NEW ENGLAND STATE ENERGY LEGISLATION

Transcription

1 2015 NEW ENGLAND STATE ENERGY LEGISLATION

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3 2015 New England Energy Legislation Summary This summary of 2015 energy legislation in the six New England states is current as of June 16, 2015, and includes new laws impacting all six New England Power Pool (NEPOOL) sectors This summary also identifies energy bills that remain pending before a state s legislature As of the date of this summary, only one state Vermont has fully concluded its legislative session Connecticut concluded its regular session on June 3 and will hold a special session later in June to consider additional matters The four remaining states, Maine, Massachusetts, New Hampshire and Rhode Island, are still actively considering legislation and have not yet adjourned The current status of energy legislation in those states may differ from what appears below This summary will be posted to the NEPOOL website and will be revised as appropriate, with the posting of a final version once the 2015 legislative sessions have adjourned in all six states Please let us know if you have any questions about 2015 legislative developments, and we will work to get you answers You can refer questions to any member of the NEPOOL legal team listed at the end of this summary TABLE OF CONTENTS CONNECTICUT 1 Public Act No Concerning Variable Electric Rates 5 2 Public Act No Concerning Affordable and Reliable Energy 5 3 Public Act No Concerning Shared Clean Energy Facilities 6 4 Public Act No MAINE Concerning the Encouragement of Local Economic Development and Access to Residential Renewable Energy 6 1 LD1263 Resolve to Create Sustainable Growth in Maine s Distributed Energy Sector that Uses Market Forces to Fairly Compensate Energy Producers 9

4 2 LD 1310, HP 888 Amend the Community-based Renewable Energy Program 9 MASSACHUSETTS 1 S1748 Requiring the Timely Adoption of Greenhouse Gas Emission Limits for the Year S S H H H H2919 Relative to Clean Energy Resources 10 Relative to a Microgrid Pilot Program 10 Relative to Net Metering, Community Shared Solar and Energy Storage 10 Relative to Net Metering 11 Relative to Consumer Choice of Green Energy 11 Relieving the Adverse Effects of Wind Energy 11 NEW HAMPSHIRE 1 Public Act No Establishing a Commission to Investigate Implementation of Decoupling for New Hampshire Utilities 12 2 Public Act No Establishing a Committee to Study Facilitating Private Investment in Energy Efficiency and Renewable Energy 12 3 SB221 Relative to Electric Rate Reduction Financing 12-2-

5 4 SB170 Requiring the Public Utilities Commission to Ensure Ratepayer Protections with Electric Power Suppliers and Extending the Time for the Site Evaluation Committee to Adopt Certain Rules 13 5 HB208 Relative to Allowance Sales Under the New Hampshire Regional Greenhouse Gas Initiative Program 13 6 HB543 Repealing the Electric Renewable Portfolio Standard 13 7 HB572 Relative to Taking Land by Eminent Domain for High Pressure Gas Pipelines and Relative to the Siting of High Pressure Gas Pipelines 13 8 HB614 Implementing Goals of the State 10-Year Energy Strategy, Modifying Uses of the Site Evaluation Committee Fund, Establishing Fees for Energy Facility Evaluation, and Relative to Public Information Sessions on Proposed Energy Siting 13 9 HB626-FN-A Authorizing Energy Infrastructure Development and Designating Energy Infrastructure Corridors 14 RHODE ISLAND 1 S S0814 Relating to Public Utilities and Carriers Public Utilities Commission 15 Relating to State Affairs and Government Rhode Island Commerce Corporation 15 3 H5591 Relating to Health and Safety Commission to Study Use of State Land as Incubator for Green Energy Technology 15 4 H5900 Making Appropriations For The Support Of The State For The Fiscal Year Ending June 30,

6 5 H5978 Relating to Public Utilities and Carriers Electric Supplier Consumer Bill of Rights 16 6 H5997 VERMONT 1 H 40 Relating to State Affairs and Government Solar Industry Economic Investment Act 16 Relating to Establishing a Renewable Energy Standard 17-4-

7 Connecticut The Connecticut legislature adjourned on June 3 Several new energy laws were passed as a result of the 2015 legislative session, including An Act Concerning Variable Electric Rates, which would prohibit the state s electric energy suppliers from entering into new variable rate contracts or automatically renewing variable rate contracts with residential customers Legislation was also passed creating a shared clean energy facility program, and another bill would expand the Connecticut Green Bank s residential solar investment program and create a solar home renewable energy credits (REC) program The Connecticut legislature will reconvene this summer for a special session to address a few remaining bills Although it is unlikely new energy bills will be considered during the special session, other bills that are considered may contain energy provisions The next annual session will begin on February 3, 2016 An Act Concerning Variable Electric Rates (Public Act No 15-90) This act prohibits electric suppliers from entering into a new residential customer contract for variable rates on or after October 1, 2015 The act also prohibits any supplier, on or after October 1, 2015, from automatically renewing a residential customer s contract when the customer would be charged variable rates under the renewed contract The act does not affect existing contracts for the remainder of the contract term, nor does it apply to industrial or commercial consumers The act also directs Connecticut s Public Utilities Regulatory Authority (PURA) to initiate a proceeding to develop recommendations regarding what type of rate structure is best for residential customers who are automatically switched to a variable rate contract at the expiration of their fixed rate contract with an electric supplier PURA is also directed to develop a recommendation on what rate increase would be just and reasonable when a customer transitions from a fixed rate contract to month-to-month rates Effective Date: Effective from passage Signed by Governor: Submitted to the governor for signature An Act Concerning Affordable and Reliable Energy (Public Act No ) This act authorizes the Department of Energy and Environmental Protection (DEEP), in coordination with other states in the ISO-NE region or on its own, to issue multiple Requests for Proposals (RFPs) for long-term contracts to acquire (1) natural gas transportation capacity, (2) liquefied natural gas, (3) liquefied natural gas storage, (4) natural gas storage, (5) Class I renewable energy sources of 20 MW or more and associated transmission, (6) passive demand response resources, (7) Class I renewable energy sources and Class III sources between 2 MW and 20 MW, and (8) verifiable large-scale hydropower and associated transmission DEEP may acquire energy storage systems up to 20 MW or Class II renewable energy sources and existing hydropower resources for the purpose of balancing Class I renewable energy sources The act authorizes DEEP to select any combination of proposals in the best interests of ratepayers to meet up to 375 Mmcf/d of natural gas capacity or the MW equivalent of non-natural gas resources up to 10 percent of the load distributed by the state s electric -5-

8 distribution companies (EDCs) The act includes factors the DEEP must consider in evaluating proposals, including reliability improvements, economic benefits to the state, fuel diversity, greenhouse gas emissions reductions and air quality goals, and a costbenefit analysis Finally, the act allows EDCs to seek cost recovery for the costs of entering into any long-term agreement selected by DEEP and approved by PURA Effective Date: Effective from passage Signed by Governor: Submitted to the governor for signature An Act Concerning Shared Clean Energy Facilities (Public Act No ) This act establishes a two-year shared clean energy facility pilot program The act defines shared clean energy facilities as Class I renewable energy sources that are served by an EDC, have a nameplate capacity of 4 MW or less and have at least two subscribers The act is designed to allow for the creation of solar power arrays to serve groups of households The act directs DEEP, by January 1, 2016, to develop and issue an RFP to develop shared clean energy facilities that: own or operate shared clean energy facilities to benefit subscribers (when subscribers are in-state retail end users that have contracted for subscription); or contract with third parties to build, own or operate shared clean energy facilities DEEP is directed to select a project or projects in the Eversource territory not to exceed 4 MW and a project or projects in the UI territory not to exceed 2 MW DEEP must also establish a billing credit for the facilities subscribers, as well as consumer protections for subscribers By January 1, 2018, DEEP must file a report with the Energy and Technology Committee that analyzes the pilot program s success, identifies and analyzes the success of similar programs in other states, and recommends whether a permanent program should be established and, if so, any necessary legislation Effective Date: October 1, 2015 Signed by Governor: Submitted to the governor for signature An Act Concerning the Encouragement of Local Economic Development and Access to Residential Renewable Energy (Public Act No ) The act expands the Connecticut Green Bank s residential solar investment program in several significant respects, including the creation of solar home renewable energy credits (SHRECs) and the expansion of resources that are eligible to become qualifying residential solar photovoltaic (PV) projects Residential Solar Investment Program The Connecticut Green Bank s residential solar investment program currently offers financial incentives for purchasing or leasing certain residential solar PV systems Those incentives are either performance-based incentives paid on a kwh basis for electricity produced or expected performance-based buydowns that are a one-time upfront payment based on the system s expected performance This act expands qualifying -6-

9 residential solar PV projects under the Program to include solar PV projects that receive funding from the Green Bank, are certified by PURA as Class I renewable energy sources, emit no pollutants, generate less than 20 kws, are on the customer side of a one- to four-family home s revenue meter, and serve as a utility s distribution system The act requires the Program to support the deployment of up to 300 MW of systems by the end of 2022 The Program will terminate at that time or when the Program reaches the 300 MW cap, whichever occurs first Incentives for more than 100 MW of new systems may not be approved between the date of the act s passage and April 1, 2016 Creation of Solar Home Renewable Energy Credits The act creates SHRECs, which are Class I renewable energy credits created for each MWh of electricity produced by qualifying residential solar PV systems that receive approved incentives from the Green Bank on or after January 1, 2015 The act directs the Green Bank to set the purchase price for SHRECs, within certain guidelines Master Purchase Agreement for SHRECs The act also requires the Green Bank, within 180 days after July 1, 2015, to negotiate and develop a 15-year master purchase agreement with each utility requiring the utility to purchase the Green Bank s SHRECs By January 1, 2016, the Green Bank and the EDCs must jointly file the agreement with PURA for approval The act does not specify the criteria PURA must use in evaluating these agreements Community Solar in Residential Solar Investment Program Incentives The act removes the current rule prohibiting customers that receive the Program s performance-based buydown from also receiving net metering credits The act directs the Green Bank to publish on its website a proposed schedule for offering Program incentives The incentives must be designed to meet customers reasonable payback expectations, and must provide the consumer with a competitive electricity price and include the cost of various factors, including financing the system, and the availability and value of other available incentives The Green Bank may now modify an incentive schedule if changes in federal or state law or the solar market would affect a typical residential solar PV system s expected return on investment by 20 percent or more The act lowers this threshold to 10 percent and requires that any such modification be approved by the DEEP Residential Solar Permitting The act requires each municipality, by January 1, 2016, to incorporate residential solar PV systems into its building permit application process or to supplement its application process with a residential solar PV system permit application -7-

10 Effective Date: Effective from passage except for the Residential Solar Permitting Section, which is effective October 1, 2015 Signed by Governor: Submitted to the governor for signature -8-

11 Maine The Maine legislature began its current session on December 3, 2014, and the session is scheduled to run until June 17, and will likely be extended until July 1 if additional action is needed on the budget and certain other bills To date, two energy laws have been passed and are awaiting action by the governor One bill would promote distributed energy by directing the Maine Public Utilities Commission (PUC) to develop an alternative to net energy billing, and the other would make changes to the renewable energy pilot program in Maine Resolve to Create Sustainable Growth in Maine s Distributed Energy Sector that Uses Market Forces to Fairly Compensate Energy Producers (LD1263) This bill would direct the PUC to develop an alternative to net energy billing through a stakeholder process The bill would also direct the PUC to submit a report to the Joint Standing Committee on Energy, Utilities and Technology by January 30, 2016, which would include an overview of the alternative proposal, areas in which stakeholders were unable to reach a consensus, technical specifications, rules or policies needed to carry out the program, a proposed timeline for implementation, any technical or legal barriers to implementation, and any other recommendations Effective Date: 90 days after adjournment Signed by Governor: Submitted to the governor for signature An Act to Amend the Community-based Renewable Energy Program (LD 1310, HP 888) This bill proposes changes to the community-based renewable energy pilot program instituted in Maine The bill would extend this program and would broaden eligibility, with the goals of further ensuring program participant viability, eliminating the incentive of renewable energy multipliers, and requiring the PUC periodically to institute a competitive bidding process for projects that would receive long-term contracts The bill does place certain limitations on the program, including: (1) providing that the PUC may not issue an order after December 31, 2015, directing utilities to enter into any long-term contracts under this program; (2) stipulating projects selected must become operational by December 31, 2018; and (3) requiring the PUC to review all certified projects that have not reached commercial operation, to determine whether they are likely to do so within a three-year period Projects that ultimately are determined not to be viable would maintain their certification, but any issued contracts would be revoked The PUC would have the authority to conduct an expedited RFP process to select additional projects if capacity is remaining Finally, the bill would prohibit a project from choosing the REC multiplier incentive, and would stipulate that operational projects that have selected the REC multiplier do not count toward the program s 50 MW cap on net generating capacity Effective Date: 90 days after adjournment Signed by Governor: Submitted to the governor for signature -9-

12 Massachusetts The Massachusetts legislature is in session year-round, and therefore the 2015 session remains underway, with the 2016 session scheduled to begin on January 7, 2016 Several energy bills have been proposed and are being considered by the Joint Committee on Telecommunications, Utilities and Energy These bills cover a broad spectrum of topics including developing a microgrid pilot program, increasing the amounts of solar energy sold to consumers by retail electricity suppliers and adjusting the rules surrounding the net metering cap in effect All the energy bills summarized below are still being considered by the legislature and have not yet passed An Act Requiring the Timely Adoption of Greenhouse Gas Emission Limits for the Year 2030 (S1748) This bill would require legislation be developed to facilitate the timely adoption of greenhouse gas emission limits for the year 2030 An Act Relative to Clean Energy Resources (S1757) This bill would require distribution companies to jointly solicit proposals from renewable energy developers for cost-effective long-term contracts (those contracts with a term of 10 to 20 years) The time period for such solicitation would be January 1, 2017, through December 31, 2020 Distribution companies are directed to propose a timetable and method for such solicitations The obligation to solicit and execute these long-term contracts would be separate and distinct from an electric distribution utility s requirement under the Renewable Portfolio Standard (RPS) statute in Massachusetts The bill notes distribution companies would not be required to enter into long-term contracts that would exceed 4 percent of the total energy demand from all distribution customers within the applicable service territory The bill would require, by October 1, 2015, distribution companies to jointly solicit from developers of clean energy, proposals to deliver an annual amount not to exceed 18,900,000 MWh via long-term contracts Clean energy under this bill is defined as a Class I RPS-eligible renewable energy generation as defined in the RPS requirements, or hydroelectric generation An Act Relative to a Microgrid Pilot Program (S1775) This bill would require the Massachusetts Department of Energy Resources (DOER) to establish a microgrid grant and loan pilot program, which would be funded through appropriation and/or in partnership with private parties Such loans would be to support the development of islandable clean distributed energy generation and/or storage at critical facilities such as hospitals and schools Applications for this loan program would be solicited through an RFP process An Act Relative to Net Metering, Community Shared Solar and Energy Storage (H2852) This bill would establish a Commonwealth Solar Program for all retail electricity suppliers selling to end users in the Commonwealth The program would be structured with the goal of having, by December 31, 2025, 20 percent of the retail electricity sold to end-use customers derived from solar electricity In support of this goal, the bill would raise the net metering cap for solar PV net metering facilities to -10-

13 1,600 MW The maximum amount of nameplate capacity for facilities eligible for net metering by a municipality or other governmental entity would be 10 MW Finally, the bill would direct the DOER to establish an energy storage program on or before January 1, 2016 An Act Relative to Net Metering (H2879) This bill would allow resources that otherwise meet net metering qualifications to avoid the cap allocation if such eligibility determination is obtained on or before December 31, 2016 An Act Relative to Consumer Choice of Green Energy (H2917) This bill would direct the DOER to establish a green electricity purchasing program, with rules requiring electric companies to provide retail customers an option to purchase electricity derived from renewable energy This green electricity purchasing program would be separate and distinct from the RPS requirements already in place in Massachusetts An Act Relieving the Adverse Effects of Wind Energy (H2919) This bill would establish a fund to provide relief from wind turbine projects that have caused detrimental health effects, loss of property value or other adverse impacts to those in the Commonwealth -11-

14 New Hampshire The New Hampshire legislature is scheduled to adjourn on July 1, 2015 The legislature has passed two energy bills that have now been signed into law One act establishes a commission to look into the possibility of decoupling for New Hampshire utilities, and the other establishes a committee to study encouraging private investment in renewable energy and energy efficiency A third energy bill regarding the issuance of rate reduction bonds was passed by the legislature and is awaiting signature by the governor In addition, several bills remain pending for consideration by the New Hampshire legislature relative to various energy issues An Act Establishing a Commission to Investigate Implementation of Decoupling for New Hampshire Utilities (Public Act No ) This act would establish a commission to investigate the possibility of decoupling for New Hampshire gas and electric utilities Under the act, the scope of the committee s review includes a review of other states policies regarding decoupling, a review of past dockets related to decoupling and a determination of whether decoupling would increase energy efficiency Members would include state agencies, utilities, the Business Industry Association of New Hampshire and a member of the public The first meeting of such commission would be held 45 days from the effective date of the act Effective Date: Effective from passage Signed by Governor: June 12, 2015 An Act Establishing a Committee to Study Facilitating Private Investment in Energy Efficiency and Renewable Energy (Public Act No ) This act establishes a committee to study how to encourage private investment in energy efficiency and renewable energy The committee identifies statutory changes necessary to facilitate private investment in energy efficiency and renewable energy The first meeting of such committee will be held 45 days from the effective date of the act Effective Date: Effective from passage Signed by Governor: June 2, 2015 An Act Relative to Electric Rate Reduction Financing (SB221) This bill would permit the New Hampshire Public Utilities Commission (PUC) to issue finance orders that authorize rate reduction bonds in accordance with a settlement proposal filed by Eversource and other parties to finalize divestiture and allow for securitization of stranded costs, or to otherwise approve divestiture (but under a different standard) Effective Date: Effective upon passage Signed by Governor: Submitted to the governor for signature -12-

15 An Act Requiring the Public Utilities Commission to Ensure Ratepayer Protections with Electric Power Suppliers and Extending the Time for the Site Evaluation Committee to Adopt Certain Rules (SB170) This bill would implement additional requirements for public utilities and electric power suppliers to ensure ratepayers are protected when switching between the utility and the electric power suppliers Specifically, the PUC would be required to develop a summary of terms and conditions that electric power suppliers would be required to include in electric generation service contracts for residential customers The bill would also extend to November 1, 2015, the time for the Site Evaluation Committee to adopt rules relative to criteria for the siting of energy facilities An Act Relative to Allowance Sales Under the New Hampshire Regional Greenhouse Gas Initiative Program (HB208) This bill originally sought to remove New Hampshire from the Regional Greenhouse Gas Initiative (RGGI) The House and Senate passed different versions changing how RGGI auction proceeds are rebated or invested in energy efficiency programs An Act Repealing the Electric Renewable Portfolio Standard (HB543) This act would repeal the New Hampshire RPS and references to the RPS in other statutes Under this bill, electric suppliers in New Hampshire would no longer be required to include specific percentages of renewable resources in their energy procurements There were several other RPS bills this year, and all were retained, tabled or rereferred The House Science, Technology and Energy Committee has been holding work sessions on another RPS bill (HB143), which would add large hydro to Class I Renewable Resources, and the Committee has had discussions on RPS generally An Act Relative to Taking Land by Eminent Domain for High Pressure Gas Pipelines and Relative to the Siting of High Pressure Gas Pipelines (HB572) The original bill sought to make significant changes to the use of the eminent domain law by gas pipelines The amended version passed by the Senate requires the Site Evaluation Committee to adopt rules on gas siting within 12 months The bill also states the Site Evaluation Committee shall consider intervention in [FERC] proceedings involving the siting of high pressure gas pipelines in order to protect the interest of the state of New Hampshire An Act Implementing Goals of the State 10-Year Energy Strategy, Modifying Uses of the Site Evaluation Committee Fund, Establishing Fees for Energy Facility Evaluation, and Relative to Public Information Sessions on Proposed Energy Siting (HB614) This bill began as an effort to implement certain recommendations from the 2014 State Energy Strategy; however, the Senate took the Site Evaluation Committee funding proposal from the budget trailer bill (HB2) and added it to this bill The current House position does not agree with the mechanism for funding the Site Evaluation Committee (through application fees) -13-

16 An Act Authorizing Energy Infrastructure Development and Designating Energy Infrastructure Corridors (HB 626-FN-A) In An act establishing a commission to study the feasibility of establishing energy infrastructure corridors within existing transportation rights of way and repealing a commission, PA , enacted in 2012, the New Hampshire legislature found it would be in the public interest to designate certain energy infrastructure corridors along, within and under state-owned/controlled transportation routes in order to build underground energy transmission lines In support of that legislative finding, this bill would support balanced economic growth, reduce or mitigate high energy prices, and contribute to a cleaner environment, while providing the state with market-based revenue from private energy transmission companies in return for use of such transmission lines through energy infrastructure corridors -14-

17 Rhode Island The Rhode Island legislature began its current session on January 6, 2015, and is expected to adjourn in late June Although no energy bills have been passed to date, several bills are making their way through the Rhode Island legislative process that would have impacts on the energy industry, including establishing a bill of rights for customers of competitive energy suppliers, providing loans for small businesses and grants for larger businesses to install solar panels, and providing tax exclusions on property purchased for the design, manufacture or assembly of certain energy efficiency systems The energy bills summarized below are still being considered by the legislature and have not yet passed An Act Relating to Public Utilities and Carriers Public Utilities Commission (S0409) This bill would grant the Rhode Island Public Utilities Commission authority to conduct a broader review in its determination of electric and gas utility rates of return by allowing consideration of all other utility profits and by capping certain performancebased profits An Act Relating to State Affairs and Government Rhode Island Commerce Corporation (S0814) This bill would allow the Rhode Island Commerce Corporation to establish a green product sales and use tax exclusions program to purchase property to be used to design, manufacture, produce, or assemble an eligible transportation or alternative energy source (including energy-efficiency products, components and systems) Manufacturers of alternative source and advanced transportation products would be eligible for this program, with alternative source products to include energy efficiency products, components or systems An Act Relating to Health and Safety Commission to Study Use of State Land as Incubator for Green Energy Technology (H5591) This bill creates a seven-member special legislative study commission with the sole purpose of studying and making recommendations on the use of state-owned land to assist in the incubation of private businesses involved in the development of new technology supporting the generation of green energy The newly established commission would be directed to report findings and recommendations to the House no later than April 5, 2016, and the commission would expire on June 5, 2016 An Act Making Appropriations for the Support of the State for the Fiscal Year Ending June 30, 2016 (H5900) One section of this appropriations bill would turn the Rhode Island clean water finance agency into the Rhode Island infrastructure bank, effective September 1, 2015 The infrastructure bank would be created to expand the financing authority of the former agency, and the bill would further create an efficient buildings fund within the infrastructure bank for the purpose of providing technical, administrative and financial assistance to local government units for energy efficient and renewable energy upgrades to public buildings and infrastructure The infrastructure -15-

18 bank would be in charge of reviewing and approving all applications for projects to be financed through the efficient buildings fund An Act Relating to Public Utilities and Carriers Electric Supplier Consumer Bill of Rights (H5978) This bill would direct the Division of Public Utilities to initiate a docket to establish a bill of rights for customers of competitive electric suppliers The customer bill of rights would need to (1) include information to be disclosed to customers, (2) be designed to allow customers to better compare pricing policies and charges among suppliers, and (3) have more transparent information about the rates, terms, and conditions charged by suppliers, as well as information about any additional fees and methods for contacting the supplier The bill of rights would also need to include rules and procedures regarding the sale and solicitation of electric-generation services to consumers by competitive suppliers An Act Relating to State Affairs and Government Solar Industry Economic Investment Act (H5997) This bill would establish a revolving fund for low-interest loans for small businesses to finance the installation of solar panels, and for grants to larger businesses (those with up to 500 employees) for the installation of solar panels The bill would also establish a solar energy production tax credit for companies engaged in solar energy research and development, or in manufacturing and sale of solar energy products, and meeting certain requirements -16-

19 Vermont The Vermont legislature adjourned on May 16 after passing legislation creating a renewable energy standard for the state s retail electricity providers that allows Vermont s providers to participate in the New England REC marketplace on the same terms as the other New England states This bill was signed into law by the governor on June 12 Next year s legislative session will begin on January 5, 2016 An Act Relating to Establishing a Renewable Energy Standard (H 40) This is the first renewable energy standard bill enacted in Vermont that allows the state to participate in the New England REC marketplace on the same terms as other states Beginning January 1, 2017, the act requires electric suppliers to own RECs or to provide renewable electricity equivalent to 55 percent of the supplier s total annual electricity sales This standard will increase by an additional 4 percent each third January 1 thereafter, until reaching a requirement of 75 percent on and after January 1, 2032 To encourage the use of distributed generation in the state, the act also creates the category of distributed renewable generation resources for renewable energy plants with a capacity of 5 MW or less that are directly connected to the distribution system of a retail electricity provider Beginning January 1, 2017, the act requires electric suppliers to own RECs from new distributed renewable generation equivalent to 1 percent of the supplier s total annual electricity sales This standard will increase by an additional 06 percent per year until reaching a requirement of 10 percent on and after January 1, 2032 This requirement is carved out within the total renewable requirement The act also establishes an energy transformation requirement for electric utilities to develop partnerships to reduce their customers use of fossil fuels by a specified amount each year, tied to retail electric sales The obligation rises from the equivalent of 2 percent of sales in 2017 to 12 percent of sales in 2032 The act lists potential energy transformation actions as examples: home weatherization or other thermal energy efficiency measures; air source or geothermal heat pumps; high efficiency heating systems; increased use of biofuels; biomass heating systems; support for transportation demand management strategies; support for electric vehicles or related infrastructure; and infrastructure for the storage of renewable energy on the electric grid Additional new distributed generation is also an eligible resource for the energy transformation tier The act also directs the Vermont Public Service Board to adopt the rules necessary to implement this renewable energy standard program The act also provides that electric suppliers may make alternative compliance payments to the Vermont Clean Energy Development Fund in lieu of satisfying the renewable energy standard requirements in a given year Effective Date: Effective from passage or as specified in the applicable provision Signed by Governor: June 12,

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21 NEPOOL Counsel & Administrative Team David Doot (860) or (202) Florence Flossie Davis (860) Paul Belval (860) Joe Fagan (202) Harold Blinderman (860) Pat Gerity (860) Eric Runge (617) Jennifer Galiette (860) Sebastian Lombardi (860) Kristin Sullivan (617) James Jamie Blackburn (202) Cynthia Cindy Jacobs (860)

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