Mid-Session Energy Bill Update

Update on H.56 as passed by the House Natural Resources and Energy Committe - March 11, 2011

 

H.56, when introduced in January, had provisions that would have set Vermont on a forward-looking and ambitious track to develop in-state, renewable energy supplies. On March 11, the committee of jurisdiction - the House Natural Resources and Energy Committee - voted the bill out with most of the bolder provisions removed. In a 9-2 vote, the committee voted to advance a bill to the House Ways and Means Committee that includes:

 

•                An expansion to net metering. The provision in the bill raises the amount of net metering generation allowed from the current 2 percent cap to 4 percent of utilities' peak energy demands. It also raises the size cap on net metered systems from 250 kW to 500 kW. This is a key provision that will make the decentralized generation of homegrown energy in Vermont more viable.

 

•                A solar incentive or 'adder.' This provision provides an additional payment per kWh produced by solar net metered projects for energy generated above what is consumed by the customer.

 

•                A baseload biomass provision. This section of the bill requires all utilities to purchase power from the existing biomass electric plant (Ryegate) at a premium rate. NOTE: The bill at one time contained a provision that would have created a carve out for a new, large-scale (over 30 MW) biomass generation plant with no efficiency standards attached. VNRC joined other organizations in urging the committee not to support this provision so as to not  incentivize potentially inefficient projects. VNRC also advocated for waiting for the results of biomass and renewable portfolio studies underway to inform how the state supports or incentivizes larger-scale biomass projects.

 

•                A 'Clean Energy Support Charge' Lawmakers are looking for ways to fund the Clean Energy Development Fund, as this important fund is now largely capitalized by Vermont Yankee. If the plant is retired on schedule in 2012 (as many, including VNRC, hope and trust it will be) the CEDF will lack a needed funding stream. As passed out of the HNRE committee, the CEDF will be capitalized by a charge on every retail electric bill of $0.55 per month. While VNRC commends the Legislature for looking for a CEDF funding stream, this charge will be the same for residential, commercial and industrial customers, with no exemption for low-income customers. In short, as proposed, the 'Clean Energy Support Charge' is inequitable and inadequate. That's because a residential customer making $12,000 per year would be charged the same as a manufacturing customer, regardless of actual energy usage. In addition, the proposed charge would only raise an estimated $2.38 million per year, whereas the CEDF currently has a budget of $6 million per year.

 

•                Heating oils. The bill now requires all heating oil in Vermont have a sulfur content of 15 ppm or less by 2018. Heating oils also must contain at least 7% biodiesel by 2016.

 

It is likely that this bill will be taken up by the Ways and Means committee before being voted on by the House and passed to the Senate.