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H.289 1
Introduced by Representatives McCoy of Poultney, Harrison of Chittenden, 2
Bailey of Hyde Park, Howland of Rutland Town, and 3
Southworth of Walden 4
Referred to Committee on 5
Date: 6
Subject: Public service; energy; renewable energy; climate change; air 7
pollution; Global Warming Solutions Act; Climate Action Plan; 8
Climate Council 9
Statement of purpose of bill as introduced: This bill proposes to change the 10
Renewable Energy Standard to the Clean Energy Standard. It would also 11
provide funding for electric vehicle incentives. It would also make multiple 12
amendments to the Global Warming Solutions Act. 13
An act relating to affordable climate initiatives 14
It is hereby enacted by the General Assembly of the State of Vermont: 15
* * * Clean Energy Standard * * * 16
Sec. 1. 30 V.S.A. § 202b is amended to read: 17
§ 202b. STATE COMPREHENSIVE ENERGY PLAN 18
(a) The Department of Public Service, in conjunction with other State 19
agencies designated by the Governor, shall prepare a State Comprehensive 20 BILL AS INTRODUCED H.289
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Energy Plan covering at least a 20-year period. The Plan shall seek to 1
implement the State energy policy set forth in section 202a of this title, 2
including meeting the State’s greenhouse gas emissions reductions 3
requirements goals pursuant to 10 V.S.A. § 578, and shall be consistent with 4
the relevant goals of 24 V.S.A. § 4302 and with the Vermont Climate Action 5
Plan adopted and updated pursuant to 10 V.S.A. § 592. The State 6
Comprehensive Energy Plan shall include: 7
* * * 8
(e) The Commissioner of Public Service (Commissioner) shall file an 9
annual report on progress in meeting the goals of the Plan. The report shall 10
address each of the following sectors of energy consumption in the State: 11
electricity, nonelectric fuels for thermal purposes, and transportation. In 12
preparing the report, the Commissioner shall consult with the Secretaries of 13
Administration, of Agriculture, Food and Markets, of Natural Resources, and 14
of Transportation and the Commissioner of Buildings and General Services. 15
* * * 16
(3) For each sector, the report shall provide: 17
(A) In millions of British thermal units (MMBTUs) for the most 18
recent calendar year for which data are available, the total amount of energy 19
consumed, the amount of clean and renewable energy consumed, and the 20
percentage of clean and renewable energy consumed. For the electricity 21 BILL AS INTRODUCED H.289
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sector, the report shall also state the amounts in megawatt hours (MWH) of 1
retail sales and load for Vermont as well as for each retail electricity provider 2
and the Vermont and New England summer and winter peak electric demand, 3
including the hour and day of peak demand. 4
(B) Projections of the energy reductions and shift to clean and 5
renewable energy expected to occur under existing policies, technologies, and 6
markets. The most recent available data shall be used to inform these 7
projections and shall be provided as a supplement to the data described in 8
subdivision (A) of this subdivision (3). 9
* * * 10
(7) The report shall include the following information on progress 11
toward meeting the Renewable Clean Energy Standard (RES CES): 12
(A) An assessment of the costs and benefits of the RES CES based 13
on the most current available data, including rate and economic impacts, 14
customer savings, technology deployment, greenhouse gas emission reductions 15
achieved both relative to 10 V.S.A § 578 requirements and societally, fuel 16
price stability, effect on transmission and distribution upgrade costs, and any 17
recommended changes based on this assessment. 18
(i) For the most recent calendar year for which data is available, 19
each retail electricity provider’s retail sales and load, in MWh; required 20
amounts of clean and renewable energy for each category of the RES CES as 21 BILL AS INTRODUCED H.289
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set forth in section 8005 of this title; and amounts of clean and renewable 1
energy and tradeable clean and renewable energy credits eligible to satisfy the 2
requirements of sections 8004 and 8005 of this title actually owned by the 3
Vermont retail electricity providers, expressed as a percentage of retail sales 4
and total load MWh purchases made by Vermont retail electricity providers to 5
meet demand. 6
* * * 7
(iv) The report shall assess how costs and benefits of the RES 8
CES are being distributed across State, to the extent possible given available 9
data, by retail electricity service territory, municipality, and environmental 10
justice focus populations, as defined by 3 V.S.A. § 6002. Such an assessment 11
shall consider metrics to monitor affordability of electric rates. 12
(B) Projections, looking at least 10 years ahead, of the impacts of the 13
RES CES. 14
* * * 15
(iii) The Department shall project, for the State, the impact of the 16
RES CES in each of the following areas: electric utility rates, total energy 17
consumption, electric energy consumption, fossil fuel consumption, and 18
greenhouse gas emissions. The report shall compare the amount or level in 19
each of these areas with and without the program. 20 BILL AS INTRODUCED H.289
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(C) An assessment of whether the requirements of the RES CES have 1
been met to date, and any recommended changes needed to achieve those 2
requirements. 3
(D) A summary of the activities of distributed renewable generation 4
programs that support the achievement of the RES CES, including: 5
* * * 6
Sec. 2. 30 V.S.A. § 8002 is amended to read: 7
§ 8002. DEFINITIONS 8
As used in this chapter: 9
* * * 10
(7) “Environmental attributes” means the characteristics of a plant that 11
enable the energy it produces to qualify as clean or renewable energy and 12
include any and all benefits of the plant to the environment such as avoided 13
emissions or other impacts to air, water, or soil that may occur through the 14
plant’s displacement of a nonclean or nonrenewable energy source. 15
* * * 16
(25) “Clean energy” means both renewable energy, as defined in this 17
section, as well as electricity produced using a technology that does not emit 18
greenhouse gases as a by-product of energy generation. 19
* * * 20 BILL AS INTRODUCED H.289
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(29) “RES” “CES” means the Renewable Clean Energy Standard 1
established under sections 8004 and 8005 of this title. 2
* * * 3
(33) “Tradeable zero emissions credits” or “ZECs” means all of the 4
environmental attributes associated with a single unit of energy generated by a 5
clean energy source where: 6
(A) those attributes are transferred or recorded separately from that 7
unit of energy; 8
(B) the party claiming ownership of the tradeable zero emissions 9
credits has acquired the exclusive legal ownership of all, and not less than all, 10
the environmental attributes associated with that unit of energy; and 11
(C) exclusive legal ownership can be verified through an auditable 12
contract path or pursuant to the system established or authorized by the 13
Commission or any program for tracking and verification of the ownership of 14
environmental attributes of energy legally recognized in any state and 15
approved by the Commission. 16
Sec. 3. 30 V.S.A. § 8004 is amended to read: 17
§ 8004. SALES OF ELECTRIC ENERGY; RENEWABLE CLEAN 18
ENERGY STANDARD (RES CES) 19
(a) Establishment Expansion; requirements. The RES Renewable Energy 20
Standard is established expanded to become the CES. Under this program, a 21 BILL AS INTRODUCED H.289
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retail electricity provider shall not sell or otherwise provide or offer to sell or 1
provide electricity in the State of Vermont without ownership of sufficient 2
energy produced by clean and renewable energy plants or sufficient tradeable 3
renewable energy and zero emissions credits from plants whose energy is 4
capable of delivery in New England that reflect the required amounts of clean 5
and renewable energy set forth in section 8005 of this title or without support 6
of energy transformation projects in accordance with that section. A retail 7
electricity provider may meet the required amounts of clean and renewable 8
energy through eligible tradeable renewable energy and zero emissions credits 9
that it owns and retires, eligible clean and renewable energy resources with 10
environmental attributes still attached, or a combination of those credits and 11
resources. 12
(b) Rules. The Commission shall adopt update the rules that are necessary 13
to allow the Commission and the Department to implement and supervise 14
further the implementation and maintenance of the RES CES. 15
(c) RECS RECs and ZECs; banking. The Commission shall allow a 16
provider that has met the required amount amounts of renewable energy or 17
zero emissions credits in a given year, commencing with 2017, to retain 18
tradeable renewable energy or zero emissions credits created or purchased in 19
excess of that amount for application to the provider’s required amount of 20
clean or renewable energy in one of the following three years. 21 BILL AS INTRODUCED H.289
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(d) Alternative compliance payment. In lieu of purchasing renewable 1
energy or tradeable renewable energy or zero emissions credits or supporting 2
energy transformation projects to satisfy the requirements of this section and 3
section 8005 of this title, a retail electricity provider in this State may pay to 4
the Vermont Clean Energy Development Fund established under section 8015 5
of this title an alternative compliance payment at the applicable rate set forth in 6
section 8005. The administrator of the Vermont Clean Energy Development 7
Fund shall use the payment from a retail electricity provider electing to make 8
an alternative compliance payment to satisfy its obligations under subdivisions 9
8005(a)(1), 8005(a)(2), 8005(a)(4), and 8005(a)(5) of this title for the 10
development of renewable energy plants that are intended to serve and benefit 11
customers with low income of the retail electricity provider that has made the 12
payment. Such plants shall be located within the provider’s service territory, if 13
feasible. In the event that such a payment is insufficient to enable the 14
development of a renewable energy plant, the administrator may use the 15
payment for other initiatives allowed under section 8015 of this title that will 16
benefit customers with low income of the retail electricity provider that has 17
made the payment. As used in this subsection (d), “customer with low 18
income” means a person purchasing energy from a retail electricity provider 19
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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income, adjusted for family size, as published annually by the U.S. Department 1
of Housing and Urban Development. 2
* * * 3
(f) Joint efforts. Retail electricity providers may engage in joint efforts to 4
meet one or more categories within the RES CES. 5
Sec. 4. 30 V.S.A. § 8005 is amended to read: 6
§ 8005. RES CES CATEGORIES 7
(a) Categories. This section specifies five categories of required resources 8
to meet the requirements of the RES CES established in section 8004 of this 9
title: total clean and renewable energy, distributed renewable generation, 10
energy transformation, new renewable energy, and load growth renewable 11
energy. In order to support progress toward Vermont’s climate goals and 12
requirements, a provider may, but shall not be required to, exceed the 13
statutorily required amounts under this section. 14
(1) Total clean and renewable energy. 15
(A) Purpose; establishment. To encourage the economic and 16
environmental benefits of renewable energy, this subdivision establishes, for 17
the RES CES, minimum total amounts of clean and renewable energy within 18
the supply portfolio of each retail electricity provider. To satisfy this 19
requirement, a provider may use clean energy generated within New England 20
or renewable energy with environmental attributes attached or any class of 21 BILL AS INTRODUCED H.289
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tradeable renewable energy credits generated by any renewable energy plant 1
whose energy is capable of delivery in New England. 2
(B) Required amounts. 3
(i) The amounts of total clean and renewable energy required by 4
this subsection (a) shall be 63 percent of each retail electricity provider’s 5
annual load during the year beginning on January 1, 2025, increasing by at 6
least an additional four 7.4 percent each third January 1 thereafter until 7
reaching 100 percent: on and after January 1, 2030. 8
(i) on and after January 1, 2035 for a retail electricity provider who 9
serves a single customer that takes service at 115 kilovolts and each municipal 10
retail electricity provider formed under local charter or chapter 79 of this title; 11
and 12
(ii) on and after January 1, 2030, for all other retail electricity 13
providers The amount of total renewable energy required by this subsection (a) 14
shall be 55 percent of each retail electricity provider’s annual electricity 15
purchases during the year beginning on January 1, 2027, increasing by an 16
additional four percent each January 1 hereafter, until reaching 75 percent on 17
and after January 1, 2032. 18
* * * 19
(2) Distributed renewable generation. 20 BILL AS INTRODUCED H.289
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(A) Purpose; establishment. This subdivision establishes a 1
distributed renewable generation category for the RES CES. This category 2
encourages the use of distributed generation to support the reliability of the 3
State’s electric system;, reduce line losses;, contribute to avoiding or deferring 4
improvements to that system necessitated by transmission or distribution 5
constraints;, and diversify the size and type of resources connected to that 6
system. This category requires the use of renewable energy for these purposes 7
to reduce environmental and health impacts from air emissions that would 8
result from using other forms of generation. 9
* * * 10
(E) Avoiding transmission and distribution constraints. 11
(i) Procurements by retail electricity providers and programs that 12
support meeting the requirements of this subdivision (2) shall avoid 13
development of new facilities in generation constrained areas of the 14
distribution or transmission system that would not need to be expanded but for 15
the addition of additional generation, unless costs associated with development 16
in those generation constrained areas are not passed through to ratepayers 17
through the cost to utilities to purchase the generation or in any other manner. 18
To implement the intent of this section, the Commission may update or adopt 19
rules, including rules that require a locational adjustor fee. 20 BILL AS INTRODUCED H.289
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(ii) A retail electricity provider may petition the Commission for 1
relief of the requirements of subdivision (C) of this subdivision (a)(2) or the 2
associated alternative compliance payment, which may be granted if the 3
provider can demonstrate that it is unable to meet its requirements without 4
extensive upgrades to the transmission or distribution infrastructure that would 5
be borne by the provider’s ratepayers. If relief is granted, the retail electricity 6
provider shall be required to instead acquire new renewable generation from 7
facilities that qualify to meet the requirements of subdivision (4) of this 8
subsection (a), in addition to the requirements as described in subdivision (4) 9
of this subsection (a). 10
(3) Energy transformation. 11
(A) Purpose; establishment. This subdivision (3) establishes an 12
energy transformation category for the RES CES. This category encourages 13
Vermont retail electricity providers to support additional distributed renewable 14
generation or to support other projects to reduce fossil fuel consumed by their 15
customers and the emission of greenhouse gases attributable to that 16
consumption. A retail electricity provider may satisfy the energy 17
transformation requirement through distributed renewable generation in 18
addition to the generation used to satisfy subdivision (2) of this subsection (a) 19
or energy transformation projects or a combination of such generation and 20
projects. 21 BILL AS INTRODUCED H.289
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* * * 1
(4) New renewable energy. 2
(A) Purpose; establishment. This subdivision (4) establishes a new 3
regional renewable energy category for the RES CES. This category 4
encourages the use of new renewable generation to support the reliability of 5
the regional ISO-NE electric system. To satisfy this requirement, a provider 6
shall use new renewable energy with environmental attributes attached or any 7
class of tradeable renewable energy credits generated by any renewable energy 8
plant coming into service after January 1, 2010 whose energy is capable of 9
delivery in New England. 10
* * * 11
(6) Alternative compliance rates. 12
(A) The alternative compliance payment rates for the categories 13
established by subdivisions (1)–(3) of this subsection (a) shall be: 14
(i) total clean and renewable energy requirement — $0.01 per 15
kWh; and 16
(ii) distributed renewable generation and energy transformation 17
requirements — $0.06 per kWh. 18
(B) The Commission shall adjust these rates for inflation annually 19
commencing January 1, 2018, using the CPI. 20 BILL AS INTRODUCED H.289
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(C) For the distributed renewable energy, new renewable energy and 1
load growth requirements, it shall be $0.04 per kWh annually commencing on 2
January 1, 2025, with calculations for inflation beginning on January 1, 2023. 3
* * * 4
Sec. 5. 30 V.S.A. § 8006 is amended to read: 5
§ 8006. TRADEABLE CREDITS; ENVIRONMENTAL ATTRIBUTES; 6
RECOGNITION, MONITORING, AND DISCLOSURE 7
(a) The Commission shall establish or adopt a amend and expand its system 8
of tradeable renewable energy credits for renewable resources that may be 9
earned by electric generation qualifying for the prior RES to include clean 10
energy generation. The system shall recognize tradeable renewable energy 11
credits monitored and traded on the New England Generation Information 12
System (GIS); shall provide a process for the recognition, approval, and 13
monitoring of environmental attributes attached to clean and renewable energy 14
that are eligible to satisfy the requirements of sections 8004 and 8005 of this 15
title but are not monitored and traded on the GIS; and shall otherwise be 16
consistent with regional practices. 17
(b) The Commission shall ensure that all electricity provider and provider-18
affiliate disclosures and representations made with regard to a provider’s 19
portfolio are accurate and reasonably supported by objective data. Further, the 20
Commission shall ensure that providers disclose the types of generation used 21 BILL AS INTRODUCED H.289
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and shall clearly distinguish between energy or tradeable energy credits 1
provided from clean, renewable, and nonrenewable energy sources and 2
existing and new renewable energy. 3
Sec. 6. 30 V.S.A. § 8008 is amended to read: 4
§ 8008. AGREEMENTS; ATTRIBUTE REVENUES; DISPOSITION BY 5
COMMISSION 6
(a) As used in this section, “the revenues” means revenues that are from the 7
sale, through tradeable clean or renewable energy certificates or other means, 8
of environmental attributes associated with the generation of clean and 9
renewable energy from a system of generation resources with a total plant 10
capacity greater than 200 MW and that are received by a Vermont retail 11
electricity provider on or after May 1, 2012, pursuant to an agreement, 12
contract, memorandum of understanding, or other transaction in which a 13
person or entity agrees to transfer such revenues or rights associated with such 14
attributes to the provider. 15
* * * 16
Sec. 7. 30 V.S.A. § 8005b is added to read: 17
§ 8005b. RENEWABLE ENERGY FOR COMMUNITIES PROGRAM 18
(a) Establishment. The Renewable Energy for Communities Program is 19
established. To achieve the goals of subdivision 8005(a)(2) of this title, the 20
Commission shall develop the Renewable Energy for Communities Program 21 BILL AS INTRODUCED H.289
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that meets the eligibility requirements of this section, which may be 1
implemented by rule, order, or contract. Retail electricity providers shall issue 2
periodic solicitations subject to the requirements of the Renewable Energy for 3
Communities Program. 4
(b) Eligible resources. Distributed renewable generation, as defined in 5
subdivision 8002(a)(2) of this title, shall be eligible to participate in this 6
program. 7
(c) Objectives. It shall be the objective of the Renewable Energy for 8
Communities Program to develop distributed generation at least-cost to 9
ratepayers that is directed by, developed in consultation with, or directly 10
benefits communities by one or more of the following: 11
(1) delivering benefits from renewable energy systems to customers who 12
have historically been marginalized or faced inequitable access to the benefits 13
of renewable energy, including environmental justice focus populations as 14
defined by 3 V.S.A. § 6002; 15
(2) supporting community participation in the development and 16
governance of distributed renewable generation; 17
(3) supporting the delivery of benefits to tenants of buildings that are 18
designated as affordable housing; 19
(4) supporting the delivery of benefits to school-and municipal-owned 20
buildings; and 21 BILL AS INTRODUCED H.289
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(5) advancing other priority issues as identified during program 1
development as detailed under subsection (f) of this section. 2
(d) Capacity requirement. Retail electricity providers shall issue 3
solicitations for distributed renewable generation equivalent to a percentage of 4
their requirement under subdivision 8005(a)(2) of this title, as determined by 5
the Commission. 6
(e) Solicitation requirement. On a schedule to be developed by the 7
Commission, each retail electricity provider with an obligation under 8
subdivision 8005(a)(2) of this title shall issue solicitations for eligible 9
distributed generation until it has met its capacity requirement. Coordinated 10
solicitations shall be encouraged. Each retail electric provider shall review 11
proposed projects in its service territory according to a set of consistent core 12
criteria as approved by the Commission and consistent with the objectives set 13
forth in this section. The requirements for the retail electricity providers that 14
are already 100 percent renewable may be limited by the Commission to an 15
amount equal to the provider’s requirement to meet distributed generation with 16
load growth above the baseline year of 2024 and allowed on a less frequent 17
solicitation schedule. 18
(f) Program development. On or before January 1, 2027, the Commission 19
shall implement the Renewable Energy for Communities Program. In 20
developing the Program, the Commission shall: 21 BILL AS INTRODUCED H.289
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(1) determine principles to guide the development of eligible distributed 1
generation and consider whether additional objectives for the Program as 2
defined under subsection (a) of this section are necessary; 3
(2) determine whether a percentage of each retail electricity provider’s 4
capacity requirement should be reserved to serve specific customers who have 5
previously experienced inequitable access to the benefits of renewable energy 6
and determine any minimum requirement for those projects procured under 7
this program for serving those specific customers; 8
(3) establish a set of consistent review criteria to be used by all retail 9
electricity providers in solicitations for eligible distributed generation 10
considering issues in addition to cost, such as community support or 11
engagement while developing the proposal; potential for local workforce 12
development and other community benefits to be delivered to the host 13
community; location of the project, including whether it is in a constrained 14
area of the distribution or transmission system or in an area identified as a 15
preferred location in a regional or municipal enhanced energy plan pursuant to 16
24 V.S.A. § 4352; and anticipated generation profile; 17
(4) identify reporting requirements and necessary metrics to monitor 18
how benefits and burdens from the Program are distributed across ratepayers; 19
(5) consult with individuals representing a diverse array of perspectives, 20
including at minimum representation from industry, retail electric providers, 21 BILL AS INTRODUCED H.289
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environmental advocates, State agencies, regional and local governments, 1
communities identified as environmental justice focus populations under 3 2
V.S.A. § 6002, municipalities experiencing high energy burden as identified by 3
Efficiency Vermont’s 2023 Energy Burden Report, renters, and multifamily 4
affordable housing representatives; 5
(6) determine a process for exempting or deferring retail electricity 6
provider requirements under this section in the event no proposals below the 7
applicable alternative compliance payment are received in response to a retail 8
electricity provider’s solicitation; 9
(7) determine a process for evaluating and reporting on the success of 10
the Program in achieving the stated goals; and 11
(8) consider other issues as identified throughout the process. 12
(g) The Commission may use its authority under sections 20 and 21 of this 13
title as may be necessary to support engagement and technical analysis 14
necessary to develop the Renewable Energy for Communities Program. 15
Funding may be used to support per diem compensation and reimbursement of 16
expenses as permitted under 32 V.S.A. § 1010 to conduct engagement with 17
parties who are not otherwise compensated by their employer. 18
Sec. 8. THERMAL SECTOR PROGRAM FUNDS 19
(a) For the calendar years 2025 and 2026, up to $7,000,000.00 of the 20
revenues collected by the energy efficiency charge established 30 V.S.A. 21 BILL AS INTRODUCED H.289
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§ 209(d)(3)(B) shall be allocated by the Public Utility Commission to the Fuel 1
Efficiency Fund established under 30 V.S.A. § 203a. For the calendar years 2
2027, 2028, and 2029, $15,000,000.00 of the revenues collected by the energy 3
efficiency charge established 30 V.S.A. § 209(d)(3)(B) shall be allocated by 4
the Public Utility Commission to the Fuel Efficiency Fund established under 5
30 V.S.A. § 203a. 6
(b) Of the funds described in subsection (a) of this section, $900,000.00 per 7
year shall be allocated to the Agency of Natural Resources to fund the Energy 8
Navigators Program delivered through the Community Action Agencies and 9
$750,000.00 per year will be allocated to the Department for Children and 10
Families, Office of Economic Opportunity to support heat pump deployment 11
through the Weatherization Assistance Program. 12
(c) In allocating the remaining balance in the Fuel Efficiency Fund, the 13
Department of Public Service shall prioritize weatherization assistance for 14
customers with low and moderate income and consider issues such as current 15
and projected funding amounts and maintaining continuity in workforce 16
associated with delivering thermal sector programs. 17
(d) The total amount collected from the energy efficiency charge for the 18
calendar years 2027, 2028, and 2029 shall be no greater than the amount 19
authorized to be collected in 2026. 20 BILL AS INTRODUCED H.289
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* * * Electric Vehicle Incentives * * * 1
Sec. 9. 30 V.S.A. § 209(e) is amended to read: 2
(e) Thermal energy and process fuel efficiency funding. 3
(1) Each of the following shall be used to deliver thermal energy and 4
process fuel energy efficiency services in accordance with this section for 5
unregulated fuels to Vermont consumers of such fuels. In addition, the 6
Commission may authorize an entity appointed to deliver such services under 7
subdivision (d)(2)(B) of this section to use monies subject to this subsection 8
for the engineering, design, and construction of facilities for the conversion of 9
thermal energy customers using fossil fuels to district heat if the majority of 10
the district’s energy is from biomass sources, the district’s distribution system 11
is highly energy efficient, and such conversion is cost effective. 12
* * * 13
(B) Net For calendar years 2025, 2026, 2027, 2028, and 2029, net 14
revenues above costs from the sale of carbon credits under the cap and trade 15
program established under section 255 of this title, or $6,000,000.00, 16
whichever is lower, which shall be deposited into the Electric Efficiency Fund 17
established by this section. 18
* * * 19 BILL AS INTRODUCED H.289
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Sec. 10. 30 V.S.A. § 255(d) is amended to read: 1
(d) Appointment of consumer trustees. The Public Utility Commission, by 2
rule, order, or competitive solicitation, may appoint one or more consumer 3
trustees to receive, hold, bank, and sell tradable carbon credits created under 4
this program. Trustees may include Vermont electric distribution utilities, the 5
fiscal agent collecting and disbursing funds to support the statewide efficiency 6
utility, or a financial institution or other entity with the expertise and financial 7
resources to manage a portfolio of carbon credits for the long-term benefit of 8
Vermont energy consumers. The For the calendar years 2025, 2026, 2027, 9
2028, and 2029, the net proceeds above costs from the sale of carbon credits or 10
$6,000,000.00, whichever is lower, shall be deposited into the Electric 11
Efficiency Fund established under subdivision 209(d)(3) of this title. These 12
funds shall be used by the entity or entities appointed under subdivision 13
209(d)(2)(B) of this title to help meet the building efficiency goals established 14
under 10 V.S.A. § 581 by delivering heating and process-fuel energy 15
efficiency services to Vermont consumers who use such fuel. Any proceeds 16
above costs from the sale of carbon credits that exceed $6,000,000.00 shall be 17
allocated to the Agency of Transportation for the Incentive Program for New 18
Plug-in Electric Vehicles, MileageSmart, and Replace Your Ride Program, as 19
defined in 19 V.S.A. § 2902, 19 V.S.A. § 2903, and 19 V.S.A. § 2904 20
respectively. 21 BILL AS INTRODUCED H.289
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Sec. 11. 19 V.S.A. § 2908 is added to read: 1
§ 2908. ALLOCATION OF APPROPRIATIONS 2
The Secretary, in the Secretary’s discretion, may allocate appropriated 3
funds among the programs established by this chapter. 4
* * * GWSA Amendments * * * 5
Sec. 12. 10 V.S.A. § 578 is amended to read: 6
§ 578. GREENHOUSE GAS REDUCTION REQUIREMENTS 7
(a) Greenhouse gas reduction requirements. Vermont shall reduce achieve 8
net zero emissions of greenhouse gases from within the geographical 9
boundaries of the State and those emissions outside the boundaries of the State 10
that are caused by the use of energy in Vermont, as measured and inventoried 11
pursuant to section 582 of this title, by: on or before January 1, 2035. 12
(1) not less than 26 percent from 2005 greenhouse gas emissions by 13
January 1, 2025 pursuant to the State’s membership in the United States 14
Climate Alliance and commitment to implement policies to achieve the 15
objectives of the 2016 Paris Agreement; 16
(2) not less than 40 percent from 1990 greenhouse gas emissions by 17
January 1, 2030 pursuant to the State’s 2016 Comprehensive Energy Plan; and 18
(3) not less than 80 percent from 1990 greenhouse gas emissions by 19
January 1, 2050 pursuant to the State’s 2016 Comprehensive Energy Plan 20
Vermont shall continue to implement the policies to achieve the objectives of 21 BILL AS INTRODUCED H.289
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the 2016 Paris Agreement and remain at net zero greenhouse gas emissions 1
across all sectors into the future. 2
* * * 3
Sec. 13. 10 V.S.A. § 590 is amended to read: 4
§ 590. DEFINITIONS 5
As used in this chapter: 6
(1) “Adaptation” means reducing vulnerability and advancing resilience 7
through planned and implemented enhancements to, or avoiding degradation 8
of, natural and built systems and structures. 9
(2) “Greenhouse gas” has the same meaning as in section 552 of this 10
title. 11
(3) “Mitigation” means reduction of anthropogenic greenhouse gas 12
emissions, and preservation and enhancement of natural systems to sequester 13
and store carbon, in order to stabilize and reduce greenhouse gases in the 14
atmosphere. 15
(4) “Net zero greenhouse gas emissions” means the total amount of 16
greenhouse gases released into the atmosphere after accounting for the amount 17
of greenhouse gases that are naturally absorbed or sequestered is at or less than 18
zero across all sectors. 19 BILL AS INTRODUCED H.289
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(5) “Resilience” means the capacity of individuals, communities, and 1
natural and built systems to withstand and recover from climatic events, trends, 2
and disruptions. 3
Sec. 14. 10 V.S.A. § 591 is amended to read: 4
§ 591. VERMONT CLIMATE COUNCIL 5
(a) There is created the Vermont Climate Council (Council). The Council 6
shall be advisory and composed of the following members: 7
(1) the Secretary of Administration Natural Resources or designee, who 8
shall serve as the Chair of the Council; 9
(2) the Secretary of Natural Resources or designee State Climatologist 10
or designee; 11
(3) the Secretary of Agriculture, Food and Markets or designee; 12
(4) the Secretary of Commerce and Community Development or 13
designee; 14
(5) the Secretary of Human Services or designee; 15
(6) the Secretary of Transportation or designee; 16
(7) the Commissioner of Public Safety or designee; 17
(8) the Commissioner of Public Service or designee; 18
(9) one member to represent municipal governments, appointed by the 19
Governor; 20 BILL AS INTRODUCED H.289
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(10) one member to represent the rural communities, appointed by the 1
Governor; 2
(11) the following members who shall be appointed by the Speaker of 3
the House General Assembly: 4
(A) one member with expertise and professional experience in the 5
design and implementation of programs to reduce greenhouse gas emissions; 6
(B) one member to represent rural communities; 7
(C) one member to represent municipal governments; 8
(D) one member to represent distribution utilities; 9
(E)(B) one member to represent a statewide environmental 10
organization; 11
(F)(C) one member to represent the fuel sector; 12
(G) one member with expertise in climate change science; and 13
(H)(D) one member to represent Vermont manufacturers. 14
(10) the following members who shall be appointed by the Committee on 15
Committees: 16
(A) one member with expertise in the design and implementation of 17
programs to increase resilience to and respond to natural disasters resulting 18
from climate change; 19
(B)(E) one member to represent the clean energy sector; 20
(C)(F) one member to represent the small business community; 21 BILL AS INTRODUCED H.289
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(D)(G) one member to represent the Vermont Community Action 1
Partnership; 2
(E)(H) one member to represent the farm and forest sector; and 3
(F)(I) one youth member; and 4
(G) one member of a Vermont-based organization with expertise in 5
energy and data analysis. 6
(b) The Council shall make recommendations to the Secretary of Natural 7
Resources and in formulating the recommendations the Council shall: 8
(1) Identify, analyze, and evaluate strategies and programs to reduce 9
greenhouse gas emissions; achieve the State’s reduction requirements pursuant 10
to section 578 of this title; and build resilience to prepare the State’s 11
communities, infrastructure, and economy to adapt to the current and 12
anticipated effects of climate change, including:. 13
(A) creating an inventory of all existing programs that impact 14
greenhouse gas emissions and their efficacy; 15
(B) evaluating and analyzing the technical feasibility and cost-16
effectiveness of existing strategies and programs and identifying, evaluating, 17
and analyzing new strategies and programs that are based upon emerging 18
scientific and technical information; 19 BILL AS INTRODUCED H.289
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(C) analyzing each source or category of sources of greenhouse gas 1
emissions and identifying which strategies and programs will result in the 2
largest greenhouse gas emissions reductions in the most cost-effective manner; 3
(D) identifying, analyzing, and evaluating public and private 4
financing strategies to support the transition to a reduced greenhouse gas 5
emissions economy and a more resilient State; and 6
(E) evaluating and analyzing existing strategies and programs that 7
build resilience, and identifying, evaluating, and analyzing new strategies and 8
programs to prepare the State’s communities, infrastructure, and economy to 9
adapt to the current and anticipated effects of climate change. 10
(2) On or before December 1, 2021, adopt Adopt the Vermont Climate 11
Action Plan (Plan) and update the Plan on or before July 1 every four years 12
thereafter, the first of which was adopted on December 1, 2021. On or before 13
December 15, 2026, the Secretary of Natural Resources, in collaboration with 14
the Department of Public Service and other relevant agencies and departments 15
of State government, shall deliver a companion implementation strategy and 16
aggressive-yet-achievable timeline for achieving net zero emissions across all 17
sectors by 2035. The companion implementation strategy shall include long-18
term funding mechanisms that prioritizes use of existing resources. On or 19
before July 1 every five years thereafter, the Secretary of Natural Resources 20
shall consider the recommendations of the Council and shall update the Plan. 21 BILL AS INTRODUCED H.289
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The Council shall finalize its recommendations on or before January 1 of the 1
year that the Plan is due. The Plan shall set forth recommend the specific 2
affordable and practicable initiatives, programs, and strategies that the State 3
shall pursue will consider implementing to reduce greenhouse gas meet net 4
zero emissions reductions; achieve the State’s 2035 reduction requirements 5
target pursuant to section 578 of this title; and build resilience to prepare the 6
State’s communities, infrastructure, and economy to adapt to the current and 7
anticipated effects of climate change. 8
(3) Identify the means to accurately measure: 9
(A) the State’s greenhouse gas emissions and progress towards 10
meeting the reduction requirements pursuant to section 578 of this title, 11
including publishing emissions data in a timely manner; 12
(B) the effectiveness of the specific initiatives, programs, and 13
strategies set forth in the Plan and updates to the Plan in reducing greenhouse 14
gas emissions; 15
(C) the effect of climate change on the State’s climate, wildlife, and 16
natural resources; and 17
(D) the existing resilience of the State’s communities, infrastructure, 18
and economy and progress towards improving resilience to adapt to the current 19
and anticipated effects of climate change. 20 BILL AS INTRODUCED H.289
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(4) Provide guidance to the Secretary of Natural Resources concerning 1
the form, content, and subject matter of rules to be adopted recommended for 2
adoption pursuant to section 593 of this chapter. 3
(c) The Council shall create the subcommittees listed in this subsection and 4
may also create other subcommittees to advise the Council, and assist in 5
preparing the Plan, and carry out other duties. The Council may appoint 6
members of the Council to serve as members of subcommittees and may also 7
appoint individuals who are not members of the Council to serve as members 8
of subcommittees. 9
* * * 10
(3) Just Transitions Subcommittee. This subcommittee shall focus on 11
ensuring that strategies to reduce net greenhouse gas emissions and to build 12
resilience to adapt to the effects of climate change benefit and support all 13
residents of the State fairly and equitably. This subcommittee shall ensure that 14
strategies consider the disproportionate impact of climate change on rural, low-15
income, and marginalized communities and that programs and incentives for 16
building resilience are designed to be accessible to all Vermonters and do not 17
unfairly burden any groups, communities, geographic locations, or economic 18
sectors. This subcommittee may adopt a measurement tool to assess the 19
equitability of programs and strategies considered by the Council. 20
* * * 21 BILL AS INTRODUCED H.289
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(d) The Council shall recommend necessary legislation to the General 1
Assembly concerning: 2
(1) adopting market-based or alternative compliance mechanisms as part 3
of the State’s greenhouse gas emissions reduction strategies; 4
(2) changes to land use and development, including to chapter 151 of this 5
title and 30 V.S.A. § 248, to reduce greenhouse gas emissions and promote 6
resilience in response to climate change; 7
(3) statutory authority necessary to implement the Plan; and 8
(4) any other matter the Council deems appropriate. 9
(e) The Council shall have the administrative, and technical, and legal 10
assistance of the Agency of Natural Resources and the Department of Public 11
Service and may request the assistance of any Executive Branch Agency 12
agency and Department department. 13
(f)(e) A majority of the sitting members of the Council shall constitute a 14
quorum, and action taken by the Council may be authorized by a majority of 15
the members present and voting at any meeting at which a quorum is present. 16
The Council may permit any or all members to participate in a meeting by, or 17
conduct the meeting through the use of, any means of communication, 18
including electronic, telecommunications, and video- or audio-conferencing 19
technology, by which all members participating may simultaneously or 20
sequentially communicate with each other during the meeting. A member 21 BILL AS INTRODUCED H.289
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participating in a meeting by this means is deemed to be present in person at 1
the meeting. The Council shall meet at the call of the Chair or a majority of 2
the members of the Council, and the Council may elect officers and adopt any 3
other procedural rules as it shall determine necessary and appropriate to 4
perform its work. 5
(g)(f) Members of the Council and members of subcommittees who are not 6
State employees shall be entitled to per diem compensation and reimbursement 7
of expenses for each day spent in the performance of their duties, as permitted 8
under 32 V.S.A. § 1010. These payments shall be made from monies 9
appropriated to the Agency of Natural Resources. 10
(h)(g) The members of the Council appointed pursuant to subdivision (a) 11
(9)(11) of this section shall be appointed to initial terms of two years, and 12
members appointed pursuant to subdivision (a)(10) of this section shall be 13
appointed to initial terms of three years. Thereafter, each appointed member 14
shall serve a term of three years or until his or her a member’s earlier 15
resignation or removal. A vacancy shall be filled by the appointing authority 16
for the remainder of the unexpired term. An appointed member shall not serve 17
more than three two full consecutive three-year terms. 18
(i)(h) On or before January 15, 2021 and every January 15 thereafter, the 19
Council shall submit a written report to the General Assembly concerning the 20
Council’s activities and the State’s progress towards meeting the 2035 net 21 BILL AS INTRODUCED H.289
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greenhouse gas reduction requirements pursuant to section 578 of this title. On 1
or before November 1, 2021 and every second November 1 thereafter, the 2
Director of Vermont Emergency Management shall file a report with the 3
Council concerning Vermont’s overall municipal resilience to increased 4
hazards presented by climate change that shall include hazard mitigation plans, 5
local emergency management plans, and survey results as deemed appropriate 6
by the Director. Subsequent reports shall include updates to document 7
progress in local resilience. The report shall inform Council recommendations 8
on policies to address gaps in local resilience. 9
Sec. 15. 10 V.S.A. § 592 is amended to read: 10
§ 592. THE VERMONT CLIMATE ACTION PLAN 11
(a) On or before December 1, 2021, the Vermont Climate Council 12
(Council) shall adopt adopted the Vermont Climate Action Plan (Plan) and. 13
The Secretary of Natural Resources shall update the Plan on or before July 1 14
every four five years thereafter. 15
(b) The Plan shall set forth recommend the specific affordable and 16
practicable initiatives, programs, and strategies, including regulatory and 17
legislative changes, necessary to achieve the State’s net zero greenhouse gas 18
emissions reduction requirements across all sectors pursuant to section 578 of 19
this title and build resilience to prepare the State’s communities, infrastructure, 20
and economy to adapt to the current and anticipated effects of climate change. 21 BILL AS INTRODUCED H.289
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The Plan shall include those specific affordable and practicable initiatives, 1
programs, and strategies that will: 2
* * * 3
(c) The analysis, development, and selection of the specific initiatives, 4
programs, and strategies contained in the Plan and updates to the Plan shall be 5
based upon: 6
(1) the Council’s analysis and evaluation of strategies and programs 7
pursuant to subdivision 591(b)(1) of this chapter; 8
(2) reports, plans, and information pertaining to greenhouse gas 9
emissions reduction and climate resilience strategies from the Agency of 10
Natural Resources, the Department of Public Service, other State agencies and 11
departments, and, where appropriate, the State Comprehensive Energy Plan 12
prepared pursuant to 30 V.S.A. § 202b and the 2018 Vermont Climate Action 13
Commission Report to the Governor; and 14
(3) other reports, plans, and information. 15
(d) The specific initiatives, programs, and strategies contained in To the 16
extent practicable and affordable, the Plan and updates to the Plan shall further 17
the following objectives: 18
(1) to prioritize the most cost-effective, technologically feasible, and 19
equitable greenhouse gas emissions reduction pathways and adaptation and 20
preparedness strategies informed by scientific and technical expertise; 21 BILL AS INTRODUCED H.289
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(2) to provide for net zero greenhouse gas emissions reductions that 1
reflect the relative contribution of each source or category of source of 2
emissions; 3
* * * 4
(e) The Plan updated Plans shall form the basis for the recommend rules 5
adopted for consideration by the Secretary of Natural Resources pursuant to 6
section 593 of this chapter. If the Council fails to adopt the Plan or update the 7
Plan as required by this chapter, the The Secretary shall proceed with adopting 8
and implementing rules pursuant to subsection 593(j) of this chapter that, in the 9
Secretary’s discretion, are cost effective, practicable, and designed to achieve 10
the net zero greenhouse gas emissions reductions requirements pursuant to 11
section 578 of this title. 12
Sec. 16. 10 V.S.A. § 593 is amended to read: 13
§ 593. RULES 14
(a) The Secretary of Natural Resources shall consider and adopt rules 15
pursuant to 3 V.S.A. chapter 25, which are, in the Secretary’s discretion, cost 16
effective, affordable, practicable, and designed to achieve the net zero 17
greenhouse gas emissions reductions requirements pursuant to section 578 of 18
this title and are consistent with the Vermont Climate Action Plan (Plan). In 19
adopting rules pursuant to this section, the Secretary shall: 20 BILL AS INTRODUCED H.289
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(1) Ensure that Consider whether the rules are consistent with the 1
specific initiatives, programs, and strategies set forth in the Plan and updates to 2
the Plan; follow consider the Vermont Climate Council’s guidance provided 3
pursuant to subdivision 591(b)(4) of this chapter; and further the objectives 4
pursuant to subsection 592(d) of this chapter. 5
(2) Develop a detailed record containing facts; data; and legal, scientific, 6
and technical information sufficient to establish a reasonable basis to believe 7
that the rules shall achieve the State’s net zero greenhouse gas emissions 8
reductions requirements pursuant to section 578 of this title. This detailed 9
record shall be included with the rule and filed with the Secretary of State 10
pursuant to 3 V.S.A. § 838. 11
* * * 12
(e) On or before July 1, 2026 2027, the Secretary shall consider and adopt 13
and implement rules, which are, in the Secretary’s discretion, cost effective, 14
affordable, practicable, and designed to achieve the 2035 net greenhouse gas 15
emissions reductions requirements pursuant to section 578 of this title and are 16
consistent with the specific initiatives, programs, and strategies set forth in the 17
Plan and updates to the Plan and achieve the 2030 2035 net zero greenhouse 18
gas emissions reduction across all sectors requirement pursuant to section 578 19
of this title. The Secretary shall observe the requirements of subsection (c) of 20
this section. 21 BILL AS INTRODUCED H.289
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(f) The Secretary shall, at his or her discretion, but not less frequently than 1
once every two years between 2026 and 2030, review and, if necessary, update 2
the rules required by subsection (e) of this section in order to ensure that the 3
2030 greenhouse gas emissions reduction requirement pursuant to section 578 4
of this title is achieved. In performing this review and update, the Secretary 5
shall observe the requirements of subsection (c) of this section. 6
(g) On or before July 1, 2040, the Secretary shall consider and adopt and 7
implement rules, which are, in the Secretary’s discretion, cost effective, 8
affordable, practicable, and designed to maintain the net zero or less 9
greenhouse gas emissions and are consistent with the specific initiatives, 10
programs, and strategies set forth in the Plan and updates to the Plan and 11
achieve the 2050 net zero greenhouse gas emissions reduction requirement 12
pursuant to section 578 of this title across all sectors. 13
(h) The Secretary shall, at his or her discretion, but not less frequently than 14
once every two years between 2040 and 2050, review and, if necessary, update 15
the rules required by subsection (g) of this section in order to ensure that the 16
2050 greenhouse gas emissions reduction requirement pursuant to section 578 17
of this title is achieved. In performing this review and update, the Secretary 18
shall observe the requirements of subsection (c) of this section. 19 BILL AS INTRODUCED H.289
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(i)(g) The Secretary may establish alternative reduction mechanisms to be 1
used by sources of greenhouse gas emissions, if necessary, to achieve net zero 2
emissions after 2050 on or before 2035. 3
(1) The use of alternative reduction mechanisms shall account for not 4
more than 20 percent of statewide greenhouse gas emissions estimated as a 5
percentage of 1990 emissions. The use of a mechanism must offset a quantity 6
of greenhouse gas emissions equal to or greater than the amount of greenhouse 7
gasses emitted. 8
(2) The Secretary shall verify that any greenhouse gas emissions offset 9
projects authorized as alternative reduction mechanisms represent equivalent 10
emissions reductions or carbon sequestration that are real, additional, 11
verifiable, enforceable, and permanent. 12
(j) If the Council fails to adopt the Plan or update the Plan as required by 13
section 592 of this chapter, the Secretary shall adopt and implement rules 14
pursuant to 3 V.S.A. chapter 25 to achieve the greenhouse gas emissions 15
reductions requirements pursuant to section 578 of this title. 16
(k)(h) Nothing in this section shall be construed to limit the existing 17
authority of a State agency, department, or entity to regulate greenhouse gas 18
emissions or establish strategies or adopt rules to mitigate climate risk and 19
build resilience to climate change. 20 BILL AS INTRODUCED H.289
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(l) The General Assembly may repeal, revise, or modify any rule or 1
amendment to any rule, and its action shall not be abridged, enlarged, or 2
modified by subsequent rule. 3
Sec. 17. REPEAL 4
10 V.S.A. § 594 is repealed. 5
* * * Effective Date * * * 6
Sec. 18. EFFECTIVE DATE 7
This act shall take effect on July 1, 2025. 8