H.446 – The Vermont Energy Act of 2009

 I’d like to put in a plug for H.446 and a request to my Vermont readers to act. H.446 is a groundbreaking piece of legislation that will promote the development of renewable energy in Vermont.

The core of the bill is what is called a feed-in tariff or standard offer for renewable electricity. What this means is that utilities will be required to pay a fixed contract price for wind, solar, biomass, and hydroelectric power. The Public Service Board will set that price as follows:

“(II) The board shall include a rate of return not less than the highest rate of return received by a Vermont investor-owned retail electric service provider under its board-approved rates as of the date a standard offer goes into effect.

(III) The board shall include such adjustment as the board determines to be necessary to ensure that the price provides sufficient incentive for the rapid development and commissioning of plants and does not exceed the amount needed to provide such an incentive.”

In other words, whatever the cost of solar electricity from the panels on your roof, the price you get must ensure that you will make as good a return as the big boys with their coal and nuclear plants. The prices will start out fairly juicy and go down over time as the technology gets cheaper. This will motivate people to put in renewables sooner and lock in good prices. It puts renewable energy, especially solar and small wind, in the “stupid not to do it” category of investments.

Germany was the leader in this, enacting a feed-in tariff back in 1991, but only for wind and hydro. That was expanded to all renewable sources in 2000. The German government wanted to get 12% of the country’s electricity from renewables by 2010. They already have hit 15%. Germany has become the number one country in the world for green energy investment and has created hundreds of thousands of jobs in the industry.

And the cost to ratepayers? In Vermont it will add about 20 cents to a $100 electric bill. Not a bad price for weaning us off polluting and unsustainable energy sources and jump-starting a job creating industry. In addition to the feed-in tariff, the bill has a number of other useful measures. Quoting from Renewable Energy Vermont’s legislative page:

“Key items in the bill include:

• a standard offer for renewable energy
• clarification that thermal energy fits within the purview of the CEDF
• regulatory incentives ensuring utilities can recover permitting costs for renewable energy
• requirement that ANR reconsider its policy prohibiting wind on State lands
• improvements to residential- and commercial-building standards
• pilot downtown-community renewable-energy projects in Montpelier and Randolph
• clean energy assessment districts that would allow towns, cities, and incorporated villages to use municipal bonds to finance residential renewable-energy or energy-efficiency projects
• limitations on the power of municipalities and deeds to prohibit residential installation of renewable-energy and energy-efficiency devices, such as solar panels, residential wind turbines, and clothes lines”

Of course, Governor Doorstop, er, Douglas, is expected to veto the bill. It passed the Vermont House and Senate by reasonable, but not veto-proof majorities. It is time to make calls and send letters and emails. Send a brief, polite note to the Governor, asking him to sign H.446, although it will be a mere formality with Entergy’s man in Montpelier.

Here’s a link to Renewable Energy Vermont with links to your Rep and Senator’s vote on H.446 and how to contact them. Please do.

Update on Monday, June 1, 2009 at 10:03PM by Minor Heretic

Apparently Governor Douglas was expecting a veto override vote - he just let the veto deadline slip by. H.446 is law in Vermont. This is a big deal for the solar business in Vermont in the short term and the state's energy future in the mid to long term. Someday we are going to thank the legislators of 2009 for enabling the timely installation of the only affordable power sources we will have.

Comments

[Tom Forest Green Hobbit]

Thanks for posting this information. I had no idea what a standard rate was in the release i got from REV today. Great that they had links on who posted to what. I see Doyle (hopeless) and Scott voted no. I want to call Phil and ask him why and this info helps. Thanks.