The Vermont legislature has voted to create the state's first renewable energy standards for electric utilities. The bill, H.40, changes the way Vermont encourages the generation and use of renewably derived electricity.
Like most states, Vermont law has encouraged renewable energy development for over a decade. In 2005 the state legislature created the Sustainably Priced Energy Enterprise Development, or SPEED, program to promote
renewable energy development. Under SPEED, the state encouraged its 18 utilities to enter into
long-term contracts for power from renewable energy sources, with a goal that utilities source 20% of their supply from qualifying SPEED resources
by 2017. The SPEED program's goal has been to promote the development of in-state
energy sources which use renewable fuels to ensure
that to the greatest extent possible the economic benefits of these new
energy sources flow to the Vermont economy in general and to the rate
paying citizens of the state in particular.
But between recent controversy over possible "double counting" of renewable energy attributes produced and sold by Vermont utilities, and perennial interest in refining state energy policy, this year the Vermont legislature pursued H.40 as an attempt to fix Vermont's renewable energy programs. H.40 will replace the SPEED goals with a Renewable Energy Standard and Energy
Transformation, or RESET, program. The RESET program includes a renewable portfolio standard requiring that 55 percent
of a utility’s electricity come from renewables, including large-scale
hydro power, by 2017, increasing 4 percentage points every three years until reaching 75% by 2032.
The bill also gives utilities an entrance into financing thermal
efficiency for heating and cooling. It will require utilities to offer incentives and on-bill financing for
projects like weatherization and heat pumps. To monitor and protect against impacts to customer rates, H.40 requires annual reports starting in 2018 on the RESET program's impact on electric rates, including 10-year forward projections.
It also allows utilities to seek waivers if they can show that compliance would
increase electric rates.
Previous efforts to institute a mandatory renewable energy standard in Vermont were not successful, but this year versions of H.40 have now been approved by both chambers of the state legislature. The Vermont House of Representatives passed H.40 on March 10, and the Senate approved an amended version on May 15.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
Showing posts with label SPEED. Show all posts
Showing posts with label SPEED. Show all posts
Vermont considers renewable energy law
Thursday, January 12, 2012
The Vermont Legislature is considering a proposal to enact a renewable portfolio standard, a law requiring utilities to source a specified percentage of their electricity from eligible renewable resources. If enacted, Bill S-170 (72-page PDF) could change Vermont's energy landscape.
Today, Vermont is the only New England state not to have a statutory renewable portfolio standard, or RPS. Instead, Vermont's approach to renewable energy has focused on SPEED, or the Sustainably Priced Energy Enterprise Development Program. SPEED's goal is that by 2012, at least 10% of the state's 2005-era electric load be served by new sources of renewable energy, or 20% of total load by 2017. To further that goal, SPEED created incentives such as a feed-in tariff designed to encourage new renewable development. Unlike true RPS programs in other states, the Vermont program's targets are not strictly binding.
Bill S-170 would take Vermont away from the goal-based model and toward a firm renewable energy mandate. The bill would create a two-tiered RPS, with a "tier one" for projects coming into service during 2005-2012 and a "tier two" for projects coming online in 2013 and later. The bill would require utilities to source power from new renewable resources in each of these categories, plus additional power from existing renewable facilities. In 2013, utilities would have to source 40% of their power from existing renewable resources, plus 10% more from "tier one" new resources. Over time, the requirement would grow; by 2025, utilities would have to add in 40% from "tier two" resources, adding up to environmental attributes representing 90% of total annual retail sales.
The bill also proposes to keep a revised version of SPEED alive, as well as a requirement that Vermont energy consumption be net-zero of carbon emissions by 2025, and provisiosn for a climate change education campaign. S-170 bill has been assigned to a legislative committee for review.
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| Power lines run through a field near Colchester Pond, Vermont. |
Today, Vermont is the only New England state not to have a statutory renewable portfolio standard, or RPS. Instead, Vermont's approach to renewable energy has focused on SPEED, or the Sustainably Priced Energy Enterprise Development Program. SPEED's goal is that by 2012, at least 10% of the state's 2005-era electric load be served by new sources of renewable energy, or 20% of total load by 2017. To further that goal, SPEED created incentives such as a feed-in tariff designed to encourage new renewable development. Unlike true RPS programs in other states, the Vermont program's targets are not strictly binding.
Bill S-170 would take Vermont away from the goal-based model and toward a firm renewable energy mandate. The bill would create a two-tiered RPS, with a "tier one" for projects coming into service during 2005-2012 and a "tier two" for projects coming online in 2013 and later. The bill would require utilities to source power from new renewable resources in each of these categories, plus additional power from existing renewable facilities. In 2013, utilities would have to source 40% of their power from existing renewable resources, plus 10% more from "tier one" new resources. Over time, the requirement would grow; by 2025, utilities would have to add in 40% from "tier two" resources, adding up to environmental attributes representing 90% of total annual retail sales.
The bill also proposes to keep a revised version of SPEED alive, as well as a requirement that Vermont energy consumption be net-zero of carbon emissions by 2025, and provisiosn for a climate change education campaign. S-170 bill has been assigned to a legislative committee for review.
Vermont wind project contested
Monday, October 24, 2011
A wind energy project in northern Vermont is the focus of significant controversy. Utility Green Mountain Power is currently developing the Kingdom Community Wind project on Lowell Mountain near the town of Lowell in Vermont's Northeast Kingdom. The 63 MW project is the first large-scale generation facility proposed by one of Vermont's investor-owned regulated utilities since the Searsburg wind project was approved in 1996.
In May 2010, Green Mountain Power Corporation, Vermont Electric Cooperative, Inc and Vermont Electric Power Company, Inc. filed a petition with the Vermont Public Service Board seeking approval to build up to a 63MW wind generation facility, and to install or upgrade about 17 miles of transmission line and associated substations.
A year later, the Vermont Public Service Board issued its final order and certificate of public good approving the project (182 page PDF). In the order, the Board found that "the proposed project will promote the general good of the state". Among the factors supporting the Board's decision was the fact that the project would produce energy without greenhouse gas emissions, and would thus support the goals of the Regional Greenhouse Gas Initiative (RGGI). The Board also noted that the project would help the state meet its goals of promoting new renewable generation as required in Vermont's SPEED, or Sustainably Priced Energy Enterprise Development Program. SPEED requires that, by 2012, at least 10% of the state's electric load be served by new sources of renewable energy. The Board also noted economic development benefits from the project, including job creation and tax revenues as well as the benefits of providing the developing utilities a long-term source of stably priced power.
The project drew opposition from a variety of sources, including those who oppose mountaintop wind development generically as well as those opposing development of this particular site. Now, while Green Mountain Power is preparing the site for construction, a group of protesters has set up a camp near the ridgeline. Abutting landowners have also asked a court to delay blasting and other work, claiming that they own part of the land where the blasting will occur.
What will happen to the Lowell Mountain project? Green Mountain Power planned to complete the project by December 3, 2011. As the Burlington Free Press has noted, the company has argued that delay is costly, and that too much delay would be fatal: Green Mountain Power must have project up and running by December 31, 2012 to qualify for $48 million in federal tax credit that are part of the project's overall financing plan.
In May 2010, Green Mountain Power Corporation, Vermont Electric Cooperative, Inc and Vermont Electric Power Company, Inc. filed a petition with the Vermont Public Service Board seeking approval to build up to a 63MW wind generation facility, and to install or upgrade about 17 miles of transmission line and associated substations.
A year later, the Vermont Public Service Board issued its final order and certificate of public good approving the project (182 page PDF). In the order, the Board found that "the proposed project will promote the general good of the state". Among the factors supporting the Board's decision was the fact that the project would produce energy without greenhouse gas emissions, and would thus support the goals of the Regional Greenhouse Gas Initiative (RGGI). The Board also noted that the project would help the state meet its goals of promoting new renewable generation as required in Vermont's SPEED, or Sustainably Priced Energy Enterprise Development Program. SPEED requires that, by 2012, at least 10% of the state's electric load be served by new sources of renewable energy. The Board also noted economic development benefits from the project, including job creation and tax revenues as well as the benefits of providing the developing utilities a long-term source of stably priced power.
The project drew opposition from a variety of sources, including those who oppose mountaintop wind development generically as well as those opposing development of this particular site. Now, while Green Mountain Power is preparing the site for construction, a group of protesters has set up a camp near the ridgeline. Abutting landowners have also asked a court to delay blasting and other work, claiming that they own part of the land where the blasting will occur.
What will happen to the Lowell Mountain project? Green Mountain Power planned to complete the project by December 3, 2011. As the Burlington Free Press has noted, the company has argued that delay is costly, and that too much delay would be fatal: Green Mountain Power must have project up and running by December 31, 2012 to qualify for $48 million in federal tax credit that are part of the project's overall financing plan.
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