Vermont

Summary: The Vermont Public Service Board (PSB) developed this interconnection rule for all distributed generation not subject to the state’s net metering rule. Rule 5.500, then, applies to all CHP systems. The PSB does not cap system size, though certain systems are eligible for a “fast track” application process. Systems not eligible for interconnection under the “fast track” mechanism are subject to additional studies and/or screening criteria.

Links:

• Vermont’s PSB Rule 5.500 can be found here: Rule
• For additional detailed information, visit the DSIRE database
• For additional information, visit the EPA’s Combined Heat and Power Partnership website.

Contact:

Gregg Faber
112 State Street
Drawer 20
Montpelier, VT 5620
gfaber@psb.state.vt.us
(802) 828-2358

Back to Top

Description: Vermont’s 2008 energy efficiency and affordability act amended the municipal tax exemption option applicable to “alternative energy sources.” Municipalities have the right to offer a property tax exemption for property involved in “the generation of electricity or production of energy used on the premises for private, domestic, or agricultural purposes…” Specific technologies are listed, and while this section does not explicitly list CHP as an eligible alternate energy source, the legislation is written such that the term “alternate energy source” includes the listed technologies, but is not limited to it, leaving open the possibility that municipalities could include CHP as en eligible technology.

Links:
The entire text of the bill can be found here.
Visit the DSIRE database for additional information about the tax exemption.

Contact:
Andrew Perchlik
Renewable Energy Vermont
PO Box 1036
Montpelier, VT 05601
Phone: (802) 229-0099
E-Mail: perchlik@REVermont.org
Web site: http://www.revermont.org/

Back to Top

Description: The Clean Energy Development Fund (CEDF) Grant Program seeks to promote the development and deployment of cost-effective and environmentally sustainable electric power resources for the long-term benefit of Vermont electric customers. There is a total of $4 million available. Proposed projects are required to have an electric generation component and be grid-connected. The range of maximum awards, which varies by project category, is $60,000 to $250,000 for individual projects. Cost-share is required for all projects.

The CEDF Loan Program seeks to promote the development of clean electric-energy technologies by providing funding for purchasing land and buildings (when specific to qualifying projects), purchasing and installing machinery and equipment, and working capital. Low-interest loans with a fixed rate of 2% are available to individuals, companies, nonprofits and municipalities. Eligible clean electric-energy technologies generally include CHP. The minimum loan amount is $50,000; the maximum amount is $1 million. Loans may not be used for more than 90% of the cost of a project. All financing must be used for activities or assets directly related to the project.

Links:

• Authority 1: 10 V.S.A. § 6523
• Visit the DSIRE database for additional information about the grant program or the loan program.

Contact:
Anne Margolis
Vermont Department of Public Service
112 State Street, Drawer 20
Montpelier, VT 05620-2601
Phone: (802) 828-4017
Fax: (802) 828-2342
E-Mail: anne.margolis@state.vt.us
Web Site: http://www.state.vt.us/psd

Back to Top

Description: Vermont's sales tax exemption for renewable-energy systems, originally enacted as part of the Miscellaneous Tax Reduction Act of 1999 (H. 0548), initially applied only to net-metered systems. The exemption now generally applies to systems up to 250 kilowatts (kW) in capacity that generate electricity using eligible "renewable energy" resources (as defined under 30 V.S.A. § 8002), to micro-combined heat and power (CHP) systems up to 20 kW. The exemption is available for grid-tied systems and off-grid systems alike. Vermont's sales tax rate is 6%.

Links:

• Visit the DSIRE database for additional information about the tax exemption.

Contact:
Andrew Perchlik
Renewable Energy Vermont
PO Box 1036
Montpelier, VT 05601
Phone: (802) 229-0099
E-Mail: perchlik@REVermont.org
Web site: http://www.revermont.org/

Back to Top

Summary: For distributed generation customers, standby service is charged on their regular tariff except when the customer’s monthly power factor falls below 95%. When this occurs, standby charges are assessed based upon a customer’s monthly demand and peak KVAR consumption. This rider is seen as neutral toward CHP. Central Vermont Public Service Corp. also does not have a standard standby service rate. Instead, standby service is billed at the customer’s regular rate. Large systems are generally subject to rates with high demand charges and a 12-month ratchet. This policy is seen as not favorable toward CHP.

Links:

• Green Mountain Power Corp.’s Customer-Owned Generation Rider is available here: Rate
• Central Vermont Public Service Corp.’s rates are available here: Rates
• More information about best practices in utility rate design can be found on the EPA’s CHP Partnership website.

Back to Top

Description: Vermont's Sustainably Priced Energy Enterprise Development (SPEED) Program was created by legislation in 2005 to promote renewable energy development. The SPEED program itself is not a renewable portfolio goal or standard. However, if the Vermont Public Service Board (PSB) determines that the established minimum obligations of the SPEED program are not met, then the state's utilities would be required to meet a binding renewable energy portfolio standard (RPS), as established by law (30 V.S.A. § 8004). Legislation enacted in March 2008 (S.B. 209) established a goal that 20% of total statewide electric retail sales before July 1, 2017 be generated by SPEED projects. To qualify as a SPEED project, the facility must be located in Vermont, and must produce energy using renewables or qualifying CHP.

Links:

• Vermont Speed website
• Authority 1: 30 V.S.A. § 8001 et seq.
• Authority 2: CVR 30 000 054. 4.300
• Authority 3: H. 446 (impacts the SPEED Program, notably because it requires all Vermont electricity providers to purchase electricity generated by eligible renewable energy facilities via standard offer contract with set rates)
• For more information, visit the DSIRE database page on Vermont’s SPEED goals.

Contact:
Riley Allen
Vermont Public Service Board
112 State Street, Drawer 20
Montpelier, VT 05620-2701
Phone: (802) 828-4053
E-Mail: Riley.Allen@state.vt.us
Web Site: http://www.state.vt.us/psb/

Last Updated 08/27/2009

Back to Top

Was this information helpful? Click here to give us your feedback.