In 2015, Vermont passed its Renewable Energy Standard, requiring Vermont electric utilities to provide 75% renewable electricity to their customers by 2032, of which 10% needed to come from smaller, new renewables built in Vermont. Nearly a decade later, as more Vermonters are turning to clean, beneficial electrification for heating, power and transportation needs, the Legislature is working to modernize this important regulatory framework, via H.289. The framework and foundation of H.289 is important.
H.289 would nearly quadruple the amount of new renewable energy Vermont electric utilities are required to deliver in the next decade – from both in-state and in-region resources – and achieve a 100% renewable electricity sector by 2035. The significant and strategic ramp of new, clean, resilience-enhancing renewables outlined in H.289 reflects the near-consensus framework of the RES Working Group.
With the Legislature’s authorization, last fall a working group of legislators, distribution utilities and other stakeholders met to discuss and identify the best pathway forward to ramp new renewable deployment in the most cost-effective, strategic way. The working group undertook a successful collaborative effort, and H.289 is the result; outlining a tailored regulatory approach for each of Vermont’s different distribution utilities intended to help them deliver cost-effective, clean and reliable electricity for their customers.
We strongly support H.289 and its carefully constructed approach to both dramatically increase the pace at which Vermont’s utilities are getting renewable energy built, while doing that in a way that advances the affordability and reliability of Vermont’s electric system. Because it:
- Doubles the amount of new renewables Vermont utilities are required to get built here in Vermont – in particular small and medium-sized renewables – from 10% to 20% of the electricity delivered by a given utility.
- Creates a new requirement for Vermont utilities to provide their customers with additional new renewable energy of any size from anywhere in the region (inside or outside Vermont). This requirement is over and above the in-state requirement described above - an additional 20% no later than 2035 for Green Mountain Power, and an additional 10% by 2035 for other electric utilities.
- Requires all Vermont utilities to provide 100% renewable electricity to their customers – by 2030 for Green Mountain Power and Vermont Electric Coop and by 2035 for other utilities that are not already at 100% renewable.
To distill the climate benefits of this policy, in terms of cutting carbon pollution, this is the equivalent of taking approximately 160,000-250,000 cars off the road, for good.
JFO now estimates the overall cost to be between $150-$450 million over 10 years; this is substantially lower than the original overinflated estimate. Any cost increase from moving to 100% renewable energy under H.289 will occur in the context of the $14.5 billion PSD projects Vermonters will spend on electricity between 2025-2035.
This bill represents the largest single move towards renewable electricity and away from fossil fueled power that Vermont has ever taken, by a wide margin, creating a pathway for health-enhancing, cost-cutting clean energy. Despite that, it’s far from the only bill we need to pass or work we need to do in the electric sector.
The bill phases out offsite or “virtual” net metering – a program that we hoped would be a scalable opportunity for all Vermonters to participate in community solar, which unfortunately never lived up to that potential, despite a number of great projects happening. The bill phases out this imperfect tool, without putting in place a replacement program. The bill does require an analysis and recommendations on a “successor program” to offsite group net metering, to go beyond other options Vermonters who can’t go solar on their own property have today or will have in the near future (Vermont Electric Coop’s “Co-op Community Solar Program” and Green Mountain Power’s “Shared Solar” and ARPA-funded “ACRE” programs, for instance). These solutions – making sure renewable energy is available to all Vermonters, no matter your income or living situation – are something we are deeply committed to and look forward to working on in next year’s legislative session and beyond, if necessary.
We believe strongly that H.289 is well-crafted and an important, needed step forward to build the cleanest, most reliable, cost-effective electric system possible. We urge you to support H.289, and we thank you in advance for advancing this important policy.
350 Vermont Conservation Law Foundation
Renewable Energy Vermont Sierra Club
Third Act Vermont Vermont Climate and Health Alliance
Vermont Businesses for Social Responsibility Vermont Conservation Voters
Vermont Public Interest Research Group Vermont Natural Resources Council