Vermont 2025-2026 Regular Session

Vermont House Bill H0289 Compare Versions

Only one version of the bill is available at this time.

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1	1	BILL AS INTRODUCED H.289
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6	6	H.289 1
7	7	Introduced by Representatives McCoy of Poultney, Harrison of Chittenden, 2
8	8	Bailey of Hyde Park, Howland of Rutland Town, and 3
9	9	Southworth of Walden 4
10	10	Referred to Committee on 5
11	11	Date: 6
12	12	Subject: Public service; energy; renewable energy; climate change; air 7
13	13	pollution; Global Warming Solutions Act; Climate Action Plan; 8
14	14	Climate Council 9
15	15	Statement of purpose of bill as introduced: This bill proposes to change the 10
16	16	Renewable Energy Standard to the Clean Energy Standard. It would also 11
17	17	provide funding for electric vehicle incentives. It would also make multiple 12
18	18	amendments to the Global Warming Solutions Act. 13
19	19	An act relating to affordable climate initiatives 14
20	20	It is hereby enacted by the General Assembly of the State of Vermont: 15
21	21	* * * Clean Energy Standard * * * 16
22	22	Sec. 1. 30 V.S.A. § 202b is amended to read: 17
23	23	§ 202b. STATE COMPREHENSIVE ENERGY PLAN 18
24	24	(a) The Department of Public Service, in conjunction with other State 19
25	25	agencies designated by the Governor, shall prepare a State Comprehensive 20 BILL AS INTRODUCED H.289
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30	30	Energy Plan covering at least a 20-year period. The Plan shall seek to 1
31	31	implement the State energy policy set forth in section 202a of this title, 2
32	32	including meeting the State’s greenhouse gas emissions reductions 3
33	33	requirements goals pursuant to 10 V.S.A. § 578, and shall be consistent with 4
34	34	the relevant goals of 24 V.S.A. § 4302 and with the Vermont Climate Action 5
35	35	Plan adopted and updated pursuant to 10 V.S.A. § 592. The State 6
36	36	Comprehensive Energy Plan shall include: 7
37	37	* * * 8
38	38	(e) The Commissioner of Public Service (Commissioner) shall file an 9
39	39	annual report on progress in meeting the goals of the Plan. The report shall 10
40	40	address each of the following sectors of energy consumption in the State: 11
41	41	electricity, nonelectric fuels for thermal purposes, and transportation. In 12
42	42	preparing the report, the Commissioner shall consult with the Secretaries of 13
43	43	Administration, of Agriculture, Food and Markets, of Natural Resources, and 14
44	44	of Transportation and the Commissioner of Buildings and General Services. 15
45	45	* * * 16
46	46	(3) For each sector, the report shall provide: 17
47	47	(A) In millions of British thermal units (MMBTUs) for the most 18
48	48	recent calendar year for which data are available, the total amount of energy 19
49	49	consumed, the amount of clean and renewable energy consumed, and the 20
50	50	percentage of clean and renewable energy consumed. For the electricity 21 BILL AS INTRODUCED H.289
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55	55	sector, the report shall also state the amounts in megawatt hours (MWH) of 1
56	56	retail sales and load for Vermont as well as for each retail electricity provider 2
57	57	and the Vermont and New England summer and winter peak electric demand, 3
58	58	including the hour and day of peak demand. 4
59	59	(B) Projections of the energy reductions and shift to clean and 5
60	60	renewable energy expected to occur under existing policies, technologies, and 6
61	61	markets. The most recent available data shall be used to inform these 7
62	62	projections and shall be provided as a supplement to the data described in 8
63	63	subdivision (A) of this subdivision (3). 9
64	64	* * * 10
65	65	(7) The report shall include the following information on progress 11
66	66	toward meeting the Renewable Clean Energy Standard (RES CES): 12
67	67	(A) An assessment of the costs and benefits of the RES CES based 13
68	68	on the most current available data, including rate and economic impacts, 14
69	69	customer savings, technology deployment, greenhouse gas emission reductions 15
70	70	achieved both relative to 10 V.S.A § 578 requirements and societally, fuel 16
71	71	price stability, effect on transmission and distribution upgrade costs, and any 17
72	72	recommended changes based on this assessment. 18
73	73	(i) For the most recent calendar year for which data is available, 19
74	74	each retail electricity provider’s retail sales and load, in MWh; required 20
75	75	amounts of clean and renewable energy for each category of the RES CES as 21 BILL AS INTRODUCED H.289
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80	80	set forth in section 8005 of this title; and amounts of clean and renewable 1
81	81	energy and tradeable clean and renewable energy credits eligible to satisfy the 2
82	82	requirements of sections 8004 and 8005 of this title actually owned by the 3
83	83	Vermont retail electricity providers, expressed as a percentage of retail sales 4
84	84	and total load MWh purchases made by Vermont retail electricity providers to 5
85	85	meet demand. 6
86	86	* * * 7
87	87	(iv) The report shall assess how costs and benefits of the RES 8
88	88	CES are being distributed across State, to the extent possible given available 9
89	89	data, by retail electricity service territory, municipality, and environmental 10
90	90	justice focus populations, as defined by 3 V.S.A. § 6002. Such an assessment 11
91	91	shall consider metrics to monitor affordability of electric rates. 12
92	92	(B) Projections, looking at least 10 years ahead, of the impacts of the 13
93	93	RES CES. 14
94	94	* * * 15
95	95	(iii) The Department shall project, for the State, the impact of the 16
96	96	RES CES in each of the following areas: electric utility rates, total energy 17
97	97	consumption, electric energy consumption, fossil fuel consumption, and 18
98	98	greenhouse gas emissions. The report shall compare the amount or level in 19
99	99	each of these areas with and without the program. 20 BILL AS INTRODUCED H.289
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104	104	(C) An assessment of whether the requirements of the RES CES have 1
105	105	been met to date, and any recommended changes needed to achieve those 2
106	106	requirements. 3
107	107	(D) A summary of the activities of distributed renewable generation 4
108	108	programs that support the achievement of the RES CES, including: 5
109	109	* * * 6
110	110	Sec. 2. 30 V.S.A. § 8002 is amended to read: 7
111	111	§ 8002. DEFINITIONS 8
112	112	As used in this chapter: 9
113	113	* * * 10
114	114	(7) “Environmental attributes” means the characteristics of a plant that 11
115	115	enable the energy it produces to qualify as clean or renewable energy and 12
116	116	include any and all benefits of the plant to the environment such as avoided 13
117	117	emissions or other impacts to air, water, or soil that may occur through the 14
118	118	plant’s displacement of a nonclean or nonrenewable energy source. 15
119	119	* * * 16
120	120	(25) “Clean energy” means both renewable energy, as defined in this 17
121	121	section, as well as electricity produced using a technology that does not emit 18
122	122	greenhouse gases as a by-product of energy generation. 19
123	123	* * * 20 BILL AS INTRODUCED H.289
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128	128	(29) “RES” “CES” means the Renewable Clean Energy Standard 1
129	129	established under sections 8004 and 8005 of this title. 2
130	130	* * * 3
131	131	(33) “Tradeable zero emissions credits” or “ZECs” means all of the 4
132	132	environmental attributes associated with a single unit of energy generated by a 5
133	133	clean energy source where: 6
134	134	(A) those attributes are transferred or recorded separately from that 7
135	135	unit of energy; 8
136	136	(B) the party claiming ownership of the tradeable zero emissions 9
137	137	credits has acquired the exclusive legal ownership of all, and not less than all, 10
138	138	the environmental attributes associated with that unit of energy; and 11
139	139	(C) exclusive legal ownership can be verified through an auditable 12
140	140	contract path or pursuant to the system established or authorized by the 13
141	141	Commission or any program for tracking and verification of the ownership of 14
142	142	environmental attributes of energy legally recognized in any state and 15
143	143	approved by the Commission. 16
144	144	Sec. 3. 30 V.S.A. § 8004 is amended to read: 17
145	145	§ 8004. SALES OF ELECTRIC ENERGY; RENEWABLE CLEAN 18
146	146	ENERGY STANDARD (RES CES) 19
147	147	(a) Establishment Expansion; requirements. The RES Renewable Energy 20
148	148	Standard is established expanded to become the CES. Under this program, a 21 BILL AS INTRODUCED H.289
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153	153	retail electricity provider shall not sell or otherwise provide or offer to sell or 1
154	154	provide electricity in the State of Vermont without ownership of sufficient 2
155	155	energy produced by clean and renewable energy plants or sufficient tradeable 3
156	156	renewable energy and zero emissions credits from plants whose energy is 4
157	157	capable of delivery in New England that reflect the required amounts of clean 5
158	158	and renewable energy set forth in section 8005 of this title or without support 6
159	159	of energy transformation projects in accordance with that section. A retail 7
160	160	electricity provider may meet the required amounts of clean and renewable 8
161	161	energy through eligible tradeable renewable energy and zero emissions credits 9
162	162	that it owns and retires, eligible clean and renewable energy resources with 10
163	163	environmental attributes still attached, or a combination of those credits and 11
164	164	resources. 12
165	165	(b) Rules. The Commission shall adopt update the rules that are necessary 13
166	166	to allow the Commission and the Department to implement and supervise 14
167	167	further the implementation and maintenance of the RES CES. 15
168	168	(c) RECS RECs and ZECs; banking. The Commission shall allow a 16
169	169	provider that has met the required amount amounts of renewable energy or 17
170	170	zero emissions credits in a given year, commencing with 2017, to retain 18
171	171	tradeable renewable energy or zero emissions credits created or purchased in 19
172	172	excess of that amount for application to the provider’s required amount of 20
173	173	clean or renewable energy in one of the following three years. 21 BILL AS INTRODUCED H.289
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178	178	(d) Alternative compliance payment. In lieu of purchasing renewable 1
179	179	energy or tradeable renewable energy or zero emissions credits or supporting 2
180	180	energy transformation projects to satisfy the requirements of this section and 3
181	181	section 8005 of this title, a retail electricity provider in this State may pay to 4
182	182	the Vermont Clean Energy Development Fund established under section 8015 5
183	183	of this title an alternative compliance payment at the applicable rate set forth in 6
184	184	section 8005. The administrator of the Vermont Clean Energy Development 7
185	185	Fund shall use the payment from a retail electricity provider electing to make 8
186	186	an alternative compliance payment to satisfy its obligations under subdivisions 9
187	187	8005(a)(1), 8005(a)(2), 8005(a)(4), and 8005(a)(5) of this title for the 10
188	188	development of renewable energy plants that are intended to serve and benefit 11
189	189	customers with low income of the retail electricity provider that has made the 12
190	190	payment. Such plants shall be located within the provider’s service territory, if 13
191	191	feasible. In the event that such a payment is insufficient to enable the 14
192	192	development of a renewable energy plant, the administrator may use the 15
193	193	payment for other initiatives allowed under section 8015 of this title that will 16
194	194	benefit customers with low income of the retail electricity provider that has 17
195	195	made the payment. As used in this subsection (d), “customer with low 18
196	196	income” means a person purchasing energy from a retail electricity provider 19
197	197	and with an income that is less than or equal to 80 percent of area median 20 BILL AS INTRODUCED H.289
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202	202	income, adjusted for family size, as published annually by the U.S. Department 1
203	203	of Housing and Urban Development. 2
204	204	* * * 3
205	205	(f) Joint efforts. Retail electricity providers may engage in joint efforts to 4
206	206	meet one or more categories within the RES CES. 5
207	207	Sec. 4. 30 V.S.A. § 8005 is amended to read: 6
208	208	§ 8005. RES CES CATEGORIES 7
209	209	(a) Categories. This section specifies five categories of required resources 8
210	210	to meet the requirements of the RES CES established in section 8004 of this 9
211	211	title: total clean and renewable energy, distributed renewable generation, 10
212	212	energy transformation, new renewable energy, and load growth renewable 11
213	213	energy. In order to support progress toward Vermont’s climate goals and 12
214	214	requirements, a provider may, but shall not be required to, exceed the 13
215	215	statutorily required amounts under this section. 14
216	216	(1) Total clean and renewable energy. 15
217	217	(A) Purpose; establishment. To encourage the economic and 16
218	218	environmental benefits of renewable energy, this subdivision establishes, for 17
219	219	the RES CES, minimum total amounts of clean and renewable energy within 18
220	220	the supply portfolio of each retail electricity provider. To satisfy this 19
221	221	requirement, a provider may use clean energy generated within New England 20
222	222	or renewable energy with environmental attributes attached or any class of 21 BILL AS INTRODUCED H.289
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227	227	tradeable renewable energy credits generated by any renewable energy plant 1
228	228	whose energy is capable of delivery in New England. 2
229	229	(B) Required amounts. 3
230	230	(i) The amounts of total clean and renewable energy required by 4
231	231	this subsection (a) shall be 63 percent of each retail electricity provider’s 5
232	232	annual load during the year beginning on January 1, 2025, increasing by at 6
233	233	least an additional four 7.4 percent each third January 1 thereafter until 7
234	234	reaching 100 percent: on and after January 1, 2030. 8
235	235	(i) on and after January 1, 2035 for a retail electricity provider who 9
236	236	serves a single customer that takes service at 115 kilovolts and each municipal 10
237	237	retail electricity provider formed under local charter or chapter 79 of this title; 11
238	238	and 12
239	239	(ii) on and after January 1, 2030, for all other retail electricity 13
240	240	providers The amount of total renewable energy required by this subsection (a) 14
241	241	shall be 55 percent of each retail electricity provider’s annual electricity 15
242	242	purchases during the year beginning on January 1, 2027, increasing by an 16
243	243	additional four percent each January 1 hereafter, until reaching 75 percent on 17
244	244	and after January 1, 2032. 18
245	245	* * * 19
246	246	(2) Distributed renewable generation. 20 BILL AS INTRODUCED H.289
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251	251	(A) Purpose; establishment. This subdivision establishes a 1
252	252	distributed renewable generation category for the RES CES. This category 2
253	253	encourages the use of distributed generation to support the reliability of the 3
254	254	State’s electric system;, reduce line losses;, contribute to avoiding or deferring 4
255	255	improvements to that system necessitated by transmission or distribution 5
256	256	constraints;, and diversify the size and type of resources connected to that 6
257	257	system. This category requires the use of renewable energy for these purposes 7
258	258	to reduce environmental and health impacts from air emissions that would 8
259	259	result from using other forms of generation. 9
260	260	* * * 10
261	261	(E) Avoiding transmission and distribution constraints. 11
262	262	(i) Procurements by retail electricity providers and programs that 12
263	263	support meeting the requirements of this subdivision (2) shall avoid 13
264	264	development of new facilities in generation constrained areas of the 14
265	265	distribution or transmission system that would not need to be expanded but for 15
266	266	the addition of additional generation, unless costs associated with development 16
267	267	in those generation constrained areas are not passed through to ratepayers 17
268	268	through the cost to utilities to purchase the generation or in any other manner. 18
269	269	To implement the intent of this section, the Commission may update or adopt 19
270	270	rules, including rules that require a locational adjustor fee. 20 BILL AS INTRODUCED H.289
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275	275	(ii) A retail electricity provider may petition the Commission for 1
276	276	relief of the requirements of subdivision (C) of this subdivision (a)(2) or the 2
277	277	associated alternative compliance payment, which may be granted if the 3
278	278	provider can demonstrate that it is unable to meet its requirements without 4
279	279	extensive upgrades to the transmission or distribution infrastructure that would 5
280	280	be borne by the provider’s ratepayers. If relief is granted, the retail electricity 6
281	281	provider shall be required to instead acquire new renewable generation from 7
282	282	facilities that qualify to meet the requirements of subdivision (4) of this 8
283	283	subsection (a), in addition to the requirements as described in subdivision (4) 9
284	284	of this subsection (a). 10
285	285	(3) Energy transformation. 11
286	286	(A) Purpose; establishment. This subdivision (3) establishes an 12
287	287	energy transformation category for the RES CES. This category encourages 13
288	288	Vermont retail electricity providers to support additional distributed renewable 14
289	289	generation or to support other projects to reduce fossil fuel consumed by their 15
290	290	customers and the emission of greenhouse gases attributable to that 16
291	291	consumption. A retail electricity provider may satisfy the energy 17
292	292	transformation requirement through distributed renewable generation in 18
293	293	addition to the generation used to satisfy subdivision (2) of this subsection (a) 19
294	294	or energy transformation projects or a combination of such generation and 20
295	295	projects. 21 BILL AS INTRODUCED H.289
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300	300	* * * 1
301	301	(4) New renewable energy. 2
302	302	(A) Purpose; establishment. This subdivision (4) establishes a new 3
303	303	regional renewable energy category for the RES CES. This category 4
304	304	encourages the use of new renewable generation to support the reliability of 5
305	305	the regional ISO-NE electric system. To satisfy this requirement, a provider 6
306	306	shall use new renewable energy with environmental attributes attached or any 7
307	307	class of tradeable renewable energy credits generated by any renewable energy 8
308	308	plant coming into service after January 1, 2010 whose energy is capable of 9
309	309	delivery in New England. 10
310	310	* * * 11
311	311	(6) Alternative compliance rates. 12
312	312	(A) The alternative compliance payment rates for the categories 13
313	313	established by subdivisions (1)–(3) of this subsection (a) shall be: 14
314	314	(i) total clean and renewable energy requirement — $0.01 per 15
315	315	kWh; and 16
316	316	(ii) distributed renewable generation and energy transformation 17
317	317	requirements — $0.06 per kWh. 18
318	318	(B) The Commission shall adjust these rates for inflation annually 19
319	319	commencing January 1, 2018, using the CPI. 20 BILL AS INTRODUCED H.289
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324	324	(C) For the distributed renewable energy, new renewable energy and 1
325	325	load growth requirements, it shall be $0.04 per kWh annually commencing on 2
326	326	January 1, 2025, with calculations for inflation beginning on January 1, 2023. 3
327	327	* * * 4
328	328	Sec. 5. 30 V.S.A. § 8006 is amended to read: 5
329	329	§ 8006. TRADEABLE CREDITS; ENVIRONMENTAL ATTRIBUTES; 6
330	330	RECOGNITION, MONITORING, AND DISCLOSURE 7
331	331	(a) The Commission shall establish or adopt a amend and expand its system 8
332	332	of tradeable renewable energy credits for renewable resources that may be 9
333	333	earned by electric generation qualifying for the prior RES to include clean 10
334	334	energy generation. The system shall recognize tradeable renewable energy 11
335	335	credits monitored and traded on the New England Generation Information 12
336	336	System (GIS); shall provide a process for the recognition, approval, and 13
337	337	monitoring of environmental attributes attached to clean and renewable energy 14
338	338	that are eligible to satisfy the requirements of sections 8004 and 8005 of this 15
339	339	title but are not monitored and traded on the GIS; and shall otherwise be 16
340	340	consistent with regional practices. 17
341	341	(b) The Commission shall ensure that all electricity provider and provider-18
342	342	affiliate disclosures and representations made with regard to a provider’s 19
343	343	portfolio are accurate and reasonably supported by objective data. Further, the 20
344	344	Commission shall ensure that providers disclose the types of generation used 21 BILL AS INTRODUCED H.289
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349	349	and shall clearly distinguish between energy or tradeable energy credits 1
350	350	provided from clean, renewable, and nonrenewable energy sources and 2
351	351	existing and new renewable energy. 3
352	352	Sec. 6. 30 V.S.A. § 8008 is amended to read: 4
353	353	§ 8008. AGREEMENTS; ATTRIBUTE REVENUES; DISPOSITION BY 5
354	354	COMMISSION 6
355	355	(a) As used in this section, “the revenues” means revenues that are from the 7
356	356	sale, through tradeable clean or renewable energy certificates or other means, 8
357	357	of environmental attributes associated with the generation of clean and 9
358	358	renewable energy from a system of generation resources with a total plant 10
359	359	capacity greater than 200 MW and that are received by a Vermont retail 11
360	360	electricity provider on or after May 1, 2012, pursuant to an agreement, 12
361	361	contract, memorandum of understanding, or other transaction in which a 13
362	362	person or entity agrees to transfer such revenues or rights associated with such 14
363	363	attributes to the provider. 15
364	364	* * * 16
365	365	Sec. 7. 30 V.S.A. § 8005b is added to read: 17
366	366	§ 8005b. RENEWABLE ENERGY FOR COMMUNITIES PROGRAM 18
367	367	(a) Establishment. The Renewable Energy for Communities Program is 19
368	368	established. To achieve the goals of subdivision 8005(a)(2) of this title, the 20
369	369	Commission shall develop the Renewable Energy for Communities Program 21 BILL AS INTRODUCED H.289
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374	374	that meets the eligibility requirements of this section, which may be 1
375	375	implemented by rule, order, or contract. Retail electricity providers shall issue 2
376	376	periodic solicitations subject to the requirements of the Renewable Energy for 3
377	377	Communities Program. 4
378	378	(b) Eligible resources. Distributed renewable generation, as defined in 5
379	379	subdivision 8002(a)(2) of this title, shall be eligible to participate in this 6
380	380	program. 7
381	381	(c) Objectives. It shall be the objective of the Renewable Energy for 8
382	382	Communities Program to develop distributed generation at least-cost to 9
383	383	ratepayers that is directed by, developed in consultation with, or directly 10
384	384	benefits communities by one or more of the following: 11
385	385	(1) delivering benefits from renewable energy systems to customers who 12
386	386	have historically been marginalized or faced inequitable access to the benefits 13
387	387	of renewable energy, including environmental justice focus populations as 14
388	388	defined by 3 V.S.A. § 6002; 15
389	389	(2) supporting community participation in the development and 16
390	390	governance of distributed renewable generation; 17
391	391	(3) supporting the delivery of benefits to tenants of buildings that are 18
392	392	designated as affordable housing; 19
393	393	(4) supporting the delivery of benefits to school-and municipal-owned 20
394	394	buildings; and 21 BILL AS INTRODUCED H.289
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399	399	(5) advancing other priority issues as identified during program 1
400	400	development as detailed under subsection (f) of this section. 2
401	401	(d) Capacity requirement. Retail electricity providers shall issue 3
402	402	solicitations for distributed renewable generation equivalent to a percentage of 4
403	403	their requirement under subdivision 8005(a)(2) of this title, as determined by 5
404	404	the Commission. 6
405	405	(e) Solicitation requirement. On a schedule to be developed by the 7
406	406	Commission, each retail electricity provider with an obligation under 8
407	407	subdivision 8005(a)(2) of this title shall issue solicitations for eligible 9
408	408	distributed generation until it has met its capacity requirement. Coordinated 10
409	409	solicitations shall be encouraged. Each retail electric provider shall review 11
410	410	proposed projects in its service territory according to a set of consistent core 12
411	411	criteria as approved by the Commission and consistent with the objectives set 13
412	412	forth in this section. The requirements for the retail electricity providers that 14
413	413	are already 100 percent renewable may be limited by the Commission to an 15
414	414	amount equal to the provider’s requirement to meet distributed generation with 16
415	415	load growth above the baseline year of 2024 and allowed on a less frequent 17
416	416	solicitation schedule. 18
417	417	(f) Program development. On or before January 1, 2027, the Commission 19
418	418	shall implement the Renewable Energy for Communities Program. In 20
419	419	developing the Program, the Commission shall: 21 BILL AS INTRODUCED H.289
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424	424	(1) determine principles to guide the development of eligible distributed 1
425	425	generation and consider whether additional objectives for the Program as 2
426	426	defined under subsection (a) of this section are necessary; 3
427	427	(2) determine whether a percentage of each retail electricity provider’s 4
428	428	capacity requirement should be reserved to serve specific customers who have 5
429	429	previously experienced inequitable access to the benefits of renewable energy 6
430	430	and determine any minimum requirement for those projects procured under 7
431	431	this program for serving those specific customers; 8
432	432	(3) establish a set of consistent review criteria to be used by all retail 9
433	433	electricity providers in solicitations for eligible distributed generation 10
434	434	considering issues in addition to cost, such as community support or 11
435	435	engagement while developing the proposal; potential for local workforce 12
436	436	development and other community benefits to be delivered to the host 13
437	437	community; location of the project, including whether it is in a constrained 14
438	438	area of the distribution or transmission system or in an area identified as a 15
439	439	preferred location in a regional or municipal enhanced energy plan pursuant to 16
440	440	24 V.S.A. § 4352; and anticipated generation profile; 17
441	441	(4) identify reporting requirements and necessary metrics to monitor 18
442	442	how benefits and burdens from the Program are distributed across ratepayers; 19
443	443	(5) consult with individuals representing a diverse array of perspectives, 20
444	444	including at minimum representation from industry, retail electric providers, 21 BILL AS INTRODUCED H.289
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449	449	environmental advocates, State agencies, regional and local governments, 1
450	450	communities identified as environmental justice focus populations under 3 2
451	451	V.S.A. § 6002, municipalities experiencing high energy burden as identified by 3
452	452	Efficiency Vermont’s 2023 Energy Burden Report, renters, and multifamily 4
453	453	affordable housing representatives; 5
454	454	(6) determine a process for exempting or deferring retail electricity 6
455	455	provider requirements under this section in the event no proposals below the 7
456	456	applicable alternative compliance payment are received in response to a retail 8
457	457	electricity provider’s solicitation; 9
458	458	(7) determine a process for evaluating and reporting on the success of 10
459	459	the Program in achieving the stated goals; and 11
460	460	(8) consider other issues as identified throughout the process. 12
461	461	(g) The Commission may use its authority under sections 20 and 21 of this 13
462	462	title as may be necessary to support engagement and technical analysis 14
463	463	necessary to develop the Renewable Energy for Communities Program. 15
464	464	Funding may be used to support per diem compensation and reimbursement of 16
465	465	expenses as permitted under 32 V.S.A. § 1010 to conduct engagement with 17
466	466	parties who are not otherwise compensated by their employer. 18
467	467	Sec. 8. THERMAL SECTOR PROGRAM FUNDS 19
468	468	(a) For the calendar years 2025 and 2026, up to $7,000,000.00 of the 20
469	469	revenues collected by the energy efficiency charge established 30 V.S.A. 21 BILL AS INTRODUCED H.289
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471	471
472	472
473	473	VT LEG #380465 v.2
474	474	§ 209(d)(3)(B) shall be allocated by the Public Utility Commission to the Fuel 1
475	475	Efficiency Fund established under 30 V.S.A. § 203a. For the calendar years 2
476	476	2027, 2028, and 2029, $15,000,000.00 of the revenues collected by the energy 3
477	477	efficiency charge established 30 V.S.A. § 209(d)(3)(B) shall be allocated by 4
478	478	the Public Utility Commission to the Fuel Efficiency Fund established under 5
479	479	30 V.S.A. § 203a. 6
480	480	(b) Of the funds described in subsection (a) of this section, $900,000.00 per 7
481	481	year shall be allocated to the Agency of Natural Resources to fund the Energy 8
482	482	Navigators Program delivered through the Community Action Agencies and 9
483	483	$750,000.00 per year will be allocated to the Department for Children and 10
484	484	Families, Office of Economic Opportunity to support heat pump deployment 11
485	485	through the Weatherization Assistance Program. 12
486	486	(c) In allocating the remaining balance in the Fuel Efficiency Fund, the 13
487	487	Department of Public Service shall prioritize weatherization assistance for 14
488	488	customers with low and moderate income and consider issues such as current 15
489	489	and projected funding amounts and maintaining continuity in workforce 16
490	490	associated with delivering thermal sector programs. 17
491	491	(d) The total amount collected from the energy efficiency charge for the 18
492	492	calendar years 2027, 2028, and 2029 shall be no greater than the amount 19
493	493	authorized to be collected in 2026. 20 BILL AS INTRODUCED H.289
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495	495
496	496
497	497	VT LEG #380465 v.2
498	498	* * * Electric Vehicle Incentives * * * 1
499	499	Sec. 9. 30 V.S.A. § 209(e) is amended to read: 2
500	500	(e) Thermal energy and process fuel efficiency funding. 3
501	501	(1) Each of the following shall be used to deliver thermal energy and 4
502	502	process fuel energy efficiency services in accordance with this section for 5
503	503	unregulated fuels to Vermont consumers of such fuels. In addition, the 6
504	504	Commission may authorize an entity appointed to deliver such services under 7
505	505	subdivision (d)(2)(B) of this section to use monies subject to this subsection 8
506	506	for the engineering, design, and construction of facilities for the conversion of 9
507	507	thermal energy customers using fossil fuels to district heat if the majority of 10
508	508	the district’s energy is from biomass sources, the district’s distribution system 11
509	509	is highly energy efficient, and such conversion is cost effective. 12
510	510	* * * 13
511	511	(B) Net For calendar years 2025, 2026, 2027, 2028, and 2029, net 14
512	512	revenues above costs from the sale of carbon credits under the cap and trade 15
513	513	program established under section 255 of this title, or $6,000,000.00, 16
514	514	whichever is lower, which shall be deposited into the Electric Efficiency Fund 17
515	515	established by this section. 18
516	516	* * * 19 BILL AS INTRODUCED H.289
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518	518
519	519
520	520	VT LEG #380465 v.2
521	521	Sec. 10. 30 V.S.A. § 255(d) is amended to read: 1
522	522	(d) Appointment of consumer trustees. The Public Utility Commission, by 2
523	523	rule, order, or competitive solicitation, may appoint one or more consumer 3
524	524	trustees to receive, hold, bank, and sell tradable carbon credits created under 4
525	525	this program. Trustees may include Vermont electric distribution utilities, the 5
526	526	fiscal agent collecting and disbursing funds to support the statewide efficiency 6
527	527	utility, or a financial institution or other entity with the expertise and financial 7
528	528	resources to manage a portfolio of carbon credits for the long-term benefit of 8
529	529	Vermont energy consumers. The For the calendar years 2025, 2026, 2027, 9
530	530	2028, and 2029, the net proceeds above costs from the sale of carbon credits or 10
531	531	$6,000,000.00, whichever is lower, shall be deposited into the Electric 11
532	532	Efficiency Fund established under subdivision 209(d)(3) of this title. These 12
533	533	funds shall be used by the entity or entities appointed under subdivision 13
534	534	209(d)(2)(B) of this title to help meet the building efficiency goals established 14
535	535	under 10 V.S.A. § 581 by delivering heating and process-fuel energy 15
536	536	efficiency services to Vermont consumers who use such fuel. Any proceeds 16
537	537	above costs from the sale of carbon credits that exceed $6,000,000.00 shall be 17
538	538	allocated to the Agency of Transportation for the Incentive Program for New 18
539	539	Plug-in Electric Vehicles, MileageSmart, and Replace Your Ride Program, as 19
540	540	defined in 19 V.S.A. § 2902, 19 V.S.A. § 2903, and 19 V.S.A. § 2904 20
541	541	respectively. 21 BILL AS INTRODUCED H.289
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543	543
544	544
545	545	VT LEG #380465 v.2
546	546	Sec. 11. 19 V.S.A. § 2908 is added to read: 1
547	547	§ 2908. ALLOCATION OF APPROPRIATIONS 2
548	548	The Secretary, in the Secretary’s discretion, may allocate appropriated 3
549	549	funds among the programs established by this chapter. 4
550	550	* * * GWSA Amendments * * * 5
551	551	Sec. 12. 10 V.S.A. § 578 is amended to read: 6
552	552	§ 578. GREENHOUSE GAS REDUCTION REQUIREMENTS 7
553	553	(a) Greenhouse gas reduction requirements. Vermont shall reduce achieve 8
554	554	net zero emissions of greenhouse gases from within the geographical 9
555	555	boundaries of the State and those emissions outside the boundaries of the State 10
556	556	that are caused by the use of energy in Vermont, as measured and inventoried 11
557	557	pursuant to section 582 of this title, by: on or before January 1, 2035. 12
558	558	(1) not less than 26 percent from 2005 greenhouse gas emissions by 13
559	559	January 1, 2025 pursuant to the State’s membership in the United States 14
560	560	Climate Alliance and commitment to implement policies to achieve the 15
561	561	objectives of the 2016 Paris Agreement; 16
562	562	(2) not less than 40 percent from 1990 greenhouse gas emissions by 17
563	563	January 1, 2030 pursuant to the State’s 2016 Comprehensive Energy Plan; and 18
564	564	(3) not less than 80 percent from 1990 greenhouse gas emissions by 19
565	565	January 1, 2050 pursuant to the State’s 2016 Comprehensive Energy Plan 20
566	566	Vermont shall continue to implement the policies to achieve the objectives of 21 BILL AS INTRODUCED H.289
567	567	2025 Page 24 of 39
568	568
569	569
570	570	VT LEG #380465 v.2
571	571	the 2016 Paris Agreement and remain at net zero greenhouse gas emissions 1
572	572	across all sectors into the future. 2
573	573	* * * 3
574	574	Sec. 13. 10 V.S.A. § 590 is amended to read: 4
575	575	§ 590. DEFINITIONS 5
576	576	As used in this chapter: 6
577	577	(1) “Adaptation” means reducing vulnerability and advancing resilience 7
578	578	through planned and implemented enhancements to, or avoiding degradation 8
579	579	of, natural and built systems and structures. 9
580	580	(2) “Greenhouse gas” has the same meaning as in section 552 of this 10
581	581	title. 11
582	582	(3) “Mitigation” means reduction of anthropogenic greenhouse gas 12
583	583	emissions, and preservation and enhancement of natural systems to sequester 13
584	584	and store carbon, in order to stabilize and reduce greenhouse gases in the 14
585	585	atmosphere. 15
586	586	(4) “Net zero greenhouse gas emissions” means the total amount of 16
587	587	greenhouse gases released into the atmosphere after accounting for the amount 17
588	588	of greenhouse gases that are naturally absorbed or sequestered is at or less than 18
589	589	zero across all sectors. 19 BILL AS INTRODUCED H.289
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591	591
592	592
593	593	VT LEG #380465 v.2
594	594	(5) “Resilience” means the capacity of individuals, communities, and 1
595	595	natural and built systems to withstand and recover from climatic events, trends, 2
596	596	and disruptions. 3
597	597	Sec. 14. 10 V.S.A. § 591 is amended to read: 4
598	598	§ 591. VERMONT CLIMATE COUNCIL 5
599	599	(a) There is created the Vermont Climate Council (Council). The Council 6
600	600	shall be advisory and composed of the following members: 7
601	601	(1) the Secretary of Administration Natural Resources or designee, who 8
602	602	shall serve as the Chair of the Council; 9
603	603	(2) the Secretary of Natural Resources or designee State Climatologist 10
604	604	or designee; 11
605	605	(3) the Secretary of Agriculture, Food and Markets or designee; 12
606	606	(4) the Secretary of Commerce and Community Development or 13
607	607	designee; 14
608	608	(5) the Secretary of Human Services or designee; 15
609	609	(6) the Secretary of Transportation or designee; 16
610	610	(7) the Commissioner of Public Safety or designee; 17
611	611	(8) the Commissioner of Public Service or designee; 18
612	612	(9) one member to represent municipal governments, appointed by the 19
613	613	Governor; 20 BILL AS INTRODUCED H.289
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615	615
616	616
617	617	VT LEG #380465 v.2
618	618	(10) one member to represent the rural communities, appointed by the 1
619	619	Governor; 2
620	620	(11) the following members who shall be appointed by the Speaker of 3
621	621	the House General Assembly: 4
622	622	(A) one member with expertise and professional experience in the 5
623	623	design and implementation of programs to reduce greenhouse gas emissions; 6
624	624	(B) one member to represent rural communities; 7
625	625	(C) one member to represent municipal governments; 8
626	626	(D) one member to represent distribution utilities; 9
627	627	(E)(B) one member to represent a statewide environmental 10
628	628	organization; 11
629	629	(F)(C) one member to represent the fuel sector; 12
630	630	(G) one member with expertise in climate change science; and 13
631	631	(H)(D) one member to represent Vermont manufacturers. 14
632	632	(10) the following members who shall be appointed by the Committee on 15
633	633	Committees: 16
634	634	(A) one member with expertise in the design and implementation of 17
635	635	programs to increase resilience to and respond to natural disasters resulting 18
636	636	from climate change; 19
637	637	(B)(E) one member to represent the clean energy sector; 20
638	638	(C)(F) one member to represent the small business community; 21 BILL AS INTRODUCED H.289
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640	640
641	641
642	642	VT LEG #380465 v.2
643	643	(D)(G) one member to represent the Vermont Community Action 1
644	644	Partnership; 2
645	645	(E)(H) one member to represent the farm and forest sector; and 3
646	646	(F)(I) one youth member; and 4
647	647	(G) one member of a Vermont-based organization with expertise in 5
648	648	energy and data analysis. 6
649	649	(b) The Council shall make recommendations to the Secretary of Natural 7
650	650	Resources and in formulating the recommendations the Council shall: 8
651	651	(1) Identify, analyze, and evaluate strategies and programs to reduce 9
652	652	greenhouse gas emissions; achieve the State’s reduction requirements pursuant 10
653	653	to section 578 of this title; and build resilience to prepare the State’s 11
654	654	communities, infrastructure, and economy to adapt to the current and 12
655	655	anticipated effects of climate change, including:. 13
656	656	(A) creating an inventory of all existing programs that impact 14
657	657	greenhouse gas emissions and their efficacy; 15
658	658	(B) evaluating and analyzing the technical feasibility and cost-16
659	659	effectiveness of existing strategies and programs and identifying, evaluating, 17
660	660	and analyzing new strategies and programs that are based upon emerging 18
661	661	scientific and technical information; 19 BILL AS INTRODUCED H.289
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663	663
664	664
665	665	VT LEG #380465 v.2
666	666	(C) analyzing each source or category of sources of greenhouse gas 1
667	667	emissions and identifying which strategies and programs will result in the 2
668	668	largest greenhouse gas emissions reductions in the most cost-effective manner; 3
669	669	(D) identifying, analyzing, and evaluating public and private 4
670	670	financing strategies to support the transition to a reduced greenhouse gas 5
671	671	emissions economy and a more resilient State; and 6
672	672	(E) evaluating and analyzing existing strategies and programs that 7
673	673	build resilience, and identifying, evaluating, and analyzing new strategies and 8
674	674	programs to prepare the State’s communities, infrastructure, and economy to 9
675	675	adapt to the current and anticipated effects of climate change. 10
676	676	(2) On or before December 1, 2021, adopt Adopt the Vermont Climate 11
677	677	Action Plan (Plan) and update the Plan on or before July 1 every four years 12
678	678	thereafter, the first of which was adopted on December 1, 2021. On or before 13
679	679	December 15, 2026, the Secretary of Natural Resources, in collaboration with 14
680	680	the Department of Public Service and other relevant agencies and departments 15
681	681	of State government, shall deliver a companion implementation strategy and 16
682	682	aggressive-yet-achievable timeline for achieving net zero emissions across all 17
683	683	sectors by 2035. The companion implementation strategy shall include long-18
684	684	term funding mechanisms that prioritizes use of existing resources. On or 19
685	685	before July 1 every five years thereafter, the Secretary of Natural Resources 20
686	686	shall consider the recommendations of the Council and shall update the Plan. 21 BILL AS INTRODUCED H.289
687	687	2025 Page 29 of 39
688	688
689	689
690	690	VT LEG #380465 v.2
691	691	The Council shall finalize its recommendations on or before January 1 of the 1
692	692	year that the Plan is due. The Plan shall set forth recommend the specific 2
693	693	affordable and practicable initiatives, programs, and strategies that the State 3
694	694	shall pursue will consider implementing to reduce greenhouse gas meet net 4
695	695	zero emissions reductions; achieve the State’s 2035 reduction requirements 5
696	696	target pursuant to section 578 of this title; and build resilience to prepare the 6
697	697	State’s communities, infrastructure, and economy to adapt to the current and 7
698	698	anticipated effects of climate change. 8
699	699	(3) Identify the means to accurately measure: 9
700	700	(A) the State’s greenhouse gas emissions and progress towards 10
701	701	meeting the reduction requirements pursuant to section 578 of this title, 11
702	702	including publishing emissions data in a timely manner; 12
703	703	(B) the effectiveness of the specific initiatives, programs, and 13
704	704	strategies set forth in the Plan and updates to the Plan in reducing greenhouse 14
705	705	gas emissions; 15
706	706	(C) the effect of climate change on the State’s climate, wildlife, and 16
707	707	natural resources; and 17
708	708	(D) the existing resilience of the State’s communities, infrastructure, 18
709	709	and economy and progress towards improving resilience to adapt to the current 19
710	710	and anticipated effects of climate change. 20 BILL AS INTRODUCED H.289
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712	712
713	713
714	714	VT LEG #380465 v.2
715	715	(4) Provide guidance to the Secretary of Natural Resources concerning 1
716	716	the form, content, and subject matter of rules to be adopted recommended for 2
717	717	adoption pursuant to section 593 of this chapter. 3
718	718	(c) The Council shall create the subcommittees listed in this subsection and 4
719	719	may also create other subcommittees to advise the Council, and assist in 5
720	720	preparing the Plan, and carry out other duties. The Council may appoint 6
721	721	members of the Council to serve as members of subcommittees and may also 7
722	722	appoint individuals who are not members of the Council to serve as members 8
723	723	of subcommittees. 9
724	724	* * * 10
725	725	(3) Just Transitions Subcommittee. This subcommittee shall focus on 11
726	726	ensuring that strategies to reduce net greenhouse gas emissions and to build 12
727	727	resilience to adapt to the effects of climate change benefit and support all 13
728	728	residents of the State fairly and equitably. This subcommittee shall ensure that 14
729	729	strategies consider the disproportionate impact of climate change on rural, low-15
730	730	income, and marginalized communities and that programs and incentives for 16
731	731	building resilience are designed to be accessible to all Vermonters and do not 17
732	732	unfairly burden any groups, communities, geographic locations, or economic 18
733	733	sectors. This subcommittee may adopt a measurement tool to assess the 19
734	734	equitability of programs and strategies considered by the Council. 20
735	735	* * * 21 BILL AS INTRODUCED H.289
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737	737
738	738
739	739	VT LEG #380465 v.2
740	740	(d) The Council shall recommend necessary legislation to the General 1
741	741	Assembly concerning: 2
742	742	(1) adopting market-based or alternative compliance mechanisms as part 3
743	743	of the State’s greenhouse gas emissions reduction strategies; 4
744	744	(2) changes to land use and development, including to chapter 151 of this 5
745	745	title and 30 V.S.A. § 248, to reduce greenhouse gas emissions and promote 6
746	746	resilience in response to climate change; 7
747	747	(3) statutory authority necessary to implement the Plan; and 8
748	748	(4) any other matter the Council deems appropriate. 9
749	749	(e) The Council shall have the administrative, and technical, and legal 10
750	750	assistance of the Agency of Natural Resources and the Department of Public 11
751	751	Service and may request the assistance of any Executive Branch Agency 12
752	752	agency and Department department. 13
753	753	(f)(e) A majority of the sitting members of the Council shall constitute a 14
754	754	quorum, and action taken by the Council may be authorized by a majority of 15
755	755	the members present and voting at any meeting at which a quorum is present. 16
756	756	The Council may permit any or all members to participate in a meeting by, or 17
757	757	conduct the meeting through the use of, any means of communication, 18
758	758	including electronic, telecommunications, and video- or audio-conferencing 19
759	759	technology, by which all members participating may simultaneously or 20
760	760	sequentially communicate with each other during the meeting. A member 21 BILL AS INTRODUCED H.289
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762	762
763	763
764	764	VT LEG #380465 v.2
765	765	participating in a meeting by this means is deemed to be present in person at 1
766	766	the meeting. The Council shall meet at the call of the Chair or a majority of 2
767	767	the members of the Council, and the Council may elect officers and adopt any 3
768	768	other procedural rules as it shall determine necessary and appropriate to 4
769	769	perform its work. 5
770	770	(g)(f) Members of the Council and members of subcommittees who are not 6
771	771	State employees shall be entitled to per diem compensation and reimbursement 7
772	772	of expenses for each day spent in the performance of their duties, as permitted 8
773	773	under 32 V.S.A. § 1010. These payments shall be made from monies 9
774	774	appropriated to the Agency of Natural Resources. 10
775	775	(h)(g) The members of the Council appointed pursuant to subdivision (a) 11
776	776	(9)(11) of this section shall be appointed to initial terms of two years, and 12
777	777	members appointed pursuant to subdivision (a)(10) of this section shall be 13
778	778	appointed to initial terms of three years. Thereafter, each appointed member 14
779	779	shall serve a term of three years or until his or her a member’s earlier 15
780	780	resignation or removal. A vacancy shall be filled by the appointing authority 16
781	781	for the remainder of the unexpired term. An appointed member shall not serve 17
782	782	more than three two full consecutive three-year terms. 18
783	783	(i)(h) On or before January 15, 2021 and every January 15 thereafter, the 19
784	784	Council shall submit a written report to the General Assembly concerning the 20
785	785	Council’s activities and the State’s progress towards meeting the 2035 net 21 BILL AS INTRODUCED H.289
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787	787
788	788
789	789	VT LEG #380465 v.2
790	790	greenhouse gas reduction requirements pursuant to section 578 of this title. On 1
791	791	or before November 1, 2021 and every second November 1 thereafter, the 2
792	792	Director of Vermont Emergency Management shall file a report with the 3
793	793	Council concerning Vermont’s overall municipal resilience to increased 4
794	794	hazards presented by climate change that shall include hazard mitigation plans, 5
795	795	local emergency management plans, and survey results as deemed appropriate 6
796	796	by the Director. Subsequent reports shall include updates to document 7
797	797	progress in local resilience. The report shall inform Council recommendations 8
798	798	on policies to address gaps in local resilience. 9
799	799	Sec. 15. 10 V.S.A. § 592 is amended to read: 10
800	800	§ 592. THE VERMONT CLIMATE ACTION PLAN 11
801	801	(a) On or before December 1, 2021, the Vermont Climate Council 12
802	802	(Council) shall adopt adopted the Vermont Climate Action Plan (Plan) and. 13
803	803	The Secretary of Natural Resources shall update the Plan on or before July 1 14
804	804	every four five years thereafter. 15
805	805	(b) The Plan shall set forth recommend the specific affordable and 16
806	806	practicable initiatives, programs, and strategies, including regulatory and 17
807	807	legislative changes, necessary to achieve the State’s net zero greenhouse gas 18
808	808	emissions reduction requirements across all sectors pursuant to section 578 of 19
809	809	this title and build resilience to prepare the State’s communities, infrastructure, 20
810	810	and economy to adapt to the current and anticipated effects of climate change. 21 BILL AS INTRODUCED H.289
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812	812
813	813
814	814	VT LEG #380465 v.2
815	815	The Plan shall include those specific affordable and practicable initiatives, 1
816	816	programs, and strategies that will: 2
817	817	* * * 3
818	818	(c) The analysis, development, and selection of the specific initiatives, 4
819	819	programs, and strategies contained in the Plan and updates to the Plan shall be 5
820	820	based upon: 6
821	821	(1) the Council’s analysis and evaluation of strategies and programs 7
822	822	pursuant to subdivision 591(b)(1) of this chapter; 8
823	823	(2) reports, plans, and information pertaining to greenhouse gas 9
824	824	emissions reduction and climate resilience strategies from the Agency of 10
825	825	Natural Resources, the Department of Public Service, other State agencies and 11
826	826	departments, and, where appropriate, the State Comprehensive Energy Plan 12
827	827	prepared pursuant to 30 V.S.A. § 202b and the 2018 Vermont Climate Action 13
828	828	Commission Report to the Governor; and 14
829	829	(3) other reports, plans, and information. 15
830	830	(d) The specific initiatives, programs, and strategies contained in To the 16
831	831	extent practicable and affordable, the Plan and updates to the Plan shall further 17
832	832	the following objectives: 18
833	833	(1) to prioritize the most cost-effective, technologically feasible, and 19
834	834	equitable greenhouse gas emissions reduction pathways and adaptation and 20
835	835	preparedness strategies informed by scientific and technical expertise; 21 BILL AS INTRODUCED H.289
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837	837
838	838
839	839	VT LEG #380465 v.2
840	840	(2) to provide for net zero greenhouse gas emissions reductions that 1
841	841	reflect the relative contribution of each source or category of source of 2
842	842	emissions; 3
843	843	* * * 4
844	844	(e) The Plan updated Plans shall form the basis for the recommend rules 5
845	845	adopted for consideration by the Secretary of Natural Resources pursuant to 6
846	846	section 593 of this chapter. If the Council fails to adopt the Plan or update the 7
847	847	Plan as required by this chapter, the The Secretary shall proceed with adopting 8
848	848	and implementing rules pursuant to subsection 593(j) of this chapter that, in the 9
849	849	Secretary’s discretion, are cost effective, practicable, and designed to achieve 10
850	850	the net zero greenhouse gas emissions reductions requirements pursuant to 11
851	851	section 578 of this title. 12
852	852	Sec. 16. 10 V.S.A. § 593 is amended to read: 13
853	853	§ 593. RULES 14
854	854	(a) The Secretary of Natural Resources shall consider and adopt rules 15
855	855	pursuant to 3 V.S.A. chapter 25, which are, in the Secretary’s discretion, cost 16
856	856	effective, affordable, practicable, and designed to achieve the net zero 17
857	857	greenhouse gas emissions reductions requirements pursuant to section 578 of 18
858	858	this title and are consistent with the Vermont Climate Action Plan (Plan). In 19
859	859	adopting rules pursuant to this section, the Secretary shall: 20 BILL AS INTRODUCED H.289
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861	861
862	862
863	863	VT LEG #380465 v.2
864	864	(1) Ensure that Consider whether the rules are consistent with the 1
865	865	specific initiatives, programs, and strategies set forth in the Plan and updates to 2
866	866	the Plan; follow consider the Vermont Climate Council’s guidance provided 3
867	867	pursuant to subdivision 591(b)(4) of this chapter; and further the objectives 4
868	868	pursuant to subsection 592(d) of this chapter. 5
869	869	(2) Develop a detailed record containing facts; data; and legal, scientific, 6
870	870	and technical information sufficient to establish a reasonable basis to believe 7
871	871	that the rules shall achieve the State’s net zero greenhouse gas emissions 8
872	872	reductions requirements pursuant to section 578 of this title. This detailed 9
873	873	record shall be included with the rule and filed with the Secretary of State 10
874	874	pursuant to 3 V.S.A. § 838. 11
875	875	* * * 12
876	876	(e) On or before July 1, 2026 2027, the Secretary shall consider and adopt 13
877	877	and implement rules, which are, in the Secretary’s discretion, cost effective, 14
878	878	affordable, practicable, and designed to achieve the 2035 net greenhouse gas 15
879	879	emissions reductions requirements pursuant to section 578 of this title and are 16
880	880	consistent with the specific initiatives, programs, and strategies set forth in the 17
881	881	Plan and updates to the Plan and achieve the 2030 2035 net zero greenhouse 18
882	882	gas emissions reduction across all sectors requirement pursuant to section 578 19
883	883	of this title. The Secretary shall observe the requirements of subsection (c) of 20
884	884	this section. 21 BILL AS INTRODUCED H.289
885	885	2025 Page 37 of 39
886	886
887	887
888	888	VT LEG #380465 v.2
889	889	(f) The Secretary shall, at his or her discretion, but not less frequently than 1
890	890	once every two years between 2026 and 2030, review and, if necessary, update 2
891	891	the rules required by subsection (e) of this section in order to ensure that the 3
892	892	2030 greenhouse gas emissions reduction requirement pursuant to section 578 4
893	893	of this title is achieved. In performing this review and update, the Secretary 5
894	894	shall observe the requirements of subsection (c) of this section. 6
895	895	(g) On or before July 1, 2040, the Secretary shall consider and adopt and 7
896	896	implement rules, which are, in the Secretary’s discretion, cost effective, 8
897	897	affordable, practicable, and designed to maintain the net zero or less 9
898	898	greenhouse gas emissions and are consistent with the specific initiatives, 10
899	899	programs, and strategies set forth in the Plan and updates to the Plan and 11
900	900	achieve the 2050 net zero greenhouse gas emissions reduction requirement 12
901	901	pursuant to section 578 of this title across all sectors. 13
902	902	(h) The Secretary shall, at his or her discretion, but not less frequently than 14
903	903	once every two years between 2040 and 2050, review and, if necessary, update 15
904	904	the rules required by subsection (g) of this section in order to ensure that the 16
905	905	2050 greenhouse gas emissions reduction requirement pursuant to section 578 17
906	906	of this title is achieved. In performing this review and update, the Secretary 18
907	907	shall observe the requirements of subsection (c) of this section. 19 BILL AS INTRODUCED H.289
908	908	2025 Page 38 of 39
909	909
910	910
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912	912	(i)(g) The Secretary may establish alternative reduction mechanisms to be 1
913	913	used by sources of greenhouse gas emissions, if necessary, to achieve net zero 2
914	914	emissions after 2050 on or before 2035. 3
915	915	(1) The use of alternative reduction mechanisms shall account for not 4
916	916	more than 20 percent of statewide greenhouse gas emissions estimated as a 5
917	917	percentage of 1990 emissions. The use of a mechanism must offset a quantity 6
918	918	of greenhouse gas emissions equal to or greater than the amount of greenhouse 7
919	919	gasses emitted. 8
920	920	(2) The Secretary shall verify that any greenhouse gas emissions offset 9
921	921	projects authorized as alternative reduction mechanisms represent equivalent 10
922	922	emissions reductions or carbon sequestration that are real, additional, 11
923	923	verifiable, enforceable, and permanent. 12
924	924	(j) If the Council fails to adopt the Plan or update the Plan as required by 13
925	925	section 592 of this chapter, the Secretary shall adopt and implement rules 14
926	926	pursuant to 3 V.S.A. chapter 25 to achieve the greenhouse gas emissions 15
927	927	reductions requirements pursuant to section 578 of this title. 16
928	928	(k)(h) Nothing in this section shall be construed to limit the existing 17
929	929	authority of a State agency, department, or entity to regulate greenhouse gas 18
930	930	emissions or establish strategies or adopt rules to mitigate climate risk and 19
931	931	build resilience to climate change. 20 BILL AS INTRODUCED H.289
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933	933
934	934
935	935	VT LEG #380465 v.2
936	936	(l) The General Assembly may repeal, revise, or modify any rule or 1
937	937	amendment to any rule, and its action shall not be abridged, enlarged, or 2
938	938	modified by subsequent rule. 3
939	939	Sec. 17. REPEAL 4
940	940	10 V.S.A. § 594 is repealed. 5
941	941	* * * Effective Date * * * 6
942	942	Sec. 18. EFFECTIVE DATE 7
943	943	This act shall take effect on July 1, 2025. 8