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S.339
Introduced by Senator Lyons of Chittenden District and Senator Miller of
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Chittenden District
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Referred to Committee on
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Date:
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Subject: Conservation; public service; climate change
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Statement of purpose: This bill proposes to require that the state agency
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energy plan for state government include a program for the cost-effective
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installation of solar energy equipment in state buildings. It proposes to require
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the coordination of state purchasing decisions to assure the use of biodiesel to
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heat state buildings that rely on #2 fuel oil, to power that portion of the state
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fleet that employs diesel engines, and to power diesel backup generators. It
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proposes to make it a priority of the department of economic development to
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assist renewable energy companies in expanding and moving to the state. It
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proposes to provide that qualified energy efficiency and renewable energy
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goods and services be eligible to use the Vermont brand. It provides that as
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part of the farm viability enhancement program, the secretary of agriculture,
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food and markets shall develop a farm renewable energy program, and shall
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develop a web-based, methane digester cost and benefit calculator.
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The bill proposes to expand the scope of appliance energy efficiency
legislation, contingent upon similar action being taken in states in the region,
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to include automatic commercial ice-makers; ceiling fans and fan light kits;
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commercial clothes washers; commercial pre-rinse spray valves; commercial
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refrigerators, freezers, and refrigerator-freezers; digital television adapters;
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furnace air handlers; illuminated exit signs; large packaged
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air-conditioning equipment; low voltage dry-type distribution transformers;
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pulldown refrigerators; torchieres; traffic signal modules; and unit heaters. It
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proposes to require that the commissioner of public service monitor efficiency
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advances in the development of appliances, and revise the rules so as to assure
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that the standards continue to reflect the state of the art in affordable
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conservation technology, and to make the standards at least as aggressive in
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reducing energy consumption as are the standards in effect in other states,
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where doing so would be in the interests of electrical energy consumers of the
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state.
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It proposes to amend the Vermont economic development authority chapter
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to expand the definition of eligible facility to include energy efficiency and
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renewable energy opportunities relating to certain retail sales and relating to
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housing, and to make it clear that eligible endeavors include: logging; the
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operation of sawmills and processing of forest products; and renewable energy
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and energy efficiency businesses.
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The bill proposes the establishment of a greenhouse gas emissions registry
and a regional reporting system, and requires the secretary of natural resources
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to develop rules for the reporting and verification of greenhouse gas emissions
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in the state, and to publish a triennial greenhouse gas emissions inventory for
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the state. It requires the agency of natural resources to develop guidelines that
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establish information needs and policies in evaluating applications for
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small-scale hydropower, micro-hydro facilities, and pico-hydro facilities.
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The bill proposes to allow the land use panel of the natural resources board
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to adopt rules that accord greater presumptive weight, abbreviated review, and
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higher density siting for homes that meet certain high standards such as the
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Vermont builds greener program–leadership in energy and environmental
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design (LEED) for homes, and similar programs.
The bill proposes to expand the range of possible expenditures from the
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clean energy development fund, and to require establishment of three
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programs: a small renewables grant program, a large onsite renewables
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program, and a farm renewable energy program.
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The bill proposes to require the agency of transportation scoping process to
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include a cost-benefit analysis weighing conservation factors, efficiency
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opportunities, and congestion mitigation strategies. It proposes to require the
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agency of transportation to manage development to meet performance
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standards to reduce vehicular miles traveled and to increase public transit
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ridership. It requires the agency to support employer and local or regional
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government-led conservation, efficiency, rideshare, and bicycle programs. It
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makes it state policy to enhance and expand rail passenger services and freight
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railroad services, and it allows the agency to develop programs to make rail
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transport more available for transporting wood fuel resources and other wood
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products. It requires paving of highway shoulders, unless a particular section
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is highly cost-prohibitive; a category which can cover no more than one
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percent of the shoulders on the highways.
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The bill requires that the residential building energy standards (RBES) be
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amended to meet entry level requirements under the energy star rating system,
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and seeks recommendations with regard to establishing within five years a
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significantly enhanced construction standard for efficiency. It proposes to
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require an advisory committee to make recommendations as to how to enhance
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significantly the commercial building energy standards (CPES).
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It proposes to allow municipalities to establish green building incentives for
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homes and commercial or industrial buildings that meet significantly advanced
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construction standards.
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The bill proposes to establish a state energy office, within the department of
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public service, and to create an advisory body, named the clean energy
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coordinating council, with a mandate to: advise the energy office on the state’s
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overall clean energy program; assist moderate and small systems through the
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review process; develop targets for development within renewable energy
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source sectors and report on progress in meeting these targets; develop and
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evaluate scenarios for tax incentives for the use of less energy; create a plan for
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farm methane project development; develop a plan for significant biofuel
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capacity by 2017, including recommendations for funding sources to finance a
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rebate for retail sales of biodiesel blends; develop stack emissions profiles for a
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range of wood fuels and develop a best available controls catalogue for wood
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energy applications; assemble a collaborative educational team to implement a
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public education campaign to advance conservation; develop school curricula
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at all levels related to renewable energy together with teacher training; assist
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colleges in developing renewable energy educational and training and
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retraining programs; expand research and development efforts regarding
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renewable energy; collaborate with credentialing bodies to ensure Vermont
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programs have the highest levels of certification; work with the workforce
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development council on energy opportunities; and establish educational
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programs for lenders.
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The bill proposes to require development of a state biomass plan, with
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components that include the following: biomass inventories, evaluation of
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technologies, establishment of proposed siting criteria for wood-fired
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electricity generating facilities, consideration of distributed heat and combined
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heat and power, identification of a developer for a regional wood-fired electric
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plant, biomass market development measures such as increased rail transport
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options and biomass use by the state and local governments, strategies to divert
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biomass from municipal waste streams, and establishment of a wood harvest
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and ecosystem monitoring program.
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The bill requires the public service board to adopt rates that absorb certain
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power line costs related to obtaining electricity from farms with biomass
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systems, and to assure the replacement of incandescent light bulbs, with a goal
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of universal residential deployment. It establishes a public purpose charge
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upon electricity consumers, to be deposited into the clean energy development
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fund. It proposes to amend net metering laws by increasing the maximum
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eligible size to 500 kW capacity, except in a service area where the board has
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established a lower maximum capacity. It increases a utility’s cumulative
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obligation from one to five percent of specified peak demand, with an option
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of the board raising that cap to 10 percent.
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It proposes to require the public service board to establish two tools to be
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used in least-cost planning: first, a mechanism to account for the financial risk
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associated with greenhouse gas emissions from various power sources; second,
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a method by which environmental costs shall incorporate a “greenhouse gas
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adder” which shall be an additional dollar amount per ton of gas generated.
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It requires the board to establish a loading order according to which resources
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shall be called upon to meet the state’s needs, with energy efficiency and
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demand response activities being the resources of first resort. It proposes to
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establish a Green Mountain energy incentives program under which a utility
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and a property owner agree that the utility will fund installation of renewable
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energy equipment, and the property owner will pay through utility rates. It
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proposes to amend the section 248 process for reviewing power purchases,
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investment, or construction by requiring that long-term, baseload power
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commitments be for resources at least as clean as a natural
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gas-fired plant using combined cycle turbine technology. The bill proposes to
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update the SPEED program by requiring the creation of a standard contract and
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requiring utilities to enter long-term contracts for renewable energy resources.
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It proposes to make it a goal for the state to have at least eight percent of the
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retail load met by small-scale renewable energy projects by 2015.
The bill proposes to authorize the state treasurer, consistent with other
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investment objectives, to invest in projects that are eligible under the clean
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energy development fund. It proposes to provide that certain renewable energy
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and energy efficiency measures shall not increase the appraised value of
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property. It proposes to establish a residential tax credit for purchase of
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specified efficient appliances and energy systems. It proposes to require the
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property transfer form to certify that the seller has disclosed annual energy
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consumption for the preceding five years or the period of occupancy since
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construction, or has provided a home energy rating within the preceding two
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years. It requires the home weatherization program to fund the installation of
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solar domestic hot water systems on eligible homes, and it increases the
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income level that establishes eligibility for the program.
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The bill proposes to require the secretary of agriculture, food and markets to
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seek federal funds to evaluate the potential for manure management centers for
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regional dairy bio-digesters, and it requires the secretary of natural resources to
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adjust the agency’s regulatory programs that may be preventing the use of food
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processing wastes, whey, and brewers’ waste from being used in farm-based
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methane digesters.
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It proposes to require the commissioner of public service to fund a pilot
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community wind demonstration project. It requires the department of public
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service to convene an advisory committee to develop a Vermont-specific
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residential “efficiency index” to serve as a common standard to measure
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effectively home energy efficiency. It proposes to require the secretary of
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administration to establish a cash bonus program for state employees who
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commute a specified number of miles per year by bicycle.
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AN ACT RELATING TO THE ENERGY INDEPENDENCE AND
RURAL ECONOMIC DEVELOPMENT ACT
It is hereby enacted by the General Assembly of the State of Vermont:
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* * * State Agency Energy Plan * * *
Sec. 1. DESIGNATION OF ACT
This act shall be referred to as the energy independence and rural economic
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development act.
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Sec. 2. 3 V.S.A. § 2291(c) is amended to read:
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(c) The secretary of administration with the cooperation of the
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commissioners of public service and of buildings and general services shall
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develop and oversee the implementation of a state agency energy plan for state
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government. The plan shall be adopted by June 30, 2005, modified as
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necessary, and readopted by the secretary on or before January 15 of each fifth
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year subsequent to 2005. The plan shall accomplish the following objectives
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and requirements:
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(1) To conserve resources, save energy, and reduce pollution. The plan
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shall devise strategies to identify to the greatest extent feasible, all
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opportunities for conservation of resources through environmentally and
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economically sound infrastructure development, purchasing, and fleet
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management, and investments in renewable energy and energy efficiency
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available to the state which are cost effective on a life cycle cost basis.
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(2) To consider state policies and operations that affect energy use.
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(3) To devise a strategy to implement or acquire all prudent
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opportunities and investments in as prompt and efficient a manner as possible.
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(4) To include appropriate provisions for monitoring resource and
energy use and evaluating the impact of measures undertaken.
(5) To identify education, management, and other relevant policy
changes that are a part of the implementation strategy.
(6) To devise a strategy to reduce greenhouse gas emissions. The plan
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shall include steps to encourage more efficient trip planning, to reduce the
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average fuel consumption of the state fleet, and to encourage alternatives to
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solo-commuting state employees for commuting and job-related travel.
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(7) To develop a comprehensive program for the cost-effective
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installation of solar energy equipment on state buildings, pursuant to which the
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department of public service, working in conjunction with the department of
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buildings and general services, shall ensure that solar energy equipment is
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installed, no later than January 1, 2009, on all state buildings, state parking
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facilities, and state-owned swimming pools that are heated with fossil fuels or
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electricity, where feasible.
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(A) The department of buildings and general services shall establish a
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schedule designating when solar energy equipment will be installed on each
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building and facility, with priority given to buildings and facilities where
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installation is most feasible.
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(B) Solar energy equipment shall be installed, where feasible, as part of
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the construction of all state buildings and state parking facilities for which
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construction commences on or after January 1, 2009.
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(C) For purposes of this subdivision, it is feasible to install solar energy
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equipment if adequate space on or adjacent to a building is available, if the
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solar energy equipment is cost-effective, and if funding is available from the
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state or another source.
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(D) Any solar energy equipment installed pursuant to this subdivision
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shall meet applicable standards and requirements imposed by state and local
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permitting authorities.
(E) The department of buildings and general services, in consultation
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with the department of public service, may adopt rules for the purposes of this
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subdivision.
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(F) For purposes of this subdivision, the following terms have the
following meanings:
(i) “Cost-effective” means that the present value of the savings
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generated over the life of the solar energy system, including consideration of
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the value of the energy produced during peak and off-peak demand periods and
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the value of a reliable energy supply not subject to price volatility, exceeds the
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present value cost of the solar energy equipment by not less than 10 percent.
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The present value cost of the solar energy equipment does not include the cost
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of unrelated building components. The department, in making the present
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value assessment, shall obtain interest rates, discount rates, and consumer price
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index figures from the state treasurer, and shall take into consideration air
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emission reduction benefits and the value of stable energy costs.
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(ii) “Solar energy equipment” means equipment the primary
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purpose of which is to provide for the collection, conversion, storage, or
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control of solar energy for the purpose of heat production, electricity
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production, or simultaneous heat and electricity production.
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* * * State Procurement of Biodiesel * * *
Sec. 3. 3 V.S.A. § 2291(g) is added to read:
(g) The commissioner of buildings and general services shall coordinate
state purchasing decisions to assure the use of biodiesel:
(1) for use in heating state buildings that rely upon #2 fuel oil, with a
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goal being to move to a B20 blend as soon as biodiesel supplies are reasonably
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available at prices that are no greater than 10 percent more than the cost of #2
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fuel oil, unless the commissioner determines it appropriate to pay more than 10
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percent more in a particular instance;
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(2) for use in that portion of the state fleet that employs diesel engines,
with the same goal as specified in subdivision (1) of this subsection;
(3) for use in diesel backup generators for electric generators, with the
same goal as specified in subdivision (1) of this subsection.
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* * * VEDA and Renewable Companies * * *
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Sec. 4. 3 V.S.A. § 2471 is amended to read:
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§ 2471. DEPARTMENT OF ECONOMIC DEVELOPMENT
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(a) The department of economic development is created within the agency
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of commerce and community development as the successor to and the
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continuation of the department of development.
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(b) It shall be a priority of the department to assist renewable energy
companies in expanding and moving to the state.
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* * * Vermont Brand * * *
Sec. 5. 3 V.S.A. § 2504(b) is amended to read:
(b) The secretary of the agency of agriculture, food and markets and the
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secretary of the agency of commerce and community development shall
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develop an identification label or labels which may be used to identify
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Vermont goods, services and experiences as quality Vermont products, which
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shall include qualified energy efficiency and renewable energy goods and
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services. Any logo developed pursuant to this section shall be filed with the
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secretary of state who shall register the logo as a trademark pursuant to 9
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V.S.A. chapter 71, subchapter 1. The logo shall remain a registered trademark
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of the program until it is withdrawn by the secretary of the agency of
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agriculture, food and markets and the secretary of the agency of commerce and
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community development.
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* * * Farm Viability Program * * *
Sec. 6. 6 V.S.A. § 4710(a) is amended to read:
(a) The Vermont farm viability enhancement program is a voluntary
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program established in the agency of agriculture, food and markets to provide
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assistance to Vermont farmers to enhance the financial success and long-term
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viability of Vermont agriculture. In administering the program, the secretary
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shall:
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(1) Collaborate with the Vermont housing and conservation board, state
and federal agencies, private entities, and service groups to develop,
coordinate, and provide technical and financial assistance to Vermont farmers.
(2) Include teams of experts to assist farmers in areas such as assessing
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farm resources and potential, diversifying, adopting new technologies,
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improving product quality, developing value-added products, and lowering
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costs of production for Vermont's agricultural sector. The teams may include
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farm business management specialists, University of Vermont extension
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service professionals, veterinarians, and other experts to deliver the
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informational and technological services.
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(3) Encourage agricultural economic development through investing in
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improvements to essential infrastructure and the promotion of farm businesses
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in Vermont.
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(4) Enter into agreements with private organizations or individuals or
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with any agency or instrumentality of the United States or of this state and
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employ technical experts to carry out the purposes of this section.
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(5) Develop a farm renewable energy program, to operate with funding
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from the clean energy development fund established under 10 V.S.A. § 6523,
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to provide financial and technical assistance to Vermont farmers in support of
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development of farm-based renewable energy systems and to promote the
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construction, operation, and evaluation of facilities to convert manure and
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other substrates to useful energy. As part of this program, the secretary shall:
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(A) Establish a strategic plan, performance goals, programs, an
annual work plan, and evaluative measures to implement the program.
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(B) Dedicate adequate staffing to provide business and technical
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assistance for research, planning, and project deployment to aid farmers in
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developing on-farm renewable energy projects.
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(C) Provide assistance to farmers in securing matching grant funding
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through the clean energy development fund and from federal agencies for the
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installation and operation of renewable energy production using farm waste.
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(6) Develop and make available to the public a web-based, methane
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digester cost and benefit calculator that farmers can use to determine the
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economic and environmental costs and benefits of using farm waste to generate
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renewable energy. The calculator shall take into account the avoided costs and
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environmental benefits that may be derived from using byproduct solids as
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bedding material.
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* * * Appliance Efficiency Standards * * *
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Sec. 7. 9 V.S.A. § 2793 is amended to read:
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§ 2793. DEFINITIONS
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As used in this chapter:
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(15) “Automatic commercial ice-maker” means a factory-made
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assembly that is shipped in one or more packages that consists of a condensing
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unit and ice-making section operating as an integrated unit that makes and
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harvests ice cubes and that may store or dispense ice. This term includes
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machines with capacities between and including 50 and 2,500 pounds per 24
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hours.
(16) “Ceiling fan” means a nonportable device that is suspended from a
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ceiling for circulating air via the rotation of fan blades.
(17) “Ceiling fan light kit” means equipment designed to provide light
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from a ceiling fan which can be:
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(A) integral, such that the equipment is hardwired to the ceiling fan;
or
(B) attachable, such that at the time of sale, the equipment is not
physically attached to the ceiling fan, but may be included inside the ceiling
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fan package at the time of sale or sold separately for subsequent attachment to
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the fan.
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(18) “Commercial clothes washer” means a soft mount horizontal- or
vertical-axis clothes washer that:
(A) has a clothes container compartment no greater than 3.5 cubic
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feet in the case of a horizontal-axis product or no greater than 4.0 cubic feet in
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the case of a vertical-axis product; and
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(B) is designed for use by more than one household, such as in
multifamily housing, apartments, or coin laundries.
(19) “Commercial pre-rinse spray valve” means a hand-held device
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designed and marketed for use with commercial dishwashing and ware
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washing equipment and which sprays water on dishes, flatware, and other food
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service items for the purpose of removing food residue prior to their cleaning.
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(20)(A) “Commercial refrigerator, freezer, and refrigerator-freezer”
means self-contained refrigeration equipment that:
(i) is not a consumer product as regulated pursuant to 42 U.S.C.
§ 6291 et seq.;
(ii) operates at a chilled, frozen, combination chilled and frozen,
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or variable temperature for the purpose of storing or merchandising, or storing
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and merchandising any combination of food, beverages, and ice;
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(iii) may have transparent or solid hinged doors, or both, or a
combination of hinged and sliding doors; and
(iv) incorporates in a single cabinet most components involved in
the vapor compression cycle and the refrigerated compartment.
(B) This term does not include:
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(i) products with 85 cubic feet or more of internal volume;
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(ii) walk-in refrigerators or freezers; or
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(iii) consumer products that are federally regulated pursuant to
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42 U.S.C. § 6291 et seq.
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(21) “Digital television adapter” means an electronic product for which
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the sole purpose is the conversion of digital video terrestrial broadcast signals
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to analog National Television System Committee (NTSC) video signals for use
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by an analog device such as a television. This term does not include cable or
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satellite television set-top boxes.
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(22) “Furnace air handler” means the section of the furnace that includes
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the fan, blower, and housing, usually accompanied by a filter, all of which are
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located generally upstream of the burners and heat exchanger. In many
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residential applications, the air handler includes a cooling coil.
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(23) “Illuminated exit sign” means an internally illuminated sign that is
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designed to be permanently fixed in place to identify an exit; consists of an
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electrically powered integral light source that illuminates the legend “EXIT”
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and any directional indicators; and provides contrast between the legend, any
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directional indicators, and the background.
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(24) “Large packaged air-conditioning equipment” means packaged
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air-conditioning equipment that has 240,000 Btu/hour or more of cooling
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capacity and that is built as a package and shipped as a whole to end-user sites.
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(25)(A) “Low voltage dry-type distribution transformer” means a
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distribution transformer that:
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(i) has an input voltage of 600 volts or less;
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(ii) is air-cooled;
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(iii) does not use oil as a coolant; and
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(iv) is rated for operation at a frequency of 60 Hertz.
(B) “Low voltage dry-type distribution transformer” does not
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include:
(i) transformers with multiple voltage taps, with the highest
voltage tap equaling at least 20 percent more than the lowest voltage tap; or
(ii) transformers, such as those commonly known as drive
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transformers, rectifier transformers, auto-transformers, uninterruptible power
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system transformers, impedance transformers, harmonic transformers,
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regulating transformers, sealed and nonventilating transformers, machine tool
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transformers, welding transformers, grounding transformers, or testing
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transformers, that are designed to be used in a special purpose application and
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are unlikely to be used in general purpose applications.
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(26) “Pulldown refrigerator” means a commercial refrigerator
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specifically designed to rapidly reduce all integrated product temperatures
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from 90 degrees F to 38 degrees F over a 12-hour period (i.e., reduction of 4.3
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degrees F per hour) when fully loaded with beverage containers.
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(27) “Torchiere” means a portable electric lamp with a reflective bowl
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that directs light upward onto a ceiling so as to produce indirect illumination
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on the surfaces below.
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(28) “Traffic signal module” means a standard eight-inch (200 mm) or
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12-inch (300 mm) traffic signal indicator, consisting of a light source, a lens,
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and all other parts necessary for operation.
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(29) “Unit heater” means a self-contained, vented fan-type commercial
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space heater that uses natural gas, propane, or fuel oil and that is designed to be
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installed without ducts within a heated space; except that “unit heater” does not
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include direct vent, sealed combustion burner, forced flue heaters, or any
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products covered by federal standards pursuant to 42 U.S.C. § 6291 et seq.
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or any product that is a direct vent, forced flue heater with a sealed combustion
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burner.
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Sec. 8. 9 V.S.A. § 2794(a) is amended to read:
(a) The provisions of this chapter apply to the following types of new
products sold, offered for sale, or installed in the state:
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***
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(6) Automatic commercial ice makers.
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(7) Ceiling fans and ceiling fan light kits.
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(8) Commercial clothes washers.
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(9) Commercial pre-rinse spray valves.
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(10) Commercial refrigerators and freezers.
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(11) Digital television adapters.
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(12) Furnace air handlers.
12
(13) Illuminated exit signs.
13
(14) Large packaged air-conditioning equipment.
14
(15) Low voltage dry-type distribution transformers.
15
(16) Torchieres.
16
(17) Traffic signal modules.
17
(18) Unit heaters.
18
(19) Any other product that may be designated by the commissioner in
19
accordance with section 2797 of this title.
20
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1
Sec. 9. 9 V.S.A. § 2795 is amended to read:
2
§ 2795. EFFICIENCY STANDARDS
3
(a) Not later than June 1, 2009, the commissioner shall adopt rules in
4
accordance with the provisions of 3 V.S.A. chapter 25 establishing minimum
5
efficiency standards for the types of new products set forth in section 2794 of
6
this title. The rules shall provide for the following minimum efficiency
7
standards:
8
***
9
(b) Not later than June 1, 2009, the commissioner shall adopt rules in
10
accordance with the provisions of 3 V.S.A. chapter 25 establishing minimum
11
efficiency standards for the types of new products set forth in subdivisions
12
2794(a)(6)–(18) of this title. The rules shall provide for the following
13
minimum efficiency standards:
14
(1) Automatic commercial ice-makers shall meet the energy efficiency
15
requirements of section 1605.3 of the California Code of Regulations, Title 20:
16
Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations.
17
(2) Ceiling fans shall have:
18
(A) lighting controls separate from fan speed controls;
19
(B) adjustable speed controls (either more than one speed or variable
20
speeds); and
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(C) the capability of reversible fan action, except fans designed for
2
applications where safety standards would be violated by use of the reversible
3
mode.
4
5
(3) Ceiling fan light kits shall:
(A) meet the requirements of the U.S. Environmental Protection
6
Agency’s Energy Star Program for Residential Light Fixtures (Version 3.1)
7
and be packaged with lamps to fill all sockets;
8
9
10
11
(B) be packaged with screw-based compact fluorescent lamps to fill
all sockets, with such lamps meeting the Energy Star Program Requirements
for Compact Fluorescent Lamps (Version 3.0); or
(C) be used and be packaged with light sources, other than compact
12
fluorescent lamps, that meet the minimum efficacy requirements (as measured
13
in lumens per watt) of the Energy Star Program Requirements for Compact
14
Fluorescent Lamps (Version 3.0).
15
(4) Commercial clothes washers shall meet the requirements shown in
16
Table P-3 of section 1605.3 of the California Code of Regulations, Title 20:
17
Division 2, Chapter 4, Article 4 (Appliance Efficiency Regulations that took
18
effect on November 27, 2002).
19
20
(5) Commercial pre-rinse spray valves shall have a flow rate equal to or
less than 1.6 gallons per minute.
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(6) Commercial refrigerators, freezers, and refrigerator-freezers shall
2
meet the minimum efficiency requirements shown in Table A-6 of section
3
1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4,
4
Article 4: Appliance Efficiency Regulations as adopted on December 15, 2004
5
except that pulldown refrigerators with transparent doors shall meet a
6
requirement five percent less stringent than shown in the California
7
regulations.
8
9
10
(7) Digital television adapters shall not use more than one watt in
standby-passive mode and shall not use more than eight watts in “on” mode.
(8) Furnace air handlers shall have an Efficiency Rating (ER) of 2.0 or
11
less except air handlers for oil-fired furnaces with a capacity of less than
12
94,000 Btu hour shall have an ER of 2.3 or less.
13
(9) Illuminated exit signs shall meet the Version 2.0 Energy Star
14
Program performance requirements for illuminated exit signs prescribed by the
15
U.S. Environmental Protection Agency.
16
(10) Large packaged air-conditioning equipment shall meet the Tier 2
17
efficiency levels of the “Minimum Equipment Efficiencies for Unitary
18
Commercial Air Conditioners” or “Minimum Equipment Efficiencies for Heat
19
Pumps,” as appropriate, developed by the Consortium for Energy Efficiency,
20
Boston, MA, as in effect on January 1, 2002.
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1
(11) Low voltage dry-type distribution transformers shall meet the
2
Class 1 efficiency levels for distribution transformers specified in Table 4-2 of
3
the “Guide for Determining Energy Efficiency for Distribution Transformers”
4
published by the National Electrical Manufacturers Association (NEMA
5
Standard TP-1-2002).
6
7
(12) Torchieres shall consume not more than 190 watts and shall not be
capable of operating with lamps that total more than 190 watts.
8
(13) Red and green traffic signal modules shall meet the product
9
specification of the “Energy Star Program Requirements for Traffic Signals”
10
developed by the U.S. Environmental Protection Agency that took effect in
11
February 2001 and shall be installed with compatible, electrically connected
12
signal control interface devices and conflict monitoring systems. The
13
commissioner, in consultation with the secretary of transportation, may exempt
14
specific traffic signals from this requirement upon a determination that
15
Energy- Star-compliant traffic signal modules would compromise safe signal
16
operation.
17
(14) Unit heaters shall be equipped with an intermittent ignition device
18
and shall have either power venting or an automatic flue damper.
19
Sec. 10. 9 V.S.A. § 2796 is amended to read:
20
§ 2796. IMPLEMENTATION
21
(a) No new medium voltage dry-type distribution transformer,
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1
state-regulated incandescent reflector lamp, or single-voltage external AC to
2
DC power supply manufactured on or after January 1, 2008 may be sold or
3
offered for sale in the state unless the efficiency of the new product meets or
4
exceeds the efficiency standards set forth in the rules adopted pursuant to
5
section 2795 of this title.
6
(b) On or after January 1, 2009, no new metal halide lamp fixture may be
7
sold or offered for sale in the state unless the efficiency of the new product
8
meets or exceeds the efficiency standards set forth in the rules adopted
9
pursuant to section 2795 of this title. On or after January 1, 2010, no new
10
ceiling fan, ceiling fan light kit, commercial clothes washer, commercial pre-
11
rinse spray valve, digital television adapter, illuminated exit sign, low voltage
12
dry-type distribution transformer, torchiere, traffic signal module, or unit
13
heater may be sold or offered for sale in the state unless the efficiency of the
14
new product meets or exceeds the efficiency standards set forth in the rules
15
adopted pursuant to section 2795 of this title. On or after January 1, 2011, no
16
new automatic commercial ice maker or no new commercial refrigerator or
17
freezer or large packaged air-conditioning equipment may be sold or offered
18
for sale in the state unless the efficiency of the new product meets or exceeds
19
the efficiency standards set forth in the rules adopted pursuant to section 2795
20
of this title.
21
***
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(d) One year after the date upon which the sale or offering for sale of
2
certain products becomes subject to the requirements of subsection (a) or (b) of
3
this section, no new products may be installed for compensation in the state
4
unless the efficiency of a new product meets or exceeds the efficiency
5
standards set forth in the rules adopted pursuant to section 2795 of this title.
6
(e) Owners and operators of commercial and industrial facilities shall be
7
allowed to utilize appliances and equipment that do not meet the requirements
8
of section 2795 of this title for the repair or replacement of existing equipment,
9
provided that the equipment being repaired or replaced was acquired before the
10
implementation date determined according to the provisions of this section. At
11
the discretion of the owners and operators, these appliances and equipment
12
may be used at any time before or after the effective date of those
13
requirements.
14
(f) Notwithstanding the dates set out in this section, implementation of the
15
standard for an individual product of the type set forth in subdivisions
16
2794(a)(6)–(18) of this title shall be suspended until the passage of legislation
17
or the adoption of administrative rules that require equivalent or higher
18
standards for that product in states within New England, including Vermont,
19
with a total population of at least four million people.
20
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Sec. 11. 9 V.S.A. § 2797 is amended to read:
2
§ 2797. REVISED STANDARDS
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The commissioner may shall monitor efficiency advances in the
4
development of products listed in this chapter and of other energy-consuming
5
products that may appropriately be subjected to standards under this chapter,
6
and shall adopt rules, in accordance with the provisions of 3 V.S.A. chapter 25,
7
to revise efficiency standards for the products listed in section 2794 of this
8
title, in order to assure that the standards continue to reflect the state of the art
9
in affordable conservation technology and to make the standards conform to at
10
least as aggressive in reducing energy consumption as are the standards in
11
effect in other states, where to do so is in the interests of the electrical energy
12
consumers of the state. In considering increased standards, the commissioner
13
shall set efficiency standards upon a determination that increased efficiency
14
standards would serve to promote energy conservation in the state and would
15
be cost-effective for consumers who purchase and use those products. No
16
increased efficiency standards shall become effective within one year
17
following the adoption of any amended rules establishing those increased
18
efficiency standards. The commissioner may apply for a waiver of federal
19
preemption in accordance with federal procedures (42 U.S.C. § 6297(d)) for
20
state efficiency standards for any product regulated by the federal government.
21
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* * * VEDA Eligibility * * *
Sec. 12. 10 V.S.A. § 212(6) is amended to read:
3
(6) "Eligible facility" or "eligible project" means any industrial,
4
commercial, or agricultural enterprise or endeavor approved by the authority
5
that meets the criteria established in the Vermont sustainable jobs strategy
6
adopted by the governor under section 280b of this title, including land and
7
rights in land, air, or water, buildings, structures, machinery, and equipment of
8
such eligible facilities or eligible projects, except that an eligible facility or
9
project shall not include the portion of an enterprise or endeavor relating to
10
other than the energy efficiency and renewable energy opportunities related to
11
the sale of goods at retail where such goods are manufactured primarily out of
12
state, and except further that an eligible facility or project shall not include the
13
portion of an enterprise or endeavor relating to other than the energy efficiency
14
and renewable energy opportunities related to housing. Such enterprises or
15
endeavors may include:
16
(A) quarrying, mining, logging, manufacturing, processing, including
17
the operation of sawmills and the further processing of agricultural and forest
18
products, assembling, or warehousing of goods or materials for sale or
19
distribution or the maintenance of safety standards in connection therewith;
20
***
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(M) qualifying Sustainably Priced Energy Enterprise Development
2
(SPEED) resources or nonqualifying SPEED resources, as defined in 30
3
V.S.A. § 8002; or
4
(N) renewable energy and energy efficiency businesses, including:
5
(i) construction, installation, engineering, sales, and systems
6
management components of those businesses, together with any related
7
on-the-job training;
8
(ii) inventors and entrepreneurs who are engaged in bringing
9
energy efficiency or renewable energy-related technology advances from
10
prototype stage to commercialization; and
11
(iii) those renewable energy businesses that are attempting to
12
expand operations or services within the state or to move to the state, or both;
13
or
14
(O) any combination of the foregoing activities, uses, or purposes.
15
An eligible facility may include structures, appurtenances incidental to the
16
foregoing such as utility lines, storage accommodations, offices, dependent
17
care facilities, or transportation facilities.
18
* * * Air Quality * * *
19
Sec. 13. 10 V.S.A. § 552 is amended to read:
20
§ 552. DEFINITIONS
21
As used in this chapter:
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***
2
(11) “Greenhouse gas” means any chemical or physical substance that is
3
emitted into the air and that the secretary may reasonably anticipate to cause or
4
contribute to climate change, including, but not limited to, carbon dioxide,
5
methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur
6
hexafluoride.
7
Sec. 14. 10 V.S.A. § 580 is added to read:
8
§ 580. GREENHOUSE GAS REGISTRY
9
(a) The secretary shall work, in conjunction with other states or a regional
10
consortium, to establish a regional greenhouse gas registry for greenhouse gas
11
emissions and a regional reporting system.
12
(b) By no later than October 15, 2008, the secretary shall develop rules to
13
require the reporting and verification of statewide greenhouse gas emissions
14
and to monitor and enforce compliance with this program. The requirements
15
shall include provisions for owner reporting according to an accessible and
16
easy-to-understand format that will yield information with regard to all
17
greenhouse gas emissions in a type and format that a regional registry can
18
accommodate. In addition, the rules shall:
19
(1) Require the monitoring and annual reporting of greenhouse gas
20
emissions from all sources beginning with the sources or categories of sources
21
that contribute the most to statewide emissions.
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1
(2) Account for greenhouse gas emissions from all electricity consumed
2
in the state, including transmission and distribution line losses from electricity
3
generated within the state or imported from outside the state. This requirement
4
applies to publicly-owned electric utilities.
5
6
7
8
9
(3) Ensure rigorous and consistent accounting of emissions, and provide
reporting tools and formats to ensure collection of necessary data.
(4) Ensure that major greenhouse gas emission sources maintain
comprehensive records of all reported greenhouse gas emissions.
(c) Not later than July 1, 2009, and triennially thereafter, the secretary shall
10
publish a state greenhouse gas emissions inventory that includes
11
comprehensive estimates of the quantity of greenhouse gas emissions in the
12
state for the last three years for which data are available.
13
(d) The secretary may adopt rules to implement the provisions of this
14
section and shall review existing and proposed international, federal, and state
15
greenhouse gas emission reporting programs and make reasonable efforts to
16
promote consistency among the programs established pursuant to this and
17
other programs, and to streamline reporting requirements on greenhouse gas
18
emission sources. Nothing in this section shall limit a state agency from
19
adopting any rule within its authority.
20
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* * * ANR Regulation of Dams * * *
Sec. 15. 10 V.S.A. § 1083(c) is added to read:
(c) Regardless of whether it is the agency having jurisdiction with regard to
4
a particular application subject to this chapter, the agency of natural resources
5
shall develop guidelines that establish its information needs and its policies and
6
practices in evaluating applications that are submitted to it or to another agency
7
having jurisdiction under this chapter. These guidelines shall address the
8
agency’s information needs, policies, and practices at least with regard to
9
electricity generating operations that are classified as small scale hydropower
10
(uses generating less than 5 MW), micro-hydro (uses generating less than 100
11
kW), and pico-hydro (uses generating less than 5kW).
12
* * * Act 250 * * *
13
Sec. 16. 10 V.S.A. § 6025(b) is amended to read:
14
(b) The land use panel may adopt substantive rules, in accordance with the
15
provisions of chapter 25 of Title 3, that interpret and carry out the provisions of
16
this chapter that pertain to land use regulated under section 6086 of this title.
17
These rules shall include provisions that establish criteria under which
18
applications for permits under this chapter may be classified in terms of
19
complexity and significance of impact under the standards of subsection
20
6086(a) of this chapter. In accordance with that classification the rules may:
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(1) provide for simplified or less stringent procedures than are otherwise
required under sections 6083, 6084, and 6085 of this chapter; and
3
(2) provide for the filing of notices instead of applications for the
4
permits that would otherwise be required under section 6081 of this chapter;
5
and
6
(3) provide a procedure by which a district commission may authorize a
7
district coordinator to issue a permit that the district commission has
8
determined under land use panel rules is a minor application with no undue
9
adverse impact;
10
(4) provide for presumptive weight or reduced review under this
11
chapter, or both, and allow higher density siting for homes which meet
12
standards established in the Vermont builds greener program–leadership in
13
energy and environmental design (LEED) for homes, and similar programs that
14
encourage the use of low embodied energy in construction materials, planned
15
neighborhood developments that allow for reduced use of fuel for
16
transportation, and increased use of renewable technologies.
17
18
19
20
21
* * * Clean Energy Development Fund * * *
Sec. 17. 10 V.S.A. § 6523(d) and (e) are amended to read:
(d) Expenditures authorized.
(1) This fund shall be administered by the department of public service,
with the advice of the clean energy coordinating council established under 30
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1
V.S.A. § 1 to facilitate the development and implementation of clean energy
2
resources, and may provide funding in the form of grants, loan guarantees, or
3
low-interest loans for eligible activities.
4
(A) The program shall include two distinct grant programs: a “small
5
renewable energy program” that provides upfront cash rebates on a first-come,
6
first-served basis to assist homeowners in buying down the capital cost of
7
smaller, residential-sized solar, hydro, and wind systems; and a “large onsite
8
renewable energy program” to provide grants on a competitive basis to support
9
renewable projects of greater than 20 kW in capacity, in order to expand the
10
production and use of distributed renewable technologies in multi-family
11
housing developments, community-wide energy projects, and for the
12
commercial and industrial sectors. The small renewable energy program shall
13
publicize its advantages for use in new home construction and multi-family,
14
low income housing, and program grant sizes shall not exceed 40 percent of
15
the project costs. The large onsite renewable energy program shall provide
16
grants that do not exceed 25 percent of project costs.
17
(B) The program shall include a farm renewable energy program,
18
in order to provide grants or low interest loans to agricultural producers, rural
19
small businesses, and rural cooperatives for the installation and evaluation of
20
on-farm or community facilities to convert animal manure and other organic
21
substrates into a useful form of energy. As part of this program, there shall be
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1
established a methane digester revolving loan program to help supplement the
2
funds needed for farms to install methane digesters.
3
4
5
***
(4) Projects for funding shall not exceed 100 kW capacity in size, per
project, but may include the following:
6
(A) projects that will sell power in commercial quantities;
7
(B) among those projects that will sell power in commercial
8
quantities, funding priority will be given to those projects that commit to sell
9
power to Vermont utilities on favorable terms;
10
(C) projects to benefit publicly owned or leased buildings;
11
(D) renewable energy projects on farms, which may include any or
12
all costs incurred to upgrade to a three-phase line to serve a system on a farm;
13
(E) small scale renewable energy in Vermont residences and
14
15
businesses;
(F) pilot projects and public-private partnership projects under the
16
agricultural economic development special account established under 6 V.S.A.
17
§ 4710(g) to harvest biomass, convert biomass to energy, or produce liquid
18
biofuel and agricultural byproducts, which shall include: biodiesel,
19
biolubricants, and livestock feed from oil-seed crops, algae, waste vegetable
20
oil, and cellulosic ethanol;
21
(G) until December 31, 2008 only, super-efficient buildings; and
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(H) effective projects that are not likely to be established in the
absence of funding under the program;
3
(I) biogas digesters, micro-hydro facilities, solar electric systems,
4
commercial solar water heating systems, pellet systems, combined heat and
5
power projects, and wind projects;
6
(J) research, development, and demonstration of model private sector
7
projects that develop biofuel feedstocks with a high energy return, such as
8
algae and grasses;
9
(K) grants to match available federal funds or otherwise:
10
11
(i) to fund research, development, and demonstration projects in
biomass, biofuels, hydropower, solar, and other technologies;
12
(ii) to include the evaluation and development of technologies that
13
can be effective at the Vermont scale, including small-scale local and
14
distributed power opportunities, such as economically-viable farm methane
15
technology applications, pursuant to which tests are conducted to optimize the
16
capabilities of small-scale, modular-anaerobic digester technology, systems
17
that supplement manure with forage crops and wastes, and central digesters;
18
and
19
(iii) to match resources that support incubator systems and
20
entrepreneurial training to help new ideas and inventions make the transition
21
into viable business models.
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***
(e) Management of fund.
3
(1)(A) There is created the clean energy development fund advisory
4
committee, which shall consist of the commissioner of public service, or a
5
designee, and the chairs of the house and senate committees on natural
6
resources and energy, or their designees.
7
(B) There is created the clean energy development fund investment
8
committee, which shall consist of seven persons appointed by the clean energy
9
development fund advisory committee.
10
11
12
13
14
(2) The commissioner of public service, in consultation with the clean
energy coordinating council established under 30 V.S.A. § 1, shall:
(A) by no later than October 30, 2006:
(i) develop a five year strategic plan and an annual program plan,
both of which shall be developed with input from a public stakeholder process;
15
(ii) develop an annual operating budget;
16
(iii) develop proposed program designs to facilitate clean energy
17
market and project development (including use of financial assistance,
18
investments, competitive solicitations, technical assistance, and other incentive
19
programs and strategies); and
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(iv) submit the plans, budget, and program designs to the clean
2
energy development fund advisory committee for review and to the clean
3
energy development fund investment committee for approval;
4
5
6
(B) adopt or amend rules by no later than January 1, 2007 to carry
out the program approved under this subdivision;
(C) explore pursuing joint investments in clean energy projects with
7
the Vermont economic development authority (VEDA) and other state funds
8
and private investors to increase the effectiveness of the clean energy
9
development fund;
10
(D) acting jointly with the members of the clean energy development
11
fund investment committee, make decisions with respect to specific grants and
12
investments, after the plans, budget, and program designs have been approved
13
by the clean energy development fund investment committee. This subdivision
14
(D) shall be repealed upon the effective date of rules adopted under
15
subdivision (2)(B) of this subsection.
16
(3) During fiscal years after FY 2006, up to five percent of amounts
17
appropriated to the public service department from the fund may be used for
18
administrative costs related to the clean energy development fund and after FY
19
2007, another five percent of amounts appropriated to the public service
20
department from the fund not to exceed $300,000.00 in any fiscal year shall be
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1
transferred to the secretary of the agency of agriculture, food, and markets for
2
agricultural and farm-based energy project development activities.
3
4
5
* * * Agency of Transportation * * *
Sec. 18. 19 V.S.A. § 10b(a) is amended to read:
(a) The agency shall be the responsible agency of the state for the
6
development of transportation policy. It shall develop a mission statement to
7
reflect state transportation policy encompassing all modes of transportation,
8
developing and adhering to performance standards which address the need for
9
transportation projects that will improve the state's economic infrastructure, as
10
well as the use of resources in efficient, coordinated, cost effective, and
11
environmentally sound ways. The overall scoping of agency projects shall
12
include a cost-benefit analysis weighing conservation factors, efficiency
13
opportunities, and congestion mitigation strategies. Transportation
14
development shall be managed and executed toward specific performance
15
standards to reduce vehicular miles traveled and toward increasing public
16
transportation ridership. The agency shall coordinate education efforts with
17
those of the clean energy coordinating council established under 30 V.S.A. § 1
18
and those of local and regional planning entities to address conservation and
19
efficiency opportunities and practices in local and regional transportation, and
20
to support employer or local or regional government-led conservation,
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1
efficiency, rideshare, and bicycle programs and other innovative transportation
2
advances, especially employer-based incentives.
3
Sec. 19. 19 V.S.A. § 10e is amended to read:
4
§ 10e. STATEMENT OF POLICY; RAILROADS
5
(a) The general assembly recognizes that rail service, both passenger and
6
freight, is an integral part of the state's transportation network. Accordingly, it
7
is hereby declared to be the policy of the state of Vermont:
8
9
(1) to provide opportunities for enhanced and expanded rail passenger
services by cooperating with the federal government, other states, and
10
providers of those services, with priority to be given to the services likely to
11
complement Vermont's economic development efforts and meet the needs of
12
the traveling public as those needs increase;
13
(2) to preserve and modernize for continued, enhanced, and expanded
14
freight railroad service those railroad lines, both within the state of Vermont
15
and extending into adjoining states, which directly affect the economy of the
16
state or provide connections to other railroad lines which directly affect the
17
economy of the state;
18
(3) in those cases where continuation of freight railroad service is not
19
economically feasible under present conditions, to preserve established railroad
20
rights-of-way for future reactivation of railroad service, trail corridors, and
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1
other public purposes not inconsistent with future reactivation of railroad
2
service; and
3
4
(4) to seek federal aid for rail projects that implement this section's
policy goals.
5
(b) To complement the regular maintenance efforts of the lessee/operators
6
of state-owned railroads, taking into account each line's long-term importance
7
to the state's transportation network, economic development, the resources
8
available to the lessee/operator and relevant provisions of leases and other
9
agreements, the agency may develop programs to assist in major rehabilitation
10
or replacement of obsolete bridges, structures, rails, and other fixtures, and
11
programs to make rail services more available for transporting wood fuel
12
resources and other wood products.
13
***
14
Sec. 20. 19 V.S.A. § 2310 is amended to read:
15
§ 2310. PAVEMENT OF HIGHWAY SHOULDERS
16
(a) Notwithstanding the provisions of section 10c of this title, it is the
17
policy of the state to provide paved shoulders on major state highways with the
18
intent to develop an integrated bicycle route system and to make it easier and
19
safer for pedestrian traffic. This shall not apply to the interstate highway and
20
certain other limited access highways.
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(b) Any construction, or reconstruction, including upgrading and
2
resurfacing projects on these highways, shall include paved shoulders unless
3
the agency deems certain sections to be cost prohibitive highly
4
cost-prohibitive. No more than one percent of the shoulders on these highways
5
may be categorized as sections where these upgrades are deemed highly
6
cost-prohibitive.
7
8
9
* * * Energy Standards for Buildings * * *
Sec. 21. 21 V.S.A. § 266(c) is amended to read:
(c) Revision and interpretation of energy standards. On or about January 1,
10
1999, and at least every three years thereafter, the commissioner of public
11
service shall amend and update the RBES, by means of administrative rules
12
adopted in accordance with 3 V.S.A. chapter 25. The department of public
13
service shall provide technical assistance and expert advice to the
14
commissioner in the interpretation of the RBES and in the formulation of
15
specific proposals for amending the RBES. At least a year prior to final
16
adoption of each required revision of the RBES, the department of public
17
service shall convene an advisory committee to include one or more mortgage
18
lenders, builders, building designers, utility representatives, and other persons
19
with experience and expertise, such as consumer advocates and energy
20
conservation experts. The advisory committee may provide the commissioner
21
with additional recommendations for revision of the RBES.
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***
2
(7) By no later than July 1, 2010, the commissioner of public service,
3
with the advice of an advisory committee established under this subsection,
4
shall amend the RBES to a form that would meet entry level requirements
5
established under the energy star rating system. These amendments shall
6
include requirements that the standards will increase incrementally over the
7
succeeding five years in the level of efficiency required, as measured by the
8
home energy rating score, while balancing affordability for working
9
Vermonters. The advisory committee shall make recommendations with
10
regard to the advisability of establishing within five years a significantly
11
enhanced construction standard for efficiency, such as that described in
12
Vermont builds green–leadership in energy and environmental design (LEED),
13
which address issues such as home size, renewable energy sources, compact
14
development, and proximity to services; in which points are awarded for
15
factors such as minimizing energy in transporting materials, use of local
16
resources, and embodied energy; and which incorporate a comprehensive
17
review of ways to foster structures and living patterns that use less energy.
18
Sec. 22. 21 V.S.A. § 268(c)(4) is added to read:
19
(4) An advisory committee convened under this subsection shall make
20
recommendations with regard to the advisability of establishing within five
21
years a significantly enhanced CBES standard, such as that described in
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Vermont builds green–leadership in energy and environmental design (LEED),
2
which address issues such as building size, renewable energy sources, compact
3
development, and proximity to services; in which points are awarded for
4
factors such as minimizing energy in transporting materials, use of local
5
resources, and embodied energy; and which incorporate a comprehensive
6
review of ways to foster structures and living patterns that use less energy.
7
* * * Zoning * * *
8
Sec. 23. 24 V.S.A. § 4414 is amended to read:
9
§ 4414. ZONING; PERMISSIBLE TYPES OF REGULATIONS
10
Any of the following types of regulations may be adopted by a municipality
11
in its bylaws in conformance with the plan and for the purposes established in
12
section 4302 of this title.
13
14
***
(14) Green building incentives. A municipality may encourage the use
15
of low embodied energy in construction materials, planned neighborhood
16
developments that allow for reduced use of fuel for transportation, and
17
increased use of renewable technology by providing for reduced permit review
18
or increased density, or both, for:
19
(A) homes that meet standards established in the Vermont builds
20
greener program–leadership in energy and environmental design (LEED) for
21
homes, or similar programs;
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1
(B) commercial or industrial buildings that meet significantly
2
advanced construction standards for efficiency, as described in LEED, or other
3
applicable advanced construction efficiency standards that address issues such
4
as building size, use of renewable energy sources, compact development
5
patterns, proximity to services, minimizing energy in transporting materials,
6
use of local resources, use of embodied energy, and the use of comprehensive
7
analytical tools that will result in structures and usage patterns that require less
8
energy.
9
* * * Department of Public Service * * *
10
Sec. 24. 30 V.S.A. § 1 is amended to read:
11
§ 1. COMPOSITION OF DEPARTMENT
12
(a) The department of public service shall consist of the commissioner of
13
public service, a director for regulated utility planning, a director for public
14
advocacy, a director for energy efficiency, a state energy office, and such other
15
persons as the commissioner considers necessary to conduct the business of the
16
department.
17
***
18
(d) The state energy office shall be the lead agency and shall coordinate
19
activities by other state agencies in implementing the Vermont clean energy
20
program, pursuant to which all involved state agencies shall actively promote
21
and support renewable energy development, market Vermont as a center for
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innovative renewable energy businesses, and invest in Vermont-appropriate
2
renewable energy research and development.
3
(1) The state energy office shall be advised by a clean energy
4
coordinating council, which shall consist of the following: the director for
5
energy efficiency; an air expert representing the agency of natural resources
6
and appointed by the secretary of natural resources; a representative of the
7
agency of commerce, appointed by the agency secretary; an energy expert
8
appointed by the speaker of the house; an energy expert appointed by the
9
committee on committees; the chair of the natural resources board, or a
10
designee; a manufacturer of renewable energy equipment appointed by the
11
governor; a representative of Vermont environmental groups appointed by the
12
governor; a representative of the state’s universities appointed by the governor;
13
a representative of the Vermont law school appointed by the dean; and a
14
representative of a citizens’ group that is involved in clean energy
15
development, appointed by the governor.
16
(2) The clean energy coordinating council shall advise the energy office
17
regarding the design, budgets, objectives, goals, administration, and evaluation
18
of the state’s overall clean energy program, which shall include the ways that
19
the state’s regulators and the various state entities that provide funding and
20
economic incentives can work together and in support of local efforts on
21
matters that relate to the wise use of forests, biomass, hydropower, wind, and
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solar power, the development of biofuels and other renewable sources of
2
energy, and the cost-effective use of efficiency measures. The office of the
3
governor and state agencies working on multi-state and regional efforts to
4
advance clean energy development and reduce greenhouse gas emissions shall
5
inform the council about these efforts and shall consider input from the council
6
for those efforts.
7
(3) The clean energy coordinating council shall assist moderate- and
8
small-scale farm, forest, business, and household-scale systems through
9
interagency review processes.
10
(4) The clean energy coordinating council shall endeavor to attract
11
philanthropic, federal, state, and private sector investment in the Vermont
12
renewable energy sector.
13
(5) The state energy office, with the advice of the clean energy
14
coordinating council and in conjunction with involved state entities, shall
15
develop short-term and long-term goals and targets for renewable energy
16
development in each of the different energy source sectors, and shall review
17
and report on progress, annually, in conjunction with each involved state
18
entity, which reports shall be combined into an annual assessment of the
19
overall state effort in clean energy development.
20
(6) The clean energy coordinating council shall establish a working
21
group to evaluate alternative scenarios for carbon taxation as well as other
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1
possible funding mechanisms to advance the use of renewable energy and
2
energy efficiency measures. In this process, the working group shall consider
3
economic, environmental, health, and social costs, and the risks and benefits of
4
alternative strategies, including least-cost options, and shall solicit and
5
consider public comment relating to statutory, administrative, or policy
6
recommendations.
7
(A) In developing its own recommendations, the group shall consider
8
Oregon’s business energy tax credit, which covers investments in energy
9
conservation, recycling, renewable energy systems, and
10
less-polluting transportation fuels. The recommendations should be developed
11
in anticipation that any business may qualify, including manufacturing plants,
12
stores, offices, apartment buildings, farms, and transportation services.
13
Consideration shall be given to the following:
14
(i) Tax credits that cover loan fees and permit costs for authorized
15
projects, as well as costs directly related to net-metered projects, including
16
equipment costs, engineering and design fees, materials, supplies and
17
installation costs.
18
(ii) A pass-through option, in which a project owner chooses to
19
transfer a tax credit to a pass-through partner in return for a lump-sum cash
20
payment covering the net present value of the tax credit upon completion of the
21
project. The partner who is the transferee of the tax credits shall be eligible to
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use the credits, in addition to other credits for which the partner may be
2
eligible.
3
(iii) Tax credits that cover projects that use solar, wind, hydro,
4
geothermal, biomass, or fuel cells that use renewable fuels, to produce energy,
5
displace energy, or reclaim energy from waste; possibly all conditioned upon
6
the renewable resource project or projects replacing at least 10 percent of the
7
electricity, gas, or oil previously used or that would be used in the absence of
8
the project or projects in question.
9
(iv) Tax credits for general retrofit projects, lighting retrofit
10
projects, and weatherization projects for rental property, as well as for new
11
construction projects, including energy efficiency and lighting. Within this
12
category, consideration shall be given to: requiring that retrofit projects be at
13
least 10 percent more energy efficient than the existing installation; requiring
14
lighting retrofits be at least 25 percent more efficient than the existing lighting;
15
requiring, with regard to new buildings, that all measures reduce energy use by
16
at least 10 percent compared to similar buildings that meet the minimum
17
standards established in the state’s residential building energy standards
18
(RBES) and the state’s commercial building energy standards (CBES).
19
(v) Tax credits for sustainable, high performance buildings.
20
(B) Based upon this work, the council shall recommend to the
21
governor and general assembly statutory and administrative goals, changes,
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policy measures and other recommendations to be carried out by state and
2
local governments, businesses, nonprofit organizations or residents, to advance
3
the use of renewable energy and energy efficiency measures, including
4
appropriate recommendations with regard to the establishment of a platform
5
for a fair and equitable carbon tax structure in the state.
6
(7) The clean energy coordinating council shall develop an integrated
7
and coordinated plan to create a favorable, clear, and consistent regulatory
8
environment for farm methane development, which shall be based upon a
9
review of state policies and regulations affecting farm methane projects,
10
including utility interconnection requirements and fees, and the process for
11
obtaining certificates of public good under section 248 of this title. The
12
council shall disseminate information on this subject through existing systems
13
by the use of demonstrations, open houses, press releases, and educational
14
programs.
15
(8) The clean energy coordinating council shall collaborate with the
16
agency of agriculture, food and markets and the private sector to develop an
17
action plan for the development of significant biofuel capacity from high value
18
feedstock by 2017.
19
(A) As part of this process, the council shall report to the house and
20
senate committees on natural resources and energy, the house committee on
21
ways and means, and the senate committee on finance, by no later than January
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1
15, 2009, with recommendations for funding sources to finance a program
2
pursuant to which retail sellers of biodiesel blend would be entitled to a rebate
3
of $0.05 for each gallon of biodiesel blend sold at retail in Vermont and
4
delivered in Vermont during the reporting period.
5
(B) As used in this subdivision:
(i) “Biodiesel blend” means a blend of biodiesel fuel and number
6
7
two home heating oil that contains at least ten percent biodiesel fuel by
8
volume.
9
(ii) “Biodiesel fuel” means a renewable, biodegradable, mono
10
alkyl ester combustible liquid fuel derived from vegetable oil or animal fat
11
which meets the American Society for Testing and Materials (ASTM)
12
specification D6751-02 for Biodiesel Fuel (B100) Blend Stock for Distillate
13
Fuel.
14
(9) The clean energy coordinating council shall collaborate with the
15
agency of natural resources and the private sector to determine the stack
16
emissions profiles for the range of wood fuels available for use in the state,
17
including wood chips with bark on and bark off, wood and agricultural pellets,
18
clean construction and demolition residues, and other segregated waste stream
19
materials, and shall develop or procure a “best available controls” catalogue
20
for the range of expected wood energy applications, especially those of a small
21
scale.
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(10) The state energy office and the clean energy coordinating council
2
shall assemble a collaborative education team, which shall include state
3
officials and leading businesses in energy efficiency and renewable energy
4
generation to develop and implement a statewide public education campaign to
5
advance conservation. As part of this effort:
6
(A) The collaborative education team shall engage a Vermont-based
7
public relations firm to create public service and educational announcements
8
aimed at strongly promoting action on conservation and explaining the benefits
9
of conservation.
10
(B) The team shall establish a media-design competition for Vermont
11
high schools, pursuant to which students compete in developing public service
12
announcements and video clips promoting conservation, with winning teams
13
receiving college scholarship funds.
14
15
(C) The public education campaign shall:
(i) celebrate historic Vermont values and build upon the idea of
16
energy conservation as constituting as one of the rational uses of resources, an
17
economic concept;
18
(ii) emphasize the fact that conservation decisions are personal
19
and provide practical ways that households can identify strategies, set goals,
20
and measure the value of their choices;
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(iii) encourage consumer responsibility, emphasize consumer
2
choice, and educate Vermonters about conservation and efficiency alternatives
3
and the best ways to save energy over time;
4
5
6
(iv) highlight and reward, if possible, the leadership of
communities and grassroots efforts throughout the state;
(v) celebrate community successes that range from shutting down
7
idling school buses to townwide campaigns to replace light bulbs or expand
8
purchasing of local products and services;
9
(vi) be developed in coordination with education efforts of the
10
agency of transportation so as to address conservation and efficiency
11
opportunities and practices in local and regional transportation;
12
(vii) provide information on electric, thermal, and transportation
13
efficiencies; educate with regard to green building, solar, wind, geothermal,
14
biomass, and biofuels opportunities in the state; and promote and support
15
community energy planning initiatives;
16
(viii) promote understanding of the merits and positive
17
environmental impacts gained through the use of renewable energy options,
18
provide information on best practices and products, address common
19
misconceptions, and inspire Vermonters with regard to the opportunities for
20
local and household energy solutions;
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(ix) construct and market the Vermont renewable energy brand in
2
a manner that shows the compelling direct and personal economic and
3
environmental benefits for individual consumers, businesses, institutions, the
4
government, and all other stakeholders.
5
6
(11) The state energy office and the clean energy coordinating council in
conjunction with the collaborative education team shall:
7
(A) develop elementary, middle, and high school science curricula
8
related to renewable energy and integrate the new curricula within the next
9
three years;
10
(B) develop renewable energy teacher training and supplemental
11
educational materials to use in training teachers with regard to renewable
12
energy;
13
14
15
(C) encourage and assist local renewable energy businesses,
universities, colleges, and technical schools in:
(i) developing course offerings and degree programs, job training
16
and retraining, including possibly a job training and retraining center at the
17
Vermont technical college or other appropriate technical education center, that
18
include project feasibility analysis and that focus upon energy-specific design,
19
manufacturing, and installation skills, and upon training service technicians
20
and engineers;
21
(ii) expanding research and development efforts:
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(I) toward the commercialization of biofuels, biomass,
2
cellulosic resources, wind, solar, hydropower, and other renewable technology
3
opportunities;
4
(II) to include the evaluation and development of technologies
5
that can be effective at the Vermont scale, including small-scale local and
6
distributed power opportunities, such as economically viable farm methane
7
technology applications, pursuant to which tests are conducted to optimize the
8
capabilities of small-scale, modular-anaerobic digester technology, systems
9
that supplement manure with forage crops and wastes, and central digesters;
10
(III) in a manner whereby funding for research and
11
development are matched with resources that support incubator systems and
12
entrepreneurial training to help new ideas and inventions make the transition
13
into viable business models;
14
(D) work in collaboration with the North American board of certified
15
energy practitioners, the building performance institute, and other credentialing
16
bodies, to ensure that all Vermont educational programs have the highest
17
quality credentialing and certification so that Vermont programs become a
18
magnet, drawing students from other states, as well;
19
(E) work in collaboration with the workforce development council to
20
conduct modeling of the energy sector workforce and opportunities, and to
21
lead in the development of workforce education and training with regard to
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1
on-farm and other distributed forms of energy production, while assuring that
2
proper emphasis is given to environmental science as well as to technical
3
education.
4
(12) The clean energy coordinating council shall establish educational
5
programs for lenders with respect to energy efficiency and sustainability
6
factors, and regarding energy star and leadership in energy and environmental
7
design (LEED) programs, and shall work with lending institutions to assure
8
optimal industry participation in these programs.
9
Sec. 25. 30 V.S.A. § 202e is added to read:
10
11
§ 202e. STATE BIOMASS PLAN
(a) The agency of agriculture, food and markets agency of natural
12
resources, and department of public service jointly shall prepare a
13
comprehensive state biomass plan, covering at least a 20-year period. The plan
14
shall seek to implement the state energy policy set forth in section 202a of this
15
title. The plan shall include:
16
(1) an inventory of biomass quantity, quality, and location;
17
(2) an evaluation of viable technologies for the state;
18
(3) a determination of the estimated net energy contribution and highest
19
value for biomass resources, giving due consideration to biomass access,
20
regulatory requirements, and water quality considerations and regulations;
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(4) proposed siting criteria for wood-fired electricity generating
2
facilities that give due regard to the existence of available, properly zoned
3
property, and its location relative to the strategic needs of the transmission and
4
distribution grid and relative to appropriate transportation infrastructure;
5
(5) strategies to assure that, during the planning stages for homes,
6
businesses, and state buildings, due consideration is given to the potential for
7
distributed heat and for the use of combined heat and power (CHP);
8
9
10
11
(6) strategies to identify a developer for a regional wood-fired electric
plant, together with financial support or guarantees, tax credits, site plan
development assistance, and regulatory compliance assistance;
(7) strategies to encourage needed biomass market development by
12
creating reasonable rail transportation options for wood fuel, and through the
13
appropriate use of biomass by state government, the state’s educational
14
institutions, and other major state-funded institutions, as well as by local
15
governments and school districts;
16
17
18
(8) strategies to divert and use suitable biomass materials from
municipal waste streams;
(9) a wood harvest and ecosystem monitoring program, which shall
19
evaluate, on an annual basis, the impacts, if any, of fuel wood harvesting on
20
forest ecosystems, forest inventory and productivity, and carbon sequestration.
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(b) In developing or updating the plan's recommendations, the agencies and
2
the department of public service shall seek public comment by holding public
3
hearings in at least five different geographic regions of the state on at least
4
three different dates, and by providing notice through publication once a week
5
and at least seven days apart for two or more successive weeks in a newspaper
6
or newspapers of general circulation in the regions where the hearings will be
7
held, and by delivering notices to all licensed commercial radio and television
8
stations with transmitting facilities within the state, plus Vermont Public Radio
9
and Vermont Public Television.
10
(c) The agency of agriculture, food and markets, agency of natural
11
resources and department of public service jointly shall adopt a state biomass
12
plan by no later than January 1, 2009. Upon adoption of the plan, analytical
13
portions of the plan may be updated annually. The plan's implementation
14
recommendations shall be updated in the same manner no less frequently than
15
every five years. These recommendations shall be updated prior to the
16
expiration of five years if the general assembly passes a joint resolution
17
making a request to that effect.
18
19
* * * Public Service Board * * *
Sec. 26. 30 V.S.A. § 209(b) and (e) are amended to read:
20
(b) The provisions of section 218 of this title notwithstanding, the public
21
service board shall, under sections 803-804 of Title 3, adopt rules applicable to
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companies subject to this chapter which:
2
***
3
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(2) Regulate or prescribe the grounds upon which the companies may
disconnect or refuse to reconnect service to customers; and
5
(3) Regulate and prescribe reasonable procedures used by companies in
6
disconnecting or reconnecting services and billing customers in regard thereto;
7
and
8
9
(4) Encourage the in-state deployment of farm biogas energy systems
by authorizing contributions in aid of construction for electric service
10
extensions to farms, as necessary to ensure the economic viability of farm
11
biogas systems that utilize on-farm manure as the primary input, with the
12
costs of those line extensions included in rates.
13
14
(e) The board shall:
***
15
(15) Assure that incandescent light bulbs in use in the state are replaced
16
with compact fluorescent light bulbs as soon as possible, and to the maximum
17
extent appropriate, with a goal of universal residential deployment.
18
Sec. 27. 30 V.S.A. § 209(h)–(j) are added to read:
19
(h) There is established an annual public purpose expenditure standard for
20
Vermont retail electricity providers to fund new clean energy market
21
transformation efforts and new renewable energy resources. The public
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purpose expenditure standard shall be funded by the public purpose charge
2
described in this subsection.
3
(1) Each Vermont retail electricity provider shall collect a public
4
purpose charge from all of the electricity consumers located within its service
5
area until January 1, 2015. The public purpose charge shall be equal to one
6
percent of the total revenues collected by the provider from its electricity
7
consumers for electricity services, distribution, ancillary services, metering and
8
billing, transition charges and other types of costs included in electric rates on
9
July 1, 2007.
10
11
12
(2) The public service board shall establish rules implementing the
provisions of this section relating to retail electricity providers.
(3) The board shall direct the manner in which public purpose charges
13
are collected and spent by a retail electricity provider and may require a
14
provider to expend funds through competitive bids or other means. The board
15
also may direct that funds collected by a retail electricity provider through
16
public purpose charges be paid to the Vermont Clean Energy Development
17
Fund for investment in the public purposes described in this subsection.
18
Notwithstanding any other provision of this subsection, at least 80 percent of
19
the funds allocated shall be spent within the service area of the electricity
20
provider that collected the funds.
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(i) The board shall establish a loading order that establishes, in order, the
2
state’s preferences in the use of energy resources to meet the state’s needs.
3
Within that loading order, cost-effective energy efficiency and demand
4
response activities shall be the resources of first resort.
5
* * * Net Metering * * *
6
Sec. 28. 30 V.S.A. § 219a is amended to read:
7
§ 219a. SELF-GENERATION AND NET METERING
8
(a) As used in this section:
9
***
10
11
(3) "Net metering system" means a facility for generation of electricity
that:
12
(A) is of no more than 15 500 kilowatts (AC) capacity, or is a farm
13
system a lower maximum capacity set by the board, if the facility is located
14
within the service area of a utility with regard to which the board has
15
established a lower maximum capacity;
16
17
18
19
20
(B) operates in parallel with facilities of the electric distribution
system;
(C) is intended primarily to offset part or all of the customer's own
electricity requirements;
(D) is located on the customer's premises; and
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3
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(E) employs a renewable energy source as defined in subdivision
8002(2) of this title.
(4) "Farm system" means a facility of no more than 150 500 kilowatts
4
(AC) output capacity, or a lower maximum capacity set by the board, if the
5
facility is located within the service area of a utility with regard to which the
6
board has established a lower maximum capacity, and except as provided in
7
subdivision (k)(5) of this section, that generates electric energy on a farm
8
operated by a person principally engaged in the business of farming, as that
9
term is defined in Regulation 1.175-3 of the Internal Revenue Code of 1986,
10
from the anaerobic digestion of agricultural products, byproducts, or wastes, or
11
other renewable sources as defined in subdivision (3)(E) of this subsection,
12
intended to offset the meters designated under subdivision (g)(1)(A) of this
13
section on the farm or has entered into a contract as specified in subsection (k)
14
of this section.
15
16
17
***
(h)(1) An electric company:
(A) Shall make net metering available to any customer using a net
18
metering system or farm system on a first-come, first-served basis until the
19
cumulative output capacity of net metering systems equals 1.0 5.0 percent of
20
the distribution company's peak demand during 1996; or the peak demand
21
during the most recent full calendar year, whichever is greater. The board may
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raise the 1.0 5.0 percent cap to no more than 10.0 percent, upon determining
2
that to do so is in the public interest. In determining whether to raise the cap,
3
the board shall consider the following:
4
***
5
(2) All such requirements shall be pursuant to and governed by a tariff
6
approved by the board and any applicable board rule, which tariffs and rules
7
shall be designed in a manner reasonably likely to facilitate net metering.
8
9
***
(j) Notwithstanding the provisions of this section that define a net metering
10
system as being of no more than 15 500 kilowatts (AC) capacity, the board
11
may allow net metering for up to ten systems per year for customers that
12
produce more than 15 500 kilowatts (AC) capacity, but do not produce more
13
than 150 kilowatts of power and are not farm systems.
14
(k) Notwithstanding the provisions of subsections (f) and (g) of this
15
section, an electric company may contract to purchase all or a portion of the
16
output products from a farm system, provided:
17
***
18
(5) the output capacity of a system may exceed 150 500 kilowatts,
19
provided:
20
(A) the contract assigns the amount of power to be net metered;
21
(B) the net metered amount does not exceed 150 500 kilowatts; and
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3
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(C) only the amount assigned to net metering is assessed to the cap
provided in subdivision (h)(1)(A) of this section.
* * * Least-Cost Planning * * *
Sec. 29. 30 V.S.A. § 218c(a) is amended to read:
(a)(1) A "least cost integrated plan" for a regulated electric or gas utility is
6
a plan for meeting the public's need for energy services, after safety concerns
7
are addressed, at the lowest present value life cycle cost, including
8
environmental and economic costs, through a strategy combining investments
9
and expenditures on energy supply, transmission and distribution capacity,
10
transmission and distribution efficiency, and comprehensive energy efficiency
11
programs. Economic costs shall be determined with due regard to the
12
information developed under the provisions of 10 V.S.A. § 580, establishing a
13
greenhouse gas registry, to the state’s progress in meeting its greenhouse gas
14
reduction goals, and to the value of the financial risks associated with
15
greenhouse gas emissions from various power sources. Environmental costs
16
shall incorporate a “greenhouse gas adder,” which shall be an additional dollar
17
amount per ton of carbon dioxide, or other greenhouse gas, generated, as
18
determined by the public service board from time to time.
19
***
20
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* * * Green Mountain Energy Incentives * * *
2
Sec. 30. 30 V.S.A. § 235 is added to read:
3
§ 235. GREEN MOUNTAIN ENERGY INCENTIVE PROGRAM
4
(a) The public service board shall establish a green mountain energy
5
incentive program, pursuant to which it may authorize a Vermont retail
6
electricity provider to file and place into effect tariff schedules establishing
7
rates or charges for renewable energy generation facilities provided to
8
individual property owners or customers. Application of the schedule shall be
9
subject to agreement between the public utility and the property owner or
10
customer receiving service at the time the renewable energy generation
11
facilities or payments are initially provided.
12
(b) A tariff schedule under the green mountain energy incentive program
13
established under this section may include provisions for the payment of the
14
rates or charges over a period of time and for the application of the payment
15
obligation to successive property owners or customers at the premises where
16
the renewable energy generation facilities were installed or with respect to
17
which the payments were made.
18
(c) A Vermont retail electricity provider shall record a notice of any
19
payment obligation required of a property owner or customer under this section
20
in the records maintained by the county clerk. The board may prescribe by
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rule other methods by which the electricity provider shall notify property
2
owners or customers of any such payment obligation.
3
(d) A Vermont retail electricity provider may use moneys obtained through
4
a rate established under 30 V.S.A. § 209(h) to provide renewable energy
5
generation facilities to property owners or customers under this section. A
6
provider may not charge interest to a property owner or customer for facilities
7
provided under this section.
8
9
* * * Section 248 Review * * *
Sec. 31. 30 V.S.A. § 248(b) is amended to read:
10
(b) Before the public service board issues a certificate of public good as
11
required under subsection (a) of this section, it shall find that the purchase,
12
investment or construction:
13
14
***
(9) with respect to a waste to energy facility, is included in a solid waste
15
management plan adopted pursuant to 24 V.S.A. § 2202a, which is consistent
16
with the state solid waste management plan; and
17
(10) except as to a natural gas facility that is not part of or incidental to
18
an electric generating facility, can be served economically by existing or
19
planned transmission facilities without undue adverse effect on Vermont
20
utilities or customers; and
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(11) with respect to long-term, base load power commitments, are at
2
least as clean as a natural gas-fired plant using combined cycle turbine
3
technology.
4
* * * SPEED Program * * *
5
Sec. 32. 30 V.S.A. § 8005 is amended to read:
6
§ 8005. SUSTAINABLY PRICED ENERGY ENTERPRISE
7
DEVELOPMENT (SPEED) PROGRAM
8
9
***
(b) The SPEED program shall be established, by rule, order, or contract, by
10
the public service board by January 1, 2007. As part of the SPEED program,
11
the public service board may:
12
13
***
(2) allow the developer of a facility that is one megawatt or less, and is a
14
qualifying SPEED resource or a non-qualifying SPEED resource, to sell that
15
power under a long term contract that is established at a specified price
16
determined by the board to be adequate to cover the cost of the project,
17
produce a reasonable rate of return to the generation owner, and include an
18
adder for the value of distributed generation and lost economies of scale. For
19
purposes of this section, a long-term contract should be 15 years or greater
20
unless the board finds good cause for a shorter term;
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(3) encourage Vermont's retail electricity providers to secure long-term
2
contracts for renewable energy that are anticipated to be below the long-term
3
market price, over the lives of the projects, at stable prices, for qualifying
4
SPEED resources. The board shall create a standard contract price for
5
qualifying SPEED resources over 1 MW of capacity. The price paid for
6
renewable generation under the standard offer program shall be cost-based and
7
further ensure a reasonable rate of return to the generation owner. The board
8
may create a competitive bid process through which to select a portion of those
9
contracts;
10
***
11
(g)(1) In addition to the SPEED resource requirements, Vermont’s retail
12
electricity providers, by not later than July 1, 2012, shall file with the board
13
one or more long-term power purchase contracts from renewable energy
14
resource projects specified under this subsection at a price that is not more than
15
the total of the comparable wholesale market price for generation plus five and
16
one-half cents per kilowatt hour. These contracts shall be comprised of not
17
less than a total, apportioned among each Vermont electricity provider
18
company, of two hundred megawatts; and shall be entered into according to a
19
schedule that meets benchmarks of no less than an additional 50 megawatts per
20
year, by the end of calendar years 2008, 2009, and 2010. The cost of these
21
contracts and the administrative costs for the procurement of these contracts
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directly incurred shall be eligible for inclusion in rates, provided that these
2
contracts are for a period of time sufficient to provide financing for these
3
projects, but not less than ten years and are for projects which began operation
4
on or after July 1, 2007. For purposes of this subsection, the board’s
5
determination of the comparable wholesale market price for generation shall be
6
based upon a reasonable estimate.
7
(2) “Renewable energy resources specified by this subsection” means
8
energy derived from solar power; wind power; a fuel cell; methane gas from
9
landfills and farm-based anaerobic digester technology; low emission
10
advanced renewable energy conversion technologies; a run-of-the-river
11
hydropower facility provided such facility has a generating capacity of not
12
more than five megawatts, does not cause an appreciable change in the river
13
flow, and began operation after the effective date of this subsection; or a
14
biomass facility, including a biomass gasification plant that utilizes land
15
clearing debris, tree stumps or other biomass that regenerates or the use of
16
which will not result in a depletion of resources, provided that this biomass
17
facility begins operating on or after July 1, 2007, and the biomass is cultivated
18
and harvested in a sustainable manner.
19
20
(3) The board, by rule or order, shall establish a process by which a
retail provider may apply to the board for an exemption from the requirements
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established by this subsection, on the basis that the provider procures more
2
than 50 percent of its load from renewable sources of energy.
3
(h) All prudently incurred costs associated with compliance with this
4
section shall be recoverable in the rates of a Vermont retail electricity provider
5
company, including interconnection costs, costs associated with using physical
6
or financial assets to integrate, firm or shape renewable energy sources on a
7
firm annual basis to meet retail electricity needs and other costs associated
8
with transmission and delivery of qualifying electricity to consumers.
9
(i) The department of public service and the agency of natural resources
10
shall advise potential developers of renewable energy resources, on request,
11
regarding which projects may prove the most beneficial to the state, and then
12
shall provide assistance in the navigation of the permitting processes.
13
(j) It is a goal of the state of Vermont, by 2015, to have at least eight
14
percent of the state’s retail electric load to be met by small-scale renewable
15
energy projects with a generating capacity of 20 megawatts, or less.
16
17
18
* * * State Treasurer * * *
Sec. 33. 32 V.S.A. § 433(d) is added to read:
(d) In a manner consistent with the guidelines developed under this section,
19
the treasurer may invest in projects that are eligible under the clean energy
20
development fund established under 10 V.S.A. § 6523 and in other appropriate
21
mechanisms in order to promote investment in innovative and profitable clean
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technology businesses and industries in the state. The treasurer shall give
2
particular attention to investments that would: generate attractive returns both
3
in the short term and long term; leverage significant and positive interest in the
4
private sector venture capital markets; create jobs and economic growth in
5
clean energy and technology industries in Vermont; and promote greater
6
energy independence and environmental protection for the state.
7
* * * Appraised Value of Energy Measures * * *
8
Sec. 34. 32 V.S.A. § 3481 is amended to read:
9
§ 3481. DEFINITIONS
10
11
12
13
The following definitions shall apply in this Part and chapter 101 of this
title, pertaining to the listing of property for taxation:
(1) "Appraisal value" shall mean, :
(A) with respect to property enrolled in a use value appraisal
14
program, the use value appraisal as defined in subdivision 3752(12) of this
15
title, multiplied by the common level of appraisal, and with respect to all other
16
property, the estimated fair market value. The estimated fair market value of a
17
property is the price which the property will bring in the market when offered
18
for sale and purchased by another, taking into consideration all the elements of
19
the availability of the property, its use both potential and prospective, any
20
functional deficiencies, and all other elements such as age and condition which
21
combine to give property a market value. Those elements shall include a
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consideration of a decrease in value in nonrental residential property due to a
2
housing subsidy covenant as defined in section 610 of Title 27, or the effect of
3
any state or local law or regulation affecting the use of land, including but not
4
limited to chapter 151 of Title 10 or any land capability plan established in
5
furtherance or implementation thereof, rules adopted by the state board of
6
health and any local or regional zoning ordinances or development plans. In
7
determining estimated fair market value, the sale price of the property in
8
question is one element to consider, but is not solely determinative.
9
(B) For residential rental property that is subject to a housing subsidy
10
covenant or other legal restriction, imposed by a governmental,
11
quasi-governmental, or public purpose entity, on rents that may be charged,
12
fair market value shall be determined by an income approach using the
13
following elements:
14
(A)(i) market rents with utility allowance adjustments for the
15
geographic area in which the property is located as determined by the federal
16
office of Housing and Urban Development or in the case of properties
17
authorized under 42 U.S.C. § 1437, 12 U.S.C. § 1701q, 42 U.S.C. § 1485, 12
18
U.S.C. § 1715z-1, 42 U.S.C. § 1437f, and 24 CFR Part 882 Subpart D and E,
19
the higher of contract rents (meaning the amount of federal rental assistance
20
plus any tenant contribution) and HUD market rents;
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(B)(ii) actual expenses incurred with respect to the property which
2
shall be provided by the property owner in a format acceptable to the
3
commissioner and certified by an independent third party, such as a certified
4
public accounting firm or public or quasi-public funding agency;
5
(C)(iii) a vacancy rate that is 50 percent of the market vacancy rate as
6
determined by the United States Census Bureau with local review by the
7
Vermont housing finance agency; and
8
9
(D)(iv) a capitalization rate that is typical for the geographic area
determined and published annually prior to April 1 by the division of property
10
valuation and review after consultation with the Vermont housing finance
11
agency.
12
(C) "Appraisal value" shall not include the value of renewable energy
13
and energy efficiency components in or on a building. "Value of renewable
14
energy and energy efficiency components" means the original cost of, and
15
installation charges for, any or all of the following:
16
17
18
19
20
21
(i) Replacement of existing windows with energy efficient
windows.
(ii) Replacement of energy inefficient hot water heaters with
energy efficient heaters.
(iii) Replacement or addition of insulation and curtains or shades
with high insulating characteristics.
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(iv) Sealing of basements for purposes of energy efficiency.
2
(v) Addition of storm windows and storm doors.
3
(vi) Placement of solar photovoltaic systems and solar water and
4
space heating systems and any related equipment.
5
(vii) Erection of wind turbines and related equipment;
6
(ix) Installation of geothermal space and water heating systems;
7
(x) Installation of hydropower equipment;
8
(xi) Installation of fuel cells that rely on renewable fuels;
9
(xii) Replacement of inefficient energy heating systems with
10
11
efficient systems.
* * * Residential Tax Credit * * *
12
Sec. 35. 32 V.S.A. § 5930z is added to read:
13
§ 5930z. CREDIT FOR EFFICIENT RESIDENTIAL ENERGY SYSTEMS
14
A taxpayer of this state shall be eligible for a nonrefundable credit against
15
the personal income tax imposed under this chapter in the amount of 10
16
percent of any amount paid by the taxpayer during the taxable year for any of
17
the following items which were installed in the taxpayer’s primary or other
18
residence, or installed in residential rental units owned by the taxpayer:
19
premium-efficiency appliances, premium-efficiency heating and cooling
20
systems, pellet heating systems, duct systems, geothermal space or water
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heating systems, solar water and space heating systems, and photovoltaic and
2
wind systems to generate energy.
3
4
5
* * * Property Tax Return * * *
Sec. 36. 32 V.S.A. § 9606(c) is amended to read:
(c) The property transfer return required under this section shall also
6
contain a certificate in such form as the secretary of the agency of natural
7
resources and the commissioner of taxes jointly shall prescribe and shall be
8
signed under oath or affirmation by each of the parties or their legal
9
representatives. The certificate shall indicate all of the following:
10
(1) whether Whether the transfer is in compliance with or is exempt
11
from regulations governing potable water supplies and wastewater systems
12
under chapter 64 of Title 10; and.
13
(2) that That the seller has advised the purchaser that local and state
14
building regulations, zoning regulations, subdivision regulations, and potable
15
water supply and wastewater system requirements pertaining to the property
16
may significantly limit the use of the property.
17
(3) That the seller has disclosed to the buyer annual energy consumption
18
at the property for the preceding five years or any period of occupancy since
19
the house was constructed, whichever is less, or has provided a home energy
20
rating performed within the two years immediately preceding the date of
21
closing by a home energy rating organization accredited under 21 V.S.A.
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* * * Weatherization Program * * *
Sec. 37. 33 V.S.A. § 2502(b) is amended to read:
4
(b) In addition, the director shall supplement, or supplant, any federal
5
program with a state home weatherization assistance program providing:
6
7
***
(3) funding for the installation of solar domestic hot water systems on
8
eligible homes.
9
Sec. 38. 33 V.S.A. § 2502(f) is added to read:
10
(f) Eligibility for assistance under the home weatherization program under
11
this chapter depends upon an applicant establishing income of 60 percent or
12
less of county median income, or 60 percent or less of state median income,
13
whichever is set at a higher amount.
14
15
16
* * * Methane Digesters * * *
Sec. 39. REGIONAL DAIRY METHANE DIGESTERS
(a) The secretary of agriculture, food and markets, in conjunction with the
17
commissioner of public service, shall seek federal funding to evaluate the
18
potential for manure management centers at potential sites for regional dairy
19
bio-digesters. In particular, the initiative shall examine the technical and
20
economic feasibility of collecting dairy waste, transporting it, digesting it to
21
produce energy, and returning digested manure to participating farms.
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(b) The secretary of natural resources shall review and make appropriate
2
regulatory revisions or recommend appropriate statutory amendments to its
3
regulatory programs that may be preventing the use of wastes, such as food
4
processing wastes, whey, and brewers’ waste, in farm-based methane digester
5
systems.
6
7
8
* * * Community Wind Project * * *
Sec. 40. PILOT COMMUNITY WIND PROJECT
The commissioner of public service, acting jointly with the members of the
9
clean energy development fund investment committee, and in consultation
10
with the clean energy coordinating council established under 30 V.S.A. § 1,
11
shall issue a request for proposals (RFP) in which communities are invited to
12
partner with the state to create a pilot community wind demonstration project,
13
to be funded in part from the clean energy development fund established under
14
10 V.S.A. § 6523. The clean energy coordinating council shall assist by
15
providing applicant communities with a map of land suitable for use, including
16
appropriate state-owned land, that identifies areas with adequate wind
17
resources and transmission capacity. In addition to funding assistance, the
18
state shall provide contracting and regulatory assistance to support the success
19
of this Vermont-scale, community owned, demonstration project.
20
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* * * Home Efficiency Index * * *
Sec. 41. HOME EFFICIENCY INDEX
The department of public service shall convene an advisory committee to
4
include one or more mortgage lenders, builders, building designers, utility
5
representatives, and other persons with experience and expertise, such as
6
consumer advocates and energy conservation experts, and with the advice of
7
the committee shall develop a Vermont-specific residential “efficiency index”
8
that will be generally accessible, understandable, and able to serve as a
9
common standard to effectively measure home energy efficiency. Once
10
established, this index shall be available for use by: any efficiency entity
11
established under 30 V.S.A. § 209 or elsewhere, the home weatherization
12
assistance program established under 33 V.S.A. chapter 25, building
13
inspectors, consumers, banks, investors, property owners, and the general
14
public. At the discretion of the commissioner of public service, the advisory
15
committee may or may not be the same advisory committee established under
16
21 V.S.A. § 266 to make recommendations with regard to the revisions of the
17
residential building energy standards (RBES).
18
* * * State Employee Bicycling Incentives * * *
19
Sec. 42. STATE EMPLOYEES’ COMMUTER CHALLENGE
20
21
The secretary of administration, in consultation with the secretary of
transportation, shall procure funding for a state employees’ commuter
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challenge, which shall be offered to all state employees. Upon acquiring
2
adequate funding and commencing upon a date specified by the secretary of
3
administration, the secretary shall implement the state employees’ commuter
4
challenge, pursuant to which each state employee is offered a cash bonus or
5
other benefit upon riding a bicycle at least 650 commuter miles to work, over
6
the course of a year. Each participant shall be eligible to receive $500.00, up
7
front, to purchase a bicycle, and $500.00 cash upon successful completion of
8
the program. An employee who fails to successfully complete the program
9
shall be required to reimburse the state in the amount of $1.00 per mile not
10
ridden, which, at the employee’s discretion, may be withheld from future pay
11
receipts, in an amount that shall not be less than $50.00 per pay period, except
12
when the total amount owed is less than $50.00. Other program requirements
13
shall be as specified by the secretary of administration.
14
Sec. 43. EFFECTIVE DATES
15
This act shall take effect upon passage except as follows:
16
(1) Sec. 34 (exclusion of energy efficiency components from tax
17
appraisal value) shall apply to energy efficiency components incorporated into
18
or added to any building and completed on or after April 1, 2009.
19
20
(2) Sec. 35 (income tax credit for residential energy systems) shall apply
to taxable year 2007 and after.
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