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S.110 1
Introduced by Senators Williams, Brennan, Collamore, Douglass, Hart, 2
Heffernan, Ingalls, Mattos, Norris and Weeks 3
Referred to Committee on 4
Date: 5
Subject: Public service; energy; climate change; air pollution; renewable 6
energy; heating; fuel; thermal energy; greenhouse gas emissions; 7
Renewable Energy Standard 8
Statement of purpose of bill as introduced: This bill proposes to repeal the 9
Affordable Heat Act, repeal the citizen suit provision of the Global Warming 10
Solutions Act, and change the State’s greenhouse gas reduction requirements 11
to goals. It would also change the Renewable Energy Standard to the Clean 12
Energy Standard. 13
An act relating to changes to Vermont’s air pollution and renewable energy 14
laws 15
It is hereby enacted by the General Assembly of the State of Vermont: 16
* * * Global Warming Solutions Act * * * 17
Sec. 1. REPEAL 18
10 V.S.A. § 594 is repealed. 19 BILL AS INTRODUCED S.110
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Sec. 2. 10 V.S.A. § 578 is amended to read: 1
§ 578. GREENHOUSE GAS REDUCTION REQUIREMENTS 2
(a) Greenhouse gas reduction requirements. Vermont shall reduce achieve 3
net zero emissions of greenhouse gases from within the geographical 4
boundaries of the State and those emissions outside the boundaries of the State 5
that are caused by the use of energy in Vermont, as measured and inventoried 6
pursuant to section 582 of this title, by: on or before January 1, 2035. 7
(1) not less than 26 percent from 2005 greenhouse gas emissions by 8
January 1, 2025 pursuant to the State’s membership in the United States 9
Climate Alliance and commitment to implement policies to achieve the 10
objectives of the 2016 Paris Agreement; 11
(2) not less than 40 percent from 1990 greenhouse gas emissions by 12
January 1, 2030 pursuant to the State’s 2016 Comprehensive Energy Plan; and 13
(3) not less than 80 percent from 1990 greenhouse gas emissions by 14
January 1, 2050 pursuant to the State’s 2016 Comprehensive Energy Plan 15
Vermont shall continue to implement the policies to achieve the objectives of 16
the 2016 Paris Agreement and remain at net zero greenhouse gas emissions 17
across all sectors into the future. 18
* * * 19
Sec. 3. 10 V.S.A. § 590 is amended to read: 20
§ 590. DEFINITIONS 21 BILL AS INTRODUCED S.110
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As used in this chapter: 1
(1) “Adaptation” means reducing vulnerability and advancing resilience 2
through planned and implemented enhancements to, or avoiding degradation 3
of, natural and built systems and structures. 4
(2) “Greenhouse gas” has the same meaning as in section 552 of this 5
title. 6
(3) “Mitigation” means reduction of anthropogenic greenhouse gas 7
emissions, and preservation and enhancement of natural systems to sequester 8
and store carbon, in order to stabilize and reduce greenhouse gases in the 9
atmosphere. 10
(4) “Net zero greenhouse gas emissions” means the total amount of 11
greenhouse gases released into the atmosphere after accounting for the amount 12
of greenhouse gases that are naturally absorbed or sequestered is at or less than 13
zero across all sectors. 14
(5) “Resilience” means the capacity of individuals, communities, and 15
natural and built systems to withstand and recover from climatic events, trends, 16
and disruptions. 17
Sec. 4. 10 V.S.A. § 591 is amended to read: 18
§ 591. VERMONT CLIMATE COUNCIL 19
(a) There is created the Vermont Climate Council (Council). The Council 20
shall be advisory and composed of the following members: 21 BILL AS INTRODUCED S.110
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(1) the Secretary of Administration Natural Resources or designee, who 1
shall serve as the Chair of the Council; 2
(2) the Secretary of Natural Resources or designee State Climatologist 3
or designee; 4
(3) the Secretary of Agriculture, Food and Markets or designee; 5
(4) the Secretary of Commerce and Community Development or 6
designee; 7
(5) the Secretary of Human Services or designee; 8
(6) the Secretary of Transportation or designee; 9
(7) the Commissioner of Public Safety or designee; 10
(8) the Commissioner of Public Service or designee; 11
(9) one member to represent municipal governments, appointed by the 12
Governor; 13
(10) one member to represent the rural communities, appointed by the 14
Governor; 15
(11) the following members who shall be appointed by the Speaker of 16
the House General Assembly: 17
(A) one member with expertise and professional experience in the 18
design and implementation of programs to reduce greenhouse gas emissions; 19
(B) one member to represent rural communities; 20
(C) one member to represent municipal governments; 21 BILL AS INTRODUCED S.110
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(D) one member to represent distribution utilities; 1
(E)(B) one member to represent a statewide environmental 2
organization; 3
(F)(C) one member to represent the fuel sector; 4
(G) one member with expertise in climate change science; and 5
(H)(D) one member to represent Vermont manufacturers. 6
(10) the following members who shall be appointed by the Committee on 7
Committees: 8
(A) one member with expertise in the design and implementation of 9
programs to increase resilience to and respond to natural disasters resulting 10
from climate change; 11
(B)(E) one member to represent the clean energy sector; 12
(C)(F) one member to represent the small business community; 13
(D)(G) one member to represent the Vermont Community Action 14
Partnership; 15
(E)(H) one member to represent the farm and forest sector; and 16
(F)(I) one youth member; and 17
(G) one member of a Vermont-based organization with expertise in 18
energy and data analysis. 19
(b) The Council shall make recommendations to the Secretary of Natural 20
Resources and in formulating the recommendations the Council shall: 21 BILL AS INTRODUCED S.110
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(1) Identify, analyze, and evaluate strategies and programs to reduce 1
greenhouse gas emissions; achieve the State’s reduction requirements pursuant 2
to section 578 of this title; and build resilience to prepare the State’s 3
communities, infrastructure, and economy to adapt to the current and 4
anticipated effects of climate change, including:. 5
(A) creating an inventory of all existing programs that impact 6
greenhouse gas emissions and their efficacy; 7
(B) evaluating and analyzing the technical feasibility and cost-8
effectiveness of existing strategies and programs and identifying, evaluating, 9
and analyzing new strategies and programs that are based upon emerging 10
scientific and technical information; 11
(C) analyzing each source or category of sources of greenhouse gas 12
emissions and identifying which strategies and programs will result in the 13
largest greenhouse gas emissions reductions in the most cost-effective manner; 14
(D) identifying, analyzing, and evaluating public and private 15
financing strategies to support the transition to a reduced greenhouse gas 16
emissions economy and a more resilient State; and 17
(E) evaluating and analyzing existing strategies and programs that 18
build resilience, and identifying, evaluating, and analyzing new strategies and 19
programs to prepare the State’s communities, infrastructure, and economy to 20
adapt to the current and anticipated effects of climate change. 21 BILL AS INTRODUCED S.110
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(2) On or before December 1, 2021, adopt Adopt the Vermont Climate 1
Action Plan (Plan) and update the Plan on or before July 1 every four years 2
thereafter, the first of which was adopted on December 1, 2021. On or before 3
December 15, 2026, the Secretary of Natural Resources, in collaboration with 4
the Department of Public Service and other relevant agencies and departments 5
of State government, shall deliver a companion implementation strategy and 6
aggressive-yet-achievable timeline for achieving net zero emissions across all 7
sectors by 2035. The companion implementation strategy shall include long-8
term funding mechanisms that prioritizes use of existing resources. On or 9
before July 1 every five years thereafter, the Secretary of Natural Resources 10
shall consider the recommendations of the Council and shall update the Plan. 11
The Council shall finalize its recommendations on or before January 1 of the 12
year that the Plan is due. The Plan shall set forth recommend the specific 13
affordable and practicable initiatives, programs, and strategies that the State 14
shall pursue will consider implementing to reduce greenhouse gas meet net 15
zero emissions reductions; achieve the State’s 2035 reduction requirements 16
target pursuant to section 578 of this title; and build resilience to prepare the 17
State’s communities, infrastructure, and economy to adapt to the current and 18
anticipated effects of climate change. 19
(3) Identify the means to accurately measure: 20 BILL AS INTRODUCED S.110
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(A) the State’s greenhouse gas emissions and progress towards 1
meeting the reduction requirements pursuant to section 578 of this title, 2
including publishing emissions data in a timely manner; 3
(B) the effectiveness of the specific initiatives, programs, and 4
strategies set forth in the Plan and updates to the Plan in reducing greenhouse 5
gas emissions; 6
(C) the effect of climate change on the State’s climate, wildlife, and 7
natural resources; and 8
(D) the existing resilience of the State’s communities, infrastructure, 9
and economy and progress towards improving resilience to adapt to the current 10
and anticipated effects of climate change. 11
(4) Provide guidance to the Secretary of Natural Resources concerning 12
the form, content, and subject matter of rules to be adopted recommended for 13
adoption pursuant to section 593 of this chapter. 14
(c) The Council shall create the subcommittees listed in this subsection and 15
may also create other subcommittees to advise the Council, and assist in 16
preparing the Plan, and carry out other duties. The Council may appoint 17
members of the Council to serve as members of subcommittees and may also 18
appoint individuals who are not members of the Council to serve as members 19
of subcommittees. 20
* * * 21 BILL AS INTRODUCED S.110
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(3) Just Transitions Subcommittee. This subcommittee shall focus on 1
ensuring that strategies to reduce net greenhouse gas emissions and to build 2
resilience to adapt to the effects of climate change benefit and support all 3
residents of the State fairly and equitably. This subcommittee shall ensure that 4
strategies consider the disproportionate impact of climate change on rural, low-5
income, and marginalized communities and that programs and incentives for 6
building resilience are designed to be accessible to all Vermonters and do not 7
unfairly burden any groups, communities, geographic locations, or economic 8
sectors. This subcommittee may adopt a measurement tool to assess the 9
equitability of programs and strategies considered by the Council. 10
* * * 11
(d) The Council shall recommend necessary legislation to the General 12
Assembly concerning: 13
(1) adopting market-based or alternative compliance mechanisms as part 14
of the State’s greenhouse gas emissions reduction strategies; 15
(2) changes to land use and development, including to chapter 151 of this 16
title and 30 V.S.A. § 248, to reduce greenhouse gas emissions and promote 17
resilience in response to climate change; 18
(3) statutory authority necessary to implement the Plan; and 19
(4) any other matter the Council deems appropriate. 20 BILL AS INTRODUCED S.110
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(e) The Council shall have the administrative, and technical, and legal 1
assistance of the Agency of Natural Resources and the Department of Public 2
Service and may request the assistance of any Executive Branch Agency 3
agency and Department department. 4
(f)(e) A majority of the sitting members of the Council shall constitute a 5
quorum, and action taken by the Council may be authorized by a majority of 6
the members present and voting at any meeting at which a quorum is present. 7
The Council may permit any or all members to participate in a meeting by, or 8
conduct the meeting through the use of, any means of communication, 9
including electronic, telecommunications, and video- or audio-conferencing 10
technology, by which all members participating may simultaneously or 11
sequentially communicate with each other during the meeting. A member 12
participating in a meeting by this means is deemed to be present in person at 13
the meeting. The Council shall meet at the call of the Chair or a majority of 14
the members of the Council, and the Council may elect officers and adopt any 15
other procedural rules as it shall determine necessary and appropriate to 16
perform its work. 17
(g)(f) Members of the Council and members of subcommittees who are not 18
State employees shall be entitled to per diem compensation and reimbursement 19
of expenses for each day spent in the performance of their duties, as permitted 20 BILL AS INTRODUCED S.110
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under 32 V.S.A. § 1010. These payments shall be made from monies 1
appropriated to the Agency of Natural Resources. 2
(h)(g) The members of the Council appointed pursuant to subdivision (a) 3
(9)(11) of this section shall be appointed to initial terms of two years, and 4
members appointed pursuant to subdivision (a)(10) of this section shall be 5
appointed to initial terms of three years. Thereafter, each appointed member 6
shall serve a term of three years or until his or her a member’s earlier 7
resignation or removal. A vacancy shall be filled by the appointing authority 8
for the remainder of the unexpired term. An appointed member shall not serve 9
more than three two full consecutive three-year terms. 10
(i)(h) On or before January 15, 2021 and every January 15 thereafter, the 11
Council shall submit a written report to the General Assembly concerning the 12
Council’s activities and the State’s progress towards meeting the 2035 net 13
greenhouse gas reduction requirements pursuant to section 578 of this title. On 14
or before November 1, 2021 and every second November 1 thereafter, the 15
Director of Vermont Emergency Management shall file a report with the 16
Council concerning Vermont’s overall municipal resilience to increased 17
hazards presented by climate change that shall include hazard mitigation plans, 18
local emergency management plans, and survey results as deemed appropriate 19
by the Director. Subsequent reports shall include updates to document 20 BILL AS INTRODUCED S.110
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progress in local resilience. The report shall inform Council recommendations 1
on policies to address gaps in local resilience. 2
Sec. 5. 10 V.S.A. § 592 is amended to read: 3
§ 592. THE VERMONT CLIMATE ACTION PLAN 4
(a) On or before December 1, 2021, the Vermont Climate Council 5
(Council) shall adopt adopted the Vermont Climate Action Plan (Plan) and. 6
The Secretary of Natural Resources shall update the Plan on or before July 1 7
every four five years thereafter. 8
(b) The Plan shall set forth recommend the specific affordable and 9
practicable initiatives, programs, and strategies, including regulatory and 10
legislative changes, necessary to achieve the State’s net zero greenhouse gas 11
emissions reduction requirements across all sectors pursuant to section 578 of 12
this title and build resilience to prepare the State’s communities, infrastructure, 13
and economy to adapt to the current and anticipated effects of climate change. 14
The Plan shall include those specific affordable and practicable initiatives, 15
programs, and strategies that will: 16
* * * 17
(c) The analysis, development, and selection of the specific initiatives, 18
programs, and strategies contained in the Plan and updates to the Plan shall be 19
based upon: 20 BILL AS INTRODUCED S.110
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(1) the Council’s analysis and evaluation of strategies and programs 1
pursuant to subdivision 591(b)(1) of this chapter; 2
(2) reports, plans, and information pertaining to greenhouse gas 3
emissions reduction and climate resilience strategies from the Agency of 4
Natural Resources, the Department of Public Service, other State agencies and 5
departments, and, where appropriate, the State Comprehensive Energy Plan 6
prepared pursuant to 30 V.S.A. § 202b and the 2018 Vermont Climate Action 7
Commission Report to the Governor; and 8
(3) other reports, plans, and information. 9
(d) The specific initiatives, programs, and strategies contained in To the 10
extent practicable and affordable, the Plan and updates to the Plan shall further 11
the following objectives: 12
(1) to prioritize the most cost-effective, technologically feasible, and 13
equitable greenhouse gas emissions reduction pathways and adaptation and 14
preparedness strategies informed by scientific and technical expertise; 15
(2) to provide for net zero greenhouse gas emissions reductions that 16
reflect the relative contribution of each source or category of source of 17
emissions; 18
* * * 19
(e) The Plan updated Plans shall form the basis for the recommend rules 20
adopted for consideration by the Secretary of Natural Resources pursuant to 21 BILL AS INTRODUCED S.110
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section 593 of this chapter. If the Council fails to adopt the Plan or update the 1
Plan as required by this chapter, the The Secretary shall proceed with adopting 2
and implementing rules pursuant to subsection 593(j) of this chapter that, in the 3
Secretary’s discretion, are cost effective, practicable, and designed to achieve 4
the net zero greenhouse gas emissions reductions requirements pursuant to 5
section 578 of this title. 6
Sec. 6. 10 V.S.A. § 593 is amended to read: 7
§ 593. RULES 8
(a) The Secretary of Natural Resources shall consider and adopt rules 9
pursuant to 3 V.S.A. chapter 25, which are, in the Secretary’s discretion, cost 10
effective, affordable, practicable, and designed to achieve the net zero 11
greenhouse gas emissions reductions requirements pursuant to section 578 of 12
this title and are consistent with the Vermont Climate Action Plan (Plan). In 13
adopting rules pursuant to this section, the Secretary shall: 14
(1) Ensure that Consider whether the rules are consistent with the 15
specific initiatives, programs, and strategies set forth in the Plan and updates to 16
the Plan; follow consider the Vermont Climate Council’s guidance provided 17
pursuant to subdivision 591(b)(4) of this chapter; and further the objectives 18
pursuant to subsection 592(d) of this chapter. 19
(2) Develop a detailed record containing facts; data; and legal, scientific, 20
and technical information sufficient to establish a reasonable basis to believe 21 BILL AS INTRODUCED S.110
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that the rules shall achieve the State’s net zero greenhouse gas emissions 1
reductions requirements pursuant to section 578 of this title. This detailed 2
record shall be included with the rule and filed with the Secretary of State 3
pursuant to 3 V.S.A. § 838. 4
* * * 5
(e) On or before July 1, 2026 2027, the Secretary shall consider and adopt 6
and implement rules, which are, in the Secretary’s discretion, cost effective, 7
affordable, practicable, and designed to achieve the 2035 net greenhouse gas 8
emissions reductions requirements pursuant to section 578 of this title and are 9
consistent with the specific initiatives, programs, and strategies set forth in the 10
Plan and updates to the Plan and achieve the 2030 2035 net zero greenhouse 11
gas emissions reduction across all sectors requirement pursuant to section 578 12
of this title. The Secretary shall observe the requirements of subsection (c) of 13
this section. 14
(f) The Secretary shall, at his or her discretion, but not less frequently than 15
once every two years between 2026 and 2030, review and, if necessary, update 16
the rules required by subsection (e) of this section in order to ensure that the 17
2030 greenhouse gas emissions reduction requirement pursuant to section 578 18
of this title is achieved. In performing this review and update, the Secretary 19
shall observe the requirements of subsection (c) of this section. 20 BILL AS INTRODUCED S.110
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(g) On or before July 1, 2040, the Secretary shall consider and adopt and 1
implement rules, which are, in the Secretary’s discretion, cost effective, 2
affordable, practicable, and designed to maintain the net zero or less 3
greenhouse gas emissions and are consistent with the specific initiatives, 4
programs, and strategies set forth in the Plan and updates to the Plan and 5
achieve the 2050 net zero greenhouse gas emissions reduction requirement 6
pursuant to section 578 of this title across all sectors. 7
(h) The Secretary shall, at his or her discretion, but not less frequently than 8
once every two years between 2040 and 2050, review and, if necessary, update 9
the rules required by subsection (g) of this section in order to ensure that the 10
2050 greenhouse gas emissions reduction requirement pursuant to section 578 11
of this title is achieved. In performing this review and update, the Secretary 12
shall observe the requirements of subsection (c) of this section. 13
(i)(g) The Secretary may establish alternative reduction mechanisms to be 14
used by sources of greenhouse gas emissions, if necessary, to achieve net zero 15
emissions after 2050 on or before 2035. 16
(1) The use of alternative reduction mechanisms shall account for not 17
more than 20 percent of statewide greenhouse gas emissions estimated as a 18
percentage of 1990 emissions. The use of a mechanism must offset a quantity 19
of greenhouse gas emissions equal to or greater than the amount of greenhouse 20
gasses emitted. 21 BILL AS INTRODUCED S.110
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(2) The Secretary shall verify that any greenhouse gas emissions offset 1
projects authorized as alternative reduction mechanisms represent equivalent 2
emissions reductions or carbon sequestration that are real, additional, 3
verifiable, enforceable, and permanent. 4
(j) If the Council fails to adopt the Plan or update the Plan as required by 5
section 592 of this chapter, the Secretary shall adopt and implement rules 6
pursuant to 3 V.S.A. chapter 25 to achieve the greenhouse gas emissions 7
reductions requirements pursuant to section 578 of this title. 8
(k)(h) Nothing in this section shall be construed to limit the existing 9
authority of a State agency, department, or entity to regulate greenhouse gas 10
emissions or establish strategies or adopt rules to mitigate climate risk and 11
build resilience to climate change. 12
(l) The General Assembly may repeal, revise, or modify any rule or 13
amendment to any rule, and its action shall not be abridged, enlarged, or 14
modified by subsequent rule. 15
* * * Clean Energy Standard * * * 16
Sec. 7. 30 V.S.A. § 202a is amended to read: 17
§ 202a. STATE ENERGY POLICY 18
It is the general policy of the State of Vermont: 19
* * * 20 BILL AS INTRODUCED S.110
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(3) To meet Vermont’s energy service needs in a manner that will 1
achieve the greenhouse gas emissions reductions requirements goals pursuant 2
to 10 V.S.A § 578 and is consistent with the Vermont Climate Action Plan 3
adopted and updated pursuant to 10 V.S.A. § 592. 4
Sec. 8. 30 V.S.A. § 202b is amended to read: 5
§ 202b. STATE COMPREHENSIVE ENERGY PLAN 6
(a) The Department of Public Service, in conjunction with other State 7
agencies designated by the Governor, shall prepare a State Comprehensive 8
Energy Plan covering at least a 20-year period. The Plan shall seek to 9
implement the State energy policy set forth in section 202a of this title, 10
including meeting the State’s greenhouse gas emissions reductions 11
requirements goals pursuant to 10 V.S.A. § 578, and shall be consistent with 12
the relevant goals of 24 V.S.A. § 4302 and with the Vermont Climate Action 13
Plan adopted and updated pursuant to 10 V.S.A. § 592. The State 14
Comprehensive Energy Plan shall include: 15
* * * 16
(e) The Commissioner of Public Service (Commissioner) shall file an 17
annual report on progress in meeting the goals of the Plan. The report shall 18
address each of the following sectors of energy consumption in the State: 19
electricity, nonelectric fuels for thermal purposes, and transportation. In 20
preparing the report, the Commissioner shall consult with the Secretaries of 21 BILL AS INTRODUCED S.110
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Administration, of Agriculture, Food and Markets, of Natural Resources, and 1
of Transportation and the Commissioner of Buildings and General Services. 2
* * * 3
(3) For each sector, the report shall provide: 4
(A) In millions of British thermal units (MMBTUs) for the most 5
recent calendar year for which data are available, the total amount of energy 6
consumed, the amount of clean and renewable energy consumed, and the 7
percentage of clean and renewable energy consumed. For the electricity 8
sector, the report shall also state the amounts in megawatt hours (MWH) of 9
retail sales and load for Vermont as well as for each retail electricity provider 10
and the Vermont and New England summer and winter peak electric demand, 11
including the hour and day of peak demand. 12
(B) Projections of the energy reductions and shift to clean and 13
renewable energy expected to occur under existing policies, technologies, and 14
markets. The most recent available data shall be used to inform these 15
projections and shall be provided as a supplement to the data described in 16
subdivision (A) of this subdivision (3). 17
* * * 18
(7) The report shall include the following information on progress 19
toward meeting the Renewable Clean Energy Standard (RES CES): 20 BILL AS INTRODUCED S.110
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(A) An assessment of the costs and benefits of the RES CES based 1
on the most current available data, including rate and economic impacts, 2
customer savings, technology deployment, greenhouse gas emission reductions 3
achieved both relative to 10 V.S.A § 578 requirements and societally, fuel 4
price stability, effect on transmission and distribution upgrade costs, and any 5
recommended changes based on this assessment. 6
(i) For the most recent calendar year for which data is available, 7
each retail electricity provider’s retail sales and load, in MWh; required 8
amounts of clean and renewable energy for each category of the RES CES as 9
set forth in section 8005 of this title; and amounts of clean and renewable 10
energy and tradeable clean and renewable energy credits eligible to satisfy the 11
requirements of sections 8004 and 8005 of this title actually owned by the 12
Vermont retail electricity providers, expressed as a percentage of retail sales 13
and total load MWh purchases made by Vermont retail electricity providers to 14
meet demand. 15
* * * 16
(iv) The report shall assess how costs and benefits of the RES 17
CES are being distributed across State, to the extent possible given available 18
data, by retail electricity service territory, municipality, and environmental 19
justice focus populations, as defined by 3 V.S.A. § 6002. Such an assessment 20
shall consider metrics to monitor affordability of electric rates. 21 BILL AS INTRODUCED S.110
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(B) Projections, looking at least 10 years ahead, of the impacts of the 1
RES CES. 2
* * * 3
(iii) The Department shall project, for the State, the impact of the 4
RES CES in each of the following areas: electric utility rates, total energy 5
consumption, electric energy consumption, fossil fuel consumption, and 6
greenhouse gas emissions. The report shall compare the amount or level in 7
each of these areas with and without the program. 8
(C) An assessment of whether the requirements of the RES CES have 9
been met to date, and any recommended changes needed to achieve those 10
requirements. 11
(D) A summary of the activities of distributed renewable generation 12
programs that support the achievement of the RES CES, including: 13
* * * 14
Sec. 9. 30 V.S.A. § 8002 is amended to read: 15
§ 8002. DEFINITIONS 16
As used in this chapter: 17
* * * 18
(7) “Environmental attributes” means the characteristics of a plant that 19
enable the energy it produces to qualify as clean or renewable energy and 20
include any and all benefits of the plant to the environment such as avoided 21 BILL AS INTRODUCED S.110
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emissions or other impacts to air, water, or soil that may occur through the 1
plant’s displacement of a nonclean or nonrenewable energy source. 2
* * * 3
(25) “Clean energy” means both renewable energy, as defined in this 4
section, as well as electricity produced using a technology that does not emit 5
greenhouse gases as a by-product of energy generation. 6
* * * 7
(29) “RES” “CES” means the Renewable Clean Energy Standard 8
established under sections 8004 and 8005 of this title. 9
* * * 10
(33) “Tradeable zero emissions credits” or “ZECs” means all of the 11
environmental attributes associated with a single unit of energy generated by a 12
clean energy source where: 13
(A) those attributes are transferred or recorded separately from that 14
unit of energy; 15
(B) the party claiming ownership of the tradeable zero emissions 16
credits has acquired the exclusive legal ownership of all, and not less than all, 17
the environmental attributes associated with that unit of energy; and 18
(C) exclusive legal ownership can be verified through an auditable 19
contract path or pursuant to the system established or authorized by the 20
Commission or any program for tracking and verification of the ownership of 21 BILL AS INTRODUCED S.110
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environmental attributes of energy legally recognized in any state and 1
approved by the Commission. 2
Sec. 10. 30 V.S.A. § 8004 is amended to read: 3
§ 8004. SALES OF ELECTRIC ENERGY; RENEWABLE CLEAN 4
ENERGY STANDARD (RES CES) 5
(a) Establishment Expansion; requirements. The RES Renewable Energy 6
Standard is established expanded to become the CES. Under this program, a 7
retail electricity provider shall not sell or otherwise provide or offer to sell or 8
provide electricity in the State of Vermont without ownership of sufficient 9
energy produced by clean and renewable energy plants or sufficient tradeable 10
renewable energy and zero emissions credits from plants whose energy is 11
capable of delivery in New England that reflect the required amounts of clean 12
and renewable energy set forth in section 8005 of this title or without support 13
of energy transformation projects in accordance with that section. A retail 14
electricity provider may meet the required amounts of clean and renewable 15
energy through eligible tradeable renewable energy and zero emissions credits 16
that it owns and retires, eligible clean and renewable energy resources with 17
environmental attributes still attached, or a combination of those credits and 18
resources. 19 BILL AS INTRODUCED S.110
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(b) Rules. The Commission shall adopt update the rules that are necessary 1
to allow the Commission and the Department to implement and supervise 2
further the implementation and maintenance of the RES CES. 3
(c) RECS RECs and ZECs; banking. The Commission shall allow a 4
provider that has met the required amount amounts of renewable energy or 5
zero emissions credits in a given year, commencing with 2017, to retain 6
tradeable renewable energy or zero emissions credits created or purchased in 7
excess of that amount for application to the provider’s required amount of 8
clean or renewable energy in one of the following three years. 9
(d) Alternative compliance payment. In lieu of purchasing renewable 10
energy or tradeable renewable energy or zero emissions credits or supporting 11
energy transformation projects to satisfy the requirements of this section and 12
section 8005 of this title, a retail electricity provider in this State may pay to 13
the Vermont Clean Energy Development Fund established under section 8015 14
of this title an alternative compliance payment at the applicable rate set forth in 15
section 8005. The administrator of the Vermont Clean Energy Development 16
Fund shall use the payment from a retail electricity provider electing to make 17
an alternative compliance payment to satisfy its obligations under subdivisions 18
8005(a)(1), 8005(a)(2), 8005(a)(4), and 8005(a)(5) of this title for the 19
development of renewable energy plants that are intended to serve and benefit 20
customers with low income of the retail electricity provider that has made the 21 BILL AS INTRODUCED S.110
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payment. Such plants shall be located within the provider’s service territory, if 1
feasible. In the event that such a payment is insufficient to enable the 2
development of a renewable energy plant, the administrator may use the 3
payment for other initiatives allowed under section 8015 of this title that will 4
benefit customers with low income of the retail electricity provider that has 5
made the payment. As used in this subsection (d), “customer with low 6
income” means a person purchasing energy from a retail electricity provider 7
and with an income that is less than or equal to 80 percent of area median 8
income, adjusted for family size, as published annually by the U.S. Department 9
of Housing and Urban Development. 10
* * * 11
(f) Joint efforts. Retail electricity providers may engage in joint efforts to 12
meet one or more categories within the RES CES. 13
Sec. 11. 30 V.S.A. § 8005 is amended to read: 14
§ 8005. RES CES CATEGORIES 15
(a) Categories. This section specifies five categories of required resources 16
to meet the requirements of the RES CES established in section 8004 of this 17
title: total clean and renewable energy, distributed renewable generation, 18
energy transformation, new renewable energy, and load growth renewable 19
energy. In order to support progress toward Vermont’s climate goals and 20 BILL AS INTRODUCED S.110
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requirements, a provider may, but shall not be required to, exceed the 1
statutorily required amounts under this section. 2
(1) Total clean and renewable energy. 3
(A) Purpose; establishment. To encourage the economic and 4
environmental benefits of renewable energy, this subdivision establishes, for 5
the RES CES, minimum total amounts of clean and renewable energy within 6
the supply portfolio of each retail electricity provider. To satisfy this 7
requirement, a provider may use clean energy generated within New England 8
or renewable energy with environmental attributes attached or any class of 9
tradeable renewable energy credits generated by any renewable energy plant 10
whose energy is capable of delivery in New England. 11
(B) Required amounts. 12
(i) The amounts of total clean and renewable energy required by 13
this subsection (a) shall be 63 percent of each retail electricity provider’s 14
annual load during the year beginning on January 1, 2025, increasing by at 15
least an additional four 7.4 percent each third January 1 thereafter until 16
reaching 100 percent: on and after January 1, 2030. 17
(i) on and after January 1, 2035 for a retail electricity provider who 18
serves a single customer that takes service at 115 kilovolts and each municipal 19
retail electricity provider formed under local charter or chapter 79 of this title; 20
and 21 BILL AS INTRODUCED S.110
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(ii) on and after January 1, 2030, for all other retail electricity 1
providers The amount of total renewable energy required by this subsection (a) 2
shall be 55 percent of each retail electricity provider’s annual electricity 3
purchases during the year beginning on January 1, 2027, increasing by an 4
additional four percent each January 1 hereafter, until reaching 75 percent on 5
and after January 1, 2032. 6
* * * 7
(2) Distributed renewable generation. 8
(A) Purpose; establishment. This subdivision establishes a 9
distributed renewable generation category for the RES CES. This category 10
encourages the use of distributed generation to support the reliability of the 11
State’s electric system; reduce line losses; contribute to avoiding or deferring 12
improvements to that system necessitated by transmission or distribution 13
constraints; and diversify the size and type of resources connected to that 14
system. This category requires the use of renewable energy for these purposes 15
to reduce environmental and health impacts from air emissions that would 16
result from using other forms of generation. 17
* * * 18
(E) Avoiding transmission and distribution constraints. 19
(i) Procurements by retail electricity providers and programs that 20
support meeting the requirements of this subdivision (2) shall avoid 21 BILL AS INTRODUCED S.110
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development of new facilities in generation constrained areas of the 1
distribution or transmission system that would not need to be expanded but for 2
the addition of additional generation, unless costs associated with development 3
in those generation constrained areas are not passed through to ratepayers 4
through the cost to utilities to purchase the generation or in any other manner. 5
To implement the intent of this section, the Commission may update or adopt 6
rules, including rules that require a locational adjustor fee. 7
(ii) A retail electricity provider may petition the Commission for relief 8
of the requirements of subdivision (C) of this subdivision (a)(2) or the 9
associated alternative compliance payment, which may be granted if the 10
provider can demonstrate that it is unable to meet its requirements without 11
extensive upgrades to the transmission or distribution infrastructure that would 12
be borne by the provider’s ratepayers. If relief is granted, the retail electricity 13
provider shall be required to instead acquire new renewable generation from 14
facilities that qualify to meet the requirements of subdivision (4) of this 15
subsection (a), in addition to the requirements as described in subdivision (4) 16
of this subsection (a). 17
(3) Energy transformation. 18
(A) Purpose; establishment. This subdivision (3) establishes an 19
energy transformation category for the RES CES. This category encourages 20
Vermont retail electricity providers to support additional distributed renewable 21 BILL AS INTRODUCED S.110
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generation or to support other projects to reduce fossil fuel consumed by their 1
customers and the emission of greenhouse gases attributable to that 2
consumption. A retail electricity provider may satisfy the energy 3
transformation requirement through distributed renewable generation in 4
addition to the generation used to satisfy subdivision (2) of this subsection (a) 5
or energy transformation projects or a combination of such generation and 6
projects. 7
* * * 8
(4) New renewable energy. 9
(A) Purpose; establishment. This subdivision (4) establishes a new 10
regional renewable energy category for the RES CES. This category 11
encourages the use of new renewable generation to support the reliability of 12
the regional ISO-NE electric system. To satisfy this requirement, a provider 13
shall use new renewable energy with environmental attributes attached or any 14
class of tradeable renewable energy credits generated by any renewable energy 15
plant coming into service after January 1, 2010 whose energy is capable of 16
delivery in New England. 17
* * * 18
(6) Alternative compliance rates. 19
(A) The alternative compliance payment rates for the categories 20
established by subdivisions (1)–(3) of this subsection (a) shall be: 21 BILL AS INTRODUCED S.110
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(i) total clean and renewable energy requirement — $0.01 per 1
kWh; and 2
(ii) distributed renewable generation and energy transformation 3
requirements — $0.06 per kWh. 4
(B) The Commission shall adjust these rates for inflation annually 5
commencing January 1, 2018, using the CPI. 6
(C) For the distributed renewable energy, new renewable energy and 7
load growth requirements, it shall be $0.04 per kWh annually commencing on 8
January 1, 2025, with calculations for inflation beginning on January 1, 2023. 9
* * * 10
Sec. 12. 30 V.S.A. § 8006 is amended to read: 11
§ 8006. TRADEABLE CREDITS; ENVIRONMENTAL ATTRIBUTES; 12
RECOGNITION, MONITORING, AND DISCLOSURE 13
(a) The Commission shall establish or adopt a amend and expand its system 14
of tradeable renewable energy credits for renewable resources that may be 15
earned by electric generation qualifying for the prior RES to include clean 16
energy generation. The system shall recognize tradeable renewable energy 17
credits monitored and traded on the New England Generation Information 18
System (GIS); shall provide a process for the recognition, approval, and 19
monitoring of environmental attributes attached to clean and renewable energy 20
that are eligible to satisfy the requirements of sections 8004 and 8005 of this 21 BILL AS INTRODUCED S.110
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title but are not monitored and traded on the GIS; and shall otherwise be 1
consistent with regional practices. 2
(b) The Commission shall ensure that all electricity provider and provider-3
affiliate disclosures and representations made with regard to a provider’s 4
portfolio are accurate and reasonably supported by objective data. Further, the 5
Commission shall ensure that providers disclose the types of generation used 6
and shall clearly distinguish between energy or tradeable energy credits 7
provided from clean, renewable, and nonrenewable energy sources and 8
existing and new renewable energy. 9
Sec. 13. 30 V.S.A. § 8008 is amended to read: 10
§ 8008. AGREEMENTS; ATTRIBUTE REVENUES; DISPOSITION BY 11
COMMISSION 12
(a) As used in this section, “the revenues” means revenues that are from the 13
sale, through tradeable clean or renewable energy certificates or other means, 14
of environmental attributes associated with the generation of clean and 15
renewable energy from a system of generation resources with a total plant 16
capacity greater than 200 MW and that are received by a Vermont retail 17
electricity provider on or after May 1, 2012, pursuant to an agreement, 18
contract, memorandum of understanding, or other transaction in which a 19
person or entity agrees to transfer such revenues or rights associated with such 20
attributes to the provider. 21 BILL AS INTRODUCED S.110
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* * * 1
Sec. 14. 30 V.S.A. § 8005b is added to read: 2
§ 8005b. RENEWABLE ENERGY FOR COMMUNITIES PROGRAM 3
(a) Establishment. The Renewable Energy for Communities Program is 4
established. To achieve the goals of subdivision 8005(a)(2) of this title, the 5
Commission shall develop the Renewable Energy for Communities Program 6
that meets the eligibility requirements of this section, which may be 7
implemented by rule, order, or contract. Retail electricity providers shall issue 8
periodic solicitations subject to the requirements of the Renewable Energy for 9
Communities Program. 10
(b) Eligible resources. Distributed renewable generation, as defined in 11
subdivision 8002(a)(2) of this title, shall be eligible to participate in this 12
program. 13
(c) Objectives. It shall be the objective of the Renewable Energy for 14
Communities Program to develop distributed generation at least-cost to 15
ratepayers that is directed by, developed in consultation with, or directly 16
benefits communities by one or more of the following: 17
(1) delivering benefits from renewable energy systems to customers who 18
have historically been marginalized or faced inequitable access to the benefits 19
of renewable energy, including environmental justice focus populations as 20
defined by 3 V.S.A. § 6002; 21 BILL AS INTRODUCED S.110
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(2) supporting community participation in the development and 1
governance of distributed renewable generation; 2
(3) supporting the delivery of benefits to tenants of buildings that are 3
designated as affordable housing; 4
(4) supporting the delivery of benefits to school and municipal owned 5
buildings; and 6
(5) advancing other priority issues as identified during program 7
development as detailed under subsection (f) of this section. 8
(d) Capacity requirement. Retail electricity providers shall issue 9
solicitations for distributed renewable generation equivalent to a percentage of 10
their requirement under subdivision 8005(a)(2) of this title, as determined by 11
the Commission. 12
(e) Solicitation requirement. On a schedule to be developed by the 13
Commission, each retail electricity provider with an obligation under 14
subdivision 8005(a)(2) of this title shall issue solicitations for eligible 15
distributed generation until it has met its capacity requirement. Coordinated 16
solicitations shall be encouraged. Each retail electric provider shall review 17
proposed projects in its service territory according to a set of consistent core 18
criteria as approved by the Commission and consistent with the objectives set 19
forth in this section. The requirements for the retail electricity providers that 20
are already 100 percent renewable may be limited by the Commission to an 21 BILL AS INTRODUCED S.110
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amount equal to the provider’s requirement to meet distributed generation with 1
load growth above the baseline year of 2024 and allowed on a less frequent 2
solicitation schedule. 3
(f) Program development. On or before January 1, 2027, the Commission 4
shall implement the Renewable Energy for Communities Program. In 5
developing the Program, the Commission shall: 6
(1) determine principles to guide the development of eligible distributed 7
generation and consider whether additional objectives for the Program as 8
defined under subsection (a) of this section are necessary; 9
(2) determine whether a percentage of each retail electricity provider’s 10
capacity requirement should be reserved to serve specific customers who have 11
previously experienced inequitable access to the benefits of renewable energy 12
and determine any minimum requirement for those projects procured under 13
this program for serving those specific customers; 14
(3) establish a set of consistent review criteria to be used by all retail 15
electricity providers in solicitations for eligible distributed generation 16
considering issues in addition to cost, such as community support or 17
engagement while developing the proposal; potential for local workforce 18
development and other community benefits to be delivered to the host 19
community; location of the project, including whether it is in a constrained 20
area of the distribution or transmission system or in an area identified as a 21 BILL AS INTRODUCED S.110
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preferred location in a regional or municipal enhanced energy plan pursuant to 1
24 V.S.A. § 4352; and anticipated generation profile; 2
(4) identify reporting requirements and necessary metrics to monitor 3
how benefits and burdens from the Program are distributed across ratepayers; 4
(5) consult with individuals representing a diverse array of perspectives, 5
including at minimum representation from industry, retail electric providers, 6
environmental advocates, State agencies, regional and local governments, 7
communities identified as environmental justice focus populations under 3 8
V.S.A. § 6002, municipalities experiencing high energy burden as identified by 9
Efficiency Vermont’s 2023 Energy Burden Report, renters, and multifamily 10
affordable housing representatives; 11
(6) determine a process for exempting or deferring retail electricity 12
provider requirements under this section in the event no proposals below the 13
applicable alternative compliance payment are received in response to a retail 14
electricity provider’s solicitation; 15
(7) determine a process for evaluating and reporting on the success of 16
the Program in achieving the stated goals; and 17
(8) consider other issues as identified throughout the process. 18
(g) The Commission may use its authority under sections 20 and 21 of this 19
title as may be necessary to support engagement and technical analysis 20
necessary to develop the Renewable Energy for Communities Program. 21 BILL AS INTRODUCED S.110
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Funding may be used to support per diem compensation and reimbursement of 1
expenses as permitted under 32 V.S.A. § 1010 to conduct engagement with 2
parties who are not otherwise compensated by their employer. 3
* * * Effective Date * * * 4
Sec. 15. EFFECTIVE DATE 5
This act shall take effect on passage. 6