Vermont § 8015 - Vermont Clean Energy Development Fund

§ 8015. Vermont Clean Energy Development Fund

• (a) Creation of Fund. (1) There is established the Vermont Clean Energy Development Fund to consist of each
  of the following: (A) The proceeds due the State under the terms of the memorandum of understanding between
  the Department of Public Service and Entergy Nuclear VY and Entergy Nuclear Operations,
  Inc. that was entered under Public Service Board docket 6812, together with the proceeds
  due the State under the terms of any subsequent memoranda of understanding entered
  before July 1, 2005 between the Department of Public Service and Entergy Nuclear VY
  and Entergy Nuclear Operations, Inc. (B) Any other monies that may be appropriated to or deposited into the Fund. (2) Balances in the Fund shall be expended solely for the purposes set forth in this subchapter
  and shall not be used for the general obligations of government. All balances in the
  Fund at the end of any fiscal year shall be carried forward and remain part of the
  Fund. Interest earned by the Fund shall be deposited in the Fund. This Fund is established
  in the State Treasury pursuant to 32 V.S.A. chapter 7, subchapter 5. (b) Definitions. As used in this section, the following definitions shall apply: (1) “Clean energy resources” means electric power supply and demand-side resources, or
  thermal energy or geothermal resources, that are “combined heat and power facilities,”
  “cost-effective energy efficiency resources,” or “renewable energy” resources. (2) “Combined heat and power (CHP) facility” means a generator that sequentially produces
  both electric power and thermal energy from a single source or fuel. In order for
  a fossil fuel-based CHP system to participate in the clean energy program set out
  in this section, at least 20 percent of its fuel’s total recovered energy must be
  thermal and at least 13 percent must be electric, the design system efficiency (the
  sum of full load design thermal output and electric output divided by the heat input)
  must be at least 65 percent, and it must meet air quality standards established by
  the Agency of Natural Resources. (3) “Cost-effective energy efficiency” means those energy efficiency and conservation
  measures that would qualify as part of a utility’s least-cost integrated plan under
  section 218c of this title or that would be an eligible expenditure under subsection 209(d) of this title. (4) “Emerging energy-efficient technologies” means technologies that are both precommercial
  but near commercialization and that have already entered the market but have less
  than five percent of current market share; that use less energy than existing technologies
  and practices to produce the same product or otherwise conserve energy and resources,
  regardless of whether or not they are connected to the grid; and that have additional
  non-energy benefits such as reduced environmental impact, improved productivity and
  worker safety, or reduced capital costs. (5) “Renewable energy” has the meaning established under section 8002 of this title and shall include the following: solar photovoltaic and solar thermal energy; wind
  energy; geothermal heat pumps; farm, landfill, and sewer methane recovery; low emission,
  advanced biomass power, and combined heat and power technologies using biomass fuels
  such as wood, agricultural or food wastes, energy crops, and organic refuse-derived
  waste, but not municipal solid waste; advanced biomass heating technologies and technologies
  using biomass-derived fluid fuels such as biodiesel, bio-oil, and bio-gas. (6) “Energy storage” means a system that uses mechanical, chemical, or thermal processes
  to store energy for later use. (c) Purposes of Fund. The purposes of the Fund shall be to promote the development and deployment of cost-effective
  and environmentally sustainable electric power and thermal energy or geothermal resources
  for the long-term benefit of Vermont consumers, primarily with respect to renewable
  energy resources, and the use of combined heat and power technologies. The Fund also
  may be used to support natural gas and electric vehicles in accordance with subdivisions
  (d)(1)(K) and (L) of this section, respectively. The General Assembly expects and
  intends that the Public Utility Commission, Department of Public Service, and the
  State’s power and efficiency utilities will actively implement the authority granted
  in this title to acquire all reasonably available cost-effective energy efficiency
  resources for the benefit of Vermont ratepayers and the power system. (d) Expenditures authorized. (1) Projects for funding may include the following: (A) projects that will sell power in commercial quantities; (B) among those projects that will sell power in commercial quantities, funding priority
  will be given to those projects that commit to sell power to Vermont utilities on
  favorable terms; (C) projects to benefit publicly owned or leased buildings; (D) renewable energy projects on farms, which may include any or all costs incurred to
  upgrade to a three-phase line to serve a system on a farm; (E) small-scale renewable energy in Vermont residences, institutions, and businesses: (i) generally; and (ii) through the Small-scale Renewable Energy Incentive Program; (F) projects under the agricultural economic development special account established under
  6 V.S.A. § 4710(g) to harvest biomass, convert biomass to energy, or produce biofuel; (G) until December 31, 2008 only, super-efficient buildings; (H) projects to develop and use thermal or geothermal energy, regardless of whether they
  also involve the generation of electricity; (I) emerging energy-efficient technologies; (J) effective projects that are not likely to be established in the absence of funding
  under the program; (K) natural gas vehicles and associated fueling infrastructure if each such vehicle is
  dedicated only to natural gas fuel and, on a life cycle basis, the vehicle’s emissions
  will be lower than those of commercially available vehicles using other fossil fuel,
  and any such infrastructure will deliver gas without interruption of flow; (L) electric vehicles and associated charging stations; (M) energy storage projects that facilitate utilization of renewable energy resources. [Subdivision (d)(2) effective until June 30, 2027; see subdivision (d)(2) effective
  June 30, 2027 set out below.] (2) If during a particular year, the Commissioner of Public Service determines that there
  is a lack of high value projects eligible for funding, as identified in the five-year
  plan, or as otherwise identified, the Commissioner shall consult with the Clean Energy
  Development Board and shall consider transferring funds to the Energy Efficiency Fund
  established under the provisions of subsection 209(d) of this title. Such a transfer may take place only in response to an opportunity for a particularly
  cost-effective investment in energy efficiency, and only as a temporary supplement
  to funds collected under that subsection, not as replacement funding. [Subdivision (d)(2) effective June 30, 2027; see subdivision (d)(2) effective until
  June 30, 2027 set out above.] (2) If during a particular year, the Commissioner of Public Service determines that there
  is a lack of high value projects eligible for funding, as identified in the five-year
  plan, or as otherwise identified, the Commissioner shall consider transferring funds
  to the Energy Efficiency Fund established under the provisions of subsection 209(d) of this title. Such a transfer may take place only in response to an opportunity for a particularly
  cost-effective investment in energy efficiency, and only as a temporary supplement
  to funds collected under that subsection, not as replacement funding. (3) Notwithstanding any contrary provision of this section, the Clean Energy Development
  Fund shall use all of the monies from alternative compliance payments under sections
  8004 and 8005 of this title for projects that meet the definition of “energy transformation project” under section 8002 of this title and the eligibility criteria for those projects under section 8005 of this title. The Fund shall implement projects in the service territory of the retail electricity
  provider or providers making the alternative compliance payments used to support the
  projects and, in the case of a project delivered in more than one territory, shall
  prorate service delivery according to each provider’s contribution. A provider shall
  not count, toward its required amount under the energy transformation category of
  section 8005 of this title, support provided by the Fund for an energy transformation project. [Subsection (e) effective until June 30, 2027; see subsection (e) effective June 30,
  2027 set out below.] (e) Management of Fund. (1) This Fund shall be administered by the Department of Public Service to facilitate
  the development and implementation of clean energy resources. The Department is authorized
  to expend monies from the Clean Energy Development Fund in accordance with this section.
  The Commissioner of the Department shall make all decisions necessary to implement
  this section and administer the Fund except those decisions committed to the Clean
  Energy Development Board under this subsection. The Department shall ensure an open
  public process in the administration of the Fund for the purposes established in this
  subchapter. (2) During fiscal years after FY 2006, up to five percent of amounts appropriated to the
  Department of Public Service from the Fund may be used for administrative costs related
  to the Clean Energy Development Fund. (3) There is created the Clean Energy Development Board, which shall consist of seven
  persons appointed in accordance with subdivision (4) of this subsection. (A) The Clean Energy Development Board shall have decision-making and approval authority
  with respect to the plans, budget, and program designs described in subdivisions (7)(B)-(D)
  of this subsection (e). The Clean Energy Development Board shall function in an advisory
  capacity to the Commissioner on all other aspects of this section’s implementation. (B) During a Board member’s term and for a period of one year after the member leaves
  the Board, the Clean Energy Development Fund shall not make any award of funds to
  and shall confer no financial benefit on a company or corporation of which the member
  is an employee, officer, partner, proprietor, or Board member or of which the member
  owns more than 10 percent of the outstanding voting securities. This prohibition shall
  not apply to a financial benefit that is available to any person and is not awarded
  on a competitive basis or offered only to a limited number of persons. (4) The Commissioner of Public Service shall appoint three members of the Clean Energy
  Development Board, and the Chairs of the House Committee on Environment and Energy
  and the Senate Committee on Natural Resources and Energy each shall appoint two members
  of the Clean Energy Development Board. The terms of the members of the Clean Energy
  Development Board shall be four years, except that when appointments to this Board
  are made for the first time after May 25, 2011, each appointing authority shall appoint
  one member for a two-year term and the remaining members for four-year terms. When
  a vacancy occurs in the Board during the term of a member, the authority who appointed
  that member shall appoint a new member for the balance of the departing member’s term. (5) Except for those members of the Clean Energy Development Board otherwise regularly
  employed by the State, the compensation of the members shall be the same as that provided
  by 32 V.S.A. § 1010(a). (6) In performing its duties, the Clean Energy Development Board may utilize the legal
  and technical resources of the Department of Public Service. The Department of Public
  Service shall provide the Clean Energy Development Board with administrative services. (7) The Department shall perform each of the following: (A) On or before January 15 of each year, provide to the Senate Committees on Finance
  and on Natural Resources and Energy and the House Committees on Commerce and Economic
  Development and on Environment and Energy a report for the fiscal year ending the
  preceding June 30 detailing the activities undertaken, the revenues collected, and
  the expenditures made under this subchapter. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this
  subdivision. (B) Develop, and submit to the Clean Energy Development Board for review and approval,
  a five-year strategic plan and an annual program plan, both of which shall be developed
  with input from a public stakeholder process and shall be consistent with State energy
  planning principles. (C) Develop, and submit to the Clean Energy Development Board for review and approval,
  an annual operating budget. (D) Develop, and submit to the Clean Energy Development Board for review and approval,
  proposed program designs to facilitate clean energy market and project development
  (including use of financial assistance, investments, competitive solicitations, technical
  assistance, and other incentive programs and strategies). Prior to any approval of
  a new program or of a substantial modification to a previously approved program of
  the Clean Energy Development Fund, the Department of Public Service shall publish
  online the proposed program or modification, shall provide an opportunity for public
  comment of no less than 30 days, and shall provide to the Clean Energy Development
  Board copies of all comments received on the proposed program or modification. In
  this subdivision (D), “substantial modification” shall include a change to a program’s
  application criteria or application deadlines and shall include any change to a program
  if advance knowledge of the change could unfairly benefit one applicant over another
  applicant. For the purpose of 3 V.S.A. § 831(c) (initiating rulemaking on request), a new program or substantial modification of
  a previously approved program shall be treated as if it were an existing practice
  or procedure. (8) At least annually, the Clean Energy Development Board and the Commissioner or designee
  jointly shall hold a public meeting to review and discuss the status of the Fund,
  Fund projects, the performance of the Fund Manager, any reports, information, or inquiries
  submitted by the Fund Manager or the public, and any additional matters they deem
  necessary to fulfill their obligations under this section. [Subsection (e) effective June 30, 2027; see subsection (e) effective until June 30,
  2027 set out above.] (e) Management of Fund. (1) This Fund shall be administered by the Department of Public Service to facilitate
  the development and implementation of clean energy resources. The Department is authorized
  to expend monies from the Clean Energy Development Fund in accordance with this section.
  The Commissioner of the Department shall make all decisions necessary to implement
  this section and administer the Fund. The Department shall ensure an open public process
  in the administration of the Fund for the purposes established in this subchapter. (2) During fiscal years after FY 2006, up to five percent of amounts appropriated to the
  Department of Public Service from the Fund may be used for administrative costs related
  to the Clean Energy Development Fund. (3) The Department shall perform each of the following: (A) On or before January 15 of each year, provide to the Senate Committees on Finance
  and on Natural Resources and Energy and the House Committees on Commerce and Economic
  Development and on Environment and Energy a report for the fiscal year ending the
  preceding June 30 detailing the activities undertaken, the revenues collected, and
  the expenditures made under this subchapter. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this
  subdivision. (B) Develop a five-year strategic plan and an annual program plan, both of which shall
  be developed with input from a public stakeholder process and shall be consistent
  with State energy planning principles. (C) Develop an annual operating budget. (D) Develop proposed program designs to facilitate clean energy market and project development
  (including use of financial assistance, investments, competitive solicitations, technical
  assistance, and other incentive programs and strategies). Prior to any approval of
  a new program or of a substantial modification to a previously approved program of
  the Clean Energy Development Fund, the Department of Public Service shall publish
  online the proposed program or modification, shall provide an opportunity for public
  comment of no less than 30 days. For the purposes of this subdivision (D), “substantial
  modification” includes a change to a program’s application criteria or application
  deadlines and includes any change to a program if advance knowledge of the change
  could unfairly benefit one applicant over another applicant. For the purpose of 3 V.S.A. § 831(c) (initiating rulemaking on request), a new program or substantial modification of a
  previously approved program shall be treated as if it were an existing practice or
  procedure. (4) At least annually, the Commissioner or designee jointly shall hold a public meeting
  to review and discuss the status of the Fund; Fund projects; the performance of the
  Fund Manager; any reports, information, or inquiries submitted by the Fund Manager
  or the public; and any additional matters they deem necessary to fulfill the Commissioner’s
  obligations under this section. (f) Clean Energy Development Fund Manager. The Clean Energy Development Fund shall have a Fund Manager who shall be an employee
  of the Department of Public Service. [Subsection (g) effective until June 30, 2027; see subsection (g) effective June 30,
  2027 set out below.] (g) Bonds. The Commissioner of Public Service, in consultation with the Clean Energy Development
  Board, may explore use of the Fund to establish one or more loan-loss reserve funds
  to back issuance of bonds by the State Treasurer otherwise authorized by law, including
  Clean Renewable Energy Bonds, that support the purposes of the Fund. [Subsection (g) effective June 30, 2027; see subsection (g) effective until June 30,
  2027 set out above.] (g) Bonds. The Commissioner of Public Service may explore use of the Fund to establish one or
  more loan-loss reserve funds to back issuance of bonds by the State Treasurer otherwise
  authorized by law, including Clean Renewable Energy Bonds, that support the purposes
  of the Fund. [Subsection (h) effective until June 30, 2027; see subsection (h) effective June 30,
  2027 set out below.] (h) ARRA funds. All American Recovery and Reinvestment Act (ARRA) funds described in section 8016 of this title shall be disbursed, administered, and accounted for in a manner that ensures rapid
  deployment of the funds and is consistent with all applicable requirements of ARRA,
  including requirements for administration of funds received and for timeliness, energy
  savings, matching, transparency, and accountability. These funds shall be expended
  for the following categories listed in this subsection, provided that no single project
  directly or indirectly receives a grant in more than one of these categories. After
  consultation with the Clean Energy Development Board, the Commissioner of Public Service
  shall have discretion to use non-ARRA monies within the fund to support all or a portion
  of these categories and shall direct any ARRA monies for which non-ARRA monies have
  been substituted to the support of other eligible projects, programs, or activities
  under ARRA and this section. (1) The Vermont Small-scale Renewable Energy Incentive Program currently administered
  by the Renewable Energy Resource Center, for use in residential and business installations.
  These funds may be used by the Program for all forms of renewable energy as defined
  by section 8002 of this title, including biomass and geothermal heating. The disbursement to this Program shall
  seek to promote continuous funding for as long as funds are available. (2) Grant and loan programs for renewable energy resources, including thermal resources
  such as district biomass heating that may not involve the generation of electricity. (3) Grants and loans to thermal energy efficiency incentive programs, community-scale
  renewable energy financing programs, certification and training for renewable energy
  workers, promotion of local biomass and geothermal heating, and an anemometer loan
  program. (4) $2 million for a public-serving institution efficiency and renewable energy program
  that may include grants and loans and create a revolving loan fund. In this subsection,
  “public-serving institution” means government buildings and nonprofit public and private
  universities, colleges, and hospitals. In this program, awards shall be made through
  a competitive bid process. (5) $2 million to the Vermont Housing and Conservation Board (VHCB) to make grants and
  deferred loans to nonprofit organizations for weatherization and renewable energy
  activities allowed by federal law, including assistance for nonprofit owners and occupants
  of permanently affordable housing. (6) $2 million to the Vermont Telecommunications Authority (VTA) to make grants of no
  more than $10,000.00 per turbine for installation of small-scale wind turbines and
  associated towers on which telecommunications equipment is to be collocated and that
  are developed in association with the VTA. (7) $880,000.00 to the 11 regional planning commissions ($80,000.00 to each such commission)
  to conduct energy efficiency and energy conservation activities that are eligible
  under the EECBG program. (8) Concerning the funds authorized for use in subdivisions (4)-(7) of this subsection: (A) To the extent permissible under ARRA, up to five percent may be spent for administration
  of the funds received. (B) In the event that the Commissioner of Public Service determines that a recipient of
  such funds has insufficient eligible projects, programs, or activities to fully utilize
  the authorized funds, then after consultation with the Clean Energy Development Board,
  the Commissioner shall have discretion to reallocate the balance to other eligible
  projects, programs, or activities under this section. (9) The Commissioner of Public Service is authorized, to the extent allowable under ARRA,
  to utilize up to 10 percent of ARRA funds received for the purpose of administration.
  The Commissioner shall allocate a portion of the amount utilized for administration
  to retain permanent, temporary, or limited service positions or contractors and the
  remaining portion to the oversight of specific projects receiving ARRA funding pursuant
  to section 6524 of this title. [Subsection (h) effective June 30, 2027; see subsection (h) effective until June 30,
  2027 set out above.] (h) ARRA funds. All American Recovery and Reinvestment Act (ARRA) funds described in section 8016 of this title shall be disbursed, administered, and accounted for in a manner that ensures rapid
  deployment of the funds and is consistent with all applicable requirements of ARRA,
  including requirements for administration of funds received and for timeliness, energy
  savings, matching, transparency, and accountability. These funds shall be expended
  for the following categories listed in this subsection, provided that no single project
  directly or indirectly receives a grant in more than one of these categories. The
  Commissioner of Public Service shall have discretion to use non-ARRA monies within
  the fund to support all or a portion of these categories and shall direct any ARRA
  monies for which non-ARRA monies have been substituted to the support of other eligible
  projects, programs, or activities under ARRA and this section. (1) The Vermont Small Scale Renewable Energy Incentive Program currently administered
  by the Renewable Energy Resource Center, for use in residential and business installations.
  These funds may be used by the Program for all forms of renewable energy as defined
  by section 8002 of this title, including biomass and geothermal heating. The disbursement to this Program shall
  seek to promote continuous funding for as long as funds are available. (2) Grant and loan programs for renewable energy resources, including thermal resources
  such as district biomass heating that may not involve the generation of electricity. (3) Grants and loans to thermal energy efficiency incentive programs, community-scale
  renewable energy financing programs, certification and training for renewable energy
  workers, promotion of local biomass and geothermal heating, and an anemometer loan
  program. (4) $2 million for a public-serving institution efficiency and renewable energy program
  that may include grants and loans and create a revolving loan fund. As used in this
  subsection, “public-serving institution” means government buildings and nonprofit
  public and private universities, colleges, and hospitals. In this program, awards
  shall be made through a competitive bid process. (5) $2 million to the Vermont Housing and Conservation Board (VHCB) to make grants and
  deferred loans to nonprofit organizations for weatherization and renewable energy
  activities allowed by federal law, including assistance for nonprofit owners and occupants
  of permanently affordable housing. (6) [Repealed.] (7) $880,000.00 to the 11 regional planning commissions ($80,000.00 to each such commission)
  to conduct energy efficiency and energy conservation activities that are eligible
  under the EECBG program. (8) Concerning the funds authorized for use in subdivisions (4)-(7) of this subsection: (A) To the extent permissible under ARRA, up to five percent may be spent for administration
  of the funds received. (B) In the event that the Commissioner of Public Service determines that a recipient of
  such funds has insufficient eligible projects, programs, or activities to fully utilize
  the authorized funds, the Commissioner shall have discretion to reallocate the balance
  to other eligible projects, programs, or activities under this section. (9) The Commissioner of Public Service is authorized, to the extent allowable under ARRA,
  to utilize up to 10 percent of ARRA funds received for the purpose of administration.
  The Commissioner shall allocate a portion of the amount utilized for administration
  to retain permanent, temporary, or limited service positions or contractors and the
  remaining portion to the oversight of specific projects receiving ARRA funding pursuant
  to section 6524 of this title. [Subsection (i) effective until June 30, 2027; see subsection (i) effective June 30,
  2027 set out below.] (i) Rules. The Department and the Clean Energy Development Board each may adopt rules pursuant
  to 3 V.S.A. chapter 25 to carry out its functions under this section and shall consult with each other either
  before or during the rulemaking process. [Subsection (i) effective June 30, 2027; see subsection (i) effective until June 30,
  2027 set out above.] (i) Rules. The Department may adopt rules pursuant to 3 V.S.A. chapter 25 to carry out its functions under this section. (Added 2005, No. 74, § 2; amended 2005, No. 208 (Adj. Sess.), § 5; 2005, No. 215 (Adj. Sess.), § 280, eff. May 31, 2006; 2007, No. 65, § 94a; 2007, No. 92 (Adj. Sess.), § 7; 2009, No. 45, §§ 5, 9e, eff. May 27, 2009; 2009, No. 54, § 93, eff. June 1, 2009; 2009, No. 1 (Sp. Sess.), § E.235.3, eff. June 2, 2009; 2009, No. 2 (Sp. Sess.), § 4, eff. June 1, 2009; 2009, No. 3 (Sp. Sess.), § 13, eff. June 10, 2009; 2009, No. 67 (Adj. Sess.), § 68, eff. Feb. 25, 2010; 2009, No. 67 (Adj. Sess.), § 103; 2009, No. 159 (Adj. Sess.), § 18a; 2011, No. 47, § 20j, eff. July 9, 2011, except subdivs. (d)(3) and (4) and (e)(3) and (4) eff. May 25, 2011; 2013, No. 89, § 15; 2013, No. 95 (Adj. Sess.), § 82a, eff. Feb. 25, 2014; 2013, No. 142 (Adj. Sess.), § 53; 2015, No. 56, § 13; 2017, No. 53, § 23, eff. May 30, 2017; 2017, No. 113 (Adj. Sess.), § 175b; 2023, No. 53, § 137, eff. June 30, 2027.)