) accounts for changes over time in the cost of technology;
(H) allows a customer to retain ownership of the environmental attributes of energy generated
by the customer’s net metering system and of any associated tradeable renewable energy
credits or to transfer those attributes and credits to the interconnecting retail
provider, and:
(i) if the customer retains the attributes, reduces the value of the credit provided under
this section for electricity generated by the customer’s net metering system by an
appropriate amount;
(ii) if the customer transfers the attributes to the interconnecting provider, requires
the provider to retain them for application toward compliance with sections 8004 and 8005 of this title unless the provider has fewer than 75,000 customers, in which case the attributes
do not need to be applied toward compliance obligations under sections 8004 and 8005 of this title; and
(iii) if a retail electricity provider that is 100 percent renewable under subdivision 8005(b)(1) of this title does not retire the transferred attributes under sections 8004 and 8005 of this title, requires that the provider apply an equivalent amount of attributes from distributed
renewable generation that qualifies under subdivision 8005(a)(2) of this title toward its compliance obligations under sections 8004 and 8005 of this title; and
(I) allows a customer to change the customer’s decision to retain or transfer the attributes
once in the 120-day period after the net metering system is commissioned.
(2) The rules shall include provisions that govern:
(A) whether there is a limit on the cumulative plant capacity of net metering systems
to be installed over time and what that limit is, if any;
(B) the transfer of certificates of public good issued for net metering systems and the
abandonment of net metering systems;
(C) the respective duties of retail electricity providers and net metering customers;
(D) the electrical safety, power quality, interconnection, and metering of net metering
systems;
(E) the formation of group net metering systems, the resolution of disputes between group
net metering customers and the interconnecting provider, and the billing, crediting,
and disconnection of group net metering customers by the interconnecting provider;
and
(F) the amount of the credit to be assigned to each kWh of electricity generated by a
net metering customer in excess of the electricity supplied by the interconnecting
provider to the customer, the manner in which the customer’s credit will be applied
on the customer’s bill, and the period during which a net metering customer must use
the credit, after which the credit shall revert to the interconnecting provider.
(i) [Repealed.]
(ii) As used in this subdivision (ii), “existing net metering system” means a net metering
system for which a complete application was filed before January 1, 2017.
(I) Commencing 10 years from the date on which an existing net metering system was installed,
the Commission may apply to the system the same rules governing bill credits and the
use of those credits on the customer’s bill that it applies to net metering systems
for which applications were filed on or after January 1, 2017, other than any adjustments
related to siting and tradeable renewable energy credits.
(II) The amount of excess generation, as defined in the Commission’s rules, from existing
net metering systems, may be applied to reduce the provider’s statutory requirements
under:
(aa) subdivision 8005(a)(2) of this title for a provider with fewer than 75,000 customers, not including one that is 100 percent
renewable under subdivision 8005(b)(1) of this title, and
(bb) subdivision 8005(a)(5) of this title for a provider that is 100 percent renewable under subdivision 8005(b)(1) of this title.
(III) This subdivision (ii) shall apply to existing net metering systems notwithstanding
any contrary provision of 1 V.S.A. § 214 and 2014 Acts and Resolves No. 99, Sec. 10.
(3) The rules shall establish standards and procedures governing application for and issuance
or revocation of a certificate of public good for net metering systems under the provisions
of section 248 of this title. In establishing these standards and procedures:
(A) The rules may waive the requirements of section 248 of this title that are not applicable to net metering systems, including criteria that are generally
applicable to public service companies as defined in this title.
(B) The rules may modify notice and hearing requirements of this title as the Commission
considers appropriate.
(C) The rules shall seek to simplify the application and review process as appropriate
(D) With respect to net metering systems that exceed 150 kW in plant capacity, the rules
shall apply the so-called “Quechee” test for aesthetic impact as described by the
Vermont Supreme Court in the case of In re Halnon, 174 Vt. 515 (2002) (mem.). The rules and application form shall state the components of this test.
(E) The rules shall not waive or include provisions that are less stringent than the requirements
of subdivision 248(a)(4)(J) (required information) of this title.
(F) This subdivision (F) applies to an application for a net metering system with a capacity
that is greater than 25 kilowatts, unless the system is located on a new or existing
structure the primary purpose of which is not the generation of electricity. With
respect to such a system, the rules shall not waive or include provisions that are
less stringent than each of the following:
(i) the requirement of subdivision 248(a)(4)(C) of this title to provide a copy of the application to the Agencies of Agriculture, Food and Markets
and of Natural Resources; the Department of Public Service; the Division for Historic
Preservation; the municipal legislative body; and the municipal and regional planning
commissions; and
(ii) the requirements of subsection 248(f) (preapplication submittal) of this title.
(G) The rules shall establish an expedited registration procedure for net metering systems
of 25 kilowatts and less in size.
(4) This section does not require the Commission to adopt identical requirements for the
service territory of each retail electricity provider.
(5) Each retail electricity provider shall implement net metering in its service territory
through a rate schedule that is consistent with this section and the rules adopted
under this section and is approved by the Commission.
(d) [Repealed.]
(e) If a hydroelectric generation plant seeking approval as a net metering system is subject
to licensing jurisdiction under the Federal Power Act, 16 U.S.C. chapter 12, subchapter
1, the Commission shall require the plant to obtain such approval through means other
than by application for a certificate of public good under section 248 of this title.
(f) Except for net metering systems for which the Commission has established a registration
process, the Commission shall issue a final determination as to an uncontested application
within 90 days following the date of the last substantive filing by a party. (Added 2013, No. 99 (Adj. Sess.), § 4, eff. Jan. 1, 2017; amended 2015, No. 56, § 12, eff. Jan. 2, 2017; 2015, No. 174 (Adj. Sess.), § 13, eff. Jan. 2, 2017; 2017, No. 42, § 7, eff. May 22, 2017; 2019, No. 31, § 6; 2019, No. 81, § 5; 2023, No. 85 (Adj. Sess.), § 457, eff. July 1, 2024; 2023, No. 179 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 38, § 1, eff. July 1, 2025.)
§ 8011. Energy storage facilities
(a) The Commission may adopt and implement rules that govern the installation and operation
of energy storage facilities of all sizes.
(b) The rules may establish a size threshold below which storage facilities need not submit
an application for a certificate of public good pursuant to section 248 of this title.
(c) The rules may include provisions that govern:
(1) the respective duties of retail electricity providers and energy storage facility
owners or operators;
(2) the electrical and fire safety, power quality, interconnection, metering, and decommissioning
of energy storage facilities;
(3) the resolution of disputes between energy storage facility owners, operators, and
the interconnecting provider;
(4) energy storage aggregators and the operation of aggregations; and
(5) energy storage facilities paired with other resources, such as net metering and standard
offer plants, including retrofits of existing plants.
(d) The rules shall establish standards and procedures governing application for and issuance
or revocation of a certificate of public good for certain energy storage facilities
under the provisions of section 248 of this title. In establishing these standards and procedures, the rules may:
(1) waive the requirements of section 248 of this title that are not applicable to energy storage facilities, including criteria that are
generally applicable to public service companies as defined in this title;
(2) modify notice and hearing requirements of this title as the Commission considers appropriate;
and
(3) seek to simplify the application and review process. (Added 2021, No. 54, § 11.)
§§ 8012-8014. [Reserved for future use]
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Subchapter 002: CLEAN ENERGY DEVELOPMENT FUND
§ 8015. Vermont Clean Energy Development Fund
(a) Creation of Fund.
(1) There is established the Vermont Clean Energy Development Fund to consist of each
of the following:
(A) The proceeds due the State under the terms of the memorandum of understanding between
the Department of Public Service and Entergy Nuclear VY and Entergy Nuclear Operations,
Inc. that was entered under Public Service Board docket 6812, together with the proceeds
due the State under the terms of any subsequent memoranda of understanding entered
before July 1, 2005 between the Department of Public Service and Entergy Nuclear VY
and Entergy Nuclear Operations, Inc.
(B) Any other monies that may be appropriated to or deposited into the Fund.
(2) Balances in the Fund shall be expended solely for the purposes set forth in this subchapter
and shall not be used for the general obligations of government. All balances in the
Fund at the end of any fiscal year shall be carried forward and remain part of the
Fund. Interest earned by the Fund shall be deposited in the Fund. This Fund is established
in the State Treasury pursuant to 32 V.S.A. chapter 7, subchapter 5.
(b) Definitions. As used in this section, the following definitions shall apply:
(1) “Clean energy resources” means electric power supply and demand-side resources, or
thermal energy or geothermal resources, that are “combined heat and power facilities,”
“cost-effective energy efficiency resources,” or “renewable energy” resources.
(2) “Combined heat and power (CHP) facility” means a generator that sequentially produces
both electric power and thermal energy from a single source or fuel. In order for
a fossil fuel-based CHP system to participate in the clean energy program set out
in this section, at least 20 percent of its fuel’s total recovered energy must be
thermal and at least 13 percent must be electric, the design system efficiency (the
sum of full load design thermal output and electric output divided by the heat input)
must be at least 65 percent, and it must meet air quality standards established by
the Agency of Natural Resources.
(3) “Cost-effective energy efficiency” means those energy efficiency and conservation
measures that would qualify as part of a utility’s least-cost integrated plan under
section 218c of this title or that would be an eligible expenditure under subsection 209(d) of this title.
(4) “Emerging energy-efficient technologies” means technologies that are both precommercial
but near commercialization and that have already entered the market but have less
than five percent of current market share; that use less energy than existing technologies
and practices to produce the same product or otherwise conserve energy and resources,
regardless of whether or not they are connected to the grid; and that have additional
non-energy benefits such as reduced environmental impact, improved productivity and
worker safety, or reduced capital costs.
(5) “Renewable energy” has the meaning established under section 8002 of this title and shall include the following: solar photovoltaic and solar thermal energy; wind
energy; geothermal heat pumps; farm, landfill, and sewer methane recovery; low emission,
advanced biomass power, and combined heat and power technologies using biomass fuels
such as wood, agricultural or food wastes, energy crops, and organic refuse-derived
waste, but not municipal solid waste; advanced biomass heating technologies and technologies
using biomass-derived fluid fuels such as biodiesel, bio-oil, and bio-gas.
(6) “Energy storage” means a system that uses mechanical, chemical, or thermal processes
to store energy for later use.
(c) Purposes of Fund. The purposes of the Fund shall be to promote the development and deployment of cost-effective
and environmentally sustainable electric power and thermal energy or geothermal resources
for the long-term benefit of Vermont consumers, primarily with respect to renewable
energy resources, and the use of combined heat and power technologies. The Fund also
may be used to support natural gas and electric vehicles in accordance with subdivisions
(d)(1)(K) and (L) of this section, respectively. The General Assembly expects and
intends that the Public Utility Commission, Department of Public Service, and the
State’s power and efficiency utilities will actively implement the authority granted
in this title to acquire all reasonably available cost-effective energy efficiency
resources for the benefit of Vermont ratepayers and the power system.
(d) Expenditures authorized.
(1) Projects for funding may include the following:
(A) projects that will sell power in commercial quantities;
(B) among those projects that will sell power in commercial quantities, funding priority
will be given to those projects that commit to sell power to Vermont utilities on
favorable terms;
(C) projects to benefit publicly owned or leased buildings;
(D) renewable energy projects on farms, which may include any or all costs incurred to
upgrade to a three-phase line to serve a system on a farm;
(E) small-scale renewable energy in Vermont residences, institutions, and businesses:
(i) generally; and
(ii) through the Small-scale Renewable Energy Incentive Program;
(F) projects under the agricultural economic development special account established under
6 V.S.A. § 4710(g) to harvest biomass, convert biomass to energy, or produce biofuel;
(G) until December 31, 2008 only, super-efficient buildings;
(H) projects to develop and use thermal or geothermal energy, regardless of whether they
also involve the generation of electricity;
(I) emerging energy-efficient technologies;
(J) effective projects that are not likely to be established in the absence of funding
under the program;
(K) natural gas vehicles and associated fueling infrastructure if each such vehicle is
dedicated only to natural gas fuel and, on a life cycle basis, the vehicle’s emissions
will be lower than those of commercially available vehicles using other fossil fuel,
and any such infrastructure will deliver gas without interruption of flow;
(L) electric vehicles and associated charging stations;
(M) energy storage projects that facilitate utilization of renewable energy resources.
[Subdivision (d)(2) effective until June 30, 2027; see subdivision (d)(2) effective
June 30, 2027 set out below.]
(2) If during a particular year, the Commissioner of Public Service determines that there
is a lack of high value projects eligible for funding, as identified in the five-year
plan, or as otherwise identified, the Commissioner shall consult with the Clean Energy
Development Board and shall consider transferring funds to the Energy Efficiency Fund
established under the provisions of subsection 209(d) of this title. Such a transfer may take place only in response to an opportunity for a particularly
cost-effective investment in energy efficiency, and only as a temporary supplement
to funds collected under that subsection, not as replacement funding.
[Subdivision (d)(2) effective June 30, 2027; see subdivision (d)(2) effective until
June 30, 2027 set out above.]
(2) If during a particular year, the Commissioner of Public Service determines that there
is a lack of high value projects eligible for funding, as identified in the five-year
plan, or as otherwise identified, the Commissioner shall consider transferring funds
to the Energy Efficiency Fund established under the provisions of subsection 209(d) of this title. Such a transfer may take place only in response to an opportunity for a particularly
cost-effective investment in energy efficiency, and only as a temporary supplement
to funds collected under that subsection, not as replacement funding.
(3) Notwithstanding any contrary provision of this section, the Clean Energy Development
Fund shall use all of the monies from alternative compliance payments under sections
8004 and 8005 of this title for projects that meet the definition of “energy transformation project” under section 8002 of this title and the eligibility criteria for those projects under section 8005 of this title. The Fund shall implement projects in the service territory of the retail electricity
provider or providers making the alternative compliance payments used to support the
projects and, in the case of a project delivered in more than one territory, shall
prorate service delivery according to each provider’s contribution. A provider shall
not count, toward its required amount under the energy transformation category of
section 8005 of this title, support provided by the Fund for an energy transformation project.
[Subsection (e) effective until June 30, 2027; see subsection (e) effective June 30,
2027 set out below.]
(e) Management of Fund.
(1) This Fund shall be administered by the Department of Public Service to facilitate
the development and implementation of clean energy resources. The Department is authorized
to expend monies from the Clean Energy Development Fund in accordance with this section.
The Commissioner of the Department shall make all decisions necessary to implement
this section and administer the Fund except those decisions committed to the Clean
Energy Development Board under this subsection. The Department shall ensure an open
public process in the administration of the Fund for the purposes established in this
subchapter.
(2) During fiscal years after FY 2006, up to five percent of amounts appropriated to the
Department of Public Service from the Fund may be used for administrative costs related
to the Clean Energy Development Fund.
(3) There is created the Clean Energy Development Board, which shall consist of seven
persons appointed in accordance with subdivision (4) of this subsection.
(A) The Clean Energy Development Board shall have decision-making and approval authority
with respect to the plans, budget, and program designs described in subdivisions (7)(B)-(D)
of this subsection (e). The Clean Energy Development Board shall function in an advisory
capacity to the Commissioner on all other aspects of this section’s implementation.
(B) During a Board member’s term and for a period of one year after the member leaves
the Board, the Clean Energy Development Fund shall not make any award of funds to
and shall confer no financial benefit on a company or corporation of which the member
is an employee, officer, partner, proprietor, or Board member or of which the member
owns more than 10 percent of the outstanding voting securities. This prohibition shall
not apply to a financial benefit that is available to any person and is not awarded
on a competitive basis or offered only to a limited number of persons.
(4) The Commissioner of Public Service shall appoint three members of the Clean Energy
Development Board, and the Chairs of the House Committee on Environment and Energy
and the Senate Committee on Natural Resources and Energy each shall appoint two members
of the Clean Energy Development Board. The terms of the members of the Clean Energy
Development Board shall be four years, except that when appointments to this Board
are made for the first time after May 25, 2011, each appointing authority shall appoint
one member for a two-year term and the remaining members for four-year terms. When
a vacancy occurs in the Board during the term of a member, the authority who appointed
that member shall appoint a new member for the balance of the departing member’s term.
(5) Except for those members of the Clean Energy Development Board otherwise regularly
employed by the State, the compensation of the members shall be the same as that provided
by 32 V.S.A. § 1010(a).
(6) In performing its duties, the Clean Energy Development Board may utilize the legal
and technical resources of the Department of Public Service. The Department of Public
Service shall provide the Clean Energy Development Board with administrative services.
(7) The Department shall perform each of the following:
(A) On or before January 15 of each year, provide to the Senate Committees on Finance
and on Natural Resources and Energy and the House Committees on Commerce and Economic
Development and on Environment and Energy a report for the fiscal year ending the
preceding June 30 detailing the activities undertaken, the revenues collected, and
the expenditures made under this subchapter. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this
subdivision.
(B) Develop, and submit to the Clean Energy Development Board for review and approval,
a five-year strategic plan and an annual program plan, both of which shall be developed
with input from a public stakeholder process and shall be consistent with State energy
planning principles.
(C) Develop, and submit to the Clean Energy Development Board for review and approval,
an annual operating budget.
(D) Develop, and submit to the Clean Energy Development Board for review and approval,
proposed program designs to facilitate clean energy market and project development
(including use of financial assistance, investments, competitive solicitations, technical
assistance, and other incentive programs and strategies). Prior to any approval of
a new program or of a substantial modification to a previously approved program of
the Clean Energy Development Fund, the Department of Public Service shall publish
online the proposed program or modification, shall provide an opportunity for public
comment of no less than 30 days, and shall provide to the Clean Energy Development
Board copies of all comments received on the proposed program or modification. In
this subdivision (D), “substantial modification” shall include a change to a program’s
application criteria or application deadlines and shall include any change to a program
if advance knowledge of the change could unfairly benefit one applicant over another
applicant. For the purpose of 3 V.S.A. § 831(c) (initiating rulemaking on request), a new program or substantial modification of
a previously approved program shall be treated as if it were an existing practice
or procedure.
(8) At least annually, the Clean Energy Development Board and the Commissioner or designee
jointly shall hold a public meeting to review and discuss the status of the Fund,
Fund projects, the performance of the Fund Manager, any reports, information, or inquiries
submitted by the Fund Manager or the public, and any additional matters they deem
necessary to fulfill their obligations under this section.
[Subsection (e) effective June 30, 2027; see subsection (e) effective until June 30,
2027 set out above.]
(e) Management of Fund.
(1) This Fund shall be administered by the Department of Public Service to facilitate
the development and implementation of clean energy resources. The Department is authorized
to expend monies from the Clean Energy Development Fund in accordance with this section.
The Commissioner of the Department shall make all decisions necessary to implement
this section and administer the Fund. The Department shall ensure an open public process
in the administration of the Fund for the purposes established in this subchapter.
(2) During fiscal years after FY 2006, up to five percent of amounts appropriated to the
Department of Public Service from the Fund may be used for administrative costs related
to the Clean Energy Development Fund.
(3) The Department shall perform each of the following:
(A) On or before January 15 of each year, provide to the Senate Committees on Finance
and on Natural Resources and Energy and the House Committees on Commerce and Economic
Development and on Environment and Energy a report for the fiscal year ending the
preceding June 30 detailing the activities undertaken, the revenues collected, and
the expenditures made under this subchapter. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this
subdivision.
(B) Develop a five-year strategic plan and an annual program plan, both of which shall
be developed with input from a public stakeholder process and shall be consistent
with State energy planning principles.
(C) Develop an annual operating budget.
(D) Develop proposed program designs to facilitate clean energy market and project development
(including use of financial assistance, investments, competitive solicitations, technical
assistance, and other incentive programs and strategies). Prior to any approval of
a new program or of a substantial modification to a previously approved program of
the Clean Energy Development Fund, the Department of Public Service shall publish
online the proposed program or modification, shall provide an opportunity for public
comment of no less than 30 days. For the purposes of this subdivision (D), “substantial
modification” includes a change to a program’s application criteria or application
deadlines and includes any change to a program if advance knowledge of the change
could unfairly benefit one applicant over another applicant. For the purpose of 3 V.S.A. § 831(c) (initiating rulemaking on request), a new program or substantial modification of a
previously approved program shall be treated as if it were an existing practice or
procedure.
(4) At least annually, the Commissioner or designee jointly shall hold a public meeting
to review and discuss the status of the Fund; Fund projects; the performance of the
Fund Manager; any reports, information, or inquiries submitted by the Fund Manager
or the public; and any additional matters they deem necessary to fulfill the Commissioner’s
obligations under this section.
(f) Clean Energy Development Fund Manager. The Clean Energy Development Fund shall have a Fund Manager who shall be an employee
of the Department of Public Service.
[Subsection (g) effective until June 30, 2027; see subsection (g) effective June 30,
2027 set out below.]
(g) Bonds. The Commissioner of Public Service, in consultation with the Clean Energy Development
Board, may explore use of the Fund to establish one or more loan-loss reserve funds
to back issuance of bonds by the State Treasurer otherwise authorized by law, including
Clean Renewable Energy Bonds, that support the purposes of the Fund.
[Subsection (g) effective June 30, 2027; see subsection (g) effective until June 30,
2027 set out above.]
(g) Bonds. The Commissioner of Public Service may explore use of the Fund to establish one or
more loan-loss reserve funds to back issuance of bonds by the State Treasurer otherwise
authorized by law, including Clean Renewable Energy Bonds, that support the purposes
of the Fund.
[Subsection (h) effective until June 30, 2027; see subsection (h) effective June 30,
2027 set out below.]
(h) ARRA funds. All American Recovery and Reinvestment Act (ARRA) funds described in section 8016 of this title shall be disbursed, administered, and accounted for in a manner that ensures rapid
deployment of the funds and is consistent with all applicable requirements of ARRA,
including requirements for administration of funds received and for timeliness, energy
savings, matching, transparency, and accountability. These funds shall be expended
for the following categories listed in this subsection, provided that no single project
directly or indirectly receives a grant in more than one of these categories. After
consultation with the Clean Energy Development Board, the Commissioner of Public Service
shall have discretion to use non-ARRA monies within the fund to support all or a portion
of these categories and shall direct any ARRA monies for which non-ARRA monies have
been substituted to the support of other eligible projects, programs, or activities
under ARRA and this section.
(1) The Vermont Small-scale Renewable Energy Incentive Program currently administered
by the Renewable Energy Resource Center, for use in residential and business installations.
These funds may be used by the Program for all forms of renewable energy as defined
by section 8002 of this title, including biomass and geothermal heating. The disbursement to this Program shall
seek to promote continuous funding for as long as funds are available.
(2) Grant and loan programs for renewable energy resources, including thermal resources
such as district biomass heating that may not involve the generation of electricity.
(3) Grants and loans to thermal energy efficiency incentive programs, community-scale
renewable energy financing programs, certification and training for renewable energy
workers, promotion of local biomass and geothermal heating, and an anemometer loan
program.
(4) $2 million for a public-serving institution efficiency and renewable energy program
that may include grants and loans and create a revolving loan fund. In this subsection,
“public-serving institution” means government buildings and nonprofit public and private
universities, colleges, and hospitals. In this program, awards shall be made through
a competitive bid process.
(5) $2 million to the Vermont Housing and Conservation Board (VHCB) to make grants and
deferred loans to nonprofit organizations for weatherization and renewable energy
activities allowed by federal law, including assistance for nonprofit owners and occupants
of permanently affordable housing.
(6) $2 million to the Vermont Telecommunications Authority (VTA) to make grants of no
more than $10,000.00 per turbine for installation of small-scale wind turbines and
associated towers on which telecommunications equipment is to be collocated and that
are developed in association with the VTA.
(7) $880,000.00 to the 11 regional planning commissions ($80,000.00 to each such commission)
to conduct energy efficiency and energy conservation activities that are eligible
under the EECBG program.
(8) Concerning the funds authorized for use in subdivisions (4)-(7) of this subsection:
(A) To the extent permissible under ARRA, up to five percent may be spent for administration
of the funds received.
(B) In the event that the Commissioner of Public Service determines that a recipient of
such funds has insufficient eligible projects, programs, or activities to fully utilize
the authorized funds, then after consultation with the Clean Energy Development Board,
the Commissioner shall have discretion to reallocate the balance to other eligible
projects, programs, or activities under this section.
(9) The Commissioner of Public Service is authorized, to the extent allowable under ARRA,
to utilize up to 10 percent of ARRA funds received for the purpose of administration.
The Commissioner shall allocate a portion of the amount utilized for administration
to retain permanent, temporary, or limited service positions or contractors and the
remaining portion to the oversight of specific projects receiving ARRA funding pursuant
to section 6524 of this title.
[Subsection (h) effective June 30, 2027; see subsection (h) effective until June 30,
2027 set out above.]
(h) ARRA funds. All American Recovery and Reinvestment Act (ARRA) funds described in section 8016 of this title shall be disbursed, administered, and accounted for in a manner that ensures rapid
deployment of the funds and is consistent with all applicable requirements of ARRA,
including requirements for administration of funds received and for timeliness, energy
savings, matching, transparency, and accountability. These funds shall be expended
for the following categories listed in this subsection, provided that no single project
directly or indirectly receives a grant in more than one of these categories. The
Commissioner of Public Service shall have discretion to use non-ARRA monies within
the fund to support all or a portion of these categories and shall direct any ARRA
monies for which non-ARRA monies have been substituted to the support of other eligible
projects, programs, or activities under ARRA and this section.
(1) The Vermont Small Scale Renewable Energy Incentive Program currently administered
by the Renewable Energy Resource Center, for use in residential and business installations.
These funds may be used by the Program for all forms of renewable energy as defined
by section 8002 of this title, including biomass and geothermal heating. The disbursement to this Program shall
seek to promote continuous funding for as long as funds are available.
(2) Grant and loan programs for renewable energy resources, including thermal resources
such as district biomass heating that may not involve the generation of electricity.
(3) Grants and loans to thermal energy efficiency incentive programs, community-scale
renewable energy financing programs, certification and training for renewable energy
workers, promotion of local biomass and geothermal heating, and an anemometer loan
program.
(4) $2 million for a public-serving institution efficiency and renewable energy program
that may include grants and loans and create a revolving loan fund. As used in this
subsection, “public-serving institution” means government buildings and nonprofit
public and private universities, colleges, and hospitals. In this program, awards
shall be made through a competitive bid process.
(5) $2 million to the Vermont Housing and Conservation Board (VHCB) to make grants and
deferred loans to nonprofit organizations for weatherization and renewable energy
activities allowed by federal law, including assistance for nonprofit owners and occupants
of permanently affordable housing.
(6) [Repealed.]
(7) $880,000.00 to the 11 regional planning commissions ($80,000.00 to each such commission)
to conduct energy efficiency and energy conservation activities that are eligible
under the EECBG program.
(8) Concerning the funds authorized for use in subdivisions (4)-(7) of this subsection:
(A) To the extent permissible under ARRA, up to five percent may be spent for administration
of the funds received.
(B) In the event that the Commissioner of Public Service determines that a recipient of
such funds has insufficient eligible projects, programs, or activities to fully utilize
the authorized funds, the Commissioner shall have discretion to reallocate the balance
to other eligible projects, programs, or activities under this section.
(9) The Commissioner of Public Service is authorized, to the extent allowable under ARRA,
to utilize up to 10 percent of ARRA funds received for the purpose of administration.
The Commissioner shall allocate a portion of the amount utilized for administration
to retain permanent, temporary, or limited service positions or contractors and the
remaining portion to the oversight of specific projects receiving ARRA funding pursuant
to section 6524 of this title.
[Subsection (i) effective until June 30, 2027; see subsection (i) effective June 30,
2027 set out below.]
(i) Rules. The Department and the Clean Energy Development Board each may adopt rules pursuant
to 3 V.S.A. chapter 25 to carry out its functions under this section and shall consult with each other either
before or during the rulemaking process.
[Subsection (i) effective June 30, 2027; see subsection (i) effective until June 30,
2027 set out above.]
(i) Rules. The Department may adopt rules pursuant to 3 V.S.A. chapter 25 to carry out its functions under this section. (Added 2005, No. 74, § 2; amended 2005, No. 208 (Adj. Sess.), § 5; 2005, No. 215 (Adj. Sess.), § 280, eff. May 31, 2006; 2007, No. 65, § 94a; 2007, No. 92 (Adj. Sess.), § 7; 2009, No. 45, §§ 5, 9e, eff. May 27, 2009; 2009, No. 54, § 93, eff. June 1, 2009; 2009, No. 1 (Sp. Sess.), § E.235.3, eff. June 2, 2009; 2009, No. 2 (Sp. Sess.), § 4, eff. June 1, 2009; 2009, No. 3 (Sp. Sess.), § 13, eff. June 10, 2009; 2009, No. 67 (Adj. Sess.), § 68, eff. Feb. 25, 2010; 2009, No. 67 (Adj. Sess.), § 103; 2009, No. 159 (Adj. Sess.), § 18a; 2011, No. 47, § 20j, eff. July 9, 2011, except subdivs. (d)(3) and (4) and (e)(3) and (4) eff. May 25, 2011; 2013, No. 89, § 15; 2013, No. 95 (Adj. Sess.), § 82a, eff. Feb. 25, 2014; 2013, No. 142 (Adj. Sess.), § 53; 2015, No. 56, § 13; 2017, No. 53, § 23, eff. May 30, 2017; 2017, No. 113 (Adj. Sess.), § 175b; 2023, No. 53, § 137, eff. June 30, 2027.)
§ 8016. ARRA energy monies
The expenditure of each of the following shall be subject to the direction and approval
of the Commissioner of Public Service, after consultation with the Clean Energy Development
Board established under subdivision 8015(e)(4) of this title, and shall be made in accordance with subdivisions 8015(d)(1) (expenditures authorized),
and (e)(7)(A) (reporting) and subsections 8015(f) (Fund manager), (h) (ARRA funds),
and (i) (rules) of this title and applicable federal law and regulations:
(1) The amount of $21,999,000.00 in funds received by the State under the appropriation
contained in the American Recovery and Reinvestment Act (ARRA) of 2009, Pub.L. No.
111-5, to the State Energy Program authorized under 42 U.S.C. § 6321 et seq.
(2) The amount of $9,593,500.00 received by the State under ARRA from the U.S. Department
of Energy through the Energy Efficiency and Conservation Block Grant Program. (Added 2009, No. 67 (Adj. Sess.); § 69; amended 2011, No. 47, § 20l, eff. July 9, 2011.)