Vermont 2025-2026 Regular Session

Vermont Senate Bill S0110 Compare Versions

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11 BILL AS INTRODUCED S.110
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66 S.110 1
77 Introduced by Senators Williams, Brennan, Collamore, Douglass, Hart, 2
88 Heffernan, Ingalls, Mattos, Norris and Weeks 3
99 Referred to Committee on 4
1010 Date: 5
1111 Subject: Public service; energy; climate change; air pollution; renewable 6
1212 energy; heating; fuel; thermal energy; greenhouse gas emissions; 7
1313 Renewable Energy Standard 8
1414 Statement of purpose of bill as introduced: This bill proposes to repeal the 9
1515 Affordable Heat Act, repeal the citizen suit provision of the Global Warming 10
1616 Solutions Act, and change the State’s greenhouse gas reduction requirements 11
1717 to goals. It would also change the Renewable Energy Standard to the Clean 12
1818 Energy Standard. 13
1919 An act relating to changes to Vermont’s air pollution and renewable energy 14
2020 laws 15
2121 It is hereby enacted by the General Assembly of the State of Vermont: 16
2222 * * * Global Warming Solutions Act * * * 17
2323 Sec. 1. REPEAL 18
2424 10 V.S.A. § 594 is repealed. 19 BILL AS INTRODUCED S.110
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2929 Sec. 2. 10 V.S.A. § 578 is amended to read: 1
3030 § 578. GREENHOUSE GAS REDUCTION REQUIREMENTS 2
3131 (a) Greenhouse gas reduction requirements. Vermont shall reduce achieve 3
3232 net zero emissions of greenhouse gases from within the geographical 4
3333 boundaries of the State and those emissions outside the boundaries of the State 5
3434 that are caused by the use of energy in Vermont, as measured and inventoried 6
3535 pursuant to section 582 of this title, by: on or before January 1, 2035. 7
3636 (1) not less than 26 percent from 2005 greenhouse gas emissions by 8
3737 January 1, 2025 pursuant to the State’s membership in the United States 9
3838 Climate Alliance and commitment to implement policies to achieve the 10
3939 objectives of the 2016 Paris Agreement; 11
4040 (2) not less than 40 percent from 1990 greenhouse gas emissions by 12
4141 January 1, 2030 pursuant to the State’s 2016 Comprehensive Energy Plan; and 13
4242 (3) not less than 80 percent from 1990 greenhouse gas emissions by 14
4343 January 1, 2050 pursuant to the State’s 2016 Comprehensive Energy Plan 15
4444 Vermont shall continue to implement the policies to achieve the objectives of 16
4545 the 2016 Paris Agreement and remain at net zero greenhouse gas emissions 17
4646 across all sectors into the future. 18
4747 * * * 19
4848 Sec. 3. 10 V.S.A. § 590 is amended to read: 20
4949 § 590. DEFINITIONS 21 BILL AS INTRODUCED S.110
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5454 As used in this chapter: 1
5555 (1) “Adaptation” means reducing vulnerability and advancing resilience 2
5656 through planned and implemented enhancements to, or avoiding degradation 3
5757 of, natural and built systems and structures. 4
5858 (2) “Greenhouse gas” has the same meaning as in section 552 of this 5
5959 title. 6
6060 (3) “Mitigation” means reduction of anthropogenic greenhouse gas 7
6161 emissions, and preservation and enhancement of natural systems to sequester 8
6262 and store carbon, in order to stabilize and reduce greenhouse gases in the 9
6363 atmosphere. 10
6464 (4) “Net zero greenhouse gas emissions” means the total amount of 11
6565 greenhouse gases released into the atmosphere after accounting for the amount 12
6666 of greenhouse gases that are naturally absorbed or sequestered is at or less than 13
6767 zero across all sectors. 14
6868 (5) “Resilience” means the capacity of individuals, communities, and 15
6969 natural and built systems to withstand and recover from climatic events, trends, 16
7070 and disruptions. 17
7171 Sec. 4. 10 V.S.A. § 591 is amended to read: 18
7272 § 591. VERMONT CLIMATE COUNCIL 19
7373 (a) There is created the Vermont Climate Council (Council). The Council 20
7474 shall be advisory and composed of the following members: 21 BILL AS INTRODUCED S.110
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7979 (1) the Secretary of Administration Natural Resources or designee, who 1
8080 shall serve as the Chair of the Council; 2
8181 (2) the Secretary of Natural Resources or designee State Climatologist 3
8282 or designee; 4
8383 (3) the Secretary of Agriculture, Food and Markets or designee; 5
8484 (4) the Secretary of Commerce and Community Development or 6
8585 designee; 7
8686 (5) the Secretary of Human Services or designee; 8
8787 (6) the Secretary of Transportation or designee; 9
8888 (7) the Commissioner of Public Safety or designee; 10
8989 (8) the Commissioner of Public Service or designee; 11
9090 (9) one member to represent municipal governments, appointed by the 12
9191 Governor; 13
9292 (10) one member to represent the rural communities, appointed by the 14
9393 Governor; 15
9494 (11) the following members who shall be appointed by the Speaker of 16
9595 the House General Assembly: 17
9696 (A) one member with expertise and professional experience in the 18
9797 design and implementation of programs to reduce greenhouse gas emissions; 19
9898 (B) one member to represent rural communities; 20
9999 (C) one member to represent municipal governments; 21 BILL AS INTRODUCED S.110
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104104 (D) one member to represent distribution utilities; 1
105105 (E)(B) one member to represent a statewide environmental 2
106106 organization; 3
107107 (F)(C) one member to represent the fuel sector; 4
108108 (G) one member with expertise in climate change science; and 5
109109 (H)(D) one member to represent Vermont manufacturers. 6
110110 (10) the following members who shall be appointed by the Committee on 7
111111 Committees: 8
112112 (A) one member with expertise in the design and implementation of 9
113113 programs to increase resilience to and respond to natural disasters resulting 10
114114 from climate change; 11
115115 (B)(E) one member to represent the clean energy sector; 12
116116 (C)(F) one member to represent the small business community; 13
117117 (D)(G) one member to represent the Vermont Community Action 14
118118 Partnership; 15
119119 (E)(H) one member to represent the farm and forest sector; and 16
120120 (F)(I) one youth member; and 17
121121 (G) one member of a Vermont-based organization with expertise in 18
122122 energy and data analysis. 19
123123 (b) The Council shall make recommendations to the Secretary of Natural 20
124124 Resources and in formulating the recommendations the Council shall: 21 BILL AS INTRODUCED S.110
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129129 (1) Identify, analyze, and evaluate strategies and programs to reduce 1
130130 greenhouse gas emissions; achieve the State’s reduction requirements pursuant 2
131131 to section 578 of this title; and build resilience to prepare the State’s 3
132132 communities, infrastructure, and economy to adapt to the current and 4
133133 anticipated effects of climate change, including:. 5
134134 (A) creating an inventory of all existing programs that impact 6
135135 greenhouse gas emissions and their efficacy; 7
136136 (B) evaluating and analyzing the technical feasibility and cost-8
137137 effectiveness of existing strategies and programs and identifying, evaluating, 9
138138 and analyzing new strategies and programs that are based upon emerging 10
139139 scientific and technical information; 11
140140 (C) analyzing each source or category of sources of greenhouse gas 12
141141 emissions and identifying which strategies and programs will result in the 13
142142 largest greenhouse gas emissions reductions in the most cost-effective manner; 14
143143 (D) identifying, analyzing, and evaluating public and private 15
144144 financing strategies to support the transition to a reduced greenhouse gas 16
145145 emissions economy and a more resilient State; and 17
146146 (E) evaluating and analyzing existing strategies and programs that 18
147147 build resilience, and identifying, evaluating, and analyzing new strategies and 19
148148 programs to prepare the State’s communities, infrastructure, and economy to 20
149149 adapt to the current and anticipated effects of climate change. 21 BILL AS INTRODUCED S.110
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154154 (2) On or before December 1, 2021, adopt Adopt the Vermont Climate 1
155155 Action Plan (Plan) and update the Plan on or before July 1 every four years 2
156156 thereafter, the first of which was adopted on December 1, 2021. On or before 3
157157 December 15, 2026, the Secretary of Natural Resources, in collaboration with 4
158158 the Department of Public Service and other relevant agencies and departments 5
159159 of State government, shall deliver a companion implementation strategy and 6
160160 aggressive-yet-achievable timeline for achieving net zero emissions across all 7
161161 sectors by 2035. The companion implementation strategy shall include long-8
162162 term funding mechanisms that prioritizes use of existing resources. On or 9
163163 before July 1 every five years thereafter, the Secretary of Natural Resources 10
164164 shall consider the recommendations of the Council and shall update the Plan. 11
165165 The Council shall finalize its recommendations on or before January 1 of the 12
166166 year that the Plan is due. The Plan shall set forth recommend the specific 13
167167 affordable and practicable initiatives, programs, and strategies that the State 14
168168 shall pursue will consider implementing to reduce greenhouse gas meet net 15
169169 zero emissions reductions; achieve the State’s 2035 reduction requirements 16
170170 target pursuant to section 578 of this title; and build resilience to prepare the 17
171171 State’s communities, infrastructure, and economy to adapt to the current and 18
172172 anticipated effects of climate change. 19
173173 (3) Identify the means to accurately measure: 20 BILL AS INTRODUCED S.110
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178178 (A) the State’s greenhouse gas emissions and progress towards 1
179179 meeting the reduction requirements pursuant to section 578 of this title, 2
180180 including publishing emissions data in a timely manner; 3
181181 (B) the effectiveness of the specific initiatives, programs, and 4
182182 strategies set forth in the Plan and updates to the Plan in reducing greenhouse 5
183183 gas emissions; 6
184184 (C) the effect of climate change on the State’s climate, wildlife, and 7
185185 natural resources; and 8
186186 (D) the existing resilience of the State’s communities, infrastructure, 9
187187 and economy and progress towards improving resilience to adapt to the current 10
188188 and anticipated effects of climate change. 11
189189 (4) Provide guidance to the Secretary of Natural Resources concerning 12
190190 the form, content, and subject matter of rules to be adopted recommended for 13
191191 adoption pursuant to section 593 of this chapter. 14
192192 (c) The Council shall create the subcommittees listed in this subsection and 15
193193 may also create other subcommittees to advise the Council, and assist in 16
194194 preparing the Plan, and carry out other duties. The Council may appoint 17
195195 members of the Council to serve as members of subcommittees and may also 18
196196 appoint individuals who are not members of the Council to serve as members 19
197197 of subcommittees. 20
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203203 (3) Just Transitions Subcommittee. This subcommittee shall focus on 1
204204 ensuring that strategies to reduce net greenhouse gas emissions and to build 2
205205 resilience to adapt to the effects of climate change benefit and support all 3
206206 residents of the State fairly and equitably. This subcommittee shall ensure that 4
207207 strategies consider the disproportionate impact of climate change on rural, low-5
208208 income, and marginalized communities and that programs and incentives for 6
209209 building resilience are designed to be accessible to all Vermonters and do not 7
210210 unfairly burden any groups, communities, geographic locations, or economic 8
211211 sectors. This subcommittee may adopt a measurement tool to assess the 9
212212 equitability of programs and strategies considered by the Council. 10
213213 * * * 11
214214 (d) The Council shall recommend necessary legislation to the General 12
215215 Assembly concerning: 13
216216 (1) adopting market-based or alternative compliance mechanisms as part 14
217217 of the State’s greenhouse gas emissions reduction strategies; 15
218218 (2) changes to land use and development, including to chapter 151 of this 16
219219 title and 30 V.S.A. § 248, to reduce greenhouse gas emissions and promote 17
220220 resilience in response to climate change; 18
221221 (3) statutory authority necessary to implement the Plan; and 19
222222 (4) any other matter the Council deems appropriate. 20 BILL AS INTRODUCED S.110
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227227 (e) The Council shall have the administrative, and technical, and legal 1
228228 assistance of the Agency of Natural Resources and the Department of Public 2
229229 Service and may request the assistance of any Executive Branch Agency 3
230230 agency and Department department. 4
231231 (f)(e) A majority of the sitting members of the Council shall constitute a 5
232232 quorum, and action taken by the Council may be authorized by a majority of 6
233233 the members present and voting at any meeting at which a quorum is present. 7
234234 The Council may permit any or all members to participate in a meeting by, or 8
235235 conduct the meeting through the use of, any means of communication, 9
236236 including electronic, telecommunications, and video- or audio-conferencing 10
237237 technology, by which all members participating may simultaneously or 11
238238 sequentially communicate with each other during the meeting. A member 12
239239 participating in a meeting by this means is deemed to be present in person at 13
240240 the meeting. The Council shall meet at the call of the Chair or a majority of 14
241241 the members of the Council, and the Council may elect officers and adopt any 15
242242 other procedural rules as it shall determine necessary and appropriate to 16
243243 perform its work. 17
244244 (g)(f) Members of the Council and members of subcommittees who are not 18
245245 State employees shall be entitled to per diem compensation and reimbursement 19
246246 of expenses for each day spent in the performance of their duties, as permitted 20 BILL AS INTRODUCED S.110
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251251 under 32 V.S.A. § 1010. These payments shall be made from monies 1
252252 appropriated to the Agency of Natural Resources. 2
253253 (h)(g) The members of the Council appointed pursuant to subdivision (a) 3
254254 (9)(11) of this section shall be appointed to initial terms of two years, and 4
255255 members appointed pursuant to subdivision (a)(10) of this section shall be 5
256256 appointed to initial terms of three years. Thereafter, each appointed member 6
257257 shall serve a term of three years or until his or her a member’s earlier 7
258258 resignation or removal. A vacancy shall be filled by the appointing authority 8
259259 for the remainder of the unexpired term. An appointed member shall not serve 9
260260 more than three two full consecutive three-year terms. 10
261261 (i)(h) On or before January 15, 2021 and every January 15 thereafter, the 11
262262 Council shall submit a written report to the General Assembly concerning the 12
263263 Council’s activities and the State’s progress towards meeting the 2035 net 13
264264 greenhouse gas reduction requirements pursuant to section 578 of this title. On 14
265265 or before November 1, 2021 and every second November 1 thereafter, the 15
266266 Director of Vermont Emergency Management shall file a report with the 16
267267 Council concerning Vermont’s overall municipal resilience to increased 17
268268 hazards presented by climate change that shall include hazard mitigation plans, 18
269269 local emergency management plans, and survey results as deemed appropriate 19
270270 by the Director. Subsequent reports shall include updates to document 20 BILL AS INTRODUCED S.110
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275275 progress in local resilience. The report shall inform Council recommendations 1
276276 on policies to address gaps in local resilience. 2
277277 Sec. 5. 10 V.S.A. § 592 is amended to read: 3
278278 § 592. THE VERMONT CLIMATE ACTION PLAN 4
279279 (a) On or before December 1, 2021, the Vermont Climate Council 5
280280 (Council) shall adopt adopted the Vermont Climate Action Plan (Plan) and. 6
281281 The Secretary of Natural Resources shall update the Plan on or before July 1 7
282282 every four five years thereafter. 8
283283 (b) The Plan shall set forth recommend the specific affordable and 9
284284 practicable initiatives, programs, and strategies, including regulatory and 10
285285 legislative changes, necessary to achieve the State’s net zero greenhouse gas 11
286286 emissions reduction requirements across all sectors pursuant to section 578 of 12
287287 this title and build resilience to prepare the State’s communities, infrastructure, 13
288288 and economy to adapt to the current and anticipated effects of climate change. 14
289289 The Plan shall include those specific affordable and practicable initiatives, 15
290290 programs, and strategies that will: 16
291291 * * * 17
292292 (c) The analysis, development, and selection of the specific initiatives, 18
293293 programs, and strategies contained in the Plan and updates to the Plan shall be 19
294294 based upon: 20 BILL AS INTRODUCED S.110
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299299 (1) the Council’s analysis and evaluation of strategies and programs 1
300300 pursuant to subdivision 591(b)(1) of this chapter; 2
301301 (2) reports, plans, and information pertaining to greenhouse gas 3
302302 emissions reduction and climate resilience strategies from the Agency of 4
303303 Natural Resources, the Department of Public Service, other State agencies and 5
304304 departments, and, where appropriate, the State Comprehensive Energy Plan 6
305305 prepared pursuant to 30 V.S.A. § 202b and the 2018 Vermont Climate Action 7
306306 Commission Report to the Governor; and 8
307307 (3) other reports, plans, and information. 9
308308 (d) The specific initiatives, programs, and strategies contained in To the 10
309309 extent practicable and affordable, the Plan and updates to the Plan shall further 11
310310 the following objectives: 12
311311 (1) to prioritize the most cost-effective, technologically feasible, and 13
312312 equitable greenhouse gas emissions reduction pathways and adaptation and 14
313313 preparedness strategies informed by scientific and technical expertise; 15
314314 (2) to provide for net zero greenhouse gas emissions reductions that 16
315315 reflect the relative contribution of each source or category of source of 17
316316 emissions; 18
317317 * * * 19
318318 (e) The Plan updated Plans shall form the basis for the recommend rules 20
319319 adopted for consideration by the Secretary of Natural Resources pursuant to 21 BILL AS INTRODUCED S.110
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324324 section 593 of this chapter. If the Council fails to adopt the Plan or update the 1
325325 Plan as required by this chapter, the The Secretary shall proceed with adopting 2
326326 and implementing rules pursuant to subsection 593(j) of this chapter that, in the 3
327327 Secretary’s discretion, are cost effective, practicable, and designed to achieve 4
328328 the net zero greenhouse gas emissions reductions requirements pursuant to 5
329329 section 578 of this title. 6
330330 Sec. 6. 10 V.S.A. § 593 is amended to read: 7
331331 § 593. RULES 8
332332 (a) The Secretary of Natural Resources shall consider and adopt rules 9
333333 pursuant to 3 V.S.A. chapter 25, which are, in the Secretary’s discretion, cost 10
334334 effective, affordable, practicable, and designed to achieve the net zero 11
335335 greenhouse gas emissions reductions requirements pursuant to section 578 of 12
336336 this title and are consistent with the Vermont Climate Action Plan (Plan). In 13
337337 adopting rules pursuant to this section, the Secretary shall: 14
338338 (1) Ensure that Consider whether the rules are consistent with the 15
339339 specific initiatives, programs, and strategies set forth in the Plan and updates to 16
340340 the Plan; follow consider the Vermont Climate Council’s guidance provided 17
341341 pursuant to subdivision 591(b)(4) of this chapter; and further the objectives 18
342342 pursuant to subsection 592(d) of this chapter. 19
343343 (2) Develop a detailed record containing facts; data; and legal, scientific, 20
344344 and technical information sufficient to establish a reasonable basis to believe 21 BILL AS INTRODUCED S.110
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349349 that the rules shall achieve the State’s net zero greenhouse gas emissions 1
350350 reductions requirements pursuant to section 578 of this title. This detailed 2
351351 record shall be included with the rule and filed with the Secretary of State 3
352352 pursuant to 3 V.S.A. § 838. 4
353353 * * * 5
354354 (e) On or before July 1, 2026 2027, the Secretary shall consider and adopt 6
355355 and implement rules, which are, in the Secretary’s discretion, cost effective, 7
356356 affordable, practicable, and designed to achieve the 2035 net greenhouse gas 8
357357 emissions reductions requirements pursuant to section 578 of this title and are 9
358358 consistent with the specific initiatives, programs, and strategies set forth in the 10
359359 Plan and updates to the Plan and achieve the 2030 2035 net zero greenhouse 11
360360 gas emissions reduction across all sectors requirement pursuant to section 578 12
361361 of this title. The Secretary shall observe the requirements of subsection (c) of 13
362362 this section. 14
363363 (f) The Secretary shall, at his or her discretion, but not less frequently than 15
364364 once every two years between 2026 and 2030, review and, if necessary, update 16
365365 the rules required by subsection (e) of this section in order to ensure that the 17
366366 2030 greenhouse gas emissions reduction requirement pursuant to section 578 18
367367 of this title is achieved. In performing this review and update, the Secretary 19
368368 shall observe the requirements of subsection (c) of this section. 20 BILL AS INTRODUCED S.110
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373373 (g) On or before July 1, 2040, the Secretary shall consider and adopt and 1
374374 implement rules, which are, in the Secretary’s discretion, cost effective, 2
375375 affordable, practicable, and designed to maintain the net zero or less 3
376376 greenhouse gas emissions and are consistent with the specific initiatives, 4
377377 programs, and strategies set forth in the Plan and updates to the Plan and 5
378378 achieve the 2050 net zero greenhouse gas emissions reduction requirement 6
379379 pursuant to section 578 of this title across all sectors. 7
380380 (h) The Secretary shall, at his or her discretion, but not less frequently than 8
381381 once every two years between 2040 and 2050, review and, if necessary, update 9
382382 the rules required by subsection (g) of this section in order to ensure that the 10
383383 2050 greenhouse gas emissions reduction requirement pursuant to section 578 11
384384 of this title is achieved. In performing this review and update, the Secretary 12
385385 shall observe the requirements of subsection (c) of this section. 13
386386 (i)(g) The Secretary may establish alternative reduction mechanisms to be 14
387387 used by sources of greenhouse gas emissions, if necessary, to achieve net zero 15
388388 emissions after 2050 on or before 2035. 16
389389 (1) The use of alternative reduction mechanisms shall account for not 17
390390 more than 20 percent of statewide greenhouse gas emissions estimated as a 18
391391 percentage of 1990 emissions. The use of a mechanism must offset a quantity 19
392392 of greenhouse gas emissions equal to or greater than the amount of greenhouse 20
393393 gasses emitted. 21 BILL AS INTRODUCED S.110
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398398 (2) The Secretary shall verify that any greenhouse gas emissions offset 1
399399 projects authorized as alternative reduction mechanisms represent equivalent 2
400400 emissions reductions or carbon sequestration that are real, additional, 3
401401 verifiable, enforceable, and permanent. 4
402402 (j) If the Council fails to adopt the Plan or update the Plan as required by 5
403403 section 592 of this chapter, the Secretary shall adopt and implement rules 6
404404 pursuant to 3 V.S.A. chapter 25 to achieve the greenhouse gas emissions 7
405405 reductions requirements pursuant to section 578 of this title. 8
406406 (k)(h) Nothing in this section shall be construed to limit the existing 9
407407 authority of a State agency, department, or entity to regulate greenhouse gas 10
408408 emissions or establish strategies or adopt rules to mitigate climate risk and 11
409409 build resilience to climate change. 12
410410 (l) The General Assembly may repeal, revise, or modify any rule or 13
411411 amendment to any rule, and its action shall not be abridged, enlarged, or 14
412412 modified by subsequent rule. 15
413413 * * * Clean Energy Standard * * * 16
414414 Sec. 7. 30 V.S.A. § 202a is amended to read: 17
415415 § 202a. STATE ENERGY POLICY 18
416416 It is the general policy of the State of Vermont: 19
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422422 (3) To meet Vermont’s energy service needs in a manner that will 1
423423 achieve the greenhouse gas emissions reductions requirements goals pursuant 2
424424 to 10 V.S.A § 578 and is consistent with the Vermont Climate Action Plan 3
425425 adopted and updated pursuant to 10 V.S.A. § 592. 4
426426 Sec. 8. 30 V.S.A. § 202b is amended to read: 5
427427 § 202b. STATE COMPREHENSIVE ENERGY PLAN 6
428428 (a) The Department of Public Service, in conjunction with other State 7
429429 agencies designated by the Governor, shall prepare a State Comprehensive 8
430430 Energy Plan covering at least a 20-year period. The Plan shall seek to 9
431431 implement the State energy policy set forth in section 202a of this title, 10
432432 including meeting the State’s greenhouse gas emissions reductions 11
433433 requirements goals pursuant to 10 V.S.A. § 578, and shall be consistent with 12
434434 the relevant goals of 24 V.S.A. § 4302 and with the Vermont Climate Action 13
435435 Plan adopted and updated pursuant to 10 V.S.A. § 592. The State 14
436436 Comprehensive Energy Plan shall include: 15
437437 * * * 16
438438 (e) The Commissioner of Public Service (Commissioner) shall file an 17
439439 annual report on progress in meeting the goals of the Plan. The report shall 18
440440 address each of the following sectors of energy consumption in the State: 19
441441 electricity, nonelectric fuels for thermal purposes, and transportation. In 20
442442 preparing the report, the Commissioner shall consult with the Secretaries of 21 BILL AS INTRODUCED S.110
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447447 Administration, of Agriculture, Food and Markets, of Natural Resources, and 1
448448 of Transportation and the Commissioner of Buildings and General Services. 2
449449 * * * 3
450450 (3) For each sector, the report shall provide: 4
451451 (A) In millions of British thermal units (MMBTUs) for the most 5
452452 recent calendar year for which data are available, the total amount of energy 6
453453 consumed, the amount of clean and renewable energy consumed, and the 7
454454 percentage of clean and renewable energy consumed. For the electricity 8
455455 sector, the report shall also state the amounts in megawatt hours (MWH) of 9
456456 retail sales and load for Vermont as well as for each retail electricity provider 10
457457 and the Vermont and New England summer and winter peak electric demand, 11
458458 including the hour and day of peak demand. 12
459459 (B) Projections of the energy reductions and shift to clean and 13
460460 renewable energy expected to occur under existing policies, technologies, and 14
461461 markets. The most recent available data shall be used to inform these 15
462462 projections and shall be provided as a supplement to the data described in 16
463463 subdivision (A) of this subdivision (3). 17
464464 * * * 18
465465 (7) The report shall include the following information on progress 19
466466 toward meeting the Renewable Clean Energy Standard (RES CES): 20 BILL AS INTRODUCED S.110
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471471 (A) An assessment of the costs and benefits of the RES CES based 1
472472 on the most current available data, including rate and economic impacts, 2
473473 customer savings, technology deployment, greenhouse gas emission reductions 3
474474 achieved both relative to 10 V.S.A § 578 requirements and societally, fuel 4
475475 price stability, effect on transmission and distribution upgrade costs, and any 5
476476 recommended changes based on this assessment. 6
477477 (i) For the most recent calendar year for which data is available, 7
478478 each retail electricity provider’s retail sales and load, in MWh; required 8
479479 amounts of clean and renewable energy for each category of the RES CES as 9
480480 set forth in section 8005 of this title; and amounts of clean and renewable 10
481481 energy and tradeable clean and renewable energy credits eligible to satisfy the 11
482482 requirements of sections 8004 and 8005 of this title actually owned by the 12
483483 Vermont retail electricity providers, expressed as a percentage of retail sales 13
484484 and total load MWh purchases made by Vermont retail electricity providers to 14
485485 meet demand. 15
486486 * * * 16
487487 (iv) The report shall assess how costs and benefits of the RES 17
488488 CES are being distributed across State, to the extent possible given available 18
489489 data, by retail electricity service territory, municipality, and environmental 19
490490 justice focus populations, as defined by 3 V.S.A. § 6002. Such an assessment 20
491491 shall consider metrics to monitor affordability of electric rates. 21 BILL AS INTRODUCED S.110
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495495 VT LEG #378873 v.5
496496 (B) Projections, looking at least 10 years ahead, of the impacts of the 1
497497 RES CES. 2
498498 * * * 3
499499 (iii) The Department shall project, for the State, the impact of the 4
500500 RES CES in each of the following areas: electric utility rates, total energy 5
501501 consumption, electric energy consumption, fossil fuel consumption, and 6
502502 greenhouse gas emissions. The report shall compare the amount or level in 7
503503 each of these areas with and without the program. 8
504504 (C) An assessment of whether the requirements of the RES CES have 9
505505 been met to date, and any recommended changes needed to achieve those 10
506506 requirements. 11
507507 (D) A summary of the activities of distributed renewable generation 12
508508 programs that support the achievement of the RES CES, including: 13
509509 * * * 14
510510 Sec. 9. 30 V.S.A. § 8002 is amended to read: 15
511511 § 8002. DEFINITIONS 16
512512 As used in this chapter: 17
513513 * * * 18
514514 (7) “Environmental attributes” means the characteristics of a plant that 19
515515 enable the energy it produces to qualify as clean or renewable energy and 20
516516 include any and all benefits of the plant to the environment such as avoided 21 BILL AS INTRODUCED S.110
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519519
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521521 emissions or other impacts to air, water, or soil that may occur through the 1
522522 plant’s displacement of a nonclean or nonrenewable energy source. 2
523523 * * * 3
524524 (25) “Clean energy” means both renewable energy, as defined in this 4
525525 section, as well as electricity produced using a technology that does not emit 5
526526 greenhouse gases as a by-product of energy generation. 6
527527 * * * 7
528528 (29) “RES” “CES” means the Renewable Clean Energy Standard 8
529529 established under sections 8004 and 8005 of this title. 9
530530 * * * 10
531531 (33) “Tradeable zero emissions credits” or “ZECs” means all of the 11
532532 environmental attributes associated with a single unit of energy generated by a 12
533533 clean energy source where: 13
534534 (A) those attributes are transferred or recorded separately from that 14
535535 unit of energy; 15
536536 (B) the party claiming ownership of the tradeable zero emissions 16
537537 credits has acquired the exclusive legal ownership of all, and not less than all, 17
538538 the environmental attributes associated with that unit of energy; and 18
539539 (C) exclusive legal ownership can be verified through an auditable 19
540540 contract path or pursuant to the system established or authorized by the 20
541541 Commission or any program for tracking and verification of the ownership of 21 BILL AS INTRODUCED S.110
542542 2025 Page 23 of 36
543543
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545545 VT LEG #378873 v.5
546546 environmental attributes of energy legally recognized in any state and 1
547547 approved by the Commission. 2
548548 Sec. 10. 30 V.S.A. § 8004 is amended to read: 3
549549 § 8004. SALES OF ELECTRIC ENERGY; RENEWABLE CLEAN 4
550550 ENERGY STANDARD (RES CES) 5
551551 (a) Establishment Expansion; requirements. The RES Renewable Energy 6
552552 Standard is established expanded to become the CES. Under this program, a 7
553553 retail electricity provider shall not sell or otherwise provide or offer to sell or 8
554554 provide electricity in the State of Vermont without ownership of sufficient 9
555555 energy produced by clean and renewable energy plants or sufficient tradeable 10
556556 renewable energy and zero emissions credits from plants whose energy is 11
557557 capable of delivery in New England that reflect the required amounts of clean 12
558558 and renewable energy set forth in section 8005 of this title or without support 13
559559 of energy transformation projects in accordance with that section. A retail 14
560560 electricity provider may meet the required amounts of clean and renewable 15
561561 energy through eligible tradeable renewable energy and zero emissions credits 16
562562 that it owns and retires, eligible clean and renewable energy resources with 17
563563 environmental attributes still attached, or a combination of those credits and 18
564564 resources. 19 BILL AS INTRODUCED S.110
565565 2025 Page 24 of 36
566566
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568568 VT LEG #378873 v.5
569569 (b) Rules. The Commission shall adopt update the rules that are necessary 1
570570 to allow the Commission and the Department to implement and supervise 2
571571 further the implementation and maintenance of the RES CES. 3
572572 (c) RECS RECs and ZECs; banking. The Commission shall allow a 4
573573 provider that has met the required amount amounts of renewable energy or 5
574574 zero emissions credits in a given year, commencing with 2017, to retain 6
575575 tradeable renewable energy or zero emissions credits created or purchased in 7
576576 excess of that amount for application to the provider’s required amount of 8
577577 clean or renewable energy in one of the following three years. 9
578578 (d) Alternative compliance payment. In lieu of purchasing renewable 10
579579 energy or tradeable renewable energy or zero emissions credits or supporting 11
580580 energy transformation projects to satisfy the requirements of this section and 12
581581 section 8005 of this title, a retail electricity provider in this State may pay to 13
582582 the Vermont Clean Energy Development Fund established under section 8015 14
583583 of this title an alternative compliance payment at the applicable rate set forth in 15
584584 section 8005. The administrator of the Vermont Clean Energy Development 16
585585 Fund shall use the payment from a retail electricity provider electing to make 17
586586 an alternative compliance payment to satisfy its obligations under subdivisions 18
587587 8005(a)(1), 8005(a)(2), 8005(a)(4), and 8005(a)(5) of this title for the 19
588588 development of renewable energy plants that are intended to serve and benefit 20
589589 customers with low income of the retail electricity provider that has made the 21 BILL AS INTRODUCED S.110
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593593 VT LEG #378873 v.5
594594 payment. Such plants shall be located within the provider’s service territory, if 1
595595 feasible. In the event that such a payment is insufficient to enable the 2
596596 development of a renewable energy plant, the administrator may use the 3
597597 payment for other initiatives allowed under section 8015 of this title that will 4
598598 benefit customers with low income of the retail electricity provider that has 5
599599 made the payment. As used in this subsection (d), “customer with low 6
600600 income” means a person purchasing energy from a retail electricity provider 7
601601 and with an income that is less than or equal to 80 percent of area median 8
602602 income, adjusted for family size, as published annually by the U.S. Department 9
603603 of Housing and Urban Development. 10
604604 * * * 11
605605 (f) Joint efforts. Retail electricity providers may engage in joint efforts to 12
606606 meet one or more categories within the RES CES. 13
607607 Sec. 11. 30 V.S.A. § 8005 is amended to read: 14
608608 § 8005. RES CES CATEGORIES 15
609609 (a) Categories. This section specifies five categories of required resources 16
610610 to meet the requirements of the RES CES established in section 8004 of this 17
611611 title: total clean and renewable energy, distributed renewable generation, 18
612612 energy transformation, new renewable energy, and load growth renewable 19
613613 energy. In order to support progress toward Vermont’s climate goals and 20 BILL AS INTRODUCED S.110
614614 2025 Page 26 of 36
615615
616616
617617 VT LEG #378873 v.5
618618 requirements, a provider may, but shall not be required to, exceed the 1
619619 statutorily required amounts under this section. 2
620620 (1) Total clean and renewable energy. 3
621621 (A) Purpose; establishment. To encourage the economic and 4
622622 environmental benefits of renewable energy, this subdivision establishes, for 5
623623 the RES CES, minimum total amounts of clean and renewable energy within 6
624624 the supply portfolio of each retail electricity provider. To satisfy this 7
625625 requirement, a provider may use clean energy generated within New England 8
626626 or renewable energy with environmental attributes attached or any class of 9
627627 tradeable renewable energy credits generated by any renewable energy plant 10
628628 whose energy is capable of delivery in New England. 11
629629 (B) Required amounts. 12
630630 (i) The amounts of total clean and renewable energy required by 13
631631 this subsection (a) shall be 63 percent of each retail electricity provider’s 14
632632 annual load during the year beginning on January 1, 2025, increasing by at 15
633633 least an additional four 7.4 percent each third January 1 thereafter until 16
634634 reaching 100 percent: on and after January 1, 2030. 17
635635 (i) on and after January 1, 2035 for a retail electricity provider who 18
636636 serves a single customer that takes service at 115 kilovolts and each municipal 19
637637 retail electricity provider formed under local charter or chapter 79 of this title; 20
638638 and 21 BILL AS INTRODUCED S.110
639639 2025 Page 27 of 36
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642642 VT LEG #378873 v.5
643643 (ii) on and after January 1, 2030, for all other retail electricity 1
644644 providers The amount of total renewable energy required by this subsection (a) 2
645645 shall be 55 percent of each retail electricity provider’s annual electricity 3
646646 purchases during the year beginning on January 1, 2027, increasing by an 4
647647 additional four percent each January 1 hereafter, until reaching 75 percent on 5
648648 and after January 1, 2032. 6
649649 * * * 7
650650 (2) Distributed renewable generation. 8
651651 (A) Purpose; establishment. This subdivision establishes a 9
652652 distributed renewable generation category for the RES CES. This category 10
653653 encourages the use of distributed generation to support the reliability of the 11
654654 State’s electric system; reduce line losses; contribute to avoiding or deferring 12
655655 improvements to that system necessitated by transmission or distribution 13
656656 constraints; and diversify the size and type of resources connected to that 14
657657 system. This category requires the use of renewable energy for these purposes 15
658658 to reduce environmental and health impacts from air emissions that would 16
659659 result from using other forms of generation. 17
660660 * * * 18
661661 (E) Avoiding transmission and distribution constraints. 19
662662 (i) Procurements by retail electricity providers and programs that 20
663663 support meeting the requirements of this subdivision (2) shall avoid 21 BILL AS INTRODUCED S.110
664664 2025 Page 28 of 36
665665
666666
667667 VT LEG #378873 v.5
668668 development of new facilities in generation constrained areas of the 1
669669 distribution or transmission system that would not need to be expanded but for 2
670670 the addition of additional generation, unless costs associated with development 3
671671 in those generation constrained areas are not passed through to ratepayers 4
672672 through the cost to utilities to purchase the generation or in any other manner. 5
673673 To implement the intent of this section, the Commission may update or adopt 6
674674 rules, including rules that require a locational adjustor fee. 7
675675 (ii) A retail electricity provider may petition the Commission for relief 8
676676 of the requirements of subdivision (C) of this subdivision (a)(2) or the 9
677677 associated alternative compliance payment, which may be granted if the 10
678678 provider can demonstrate that it is unable to meet its requirements without 11
679679 extensive upgrades to the transmission or distribution infrastructure that would 12
680680 be borne by the provider’s ratepayers. If relief is granted, the retail electricity 13
681681 provider shall be required to instead acquire new renewable generation from 14
682682 facilities that qualify to meet the requirements of subdivision (4) of this 15
683683 subsection (a), in addition to the requirements as described in subdivision (4) 16
684684 of this subsection (a). 17
685685 (3) Energy transformation. 18
686686 (A) Purpose; establishment. This subdivision (3) establishes an 19
687687 energy transformation category for the RES CES. This category encourages 20
688688 Vermont retail electricity providers to support additional distributed renewable 21 BILL AS INTRODUCED S.110
689689 2025 Page 29 of 36
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692692 VT LEG #378873 v.5
693693 generation or to support other projects to reduce fossil fuel consumed by their 1
694694 customers and the emission of greenhouse gases attributable to that 2
695695 consumption. A retail electricity provider may satisfy the energy 3
696696 transformation requirement through distributed renewable generation in 4
697697 addition to the generation used to satisfy subdivision (2) of this subsection (a) 5
698698 or energy transformation projects or a combination of such generation and 6
699699 projects. 7
700700 * * * 8
701701 (4) New renewable energy. 9
702702 (A) Purpose; establishment. This subdivision (4) establishes a new 10
703703 regional renewable energy category for the RES CES. This category 11
704704 encourages the use of new renewable generation to support the reliability of 12
705705 the regional ISO-NE electric system. To satisfy this requirement, a provider 13
706706 shall use new renewable energy with environmental attributes attached or any 14
707707 class of tradeable renewable energy credits generated by any renewable energy 15
708708 plant coming into service after January 1, 2010 whose energy is capable of 16
709709 delivery in New England. 17
710710 * * * 18
711711 (6) Alternative compliance rates. 19
712712 (A) The alternative compliance payment rates for the categories 20
713713 established by subdivisions (1)–(3) of this subsection (a) shall be: 21 BILL AS INTRODUCED S.110
714714 2025 Page 30 of 36
715715
716716
717717 VT LEG #378873 v.5
718718 (i) total clean and renewable energy requirement — $0.01 per 1
719719 kWh; and 2
720720 (ii) distributed renewable generation and energy transformation 3
721721 requirements — $0.06 per kWh. 4
722722 (B) The Commission shall adjust these rates for inflation annually 5
723723 commencing January 1, 2018, using the CPI. 6
724724 (C) For the distributed renewable energy, new renewable energy and 7
725725 load growth requirements, it shall be $0.04 per kWh annually commencing on 8
726726 January 1, 2025, with calculations for inflation beginning on January 1, 2023. 9
727727 * * * 10
728728 Sec. 12. 30 V.S.A. § 8006 is amended to read: 11
729729 § 8006. TRADEABLE CREDITS; ENVIRONMENTAL ATTRIBUTES; 12
730730 RECOGNITION, MONITORING, AND DISCLOSURE 13
731731 (a) The Commission shall establish or adopt a amend and expand its system 14
732732 of tradeable renewable energy credits for renewable resources that may be 15
733733 earned by electric generation qualifying for the prior RES to include clean 16
734734 energy generation. The system shall recognize tradeable renewable energy 17
735735 credits monitored and traded on the New England Generation Information 18
736736 System (GIS); shall provide a process for the recognition, approval, and 19
737737 monitoring of environmental attributes attached to clean and renewable energy 20
738738 that are eligible to satisfy the requirements of sections 8004 and 8005 of this 21 BILL AS INTRODUCED S.110
739739 2025 Page 31 of 36
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742742 VT LEG #378873 v.5
743743 title but are not monitored and traded on the GIS; and shall otherwise be 1
744744 consistent with regional practices. 2
745745 (b) The Commission shall ensure that all electricity provider and provider-3
746746 affiliate disclosures and representations made with regard to a provider’s 4
747747 portfolio are accurate and reasonably supported by objective data. Further, the 5
748748 Commission shall ensure that providers disclose the types of generation used 6
749749 and shall clearly distinguish between energy or tradeable energy credits 7
750750 provided from clean, renewable, and nonrenewable energy sources and 8
751751 existing and new renewable energy. 9
752752 Sec. 13. 30 V.S.A. § 8008 is amended to read: 10
753753 § 8008. AGREEMENTS; ATTRIBUTE REVENUES; DISPOSITION BY 11
754754 COMMISSION 12
755755 (a) As used in this section, “the revenues” means revenues that are from the 13
756756 sale, through tradeable clean or renewable energy certificates or other means, 14
757757 of environmental attributes associated with the generation of clean and 15
758758 renewable energy from a system of generation resources with a total plant 16
759759 capacity greater than 200 MW and that are received by a Vermont retail 17
760760 electricity provider on or after May 1, 2012, pursuant to an agreement, 18
761761 contract, memorandum of understanding, or other transaction in which a 19
762762 person or entity agrees to transfer such revenues or rights associated with such 20
763763 attributes to the provider. 21 BILL AS INTRODUCED S.110
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767767 VT LEG #378873 v.5
768768 * * * 1
769769 Sec. 14. 30 V.S.A. § 8005b is added to read: 2
770770 § 8005b. RENEWABLE ENERGY FOR COMMUNITIES PROGRAM 3
771771 (a) Establishment. The Renewable Energy for Communities Program is 4
772772 established. To achieve the goals of subdivision 8005(a)(2) of this title, the 5
773773 Commission shall develop the Renewable Energy for Communities Program 6
774774 that meets the eligibility requirements of this section, which may be 7
775775 implemented by rule, order, or contract. Retail electricity providers shall issue 8
776776 periodic solicitations subject to the requirements of the Renewable Energy for 9
777777 Communities Program. 10
778778 (b) Eligible resources. Distributed renewable generation, as defined in 11
779779 subdivision 8002(a)(2) of this title, shall be eligible to participate in this 12
780780 program. 13
781781 (c) Objectives. It shall be the objective of the Renewable Energy for 14
782782 Communities Program to develop distributed generation at least-cost to 15
783783 ratepayers that is directed by, developed in consultation with, or directly 16
784784 benefits communities by one or more of the following: 17
785785 (1) delivering benefits from renewable energy systems to customers who 18
786786 have historically been marginalized or faced inequitable access to the benefits 19
787787 of renewable energy, including environmental justice focus populations as 20
788788 defined by 3 V.S.A. § 6002; 21 BILL AS INTRODUCED S.110
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792792 VT LEG #378873 v.5
793793 (2) supporting community participation in the development and 1
794794 governance of distributed renewable generation; 2
795795 (3) supporting the delivery of benefits to tenants of buildings that are 3
796796 designated as affordable housing; 4
797797 (4) supporting the delivery of benefits to school and municipal owned 5
798798 buildings; and 6
799799 (5) advancing other priority issues as identified during program 7
800800 development as detailed under subsection (f) of this section. 8
801801 (d) Capacity requirement. Retail electricity providers shall issue 9
802802 solicitations for distributed renewable generation equivalent to a percentage of 10
803803 their requirement under subdivision 8005(a)(2) of this title, as determined by 11
804804 the Commission. 12
805805 (e) Solicitation requirement. On a schedule to be developed by the 13
806806 Commission, each retail electricity provider with an obligation under 14
807807 subdivision 8005(a)(2) of this title shall issue solicitations for eligible 15
808808 distributed generation until it has met its capacity requirement. Coordinated 16
809809 solicitations shall be encouraged. Each retail electric provider shall review 17
810810 proposed projects in its service territory according to a set of consistent core 18
811811 criteria as approved by the Commission and consistent with the objectives set 19
812812 forth in this section. The requirements for the retail electricity providers that 20
813813 are already 100 percent renewable may be limited by the Commission to an 21 BILL AS INTRODUCED S.110
814814 2025 Page 34 of 36
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817817 VT LEG #378873 v.5
818818 amount equal to the provider’s requirement to meet distributed generation with 1
819819 load growth above the baseline year of 2024 and allowed on a less frequent 2
820820 solicitation schedule. 3
821821 (f) Program development. On or before January 1, 2027, the Commission 4
822822 shall implement the Renewable Energy for Communities Program. In 5
823823 developing the Program, the Commission shall: 6
824824 (1) determine principles to guide the development of eligible distributed 7
825825 generation and consider whether additional objectives for the Program as 8
826826 defined under subsection (a) of this section are necessary; 9
827827 (2) determine whether a percentage of each retail electricity provider’s 10
828828 capacity requirement should be reserved to serve specific customers who have 11
829829 previously experienced inequitable access to the benefits of renewable energy 12
830830 and determine any minimum requirement for those projects procured under 13
831831 this program for serving those specific customers; 14
832832 (3) establish a set of consistent review criteria to be used by all retail 15
833833 electricity providers in solicitations for eligible distributed generation 16
834834 considering issues in addition to cost, such as community support or 17
835835 engagement while developing the proposal; potential for local workforce 18
836836 development and other community benefits to be delivered to the host 19
837837 community; location of the project, including whether it is in a constrained 20
838838 area of the distribution or transmission system or in an area identified as a 21 BILL AS INTRODUCED S.110
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842842 VT LEG #378873 v.5
843843 preferred location in a regional or municipal enhanced energy plan pursuant to 1
844844 24 V.S.A. § 4352; and anticipated generation profile; 2
845845 (4) identify reporting requirements and necessary metrics to monitor 3
846846 how benefits and burdens from the Program are distributed across ratepayers; 4
847847 (5) consult with individuals representing a diverse array of perspectives, 5
848848 including at minimum representation from industry, retail electric providers, 6
849849 environmental advocates, State agencies, regional and local governments, 7
850850 communities identified as environmental justice focus populations under 3 8
851851 V.S.A. § 6002, municipalities experiencing high energy burden as identified by 9
852852 Efficiency Vermont’s 2023 Energy Burden Report, renters, and multifamily 10
853853 affordable housing representatives; 11
854854 (6) determine a process for exempting or deferring retail electricity 12
855855 provider requirements under this section in the event no proposals below the 13
856856 applicable alternative compliance payment are received in response to a retail 14
857857 electricity provider’s solicitation; 15
858858 (7) determine a process for evaluating and reporting on the success of 16
859859 the Program in achieving the stated goals; and 17
860860 (8) consider other issues as identified throughout the process. 18
861861 (g) The Commission may use its authority under sections 20 and 21 of this 19
862862 title as may be necessary to support engagement and technical analysis 20
863863 necessary to develop the Renewable Energy for Communities Program. 21 BILL AS INTRODUCED S.110
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867867 VT LEG #378873 v.5
868868 Funding may be used to support per diem compensation and reimbursement of 1
869869 expenses as permitted under 32 V.S.A. § 1010 to conduct engagement with 2
870870 parties who are not otherwise compensated by their employer. 3
871871 * * * Effective Date * * * 4
872872 Sec. 15. EFFECTIVE DATE 5
873873 This act shall take effect on passage. 6