The Vermont Statutes Online

Title 30: Public Service

Chapter 093: Vermont Village Green Pilot Program

• § 8100. Definitions

  In this chapter:

  (1) “Commission” means the Public Utility Commission created under section 3 of this title.

  (2) “Certification” or “certified,” except when part of the phrase “third party certified,” refers to certification of a Vermont village green renewable project by the Department under subsection 8101(b) of this title.

  (3) “Combined heat and power” or “CHP” shall have the meaning stated in section 8015(b) of this title, except that:

  (A) CHP excludes facilities using fossil fuel.

  (B) CHP using woody biomass as a fuel must achieve, for that fuel, no less than a 50-percent net annual efficiency of energy utilized and, during the heating season, a minimum energy conversion efficiency of 70 percent considering all energy inputs and outputs at normal load.

  (4) “Department” means the Department of Public Service created under section 1 of this title.

  (5) “District heating” means a system for distributing heat generated in a centralized location within a host community to multiple residential, commercial, or industrial uses within that community or a combination of such uses. The source of heat may be a dedicated heat-only facility using renewable energy as a fuel or waste heat from electrical generation that uses renewable energy as a fuel to form a CHP system.

  (6) “District power” means a system for distributing electricity generated in a centralized location within a host community to multiple residential, commercial, or industrial uses in that community or a combination of such uses. The electricity must be produced using renewable energy as a fuel source and may include CHP.

  (7) “Host community” means the municipality in which a Vermont village green renewable project is to be located.

  (8) “Renewable energy” shall have the meaning stated in subsection 8015(b) of this title, except that renewable energy using woody biomass as a fuel must achieve, for that fuel, no less than a 50-percent net annual efficiency of energy utilized and, during the heating season, a minimum energy conversion efficiency of 70 percent considering all energy inputs and outputs at normal load.

  (9) “Vermont village green renewable project” means district heating, either with or without district power, to serve a downtown development district designated as such pursuant to 24 V.S.A. § 2793 or a growth center designated as such pursuant to 24 V.S.A. § 2793c. As long as the end uses served by the project are within such a district or center, the generation of heat and power may be outside the district or center. (Added 2009, No. 45, § 15a, eff. May 27, 2009; 2009, No. 54, § 67, eff. June 1, 2009.)

• § 8101. Pilot Program; certification

  (a) The Vermont Village Green Renewable Pilot Program is created to consist of no more than two Vermont village green renewable projects, one each in the City of Montpelier and in the Town of Randolph. Another municipality may seek certification under this chapter in the event either the City of Montpelier or the Town of Randolph, or both, decline to seek or are denied certification.

  (b) On application of a host community, the Department may certify a Vermont village green renewable project under this chapter on finding each of the following:

  (1) The host community proposes a Vermont village green renewable project.

  (2) The host community has submitted an application to the Commission that includes each of the following:

  (A) A description and map of the proposed Vermont village green renewable project, showing its location within the host community.

  (B) A complete description of the existing industrial, commercial, or residential uses to be served by the Vermont village green renewable project; of how the project will serve those uses; and of the billing, payment, and customer service arrangements.

  (C) A letter submitted by the host community in support of the application and, if the host community has a town plan, the letter shall confirm that the proposed project is consistent with that plan.

  (D) A letter issued by the appropriate regional planning commission indicating that the regional impacts of the proposed project and selected site have been considered and that the project conforms with the applicable regional plan.

  (E) A letter from the Vermont Downtown Development Board, as described under 24 V.S.A. § 2792, that the Development Board has been notified of the Vermont village green renewable project.

  (3) The Vermont village green renewable project is consistent with the purposes of the Clean Energy Development Fund as established in section 8015 of this title.

  (4) The host community will invest in the Vermont village green renewable project the incentive created under section 8102 of this title and has provided a plan that demonstrates that such investment will be made.

  (5) The Vermont village green renewable project, if it uses woody biomass as a fuel, will use procurement standards, management practices, and a supply chain that are third party certified using a performance-based audit.

  (6) The Vermont village green renewable project will comply with all applicable national ambient air quality standards and air pollution control rules of the Agency of Natural Resources. If, during 2009, the U.S. Environmental Protection Agency proposes updated emissions standards applicable to wood-fueled boilers to be used in connection with the project, the project shall comply with the proposed standards.

  (7) The Vermont village green renewable project meets all applicable requirements of this chapter.

  (c) Notwithstanding any other provision of law, certification under this section shall not be subject to the provisions of 3 V.S.A. chapter 25 and shall not be subject to appeal.

  (d) A host community does not need to obtain certification unless it seeks its Vermont village green renewable project to be eligible for incentives under section 8102 of this title or rates for electricity as provided under subsection 8104(b) of this title. Certification shall not be required to qualify for net metering under section 219a of this title. (Added 2009, No. 45, § 15a, eff. May 27, 2009; 2009, No. 54, § 67, eff. June 1, 2009; amended 2023, No. 85 (Adj. Sess.), § 459, eff. July 1, 2024.)

• § 8102. Incentives

  (a) The Clean Energy Development Fund created under section 8015 of this title shall provide at least $100,000.00 in incentives to customers who will connect to a certified Vermont village green renewable project. Any such incentive shall be applied by the customer to the cost of constructing the customer’s connection to the project.

  (b) Notwithstanding the provisions of subsection (a) of this section or any other law, on and after April 1, 2012, the Clean Energy Development Fund shall make up to $100,000.00 of funds that would otherwise have been available to customers connecting to Vermont village green renewable projects under this section available to other district heating on a competitive basis. The use of such funds shall not be limited to customer connections. For the purpose of this subsection, it shall not be necessary that the district heating be proposed by a municipality, serve a downtown development district or growth center under 24 V.S.A. § 2793 or 2793c, or obtain certification under this chapter. (Added 2009, No. 45, § 15a, eff. May 27, 2009; amended 2009, No. 54, § 67, eff. June 1, 2009; 2011, No. 155 (Adj. Sess.), § 22, eff. May 16, 2012.)

• § 8103. Heat availability

  All of the heat generated by a Vermont village green renewable project shall be made available to the commercial, industrial, and residential users identified in the host community’s application to the Commission under subsection 8101(b) of this title. (Added 2009, No. 45, § 15a, eff. May 27, 2009; 2009, No. 54, § 67, eff. June 1, 2009.)

• § 8104. Rates for electricity

  (a) All or a portion of the electricity generated by a Vermont village green renewable project, if it includes district power, shall be made available to the commercial, industrial, and residential users identified in the host community’s application to the Commission under subsection 8101(b) of this title.

  (b) If a Vermont village green renewable project includes district power and does not qualify or opt for treatment as a net metering system under section 8010 of this title:

  (1) On petition of the host community, the Commission after notice and opportunity for hearing shall create a rate class for the commercial, industrial, and residential uses served by the project, the rates for which class at a minimum shall be consistent with the following principle: An end user shall pay the same share of the distribution utility’s fixed costs as a similar end user not served by the project.

  (2) Excess electricity may be sold to the distribution utility at the market rate or by contract. (Added 2009, No. 45, § 15a, eff. May 27, 2009; amended 2009, No. 54, § 67, eff. June 1, 2009; 2013, No. 99 (Adj. Sess.), § 7, eff. Jan. 1, 2017.)

• § 8105. Repealed. 2019, No. 31, § 3.