1 | 1 | | BILL AS INTRODUCED S.110 |
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2 | 2 | | 2025 Page 1 of 36 |
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4 | 4 | | |
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5 | 5 | | VT LEG #378873 v.5 |
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6 | 6 | | S.110 1 |
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7 | 7 | | Introduced by Senators Williams, Brennan, Collamore, Douglass, Hart, 2 |
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8 | 8 | | Heffernan, Ingalls, Mattos, Norris and Weeks 3 |
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9 | 9 | | Referred to Committee on 4 |
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10 | 10 | | Date: 5 |
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11 | 11 | | Subject: Public service; energy; climate change; air pollution; renewable 6 |
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12 | 12 | | energy; heating; fuel; thermal energy; greenhouse gas emissions; 7 |
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13 | 13 | | Renewable Energy Standard 8 |
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14 | 14 | | Statement of purpose of bill as introduced: This bill proposes to repeal the 9 |
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15 | 15 | | Affordable Heat Act, repeal the citizen suit provision of the Global Warming 10 |
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16 | 16 | | Solutions Act, and change the State’s greenhouse gas reduction requirements 11 |
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17 | 17 | | to goals. It would also change the Renewable Energy Standard to the Clean 12 |
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18 | 18 | | Energy Standard. 13 |
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19 | 19 | | An act relating to changes to Vermont’s air pollution and renewable energy 14 |
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20 | 20 | | laws 15 |
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21 | 21 | | It is hereby enacted by the General Assembly of the State of Vermont: 16 |
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22 | 22 | | * * * Global Warming Solutions Act * * * 17 |
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23 | 23 | | Sec. 1. REPEAL 18 |
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24 | 24 | | 10 V.S.A. § 594 is repealed. 19 BILL AS INTRODUCED S.110 |
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25 | 25 | | 2025 Page 2 of 36 |
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27 | 27 | | |
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28 | 28 | | VT LEG #378873 v.5 |
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29 | 29 | | Sec. 2. 10 V.S.A. § 578 is amended to read: 1 |
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30 | 30 | | § 578. GREENHOUSE GAS REDUCTION REQUIREMENTS 2 |
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31 | 31 | | (a) Greenhouse gas reduction requirements. Vermont shall reduce achieve 3 |
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32 | 32 | | net zero emissions of greenhouse gases from within the geographical 4 |
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33 | 33 | | boundaries of the State and those emissions outside the boundaries of the State 5 |
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34 | 34 | | that are caused by the use of energy in Vermont, as measured and inventoried 6 |
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35 | 35 | | pursuant to section 582 of this title, by: on or before January 1, 2035. 7 |
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36 | 36 | | (1) not less than 26 percent from 2005 greenhouse gas emissions by 8 |
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37 | 37 | | January 1, 2025 pursuant to the State’s membership in the United States 9 |
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38 | 38 | | Climate Alliance and commitment to implement policies to achieve the 10 |
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39 | 39 | | objectives of the 2016 Paris Agreement; 11 |
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40 | 40 | | (2) not less than 40 percent from 1990 greenhouse gas emissions by 12 |
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41 | 41 | | January 1, 2030 pursuant to the State’s 2016 Comprehensive Energy Plan; and 13 |
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42 | 42 | | (3) not less than 80 percent from 1990 greenhouse gas emissions by 14 |
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43 | 43 | | January 1, 2050 pursuant to the State’s 2016 Comprehensive Energy Plan 15 |
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44 | 44 | | Vermont shall continue to implement the policies to achieve the objectives of 16 |
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45 | 45 | | the 2016 Paris Agreement and remain at net zero greenhouse gas emissions 17 |
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46 | 46 | | across all sectors into the future. 18 |
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47 | 47 | | * * * 19 |
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48 | 48 | | Sec. 3. 10 V.S.A. § 590 is amended to read: 20 |
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49 | 49 | | § 590. DEFINITIONS 21 BILL AS INTRODUCED S.110 |
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51 | 51 | | |
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52 | 52 | | |
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53 | 53 | | VT LEG #378873 v.5 |
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54 | 54 | | As used in this chapter: 1 |
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55 | 55 | | (1) “Adaptation” means reducing vulnerability and advancing resilience 2 |
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56 | 56 | | through planned and implemented enhancements to, or avoiding degradation 3 |
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57 | 57 | | of, natural and built systems and structures. 4 |
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58 | 58 | | (2) “Greenhouse gas” has the same meaning as in section 552 of this 5 |
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59 | 59 | | title. 6 |
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60 | 60 | | (3) “Mitigation” means reduction of anthropogenic greenhouse gas 7 |
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61 | 61 | | emissions, and preservation and enhancement of natural systems to sequester 8 |
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62 | 62 | | and store carbon, in order to stabilize and reduce greenhouse gases in the 9 |
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63 | 63 | | atmosphere. 10 |
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64 | 64 | | (4) “Net zero greenhouse gas emissions” means the total amount of 11 |
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65 | 65 | | greenhouse gases released into the atmosphere after accounting for the amount 12 |
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66 | 66 | | of greenhouse gases that are naturally absorbed or sequestered is at or less than 13 |
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67 | 67 | | zero across all sectors. 14 |
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68 | 68 | | (5) “Resilience” means the capacity of individuals, communities, and 15 |
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69 | 69 | | natural and built systems to withstand and recover from climatic events, trends, 16 |
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70 | 70 | | and disruptions. 17 |
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71 | 71 | | Sec. 4. 10 V.S.A. § 591 is amended to read: 18 |
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72 | 72 | | § 591. VERMONT CLIMATE COUNCIL 19 |
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73 | 73 | | (a) There is created the Vermont Climate Council (Council). The Council 20 |
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74 | 74 | | shall be advisory and composed of the following members: 21 BILL AS INTRODUCED S.110 |
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77 | 77 | | |
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78 | 78 | | VT LEG #378873 v.5 |
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79 | 79 | | (1) the Secretary of Administration Natural Resources or designee, who 1 |
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80 | 80 | | shall serve as the Chair of the Council; 2 |
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81 | 81 | | (2) the Secretary of Natural Resources or designee State Climatologist 3 |
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82 | 82 | | or designee; 4 |
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83 | 83 | | (3) the Secretary of Agriculture, Food and Markets or designee; 5 |
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84 | 84 | | (4) the Secretary of Commerce and Community Development or 6 |
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85 | 85 | | designee; 7 |
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86 | 86 | | (5) the Secretary of Human Services or designee; 8 |
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87 | 87 | | (6) the Secretary of Transportation or designee; 9 |
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88 | 88 | | (7) the Commissioner of Public Safety or designee; 10 |
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89 | 89 | | (8) the Commissioner of Public Service or designee; 11 |
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90 | 90 | | (9) one member to represent municipal governments, appointed by the 12 |
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91 | 91 | | Governor; 13 |
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92 | 92 | | (10) one member to represent the rural communities, appointed by the 14 |
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93 | 93 | | Governor; 15 |
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94 | 94 | | (11) the following members who shall be appointed by the Speaker of 16 |
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95 | 95 | | the House General Assembly: 17 |
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96 | 96 | | (A) one member with expertise and professional experience in the 18 |
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97 | 97 | | design and implementation of programs to reduce greenhouse gas emissions; 19 |
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98 | 98 | | (B) one member to represent rural communities; 20 |
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99 | 99 | | (C) one member to represent municipal governments; 21 BILL AS INTRODUCED S.110 |
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101 | 101 | | |
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102 | 102 | | |
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103 | 103 | | VT LEG #378873 v.5 |
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104 | 104 | | (D) one member to represent distribution utilities; 1 |
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105 | 105 | | (E)(B) one member to represent a statewide environmental 2 |
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106 | 106 | | organization; 3 |
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107 | 107 | | (F)(C) one member to represent the fuel sector; 4 |
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108 | 108 | | (G) one member with expertise in climate change science; and 5 |
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109 | 109 | | (H)(D) one member to represent Vermont manufacturers. 6 |
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110 | 110 | | (10) the following members who shall be appointed by the Committee on 7 |
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111 | 111 | | Committees: 8 |
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112 | 112 | | (A) one member with expertise in the design and implementation of 9 |
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113 | 113 | | programs to increase resilience to and respond to natural disasters resulting 10 |
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114 | 114 | | from climate change; 11 |
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115 | 115 | | (B)(E) one member to represent the clean energy sector; 12 |
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116 | 116 | | (C)(F) one member to represent the small business community; 13 |
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117 | 117 | | (D)(G) one member to represent the Vermont Community Action 14 |
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118 | 118 | | Partnership; 15 |
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119 | 119 | | (E)(H) one member to represent the farm and forest sector; and 16 |
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120 | 120 | | (F)(I) one youth member; and 17 |
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121 | 121 | | (G) one member of a Vermont-based organization with expertise in 18 |
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122 | 122 | | energy and data analysis. 19 |
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123 | 123 | | (b) The Council shall make recommendations to the Secretary of Natural 20 |
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124 | 124 | | Resources and in formulating the recommendations the Council shall: 21 BILL AS INTRODUCED S.110 |
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126 | 126 | | |
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127 | 127 | | |
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128 | 128 | | VT LEG #378873 v.5 |
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129 | 129 | | (1) Identify, analyze, and evaluate strategies and programs to reduce 1 |
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130 | 130 | | greenhouse gas emissions; achieve the State’s reduction requirements pursuant 2 |
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131 | 131 | | to section 578 of this title; and build resilience to prepare the State’s 3 |
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132 | 132 | | communities, infrastructure, and economy to adapt to the current and 4 |
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133 | 133 | | anticipated effects of climate change, including:. 5 |
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134 | 134 | | (A) creating an inventory of all existing programs that impact 6 |
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135 | 135 | | greenhouse gas emissions and their efficacy; 7 |
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136 | 136 | | (B) evaluating and analyzing the technical feasibility and cost-8 |
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137 | 137 | | effectiveness of existing strategies and programs and identifying, evaluating, 9 |
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138 | 138 | | and analyzing new strategies and programs that are based upon emerging 10 |
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139 | 139 | | scientific and technical information; 11 |
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140 | 140 | | (C) analyzing each source or category of sources of greenhouse gas 12 |
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141 | 141 | | emissions and identifying which strategies and programs will result in the 13 |
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142 | 142 | | largest greenhouse gas emissions reductions in the most cost-effective manner; 14 |
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143 | 143 | | (D) identifying, analyzing, and evaluating public and private 15 |
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144 | 144 | | financing strategies to support the transition to a reduced greenhouse gas 16 |
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145 | 145 | | emissions economy and a more resilient State; and 17 |
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146 | 146 | | (E) evaluating and analyzing existing strategies and programs that 18 |
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147 | 147 | | build resilience, and identifying, evaluating, and analyzing new strategies and 19 |
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148 | 148 | | programs to prepare the State’s communities, infrastructure, and economy to 20 |
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149 | 149 | | adapt to the current and anticipated effects of climate change. 21 BILL AS INTRODUCED S.110 |
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151 | 151 | | |
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152 | 152 | | |
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153 | 153 | | VT LEG #378873 v.5 |
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154 | 154 | | (2) On or before December 1, 2021, adopt Adopt the Vermont Climate 1 |
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155 | 155 | | Action Plan (Plan) and update the Plan on or before July 1 every four years 2 |
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156 | 156 | | thereafter, the first of which was adopted on December 1, 2021. On or before 3 |
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157 | 157 | | December 15, 2026, the Secretary of Natural Resources, in collaboration with 4 |
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158 | 158 | | the Department of Public Service and other relevant agencies and departments 5 |
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159 | 159 | | of State government, shall deliver a companion implementation strategy and 6 |
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160 | 160 | | aggressive-yet-achievable timeline for achieving net zero emissions across all 7 |
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161 | 161 | | sectors by 2035. The companion implementation strategy shall include long-8 |
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162 | 162 | | term funding mechanisms that prioritizes use of existing resources. On or 9 |
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163 | 163 | | before July 1 every five years thereafter, the Secretary of Natural Resources 10 |
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164 | 164 | | shall consider the recommendations of the Council and shall update the Plan. 11 |
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165 | 165 | | The Council shall finalize its recommendations on or before January 1 of the 12 |
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166 | 166 | | year that the Plan is due. The Plan shall set forth recommend the specific 13 |
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167 | 167 | | affordable and practicable initiatives, programs, and strategies that the State 14 |
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168 | 168 | | shall pursue will consider implementing to reduce greenhouse gas meet net 15 |
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169 | 169 | | zero emissions reductions; achieve the State’s 2035 reduction requirements 16 |
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170 | 170 | | target pursuant to section 578 of this title; and build resilience to prepare the 17 |
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171 | 171 | | State’s communities, infrastructure, and economy to adapt to the current and 18 |
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172 | 172 | | anticipated effects of climate change. 19 |
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173 | 173 | | (3) Identify the means to accurately measure: 20 BILL AS INTRODUCED S.110 |
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175 | 175 | | |
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176 | 176 | | |
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177 | 177 | | VT LEG #378873 v.5 |
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178 | 178 | | (A) the State’s greenhouse gas emissions and progress towards 1 |
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179 | 179 | | meeting the reduction requirements pursuant to section 578 of this title, 2 |
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180 | 180 | | including publishing emissions data in a timely manner; 3 |
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181 | 181 | | (B) the effectiveness of the specific initiatives, programs, and 4 |
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182 | 182 | | strategies set forth in the Plan and updates to the Plan in reducing greenhouse 5 |
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183 | 183 | | gas emissions; 6 |
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184 | 184 | | (C) the effect of climate change on the State’s climate, wildlife, and 7 |
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185 | 185 | | natural resources; and 8 |
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186 | 186 | | (D) the existing resilience of the State’s communities, infrastructure, 9 |
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187 | 187 | | and economy and progress towards improving resilience to adapt to the current 10 |
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188 | 188 | | and anticipated effects of climate change. 11 |
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189 | 189 | | (4) Provide guidance to the Secretary of Natural Resources concerning 12 |
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190 | 190 | | the form, content, and subject matter of rules to be adopted recommended for 13 |
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191 | 191 | | adoption pursuant to section 593 of this chapter. 14 |
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192 | 192 | | (c) The Council shall create the subcommittees listed in this subsection and 15 |
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193 | 193 | | may also create other subcommittees to advise the Council, and assist in 16 |
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194 | 194 | | preparing the Plan, and carry out other duties. The Council may appoint 17 |
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195 | 195 | | members of the Council to serve as members of subcommittees and may also 18 |
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196 | 196 | | appoint individuals who are not members of the Council to serve as members 19 |
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197 | 197 | | of subcommittees. 20 |
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198 | 198 | | * * * 21 BILL AS INTRODUCED S.110 |
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200 | 200 | | |
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201 | 201 | | |
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202 | 202 | | VT LEG #378873 v.5 |
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203 | 203 | | (3) Just Transitions Subcommittee. This subcommittee shall focus on 1 |
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204 | 204 | | ensuring that strategies to reduce net greenhouse gas emissions and to build 2 |
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205 | 205 | | resilience to adapt to the effects of climate change benefit and support all 3 |
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206 | 206 | | residents of the State fairly and equitably. This subcommittee shall ensure that 4 |
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207 | 207 | | strategies consider the disproportionate impact of climate change on rural, low-5 |
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208 | 208 | | income, and marginalized communities and that programs and incentives for 6 |
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209 | 209 | | building resilience are designed to be accessible to all Vermonters and do not 7 |
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210 | 210 | | unfairly burden any groups, communities, geographic locations, or economic 8 |
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211 | 211 | | sectors. This subcommittee may adopt a measurement tool to assess the 9 |
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212 | 212 | | equitability of programs and strategies considered by the Council. 10 |
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213 | 213 | | * * * 11 |
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214 | 214 | | (d) The Council shall recommend necessary legislation to the General 12 |
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215 | 215 | | Assembly concerning: 13 |
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216 | 216 | | (1) adopting market-based or alternative compliance mechanisms as part 14 |
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217 | 217 | | of the State’s greenhouse gas emissions reduction strategies; 15 |
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218 | 218 | | (2) changes to land use and development, including to chapter 151 of this 16 |
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219 | 219 | | title and 30 V.S.A. § 248, to reduce greenhouse gas emissions and promote 17 |
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220 | 220 | | resilience in response to climate change; 18 |
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221 | 221 | | (3) statutory authority necessary to implement the Plan; and 19 |
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222 | 222 | | (4) any other matter the Council deems appropriate. 20 BILL AS INTRODUCED S.110 |
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225 | 225 | | |
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227 | 227 | | (e) The Council shall have the administrative, and technical, and legal 1 |
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228 | 228 | | assistance of the Agency of Natural Resources and the Department of Public 2 |
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229 | 229 | | Service and may request the assistance of any Executive Branch Agency 3 |
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230 | 230 | | agency and Department department. 4 |
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231 | 231 | | (f)(e) A majority of the sitting members of the Council shall constitute a 5 |
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232 | 232 | | quorum, and action taken by the Council may be authorized by a majority of 6 |
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233 | 233 | | the members present and voting at any meeting at which a quorum is present. 7 |
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234 | 234 | | The Council may permit any or all members to participate in a meeting by, or 8 |
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235 | 235 | | conduct the meeting through the use of, any means of communication, 9 |
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236 | 236 | | including electronic, telecommunications, and video- or audio-conferencing 10 |
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237 | 237 | | technology, by which all members participating may simultaneously or 11 |
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238 | 238 | | sequentially communicate with each other during the meeting. A member 12 |
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239 | 239 | | participating in a meeting by this means is deemed to be present in person at 13 |
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240 | 240 | | the meeting. The Council shall meet at the call of the Chair or a majority of 14 |
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241 | 241 | | the members of the Council, and the Council may elect officers and adopt any 15 |
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242 | 242 | | other procedural rules as it shall determine necessary and appropriate to 16 |
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243 | 243 | | perform its work. 17 |
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244 | 244 | | (g)(f) Members of the Council and members of subcommittees who are not 18 |
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245 | 245 | | State employees shall be entitled to per diem compensation and reimbursement 19 |
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246 | 246 | | of expenses for each day spent in the performance of their duties, as permitted 20 BILL AS INTRODUCED S.110 |
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248 | 248 | | |
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249 | 249 | | |
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250 | 250 | | VT LEG #378873 v.5 |
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251 | 251 | | under 32 V.S.A. § 1010. These payments shall be made from monies 1 |
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252 | 252 | | appropriated to the Agency of Natural Resources. 2 |
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253 | 253 | | (h)(g) The members of the Council appointed pursuant to subdivision (a) 3 |
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254 | 254 | | (9)(11) of this section shall be appointed to initial terms of two years, and 4 |
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255 | 255 | | members appointed pursuant to subdivision (a)(10) of this section shall be 5 |
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256 | 256 | | appointed to initial terms of three years. Thereafter, each appointed member 6 |
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257 | 257 | | shall serve a term of three years or until his or her a member’s earlier 7 |
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258 | 258 | | resignation or removal. A vacancy shall be filled by the appointing authority 8 |
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259 | 259 | | for the remainder of the unexpired term. An appointed member shall not serve 9 |
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260 | 260 | | more than three two full consecutive three-year terms. 10 |
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261 | 261 | | (i)(h) On or before January 15, 2021 and every January 15 thereafter, the 11 |
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262 | 262 | | Council shall submit a written report to the General Assembly concerning the 12 |
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263 | 263 | | Council’s activities and the State’s progress towards meeting the 2035 net 13 |
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264 | 264 | | greenhouse gas reduction requirements pursuant to section 578 of this title. On 14 |
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265 | 265 | | or before November 1, 2021 and every second November 1 thereafter, the 15 |
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266 | 266 | | Director of Vermont Emergency Management shall file a report with the 16 |
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267 | 267 | | Council concerning Vermont’s overall municipal resilience to increased 17 |
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268 | 268 | | hazards presented by climate change that shall include hazard mitigation plans, 18 |
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269 | 269 | | local emergency management plans, and survey results as deemed appropriate 19 |
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270 | 270 | | by the Director. Subsequent reports shall include updates to document 20 BILL AS INTRODUCED S.110 |
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272 | 272 | | |
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273 | 273 | | |
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274 | 274 | | VT LEG #378873 v.5 |
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275 | 275 | | progress in local resilience. The report shall inform Council recommendations 1 |
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276 | 276 | | on policies to address gaps in local resilience. 2 |
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277 | 277 | | Sec. 5. 10 V.S.A. § 592 is amended to read: 3 |
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278 | 278 | | § 592. THE VERMONT CLIMATE ACTION PLAN 4 |
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279 | 279 | | (a) On or before December 1, 2021, the Vermont Climate Council 5 |
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280 | 280 | | (Council) shall adopt adopted the Vermont Climate Action Plan (Plan) and. 6 |
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281 | 281 | | The Secretary of Natural Resources shall update the Plan on or before July 1 7 |
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282 | 282 | | every four five years thereafter. 8 |
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283 | 283 | | (b) The Plan shall set forth recommend the specific affordable and 9 |
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284 | 284 | | practicable initiatives, programs, and strategies, including regulatory and 10 |
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285 | 285 | | legislative changes, necessary to achieve the State’s net zero greenhouse gas 11 |
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286 | 286 | | emissions reduction requirements across all sectors pursuant to section 578 of 12 |
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287 | 287 | | this title and build resilience to prepare the State’s communities, infrastructure, 13 |
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288 | 288 | | and economy to adapt to the current and anticipated effects of climate change. 14 |
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289 | 289 | | The Plan shall include those specific affordable and practicable initiatives, 15 |
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290 | 290 | | programs, and strategies that will: 16 |
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291 | 291 | | * * * 17 |
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292 | 292 | | (c) The analysis, development, and selection of the specific initiatives, 18 |
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293 | 293 | | programs, and strategies contained in the Plan and updates to the Plan shall be 19 |
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294 | 294 | | based upon: 20 BILL AS INTRODUCED S.110 |
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296 | 296 | | |
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297 | 297 | | |
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298 | 298 | | VT LEG #378873 v.5 |
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299 | 299 | | (1) the Council’s analysis and evaluation of strategies and programs 1 |
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300 | 300 | | pursuant to subdivision 591(b)(1) of this chapter; 2 |
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301 | 301 | | (2) reports, plans, and information pertaining to greenhouse gas 3 |
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302 | 302 | | emissions reduction and climate resilience strategies from the Agency of 4 |
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303 | 303 | | Natural Resources, the Department of Public Service, other State agencies and 5 |
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304 | 304 | | departments, and, where appropriate, the State Comprehensive Energy Plan 6 |
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305 | 305 | | prepared pursuant to 30 V.S.A. § 202b and the 2018 Vermont Climate Action 7 |
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306 | 306 | | Commission Report to the Governor; and 8 |
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307 | 307 | | (3) other reports, plans, and information. 9 |
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308 | 308 | | (d) The specific initiatives, programs, and strategies contained in To the 10 |
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309 | 309 | | extent practicable and affordable, the Plan and updates to the Plan shall further 11 |
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310 | 310 | | the following objectives: 12 |
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311 | 311 | | (1) to prioritize the most cost-effective, technologically feasible, and 13 |
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312 | 312 | | equitable greenhouse gas emissions reduction pathways and adaptation and 14 |
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313 | 313 | | preparedness strategies informed by scientific and technical expertise; 15 |
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314 | 314 | | (2) to provide for net zero greenhouse gas emissions reductions that 16 |
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315 | 315 | | reflect the relative contribution of each source or category of source of 17 |
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316 | 316 | | emissions; 18 |
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317 | 317 | | * * * 19 |
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318 | 318 | | (e) The Plan updated Plans shall form the basis for the recommend rules 20 |
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319 | 319 | | adopted for consideration by the Secretary of Natural Resources pursuant to 21 BILL AS INTRODUCED S.110 |
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322 | 322 | | |
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324 | 324 | | section 593 of this chapter. If the Council fails to adopt the Plan or update the 1 |
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325 | 325 | | Plan as required by this chapter, the The Secretary shall proceed with adopting 2 |
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326 | 326 | | and implementing rules pursuant to subsection 593(j) of this chapter that, in the 3 |
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327 | 327 | | Secretary’s discretion, are cost effective, practicable, and designed to achieve 4 |
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328 | 328 | | the net zero greenhouse gas emissions reductions requirements pursuant to 5 |
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329 | 329 | | section 578 of this title. 6 |
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330 | 330 | | Sec. 6. 10 V.S.A. § 593 is amended to read: 7 |
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331 | 331 | | § 593. RULES 8 |
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332 | 332 | | (a) The Secretary of Natural Resources shall consider and adopt rules 9 |
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333 | 333 | | pursuant to 3 V.S.A. chapter 25, which are, in the Secretary’s discretion, cost 10 |
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334 | 334 | | effective, affordable, practicable, and designed to achieve the net zero 11 |
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335 | 335 | | greenhouse gas emissions reductions requirements pursuant to section 578 of 12 |
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336 | 336 | | this title and are consistent with the Vermont Climate Action Plan (Plan). In 13 |
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337 | 337 | | adopting rules pursuant to this section, the Secretary shall: 14 |
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338 | 338 | | (1) Ensure that Consider whether the rules are consistent with the 15 |
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339 | 339 | | specific initiatives, programs, and strategies set forth in the Plan and updates to 16 |
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340 | 340 | | the Plan; follow consider the Vermont Climate Council’s guidance provided 17 |
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341 | 341 | | pursuant to subdivision 591(b)(4) of this chapter; and further the objectives 18 |
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342 | 342 | | pursuant to subsection 592(d) of this chapter. 19 |
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343 | 343 | | (2) Develop a detailed record containing facts; data; and legal, scientific, 20 |
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344 | 344 | | and technical information sufficient to establish a reasonable basis to believe 21 BILL AS INTRODUCED S.110 |
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347 | 347 | | |
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348 | 348 | | VT LEG #378873 v.5 |
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349 | 349 | | that the rules shall achieve the State’s net zero greenhouse gas emissions 1 |
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350 | 350 | | reductions requirements pursuant to section 578 of this title. This detailed 2 |
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351 | 351 | | record shall be included with the rule and filed with the Secretary of State 3 |
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352 | 352 | | pursuant to 3 V.S.A. § 838. 4 |
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353 | 353 | | * * * 5 |
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354 | 354 | | (e) On or before July 1, 2026 2027, the Secretary shall consider and adopt 6 |
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355 | 355 | | and implement rules, which are, in the Secretary’s discretion, cost effective, 7 |
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356 | 356 | | affordable, practicable, and designed to achieve the 2035 net greenhouse gas 8 |
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357 | 357 | | emissions reductions requirements pursuant to section 578 of this title and are 9 |
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358 | 358 | | consistent with the specific initiatives, programs, and strategies set forth in the 10 |
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359 | 359 | | Plan and updates to the Plan and achieve the 2030 2035 net zero greenhouse 11 |
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360 | 360 | | gas emissions reduction across all sectors requirement pursuant to section 578 12 |
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361 | 361 | | of this title. The Secretary shall observe the requirements of subsection (c) of 13 |
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362 | 362 | | this section. 14 |
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363 | 363 | | (f) The Secretary shall, at his or her discretion, but not less frequently than 15 |
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364 | 364 | | once every two years between 2026 and 2030, review and, if necessary, update 16 |
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365 | 365 | | the rules required by subsection (e) of this section in order to ensure that the 17 |
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366 | 366 | | 2030 greenhouse gas emissions reduction requirement pursuant to section 578 18 |
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367 | 367 | | of this title is achieved. In performing this review and update, the Secretary 19 |
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368 | 368 | | shall observe the requirements of subsection (c) of this section. 20 BILL AS INTRODUCED S.110 |
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370 | 370 | | |
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371 | 371 | | |
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372 | 372 | | VT LEG #378873 v.5 |
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373 | 373 | | (g) On or before July 1, 2040, the Secretary shall consider and adopt and 1 |
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374 | 374 | | implement rules, which are, in the Secretary’s discretion, cost effective, 2 |
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375 | 375 | | affordable, practicable, and designed to maintain the net zero or less 3 |
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376 | 376 | | greenhouse gas emissions and are consistent with the specific initiatives, 4 |
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377 | 377 | | programs, and strategies set forth in the Plan and updates to the Plan and 5 |
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378 | 378 | | achieve the 2050 net zero greenhouse gas emissions reduction requirement 6 |
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379 | 379 | | pursuant to section 578 of this title across all sectors. 7 |
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380 | 380 | | (h) The Secretary shall, at his or her discretion, but not less frequently than 8 |
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381 | 381 | | once every two years between 2040 and 2050, review and, if necessary, update 9 |
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382 | 382 | | the rules required by subsection (g) of this section in order to ensure that the 10 |
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383 | 383 | | 2050 greenhouse gas emissions reduction requirement pursuant to section 578 11 |
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384 | 384 | | of this title is achieved. In performing this review and update, the Secretary 12 |
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385 | 385 | | shall observe the requirements of subsection (c) of this section. 13 |
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386 | 386 | | (i)(g) The Secretary may establish alternative reduction mechanisms to be 14 |
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387 | 387 | | used by sources of greenhouse gas emissions, if necessary, to achieve net zero 15 |
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388 | 388 | | emissions after 2050 on or before 2035. 16 |
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389 | 389 | | (1) The use of alternative reduction mechanisms shall account for not 17 |
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390 | 390 | | more than 20 percent of statewide greenhouse gas emissions estimated as a 18 |
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391 | 391 | | percentage of 1990 emissions. The use of a mechanism must offset a quantity 19 |
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392 | 392 | | of greenhouse gas emissions equal to or greater than the amount of greenhouse 20 |
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393 | 393 | | gasses emitted. 21 BILL AS INTRODUCED S.110 |
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394 | 394 | | 2025 Page 17 of 36 |
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395 | 395 | | |
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396 | 396 | | |
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397 | 397 | | VT LEG #378873 v.5 |
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398 | 398 | | (2) The Secretary shall verify that any greenhouse gas emissions offset 1 |
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399 | 399 | | projects authorized as alternative reduction mechanisms represent equivalent 2 |
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400 | 400 | | emissions reductions or carbon sequestration that are real, additional, 3 |
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401 | 401 | | verifiable, enforceable, and permanent. 4 |
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402 | 402 | | (j) If the Council fails to adopt the Plan or update the Plan as required by 5 |
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403 | 403 | | section 592 of this chapter, the Secretary shall adopt and implement rules 6 |
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404 | 404 | | pursuant to 3 V.S.A. chapter 25 to achieve the greenhouse gas emissions 7 |
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405 | 405 | | reductions requirements pursuant to section 578 of this title. 8 |
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406 | 406 | | (k)(h) Nothing in this section shall be construed to limit the existing 9 |
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407 | 407 | | authority of a State agency, department, or entity to regulate greenhouse gas 10 |
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408 | 408 | | emissions or establish strategies or adopt rules to mitigate climate risk and 11 |
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409 | 409 | | build resilience to climate change. 12 |
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410 | 410 | | (l) The General Assembly may repeal, revise, or modify any rule or 13 |
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411 | 411 | | amendment to any rule, and its action shall not be abridged, enlarged, or 14 |
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412 | 412 | | modified by subsequent rule. 15 |
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413 | 413 | | * * * Clean Energy Standard * * * 16 |
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414 | 414 | | Sec. 7. 30 V.S.A. § 202a is amended to read: 17 |
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415 | 415 | | § 202a. STATE ENERGY POLICY 18 |
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416 | 416 | | It is the general policy of the State of Vermont: 19 |
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417 | 417 | | * * * 20 BILL AS INTRODUCED S.110 |
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419 | 419 | | |
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420 | 420 | | |
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421 | 421 | | VT LEG #378873 v.5 |
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422 | 422 | | (3) To meet Vermont’s energy service needs in a manner that will 1 |
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423 | 423 | | achieve the greenhouse gas emissions reductions requirements goals pursuant 2 |
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424 | 424 | | to 10 V.S.A § 578 and is consistent with the Vermont Climate Action Plan 3 |
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425 | 425 | | adopted and updated pursuant to 10 V.S.A. § 592. 4 |
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426 | 426 | | Sec. 8. 30 V.S.A. § 202b is amended to read: 5 |
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427 | 427 | | § 202b. STATE COMPREHENSIVE ENERGY PLAN 6 |
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428 | 428 | | (a) The Department of Public Service, in conjunction with other State 7 |
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429 | 429 | | agencies designated by the Governor, shall prepare a State Comprehensive 8 |
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430 | 430 | | Energy Plan covering at least a 20-year period. The Plan shall seek to 9 |
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431 | 431 | | implement the State energy policy set forth in section 202a of this title, 10 |
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432 | 432 | | including meeting the State’s greenhouse gas emissions reductions 11 |
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433 | 433 | | requirements goals pursuant to 10 V.S.A. § 578, and shall be consistent with 12 |
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434 | 434 | | the relevant goals of 24 V.S.A. § 4302 and with the Vermont Climate Action 13 |
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435 | 435 | | Plan adopted and updated pursuant to 10 V.S.A. § 592. The State 14 |
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436 | 436 | | Comprehensive Energy Plan shall include: 15 |
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437 | 437 | | * * * 16 |
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438 | 438 | | (e) The Commissioner of Public Service (Commissioner) shall file an 17 |
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439 | 439 | | annual report on progress in meeting the goals of the Plan. The report shall 18 |
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440 | 440 | | address each of the following sectors of energy consumption in the State: 19 |
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441 | 441 | | electricity, nonelectric fuels for thermal purposes, and transportation. In 20 |
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442 | 442 | | preparing the report, the Commissioner shall consult with the Secretaries of 21 BILL AS INTRODUCED S.110 |
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443 | 443 | | 2025 Page 19 of 36 |
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444 | 444 | | |
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445 | 445 | | |
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446 | 446 | | VT LEG #378873 v.5 |
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447 | 447 | | Administration, of Agriculture, Food and Markets, of Natural Resources, and 1 |
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448 | 448 | | of Transportation and the Commissioner of Buildings and General Services. 2 |
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449 | 449 | | * * * 3 |
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450 | 450 | | (3) For each sector, the report shall provide: 4 |
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451 | 451 | | (A) In millions of British thermal units (MMBTUs) for the most 5 |
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452 | 452 | | recent calendar year for which data are available, the total amount of energy 6 |
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453 | 453 | | consumed, the amount of clean and renewable energy consumed, and the 7 |
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454 | 454 | | percentage of clean and renewable energy consumed. For the electricity 8 |
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455 | 455 | | sector, the report shall also state the amounts in megawatt hours (MWH) of 9 |
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456 | 456 | | retail sales and load for Vermont as well as for each retail electricity provider 10 |
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457 | 457 | | and the Vermont and New England summer and winter peak electric demand, 11 |
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458 | 458 | | including the hour and day of peak demand. 12 |
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459 | 459 | | (B) Projections of the energy reductions and shift to clean and 13 |
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460 | 460 | | renewable energy expected to occur under existing policies, technologies, and 14 |
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461 | 461 | | markets. The most recent available data shall be used to inform these 15 |
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462 | 462 | | projections and shall be provided as a supplement to the data described in 16 |
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463 | 463 | | subdivision (A) of this subdivision (3). 17 |
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464 | 464 | | * * * 18 |
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465 | 465 | | (7) The report shall include the following information on progress 19 |
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466 | 466 | | toward meeting the Renewable Clean Energy Standard (RES CES): 20 BILL AS INTRODUCED S.110 |
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468 | 468 | | |
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469 | 469 | | |
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470 | 470 | | VT LEG #378873 v.5 |
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471 | 471 | | (A) An assessment of the costs and benefits of the RES CES based 1 |
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472 | 472 | | on the most current available data, including rate and economic impacts, 2 |
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473 | 473 | | customer savings, technology deployment, greenhouse gas emission reductions 3 |
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474 | 474 | | achieved both relative to 10 V.S.A § 578 requirements and societally, fuel 4 |
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475 | 475 | | price stability, effect on transmission and distribution upgrade costs, and any 5 |
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476 | 476 | | recommended changes based on this assessment. 6 |
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477 | 477 | | (i) For the most recent calendar year for which data is available, 7 |
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478 | 478 | | each retail electricity provider’s retail sales and load, in MWh; required 8 |
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479 | 479 | | amounts of clean and renewable energy for each category of the RES CES as 9 |
---|
480 | 480 | | set forth in section 8005 of this title; and amounts of clean and renewable 10 |
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481 | 481 | | energy and tradeable clean and renewable energy credits eligible to satisfy the 11 |
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482 | 482 | | requirements of sections 8004 and 8005 of this title actually owned by the 12 |
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483 | 483 | | Vermont retail electricity providers, expressed as a percentage of retail sales 13 |
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484 | 484 | | and total load MWh purchases made by Vermont retail electricity providers to 14 |
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485 | 485 | | meet demand. 15 |
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486 | 486 | | * * * 16 |
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487 | 487 | | (iv) The report shall assess how costs and benefits of the RES 17 |
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488 | 488 | | CES are being distributed across State, to the extent possible given available 18 |
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489 | 489 | | data, by retail electricity service territory, municipality, and environmental 19 |
---|
490 | 490 | | justice focus populations, as defined by 3 V.S.A. § 6002. Such an assessment 20 |
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491 | 491 | | shall consider metrics to monitor affordability of electric rates. 21 BILL AS INTRODUCED S.110 |
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492 | 492 | | 2025 Page 21 of 36 |
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493 | 493 | | |
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494 | 494 | | |
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495 | 495 | | VT LEG #378873 v.5 |
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496 | 496 | | (B) Projections, looking at least 10 years ahead, of the impacts of the 1 |
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497 | 497 | | RES CES. 2 |
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498 | 498 | | * * * 3 |
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499 | 499 | | (iii) The Department shall project, for the State, the impact of the 4 |
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500 | 500 | | RES CES in each of the following areas: electric utility rates, total energy 5 |
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501 | 501 | | consumption, electric energy consumption, fossil fuel consumption, and 6 |
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502 | 502 | | greenhouse gas emissions. The report shall compare the amount or level in 7 |
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503 | 503 | | each of these areas with and without the program. 8 |
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504 | 504 | | (C) An assessment of whether the requirements of the RES CES have 9 |
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505 | 505 | | been met to date, and any recommended changes needed to achieve those 10 |
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506 | 506 | | requirements. 11 |
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507 | 507 | | (D) A summary of the activities of distributed renewable generation 12 |
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508 | 508 | | programs that support the achievement of the RES CES, including: 13 |
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509 | 509 | | * * * 14 |
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510 | 510 | | Sec. 9. 30 V.S.A. § 8002 is amended to read: 15 |
---|
511 | 511 | | § 8002. DEFINITIONS 16 |
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512 | 512 | | As used in this chapter: 17 |
---|
513 | 513 | | * * * 18 |
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514 | 514 | | (7) “Environmental attributes” means the characteristics of a plant that 19 |
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515 | 515 | | enable the energy it produces to qualify as clean or renewable energy and 20 |
---|
516 | 516 | | include any and all benefits of the plant to the environment such as avoided 21 BILL AS INTRODUCED S.110 |
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517 | 517 | | 2025 Page 22 of 36 |
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518 | 518 | | |
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519 | 519 | | |
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520 | 520 | | VT LEG #378873 v.5 |
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521 | 521 | | emissions or other impacts to air, water, or soil that may occur through the 1 |
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522 | 522 | | plant’s displacement of a nonclean or nonrenewable energy source. 2 |
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523 | 523 | | * * * 3 |
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524 | 524 | | (25) “Clean energy” means both renewable energy, as defined in this 4 |
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525 | 525 | | section, as well as electricity produced using a technology that does not emit 5 |
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526 | 526 | | greenhouse gases as a by-product of energy generation. 6 |
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527 | 527 | | * * * 7 |
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528 | 528 | | (29) “RES” “CES” means the Renewable Clean Energy Standard 8 |
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529 | 529 | | established under sections 8004 and 8005 of this title. 9 |
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530 | 530 | | * * * 10 |
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531 | 531 | | (33) “Tradeable zero emissions credits” or “ZECs” means all of the 11 |
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532 | 532 | | environmental attributes associated with a single unit of energy generated by a 12 |
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533 | 533 | | clean energy source where: 13 |
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534 | 534 | | (A) those attributes are transferred or recorded separately from that 14 |
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535 | 535 | | unit of energy; 15 |
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536 | 536 | | (B) the party claiming ownership of the tradeable zero emissions 16 |
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537 | 537 | | credits has acquired the exclusive legal ownership of all, and not less than all, 17 |
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538 | 538 | | the environmental attributes associated with that unit of energy; and 18 |
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539 | 539 | | (C) exclusive legal ownership can be verified through an auditable 19 |
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540 | 540 | | contract path or pursuant to the system established or authorized by the 20 |
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541 | 541 | | Commission or any program for tracking and verification of the ownership of 21 BILL AS INTRODUCED S.110 |
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542 | 542 | | 2025 Page 23 of 36 |
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543 | 543 | | |
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544 | 544 | | |
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545 | 545 | | VT LEG #378873 v.5 |
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546 | 546 | | environmental attributes of energy legally recognized in any state and 1 |
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547 | 547 | | approved by the Commission. 2 |
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548 | 548 | | Sec. 10. 30 V.S.A. § 8004 is amended to read: 3 |
---|
549 | 549 | | § 8004. SALES OF ELECTRIC ENERGY; RENEWABLE CLEAN 4 |
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550 | 550 | | ENERGY STANDARD (RES CES) 5 |
---|
551 | 551 | | (a) Establishment Expansion; requirements. The RES Renewable Energy 6 |
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552 | 552 | | Standard is established expanded to become the CES. Under this program, a 7 |
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553 | 553 | | retail electricity provider shall not sell or otherwise provide or offer to sell or 8 |
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554 | 554 | | provide electricity in the State of Vermont without ownership of sufficient 9 |
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555 | 555 | | energy produced by clean and renewable energy plants or sufficient tradeable 10 |
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556 | 556 | | renewable energy and zero emissions credits from plants whose energy is 11 |
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557 | 557 | | capable of delivery in New England that reflect the required amounts of clean 12 |
---|
558 | 558 | | and renewable energy set forth in section 8005 of this title or without support 13 |
---|
559 | 559 | | of energy transformation projects in accordance with that section. A retail 14 |
---|
560 | 560 | | electricity provider may meet the required amounts of clean and renewable 15 |
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561 | 561 | | energy through eligible tradeable renewable energy and zero emissions credits 16 |
---|
562 | 562 | | that it owns and retires, eligible clean and renewable energy resources with 17 |
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563 | 563 | | environmental attributes still attached, or a combination of those credits and 18 |
---|
564 | 564 | | resources. 19 BILL AS INTRODUCED S.110 |
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565 | 565 | | 2025 Page 24 of 36 |
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566 | 566 | | |
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567 | 567 | | |
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568 | 568 | | VT LEG #378873 v.5 |
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569 | 569 | | (b) Rules. The Commission shall adopt update the rules that are necessary 1 |
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570 | 570 | | to allow the Commission and the Department to implement and supervise 2 |
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571 | 571 | | further the implementation and maintenance of the RES CES. 3 |
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572 | 572 | | (c) RECS RECs and ZECs; banking. The Commission shall allow a 4 |
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573 | 573 | | provider that has met the required amount amounts of renewable energy or 5 |
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574 | 574 | | zero emissions credits in a given year, commencing with 2017, to retain 6 |
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575 | 575 | | tradeable renewable energy or zero emissions credits created or purchased in 7 |
---|
576 | 576 | | excess of that amount for application to the provider’s required amount of 8 |
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577 | 577 | | clean or renewable energy in one of the following three years. 9 |
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578 | 578 | | (d) Alternative compliance payment. In lieu of purchasing renewable 10 |
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579 | 579 | | energy or tradeable renewable energy or zero emissions credits or supporting 11 |
---|
580 | 580 | | energy transformation projects to satisfy the requirements of this section and 12 |
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581 | 581 | | section 8005 of this title, a retail electricity provider in this State may pay to 13 |
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582 | 582 | | the Vermont Clean Energy Development Fund established under section 8015 14 |
---|
583 | 583 | | of this title an alternative compliance payment at the applicable rate set forth in 15 |
---|
584 | 584 | | section 8005. The administrator of the Vermont Clean Energy Development 16 |
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585 | 585 | | Fund shall use the payment from a retail electricity provider electing to make 17 |
---|
586 | 586 | | an alternative compliance payment to satisfy its obligations under subdivisions 18 |
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587 | 587 | | 8005(a)(1), 8005(a)(2), 8005(a)(4), and 8005(a)(5) of this title for the 19 |
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588 | 588 | | development of renewable energy plants that are intended to serve and benefit 20 |
---|
589 | 589 | | customers with low income of the retail electricity provider that has made the 21 BILL AS INTRODUCED S.110 |
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590 | 590 | | 2025 Page 25 of 36 |
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591 | 591 | | |
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592 | 592 | | |
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593 | 593 | | VT LEG #378873 v.5 |
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594 | 594 | | payment. Such plants shall be located within the provider’s service territory, if 1 |
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595 | 595 | | feasible. In the event that such a payment is insufficient to enable the 2 |
---|
596 | 596 | | development of a renewable energy plant, the administrator may use the 3 |
---|
597 | 597 | | payment for other initiatives allowed under section 8015 of this title that will 4 |
---|
598 | 598 | | benefit customers with low income of the retail electricity provider that has 5 |
---|
599 | 599 | | made the payment. As used in this subsection (d), “customer with low 6 |
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600 | 600 | | income” means a person purchasing energy from a retail electricity provider 7 |
---|
601 | 601 | | and with an income that is less than or equal to 80 percent of area median 8 |
---|
602 | 602 | | income, adjusted for family size, as published annually by the U.S. Department 9 |
---|
603 | 603 | | of Housing and Urban Development. 10 |
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604 | 604 | | * * * 11 |
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605 | 605 | | (f) Joint efforts. Retail electricity providers may engage in joint efforts to 12 |
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606 | 606 | | meet one or more categories within the RES CES. 13 |
---|
607 | 607 | | Sec. 11. 30 V.S.A. § 8005 is amended to read: 14 |
---|
608 | 608 | | § 8005. RES CES CATEGORIES 15 |
---|
609 | 609 | | (a) Categories. This section specifies five categories of required resources 16 |
---|
610 | 610 | | to meet the requirements of the RES CES established in section 8004 of this 17 |
---|
611 | 611 | | title: total clean and renewable energy, distributed renewable generation, 18 |
---|
612 | 612 | | energy transformation, new renewable energy, and load growth renewable 19 |
---|
613 | 613 | | energy. In order to support progress toward Vermont’s climate goals and 20 BILL AS INTRODUCED S.110 |
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614 | 614 | | 2025 Page 26 of 36 |
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615 | 615 | | |
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616 | 616 | | |
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617 | 617 | | VT LEG #378873 v.5 |
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618 | 618 | | requirements, a provider may, but shall not be required to, exceed the 1 |
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619 | 619 | | statutorily required amounts under this section. 2 |
---|
620 | 620 | | (1) Total clean and renewable energy. 3 |
---|
621 | 621 | | (A) Purpose; establishment. To encourage the economic and 4 |
---|
622 | 622 | | environmental benefits of renewable energy, this subdivision establishes, for 5 |
---|
623 | 623 | | the RES CES, minimum total amounts of clean and renewable energy within 6 |
---|
624 | 624 | | the supply portfolio of each retail electricity provider. To satisfy this 7 |
---|
625 | 625 | | requirement, a provider may use clean energy generated within New England 8 |
---|
626 | 626 | | or renewable energy with environmental attributes attached or any class of 9 |
---|
627 | 627 | | tradeable renewable energy credits generated by any renewable energy plant 10 |
---|
628 | 628 | | whose energy is capable of delivery in New England. 11 |
---|
629 | 629 | | (B) Required amounts. 12 |
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630 | 630 | | (i) The amounts of total clean and renewable energy required by 13 |
---|
631 | 631 | | this subsection (a) shall be 63 percent of each retail electricity provider’s 14 |
---|
632 | 632 | | annual load during the year beginning on January 1, 2025, increasing by at 15 |
---|
633 | 633 | | least an additional four 7.4 percent each third January 1 thereafter until 16 |
---|
634 | 634 | | reaching 100 percent: on and after January 1, 2030. 17 |
---|
635 | 635 | | (i) on and after January 1, 2035 for a retail electricity provider who 18 |
---|
636 | 636 | | serves a single customer that takes service at 115 kilovolts and each municipal 19 |
---|
637 | 637 | | retail electricity provider formed under local charter or chapter 79 of this title; 20 |
---|
638 | 638 | | and 21 BILL AS INTRODUCED S.110 |
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639 | 639 | | 2025 Page 27 of 36 |
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640 | 640 | | |
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641 | 641 | | |
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642 | 642 | | VT LEG #378873 v.5 |
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643 | 643 | | (ii) on and after January 1, 2030, for all other retail electricity 1 |
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644 | 644 | | providers The amount of total renewable energy required by this subsection (a) 2 |
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645 | 645 | | shall be 55 percent of each retail electricity provider’s annual electricity 3 |
---|
646 | 646 | | purchases during the year beginning on January 1, 2027, increasing by an 4 |
---|
647 | 647 | | additional four percent each January 1 hereafter, until reaching 75 percent on 5 |
---|
648 | 648 | | and after January 1, 2032. 6 |
---|
649 | 649 | | * * * 7 |
---|
650 | 650 | | (2) Distributed renewable generation. 8 |
---|
651 | 651 | | (A) Purpose; establishment. This subdivision establishes a 9 |
---|
652 | 652 | | distributed renewable generation category for the RES CES. This category 10 |
---|
653 | 653 | | encourages the use of distributed generation to support the reliability of the 11 |
---|
654 | 654 | | State’s electric system; reduce line losses; contribute to avoiding or deferring 12 |
---|
655 | 655 | | improvements to that system necessitated by transmission or distribution 13 |
---|
656 | 656 | | constraints; and diversify the size and type of resources connected to that 14 |
---|
657 | 657 | | system. This category requires the use of renewable energy for these purposes 15 |
---|
658 | 658 | | to reduce environmental and health impacts from air emissions that would 16 |
---|
659 | 659 | | result from using other forms of generation. 17 |
---|
660 | 660 | | * * * 18 |
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661 | 661 | | (E) Avoiding transmission and distribution constraints. 19 |
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662 | 662 | | (i) Procurements by retail electricity providers and programs that 20 |
---|
663 | 663 | | support meeting the requirements of this subdivision (2) shall avoid 21 BILL AS INTRODUCED S.110 |
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664 | 664 | | 2025 Page 28 of 36 |
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665 | 665 | | |
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666 | 666 | | |
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667 | 667 | | VT LEG #378873 v.5 |
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668 | 668 | | development of new facilities in generation constrained areas of the 1 |
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669 | 669 | | distribution or transmission system that would not need to be expanded but for 2 |
---|
670 | 670 | | the addition of additional generation, unless costs associated with development 3 |
---|
671 | 671 | | in those generation constrained areas are not passed through to ratepayers 4 |
---|
672 | 672 | | through the cost to utilities to purchase the generation or in any other manner. 5 |
---|
673 | 673 | | To implement the intent of this section, the Commission may update or adopt 6 |
---|
674 | 674 | | rules, including rules that require a locational adjustor fee. 7 |
---|
675 | 675 | | (ii) A retail electricity provider may petition the Commission for relief 8 |
---|
676 | 676 | | of the requirements of subdivision (C) of this subdivision (a)(2) or the 9 |
---|
677 | 677 | | associated alternative compliance payment, which may be granted if the 10 |
---|
678 | 678 | | provider can demonstrate that it is unable to meet its requirements without 11 |
---|
679 | 679 | | extensive upgrades to the transmission or distribution infrastructure that would 12 |
---|
680 | 680 | | be borne by the provider’s ratepayers. If relief is granted, the retail electricity 13 |
---|
681 | 681 | | provider shall be required to instead acquire new renewable generation from 14 |
---|
682 | 682 | | facilities that qualify to meet the requirements of subdivision (4) of this 15 |
---|
683 | 683 | | subsection (a), in addition to the requirements as described in subdivision (4) 16 |
---|
684 | 684 | | of this subsection (a). 17 |
---|
685 | 685 | | (3) Energy transformation. 18 |
---|
686 | 686 | | (A) Purpose; establishment. This subdivision (3) establishes an 19 |
---|
687 | 687 | | energy transformation category for the RES CES. This category encourages 20 |
---|
688 | 688 | | Vermont retail electricity providers to support additional distributed renewable 21 BILL AS INTRODUCED S.110 |
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689 | 689 | | 2025 Page 29 of 36 |
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690 | 690 | | |
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691 | 691 | | |
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692 | 692 | | VT LEG #378873 v.5 |
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693 | 693 | | generation or to support other projects to reduce fossil fuel consumed by their 1 |
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694 | 694 | | customers and the emission of greenhouse gases attributable to that 2 |
---|
695 | 695 | | consumption. A retail electricity provider may satisfy the energy 3 |
---|
696 | 696 | | transformation requirement through distributed renewable generation in 4 |
---|
697 | 697 | | addition to the generation used to satisfy subdivision (2) of this subsection (a) 5 |
---|
698 | 698 | | or energy transformation projects or a combination of such generation and 6 |
---|
699 | 699 | | projects. 7 |
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700 | 700 | | * * * 8 |
---|
701 | 701 | | (4) New renewable energy. 9 |
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702 | 702 | | (A) Purpose; establishment. This subdivision (4) establishes a new 10 |
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703 | 703 | | regional renewable energy category for the RES CES. This category 11 |
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704 | 704 | | encourages the use of new renewable generation to support the reliability of 12 |
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705 | 705 | | the regional ISO-NE electric system. To satisfy this requirement, a provider 13 |
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706 | 706 | | shall use new renewable energy with environmental attributes attached or any 14 |
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707 | 707 | | class of tradeable renewable energy credits generated by any renewable energy 15 |
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708 | 708 | | plant coming into service after January 1, 2010 whose energy is capable of 16 |
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709 | 709 | | delivery in New England. 17 |
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710 | 710 | | * * * 18 |
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711 | 711 | | (6) Alternative compliance rates. 19 |
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712 | 712 | | (A) The alternative compliance payment rates for the categories 20 |
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713 | 713 | | established by subdivisions (1)–(3) of this subsection (a) shall be: 21 BILL AS INTRODUCED S.110 |
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714 | 714 | | 2025 Page 30 of 36 |
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715 | 715 | | |
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716 | 716 | | |
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717 | 717 | | VT LEG #378873 v.5 |
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718 | 718 | | (i) total clean and renewable energy requirement — $0.01 per 1 |
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719 | 719 | | kWh; and 2 |
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720 | 720 | | (ii) distributed renewable generation and energy transformation 3 |
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721 | 721 | | requirements — $0.06 per kWh. 4 |
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722 | 722 | | (B) The Commission shall adjust these rates for inflation annually 5 |
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723 | 723 | | commencing January 1, 2018, using the CPI. 6 |
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724 | 724 | | (C) For the distributed renewable energy, new renewable energy and 7 |
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725 | 725 | | load growth requirements, it shall be $0.04 per kWh annually commencing on 8 |
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726 | 726 | | January 1, 2025, with calculations for inflation beginning on January 1, 2023. 9 |
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727 | 727 | | * * * 10 |
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728 | 728 | | Sec. 12. 30 V.S.A. § 8006 is amended to read: 11 |
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729 | 729 | | § 8006. TRADEABLE CREDITS; ENVIRONMENTAL ATTRIBUTES; 12 |
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730 | 730 | | RECOGNITION, MONITORING, AND DISCLOSURE 13 |
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731 | 731 | | (a) The Commission shall establish or adopt a amend and expand its system 14 |
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732 | 732 | | of tradeable renewable energy credits for renewable resources that may be 15 |
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733 | 733 | | earned by electric generation qualifying for the prior RES to include clean 16 |
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734 | 734 | | energy generation. The system shall recognize tradeable renewable energy 17 |
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735 | 735 | | credits monitored and traded on the New England Generation Information 18 |
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736 | 736 | | System (GIS); shall provide a process for the recognition, approval, and 19 |
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737 | 737 | | monitoring of environmental attributes attached to clean and renewable energy 20 |
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738 | 738 | | that are eligible to satisfy the requirements of sections 8004 and 8005 of this 21 BILL AS INTRODUCED S.110 |
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739 | 739 | | 2025 Page 31 of 36 |
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740 | 740 | | |
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741 | 741 | | |
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742 | 742 | | VT LEG #378873 v.5 |
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743 | 743 | | title but are not monitored and traded on the GIS; and shall otherwise be 1 |
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744 | 744 | | consistent with regional practices. 2 |
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745 | 745 | | (b) The Commission shall ensure that all electricity provider and provider-3 |
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746 | 746 | | affiliate disclosures and representations made with regard to a provider’s 4 |
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747 | 747 | | portfolio are accurate and reasonably supported by objective data. Further, the 5 |
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748 | 748 | | Commission shall ensure that providers disclose the types of generation used 6 |
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749 | 749 | | and shall clearly distinguish between energy or tradeable energy credits 7 |
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750 | 750 | | provided from clean, renewable, and nonrenewable energy sources and 8 |
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751 | 751 | | existing and new renewable energy. 9 |
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752 | 752 | | Sec. 13. 30 V.S.A. § 8008 is amended to read: 10 |
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753 | 753 | | § 8008. AGREEMENTS; ATTRIBUTE REVENUES; DISPOSITION BY 11 |
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754 | 754 | | COMMISSION 12 |
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755 | 755 | | (a) As used in this section, “the revenues” means revenues that are from the 13 |
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756 | 756 | | sale, through tradeable clean or renewable energy certificates or other means, 14 |
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757 | 757 | | of environmental attributes associated with the generation of clean and 15 |
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758 | 758 | | renewable energy from a system of generation resources with a total plant 16 |
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759 | 759 | | capacity greater than 200 MW and that are received by a Vermont retail 17 |
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760 | 760 | | electricity provider on or after May 1, 2012, pursuant to an agreement, 18 |
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761 | 761 | | contract, memorandum of understanding, or other transaction in which a 19 |
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762 | 762 | | person or entity agrees to transfer such revenues or rights associated with such 20 |
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763 | 763 | | attributes to the provider. 21 BILL AS INTRODUCED S.110 |
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764 | 764 | | 2025 Page 32 of 36 |
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765 | 765 | | |
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766 | 766 | | |
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767 | 767 | | VT LEG #378873 v.5 |
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768 | 768 | | * * * 1 |
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769 | 769 | | Sec. 14. 30 V.S.A. § 8005b is added to read: 2 |
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770 | 770 | | § 8005b. RENEWABLE ENERGY FOR COMMUNITIES PROGRAM 3 |
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771 | 771 | | (a) Establishment. The Renewable Energy for Communities Program is 4 |
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772 | 772 | | established. To achieve the goals of subdivision 8005(a)(2) of this title, the 5 |
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773 | 773 | | Commission shall develop the Renewable Energy for Communities Program 6 |
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774 | 774 | | that meets the eligibility requirements of this section, which may be 7 |
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775 | 775 | | implemented by rule, order, or contract. Retail electricity providers shall issue 8 |
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776 | 776 | | periodic solicitations subject to the requirements of the Renewable Energy for 9 |
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777 | 777 | | Communities Program. 10 |
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778 | 778 | | (b) Eligible resources. Distributed renewable generation, as defined in 11 |
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779 | 779 | | subdivision 8002(a)(2) of this title, shall be eligible to participate in this 12 |
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780 | 780 | | program. 13 |
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781 | 781 | | (c) Objectives. It shall be the objective of the Renewable Energy for 14 |
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782 | 782 | | Communities Program to develop distributed generation at least-cost to 15 |
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783 | 783 | | ratepayers that is directed by, developed in consultation with, or directly 16 |
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784 | 784 | | benefits communities by one or more of the following: 17 |
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785 | 785 | | (1) delivering benefits from renewable energy systems to customers who 18 |
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786 | 786 | | have historically been marginalized or faced inequitable access to the benefits 19 |
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787 | 787 | | of renewable energy, including environmental justice focus populations as 20 |
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788 | 788 | | defined by 3 V.S.A. § 6002; 21 BILL AS INTRODUCED S.110 |
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789 | 789 | | 2025 Page 33 of 36 |
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790 | 790 | | |
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791 | 791 | | |
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792 | 792 | | VT LEG #378873 v.5 |
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793 | 793 | | (2) supporting community participation in the development and 1 |
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794 | 794 | | governance of distributed renewable generation; 2 |
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795 | 795 | | (3) supporting the delivery of benefits to tenants of buildings that are 3 |
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796 | 796 | | designated as affordable housing; 4 |
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797 | 797 | | (4) supporting the delivery of benefits to school and municipal owned 5 |
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798 | 798 | | buildings; and 6 |
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799 | 799 | | (5) advancing other priority issues as identified during program 7 |
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800 | 800 | | development as detailed under subsection (f) of this section. 8 |
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801 | 801 | | (d) Capacity requirement. Retail electricity providers shall issue 9 |
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802 | 802 | | solicitations for distributed renewable generation equivalent to a percentage of 10 |
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803 | 803 | | their requirement under subdivision 8005(a)(2) of this title, as determined by 11 |
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804 | 804 | | the Commission. 12 |
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805 | 805 | | (e) Solicitation requirement. On a schedule to be developed by the 13 |
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806 | 806 | | Commission, each retail electricity provider with an obligation under 14 |
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807 | 807 | | subdivision 8005(a)(2) of this title shall issue solicitations for eligible 15 |
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808 | 808 | | distributed generation until it has met its capacity requirement. Coordinated 16 |
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809 | 809 | | solicitations shall be encouraged. Each retail electric provider shall review 17 |
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810 | 810 | | proposed projects in its service territory according to a set of consistent core 18 |
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811 | 811 | | criteria as approved by the Commission and consistent with the objectives set 19 |
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812 | 812 | | forth in this section. The requirements for the retail electricity providers that 20 |
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813 | 813 | | are already 100 percent renewable may be limited by the Commission to an 21 BILL AS INTRODUCED S.110 |
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814 | 814 | | 2025 Page 34 of 36 |
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815 | 815 | | |
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816 | 816 | | |
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817 | 817 | | VT LEG #378873 v.5 |
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818 | 818 | | amount equal to the provider’s requirement to meet distributed generation with 1 |
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819 | 819 | | load growth above the baseline year of 2024 and allowed on a less frequent 2 |
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820 | 820 | | solicitation schedule. 3 |
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821 | 821 | | (f) Program development. On or before January 1, 2027, the Commission 4 |
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822 | 822 | | shall implement the Renewable Energy for Communities Program. In 5 |
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823 | 823 | | developing the Program, the Commission shall: 6 |
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824 | 824 | | (1) determine principles to guide the development of eligible distributed 7 |
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825 | 825 | | generation and consider whether additional objectives for the Program as 8 |
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826 | 826 | | defined under subsection (a) of this section are necessary; 9 |
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827 | 827 | | (2) determine whether a percentage of each retail electricity provider’s 10 |
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828 | 828 | | capacity requirement should be reserved to serve specific customers who have 11 |
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829 | 829 | | previously experienced inequitable access to the benefits of renewable energy 12 |
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830 | 830 | | and determine any minimum requirement for those projects procured under 13 |
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831 | 831 | | this program for serving those specific customers; 14 |
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832 | 832 | | (3) establish a set of consistent review criteria to be used by all retail 15 |
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833 | 833 | | electricity providers in solicitations for eligible distributed generation 16 |
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834 | 834 | | considering issues in addition to cost, such as community support or 17 |
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835 | 835 | | engagement while developing the proposal; potential for local workforce 18 |
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836 | 836 | | development and other community benefits to be delivered to the host 19 |
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837 | 837 | | community; location of the project, including whether it is in a constrained 20 |
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838 | 838 | | area of the distribution or transmission system or in an area identified as a 21 BILL AS INTRODUCED S.110 |
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839 | 839 | | 2025 Page 35 of 36 |
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840 | 840 | | |
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841 | 841 | | |
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842 | 842 | | VT LEG #378873 v.5 |
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843 | 843 | | preferred location in a regional or municipal enhanced energy plan pursuant to 1 |
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844 | 844 | | 24 V.S.A. § 4352; and anticipated generation profile; 2 |
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845 | 845 | | (4) identify reporting requirements and necessary metrics to monitor 3 |
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846 | 846 | | how benefits and burdens from the Program are distributed across ratepayers; 4 |
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847 | 847 | | (5) consult with individuals representing a diverse array of perspectives, 5 |
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848 | 848 | | including at minimum representation from industry, retail electric providers, 6 |
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849 | 849 | | environmental advocates, State agencies, regional and local governments, 7 |
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850 | 850 | | communities identified as environmental justice focus populations under 3 8 |
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851 | 851 | | V.S.A. § 6002, municipalities experiencing high energy burden as identified by 9 |
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852 | 852 | | Efficiency Vermont’s 2023 Energy Burden Report, renters, and multifamily 10 |
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853 | 853 | | affordable housing representatives; 11 |
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854 | 854 | | (6) determine a process for exempting or deferring retail electricity 12 |
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855 | 855 | | provider requirements under this section in the event no proposals below the 13 |
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856 | 856 | | applicable alternative compliance payment are received in response to a retail 14 |
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857 | 857 | | electricity provider’s solicitation; 15 |
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858 | 858 | | (7) determine a process for evaluating and reporting on the success of 16 |
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859 | 859 | | the Program in achieving the stated goals; and 17 |
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860 | 860 | | (8) consider other issues as identified throughout the process. 18 |
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861 | 861 | | (g) The Commission may use its authority under sections 20 and 21 of this 19 |
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862 | 862 | | title as may be necessary to support engagement and technical analysis 20 |
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863 | 863 | | necessary to develop the Renewable Energy for Communities Program. 21 BILL AS INTRODUCED S.110 |
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864 | 864 | | 2025 Page 36 of 36 |
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865 | 865 | | |
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866 | 866 | | |
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867 | 867 | | VT LEG #378873 v.5 |
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868 | 868 | | Funding may be used to support per diem compensation and reimbursement of 1 |
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869 | 869 | | expenses as permitted under 32 V.S.A. § 1010 to conduct engagement with 2 |
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870 | 870 | | parties who are not otherwise compensated by their employer. 3 |
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871 | 871 | | * * * Effective Date * * * 4 |
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872 | 872 | | Sec. 15. EFFECTIVE DATE 5 |
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873 | 873 | | This act shall take effect on passage. 6 |
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