On April 22, 2005, the Vermont House of Representatives passed an amended version of Senate Bill 52, a bill designed to encourage development of renewable energy by instituting a renewable energy portfolio standard (“RPS”).

Under the House version, the RPS would not take effect until 2013, and would not take effect at all if the state is successful in developing new, in-state renewable energy in the amount of 10 percent of the aggregate amount of energy sold by Vermont retail electricity providers during the year 2005.

To aid in the development of in-state renewable energy, the House version would establish a “Sustainably Priced Energy Enterprise Development” or “SPEED” program. The SPEED program would have two categories of projects: qualifying SPEED resources and non-qualifying SPEED resources. Qualifying SPEED resources are defined as contracts for in-state resources in the SPEED program that meet the definition of renewable energy. Non-qualifying SPEED resources are contracts for in-state resources in the SPEED program that are combined heat and power facilities that are not fueled by renewable energy sources and that have a total system efficiency of 65 percent or more. Unless an electricity provider is excused from the SPEED program’s purchase requirements by the Vermont Public Service Board (“PSB”) because participation would impair the provider’s ability to meet the public’s need for energy services or because the provider already has a sufficient amount of renewable energy in its portfolio, all retail providers in Vermont would be required to purchase power developed under the SPEED program on a pro rata basis.

If the state does not meet the goals set under the SPEED program by 2012, then the RPS would take effect. Under the RPS, Vermont retail electricity providers would have to provide the lesser of 10 percent of their 2005 sales or their total incremental energy growth between January 1, 2005 and January 1, 2012 from “new renewable resources.” Retail electricity providers would be permitted to meet this requirement though eligible new renewable energy credits, new renewable energy resources with credits still attached, a combination of those credits and resources, or by making payments into a renewable energy fund. The state would develop a system for trading renewable energy credits that would be consistent with regional practices. A retail electricity provider may be excused from compliance with the portfolio standard upon a finding by the PSB that the standard would impair the provider’s ability to meet the public’s need for energy.

Renewable energy that may be used to satisfy the RPS would have to be “new,” that is, it would have to be produced by a generating source that came or will come into service after December 1, 2004. Allowable “renewable” resources under the House version of Senate Bill 52 would generally include any resource “that is being consumed at a harvest rate at or below its natural generation rate.” Methane gas and other flammable gases produced by the decay of sewage treatment plant wastes or landfill wastes and anaerobic digestion of agricultural products,  byproducts, or waste are specifically included in the definition of renewable energy resources. However, other than agricultural or silvicultural waste, no form of solid waste would be considered renewable. Energy that is produced by a hydroelectric facility would be considered renewable only if the facility has a generating capacity of 200 megawatts or less. The House version permits the PSB to add technologies or technology categories to the list of  renewable energy resources contained in the bill.

Because the version of Senate Bill 52 passed by the House differs from the version previously passed by the Senate, the bill is now in a committee of conference.

Robert A. Olson is a partner in the law firm of Brown, Olson & Gould P.C. which maintains a nationwide practice in energy law, public utility law and related commercial transactions. He can be reached at:

Brown, Olson & Gould, PC
2 Delta Drive, Suite 301
Concord, NH 03301

rolson@bowlaw.com | (603) 225-9716