H 710

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 1  H.710
 2   Introduced by Representatives Campbell of St. Johnsbury and James of
 3  Manchester
 4   Referred to Committee on
 5   Date:
 6   Subject: Public service; utility companies; renewable energy programs;
 7  definitions; plant
 8   Statement of purpose of bill as introduced: This bill proposes to amend the
 9   definition of “plant” to clarify when the Public Utility Commission would
10   consider multiple energy-generating facilities to be a single facility. This bill
11   would consider a plant with multiple energy-generating facilities to be a single
12   facility if the facilities use the same electricity-generating technology and if
13   the facilities are on the same parcel or contiguous parcels of land, unless an
14   exception applies.
15      An act relating to defining electricity generating facilities
16   It is hereby enacted by the General Assembly of the State of Vermont:
17   Sec. 1. 30 V.S.A. § 8002 is amended to read:
18   § 8002. DEFINITIONS
19      As used in this chapter:
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 1  ***
 2  (18) “Plant” means an independent technical facility that generates
 3   electricity from renewable energy. A group of facilities, such as wind turbines,
 4   shall be considered one plant if the group is part of the same project and uses
 5   common equipment and infrastructure such as roads, control facilities, and
 6   connections to the electric grid. Common ownership, contiguity in time of
 7   construction, and proximity of facilities to each other shall be relevant to
 8   determining whether a group of facilities is part of the same project. Multiple
 9   electricity-generating facilities, regardless of when each is constructed, shall be
10   considered one plant if the facilities use the same electricity-generating
11   technology and are located on the same parcel or contiguous parcels of land.
12   Such facilities shall only be considered separate plants if they meet one of the
13   following exceptions:
14  (A) Exception for individual net-metering and self-consumption.
15   Applies if the facilities:
16  (i) are not located on the same parcel of land;
17  (ii) are wired to offset consumption on separate billing meters;
18   and
19  (iii) supply different retail customers.
20  (B) Exception for multi-owner individual net-metering on the same
21   parcel. Applies if the facilities:
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 1  (i) are located on the same parcel of land where a common
 2   interest community is located;
 3  (ii) are wired to offset consumption on separate billing meters;
 4   and
 5  (iii) supply different retail customers.
 6  (C) Exception for colocation of renewable energy program facilities.
 7   More than one facility may be located on the same parcel or contiguous
 8   parcels with net-metering, Standard Offer Program facilities, or other
 9   Renewable Energy Standard Tier II facilities when:
10  (i) the facilities have separate points of interconnection; and
11  (ii) not more than the statutory capacity cap for net-metering or
12   the statutory capacity cap for the Standard Offer Program is sited on the same
13   parcel or contiguous parcels and a net-metering facility and a Standard Offer
14   facility are not sited on the same parcel or contiguous parcels.
15  ***
16  (33) “Common interest community” means real estate described in a
17   declaration with respect to which a person, by virtue of the person’s ownership
18   of a unit, is obligated to pay for a share of real estate taxes on, insurance
19   premiums, maintenance, or improvement of, or services or other expenses
20   related to common elements, other units, or other real estate than that unit
21   described in the declaration.
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 1  (34) “Contiguous” means sharing a property boundary with another
 2   parcel of land or being adjacent to that parcel of land and the two parcels are
 3   separated only by a road, recreation path, railway line, stream, or river.
 4  (35) “Electricity-generating technology” means a method or system
 5   used to convert energy from one form into electric power, including wind,
 6   hydropower or water, solar, or biomass.
 7  (36) “Point of interconnection” means the point on the interconnecting
 8   utility’s existing distribution system to which a facility proposes to
 9   interconnect.
10   Sec. 2. EFFECTIVE DATE
11      This act shall take effect on July 1, 2026.
     Sec. 1. 30 V.S.A. § 8002 is amended to read:
     § 8002. DEFINITIONS
        As used in this chapter:
                                           ***
           (18) “Plant” means an independent technical facility that generates
     electricity from renewable energy. A group of facilities, such as wind turbines,
     shall be considered one plant if the group is part of the same project and uses
     common equipment and infrastructure such as roads, control facilities, and
     connections to the electric grid. Common ownership, contiguity in time of
     construction, and proximity of facilities to each other shall be relevant to
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determining whether a group of facilities is part of the same project. Multiple
electricity-generating facilities, regardless of when each is constructed, shall
be considered one plant if the facilities use the same electricity-generating
technology and are located on the same parcel or contiguous parcels of land.
Such facilities shall only be considered separate plants if they meet one of the
following exceptions:
          (A)      Exception for individual net-metering and self-consumption.
Applies if the facilities:
             (i) are not located on the same parcel of land;
             (ii) are wired to offset consumption on separate billing meters;
and
             (iii) supply different retail customers.
          (B) Exception for multi-owner individual net-metering on the same
parcel. Applies if the facilities:
             (i)    are located on the same parcel of land where a common
interest community is located;
             (ii) are wired to offset consumption on separate billing meters;
and
             (iii) supply different retail customers.
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           (C) Exception for colocation of facilities other than net-metering
program or Standard Offer Program facilities. Applies if the facilities have
separate points of interconnection if:
             (i) a net-metering facility and a Standard Offer Program facility
are not sited on the same parcel or contiguous parcels; and
             (ii) the statutory capacity cap for the net-metering program or the
Standard Offer Program is not exceeded on the same parcel or contiguous
parcels.
                                         ***
      (33) “Common interest community” means real estate described in a
declaration with respect to which a person, by virtue of the person’s ownership
of a unit, is obligated to pay for a share of real estate taxes on, insurance
premiums, maintenance, or improvement of, or services or other expenses
related to common elements, other units, or other real estate than that unit
described in the declaration.
      (34) “Contiguous” means sharing a property boundary with another
parcel of land or being adjacent to that parcel of land and the two parcels are
separated only by a road, recreation path, railway line, stream, or river.
      (35) “Electricity-generating technology” means a method or system
used to convert energy from one form into electric power, including wind,
hydropower or water, solar, or biomass.
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      (36) “Point of interconnection” means the point on the interconnecting
utility’s existing distribution system to which a facility proposes to
interconnect.
Sec. 2. EFFECTIVE DATE
   This act shall take effect on July 1, 2026.
Sec. 1. 30 V.S.A. § 8002 is amended to read:
§ 8002. DEFINITIONS
   As used in this chapter:
                                      ***
      (18) “Plant” means an independent technical facility that generates
electricity from renewable energy. A group of facilities, such as wind turbines,
shall be considered one plant if the group is part of the same project and uses
common equipment and infrastructure such as roads, control facilities, and
connections to the electric grid. Common ownership, contiguity in time of
construction, and proximity of facilities to each other shall be relevant to
determining whether a group of facilities is part of the same project. Multiple
electricity-generating facilities, regardless of when each is constructed, shall
be considered one plant if the facilities use the same electricity-generating
technology and are located on the same parcel or contiguous parcels of land.
However, such facilities shall be considered separate plants if:
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         (A) the facilities are for individual net metering or self-consumption
and:
            (i) are not located on the same parcel of land;
            (ii) are wired to offset consumption on separate billing meters;
and
            (iii) supply different retail customers;
         (B) the facilities are for multi-owner individual net metering and:
            (i)   are located on the same parcel of land where a common
interest community is located;
            (ii) are wired to offset consumption on separate billing meters;
and
            (iii) supply different retail customers; or
         (C) the facilities have separate points of interconnection and:
            (i) a net-metering facility and a Standard Offer Program facility
are not sited on the same parcel or contiguous parcels; and
            (ii) for facilities under each program, the total capacity located on
a parcel or contiguous parcels does not exceed the program’s statutory
capacity cap.
                                      ***
       (33) “Common interest community” means real estate described in a
declaration with respect to which a person, by virtue of the person’s ownership
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of a unit, is obligated to pay for a share of real estate taxes on; insurance
premiums, maintenance, or improvement of; or services or other expenses
related to common elements, other units, or other real estate than the unit
described in the declaration.
      (34) “Contiguous” means sharing a property boundary with another
parcel of land or being adjacent to that parcel of land and the two parcels are
separated only by a road, recreation path, railway line, stream, or river.
      (35) “Electricity-generating technology” means a method or system
used to convert energy from one form into electric power, including wind,
hydropower or water, solar, or biomass.
      (36) “Point of interconnection” means the point on the interconnecting
utility’s existing distribution system to which a facility proposes to
interconnect.
Sec. 2. LEGISLATIVE INTENT
   It is the intent of the General Assembly that the amendments in Sec. 1, 30
VSA 8002, of this act are substantive and create new rights and liabilities in
light of emerging issues and shall apply only to applications filed on or after
the effective date of this act.
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Sec. 2a. PRIMARY AGRICULTURAL SOILS AND SOLAR REPORT
   (a) On or before January 15, 2027, the Commissioner of Public Service,
after consultation with the Secretary of Agriculture, Food and Markets, shall
report back on the following questions:
      (1) Over the last five years, how many acres of primary agricultural
soils have been developed for any purpose? What share of this development is
attributable to solar energy generation projects?
      (2) How many acres of primary agricultural soils used for solar energy
generation development were directly impacted by the project, as opposed to
the acreage that is within the project’s area of disturbance?
      (3) How many acres of primary agricultural soils developed for solar
energy generation were in active agricultural use immediately before
development, and what was the agricultural usage?
      (4) How many acres of primary agricultural soils developed for solar
energy generation projects remain owned by farmers?
      (5)   How many acres of trees have been cleared for solar energy
generation projects in this time frame, broken down by forest type?
   (b) The Commissioner shall include in the report recommendations on how
to encourage the siting of solar energy generation on land that has already
been disturbed, including rooftops and parking lots, and potential financial
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structures that would make solar energy generation on those sites more
financially feasible.
   (c) The report shall be submitted to the House Committees on Agriculture,
Food Resiliency, and Forestry and on Energy and Digital Infrastructure and
the Senate Committees on Agriculture and on Natural Resources and Energy.
Sec. 2a. PRIMARY AGRICULTURAL SOILS AND SOLAR REPORT
   (a) On or before January 15, 2027, the Commissioner of Public Service,
after consultation with the Secretary of Agriculture, Food and Markets, the
Public Utility Commission, and the Agency of Natural Resources, shall report
back on the following questions:
      (1) In the last two years, for solar energy generation projects with a
capacity of 1 MW or greater, how many acres of primary agricultural soils
used for solar energy generation development were directly impacted by the
project, as opposed to the acreage that is within the project’s area of
disturbance?
      (2) In the last two years, what are the cumulative impacts, in acres, of
forest clearing associated with solar energy generation projects with a
capacity of 1 MW or greater, and what are the specific impacts on the Highest
Priority Landscapes identified by Vermont Conservation Design as well as any
impacts on State-Significant natural communities?
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   (b) The Commissioner shall include in the report recommendations on how
to encourage the siting of solar energy generation on land that has already
been disturbed, including rooftops and parking lots, and potential financial
structures that would make solar energy generation on those sites more
financially feasible.
   (c) The report shall be submitted to the House Committees on Agriculture,
Food Resiliency, and Forestry and on Energy and Digital Infrastructure and
the Senate Committees on Agriculture and on Natural Resources and Energy.
Sec. 3. 30 V.S.A. § 20 is amended to read:
§ 20. PARTICULAR PROCEEDINGS AND ACTIVITIES; PERSONNEL
   (a)(1) The Commission or the Department of Public Service may authorize
or retain legal counsel, official stenographers, expert witnesses, advisors and
consultants, temporary employees, and other providers of research, scientific,
financial, economic, actuarial, accounting, or engineering services:
                                      ***
         (F)     To investigate, review, plan, oversee, or carry out the
decommissioning and site restoration required by a certificate of public good
issued to an electric generation or energy storage facility.
                                      ***
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Sec. 4. 30 V.S.A. § 248e is added to read:
§ 248e. ELECTRIC GENERATION AND ENERGY STORAGE FACILITY
         DECOMMISSIONING FUND
  (a) There is created the Electric Generation and Energy Storage Facility
Decommissioning Fund that shall be a special fund created pursuant to 32
V.S.A. chapter 7, subchapter 5 and shall be administered by the Chair of the
Public Utility Commission. The Chair is authorized to collect surety fees for
the   Decommissioning    Fund    and    to   make   disbursements    from   the
Decommissioning Fund.
  (b)    Deposits to the Decommissioning Fund shall consist of all
decommissioning surety fees collected for electric generation and energy
storage facilities that have received a certificate of public good from the
Commission and all monies drawn from decommissioning financial
instruments. The Commission shall deposit into the Decommissioning Fund
each decommissioning surety fee it receives under this subchapter.
  (c) Disbursements from the Decommissioning Fund may be made by the
Chair to undertake actions that the Commission considers necessary to
investigate or mitigate, or both, the effects of an abandoned, nonoperational,
or disclaimed electric generation or energy storage facility. Disbursements
under this subsection may be made to:
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      (1)     pay costs to third parties who initiate or complete facility
decommissioning and site restoration where the holder of the certificate of
public good is unknown, cannot be contacted, is unwilling to take action, is
incapable of carrying out decommissioning or site restoration, or does not take
timely action as ordered by the Commission;
      (2) investigate ownership of or ascertain the holder of the certificate of
public good for an electric generation or energy storage facility;
      (3) take other appropriate remedial action;
      (4) pay costs to persons retained by the Commission or the Department
under subdivision 20(a)(1)(F) of this title; or
      (5) return portions of the decommissioning surety fees as determined by
a formula established by the Commission to individual certificate of public
good holders upon satisfactory completion of decommissioning and
Commission approval.
   (d) For purposes of this section:
      (1) “Chair” means the Chair of the Public Utility Commission.
      (2) “Commission” means the Public Utility Commission.
      (3) “Decommissioning” means to remove a facility safely from service
and to restore the site to its condition before the facility was installed
consistent with the facility’s certificate of public good and Commission rules
and orders.
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      (4)   “Decommissioning Fund” means the Electric Generation and
Energy Storage Facility Decommissioning Fund established pursuant to this
section.
      (5) “Decommissioning surety fee” means the contribution assigned to a
facility and determined by a funding formula established by the Commission,
not to exceed the average cumulative cost of obtaining decommissioning
financial instruments for the life of a facility. The “average cumulative cost”
means the customary and reasonable market-based third-party costs; expenses
and fees associated with obtaining, maintaining, renewing, and updating
financial instruments; and staff and attorney time and expenses.
      (6) “Department” means the Department of Public Service.
   (e) Balances in the Decommissioning Fund shall be expended only for the
purposes authorized in this section and shall not be used for the general
obligations of government or for other governmental purposes. All balances in
the Decommissioning Fund at the end of any fiscal year shall be carried
forward and remain within the Decommissioning Fund. Interest earned by the
Decommissioning Fund shall be credited to the Decommissioning Fund.
   (f) The Commission shall have authority to adopt rules or issue orders
implementing this section.
   (g) The Commission shall provide to the Treasurer of the State of Vermont
an annual accounting of the Decommissioning Fund.
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Sec. 5. DECOMMISSIONING FUND REPORT
  On or before February 15, 2027, the Public Utility Commission shall report
back to the House Committee on Energy and Digital Infrastructure and the
Senate Committees on Natural Resources and Energy and on Finance on the
formula established for the decommissioning surety fees pursuant to 30 V.S.A.
§ 248e.
Sec. 6. EFFECTIVE DATE
  This act shall take effect on July 1, 2026.