Source: http://www.leg.state.vt.us/docs/legdoc.cfm?URL=/docs/2008/calendar/sc070711.htm
Timestamp: 2016-08-30 14:57:26
Document Index: 151208489

Matched Legal Cases: ['art, 382', '§ 2801', '§ 2893', '§ 579', '§ 579', '§ 254', '§ 202', '§ 6001', '§ 4710', '§ 8002', '§ 268', '§ 4413', '§ 202', '§ 202', '§ 2736', '§ 2730', '§ 218', '§ 219', '§ 219', '§ 6523', '§ 3845', '§ 219', '§ 246', '§ 8002', '§ 8003', '§ 6523', '§ 8004', '§ 6523', '§ 8005', '§ 6523', '§ 8661', '§ 8661', '§ 5402', '§ 8661', '§ 5402', '§ 5402', '§ 248', '§ 5822', '§ 5930', '§ 561', '§ 2201', '§ 8005', '§ 2192', '§ 218', '§ 203', '§ 203', '§ 209', '§ 202', '§ 209', '§ 209', '§ 218', '§ 209', '§ 203', '§ 2501', '§ 209', '§ 202', '§ 202', '§ 202', '§ 202', '§ 578', '§ 6025', '§ 209', '§ 203', '§ 406', '§ 4482', '§ 202', '§ 203']

190th DAY OF BIENNIAL SESSION
S. 164 Question: Shall the bill pass, notwithstanding the Governor’s ............................................................. refusal
to approve the bill? 1772
of Governor’s veto message.................................................... 1772
as passed by Senate and House................................................ 1773
S. 70 Empowering
municipalities to regulate pesticides.............................. 1785
S. 102 School
district excess spending....................................................... 1785
S. 118 Fiscal
review of high spending school districts.................................. 1785
JRS 24 Congressional
“fast track” review of trade agreements.................... 1785
the event that the House overrides the Governor’s veto
H. 520 Question: Shall
the bill pass, notwithstanding the Governor’s
............................................................. refusal
to approve the bill? 1786
of Governor’s veto message.................................................... 1786
as passed by Senate and House................................................ 1792
Pending question (to be voted by call of the roll): Shall the
bill pass, notwithstanding the refusal of the Governor to approve the bill? (Two-thirds of members present required to override the Governor’s veto.)
(Rules suspension necessary in order to take up the vetoed bill.)
of Communication from Governor
The text of the communication from His Excellency, the Governor, whereby
he vetoed and returned unsigned Senate Bill No. 164 to the Senate
Pursuant to Chapter II, Section 11 of the Vermont Constitution, I am
returning S. 164, An Act Relating to Campaign Finance, without my signature
because of objections described herein.
I had hoped this session to sign a meaningful
campaign finance reform measure and continue to support reforms that do not
advantage incumbents, set reasonable contribution limits, establish timely and
transparent reporting requirements and reflect Vermont’s values and commitment
to free speech. Unfortunately, a thorough analysis of this bill reveals
considerable flaws that threaten to undermine the integrity of Vermont’s election processes and the core values that for more than 200 years have governed
them. The proposed individual and party contribution limits extend a form of
political protection to incumbents, establish an unfair and nearly
insurmountable obstacle for challengers and would be a particular disadvantage
to those of modest means who are unable to fund their own campaign. Vermonters
want real reform that ensures truly level playing fields for incumbents and
challengers alike—a fundamental component of democracy.
At the statewide level, the political protection for down-ticket
incumbents is very problematic. The contribution limits for these statewide
offices are lower than those imposed for candidates for governor, even though
the candidates must cover the same geographical area and have to reach the same
number of voters. Additionally, increased restrictions on support for these
candidates will make it extraordinarily difficult for a Vermonter who wishes to
seek these public offices but who does not have significant personal wealth to
mount a credible statewide campaign. Vermonters run clean, honest and transparent
elections and this bill would undermine that tradition by encouraging the swift
proliferation of special interest political action committees (PACs). Unfortunately, this bill has the regrettable appearance of being written
by special interest groups with their own self-interest in mind. The proposed limits on the activity of parties
will empower special interest groups—whose independent actions and expenditures
are unlimited—and provide a platform for these well-financed, often
out-of-state, organizations to run more ads and make more independent
expenditures than ever before. An election system once predominantly financed
by Vermonters would be influenced more significantly by special interest PACs. I do not believe this is the direction Vermonters want to move in or what
anyone except the special interests would consider reform. While I make no determination as to the
constitutionality of S. 164, like the law rejected as unconstitutional last
year by the Supreme Court of the United States, we can be certain that it would
be challenged. The previous lawsuit took ten years to play out in court and
may cost taxpayers nearly $1.5 million in fees to the prevailing attorneys
alone. My decision today provides the Legislature with an opportunity to craft
a measure that reflects a consensus among all stakeholders and makes further
more costly litigation less likely. I again extend to the Legislature my commitment
to meaningful reforms that establish reasonable limits, establish fair campaign
finance standards and enhance transparency. I look forward to working with the
Legislature and all stakeholders next session to craft a bill that reflects the
values of Vermont.
Sincerely, /s/James
JHD/gkp”
of Bill As Passed by Senate and House
of the bill as passed by the Senate and House of Representatives is as follows:
S. 164. An act relating to campaign finance.
enacted by the General Assembly of the State of Vermont: Sec. 1. FINDINGS
The general assembly finds that: (1) Large campaign contributions reduce public confidence in the
electoral process and increase the risk and the appearance that candidates and
elected officials will not act in the best interests of all Vermont citizens. (2) Some candidates and elected officials, particularly when time is
limited, respond and give access to contributors who make large contributions
in preference to those who make small or no contributions. (3) In Vermont, contributions greater than the amounts specified in
this act are considered by the general assembly, candidates, and elected
officials to be large contributions.
(4) In Vermont, contributions in the amounts permitted in this act
adequately allow contributors to express their opinions, levels of support, and
affiliations with respect to candidates, political committees, and political
(5) In Vermont, candidates can raise sufficient monies to fund
effective campaigns from contributions no larger than the amounts specified in
(6) Limiting large contributions will encourage direct and small
group contact between candidates and the electorate and will encourage the
personal involvement of a larger number of citizens in campaigns, both of which
are crucial to public confidence and the robust debate of issues. (7) In Vermont, campaign expenditures by persons who are not
candidates have been increasing and public confidence is eroded when
unidentified expenditures are made, particularly during the final days of a
(8) Identification of persons who publish political advertisements
and electioneering communications assists in enforcement of the campaign
finance limitations established by this act.
(9) Aggregate contributions limitations are necessary to limit the
influence of a single source, political committee, or political party in an
(10) There is an extensive record supporting the need for the
regulation of campaign finance in Vermont that was compiled during the
consideration of No. 64 of the Acts of 1997, and that was considered by the
courts during the litigation of Landell v. Sorrell, 118 F.Supp. 459 (D.Vt.
2000), aff’d in part and vacated in part, 382 F.3d 91 (2d Cir. 2004), rev’d and
remanded sub nom. Randall v. Sorrell, 126 S. Ct. 2479 (2006).
(11) This act is necessary in order to implement more fully the provisions
of Article 8 of Chapter I of the Constitution of the State of Vermont, which
declares “That all elections ought to be free and without corruption, and that
all voters, having a sufficient, evident, common interest with, and attachment
to the community, have a right to elect officers, and be elected into office,
agreeably to the regulations made in this constitution.”
(1) “Candidate” means an individual who has taken affirmative
action to become a candidate for state, county, local, or legislative
office in a primary, special, general, or local election. An
affirmative action shall include one or more of the following:
(A) accepting contributions or making expenditures totalling
$500.00 or more; or
(B) filing the requisite petition for nomination under this title
or being nominated by primary or caucus; or
(C) announcing that he or she seeks an elected position as a
state, county, or local officer or a position as representative or
senator in the general assembly.
(2) “Clearly identified,” with respect to a candidate, means
(C) The identity of the candidate is apparent by unambiguous
(3) “Contribution” means a payment, distribution, advance,
deposit, loan, or gift of money or anything of value, paid or promised
to be paid to a person for the purpose of influencing an election, advocating a
position on a public question, or supporting or opposing one or more candidates
in any election, but shall not include services provided without
compensation by individuals volunteering their time on behalf of a candidate,
political committee or political party. For purposes of this chapter,
“contribution” shall not include a personal loan from a lending institution
(A) a personal loan of money to a candidate from a lending
institution made in the ordinary course of business;
(B) services provided without compensation by individuals
volunteering their time on behalf of a candidate, political committee, or
(C) unreimbursed travel expenses incurred within the state of
Vermont and paid for by an individual who volunteers personal services to a
candidate, if the cumulative amount of these expenses does not exceed $500.00
per election; (D) unreimbursed campaign‑related travel expenses incurred
within the state of Vermont and paid for by the candidate or the candidate’s
spouse or civil union partner;
(E) the payment by a political party of the costs of
preparation, display, or mailing or other distribution of a party candidate
(F) documents, in printed or electronic form, including party
platforms, single copies of issue papers, information pertaining to the
requirements of this title, lists of registered voters and voter identification
information, created, obtained, or maintained by a political party for the
general purpose of party building and provided to a candidate who is a member
of that party or to another political party;
(G) compensation paid by a political party to its employees
whose job responsibilities are not for the specific and exclusive benefit of a
single candidate in any election;
(H) campaign training sessions provided to three or more
(I) costs paid for by a political party in connection with a
campaign event at which three or more candidates are present;
(J) the use of offices, telephones, computers, and similar
equipment when that use does not result in additional cost to the provider;
(K) activity or communication designed to encourage individuals
to register to vote or to vote if that activity or communication does not
mention or depict a clearly identified candidate;
(L) compensation paid by a political party to its employees or
consultants for the purpose of providing assistance to another political party.
(3)(4) “Expenditure” means a payment, disbursement,
distribution, advance, deposit, loan, or gift of money or anything of
value, paid or promised to be paid, for the purpose of influencing an election,
advocating a position on a public question, or supporting or opposing one or
more candidates. For the purposes of this chapter, “expenditure” shall
(A) a personal loan of money to a
candidate from a lending institution made in the ordinary course of business;
(B) services provided without
political committee, or political party;
(C) unreimbursed travel expenses
incurred within the state of Vermont and paid for by an individual who
volunteers personal services to a candidate, if the cumulative amount of these
expenses does not exceed $500.00 per election;
(D) unreimbursed campaign‑related
travel expenses incurred within the state of Vermont and paid for by the
candidate or the candidate’s spouse or civil union partner.
(5) “Party candidate listing” means any communication by a
political party that:
(A) lists the names of at least three candidates for election to
(B) is distributed through public advertising such as broadcast stations, cable television,
newspapers and similar media, or through direct mail, telephone, electronic
mail, publicly accessible sites on the internet or personal delivery;
(C) treats all candidates in the communication in a
substantially similar manner; and
(i) the identification of each candidate, with which pictures
(iv) the party affiliation of the candidates and a brief
statement about the party or the candidates’ positions, philosophy, goals,
accomplishments, or biographies;
(vi) information about voting, such as voting hours and
(4)(6) “Political committee” or “political action
committee” means any formal or informal committee of two or more individuals,
or a corporation, labor organization, public interest group, or other entity,
not including a political party, which receives contributions of more than
$500.00 and makes expenditures of more than $500.00 in any one calendar year
for the purpose of supporting or opposing one or more candidates, influencing
an election, or advocating a position on a public question in any election or
affecting the outcome of an election.
(5)(7) “Political party” means a political party
organized under chapter 45 of this title or and any committee
established, financed, maintained, or controlled by the party, including
any subsidiary, branch, or local unit thereof and including national
or regional affiliates of the party and shall be considered a single,
unified political party. The national affiliate of the political party shall
be considered a separate political party.
(6)(8) “Single source” means an individual,
partnership, corporation, association, labor organization, or any other
organization or group of persons which is not a political committee or
(7)(9) “Election” means the procedure whereby the
voters of this state or any of its political subdivisions select a person to be
a candidate for public office or fill a public office, or to act on public
questions including voting on constitutional amendments. Each primary,
general, special, run‑off, or local election shall constitute a
separate election.
(8)(10) “Public question” means an issue that is
before the voters for a binding decision.
(9)(11) “Two‑year general election cycle” means
the 24‑month period that begins 38 days after a general election. Expenditures
related to a previous campaign and contributions to retire a debt of a previous
campaign shall be attributed to the earlier campaign cycle.
(10)(12) “Full name” means an individual’s full first
name, middle name or initial, if any, and full legal last name, making the
identity of the person who made the contribution apparent by unambiguous
(11)(13) “Telephone bank” means more than 500
telephone calls of an identical or substantially similar nature that are made
to the general public within any 30‑day period. Sec. 3. 17 V.S.A. § 2801a is amended to read:
2801a. EXCEPTIONS
The definitions of “contribution,” “expenditure,” and “electioneering
communication” shall not apply to:
(1) any news story, commentary, or editorial distributed
through the facilities of any broadcasting station, newspaper, magazine, or
other periodical publication which has not been paid for, or such facilities
are not owned or controlled, by any political party, committee, or
(2) any communication distributed through a public access
television station if the communication complies with the laws and rules
governing the station, and all candidates in the race have an equal opportunity
to promote their candidacies through the station.
(a) A candidate for state representative or local office shall not
accept contributions totaling more than $200.00 $250.00 from a
single source, or political committee or political party in
for any two‑year general election cycle. (b) A candidate for state senator or county office shall not
accept contributions totaling more than $300.00 $500.00 from a
for any two‑year general election cycle. (c) A candidate for the office of governor,
lieutenant governor, secretary of state, state treasurer, auditor of accounts,
or attorney general shall not accept contributions totaling more than $400.00
$750.00 from a single source, or political committee or
political party in for any two‑year general election cycle. A political committee, other than a political committee of a candidate, or a
political party shall not accept contributions totaling more than $2,000.00
from a single source, political committee or political party in any two‑year
general election cycle.
(d) A candidate for the office of governor shall not accept
contributions totaling more than $1,000.00 from a single source or political
committee in any election.
(b)(e) A single source, political committee or
political party shall not contribute more to a candidate, political
committee or political party than the candidate, political committee or political
party is permitted to accept under subsection (a) of this section than
$20,000.00 to all candidates in any two‑year general election
cycle. A single source shall not contribute more than $20,000.00 to all
political committees and political parties in any two‑year general
(c)(f) A candidate, political party or political
committee shall not accept, from a political party contributions
totaling more than the following amounts in any two‑year general
election cycle, more than 25 percent of total contributions from
contributors who are not residents of the state of Vermont or from political
committees or parties not organized in the state of Vermont:
(3) For the office of secretary of state, state treasurer,
auditor of accounts, or attorney general, $5,000.00;
(g) A single source, political committee, or political party
shall not contribute more to a candidate, political committee, or political
party than the candidate, political committee, or political party is permitted
to accept under subsections (a) through (d) and (f) of this section.
(d)(h) A candidate shall not accept a monetary
contribution in excess of $50.00 unless made by check, credit or debit card, or
other electronic transfer.
(e)(i) A candidate, political party, or political
committee shall not knowingly accept a contribution which is not directly from
the contributor, but was transferred to the contributor by another person for
the purpose of transferring the same to the candidate, or otherwise
circumventing the provisions of this chapter. It shall be a violation of
this chapter for a person to make a contribution with the explicit or implicit
understanding that the contribution will be transferred in violation of this
(f)(j) This section shall not be interpreted to limit
the amount a candidate or his or her immediate family may contribute to his or
her own campaign. For purposes of this subsection, “immediate family”
means individuals related to the candidate in the first, second or third
degree of consanguinity a candidate’s spouse or civil union partner,
sister, brother, stepparent, stepgrandparent, stepchild, stepgrandchild,
stepsister, stepbrother, mother‑in‑law, father‑in‑law,
brother‑in‑law, sister‑in‑law, son‑in‑law,
daughter‑in‑law, guardian, or former guardian.
(g)(k) The limitations on contributions established
by this section shall not apply to contributions made for the purpose of
advocating a position on a public question, including a constitutional
(h)(l) For purposes of this section, the term
“candidate” includes the candidate’s political committee.
(m) The contribution limitations contained in this section shall
be adjusted for inflation by increasing them based on the Consumer Price
Index. Increases shall be rounded up to the nearest $10.00. Increases shall be effective for the first two‑year general election
cycle beginning after the general election held in 2008. On or before
July 1, 2009, the secretary of state shall calculate and publish the amount of
each limitation that will apply to the election cycle in which July 1, 2009
falls. On July 1 of each subsequent odd‑numbered year, the
secretary shall publish the amount of each limitation for the election cycle in
which that publication falls.
(1) A candidate who accepts a contribution prior
to the date of the primary election may designate the contribution, or portion
of the contribution, as either a primary or general election contribution. Once designated, a general election contribution accepted prior to the primary
election shall be accounted for separately.
(2) A contribution accepted by a
candidate after the date of the primary election shall be a general election
contribution. A candidate may designate a contribution, or portion of the
contribution, accepted after the date of the primary election as a primary
election contribution only for the purpose of retiring debt incurred for the
(3) Contributions that were accepted
prior to the primary election may be used for the general election if all debt
incurred for the primary election has been retired.
(4) Expenditures related to a previous
two-year general election cycle and contributions to retire a debt of a
previous two-year general election cycle shall be attributed to the earlier
two-year general election cycle.
(5) Independent candidates and minor party candidates, who do not
have primary elections, may accept contributions prior to the primary election
date in the same manner and subject to the same limits as major party
(o) A candidate accepts a contribution when the contribution is
deposited in the candidate’s campaign account.
2805b. LIMITATIONS ON CONTRIBUTIONS; POLITICAL COMMITTEES; POLITICAL
(1) A political committee, other than a political committee of a
candidate, shall not accept contributions totaling more than $2,000.00 from a single
source, political committee, or political party.
(2) A political party shall not accept contributions totaling more
than $2,000.00 from a single source or political committee.
(3) A political party shall not accept contributions totaling more
than $30,000.00 from another political party.
(b) The contribution limitations contained in this section shall be
adjusted for inflation by increasing them based on the Consumer Price
(1) A single source, political committee, or political party shall
not contribute more than $2,000.00 to a political committee, other than a
political committee of a candidate. (2) A single source or political committee shall not contribute more
than $2,000.00 to a political party. (3) A political party shall not contribute more than $30,000.00 to
another political party. (d) The limitations on contributions established by this section
shall not apply to contributions made for the purpose of advocating a position
on a public question, including a constitutional amendment.
(a) A related coordinated campaign expenditure made
on a candidate’s behalf shall be considered a contribution to the candidate on
whose behalf it was made.
(b) A related coordinated campaign expenditure made
on a candidate’s behalf shall be considered an expenditure by the candidate on
whose behalf it was made. However, if the expenditure did not exceed
$50.00, the expenditure shall not be considered an expenditure by the candidate
on whose behalf it was made.
(c) For the purposes of this section, a “related coordinated
campaign expenditure made on the candidate’s behalf” means any expenditure intended
to promote the election of a specific candidate or group of candidates, or the
defeat of an opposing candidate or group of candidates, if intentionally
facilitated by, solicited by or approved by the candidate or the candidate’s
political committee made by a single source, political committee, or
political party in cooperation, consultation or concert with, or at the request
or suggestion of, a candidate, a candidate’s political committee or an agent,
unless otherwise exempt under subdivision 2801(3) or (4) or section 2801a of
(d) An expenditure made by a political party or by a political
committee that recruits or endorses candidates, that primarily benefits six or
fewer candidates who are associated with the political party or political
committee making the expenditure, is presumed to be a related expenditure made
on behalf of those candidates. An expenditure made by a political party
or by a political committee that recruits or endorses candidates, that
substantially benefits more than six candidates and facilitates party or
political committee functions, voter turnout, platform promotion or
organizational capacity shall not be presumed to be a related expenditure made
on a candidate’s behalf. In addition, an expenditure shall not be
considered a “related campaign expenditure made on the candidate’s behalf” if
(1) The expenditures were made in connection with a campaign
event whose purpose was to provide a group of voters with the opportunity to meet
the candidate personally.
(2) The expenditures were made only for refreshments and related
supplies that were consumed at that event.
(3) The amount of the expenditures for the event was less than
For the purposes of this section, a “coordinated campaign expenditure
made on the candidate’s behalf” does not mean:
(1) the cost of invitations and postage and of food and
beverages voluntarily provided by an individual to provide an opportunity for a
group of voters to meet a candidate, if the cumulative value of these
activities by the individual on behalf of any candidate does not exceed $500.00
per election;
(2) the sale of any food or beverage by a vendor at a charge
less than the normal comparable charge, for use at a campaign event providing
an opportunity for a group of voters to meet a candidate, if the charge to the
candidate is at least equal to the cost of the food or beverages to the vendor
and if the cumulative value of the food or beverages does not exceed $500.00
per election; or
(3) amounts expended by an association or a membership
organization in compiling and disseminating a nonpartisan voter guide that
includes reports of votes on legislation by, or answers to written questions
directed to, all or substantially all of the candidates seeking election to the
general assembly or to statewide office, about the candidates’ positions on
issues of concern to the association or organization, if both of the following
(A) the association or organization identifies itself as the sponsor
of the communication, and accepts no funding from a candidate, political
committee, or political party to defray the costs of the voter guide; (B) the voter guide does not contain a phrase such as “vote
for,” “re‑elect,” “support,” “cast your ballot for,” “(name of candidate)
for Senate,” “(name of candidate) in (year),” “vote against,” “defeat,” or
“reject,” or other material that refers to a clearly identified candidate for
office and that promotes or supports a candidate for that office, or attacks or
opposes a candidate for that office.
Sec. 7. 17
V.S.A. § 2893(b) is amended to read:
(b) In addition to any other reports required to be filed under
this chapter, a person who makes expenditures for any one mass media activity
totaling $500.00 or more within 30 days of a primary or general election shall,
for each activity, file a mass media report with the secretary of state and
send a copy copies, by a verifiable method of sending, of the
mass media report and the complete mass media activity in the same format as
distributed to the public to each candidate whose name or likeness is
included in the activity within 24 hours of the expenditure or activity,
whichever occurs first at the same time as the release of the
information contained in the mass media activity to the public. For
the purposes of this section, a person shall be treated as having made an
expenditure if the person has executed a contract to make the expenditure.
The report shall identify the person who made the expenditure with the
name of the candidate involved in the activity and any other information
relating to the expenditure that is required to be disclosed under the
provisions of subsections 2803(a) and (b) of this title. Sec. 8. EVALUATION OF 2008 PRIMARY AND GENERAL ELECTIONS
The house and senate committees on government operations shall
evaluate the 2008 primary and general elections to determine whether the major
provisions of this act are accomplishing their intended purposes.
act shall take effect on July 17, 2007.
An act relating to empowering municipalities to regulate the application
of pesticides within their borders.
An act relating to decreasing the percentage to determine a school
district’s excess spending.
An act relating to fiscal review of high spending districts and special
Joint resolution relating to the federal “fast track” process for
congressional review of international trade agreements.
the event that the House overrides the Governor’s veto and messages the bill to
the Senate, upon suspension of the Senate Rules the bill may be taken up.
question to be decided by call of the roll is: Shall the bill pass,
notwithstanding the refusal of the Governor to approve the bill? (Two-thirds
of the members present required to override the Governor’s veto.)
H. 520.
The text of the communication to the House from His Excellency, the
Governor, whereby he vetoed and returned unsigned House Bill No. 520,
returning H.520, An Act Relating to the Conservation of Energy and
Increasing the Generation of Electricity within the State by use of
Renewable Resources without my signature because of my objections described
There is no question that doing our share to reduce carbon emissions is
important. At the beginning of the session, I was hopeful that the
Legislature—having joined me in identifying this issue as a priority—would put
Vermonters first and work with me to pass bipartisan legislation that builds on
the progress we have already made. Unfortunately, that was not the case. H. 520 as it passed the House was a good bill—a positive step forward for
Vermont’s energy future—and a bill that I would have signed into law. Unfortunately, despite my frequently voiced concerns, both public and private,
an unnecessary and shortsighted tax was added to the bill. That tax is not in
the best interest of Vermonters or the long-term economic and environmental
security of our state. ***
Our small state is doing its part to combat climate change. Long before
this Legislature began working on this bill my Administration had established
climate change as a top priority. Joining the Regional Greenhouse Gas
Initiative (RGGI); establishing new state energy and environmental purchasing
policies; introducing hybrid technology and biodiesel into our vehicle fleet;
pursuing clean air enforcement and strict automobile emissions standards in
federal courts; expanding Vermont’s renewable energy portfolio through grant
programs and tax incentives; implementing green power pricing structures; and
the work of my Commission on Climate Change are just a few examples of the
steps we’ve taken. In total, the work of my Administration to address climate change and
promote environmentally responsible economic growth is more aggressive and far
reaching than any previous Administration. It’s about who we are—a clean,
green, pro-business, pro-growth state. But I know there’s more to do. ***
The vast majority of Vermont’s carbon emissions come from heating our
homes and businesses and driving our cars and I began this session by
introducing an agenda targeted at reducing these emissions[1]. Specifically, I offered an affordable and commonsense set of solutions to
advance the use of biofuels in homes and businesses with a fuel rebate program
and direct consumer incentives to purchase more fuel-efficient vehicles. Here
we would have had a triple play: a kick-start to the bio-fuel industry, a
reduction of carbon emissions and a reduction in our reliance on foreign oil. Unfortunately, and inexplicably, these proposals languished in the
Legislature. Instead legislative leaders focused on creating a new, undefined
government bureaucracy and levying an arbitrary tax to fund it. The Affordability Agenda and my Administration’s focus on
fostering a favorable economic environment– one that embraces innovation, new
investment and job creation in environmentally preferable industries – is
central to securing our economic future. A major component of this bill—the
tax proposal—is entirely inconsistent with these objectives. A tax on the Vermont Yankee Nuclear Power Station in Vernon sends a
chilling message to our current and prospective employers at the same time we
are seeking to support and strengthen job creation. In addition, policymakers
have an obligation to honor the commitments of previous Legislatures and treat
all businesses fairly and honestly.
It is simply puzzling that the Legislature is proposing to tax a
non-carbon emitting resource to pay for carbon producing efficiencies. The Legislature has proposed that we risk increasing electric rates,
undermining our power supply and damaging our business climate in the name of
reducing carbon emissions. I reject the notion that environmental protection
comes at the expense of economic development. Our clean air and water and our commitment to environmental protection
are integral to our economy—reasons many people want to live, work and raise
their families in Vermont and why many people visit us each year. As I’ve said
before, the choice we face today is not between jobs or the environment. It’s
a choice between both or neither. There has to be a better alternative to this
tax—and I’m committed to finding it.
I cannot ignore the likely negative reaction by financial credit rating
agencies that this arbitrary tax would trigger. All rating agencies use
regulatory uncertainty as one of the metrics in evaluations. The new and unanticipated predatory tax on a single company sends a
chilling message not only to Vermont businesses but any company that might be
interested in locating or even doing business here. Business people are
smart, they expect that government policies will change in a macro sense over
time but they cannot tolerate the unpredictability of a legislative body
selecting an individual business, or even an entire industry cluster, and
assessing a punitive tax against them. Business leaders cannot take a
risk with a government partner they cannot trust; Wall Street cannot either.
I am also rejecting this bill because it creates an entirely new
bureaucracy without sufficient deliberation or planning. Before rushing into
the creation of a massive new bureaucratic entity—that might itself be
inefficient and wasteful—analysis is necessary to determine its structure,
costs and benefits. Asking Vermont taxpayers to expend what could be an additional $15
million a year on an unknown and hastily planned bureaucracy is not sensible
public policy. That is why my Administration offered during legislative
deliberations to produce detailed recommendations on how best to achieve
improved fuel efficiency. These recommendations would be based on a thoughtful
methodology and involve stakeholders over the summer and fall. The
unwillingness of the Legislature to engage in this process is startling. Nevertheless, my Administration will carry out this review. This is a far more
responsible approach. ***
I recognize this legislation contains opportunities to move toward
greater conservation and reduction of greenhouse gases. As I noted earlier, I
support the House passed version of the bill. That is why I have decided to
implement the following items contained in H.520 administratively:
25 x ‘25
– The Vermont Steering Committee for this national initiative will report
Vermont’s farm and forest capacity and work with the Administration to
formulate recommendations for action to achieve our goal of having 25
percent of our energy produced from farms and forestland by 2025.
Metering – In April, the Department of Public Service (DPS) requested
the Public Service Board (PSB) to investigate opportunities for Vermont electric utilities to cost-effectively install advanced smart metering equipment. Workshops have been scheduled over the summer and deliberations before the
board are scheduled this fall. Conservation
Rates – The Administration will review alternative rate designs within
the context of the smart metering workshops underway by the PSB. Self
Generation and Net Metering – The Administration will request that the
PSB consider the concepts of group net metering and size expansion in
their current rulemaking on net metering. Temporary
Siting of Met Towers – The Agency of Natural Resources (ANR) will
review and report on its current practices in siting meteorological towers
under the Section 248 process.
– DPS will work with the utilities and other stakeholders to collaborate with
neighboring jurisdictions to help ensure that the Sustainably Priced
Energy Enterprise Development (SPEED) goals—a Vermont program run through
the Public Service Board designed to encourage contracts for electricity
between Vermont utilities and renewable project developers—are recognized
as consistent and complementary to the Renewable Portfolio Standard (RPS)
goals of neighboring states.
Assistance – DPS will report on how best to assist those interested in
developing renewable energy projects in dealing with the regulatory
process. Wind
Assessment – The Agency of Administration and DPS will formulate a
recommendation to meet the goal of creating a fair and predictable tax in
lieu of the non-residential property tax for wind facilities while
ensuring that there will be no negative impact on the Education Fund. Business
Energy Credit – The Agency of Administration and DPS will report on
the best way to allow Vermont businesses to take advantage of the business
energy credit component of the federal investment tax credit. Permitting
Small Hydro – DPS and ANR will provide a recommendation for a simple, predictable, and environmentally sound
process for issuing a certificate of public good for mini‑hydroelectric
Quality Certification – DPS and ANR will provide a recommendation for a simple, predictable, and environmentally sound
process for completing a water quality certification review for
mini-hydroelectric projects.
Hydro Pilot – DPS and ANR will work with communities seeking to
develop small hydro projects to facilitate those projects through the
existing permit processes.
on SPEED – DPS will provide a status report on SPEED resources and the
likelihood of bringing them into service in time to meet the standards.
System Specialist – The Department of Public Safety will work with the
Plumbers Examining Board to create a separate special category for people
working in the solar heat collection trade. Weatherization
Report – The Agency of Human Services will work with stakeholders to
create a five-year strategic plan with the purpose of improving the
comfort, safety, and affordability of low-income housing and to reduce
fuel use and greenhouse gas generation in that housing. Electric
Plan – DPS will take into consideration the environmental impacts,
including those involved in the generation of greenhouse gases, in Vermont’s existing Electrical Energy Plan.
Energy Policy – Vermont’s Energy Plan will
consider environmental impacts and continuing reductions in the generation
of greenhouse gases in the production or use of energy.
Comprehensive Energy Plan – The plan will
continue to include a comprehensive analysis and projections regarding the
use, cost, supply, and environmental effects of all forms of energy
resources used within Vermont and regarding all pollution, including
greenhouse gases generated within the state and the state’s progress in
meeting greenhouse gas reduction goals. It will also include strategies
to increase the efficiency in new buildings, to facilitate weatherization
in multiple dwellings, and to encourage the disclosure of a building’s
energy efficiency and weatherization needs prior to a sale.
Use – The Agency of Transportation (AOT),
the Agency of Administration and DPS will provide recommendations on how
to increase the use of biodiesel blends in state buildings and garages and
in the state transportation fleet.
Efficiency Mortgages – DPS will work with
the Vermont Housing Finance Agency (VHFA) and the Vermont Economic
Development Authority (VEDA) to report on the feasibility of establishing
programs to support energy efficiency mortgages for residential and
Efficient Transportation – AOT will study ways to provide incentives
for more efficient transportation. Right to Conserve
– The Agency of Commerce and Community Development (ACCD) will report on
the extent to which private covenants within the state restrict the use of
solar collectors, clotheslines, or other energy saving devices.
Workforce Development – The Department of Labor (DOL) will develop a green building, energy efficiency, and
renewable energy workforce development plan in conjunction with current
planning. ***
Additionally, I am committed to working with the Legislature next January
to enact legislation that contains the following: An
amendment to the definition of “farming” to include the on-site production
and sale of fuel or power from agricultural products or waste.
expansion of the use of Agriculture Development funds to include wind and
solar[2]. The
creation of fair liability standards for Commercial Building Energy
Standards for builders, architects and designers. An addition
of net metered systems to a list of alternative energy sources allowing
residents to seek municipal tax exemptions for alternate energy sources.
amendment to the definition of “new renewables” to include capacity
expansion. Language
directing a retail electricity provider to pay the Vermont Clean Energy
Development Fund an amount per kilowatt-hour as established by the PSB in
lieu of purchasing renewable energy credits (REC’s) to satisfy a RPS that
would be applicable if SPEED goals are not met. Direction
for all Vermont utilities to implement a renewable energy pricing program
or offer customers the option of making a voluntary contribution to the
Vermont Clean Energy Development Fund. ***
It is truly regrettable that H.520 was poisoned by an ill-defined
bureaucracy and an unnecessary tax that would undermine our economic security. There remain, however, opportunities for the Legislature to join me in
advancing the conservation and renewable energy initiatives outlined above, as
well as others. There is also an opportunity to pursue improved fuel efficiency without
creating a poorly contemplated, cumbersome bureaucracy funded by an arbitrary
tax. There has to be a better way to achieve this shared goal and I am
committed to finding it. While we are already a national leader in energy conservation and
efficiency and our emissions are a tiny fraction of those emitted by other
states, we will continue to do more to combat climate change. That’s the Vermont Way. Sincerely,
JHD/jg”
H. 520. An act relating to the Vermont energy efficiency and
affordability act.
enacted by the General Assembly of the State of Vermont: Sec. 1. DESIGNATION OF ACT
This act shall be referred to as “the Vermont energy efficiency and
affordability act.”
(1) Global climate change, which is threatening our environment and
perhaps ultimately our existence, has been caused in part by an energy policy
that is largely dependent on the burning of fossil fuels.
(2) In order to slow or stop climate change, it is essential that we
reduce or eliminate our dependency on fossil fuels by significantly improving
energy efficiency and shifting to nonpolluting benign forms of energy such as
wind, sun, and water power. (3) In order for Vermont to meet the greenhouse gas reduction goals
set by the conference of the New England governors and Eastern Canadian
premiers’ climate change action plan, Vermont needs to provide effective
weatherization services, new funding strategies, green building practices, and
(4) The “Vermont energy efficiency potential study for non‑regulated
fuels” recently completed by the department of public service indicates that
Vermont has cost‑effective potential energy savings of $486 million over
the next ten years with 63 percent of those savings from building shell
improvements. (5) Although workforce development in the field of green building,
renewable energy, and energy efficiency is an essential component of the battle
to combat global climate change, there are few trained applicants to fill the
new well‑paying jobs being created in this field.
(6) The “Next Generation” report stated that Vermont must implement
strategies to expand its skilled workforce and approach the future by
integrating economic development, workforce development, and education
* * Renewable Energy Goal * * *
Sec. 3. 10
V.S.A. § 579 is added to read:
§ 579. 25 BY
25 STATE GOAL
(a) It is a goal of the state, by the year 2025, to produce 25
percent of the energy consumed within the state through the use of renewable
energy sources, particularly from Vermont’s farms and forests.
(b) By no later than January 15, 2008, the commissioner of public
service, in consultation with the secretary of agriculture, food and markets
and the commissioner of forests, parks and recreation, shall present to the
committees on agriculture and natural resources and energy of the general
assembly a plan for attaining this goal. Plan updates shall be presented no
less frequently than every three years, thereafter, and a progress report shall
be due annually on January 15.
(c) By no later than January 15, 2008, the department of public
service shall present to the legislative committees on natural resources and
energy an updated comprehensive energy plan which shall give due consideration
to the public engagement process required under 30 V.S.A. § 254 and under Sec.
2 of No. 208 of the Acts of the 2005 Adj. Sess. (2006). By that time, the
department of public service shall incorporate plans adopted under this section
into the state comprehensive energy plan adopted under 30 V.S.A. § 202b.
* * Act 250 Definition of Farming * * *
Sec. 4. 10
V.S.A. § 6001(22) is amended to read:
(A) the cultivation or other use of land for growing food, fiber,
Christmas trees, maple sap, or horticultural and orchard crops; or
(B) the raising, feeding, or management of livestock, poultry, fish, or
bees; or
(E) the on‑site storage, preparation and sale of agricultural
products principally produced on the farm; or
(F) the on‑site storage, preparation, production, and
sale of fuel or power from agricultural products or wastes principally
produced on the farm; or
(G) the raising, feeding, or management of four or more equines owned or
boarded by the farmer, including training, showing, and providing instruction
and lessons in riding, training, and the management of equines.
* * Agriculture Development Funds * * *
Sec. 5. 6
V.S.A. § 4710(g)(3) is amended to read:
(3) Assistance from the agricultural economic development special
account shall be available for:
(A) Business and technical assistance for research and planning to aid a
farmer or a group of farmers in developing business enterprises that harvest
biomass, convert biomass to energy, or produce biofuel;
(B) Implementation Cost‑effective implementation
assistance to leverage other sources of capital to assist a farmer or group of
farmers in purchasing equipment, technology, or other assistance to produce
agricultural energy, harvest biomass, or convert biomass into energy,
or enable installation and usage of wind, solar, or other technology that
relies on a resource that is being consumed at a harvest rate at or below its
natural regeneration rate pursuant to 30 V.S.A. § 8002(2); and
* * Commercial Building Energy Standards * * *
Sec. 6. 21
V.S.A. § 268 is amended to read:
(a) Definitions. For purposes of this subchapter, “commercial
buildings” means all buildings that are not residential buildings as defined
in subdivision 266(a)(2) of this title or farm structures as defined in 24
V.S.A. § 4413.
(1) The following commercial buildings, or portions of those
buildings, separated from the remainder of the building by thermal envelope
assemblies complying with this section shall be exempt from the building
thermal envelope provisions of the standards:
(B) Those with a peak design rate of energy usage less than an amount
specified in the commercial building energy standards (CBES) adopted under
(2) These standards shall not apply to equipment or portions of building
energy systems that use energy primarily to provide for industrial, or
manufacturing, or commercial processes.
(b) Adoption of commercial building energy standards. Commercial
building construction with respect to which no state or any local
building permit application or application for construction plan
approval by the commissioner of public safety pursuant to 20 V.S.A. chapter 173
has been submitted on or after January 1, 2007 shall be designed and
constructed in substantial compliance with the standards contained
in the 2005 Vermont Guidelines for Energy Efficient Commercial Construction, as
those standards may be amended by administrative rule adopted by the
commissioner of public service.
(c) Revision and interpretation of energy standards. On or about
January 1, 2009, and at least every three years thereafter, the commissioner of
public service shall amend and update the CBES by means of administrative rules
adopted in accordance with 3 V.S.A. chapter 25. At least a year prior to final
adoption of each required revision of the CBES, the department of public
service shall convene an advisory committee to include one or more mortgage
lenders,; builders,; building designers,;
architects; civil, mechanical, and electrical engineers; utility
representatives,; and other persons with experience and
expertise, such as consumer advocates and energy conservation experts. The
advisory committee may provide the commissioner of public service with
additional recommendations for revision of the CBES.
(A) Consistent with duly adopted state energy policy, as specified in 30
V.S.A. § 202a.
(2) Each time the CBES are amended by the commissioner of public
service, the amended CBES shall become effective upon a date specified in the
adopted rule, a date that shall not be less than three months after the date of
adoption. Persons submitting an application for any state or local
permit authorizing commercial construction, or an application for
construction plan approval by the commissioner of public safety pursuant to 20
V.S.A. chapter 173, before the effective date of the amended CBES shall
have the option of complying with the applicable provisions of the earlier or
the amended CBES. After the effective date of the original or the amended
CBES, any person submitting such an application for any state or
local permit authorizing commercial construction in an area subject to the
CBES shall comply with the most recent version of the CBES.
(3) The advisory committee convened under this subsection, in preparing
for the CBES updates, shall advise the department of public service with
respect to the coordination of the CBES amendments with existing and proposed
demand‑side management programs offered in the state.
(4) The commissioner of public service is authorized to adopt rules
interpreting and implementing the CBES.
(5) The commissioner of public service may grant written variances or
exemptions from the CBES or rules adopted under this section where strict
compliance would entail practical difficulty or unnecessary hardship, or is
otherwise found unwarranted, provided that:
(A) Any such variance or exemption shall be consistent with state
energy policy, as specified in 30 V.S.A. § 202a.
(B) Any petitioner for such a variance or exemption can demonstrate
that the methods, means, or practices proposed to be taken in lieu of
compliance with the rule or rules provide, in the opinion of the commissioner,
equal energy efficiency to that attained by compliance with the rule or rules. (C) A copy of any such variance or exemption shall be recorded by the
petitioner in the land records of the city or town in which the building is
(D) A record of each variance or exemption shall be maintained by the
commissioner, together with the certifications received by the commissioner.
(d) Certification requirement. Commercial (1) The design of commercial buildings shall be certified by
the primary designer as compliant with CBES in accordance with this
subsection, except as compliance is excused by a variance or exemption
issued under subdivision (c)(5) of this section. A certification may be
issued by a builder, a licensed professional engineer, or a licensed architect If applicable law requires that the primary designer be a licensed
professional engineer, licensed architect, or other licensed professional, a
member of a pertinent licensed profession shall issue this certification. If
one or more licensed professional engineers or licensed architects is involved
in the design of the project, one of these licensees shall issue this
certificate. If certification is not issued by a licensed
professional engineer or a licensed architect is not involved in designing
the project, it certification shall be issued by the
builder. Any certification shall be accompanied by an affidavit and shall
certify that the designer acted in accordance with the designer’s
professional duty of care in designing the building, and that the
commercial construction meets building was designed in substantial
compliance with the requirements of the CBES. The department of public
service will develop and make available to the public a certificate that lists
key features requirements of the CBES, sets forth certifying
language in accordance with this subdivision, and requires disclosure of persons
relied upon by the primary designer who have contracted to indemnify the
primary designer for damages arising out of that reliance. Any person
certifying under this subdivision shall use this certificate or one
substantially like it to certify compliance with CBES satisfy these
certification obligations. Certification shall be issued by completing and
signing a certificate and permanently affixing it to the outside of the heating
or cooling equipment, to the electrical service panel located inside the building,
or in a visible location in the vicinity of one of these three areas. The
certificate shall certify that the building has been constructed in compliance
with the requirements of the CBES. The person certifying under this subsection
shall provide a copy of each certificate to the department of public service
and shall assure that a certificate is recorded and indexed in the town land
records. A builder may contract with a licensed professional engineer or a
licensed architect to issue certification and to indemnify the builder from any
liability to the owner of the commercial construction caused by noncompliance
with the CBES. In certifying under this subsection, the certifying
person may reasonably rely on one or more supporting affidavits received from
other persons that contributed to the design affirming that the portions of the
design produced by them were properly certifiable under this subsection. The
certifying person may contract for indemnification from those on which the
person relies pursuant to this subdivision (1) against damages arising out of
that reliance. This indemnification shall not limit any rights of action of an
(2) The construction of a commercial building shall be certified as
compliant with CBES in accordance with this subsection, except as compliance is
excused by a variance or exemption issued under subdivision (c)(5) of this
section. This certification shall be issued by the general contractor,
construction manager, or other party having primary responsibility for
coordinating the construction of the subject building, or in the absence of
such a person, by the owner of the building. Any certification shall be
accompanied by an affidavit and shall certify that the subject commercial
building was constructed in accordance with the ordinary standard of care
applicable to the participating construction trades, and that the subject
commercial building was constructed substantially in accordance with the
construction documents including the plans and specifications certified under
subdivision (1) of this subsection for that building. The department of public
service will develop and make available to the public a certificate that sets
forth certifying language in accordance with this subdivision, and that requires
disclosure of persons who have been relied upon by the person with primary
responsibility for coordinating the construction of the building and who have
contracted to indemnify that person for damages arising out of that reliance. The person certifying under this subdivision shall use that certificate or one
substantially like it to satisfy these certification obligations. Certification shall be issued by completing and signing a certificate and
permanently affixing it to the outside of the heating or cooling equipment, to
the electrical service panel located inside the building, or in a visible
location in the vicinity of one of these three areas. In certifying under this
subdivision, the certifying person may reasonably rely on one or more supporting
affidavits received from subcontractors or others engaged in the construction
of the subject commercial building affirming that the portions of the building
constructed by them were properly certifiable under this subdivision. The
person relies pursuant to this subdivision (2) against damages arising out of
(3) Any person certifying under this subsection shall provide a copy
of the person’s certificate and any accompanying affidavit to the department of
(4) A certificate issued pursuant to subdivision (1) of this
subsection and a certificate issued pursuant to subdivision (2) of this
subsection shall be conditions precedent to issuance by the commissioner of
public safety (or a municipal official acting under 20 V.S.A. § 2736) of any
final occupancy permit required by the rules of the commissioner of public
safety for use or occupancy of a commercial building that is also a public
building as defined in 20 V.S.A. § 2730(a).
(e) Action Private right of action for damages against
a certifier.
(1) Except as otherwise provided in this subsection, a person aggrieved
by noncompliance with this section another person’s breach of that
other person’s representations contained in a certification or supporting
affidavit issued or received as provided under subsection (d) of this section,
within ten years after the earlier of completion of construction or occupancy
of the affected commercial building or portion of that building, may bring
a civil action in superior court against a person who has the an
obligation of certifying compliance under subsection (d) of this section alleging
breach of the representations contained in that person’s certification. This action may seek injunctive relief, damages arising from the aggrieved
party’s reliance on the accuracy of those representations, court costs, and
reasonable attorneys’ fees in an amount to be determined by the court. As used in this subdivision, “damages” means:
(A) includes costs incidental to increased energy
(B) labor, materials, and other expenses associated with bringing the
structure into compliance with CBES in effect on the date construction was
(2) A person’s failure to affix the certification as required by this
section shall not be an affirmative defense in such an action against the
(3) The rights and remedies created by this section shall not be
construed to limit any rights and remedies otherwise provided by law.
(4) The right of action established in this subsection may not be waived
by contract or other agreement.
(5) It shall be a defense to an action under this subsection that
either at the time of completion or at any time thereafter, the commercial
building or portion of building covered by a certificate under subsection (d)
of this section, as actually constructed, met or exceeded the overall
performance standards established in the CBES in effect on the date
construction was commenced.
(f) Violation of section State or local enforcements. Any
person who falsely certifies knowingly makes a false certification
under subsection (d) of this section, or any builder party
who fails to certify under subsection (d) of this section when required
to do so, shall be subject to a civil penalty of not more than $250.00 per
day, up to $10,000.00 for each year the violation continues. Each
violation shall constitute a separate offense, and each day that the violation
continues shall constitute a separate offense. (g) Title validity not affected. A defect in marketable title shall not
be created by a failure to record a variance or exemption pursuant to
subdivision (c)(5) of this section, by a failure to issue
certification or a certificate, as required under subsection (d) of this
section, or by a failure under that subsection to: affix a certificate;
or provide a copy of a certificate to the department of public service;
or record and index a certificate in the town records. *
* * Smart Metering * * *
(a) The public service board shall investigate opportunities for Vermont electric utilities cost‑effectively to install advanced “smart” metering
equipment capable of sending two‑way signals and sufficient to support
advanced time‑of‑use pricing during periods of critical peaks or
hourly differentiated time‑of‑use pricing. (b) The scope of the investigation shall include the following:
(1) The current status of implementing either advanced time‑of‑use
rate designs or advanced metering by Vermont utilities.
(2) Analysis of experience from other state jurisdictions and
individual utility experience in planning and implementing programs that
promote advanced time‑of‑use rate designs or advanced metering.
(3) Opportunities for exploring ways to design pilot programs and
share experience among Vermont utilities with the deployment of advanced meters
and rate designs.
(4) Analysis of all costs and benefits of installing advanced
metering equipment, giving due consideration to the circumstances that
differentiate Vermont utilities.
(5) Analysis of opportunities for reducing rates in the short and
long term or mitigating rate impacts of investments in advanced metering and
ancillary equipment through advanced time‑of‑use rate designs
enabled by these investments.
(6) Analysis of constraints or barriers to implementing this
subsection, or opportunities presented by further deferring plans or commitments
toward advanced metering equipment or rates.
(7) Analysis of all supporting and ancillary equipment, equipment
standards, and efficiency programs necessary to ensure that customers are
adequately and effectively empowered to use and respond cost‑effectively
to price signals made possible through advanced metering equipment. (c) After investigation, in utility territories where the board
concludes it appropriate and cost‑effective, the board shall require each
Vermont utility to file plans for investment and deployment of appropriate
technologies and plans and strategies for implementing advanced pricing with a
goal of ensuring that all ratepayer classes have an opportunity to receive and
participate effectively in advanced time‑of‑use pricing plans.
(d) By January 15, 2008, the public service board shall report to the
senate and house committees on natural resources and energy with regard to
interim progress in its investigation and measures already implemented under
(e) By June 15, 2008, the board shall issue a final report and plan
for implementation. *
* * Conservation Rates * * *
Sec. 8. 30
V.S.A. § 218(b) is amended to read:
(b) The department of public service shall propose, and the board
through the establishment of rates of return, rates, tolls, charges, or
schedules shall encourage the implementation by electric and gas utilities of
energy‑efficiency and load management measures which will be cost‑effective
for the utilities and their customers on a life cycle cost basis. The board
shall approve rate designs to encourage the efficient use of natural gas and
electricity, including consideration of the creation of an inclining
block rate structure for residential rate customers with an initial block of
low‑cost power available to all residences. (1) To implement the requirements of this subsection, the public
service board shall host one or more workshops to examine the following: (A) the parameters for residential inclining block rate designs;
(B) alternative rate designs, such as critical peak pricing programs
or more widespread use of time‑of‑day rates, that would encourage
more efficient use of electricity;
(C) the possible inclusion of exemptions from otherwise applicable
inclining block rates or rate designs to encourage efficiency for situations in
which special health needs or another extraordinary situation presents such a
significant demand for electricity that the board determines use of those rates
would cause undue financial hardship for the customer;
(2) By June 15, 2008, the board shall issue a report and plan for
implementation based upon the results of its investigation. The plan shall
require each retail company to upgrade its rates as necessary to implement new
rate designs appropriate to encourage efficient energy use, which shall include
residential inclining block rates, if the board determines that those rates
would be appropriate, by a specified date, or as part of its next rate‑related
appearance before the board, or according to a timetable otherwise specified by
the board. In implementing these rate designs, the board shall consider the
appropriateness of phasing in the rate design changes to allow large users of
energy a reasonable opportunity to employ methods of conservation and energy efficiency
in advance of the full effect of the changes.
* * Net Metering * * *
Sec. 9. 30
V.S.A. § 219a is amended to read:
§ 219a. SELF‑GENERATION
(1) “Customer” means a retail electric consumer who uses a net metering
(2) “Net metering” means measuring the difference between the
electricity supplied to a customer and the electricity fed back by a net
metering system during the customer’s billing period:
(A) using a single, nondemand meter or such other meter that would
otherwise be applicable to the customer’s usage but for the use of net
metering; or
(B) on farm or group systems, using multiple meters as specified
in this chapter. The calculation will be made by converting all meters to a
nondemand, nontime‑of‑day meter, and equalizing them to the
tariffed kilowatt‑hour rate.
(3) “Net metering system” means a facility for generation of electricity
(A) is of no more than 15 150 kilowatts (AC) capacity,
or is a farm system;
(E)(i) employs a renewable energy source as defined in
subdivision 8002(2) of this title; or
(ii) is a qualified micro‑combined heat and power system
of 20 kilowatts or fewer that meets the definition of combined heat and
power in 10 V.S.A. § 6523(b) and may use any fuel source that meets air
(4) “Farm system” means a facility of no more than 150 250
kilowatts (AC) output capacity, except as provided in subdivision (k)(5) of
this section, that generates electric energy on a farm operated by a person
principally engaged in the business of farming, as that term is defined in
Regulation 1.175‑3 of the Internal Revenue Code of 1986, from the
anaerobic digestion of agricultural products, byproducts, or wastes, or other
renewable sources as defined in subdivision (3)(E) of this subsection, intended
to offset the meters designated under subdivision (g)(1)(A) of this section on
the farm or has entered into a contract as specified in subsection (k) of this
(b) A customer shall pay the same rates, fees, or other payments
and be subject to the same conditions and requirements as all other purchasers
from the electric company in the same rate‑class, except as provided for
in this section, and except for appropriate and necessary conditions approved by
the board for the safety and reliability of the electric distribution system.
(f) Consistent with the other provisions of this title, electric energy
measurement for net metering farm or group net metering systems shall be
(1) Net metering customers that are farm or group net metering systems
may credit on‑site generation against all meters designated to the farm
system or group net metering system under subdivision (g)(1)(A) of this
(2) Electric energy measurement for farm or group net metering systems
shall be calculated by subtracting total usage of all meters included in the
farm or group net metering system from total generation by the farm or
group net metering system. If the electricity generated by the farm or
group net metering system is less than the total usage of all meters
included in the farm or group net metering system during the billing
period, the farm or group net metering system shall be credited for any
accumulated kilowatt‑hour credit and then billed for the net electricity
supplied by the electric company, in accordance with the procedures in
(3) If electricity generated by the farm or group net metering
system exceeds the electricity supplied by the electric company:
(A) The farm or group net metering system shall be billed for the
appropriate charges for each meter for that month, in accordance with
(B) Excess kilowatt‑hours generated during the billing period shall
be added to the accumulated balance with this kilowatt‑hour credit
appearing on the bill for the following billing period.
(C) Any accumulated kilowatt‑hour credits shall be used within 12
months or shall revert to the electric company without any compensation to the
farm or group net metering system. Power reverting to the electric
company under this subdivision (3) shall be considered SPEED resources under
section 8005 of this title.
(g)(1) In addition to any other requirements of section 248 of this
title and this section and board rules thereunder, before a net metering
farm or group net metering system including more than one meter may be
formed and served by an electric company, the proposed net metering farm
or group net metering system shall file with the board, with copies to
the department and the serving electric company, the following information:
(A) the meters to be included in the farm or group net metering system,
which shall be associated with the farm buildings and residences owned
or occupied by the person operating the farm or group net metering system,
or the person’s family or farm employees, or other members of
the group, identified by account number and location;
(B) a method for adding and removing meters included in the farm or
group net metering system;
(C) a designated person responsible for all communications from the farm
or group net metering system to the serving electric company, for
receiving and paying bills for any service provided by the serving electric
company for the farm or group net metering system, and for receiving any
other communications regarding the farm or group net metering system net
(D) a binding process for the resolution of any disputes within the farm
or group net metering system relating to net metering that does not rely
on the serving electric company, the board, or the department.
(2) The farm or group net metering system shall, at all times,
maintain a written designation to the serving electric company of a person who
shall be the sole person authorized to receive and pay bills for any service
provided by the serving electric company, and for receiving to
receive any other communications regarding the farm system, the group
net metering system, or net metering.
(3) The serving utility shall implement appropriate changes to the farm system
or group net metering system within 30 days after receiving
written notification from the designated person. However, written notification
of a change in the person designated under subdivision (2) of this subsection
shall be effective upon receipt by the serving utility. The serving utility
shall not be liable for action based on such notification, but shall make any
necessary corrections and bill adjustments to implement revised notifications.
(4) Pursuant to subsection 231(a) of this title, after such notice and
opportunity for hearing as the board may require, the board may revoke a
certificate of public good issued to a farm or group net metering system.
(5) A group net metering system may consist only of customers that
are located within the service area of the same electric company. Various
buildings owned by a municipality may constitute a group net metering system. If it determines that it would promote the general good, the board shall permit
a noncontiguous group of net metering customers to comprise a group net
(A) Shall make net metering available to any customer using a net
metering system, group net metering system, or farm system on a first‑come,
first‑served basis until the cumulative output capacity of net metering
systems equals 1.0 2.0 percent of the distribution company’s peak
demand during 1996; or the peak demand during the most recent full calendar
year, whichever is greater. The board may raise the 1.0 2.0
percent cap. In determining whether to raise the cap, the board shall consider
(i) the costs and benefits of net metering systems already connected to
(ii) the potential costs and benefits of exceeding the cap, including
potential short and long‑term impacts on rates, distribution system costs
and benefits, reliability and diversification costs and benefits;
(B) Shall allow net metering systems to be interconnected using a
kilowatt‑hour meter capable of registering the flow of electricity in two
directions or such other comparably equipped meter that would otherwise be
applicable to the customer’s usage but for the use of net metering;
(C) May, at its own expense, and with the written consent of the
customer, install one or more additional meters to monitor the flow of
electricity in each direction;
(D) Shall Except as otherwise provided in this section, shall
charge the customer a minimum monthly fee that is the same as for other
customers of the electric distribution company in the same rate class, but
shall not charge the customer any additional standby, capacity,
interconnection, or other fee or charge;
(E) May require a customer to comply with generation interconnection,
safety, and reliability requirements, as determined by the public service board
by rule or order, and may charge reasonable fees for interconnection,
establishment, special metering, meter reading, accounting, account correcting,
and account maintenance of net metering arrangements of greater than 15
kilowatt (AC) capacity;
(F) May charge, if the capacity of the distribution system is
insufficient for the designed generation, subject to determination by the
board, a reasonable fee to cover the cost of electric company improvements
necessary to distribute power;
(G) May require that all meters included within a farm or group net
metering system be read on the same billing cycle;
(H) May book and defer, with carrying costs, additional incremental
costs, to the extent that such costs are not recovered through charges,
authorized in subdivisions (D), (E), and (F) of this subdivision (1), directly
related to implementing net metering of greater than 15 kilowatt (AC) capacity;
(I) Shall receive from a farm system, which is designed to produce
less energy than the total annual load of the meters identified in subdivision
(g)(1)(A) of this section, any tradeable renewable credits for which the farm system
is eligible. All other farm systems shall retain any tradeable renewable
credits for which the farm is eligible;.
(2) All such requirements shall be pursuant to and governed by a tariff
approved by the board and any applicable board rule, which tariffs and rules
shall be designed in a manner reasonably likely to facilitate net metering.
(j) Notwithstanding the provisions of this section that define a net
metering system as being of no more than 15 150 kilowatts (AC)
capacity, the board may allow net metering for up to ten systems per year for
customers that produce more than 15 150 kilowatts (AC) capacity,
but do not produce more than 150 250 kilowatts of power and are
not farm systems.
(k) Notwithstanding the provisions of subsections (f) and (g) of this
section, an electric company may contract to purchase all or a portion of the
output products from a farm or group net metering system, provided:
(1) the farm or group net metering system obtains a certificate
of public good under the terms of subsections (c) and (d) of this section;
(2) any contracted power shall be subject to the limitations set forth
in subdivision (h)(1) of this section;
(3) any contract shall be subject to interconnection and metering
requirements in subdivisions (h)(1)(C) and (i)(2) and (3) of this section;
(4) any contract may permit all or a portion of the tradeable renewable
energy credits for which the farm or group net metering system is
eligible to be transferred to the electric company;
(5) the output capacity of a system may exceed 150 250
kilowatts, provided:
(B) the net metered amount does not exceed 150 250
kilowatts; and
(C) only the amount assigned to net metering is assessed to the cap
provided in subdivision (h)(1)(A) of this section.
Sec. 10. 32
V.S.A. § 3845 is amended to read:
(b) For the purposes of this section alternate energy sources includes
any plant, structure or facility used for the generation of electricity or
production of energy used on the premises for private, domestic or agricultural
purposes, no part of which may be for sale or exchange to the public. The term
shall include, but not be limited to grist mills, windmills, facilities for the
collection of solar energy or the conversion of organic matter to methane, net
metering systems regulated by the public service board under 30 V.S.A. § 219a,
and all component parts thereof including land upon which the facility is
located, not to exceed one‑half acre.
* * Temporary Meteorological Stations * * *
Sec. 11. 30
V.S.A. § 246 is added to read:
(a) For purposes of this section, a
“meteorological station” consists of one temporary tower, which may include guy
wires, and attached instrumentation to collect and record wind speed, wind
direction, and atmospheric conditions.
(b) The public service board shall establish by
rule or order standards and procedures governing application for, and issuance
or revocation of, a certificate of public good for the temporary installation
of one or more meteorological stations under the provisions of section 248 of
this title. A meteorological station shall be deemed to promote the public
good of the state if it is in compliance with the criteria of this section and
the board rules or orders. An applicant for a certificate of public good for a
meteorological station shall be exempt from the requirements of subsection
202(f) of this title.
(c) In developing rules or orders, the board: (1) Shall develop a simple application form and shall require that
completed applications be filed with the board, the department of public
service, the agency of natural resources, and the municipality in which the
meteorological station is proposed to be located.
(2) Shall require that if no objections are filed within 30 days of
the board’s receipt of a complete application and the board determines that the
applicant has met all of the requirements of section 248 of this title, the
certificate of public good shall be issued for a period that the board finds
reasonable, but in no event for more than five years. Upon request of an
applicant, the board may renew a certificate of public good. Upon expiration
of the certificate, the meteorological station and all associated structures
and material shall be removed, and the site shall be restored substantially to
its preconstruction condition.
(3) May waive the requirements of section 248 of this title that are
not applicable to meteorological stations, including criteria that are
generally applicable to public service companies as defined in this title. The
board shall not waive review regarding whether construction will have an undue
adverse effect on esthetics, historic sites, air and water purity, the natural
environment, and the public health and safety.
(4) Shall seek to simplify the application and review process, as
appropriate, in conformance with this section.
(d) A proposal for decision shall be issued within five months of
when the board receives a completed application for a certificate of public
good for the temporary installation of one or more meteorological stations
under the provisions of section 248 of this title.
* * Renewable Energy Pricing and Portfolio Standards * * *
Sec. 12. 30
V.S.A. § 8002(4) is amended to read:
(4) “New renewable energy” means renewable energy produced by a
generating resource coming into service after December 31, 2004. This may
include the additional energy from an existing renewable facility retrofitted
with advanced technologies or otherwise operated, modified, or
expanded to increase the kwh output of the facility in excess of an
historical baseline established by calculating the average output of that
facility for the 10‑year period that ended December 31, 2004. If the
production of new renewable energy through retrofitting expansion
involves combustion of the resource, the system also must result in an
incrementally higher level of energy conversion efficiency or significantly
reduced emissions. For the purposes of this chapter, renewable energy refers
to either “existing renewable energy” or “new renewable energy.”
Sec. 13. 30
V.S.A. § 8003 is amended to read:
(a) Upon petition of an electric company subject to this title, upon
request of the department of public service, or on its own initiative, the
public service board may approve one or more renewable pricing programs for one
or more electric utilities; provided, however, in the case of a municipal plant
or department formed under local charter or chapter 79 of this title, or an
electric cooperative formed under chapter 81 of this title, any renewable
pricing program approved by the board shall also be approved by a majority of
the voters of a municipality or cooperative voting upon the question at a duly
warned annual or special meeting held for that purpose. Unless the
board finds good cause to exempt a utility, by no later than July 1, 2008, each
electric utility, municipal department formed under local charter or chapter 79
of this title, and each electric cooperative formed under chapter 81 of this
title shall implement a renewable energy pricing program under this section for
its customers, or shall offer customers the option of making a voluntary
contribution to the Vermont clean energy development fund established under 10
V.S.A. § 6523. Such renewable energy pricing programs may include,
but are not limited to, tariffs, standard special contracts, or other
arrangements whose purpose is to increase the company’s reliance on, or the
customer’s support of, renewable sources of energy or the type and quantity of
renewable energy resources available.
(f) Renewable pricing programs offered by a company shall be
available to such customer classes as the board may determine. (g) The board shall consider the following factors in deciding whether and
upon what conditions to approve a proposed renewable energy pricing
(2) auditing or certification of sources of energy or tradeable
(4) effectiveness of the program in meeting the goals of promoting
renewable energy generation and public understanding of renewable energy
sources in Vermont;
(5) retention by the program of renewable energy production incentives,
tax incentives and other incentives earned or otherwise obtained by energy
resources acquired pursuant to or as part of a renewable energy pricing
program approved under this section to reduce the cost of any premiums paid
(6) costs imposed on nonparticipating customers arising on account of
the implementation of the voluntary renewable energy pricing program.
Sec. 14. 30
V.S.A. § 8004(e) is amended to read:
(e) In lieu of, or in addition to purchasing tradeable renewable energy
credits to satisfy the portfolio requirements of this section, a retail
electricity provider in this state may pay to a renewable energy fund
established by the public service board the Vermont clean energy development
fund established under 10 V.S.A. § 6523 an amount per kilowatt hour as
established by the board. As an alternative, the board may require any
proportion of this amount to be paid to the energy conservation fund
established under subsection 209(d) of this title.
* * SPEED Program * * *
Sec. 15. 30
V.S.A. § 8005 is amended to read:
(b) The SPEED program shall be established, by rule, order, or contract,
by the public service board by January 1, 2007. As part of the SPEED program,
the public service board may, and in the case of subdivisions (2) and (3) of
this subsection shall:
(2) allow the developer of a facility that is one megawatt or less, and
is a qualifying SPEED resource or a nonqualifying SPEED resource, to sell that
power under a long term contract that is established at a specified margin
below the hourly spot market price determined by the board to be
adequate to promote SPEED resource development while remaining consistent with
the principles of least‑cost energy services under section 218c of this
title. For purposes of this section, a long‑term contract should be 15
years or greater unless the board finds good cause for a shorter term;
(3) encourage Vermont’s retail electricity providers to secure long‑term
contracts, at stable prices, for renewable energy that are
anticipated to be below the long‑term market price, over the lives of the
projects qualifying SPEED resources. The board shall create a standard
contract price, or a set of maximum and minimum provisions, or both, for
qualifying SPEED resources over 1 MW of capacity. In setting a standard
contract price for a qualifying SPEED resource, the board shall consider the
goal of developing qualified SPEED resources, least cost provision of energy
service under section 218c, and the impact on electric rates. The board
may create a competitive bid process through which to select a portion of those
(d)(1) The public service board shall meet on or before January 1, 2012,
and open a proceeding, and issue findings determining to
determine the total amount of qualifying SPEED resources that have come
into service or are projected to come into service during the period of time
between January 1, 2005 and January 1, 2013 been supplied to Vermont
retail electricity providers or have been issued a certificate of public good. If the board finds that the amount of qualifying SPEED resources coming into
service during that time or having been issued a certificate of
public good after January 1, 2005 and before July 1, 2012 equals or exceeds
total statewide growth in electric energy usage retail sales
during the period of time between January 1, 2005 and January 1, 2012 that
time, and in addition, at least five percent of the 2005 total statewide
electric retail sales is provided by qualified SPEED resources, or if it
finds that the amount of qualifying SPEED resources equals or exceeds 10
percent of total statewide electric energy usage retail sales for
calendar year 2005, the portfolio standards established under this chapter
shall not be in force. The board shall make its determination by July 1,
2012 January 1, 2013. If the board finds that the goal established
has not been met, one year after the board’s determination the portfolio
standards established under subsection 8004(b) of this title shall take effect.
(2) A state goal is to assure that 20 percent of total statewide
electric retail sales before July 1, 2017 shall be generated by speed resources. The public service
board shall report to the house and senate committees on natural resources and
energy and to the joint energy committee by December 15, 2012 with regard to
the state’s progress in meeting this goal. In addition, the board shall report
to the house and senate committees on natural resources and energy and to the
joint energy committee by December 15, 2014 with regard to the state’s progress
in meeting this goal and, if necessary, shall include any appropriate
recommendations for measures that will make attaining the goal more likely.
(3) For the purposes of the determination to be made under this
subsection, electricity produced at all facilities owned by or under long‑term
contract to Vermont retail electricity providers, whether it is generated
inside or outside Vermont, that is new renewable energy shall be counted in the
calculations under subdivision subdivisions (d)(1) and (2)
* * Assistance * * *
Sec. 16. REPORTS ON OMBUDSMAN AND TECHNICAL ASSISTANCE FOR COMMUNITIES Technical assistance. By no later than January 15, 2008, the public
service department, after consultation with the public service board and the
clean energy development fund investment committee established under
10 V.S.A. § 6523(e)(1)(B), shall report to the legislative committees
on natural resources and energy with a recommended program by which the state
may best:
(1) Establish and fund an office of ombudsman, which would be charged
with assisting those who desire to develop renewable energy projects in dealing
with the regulatory process. The department shall consult with the agency of
natural resources with respect to how to assist individuals seeking a
certificate of public good for a small hydroelectric facility, a small wind
project, or a small solar project, as well as those seeking water quality
certification associated with a small hydroelectric facility. The department
of public service shall consider how best to coordinate services between its
ombudsman and the ombudsman for renewable energy at the agency of agriculture,
(2) Establish and fund a program to provide communities with
assistance in assessing their renewable energy resources and the potential for
development of those resources, and in evaluating, selecting, and implementing
reasonable alternatives for financing the construction of those renewable
Sec. 17. 32
V.S.A. § 8661 is amended to read:
§ 8661. TAX
LEVY KILOWATT HOUR TAX
(a) There is hereby assessed each year upon electric generating plants
constructed in the state subsequent to July 1, 1965, and having a name plate
generating capacity of 200,000 kilowatts, or more, a state tax in accordance
If megawatt hour production is: tax is:
Less than 2,300,000 megawatt hours $2.0 million
2,300,000 to
3,800,000 megawatt hours $2.0 million plus $0.40 per
hour over 2,300,000
3,800,001 to 4,200,000 megawatt hours $2.6 million
4,200,000 megawatt hours $2.6 million plus $0.40
per megawatt
hour over 4,200,000
For purposes of this section, “megawatt hour production” means the
average of net production for sale in the three most recent preceding calendar
years. The tax imposed by this section shall be paid to the commissioner in
equal quarterly installments on or before the 25th day of March, June,
September, and December by the person or corporation then owning or operating
such electric generating plant. imposed at a rate per kWh of electrical
energy produced by the facility as determined by the public service department
for the average of the past three calendar years. The rate of the tax shall
(1) $0.00225 per kWh in fiscal year 2009;
(2) $0.0025 in fiscal year 2010; and
(3) $0.003 in fiscal year 2011 and thereafter.
(b) If an entity subject to this tax generates no electricity during the
tax year due to termination or expiration of a necessary license, or due to
permanent cessation of operations, no tax shall be due for that year. (c) A person or corporation failing to make returns or pay the tax
imposed by this section within the time required shall be subject to and
governed by the provisions of sections 3202, 3203, 5868, and 5873 of this
(d) The tax imposed by this section shall be collected
quarterly and shall be due on the last day of the month following the end of
the quarter. It shall be paid to the commissioner of taxes by the person or
corporation then owning or operating such electric generating plant.
(e) Annually, of the revenues received:
(1) 42 percent shall be deposited in the education fund of the state
established in section 4025 of Title 16 to be expended for the purposes of that
(2) 58 percent shall be deposited in the general fund of the state.
Sec. 17a. REPEAL
§ 5402a [ELECTRIC GENERATING PLANT EDUCATION PROPERTY TAX] is
Sec. 17b. EFFECTIVE DATE
17 and 17a of this act shall take effect July 1, 2008.
Sec. 17c. REPORT
By January 15, 2008, the commissioner of taxes shall present
recommendations to the senate committee on finance and the house committee on
ways and means with regard to transitioning from the existing tax established
in 32 V.S.A. § 8661 to the tax as established under this act.
* * * Wind‑Powered Electric Generating Facilities *
18. 32 V.S.A. § 5402c is added to read:
§ 5402c. WIND‑POWERED
ELECTRIC GENERATING FACILITIES TAX
(a) A facility certified by the commissioner of public service
as a facility which produces electrical energy for resale, generated solely
from wind power, which has an installed capacity of at least five megawatts,
which was placed in service after January 1, 2007, and which holds a valid
certificate of public good issued under 30 V.S.A. § 248, shall be assessed an
alternative education property tax on its buildings and fixtures used directly
and exclusively in the generation of electrical energy from wind power.
(b) The tax shall be imposed at a rate per kWh of electrical energy
produced by the certified facility, as determined by the public service
department for the six months ending April 30 and the six months ending October
31 each year. The rate of the tax shall be:
(1) $0.00225 in fiscal year 2009;
(2) $0.0025 in fiscal year 2010;
(c) In no case shall the tax imposed for any six‑month period
be less than an amount equal to the rate per kWh imposed by this subsection
multiplied by the number of kWh that would be generated if the facility
operated at a 15 percent capacity factor.
(d) The tax imposed by this section shall be paid to the
commissioner of taxes by the person or entity then owning or operating the
certified facility, by December 1 for the period ending October 31 and by June
1 for the period ending April 30, for deposit into the education fund. A
person or entity failing to make returns or pay the tax imposed by this section
within the time required shall be subject to and governed by the provisions of
sections 3202 and 3203 and subchapters 8 and 9 of chapter 151 of this title.
(e) Until a facility is certified under this subsection, it
shall remain subject to taxation under section 5402 of this title. Buildings
and fixtures subject to the education property tax under this section shall not
be taken into account in determining the common level of appraisal for the
municipality. Sec. 19. STUDY OF TAX ON ELECTRIC GENERATING PROPERTY The commissioner of the department of public service, the commissioner
of taxes, and a representative of the joint fiscal office shall study the proper
valuation of electric generating facilities and whether there are factors that
might necessitate different treatment for different types of electric
generating facilities. Based on this study, they shall determine options for
raising tax revenues from electric generating facilities, including the current
education property tax, and the advantages and disadvantages of the various
options with regard to stability of the revenue source, ability to build
inflation into the tax mechanism, how well the tax mechanism will reflect the
cost of power sold and fluctuations in power production, whether property
valuation creates difficulties for application of a property tax, how the tax
mechanism will produce revenue during any start‑up or construction
period, and any other issues which they may find pertinent to the inquiry; and
based upon their findings, shall recommend one or more education tax options
for this property. The study group shall report its findings and
recommendations, including proposed legislative amendments, to the house
committee on ways and means and senate committee on finance by December 1,
* * Business Energy Credit * * *
20. 32 V.S.A. § 5822(c)(1)(B) and (d) are amended to read:
(c) The amount of tax determined under subsection (a) of this
(1) increased by 24 percent of the taxpayer’s federal tax liability
for the taxable year for the following:
(B) recapture of federal investment tax credit and increased by
76 percent of the Vermont‑property portion of the business solar energy
investment tax credit component of the federal investment tax credit recapture
for the taxable year;
(d) A taxpayer shall be entitled to a credit against the tax
imposed under this section of 24 percent of each of the credits allowed against
the taxpayer’s federal income tax for the taxable year as follows: elderly and permanently totally disabled credit, investment tax credit, and
child care and dependent care credits. A taxpayer shall also be
entitled to a credit against the tax imposed under this section of 76 percent
of the Vermont‑property portion of the business solar energy investment
tax credit component of the federal investment tax credit allowed against the
taxpayer’s federal income tax for the taxable year under Section 48 of the
21. 32 V.S.A. § 5930z is added to read:
5930z. Pass‑Through of
Federal Energy Credit for Corporations
(a) A taxpayer of this state shall be eligible for a credit
against the tax imposed under section 5832 of this title in an amount equal to
100 percent of the Vermont‑property portion of the business solar energy
investment tax credit component of the federal investment tax credit allowed
against the taxpayer’s federal income tax for the taxable year under Section 48
of the Internal Revenue Code. (b) Any taxpayer who has received a credit under subsection (a)
of this section in any prior year shall increase its corporate income tax under
this chapter by the amount of the Vermont‑property portion of the business
solar energy investment tax credit component of the federal investment tax
credit recapture for the taxable year. Sec.
22. EFFECTIVE DATE OF BUSINESS ENERGY TAX CREDITS
(a) Secs. 20 and 21 of this act (business energy tax credits)
shall apply to taxable years 2008 and after.
(b) By January 15, 2008, the department of taxes and the joint fiscal
office shall report to the general assembly regarding recommendations on any
changes to the business solar tax credit, including options for replacing the
pass‑through of the federal credit to promote solar investment, whether
it should be restructured to be a state tax credit rather than a pass‑through
of the federal investment tax credit, and whether other investment tax credits
should be adopted to promote energy efficiency in the state. *
* * Small Hydro Reports * * *
Sec. 23. PUBLIC SERVICE BOARD REPORT ON PERMITTING SMALL HYDROELECTRIC PROJECTS
Prior to December 15, 2007, the public service board shall report to
the house committee on fish, wildlife and water resources and the senate
committee on natural resources and energy with a recommendation for a simple,
predictable, and environmentally sound process, other than the process set
forth in subsection 248(j) of Title 30, for issuing a certificate of public
good under section 248 of Title 30 for small hydroelectric projects that are
not eligible for a net metering permit under public service board rule 5.100. The report shall:
(1) Recommend criteria for determining what constitutes a small
hydroelectric facility, including the allowable maximum amount of output
capacity at the facility and the type of eligible facilities, natural features,
(2) Address permit application requirements, including ownership of
the facility, interconnection, and structural safety of the small hydroelectric
(3) Address additional uses of the small hydroelectric project such
as flood control; fish and wildlife habitat; recreation; water supply; historic
resource; and structural grade control for infrastructure, roads, bridges, and
Sec. 24. AGENCY OF NATURAL RESOURCES REPORT ON WATER QUALITY CERTIFICATION FOR SMALL
Prior to December 15, 2007, the secretary of
natural resources shall report to the house committee on fish, wildlife and
water resources and the senate committee on natural resources and energy with a
recommendation for a simple, predictable, and environmentally sound procedure
for completing a water quality certification review, as required by Section 401
of the federal Clean Water Act, of small hydroelectric projects that are not
subject to net metering. The report shall:
(1) Recommend, after consultation with the public service board,
criteria for determining what constitutes a small hydroelectric facility, including
the allowable maximum amount of output capacity at the facility and the type of
eligible facilities, natural features, or other sites;
(3) Address the need for monitoring of dissolved oxygen at small
hydroelectric facilities.
(4) Address seasonal flows in bypasses at run‑of‑river
facilities. (5) Address the need for new fish or flow studies for small
hydroelectric projects. (6) Address the use of flashboards to increase upstream flooding.
(7) Address measures to prevent fish from entering turbines and
(9) Include an analysis of the existing permitting process for small
Sec. 25. PILOT PROJECTS FOR SMALL HYDROELECTRIC GENERATORS
In order to promote the timely development of environmentally sound
small community hydro projects, and to help inform efforts to develop new
permitting processes, the public service department and the agency of natural
resources shall work with communities that are seeking to develop small hydro
projects, to facilitate those projects through the existing permit processes. These projects shall not have more than 2 MW of name‑plate capacity,
shall have the support and involvement of the communities in which they are
located, and shall not include the construction of a new dam.
Sec. 26. LEGISLATIVE FINDINGS; EXISTING OUTDOOR WOOD BOILERS GRANDFATHERED; IMPROPER
USE; NEW RULE 05‑P41 EFFECTIVE MARCH 31, 2008
(1) confusion and misinformation has caused some current owners of
outdoor wood boilers to incorrectly conclude that they may be unable to use
their units when Rule 05‑P41 goes into effect;
(2) Rule 05‑P41, recently adopted by the agency of natural
resources, raises emission standard requirements for new outdoor wood boilers
purchased after March 31, 2008, and does not in any way affect Vermonters who
currently own outdoor wood boilers, the proper use of which will be
grandfathered unless a nuisance is created;
(3) Rule 05‑P41 for new outdoor wood boilers does not take
effect until March 31, 2008, thereby giving fair warning to dealers and
(4) Rule 05‑P41 and 10 V.S.A. § 561 (variances) authorizes the
secretary of natural resources, on application from an affected party, to
extend the implementation date of the rule if the available technology cannot
satisfy the air quality standards in the rule; and
(5) it is unlawful for a person to use an outdoor wood boiler, as it
is for other wood‑burning equipment, to burn rubber, tires, plastics,
common household waste, or hazardous waste of any kind, which when combusted
often cause high levels of toxins to be emitted into our communities, in turn
resulting in dirty and toxic air with complaints to municipal and state
governments, and demands for stricter air quality rules. See 24 V.S.A. § 2201
(relating to enforcement of solid waste law violations and municipal
enforcement) and 10 V.S.A. Chapters 23 and 159 and the rules adopted
thereunder (relating to the definitions of solid waste).
Sec. 27. REPORT ON STATUS OF SPEED PROGRAM By no later than January 15, 2008, the public service board shall
report to the legislative committees on natural resources and energy with an
evaluation of the likelihood of qualifying SPEED resources coming into service
in time to meet the standards established in 30 V.S.A. § 8005(d), as amended by
* * Plumbing * * *
28. 26 V.S.A. § 2192a(b) is amended to read:
(4) Solar System Specialist: Installation, replacement and repair of
residential, industrial or commercial domestic solar heating systems for use as
a supplemental or pre‑heat source. Systems shall include; passive or
active design, collectors, storage tanks, heat exchangers, piping, safety
devices and related materials. The Solar System Specialist shall only connect
to new or existing domestic hot water supply tanks, including instantaneous
heaters, as well as tanks or heat exchangers supplementing hydronic space
heating systems. At no time shall a Solar System Specialist install, replace
and repair any other part of a domestic hot water supply or hydronic space
* * Affordability * * *
Sec. 29. 30
V.S.A. § 218(e) is added to read: (e) Notwithstanding any other provisions of this section, the board,
on its own motion or upon petition of any person, may issue an order approving
a rate schedule, tariff, agreement, contract, or settlement that provides
reduced rates for low income electric utility consumers better to assure
affordability. For the purposes of this subsection, “low income electric
utility consumer” means a customer who has a household income at or below 150
percent of the current federal poverty level. When considering whether to
approve a rate schedule, tariff, agreement, contract, or settlement for low
income electric utility consumers, the board shall take into account the
potential impact on, and cost‑shifting to, other utility customers.
* * Energy Efficiency Services Fund * * *
Sec. 30. 30
V.S.A. § 203a is added to read:
§ 203a. ENERGY
(1) it is the policy of the state to assure the efficient use of
energy resources and cost‑effective demand management, as specified in
section 202a of this title;
(2) a comprehensive state energy plan, as is specified in section
202b of this title, must be developed to implement this state energy policy;
(3) it is appropriate to build upon the work in reducing energy costs
for Vermonters already done by the existing efficiency utility established
under the authority of section 209 of this title, and to integrate that work
into a broader program implemented through an expanded energy efficiency
utility that will serve the needs of the people of the state in an even better
(4) current energy efficiency programs are not designed to meet fully
the thermal efficiency needs of consumers who rely on heating oil, kerosene,
propane, and coal, as they are funded through efficiency charges that are
currently assessed only on electricity and natural gas providers regulated by
(5) with the scientific consensus that global climate change is
caused in significant part by human activities that release greenhouse gases
into the atmosphere, it is particularly important to reduce the extent to which
these emissions result from the inefficient use of carbon‑containing
fuels, regardless of the nature of the source;
(6) it is desirable for the state to lower the risk of high fuel
prices and vulnerable supplies, while at the same time strengthening the
Vermont economy by establishing a system to promote all forms of energy end‑use
efficiency, comprehensive sustainable building design, and integrated renewable
(b) Non‑electric energy efficiency fund. The
public service board shall establish a non‑electric energy efficiency
fund to be managed by a fund administrator appointed by the board under this
section and subdivision 209(d)(3) of this title. The fund shall contain
such sums as appropriated by the general assembly or as otherwise provided by
law. Balances in the fund and interest earned shall be carried forward and
remain in the fund at the end of each fiscal year.
(c) Use of the fund. The non‑electric energy efficiency
services fund shall be used to support the delivery of energy efficiency
services to Vermont heating and process fuel consumers of oil, kerosene,
propane, coal, and wood; and to carry out cost‑effective efficiency
measures and reductions in greenhouse gas emissions from sectors other than, or
in addition to, the regulated electricity and natural gas use sectors. These
energy efficiency services shall be provided by the energy efficiency utility
appointed by the board under subsection 209(d) of this title and operating in
accordance with section 209 of this title. (d) Review of adequacy of the fund.
(1) On or before January 15, 2011, the public service board shall
report to the legislature on the expenditure of funds from the non‑electric
energy efficiency services fund to meet the public’s needs for energy
efficiency services.
(2) The report shall include a funding adequacy evaluation and
funding recommendations which shall be developed through a collaborative
process involving representatives of heating fuel dealers, electric and gas
utilities, the expanded energy efficiency utility, the department of public
service, residential and business consumer representatives, environmental advocates,
the building industry, entities currently engaged in delivering weatherization
services, and other stakeholders identified by the board. (3) The funding adequacy evaluation shall address: the need for and
availability of alternative revenue sources that may be dedicated to the non‑electric
energy efficiency fund; the resources dedicated to energy efficiency purposes
provided through electric and natural gas rates; an evaluation of potential
cost‑effective energy efficiency investments and programs designed to
meet the need for energy services through efficiency or conservation in all
customer classes and areas of opportunity; the amount of funding necessary in
order to realize all reasonably available, cost‑effective energy
efficiency savings; and other factors to assure consistency with the purposes
of this section and the goals of section 202a of this title.
(4) The funding recommendations shall be developed in a manner that
accords an appropriate balance among the following objectives: reducing the
size of future heating and process‑fuel purchases; reducing the
generation of greenhouse gases; providing efficiency and conservation as a part
of a comprehensive resource supply strategy; providing the opportunity for all
Vermonters to participate in efficiency and conservation programs; providing
that residential and commercial sector benefits generally shall be proportional
to sector contributions to the extent such proportion can be determined; and
targeting efficiency and conservation efforts to locations, markets, or
customers where they may provide the greatest value.
* * Revised Efficiency Utility Structure * * *
Sec. 31. REPORT ON REVISED STRUCTURE FOR ENERGY EFFICIENCY UTILITY
Public service board report. By no later than December 15, 2007, the
public service board shall present a report to the house and senate committees
on natural resources and energy, the senate committee on finance, and the house
committee on ways and means that contains a proposed revised energy efficiency
utility structure, together with any proposed legislative changes that in its
judgment will assist in the effective implementation of the revised efficiency
utility. The board shall develop the proposal in a manner consistent with the
provisions of 30 V.S.A. § 209 and in collaboration with representatives from
heating fuel dealers, electric and gas utilities, the energy efficiency
utility, the department of public service, consumer representatives,
environmental advocates, the building industry, entities currently engaged in
delivering weatherization services, and other stakeholders identified by the
board. The report shall include options for ongoing funding of the expanded
fossil fuel efficiency responsibilities of the energy efficiency utility.
Sec. 31a. OVERSIGHT OF EFFICIENCY UTILITY
(a) Legislative oversight. Final responsibility for establishing the
proposed efficiency utility rests with the general assembly. The general
assembly shall promptly review and give deliberate consideration to the
proposal submitted by the board under Sec. 31 of this act, and take appropriate
action. Unless the general assembly enacts legislation to the contrary by
March 31, 2008, the efficiency utility shall become effective as provided by
(b) Representation of ratepayers. The department of public service
shall represent the interests of ratepayers in proceedings before the public
service board involving the efficiency utility in a manner consistent with the
provisions of 30 V.S.A. § 202a.
(c) Accountability. The public service board shall provide ongoing
oversight in order to assure continued accountability of the efficiency
utility, as required under 30 V.S.A. §§ 209 and 203a.
Sec. 32. 30
V.S.A. § 209 is amended to read:
(d)(1) The public service department, any entity appointed by the board
under subdivision (2) of this subsection, all gas and electric utility
companies, and the board upon its own motion, are encouraged to propose, develop,
solicit, and monitor energy efficiency and conservation programs and measures,
including appropriate combined heat and power systems that result in the
conservation and efficient use of energy and meet the applicable agency of
natural resources’ air quality standards. Such programs and measures, and
their implementation, may be approved by the board if it determines they will
be beneficial to the ratepayers of the companies after such notice and hearings
as the board may require by order or by rule. (2) In place of utility‑specific programs developed pursuant to
section 218c of this title, the board may shall, after notice and
opportunity for hearing, provide for the development, implementation, and
monitoring of gas and electric energy efficiency and conservation programs and
measures including programs and measures delivered in multiple service
territories, by one or more entities appointed by the board for these
purposes appointing a qualified entity as an energy efficiency utility. An appointment of an energy efficiency utility shall be made under this section
and section 203a of this title, on a schedule that provides the energy
efficiency utility adequate time to prepare for the delivery of relevant
services no later than January 1, 2009. Despite this appointment, however, the
board may allow the Burlington Electric Department and the Vermont Gas Systems,
Inc., and any successors in interest, to continue to provide efficiency
services within their respective service territories. The As
part of this appointment, the board may shall include as
eligible measures appropriate combined heat and power systems that result
in the conservation and efficient use of energy and meet the applicable agency
of natural resources’ air quality standards. The Except with regard
to a transmission company, the board may specify that the implementation
of these programs and measures appointment of an energy efficiency
utility to deliver services within an electric utility’s service territory
satisfies a that electric utility’s corresponding obligations, in
whole or in part, under section 218c of this title and under any prior orders
(3) In addition to its existing authority, the board may establish by
order or rule a volumetric charge to customers for the support of energy
efficiency programs that meet the requirements of section 218c of this title. The charge shall be known as the energy efficiency charge, shall be shown
separately on each customer’s bill, and shall be paid to a fund administrator appointed
by the board and deposited into an electric efficiency fund. When such
a charge is shown, notice as to how to obtain information about energy
efficiency programs approved under this section shall be provided in a manner
directed by the board. This notice shall include, at a minimum, a toll free
telephone number, and to the extent feasible shall be on the customer’s bill
and near the energy efficiency charge. Balances in the electric efficiency
fund shall be ratepayer funds, shall be used to support the activities
authorized in this subdivision, and shall be carried forward and remain in the
fund at the end of each fiscal year. These monies shall not be available to
meet the general obligations of the state. Interest earned shall remain in the
fund. The board will annually provide the legislature with a report detailing
the revenues collected and the expenditures made for energy efficiency programs
(4) The charge established by the board pursuant to subdivision (3) of
this subsection shall be in an amount determined by the board by rule or order
that is consistent with the principles of least cost integrated planning as
defined in section 218c of this title. As circumstances and programs evolve,
the amount of the charge shall be reviewed for unrealized energy efficiency
potential and shall be adjusted as necessary in order to realize all reasonably
available, cost‑effective energy efficiency savings. In setting the
amount of the charge and its allocation, the board shall determine an
appropriate balance among the following objectives; provided, however, that
particular emphasis shall be accorded to the first four of these objectives:
reducing the size of future power purchases; reducing the generation of
greenhouse gases; limiting the need to upgrade the state’s transmission and
distribution infrastructure; minimizing the costs of electricity; providing
efficiency and conservation as a part of a comprehensive resource supply
strategy; providing the opportunity for all Vermonters to participate in
efficiency and conservation programs; and the value of targeting efficiency and
conservation efforts to locations, markets or customers where they may provide
the greatest value. The board, by rule or order, shall establish a process by
which a customer may apply to the board for an exemption from some or all of
the charges assessed under this subdivision. The board shall establish criteria
by which these applications shall be measured. Any such exemption shall extend
for a period of time not to exceed one year. In addition, the board may
authorize exemptions only if, at a minimum, a customer demonstrates that,
during the preceding year, it implemented an extraordinary amount of cost‑effective
energy efficiency at the customer’s own expense or incurred extraordinary costs
on those measures and the customer did not and will not receive reimbursement
for those measures from the entity designated by the board under this section
who pays an average annual energy efficiency charge of at least $5,000.00
may apply to the board to self‑administer energy efficiency through the
use of an energy savings account which shall contain a percentage of the
customer’s energy efficiency charge payments as determined by the board. The
remaining portion of the charge shall be used for system‑wide energy
benefits. The board shall establish criteria for approval of these
(5) Effective January 1, 2009, an energy efficiency utility shall
have the same unrestricted term of appointment and process for termination of
appointment as is most common for electric and gas utilities in the state.
(1) Ensure that all retail consumers, regardless of retail electricity or,
gas, or heating or process fuel provider, will have an opportunity to
participate in and benefit from a comprehensive set of cost‑effective
energy efficiency programs and initiatives designed to overcome barriers to
(2) Require that continued or improved efficiencies be made in the
production, delivery, and use of energy efficiency services, including the
use of compensation mechanisms for any energy efficiency utility that are based
upon verified savings in energy usage and demand, and other performance targets
specified by the board. The linkage between compensation and verified savings
in energy usage and demand (and other performance targets) shall be reviewed
and adjusted not less than triennially by the board.
(3) Build on the energy efficiency expertise and capabilities that have
developed or may develop in the state.
(4) Promote program initiatives and market strategies that address the
needs of persons or businesses facing the most significant barriers to
(5) Promote coordinated program delivery, including coordination with
low income weatherization programs, other efficiency programs, and utility
(6) Consider innovative approaches to delivering energy efficiency,
including strategies to encourage third party financing and customer
contributions to the cost of efficiency measures.
(7) Provide a reasonably stable multiyear budget and planning cycle and
in order to promote program improvement, program stability, enhanced
access to capital and personnel, improved integration of program designs with
the budgets of regulated companies providing energy services, and
maturation of programs and delivery resources. (8) Approve programs, measures, and delivery mechanisms that reasonably
reflect current and projected market conditions, technological options, and
(9) Provide for delivery of these programs as rapidly as possible,
taking into consideration the need for these services, and cost‑effective
(10) Provide for the independent evaluation of programs delivered under
subsection (d) of this section and those delivered under section 203a of
(11) Require that any entity approved appointed by the
board under subsection (d) of this section deliver board‑approved
programs in an effective, efficient, timely, and competent manner and meet
standards that are consistent with those in section 218c of this title, the
board’s orders in public service board docket 5270, and any relevant board
orders in subsequent energy efficiency proceedings.
(12) Require verification, on or before January 1, 2003, and every three
years thereafter, by an independent auditor of the reported energy and capacity
savings and cost‑effectiveness of programs delivered by any entity
appointed by the board to deliver energy efficiency programs under subdivision
(d)(2) of this section and under section 203a of this title.
(13) Ensure that any energy efficiency program approved by the board
shall be reasonable and cost‑effective.
(14) Consider the impact on retail electric rates and bills of
programs delivered under subsection (d) of this section and the impact on
fuel prices and bills of programs delivered under section 203a of this title.
(15) Ensure that the energy efficiency utility promotes strategies
that shall be designed to make continuous progress by promoting all forms of
energy end‑use efficiency and comprehensive sustainable building design. The program may utilize performance‑based compensation. The program
administrator may secure and administer revenue from other sources.
(f) Appointment of, oversight of, and revenue determinations for such
an energy efficiency utility shall fall within the regulatory powers and
jurisdiction of the board and, as is the case regarding the regulation of the
revenues, terms, and conditions of service and compensation of gas and electric
utilities, shall not be considered a contractual activity of the state.
(g) No later than January 1, 2009, consistent with the provisions of
subsections (d), (e), and (f) of this section, the board shall adopt a revised
structure for an efficiency utility in order to:
(1) establish processes for the appointment and revocation of appointment to serve as the energy efficiency utility similar to those in
effect for regulated utilities in Vermont;
(2) provide for regulatory oversight by the board and the department
of public service that is appropriate to the structure and purpose of the
expanded energy efficiency utility;
(3) base some of the expanded energy efficiency utility’s
compensation on verified savings in energy usage and demand and on other
performance targets specified by the board and consistent with the provisions
of section 202a of this title;
(4) clarify the relationship between the energy efficiency utility
and the City of Burlington Electric Department and Vermont Gas Systems, Inc.,
or any successors in interest, under which the city and the Vermont Gas
Systems, Inc., or any successors in interest, may continue to provide some or
all energy efficiency services in their respective service territories if
(5) continue the delivery of electric efficiency programs consistent
with the relevant provisions of subsection (e) of this section;
(6) expand the energy efficiency utility’s responsibilities to
include thermal efficiency and the development of comprehensive building
efficiency strategies to promote all forms of energy end‑use efficiency
and comprehensive sustainable building design; (7) provide for appropriate notice to customers on means to obtain
information about energy efficiency programs approved under this section; (8) determine what, if any, regulatory authority over fuel dealers
that the board or department of public service, or both, may require in order
to implement the expansion of the energy efficiency utility’s responsibilities set
forth in this section and section 203a of this title; and (9) permit the energy efficiency utility independently to report and
recommend to the board, the general assembly, and the public measures and
policies intended to achieve the purposes of section 202a of this title, and,
more generally, the purposes of this title. (h) The public service board may prescribe, by rule or order,
standards for the labeling of electricity delivered or intended for delivery to
ultimate consumers as to price, terms, sources and objective environmental
impacts, along with such procedures as it deems necessary for verification of
information contained in such labels. The public service board may prescribe,
by rule or by order, standards and criteria for the substantiation of such
labeling or of any claims regarding the price, terms, sources and environmental
impacts of electricity delivered or intended for delivery to ultimate consumers
in Vermont, along with enforcement procedures and penalties. When establishing
standards for the labeling of electricity, the board shall weigh the cost, as
well as the benefits, of compliance with such standards. With respect to
companies distributing electricity to ultimate consumers, the board may order
disclosure and publication, not to occur more than once each year, of any
labeling required pursuant to the standards established by this subsection.
Standards established under this subsection may include provisions for:
Sec. 33. 30
V.S.A. § 218c(b) is amended to read:
(b) Each regulated electric or gas company shall prepare and implement a
least cost integrated plan for the provision of energy services to its Vermont customers. In preparing the efficiency portion of an integrated plan, a
regulated company shall consult with any entity appointed by the board to
deliver energy efficiency services under subdivision 209(d)(2) of this title or
under section 203a of this title. Proposed plans shall be submitted to the
department of public service and the public service board. The board, after
notice and opportunity for hearing, may approve a company’s least cost
integrated plan if it determines that the company’s plan complies with the
requirements of subdivision (a)(1) of this section.
Sec. 34. FORWARD CAPACITY MARKET REVENUES; ENERGY EFFICIENCY UTILITY
Net revenues above costs associated with payments
from the New England Independent System Operator (ISO‑NE) for capacity
savings resulting from the activities of the energy efficiency utility
designated under 30 V.S.A. § 209(d)(3) shall be used to further the
ability to undertake cost‑effective energy efficiency activities that
will reduce Vermont energy use and greenhouse gas emissions. The priority for
use of these funds shall be to develop, support, and implement mechanisms
designed to provide positive cash flow financing for energy efficiency
investments. These investments shall be supervised by the public service
board. Beginning January 1, 2009, these funds shall be deposited into the
non‑electric energy efficiency fund established under 30 V.S.A.
§ 203a(b). * * * Low Income Weatherization * * *
Sec. 35. 33
V.S.A. § 2501(d)–(i) are added to read:
(d) This fund shall be used solely for the purpose of funding
weatherization services to low income Vermonters. Borrowing from the fund to
provide cash flow assistance to LIHEAP, or enhancement of the LIHEAP program if
unmet need is determined to be critical, may be authorized by the general
assembly if it is determined that such borrowing will not affect cash flow to
the weatherization contractors. Provisions for repayment of borrowed funds
must be made by the end of the fiscal year in which they were borrowed.
(e) A full annual accounting of the revenues and expenditures of the
weatherization trust fund will be provided by the agency of administration to
the house and senate committees on appropriations and on natural resources and
(f) The low income weatherization program will be guided by a five‑year
plan that is drafted with the specific purpose of improving continuously the
comfort, safety, and affordability in low income housing and to reduce fuel use
and greenhouse gas generation in that housing. The plan shall describe a five‑year
strategy, with a three‑year detailed work plan. Each year, the strategy
and the work plan shall be updated by one year. The initial plan and
subsequent updates will be developed by a weatherization oversight committee,
working cooperatively with the office of economic opportunity. The weatherization
oversight committee will be composed of: three representatives, including two
representatives of weatherization contractors and one director of a community
action program appointed by the Vermont community action directors association;
a representative appointed by the energy efficiency utility provided for in 30
V.S.A. § 209; a low income representative appointed by the Vermont low income
advocacy council; a representative appointed by the Vermont housing finance
agency; a representative of the department of public service; a representative
of a local or regional nonprofit land trust that develops affordable housing
appointed by the housing and conservation board; a representative from the
office of home heating assistance; a member of the Vermont house of
representatives, appointed by the speaker of the house; a member of the senate,
appointed by the committee on committees of the senate; a representative of
renewable energy installers, to be appointed by renewable energy Vermont; a
representative with expertise in climate change reduction appointed by the
joint energy committee; a representative of the workforce development council;
and a representative of the office of economic opportunity. The office of
economic opportunity shall provide support and full drafting assistance to the
weatherization oversight committee in the production of this plan and required
updates. (g) The initial plan shall be completed and provided to the general
assembly by December 20, 2007. The plan shall include the following:
(1) A five‑year strategy to ensure stable financing and
capacity‑building in the regional weatherization programs, including a
plan for ramp‑up of services consistent with sound management practices.
(2) A full examination of the effect of the federal Department of
Energy rules guiding the federal portion of weatherization funds that now also
guide the use of state funds, and steps that could be taken with the state
funds to expand the number of units served, the comprehensiveness of services
offered, and the greenhouse gas reduction effect of the program. This will
include, where appropriate, the potential for revisions in eligibility, both
statewide and by region.
(3) A comprehensive strategy to use the weatherization program to
reduce the rapidly increasing annual requirements for LIHEAP funds.
(4) A full discussion of efficiencies and improved services to be
gained in continuing coordination with Efficiency Vermont, with energy
efficiency programs of the Burlington electric department and Vermont Gas
Systems, Inc., and any successors in interest, and with any other partnerships
that could improve the efficiency and effectiveness of the program.
(5) Full consideration of strategies and documentation that may be
required to secure any greenhouse gas cap‑and‑trade revenues for
furtherance of the program.
(6) Strategies for appropriate use of renewable energy technologies
to secure long‑term affordability for low income households.
(7) Financing strategies that might leverage other funds to increase
efficiency and renewable energy investment in low income housing.
(8) Estimation of job training requirements to implement the plan,
how they may be met, and the role of weatherization programs in providing
training for their own programs and for the expanded efficiency utility program
(9) A comprehensive plan for evaluation of the program, documentation
of savings and other benefits, and regular reporting to the general assembly.
(h) On or before January 30 of each year, the office of economic
opportunity shall make a report to the house and senate committees on
appropriations and on natural resources and energy utilizing existing resources
within state government available in the office of economic opportunity’s
weatherization data management system that compiles performance data available
on households weatherized in the past year to include: (1) number of households weatherized; (2) average program expenditure per household for energy efficiency; (3) average percent energy savings;
(7) gallons of oil saved related to equivalent number of homes
heated; (8) projected number of households to be weatherized in the current
program year; and (9) projected program expenditures for the current program year
ending March 31. (i) The office of economic opportunity may implement administrative
changes to the operation of the low income weatherization program that are
within its authority to make, prior to submitting the plan. All such changes
will be described in the plan.
* * Energy Planning * * *
Sec. 36. 30 V.S.A. § 202 is amended to read:
(a) The department of public service, through the director for regulated
utility planning, shall constitute the responsible utility planning agency of
the state for the purpose of obtaining for all consumers in the state proper
utility service at minimum cost under efficient and economical management
consistent with other public policy of the state. The director shall be
responsible for the provision of plans for meeting emerging trends related to
electrical energy demand, supply, safety and, conservation,
environmental impacts, and continuing reductions in the generation of
greenhouse gases in the production or use of energy.
(b) The department, through the director, shall prepare an electrical
energy plan for the state. The plan shall be for a 20‑year period and
shall serve as a basis for state electrical energy policy. The electric energy
plan shall be based on the principles of “least cost integrated planning” set
out in and developed under section 218c of this title. The plan shall include
(1) an overview, looking twenty 20 years ahead, of
statewide growth and development as they relate to future requirements for
electrical energy, including patterns of urban expansion, statewide and service
area economic growth, shifts in transportation modes, modifications in housing
types and design, conservation, environmental impacts, the increasing global
importance of continual reductions in the generation of greenhouse gases,
and other trends and factors which, as determined by the director, will
significantly affect state electrical energy policy and programs;
(2) an assessment of all energy resources available to the state for
electrical generation or to supply electrical power, including among others,
fossil fuels, nuclear, hydro‑electric, biomass, wind, fuel cells, and
solar energy and strategies for minimizing the economic and environmental costs
of energy supply, including the production of pollutants and greenhouse
gases, by means of efficiency and emission improvements, fuel shifting, and
other appropriate means;
(3) estimates of the projected level of electrical energy demand, the
projected level of pollution, and the projected level of greenhouse gases
generated as a byproduct of the generation of electrical energy;
(4) a detailed exposition, including capital requirements and the
estimated cost to consumers, of how such demand shall be met and how the
generation of pollutants, including greenhouse gases, may be continually
reduced, based on the assumptions made in subdivision (1) of this
subsection and the policies set out in subsection (c) of this section; and
(5) specific strategies for reducing electric rates and for reducing
the generation of pollution including greenhouse gases to the greatest
extent possible in Vermont over the most immediate five‑year period, for
the next succeeding five‑year period, and long‑term sustainable
strategies for achieving and maintaining the lowest possible electric rates and
generation of pollution including greenhouse gases over the full 20‑year
planning horizon consistent with the goal of maintaining a financially stable
electric utility industry in Vermont.
(c) In developing the plan, the department shall take into account the
protection of public health and safety; preservation of environmental quality;
the potential for reduction of rates paid by all retail electricity customers;
the potential for reduction of electrical demand through conservation,
including alternative utility rate structures; use of load management
technologies; efficiency of electrical usage; utilization of waste heat from
generation; and utility assistance to consumers in energy conservation. The
department shall place an emphasis upon continuing reductions in the generation
of pollution, including greenhouse gases.
(J) an entity designated to meet the public’s need for energy efficiency
services under subdivision 218c(a)(2) of this title or designated under
section 203a of this title;
(2) To the extent necessary, include in the plan surveys to determine
needed and desirable plant improvements and extensions and coordination between
utility systems, joint construction of facilities by two or more utilities,
methods of operations, and any change that will produce better service or,
reduce costs, or reduce pollution, including the generation of greenhouse
gases. To this end, the director may require the submission of data by
each company subject to supervision, of its anticipated electrical demand,
including load fluctuation, supplies, costs, the generation of pollution
including greenhouse gases, and its plan to meet that demand and reduce
that pollution including greenhouse gas emissions, together with such other
information as the director deems desirable.
(3) Work in conjunction with the energy efficiency utility designated
under subsection 209(d) of this title or under section 203a of this title to
develop 20‑year projections for efficiency programs administered by that
utility and to incorporate those projections into the state electrical energy
plan. *
(f) After adoption by the department of a final plan, any company
seeking board authority to make investments, to finance, to site or construct a
generation or transmission facility or to purchase electricity or rights to
future electricity, shall notify the department of the proposed action and
request a determination by the department whether the proposed action is
consistent with the plan. In its determination whether to permit the proposed
action, the board shall consider the department’s determination of its
consistency with the plan along with all other factors required by law or
relevant to the board’s decision on the proposed action. If the proposed
action is inconsistent with the plan, the board may nevertheless authorize the
proposed action if it finds that there is good cause to do so. To the
extent that the inconsistency entails an excessive generation of greenhouse
gases, the board may authorize the proposed action only if it finds that there
is compelling reason to do so. The department shall be a party to any
proceeding on the proposed action, except that this section shall not be
construed to require a hearing if not otherwise required by law.
Sec. 37. 30 V.S.A. § 202a is amended to read:
(1) To assure, to the greatest extent practicable, that Vermont can meet
its energy service needs in a manner that is adequate, reliable, secure,
and sustainable; that assures affordability and encourages the state’s economic
vitality, continuing and substantial reductions in the generation of
pollution including greenhouse gases, the efficient use of energy resources
and cost effective cost‑effective demand side management;
and that is environmentally sound.
(2) To identify and evaluate on an ongoing basis, resources that will
meet Vermont’s energy service needs in accordance with the principles of least
cost integrated planning; including efficiency, conservation and load
management alternatives, wise use of renewable resources, continuing and
substantial reductions in the generation of pollution including greenhouse
gases, and environmentally sound energy supply.
Sec. 38. 30 V.S.A. § 202b is amended to read:
§ 202b. STATE
COMPREHENSIVE ENERGY PLAN (a) The department of public service, in conjunction with other state
agencies designated by the governor, shall prepare a comprehensive state energy
plan covering at least a 20‑year period. The plan shall seek to implement
the state energy policy set forth in section 202a of this title. The plan
(1) A comprehensive analysis and projections regarding the use, cost,
supply, and environmental effects of all forms of energy resources used
within Vermont and regarding all pollution including greenhouse gases
generated within the state, including the state’s progress in meeting
greenhouse gas reduction goals established in 10 V.S.A. § 578.
(2) Recommendations for state implementation actions, regulation, legislation,
and other public and private action to carry out the comprehensive energy plan.
Sec. 39. USE OF BIODIESEL IN STATE OFFICE BUILDINGS, STATE GARAGES, AND
(1) “Biodiesel blend” means a blend of biodiesel
fuel and petroleum diesel fuel or petroleum heating fuel that contains at least
two percent biodiesel fuel by volume. (2) “Biodiesel fuel” means a renewable,
biodegradable, mono alkyl ester combustible liquid fuel derived from vegetable
oil or animal fat which meets the American Society for Testing and Materials
(ASTM) specification D6751‑02 for Biodiesel Fuel (B100) Blend Stock for
Distillate Fuel.
(b) On or before January 15, 2008, the department
of buildings and general services, department of public service, and agency of
transportation jointly shall submit a report to the house and senate committees
on institutions, the house and senate committees on natural resources and
energy, the house and senate committees on transportation, the house and senate
committees on agriculture, the house committee on commerce, the house committee
on ways and means, and the senate committee on finance with recommendations on
increasing the use of biodiesel blends in state office buildings, state
garages, and in the state transportation fleet. (1) The portion of the report prepared by the
department of buildings and general services shall contain:
(A) A summary of the current use of biodiesel
blends in state office buildings.
(B) Recommendations on how to increase the use of
biodiesel blends in all state office buildings, wherever feasible, to at least
five percent biodiesel (B5) by December 31, 2008, and to at least 10 percent
biodiesel (B10) by 2012.
(C) A summary of any obstacles to increasing
biodiesel use in state buildings.
(D) A proposed work plan to increase biodiesel
(2) The portion of the report prepared by the
department of public service shall contain:
(A) A summary of the biodiesel fuel production
capacity, storage facilities, and distribution facilities currently available
(B) Recommendations for increasing biodiesel fuel
production, storage facilities, and distribution facilities.
(C) A summary of current information on the
performance of biodiesel blends for use as heating fuel and as a motor vehicle
(D) A summary of the national and regional
quality assurance and quality control measures in use for blending biodiesel
(E) A proposed work plan to increase biodiesel
(3) The portion of the report prepared by the
agency of transportation shall contain:
blends in state garages and the state transportation fleet.
biodiesel blends in state garages and in the state transportation fleet,
wherever feasible, to at least five percent biodiesel (B5) by December 31,
2008, and to at least 10 percent biodiesel (B10) by 2012.
biodiesel use in state garages and the state transportation fleet.
(c) The department of public service, with
representatives of the department of buildings and general services and the
agency of transportation present, shall conduct at least one public hearing to
review the draft report and to solicit comments prior to finalizing the report.
* * Energy Efficiency Mortgages * * *
Sec. 40. ENERGY EFFICIENCY MORTGAGES
On or before January 15, 2008, the Vermont housing finance agency and
the Vermont economic development authority, respectively, shall report to the
house and senate committees on natural resources and energy, the house
committee on commerce, and the senate committee on finance regarding the
feasibility of establishing programs to support energy efficiency residential
and commercial building mortgages of up to 15 percent of the appraised value of
a dwelling or commercial building for energy saving improvements,
weatherization, or energy efficiency for which the monthly mortgage or loan
payment does not exceed the likely reduction in utility and heating costs for
the dwelling or commercial building.
Sec. 41. 10
V.S.A. § 6025(f) is added to read:
(f) The land use panel, in consultation with the efficiency utility
established under 30 V.S.A. § 209(d) or § 203a shall adopt rules to assure that the
requirements of subdivision 6086(a)(9)(F) of this title are in concert with the
evolution of land use design and planning concepts that occurs in response to
global climate change. Other factors to be considered by the land
use panel shall include the potential for solar orientation of buildings and increases
in fuel prices that shorten lifecycle payback periods for energy efficiency
measures. These rules shall thereby assure the identification and
implementation of the best available technology for the efficient use or
recovery of energy. Rules adopted under this subsection shall complement residential
and commercial building energy standards accorded presumptive weight under this
chapter and shall specifically address areas not covered by those standards.
* Transportation * * *
Sec. 42. STUDY ON
INCENTIVES FOR EFFICIENT TRANSPORTATION
(a) There is established a study committee on incentives for efficient transportation. The committee shall include two members of the house appointed
by the speaker, one each from the committees on transportation and on natural resources and energy, and two members of the senate appointed by the committee on
committees, one each from the committees on transportation and on natural resources and energy. The first member appointed from the senate and the first member appointed from the house jointly shall convene the committee. In addition, the
governor, in consultation with the particular interest group in question, shall
appoint one representative each from the following: the automobile dealers
association; the truck and bus association; the Vermont association of planning
and development agencies; the business community; the environmental community;
the commission on climate change; and the public transit association. Other
members shall include the secretary of transportation, or a designee; the
commissioner of environmental conservation, or a designee; and the commissioner
of motor vehicles, or a designee. (b) By December 15, 2007, the committee shall report to the house and senate committees on natural resources and energy and on transportation, to the house committee on ways and means, and to the senate committee on finance
(1) Recommendations regarding the use of financial incentives
and disincentives that would encourage consumers to purchase vehicles that result in lesser amounts of emissions that contribute to climate change. (2) An analysis of the role of motor vehicles in creating and contributing to air contaminants in Vermont, and a determination of what portion of
overall statewide energy consumption is due to the use of motor vehicles. (3) Recommendations regarding policy options that would encourage and reward efficient transportation, including supporting alternative modes of transportation.
(5) Recommendations for public education regarding clean and
(6) An analysis of air quality within the state with regard to compliance with national ambient air quality standards, and the prospects of air quality within the state not remaining in attainment of these standards. This analysis should include the impact of nonattainment with the Clean Air Act standards
on the health of Vermonters, transportation investment and operations, and business development.
(7) Other recommendations regarding the efficient use of
transportation services. (c) The committee shall be entitled to administrative support
from the joint fiscal office and the legislative council.
(d) Legislative members shall be entitled to compensation as
provided in 2 V.S.A. § 406. The committee may meet up to four times.
* * Right to Conserve Energy * * *
Sec. 43. 9 V.S.A. chapter 138 is added to read:
The general assembly finds that prohibiting or
limiting the ability of people voluntarily to conserve energy is contrary to
the public interest. It is the purpose of this chapter to encourage energy
conservation by discouraging governmental regulations and practices and private
contracts which restrict the use of solar collectors, clotheslines, or other
energy saving devices, or that impede non‑motorized transportation on
state and town highways. § 4482. TRIENNIAL REPORT ON LIMITATIONS ON RIGHT TO CONSERVE ENERGY
By no later than January 1, 2008, and triennially
thereafter, the commissioner of housing and community affairs shall report to
the house and senate committees on natural resources and energy regarding the
extent to which private covenants within the state, in general, restrict the
use of solar collectors, clotheslines, or other energy saving devices, together
with any related recommendations on that issue.
Sec. 44. GREEN BUILDING, EFFICIENCY, AND RENEWABLE ENERGY WORKFORCE DEVELOPMENT PLAN
(a) Legislative Findings. Vermont must implement a comprehensive
green building, energy efficiency, and renewable energy workforce development
plan in order to fill the well‑paying jobs that will stay in Vermont and
are essential to meeting the needs of the renewable energy and energy
efficiency industry in order to meet our goals in regard to global climate
change. (b) Workforce development plan. The commissioner of labor shall
develop a green building, energy efficiency, and renewable energy workforce
development plan, in consultation with representatives to include the
following: the apprenticeship program; the building trades; the Vermont
workforce development council; the association of weatherization contractors;
Efficiency Vermont; Vermont Technical College; the association of general
contractors; associated industries of Vermont; Vermont businesses for social
responsibility; Vermont fuel dealers association; the coalition for workforce
solutions; Renewable Energy Vermont; Vermont small business development
centers; the association of vocational‑technical schools; the
association of adult service coordinators; Vermont green building network; and
the green institute for the advancement of sustainability. (c) Contents of plan. The plan developed under this section shall be
included in a written report that shall be presented on or before March 1, 2008
to the house committees on commerce and on ways and means and to the senate
committees on economic development, housing and general affairs and on
finance. The plan shall include:
(1) Comprehensive recommendations for recruiting and training
individuals for employment in the green building and renewable energy and
energy efficiency fields. The recommendations shall include goals for
secondary and postsecondary schools, other educational institutions, workforce
development organizations, and apprenticeship programs.
(2) Recommendations for expanding certification programs for green
builders and designers and installers of energy efficiency and renewable energy
(3) Recommendations for incorporating energy efficiency and renewable
energy training into apprenticeship and other training programs for
electricians, plumbers, and other skilled trades persons.
(4) Curricula for business development training and technical
assistance for businesses that include green builders, energy efficiency
designers and developers, and manufacturers of renewable energy and energy
(5) Enhanced training programs for green builders and designers and
weatherization professionals, including how to utilize state‑of‑the‑art
Sec. 45. REPORT ON ENERGY EFFICIENT BUILDING INCENTIVES; COMPREHENSIVE ENERGY PLAN
(a) The department of public service, in consultation with the
efficiency utility, shall work with representatives of the buildings trades,
architects, real estate sales professionals, bankers, nonprofit housing
providers, and other interested persons to develop recommendations to the general
assembly with regard to:
(1) How best to create incentives to encourage the economic
development likely to accompany the voluntary use of residential and commercial
building practices and material that are best suited to limit the amount of
energy consumed and greenhouse gases generated, without creating hardships
among the users of the building.
(2) How to assure or facilitate the installation of appropriate and
substantial weatherization, particularly with regard to multiple dwellings,
rental property, and other instances in which the owner may lack incentives to
weatherize because energy costs are paid by a tenant; including the
advisability of creating weatherization requirements that must be met at the
(3) How to encourage or require better disclosure of building energy
efficiency and weatherization leading up to the time of sale of the building.
(b) As part of the next update to the state comprehensive energy plan
required by 30 V.S.A. § 202b, the department of public service shall evaluate
and make specific recommendations on:
(1) How to increase the energy efficiency of Vermont’s built
environment, including strategies to increase the efficiency of new and
existing residential, commercial, and industrial buildings, including industrial
time of sale. (3) How to encourage or require better disclosure of building energy
This act shall take effect upon passage, except that Sec. 30, adding
30 V.S.A. § 203a, shall take effect upon March, 31, 2008 and except as
otherwise provided in Sec. 17b.
According to an analysis conducted by the Governor’s Climate Change
Commission, fuel use in homes and businesses in
2005 accounted for 30% of greenhouse gas emissions in Vermont, transportation accounted for 44% and electricity consumption accounted
These funds are currently designated to assist
agricultural energy mostly relating to biomass. Published by: