A bill that will mandate state renewable energy targets is set to arrive on the Senate floor in the final week of the legislative session.
The Senate Finance and Appropriation committees voted unanimously Monday to pass H.40. The legislation requires the state’s utilities to use more renewable energy beginning in 2017. The House passed the bill in March and has indicated it will support the Senate’s version.
Under the bill, utilities will be required to build wind, solar and other renewable energy projects. They will also be required to reduce customers’ fossil fuel use.
The Renewable Energy Standard, or RES, would replace the state’s current renewable energy incentive program, known as SPEED.
The bill creates a new system for how utilities account for renewable electricity through the sale of renewable energy credits, or RECs. Connecticut has indicated it will not purchase Vermont RECs past 2017 because, under SPEED, utilities could count the same credits toward state goals that they also sell to Connecticut utilities. If other states took a similar position, utilities in Vermont would face losing $50 million in revenue from REC sales, which would likely lead to a 6 percent statewide rate increase.
The Senate version of the bill removes a provision passed by the House that would cap the energy efficiency charge, which is used to pay for the state’s efficiency programs.
The Senate Natural Resources and Energy Committee intends to amend the bill with a provision that would set new statewide solar setback and local screening requirements. Renewable energy developers and towns described the siting provision as a compromise, even though towns, as represented by the Vermont League of Cities and Towns, maintain they still have little say over how energy projects are built. Local bylaws do not apply to energy permits.
The Senate Finance Committee added a provision that requires the Department of Public Service, which represents electric customers in utility matters, to report back to lawmakers on whether its public advocacy office is effective and independent.
Rep. Tony Klein, D-East Montpelier, chair of the House Committee on Natural Resources and Energy, said he supports a similar version of the bill. The Department of Public Service, which represents the Shumlin administration, also supports the legislation.
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