The Senate has passed H 446, An Act Relating to Renewable Energy and Energy Efficiency. H 446 creates standard offer rates to encourage the rapid development of renewable energy technologies. Rates are based on today s costs and as the technology progresses, rates will be decreased. The Vermont Public Service Board will review and reset the rates every two years. A controversial piece of the bill is that the Legislature is de facto setting electric rates, which has been the responsibility of the Public Service Board through the rate review process the PSB goes through with each utility.
The bill sets the rates as:
For a plant using methane derived from a landfill or an agricultural operation, $0.12 per kWh.
For a plant using wind power that has a plant capacity of 15kW or less, $0.20 per kWh.
For a plant using solar power, $0.30 per kWh.
Currently, new plants are limited in size to no larger than 2.2 megawatts and the total program is capped at 50 megawatts. The legislation requires the utilities to accept these contracts. It also contains provisions mandating the state's Public Service Board to set prices for these contracts based on generation costs for "rapid development," and not rate payer costs or least cost principles.
Implementing standard rates for renewable energy sources will jumpstart the development of renewable energy projects across Vermont, said Senator Peter Shumlin. This bill will expand the renewable energy industry in Vermont and create good paying jobs for Vermonters.
The bill also encourages the development of wind energy on state lands. Despite the fact that a number of state owned sites appropriate for wind energy have been identified, the Douglas Administration prohibits any wind energy from being developed on state lands. H 446 allows for the exploration, in conjunction with the Agency of Natural Resources, of wind energy on these state lands. The legislation directs the Agency of Natural Resources to review various proposals for wind on state lands and report their findings to the legislature in January, 2010.
As Vermont moves toward cleaner and more sustainable sources of energy, it is critical that wind be a part of the mix, said Senator Lyons, Chair of the Senate Natural Resources Committee. This bill calls for the Agency of Natural Resources to consider the development of wind on state owned land.
The comprehensive energy bill also includes provisions to reduce businesses energy efficiency costs. The legislation allows companies that have contributed at least $75,000 into the state s efficiency fund to institute self managed efficiency programs.
It is imperative during these tough economic times that we help Vermont businesses in every way we can, said Senator Shumlin. This bill will save many Vermont businesses money by allowing them to craft their own efficiency programs.
Sources: State Senate, Vermont Chamber of Commerce. May 5, 2008