title-30•Title 30 — Public Service
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Chapter 1 Appointment, General Powers, and Duties
§ 1 Composition of Department
(a) The Department of Public Service shall consist of the Commissioner of Public Service, a Director for Regulated Utility Planning, a Director for Public Advocacy, a Director for Energy Efficiency, a Director for Telecommunications and Connectivity, and such other persons as the Commissioner considers necessary to conduct the business of the Department.
(b) The Commissioner shall be appointed by the Governor with the advice and consent of the Senate. The Commissioner shall serve for a term of two years beginning on February 1 of the year in which the appointment is made. The Commissioner shall serve at the pleasure of the Governor. The Directors for Regulated Utility Planning, for Public Advocacy, and for Energy Efficiency shall be appointed by the Commissioner. The Director for Telecommunications and Connectivity shall be appointed by the Commissioner in consultation with the Secretary of Administration.
(c) The Directors for Public Advocacy and for Telecommunications and Connectivity may employ, with the approval of the Commissioner, legal counsel and other experts, and clerical assistance, and the Directors for Regulated Utility Planning and for Energy Efficiency may employ, with the approval of the Commissioner, experts and clerical assistance.
(Amended 1959, No. 329 (Adj. Sess.), §§ 38, 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 1, eff. Feb. 1, 1981; 1989, No. 238 (Adj. Sess.), § 1, eff. June 4, 1990; 2015, No. 41, § 2.)
§ 2 Department powers
(a) The Department of Public Service shall supervise and direct the execution of all laws relating to public service corporations and firms and individuals engaged in such business, including the:
(1) formation, organization, ownership, and acquisition of facilities of public service corporations under chapter 3 of this title;
(2) participation in planning for proper utility service as provided in section 202 of this title through the Director for Regulated Utility Planning;
(3) supervision and evaluation under chapters 5 and 77 of this title of the quality of service of public utility companies;
(4) interconnection and interchange of facilities of electric companies under sections 210, 213, and 214 of this title;
(5) representation of the State in the negotiations and proceedings for the procurement of electric energy from any source outside this State and from any generation facility inside the State under sections 211 and 212 of this title;
(6) review of proposed changes in rate schedules and petition to the Public Utility Commission, and representation of the interests of the consuming public in proceedings to change rate schedules of public service companies under chapter 5 of this title;
(7) siting of electric generation and transmission facilities under section 248 of this title;
(8) consolidations and mergers of public service corporations under chapter 7 of this title;
(9) supervision and regulation of cable television systems under chapter 13 of this title;
(10) supervision and regulation of telegraph and telephone companies under chapters 71, 73, and 75 of this title;
(11) supervision and regulation of the organization and operation of municipal plants under chapter 79 of this title; and
(12) supervision and regulation of the organization and operation of electric cooperatives under chapter 81 of this title.
(b) In cases requiring hearings by the Commission, the Department, through the Director for Public Advocacy, shall represent the interests of the people of the State, unless otherwise specified by law. In any hearing, the Commission may, if it determines that the public interest would be served, request the Attorney General or a member of the Vermont bar to represent the public or the State. In addition, the Department may intervene, appear, and participate in Federal Energy Regulatory Commission proceedings, Federal Communications Commission proceedings, or other federal administrative proceedings on behalf of the Vermont public.
(c) The Department may bring proceedings on its own motion before the Public Utility Commission, with respect to any matter within the jurisdiction of the Public Utility Commission, and may initiate rulemaking proceedings before that Commission. The Public Utility Commission, with respect to any matter within its jurisdiction, may issue orders on its own motion and may initiate rulemaking proceedings.
(d) In any proceeding where the decommissioning fund for the Vermont Yankee Nuclear Facility is involved, the Department shall represent the consuming public in a manner that acknowledges that the general public interest requires that the consuming public, rather than either the State’s future consumers who never obtain benefits from the facility or the State’s taxpayers, ought to provide for all costs of decommissioning. The Department shall seek to have the decommissioning fund be based on all reasonably expected costs.
(e) The Commissioner of Public Service (the Commissioner) will work with the Director of the Office of Economic Opportunity (the Director), the Commissioner of Housing and Community Development, the Vermont Housing and Conservation Board (VHCB), the Vermont Housing Finance Agency (VHFA), the Vermont Community Action Partnership, and the efficiency entity or entities appointed under subdivision 209(d)(2) of this title and such other affected persons or entities as the Commissioner considers relevant to improve the energy efficiency of both single- and multi-family affordable housing units, including multi-family housing units previously funded by VHCB and VHFA and subject to the Multifamily Energy Design Standards adopted by the VHCB and VHFA. In consultation with the other entities identified in this subsection, the Commissioner and the Director together shall report twice to the House Committee on Environment and Energy and the Senate Committee on Natural Resources and Energy, on or before January 31, 2015 and 2017, respectively, on their joint efforts to improve energy savings of affordable housing units and increase the number of units assisted, including their efforts to:
(1) simplify access to funding and other resources for energy efficiency and renewable energy available for single- and multi-family affordable housing. For the purpose of this subsection, “renewable energy” shall have the same meaning as under section 8002 of this title;
(2) ensure the delivery of energy services in a manner that is timely, comprehensive, and cost-effective;
(3) implement the energy efficiency standards applicable to single- and multi-family affordable housing;
(4) measure the results and performance of energy improvements;
(5) develop guidance for the owners and residents of affordable housing to maximize energy savings from improvements; and
(6) determine how to enhance energy efficiency resources for the affordable housing sector in a manner that avoids or reduces the need for assistance under 33 V.S.A. chapter 26 (home heating fuel assistance).
(f) In performing its duties under this section, the Department shall give heightened consideration to the interests of ratepayer classes who are not independently represented parties in proceedings before the Commission, including residential, low-income, and small business consumers, as well as other consumers whose interests might otherwise not be adequately represented but for the Department’s advocacy.
(g) In all forums affecting policy and decision making for the New England region’s electric system, including matters before the Federal Energy Regulatory Commission and the Independent System Operator of New England, the Department of Public Service shall advance positions that are consistent with the statutory policies and goals set forth in 10 V.S.A. §§ 578, 580, and 581 and sections 202a, 8001, 8004, and 8005 of this title. In those forums, the Department also shall advance positions that avoid or minimize adverse consequences to Vermont and its ratepayers from regional and inter-regional cost allocation for transmission projects. This subsection shall not compel the Department to initiate or participate in litigation and shall not preclude the Department from entering into agreements that represent a reasonable advance to these statutory policies and goals.
(h) The Department shall investigate when it receives a complaint that there has been noncompliance with section 246, 248, 248a, or 8010 of this title, any rule adopted pursuant to those sections, or any certificate of public good issued pursuant to those sections, including a complaint of such noncompliance received pursuant to section 208 of this title or the complaint protocol established under 2016 Acts and Resolves No. 130, Sec. 5c.
(Amended 1979, No. 204 (Adj. Sess.), § 2, eff. Feb. 1, 1981; 1989, No. 296 (Adj. Sess.), § 5, eff. June 29, 1990; 2013, No. 89, § 12a; 2013, No. 91 (Adj. Sess.), §§ 1, 5, eff. Feb. 4, 2014; 2013, No. 99 (Adj. Sess.), § 9a, eff. April 1, 2014; 2015, No. 11, § 31; 2015, No. 56, § 22; 2017, No. 53, § 7; 2017, No. 113 (Adj. Sess.), § 173.)
§ 3 Public Utility Commission
(a) The Vermont Public Utility Commission shall consist of a chair and two members. The Chair and each member shall not be required to be admitted to the practice of law in this State.
(b) The Chair shall be nominated, appointed, and confirmed in the manner of a Superior judge.
(c) Members of the Commission other than the Chair shall be appointed in accordance with this subsection. Whenever a vacancy occurs, public announcement of the vacancy shall be made. The Governor shall submit at least five names of potential nominees to the Judicial Nominating Board for review. The Judicial Nominating Board shall review the candidates in respect to judicial criteria and standards only and shall recommend to the Governor those candidates the Board considers qualified. The Governor shall make the appointment from the list of qualified candidates. The appointment shall be subject to the advice and consent of the Senate.
(d)(1) The term of each member shall be six years.
(2) Any appointment to fill a vacancy shall be for the unexpired portion of the term vacated.
(3)(A) A chair wishing to succeed himself or herself in office may seek reappointment under the terms of subsection (b) of this section.
(B) The Governor may reappoint a member of the Commission other than the Chair at the expiration of that member’s term, subject to the advice and consent of the Senate.
(e) Notwithstanding 3 V.S.A. § 2004, or any other provision of law, members of the Commission may be removed only for cause. When a Commission member who hears all or a substantial part of a case retires from office before the case is completed, the member shall remain a member of the Commission for the purpose of concluding and deciding the case, and signing the findings, orders, decrees, and judgments. A retiring chair shall also remain a member for the purpose of certifying questions of law if appeal is taken. For this service, the member shall receive a reasonable compensation to be fixed by the remaining members of the Commission and necessary expenses while on official business.
(f) A case shall be deemed completed when the Commission enters a final order on it even though the order is appealed to the Supreme Court and the case remanded by that Court to the Commission. Upon remand the Commission then in office may in its discretion consider relevant evidence including any part of the transcript of testimony in the proceedings prior to appeal.
(g) The Chair shall have general charge of the offices and employees of the Commission.
(h) The Clerk may appoint and assign a former Commission member to sit on specific Commission cases when some or all of the regular members are disqualified or otherwise unable to serve. In making assignments, the Clerk shall begin with the former Commissioner who left service most recently and then, as needed, proceed to the next most recently serving former Commissioner. Former Commissioners shall receive pay in accordance with subsection (e) of this section.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), (c), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 3, eff. Feb. 1, 1981; 1985, No. 108 (Adj. Sess.), § 3, eff. March 25, 1986; 1993, No. 21, § 1, eff. May 12, 1993; 2017, No. 53, § 9; 2019, No. 128 (Adj. Sess.), § 13; 2021, No. 42, § 3; 2023, No. 85 (Adj. Sess.), § 336, eff. July 1, 2024.)
§ 4 Qualifications of members, commissioners, and clerk
A person in the employ of or holding any official relation to any company subject to the supervision of the Commission, or engaged in the management of such company, or owning stock, bonds, or other securities thereof, or who is, in any manner, connected with the operation of such company in this State, shall not be a member or clerk of the Commission or Commissioner of Public Service; nor shall any person holding the office of member, clerk of the Commission, or Commissioner of Public Service personally or in connection with a partner or agent, render professional service for or against or make or perform any business contract with any company subject to such supervision, relating to the business of such company, except contracts made with them as common carriers or in regular course of public service; nor shall such person, directly or indirectly, receive from any such company any commission, present, or reward.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 4, eff. Feb. 1, 1981.)
§ 5 Clerk; oath
The Commission shall appoint a clerk, who shall serve during its pleasure. The Commission members and clerk shall be sworn to the faithful discharge of the duties of their offices and, before entering upon the same, shall file a certificate of their oaths for record in the Office of the Secretary of State.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), (c), eff. March 1, 1961.)
§ 6 Powers and duties of clerk
The clerk shall have the custody of the seal of the Commission, keep a full record of its proceedings, file and preserve at its office all documents and papers entrusted to his or her care, prepare such papers and notices as may be required by the Commission, and perform such other duties as it may prescribe. The clerk shall have power, under the direction of the Commission, to issue subpoenas for witnesses and to administer oaths in all cases before the Commission or pertaining to the duties of the office.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1993, No. 21, § 2, eff. May 12, 1993.)
§ 7 Quorum; meetings
Two Commission members shall constitute a quorum for the transaction of any business. Meetings of the Commission may be held at any time or place within the State upon call of the Chair or the other two members, after a reasonable notice to the other members, and shall be held at such times and places as in the judgment of the Commission will best serve the convenience of all parties in interest.
(Amended 1959, No. 329 (Adj. Sess.), § 39(a), (b), eff. March 1, 1961; 1993, No. 21, § 3, eff. May 12, 1993.)
§ 8 Powers of single Commission member or other officer or employee
(a) One Commission member or any officer or employee of the Commission duly appointed by the Chair of the Commission may inquire into and examine any matter within the jurisdiction of the Commission.
(b) A hearing officer may administer oaths in all cases, so far as the exercise of that power is properly incidental to the performance of his or her duty or that of the Commission. A hearing officer may hold any hearing in any matter within the jurisdiction of the Commission to hear.
(c) A hearing officer shall report his or her findings of fact in writing to the Commission in the form of a proposal for decision. A copy shall be served upon the parties pursuant to 3 V.S.A. § 811. However, judgment on such findings shall be rendered only by a majority of the Commission.
(d) Written notice of a hearing before a Commissioner or a hearing officer shall be given in accordance with section 10 of this title.
(e) Upon written request to the Commission at least five days prior to the hearing by all parties to the case, the Chair shall appoint at least a majority of the Commission to conduct the hearing.
(f) Notwithstanding subsection (c) of this section, the Chair may appoint a hearing officer to hear and finally determine any consumer complaint where the amount in controversy does not exceed $2,000.00. Upon petition of a party, filed within 30 days following the issuance of the hearing officer’s decision and order, or on its own motion, the Commission may determine that the hearing officer’s decision and order should be treated as a proposal for decision and order as provided in subsection (c) of this section. The Commission may grant a request for good cause, including apparent error of fact, or procedural or substantive law, and may conduct additional evidentiary hearings or hear oral argument from the parties. If the request is not timely made, or is not granted by the Commission, the decision and order of the hearing officer shall become the final decision and order of the Commission.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), (c), eff. March 1, 1961; 1971, No. 180 (Adj. Sess.), § 1, eff. March 28, 1972; 1973, No. 96; 1993, No. 21, § 4, eff. May 12, 1993; 2023, No. 85 (Adj. Sess.), § 337, eff. July 1, 2024; 2023, No. 142 (Adj. Sess.), § 2, eff. May 30, 2024.)
§ 9 Court of record; seal
The Commission shall have the powers of a court of record in the determination and adjudication of all matters over which it is given jurisdiction. It may render judgments, make orders and decrees, and enforce the same by any suitable process issuable by courts in this State. The Commission shall have an official seal on which shall be the words, “State of Vermont. Public Utility Commission. Official Seal.”
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 10 Service of process; notice of hearings; temporary restraining orders
(a) All processes issued by the Commission shall state the time and place of return, in those cases where return is to be made to the Commission. Orders, notices, and other processes issued by the Commission shall be served personally or by first class mail, except that the Commission may direct that service be made by registered or certified mail. If the whereabouts of a person are unknown, or if the number of respondents is so great that personal service or service by mail is impracticable, service may be made by publication.
(b) Except as provided in subsections (c), (d), and (e) of this section, the Commission shall give 12 days’ notice of all hearings.
(c) As used in this section, the term “hearings” refers to public hearings and evidentiary hearings. All other proceedings before the Commission may be held upon any reasonable notice.
(d) An evidentiary hearing, once commenced upon proper notice, may be continued to a subsequent date upon any reasonable notice.
(e) Notwithstanding any other provision in this section, the Commission or a single member may grant temporary restraining orders in the manner provided by and subject to limitations prescribed by the Vermont Rules of Civil Procedure.
(f) The provisions of sections 110-124 of this title relating to process and notice in condemnation cases shall not be affected by this section.
(Amended 1959, No. 186, § 1, eff. May 20, 1959; 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1975, No. 59, § 1, eff. April 18, 1975; 1975, No. 212 (Adj. Sess.), § 1; 1985, No. 103 (Adj. Sess.); 1993, No. 21, § 5, eff. May 12, 1993; 2019, No. 31, § 22; 2023, No. 142 (Adj. Sess.), § 3, eff. May 30, 2024.)
§ 11 Pleadings; rules of practice; hearings; findings of fact
(a)(1) The forms, pleadings, and rules of practice and procedure before the Commission shall be prescribed by it. The Commission shall adopt rules that include, among other things, provisions that:
(2) With regard to the general procedural rules codified in Commission Rule 2.000, notwithstanding the rulemaking provisions of the Vermont Administrative Procedure Act, the Commission is empowered to prescribe and amend from time to time general rules with respect to pleadings, practice, evidence, procedure, and forms for all Commission proceedings.
(3) The rules prescribed or amended shall not abridge, enlarge, or modify any substantive rights of any person provided by law.
(4) The rules, when initially prescribed or any amendments to them, including any repeal, modification, or addition, shall take effect on the date provided by the Commission in its order of promulgation unless objected to by the Legislative Committee on Judicial Rules as provided in 12 V.S.A. chapter 1. If an objection is made by the Legislative Committee on Judicial Rules, the initially prescribed rules in question shall not take effect until they have been reported to the General Assembly by the Chair of the Commission at any regular, adjourned, or special session thereof, and until after the expiration of 45 legislative days following that session, including the date of the filing of the report.
(5) The General Assembly may repeal, revise, or modify any rule or amendment, and its action shall not be abridged, enlarged, or modified by subsequent rule.
(6) The Commission shall adopt rules that include, among other things, provisions that:
(A) A utility whose rates are suspended under the provisions of section 226 of this title shall, within 30 days from the date of the suspension order, file with the Commission all exhibits it intends to use in the hearing thereon together with the names of witnesses it intends to produce in its direct case and a short statement of the purposes of the testimony of each witness. Except in the discretion of the Commission, a utility shall not be permitted to introduce into evidence in its direct case exhibits that are not filed in accordance with this rule.
(B) A scheduling conference shall be ordered in every contested rate case. At such conference the Commission may require the State or any person opposing such rate increase to specify what items shown by the filed exhibits are conceded. Further proof of conceded items shall not be required.
(b) The Commission shall allow all members of the public to attend each of its hearings unless the hearing is for the sole purpose of considering information to be treated as confidential pursuant to a protective order duly adopted by the Commission.
(1) The Commission shall make all reasonable efforts to ensure that the location of each hearing is sufficient to accommodate all members of the public seeking to attend.
(2) The Commission shall ensure that the public may safely attend the hearing, including obtaining such resources as may be necessary to fulfill this obligation.
(c) The Commission shall hear all matters within its jurisdiction and make its findings of fact. It shall state its rulings of law when they are excepted to. Upon appeal to the Supreme Court, its findings of fact shall be accepted unless clearly erroneous.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1971, No. 185 (Adj. Sess.), § 211, eff. March 29, 1972; 2013, No. 91 (Adj. Sess.), § 3; 2015, No. 23, § 134; 2017, No. 53, § 13a; 2019, No. 31, § 21; 2023, No. 33, § 6, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 338, eff. July 1, 2024.)
§ 11a Electronic filing and issuance
(a) As used in this section:
(1) “Confidential document” means a document containing information for which confidentiality has been asserted and that has been filed with the Commission and parties in a proceeding subject to a protective order duly issued by the Commission.
(2) “Document” means information inscribed on a tangible medium or stored in an electronic or other medium and retrievable in perceivable form.
(3) “Electronic filing” means the transmission of documents to the Commission by electronic means.
(4) “Electronic filing system” means a Commission-designated system that provides for the electronic filing of documents with the Commission and for the electronic issuance of documents by the Commission. If the system provides for the filing or issuance of confidential documents, it shall be capable of maintaining the confidentiality of confidential documents and of limiting access to confidential documents to individuals explicitly authorized to access such confidential documents.
(5) “Electronic issuance” means:
(A) the transmission by electronic means of a document that the Commission has issued, including an order, proposal for decision, or notice; or
(B) the transmission of a message from the Commission by electronic means informing the recipients that the Commission has issued a document, including an order, proposal for decision, or notice, and that it is available for viewing and retrieval from an electronic filing system.
(6) “Electronic means” means any Commission-authorized method of electronic transmission of a document.
(b) The Commission by order, rule, procedure, or practice may:
(1) provide for electronic issuance of any notice, order, proposal for decision, or other process issued by the Commission, notwithstanding any other service requirements set forth in this title or in 10 V.S.A. chapter 43;
(2) require electronic filing of documents with the Commission;
(3) for any filing or submittal to the Commission for which the filing or submitting entity is required to provide notice or a copy to another State agency under this title or under 10 V.S.A. chapter 43, waive such requirement if the State agency will receive notice of and access to the filing or submittal through an electronic filing system; and
(4) for any filing, order, proposal for decision, notice, or other process required to be served or delivered by first-class mail or personal delivery under this title or under 10 V.S.A. chapter 43, waive such requirement to the extent the required recipients will receive the filing, order, proposal of decision, notice, or other process by electronic means or will receive notice of and access to the filing, order, proposal of decision, notice, or other process through an electronic filing system.
(c) Any order, rule, procedure, or practice issued under subsection (b) of this section shall include exceptions to accommodate parties and other participants who are unable to file or receive documents by electronic means.
(d) Subsection (b) of this section shall not apply to the requirements for service of citations and notices in writing as set forth in sections 111(b), 111a(i), and 2804 of this title.
(Added 2013, No. 91 (Adj. Sess.), § 4, eff. Feb. 4, 2014.)
§ 12 Review by Supreme Court
A party to a cause who feels aggrieved by the final order, judgment, or decree of the Commission may appeal to the Supreme Court. However, the Commission, in its discretion and before final judgment, may permit an appeal to be taken by any party to the Supreme Court for determination of questions of law in the manner as the Supreme Court may by rule provide for appeals before final judgment from a Superior Court. Notwithstanding the provisions of the Vermont Rules of Civil Procedure or the Vermont Rules of Appellate Procedure, neither the time for filing a notice of appeal nor the filing of a notice of appeal, as provided shall operate as a stay of enforcement of an order of the Commission unless the Commission or the Supreme Court grants a stay under the provisions of section 14 of this chapter.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1967, No. 205, § 1; 1971, No. 242 (Adj. Sess.); 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 188; 2023, No. 85 (Adj. Sess.), § 339, eff. July 1, 2024.)
§ 13 Repealed
[Repealed]
1967, No. 205, § 3.
§ 14 Powers of Supreme Court
The Supreme Court may reverse or affirm the judgments, orders, or decrees of the Commission and may remand a cause to it with such mandates, as law or equity shall require; and the Commission shall enter judgment, order, or decree in accordance with such mandates. The transfer of the cause to the Supreme Court shall not vacate any judgment, order, or decree of the Commission, but the Supreme Court or, when not in session, a Justice thereof upon notice to interested parties, may suspend execution of the same as justice and equity require, unless otherwise specifically provided by law; provided, however, that the execution of rate orders shall not be suspended at the request of a utility unless the utility files with the Commission a bond running to the members of the Commission and their successors in office in an amount and with sureties approved by the Court or a Justice thereof conditioned that within 30 days after the termination of the proceedings the company shall repay to the persons from whom collected and after the effective date of the Commission’s final order all sums in excess of the rates finally determined to be just and reasonable.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 263, § 4(c), eff. July 31, 1961.)
§ 15 Decree of Commission; enforcement
A party to an order or decree of the Public Utility Commission or the Commission itself, or both, may complain to the Supreme Court for relief against any disobedience of or noncompliance with such order or decree. In such proceedings and upon such notice thereof to the parties as it shall direct, the Supreme Court shall hear and consider such petition and make such order and decree in the premises by way of writ of mandamus, writ of prohibition, injunction, or otherwise, concerning the enforcement of such order and decree of the Public Utility Commission as to law and equity shall appertain.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 16 Repealed
[Repealed]
1959, No. 186, § 2, eff. May 20, 1959.
§ 17 Fees of witnesses; duties of clerk
The fees of witnesses before the Commission shall be the same as in the Superior Court. In all causes on behalf of or for the convenience or safety of the public, and in the investigation of accidents, the fees of witnesses and the expense of summoning them shall be paid by the clerk of the Commission. From time to time, the clerk shall make requisition on the Commissioner of Finance and Management for money to pay the fees and expenses, and the Commissioner of Finance and Management shall issue warrants for them. The clerk shall quarterly, on February, May, August, and November 1, render to the Commissioner of Finance and Management an account of receipts and disbursements under this section, and pay any unexpended balance into the State Treasury.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1983, No. 195 (Adj. Sess.), § 5(b); 2023, No. 85 (Adj. Sess.), § 340, eff. July 1, 2024.)
§ 18 Production and examination of books; witnesses
So far as is necessary for the performance of its duties, the Public Utility Commission or the Commissioner of Public Service, the Directors for Public Advocacy and Regulated Utility Planning, and any other employee of the Department authorized by the Commissioner shall have power to examine the books, accounts, and papers of any company, receiver, trustee, or lessee owning or operating any line, plant, or property, subject to the Commission’s or the Department’s jurisdiction that in any way relate to or contain entries, data, or memoranda concerning any transaction substantially affecting the interests of the State of Vermont or consumers of utility services within the State, to subpoena witnesses, to administer oaths to them, and to examine them on all matters of which the Commission or Department has jurisdiction.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 183, § 1; 1971, No. 180 (Adj. Sess.), § 2, eff. March 28, 1972; 1979, No. 204 (Adj. Sess.), § 5, eff. Feb. 1, 1981; 1983, No. 230 (Adj. Sess.), § 13.)
§ 19 Experts
With the approval of the Governor, the Commission may appoint and employ, at the expense of the State, engineers, accountants, legal counsel, and such number of clerks, stenographers, experts, and temporary employees as it deems necessary in the performance of its duties and in the investigation of matters within its jurisdiction.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1971, No. 191 (Adj. Sess.), § 13.)
§ 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, temporary employees, and other research, scientific, or engineering services:
(A) To assist the Commission or Department in any proceeding listed in subsection (b) of this section.
(B) To monitor compliance with any formal opinion or order of the Commission.
(C) In proceedings under section 248 of this title, to assist other State agencies that are named parties to the proceeding where the Commission or Department determines that they are essential to a full consideration of the petition, or for the purpose of monitoring compliance with an order resulting from such a petition.
(D) In addition to the services in subdivisions (1)(A)-(C) of this subsection (a), in proceedings under subsection 248(h) of this title, by contract with the regional planning commission of the region or regions affected by a proposed facility, to assist in determining conformance with local and regional plans and to obtain the commission’s data, analysis, and recommendations on the economic, environmental, historic, or other impact of the proposed facility in the region.
(E) To assist in monitoring the ongoing and future reliability and the postclosure activities of any nuclear generating plant within the State. In this section, “postclosure activities” includes planning for and implementation of any action within the State’s jurisdiction that shall or will occur when the plant permanently ceases generating electricity.
(2) The Agency of Natural Resources may authorize or retain legal counsel, official stenographers, expert witnesses, advisors, temporary employees, and other research, scientific, or engineering services to:
(A) Assist the Agency of Natural Resources in any proceeding under section 248 of this title.
(B) Monitor compliance with an order issued under section 248 of this title.
(C) Assist the Commission or the Department of Public Service in any proceedings described in subdivisions (b)(9)(Federal Energy Regulatory Commission) and (11)(Nuclear Regulatory Commission) of this section. Allocation of Agency of Natural Resources costs under this subdivision (C) shall be in the same manner as provided under subdivisions (b)(9) and (11) of this section. The Agency of Natural Resources shall report annually to the Joint Fiscal Committee all costs incurred and expenditures charged under the authority of this subsection (a) with respect to proceedings under subdivision (b)(9) of this section and the purpose for which such costs were incurred and expenditures made.
(D) Assist in monitoring the postclosure activities of any nuclear generating plant within the State.
(3) The Department of Health may authorize or retain legal counsel, official stenographers, expert witnesses, advisors, temporary employees, and other research, scientific, or engineering services to assist in monitoring the postclosure activities of any nuclear generating plant within the State.
(4) The Department of Public Safety, Division of Emergency Management and Homeland Security may authorize or retain legal counsel, official stenographers, expert witnesses, advisors, employees, and other research, scientific, or engineering services, or other planning expenses to assist in monitoring the postclosure activities of any nuclear generating plant within the State.
(5) The Agency of Agriculture, Food and Markets may authorize or retain legal counsel, official stenographers, expert witnesses, advisors, temporary employees, and other research, scientific, or engineering services to:
(A) assist the Agency of Agriculture, Food and Markets in any proceeding under section 248 of this title; or
(B) monitor compliance with an order issued under section 248 of this title.
(6) The personnel authorized by this section shall be in addition to the regular personnel of the Commission or the Department of Public Service or other State agencies; and in the case of the Department of Public Service or other State agencies may be retained only with the approval of the Governor and after notice to the applicant or the company or companies involved. The Commission or the Department of Public Service shall fix the amount of compensation and expenses to be paid such additional personnel, except that the Agency of Natural Resources, the Department of Health, the Department of Public Safety, Division of Emergency Management and Homeland Security, or the Agency of Agriculture, Food and Markets, respectively, shall fix the amount of compensation and expenses to be paid to additional personnel that it retains under subdivision (2), (3), (4), or (5) of this subsection.
(b) Proceedings, including appeals, for which additional personnel may be retained are:
(1) Hearings resulting from a utility request to seek an increase in its rates, tolls, or charges, including hearings resulting from complaints against the proposed increase.
(2) Hearings resulting from a petition by a utility or a person operating a utility to issue stock, bonds, notes, or other evidences of indebtedness for which the approval of the Commission is required by law.
(3) Hearings resulting from a petition for a merger, consolidation, or acquisition for which the approval of the Commission is required by law.
(4) Hearings resulting from a petition for a certificate of public good.
(5) Hearings resulting from a petition to acquire property through the exercise of eminent domain under section 110 et seq. of this title.
(6) Hearings resulting from an investigation initiated by the Commission or resulting from a petition brought by the Department.
(7) Proceedings under chapter 13 of this title relating to regulation of cable television systems, provided that due regard shall be taken of a cable television company’s size and gross operating revenues.
(8) Hearings resulting from opinions requested under subsection 248(h) of this title.
(9) Proceedings at the Federal Energy Regulatory Commission that involve Vermont utilities or that may affect the interests of the State of Vermont. Costs under this subdivision shall be charged to the involved electric or natural gas companies pursuant to subsection 21(a) of this title. In cases where the proceeding is generic in nature, the costs shall be allocated to electric or natural gas companies in proportion to the benefits sought for the customers of such companies from such advocacy. The Public Utility Commission and the Department of Public Service shall report quarterly to the Joint Fiscal Committee all costs incurred and expenditures charged under the authority of this subsection, and the purpose for which such costs were incurred and expenditures made.
(10) Proceedings under the federal Telecommunications Act of 1996.
(11) Proceedings at the Nuclear Regulatory Commission that involve Vermont utilities or that may affect the interests of the State of Vermont. Costs under this subdivision shall be charged to the involved electric companies pursuant to subsection 21(a) of this title. In cases where the proceeding is generic in nature, the costs shall be allocated to electric companies in proportion to the benefits sought for the customers of such companies from such advocacy.
(12) Proceedings at the U.S. Bankruptcy Court that involve Vermont utilities or that may affect the interests of the State of Vermont. Costs under this subdivision shall be charged to the involved utilities pursuant to subsection 21(a) of this title. In cases where the proceeding is generic in nature, the costs shall be allocated to utilities in proportion to the benefits sought for the customers of such companies from such advocacy.
(13) Proceedings before the Federal Communications Commission or related forums that involve Vermont utilities or that may affect the interests of the State of Vermont. Costs under this subdivision shall be charged, pursuant to subsection 21(a) of this title, to the companies providing telecommunications services on a common carrier basis. In cases where the proceeding is generic in nature, the costs shall be allocated to companies in proportion to the benefits sought for their customers from such advocacy.
(14) Proceedings before the Federal Communications Commission or related forums that involve a company that owns a cable television system holding a certificate of public good and delivering services in Vermont or that may affect the interests of the State of Vermont. Costs under this subdivision shall be charged to the company pursuant to subsection 21(a) of this title. In cases where the proceeding is generic in nature, the costs shall be allocated to companies in proportion to the benefits sought for their customers from such advocacy.
(15) Proceedings before any State or federal court concerning a company holding or a facility subject to a certificate issued under this title if the proceedings may affect the interests of the State of Vermont. Costs under this subdivision (15) shall be charged to the involved company pursuant to subsection 21(a) of this title. In cases where the proceeding is generic in nature, the costs shall be allocated to companies in proportion to the benefits sought for their customers from such advocacy.
(c) Persons employed by the State are competent to be designated to act for the same purposes and in lieu of or in conjunction with additional personnel retained under this section. However, when so acting, they shall not receive compensation in addition to their regular pay.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 258, § 1, eff. July 31, 1961; 1975, No. 254 (Adj. Sess.), § 154; 1979, No. 204 (Adj. Sess.), § 6, eff. Feb. 1, 1981; 1987, No. 65, § 7, eff. May 28, 1987; 1987, No. 271 (Adj. Sess.), § 16, eff. June 21, 1988; 1987, No. 273 (Adj. Sess.), § 4, eff. June 21, 1988; 1989, No. 63, § 1, eff. May 22, 1989; 1995, No. 182 (Adj. Sess.), § 12, eff. May 22, 1996; 1997, No. 135 (Adj. Sess.), § 1; 1999, No. 49, § 150; 1999, No. 155 (Adj. Sess.), § 12h; 2001, No. 143 (Adj. Sess.), §§ 47, 48; 2003, No. 98 (Adj. Sess.), § 1; 2009, No. 146 (Adj. Sess.), § F25; 2011, No. 47, § 20n, eff. May 25, 2011; 2015, No. 172 (Adj. Sess.), § E.233; 2023, No. 85 (Adj. Sess.), § 341, eff. July 1, 2024.)
§ 21 Particular proceedings and activities; assessment of costs
(a) An agency may allocate the portion of the expense incurred or authorized by it in retaining additional personnel pursuant to section 20 of this chapter to the applicant or the company or companies involved. As used in this section, “agency” means an agency, board, commission, or department of the State enabled to authorize or retain personnel under section 20 of this chapter.
(1) The Commission shall upon petition of an applicant or company to which costs are proposed to be allocated, review and determine, after opportunity for hearing, having due regard for the size and complexity of the project, the necessity and reasonableness of the costs, and may amend or revise the allocations. Nothing in this section shall confer authority on the Commission to select or decide the personnel, the expenses of whom are being allocated, unless such personnel are retained by the Commission. Prior to allocating costs, the Commission shall make a determination of the purpose and use of the funds to be raised, identify the recipient of the funds, provide for allocation of costs among companies to be assessed, indicate an estimated duration of the retention of personnel whose costs are being allocated, and estimate the total costs to be imposed. With the approval of the Commission, the estimates may be revised as necessary. From time to time during the progress of the work of the additional personnel, the agency retaining the personnel shall render to the company detailed statements showing the amount of money expended or contracted for in the work of the personnel, which statements shall be paid by the applicant or the company into the State Treasury at the time and in the manner as the agency may reasonably direct.
(2) In any proceeding under section 248 of this title, the Agency of Natural Resources may allocate the portion of the expense incurred in retaining additional staff authorized in subsection (a) of this section only if the following apply:
(A) the Agency of Natural Resources does not have the expertise, and the retention of such expertise is required to fulfill its statutory obligations in the proceeding; and
(B) the Agency of Natural Resources allocates only that portion of the cost for such expertise that exceeds the fee paid by the applicant under section 248b of this title.
(b) When regular employees of an agency are employed in the particular proceedings and activities described in section 20 of this title, the agency may also allocate the portion of its costs and expenses to the applicant or the company or companies involved. The costs of regular employees shall be computed on the basis of working days within the salary period, except that the Department of Public Safety, Division of Emergency Management and Homeland Security may allocate the full cost of the regular employee. The manner of assessment and of making payments shall otherwise be as provided for additional personnel in subsection (a) of this section. However, with respect to proceedings under section 248 of this title, the Agency of Natural Resources shall not allocate the costs of regular employees.
(c) With the approval of the Governor, the Department of Public Service may also allocate such portion of expense incurred by it in administering the purchase of electric energy or power or natural gas from outside the State, to the electric or gas distribution companies, cooperative, municipal or privately owned, to which such energy, power, or gas is sold, in proportion to the purchases thereof to such companies. When regular employees are employed on such work, their cost shall be computed on the basis of working days within the salary period. The manner of assessment and making payments shall otherwise be as provided for additional personnel in subsection (a) of this section.
(d) The Agency of Natural Resources may allocate expenses under this section only for costs in excess of the amount specified in 3 V.S.A. § 2809(d)(1)(A).
(e) Annually on or before January 15, each agency shall report to the Senate Committee on Natural Resources and Energy and the House Committee on Environment and Energy the total amount of expenses allocated under this section during the previous fiscal year. The report shall include the name of each applicant or company to whom expenses were allocated and the amount allocated to each applicant or company. The Agency of Agriculture, Food and Markets also shall submit a copy of its report to the Senate Committee on Agriculture and the House Committee on Agriculture, Food Resiliency, and Forestry.
(f) With the approval of the Governor, the Department of Public Service may allocate the expense incurred under 10 V.S.A. § 7063 in compensating members and alternate members of the Commission among the generators of low-level radioactive waste in the State. Any such allocation shall be in proportion to the volume of waste generated by each such generator.
(g) An agency may allocate such portion of expense incurred or authorized by it in compensating persons retained in the monitoring of postclosure activities of a nuclear generating plant pursuant to subsection 20(a) of this title to the plant whose activities are being monitored. Except for the Commission, the agency shall obtain the approval of the Governor before making such an allocation.
(h) Under subsections (f) and (g) of this section, the manner of assessment and making payments shall be as provided in subsection (a) of this section. A generator or plant to which expense is allocated under subsection (f) or (g) of this section may petition the Commission in accordance with the procedures of subsection (a) of this section.
(i) If an invoice for expenses incurred under subsection (a) of this section is not paid within 45 days after the date of mailing:
(1) the Commission may withhold the issuance of or revoke any related certificate of public good, provided the applicant is given an opportunity for hearing after reasonable notice;
(2) an agency may charge simple interest of one percent per month on the unpaid amount of the invoice for the period from 45 days after the date of mailing to the date of full payment of the amount due; and
(3) an agency may either contract with private collection agencies to collect principal and interest due or use setoff debt collection, as provided in 32 V.S.A. §§ 5931-5940.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 7, eff. Feb. 1, 1981; 1989, No. 63, § 2, eff. May 22, 1989; 1999, No. 49, § 151; 1999, No. 157 (Adj. Sess.), § 1; 2009, No. 146 (Adj. Sess.), § F26; 2011, No. 47, § 20o, eff. May 25, 2011; 2011, No. 139 (Adj. Sess.), § 27, eff. May 14, 2012; 2015, No. 57, § 17a; 2015, No. 172 (Adj. Sess.), § E.233.1; 2017, No. 113 (Adj. Sess.), § 173a; 2019, No. 175 (Adj. Sess.), § 23, eff. Oct. 8, 2020; 2023, No. 85 (Adj. Sess.), § 342, eff. July 1, 2024.)
§ 22 Tax to finance Department and Commission
(a) For the purpose of maintaining the Department of Public Service and Public Utility Commission, including expenses related to maintaining an adequate engineering, legal, and administrative force in the Department of Public Service and paying all the incidental expenses, including rents, each person, partnership, association, or private or municipal corporation conducting a business subject to the supervision of the Department of Public Service and Public Utility Commission, including electric cooperatives, shall pay into the State Treasury on or before April 15 annually, in addition to the taxes now required by law to be paid, a tax, at the rate named, according to the nature of the public service business engaged in by such person, partnership, association, or private or municipal corporation, based on the gross operating revenue received by such person, partnership, association, or private or municipal corporation in the conduct of such business in the State during the year next preceding, as shown by the annual report filed on or before such date with the Department of Public Service on the form prescribed by it and containing such information as may be necessary to enable the Department to determine the amount of the tax payable.
(1) The rate of tax for each type of public service company, for the purpose of maintaining the Department of Public Service, shall be the following:
(A) for companies, cooperative, municipal or privately owned, generating, distributing, selling, or transmitting electric energy, 0.00320 of gross operating revenue;
(B) for telephone companies, 0.003 of gross operating revenue or $300.00, whichever is greater;
(C) for gas companies, 0.00320 of gross operating revenue;
(D) for water companies, 0.0006 of gross operating revenue or $3.00, whichever is greater;
(E) for companies owning or operating a cable television system, 0.003 of gross operating revenue or $15.00, whichever is greater, $25,000.00 of which shall be used each year by the Department for special planning functions relating to cable television systems;
(F) for companies whose sole telephone business consists of owning customer-owned, coin-operated telephones with total annual revenues of less than $5,000.00, the choice of either 0.003 of gross operating revenue from telephone revenues or the amount of $12.00; and
(G) for all other companies named in section 203 of this title, 0.0006 of gross operating revenues.
(2) The rate of tax for each type of public service company, for the purpose of maintaining the Public Utility Commission, shall be the following:
(A) for companies, cooperative, municipal or privately owned, generating, distributing, selling, or transmitting electric energy, 0.00205 of gross operating revenue;
(B) for telephone companies, 0.002 of gross operating revenue or $200.00, whichever is greater;
(C) for gas companies, 0.00205 of gross operating revenue;
(D) for water companies, 0.0004 of gross operating revenue or $2.00, whichever is greater;
(E) for companies owning or operating a cable television system, 0.002 of gross operating revenue or $10.00, whichever is greater;
(F) for companies whose sole telephone business consists of owning customer-owned, coin-operated telephones with total annual revenues of less than $5,000.00, the choice of either 0.002 of gross operating revenue from telephone revenues or the amount of $8.00; and
(G) for all other companies named in section 203 of this title, 0.0004 of gross operating revenues.
(b) The taxes levied under this section shall not apply to sales of electrical power for resale.
(c) [Repealed.]
(d)(1) On June 30 of each year, any balance in the amount received by the Public Utility Commission from the special fund for the maintenance of engineering and accounting forces, after accounting for expenditures and encumbrances, in excess of 20 percent of the funds received by the Commission for that year shall be used in the manner provided by subdivision (3) of this subsection.
(2) On June 30 of each year, any balance in the amount received by the Department of Public Service from the special fund for the maintenance of engineering and accounting forces, after accounting for expenditures and encumbrances, in excess of 20 percent of the funds received by the Department for that year shall be used in the manner provided by subdivision (3) of this subsection.
(3) The excess balances determined under subdivisions (1) and (2) of this subsection shall be used in the next succeeding year to directly reduce the rates otherwise collected from the ratepayers of this State for the costs of the telephone Lifeline program authorized by subsection 218(c) of this title.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 258, § 2, eff. July 31, 1961; 1973, No. 247 (Adj. Sess.), § 1; 1979, No. 204 (Adj. Sess.), § 8, eff. Feb. 1, 1981; 1985, No. 115 (Adj. Sess.), § 1; 1985, No. 224 (Adj. Sess.), § 8; 1987, No. 272 (Adj. Sess.), § 1; 1989, No. 254 (Adj. Sess.), §§ 1, 2; 1991, No. 154 (Adj. Sess.), §§ 1, 2; 1995, No. 182 (Adj. Sess.), § 24; 1995, No. 182 (Adj. Sess.), § 24a, eff. July 1, 1998; 1995, No. 182 (Adj. Sess.), § 25, eff. May 22, 1996; 1997, No. 155 (Adj. Sess.), § 10; 2009, No. 33, § 58; 2019, No. 70, § 9; 2023, No. 85 (Adj. Sess.), § 343, eff. July 1, 2024.)
§ 22a Use of gross operating revenues tax
Expenses incurred by the Department for the support of activities relating to wholesale and retail sales of electricity shall be paid from revenues received by the Department from such sales.
(Added 1987, No. 272 (Adj. Sess.), § 2.)
§ 23 Public Service Reserve Fund
There is created a fund to be known as the Public Service Reserve Fund for the purpose of providing the financial means for the Public Utility Commission and the Department of Public Service to employ legal counsel, official stenographers, and disinterested competent persons to examine into and testify in any matter involved in a hearing under sections 218, 225, 226, and 227 of this title other than the hearings referred to in sections 20 and 21 of this chapter. Payments into the Public Service Reserve Fund shall be made as follows: All electric distribution companies, cooperative, municipal, and privately owned, which have been allocated a share of St. Lawrence power by the Department, shall pay into the State Treasury for such reserve on or before September 15, 1961 and September 15, 1962, in addition to the taxes now required by law to be paid, a tax to produce a total of $37,500.00 in the aggregate for each such payment to be paid by each such company in proportion to its purchase of St. Lawrence power, during the calendar years 1959 and 1960. Thereafter, on June 30 of each year, there shall be deducted from the balance in the special fund for the maintenance of the Department’s engineering and accounting force and personnel employed by the Commission the tax revenues payable under section 22 of this chapter in that year, and the balance thus determined shall be transferred from the special fund for the maintenance of the engineering and accounting force to the Public Service Reserve Fund; provided, however, that, if at June 30 of any year the balance in the public service reserve fund shall be in excess of $100,000.00, the amount of excess shall immediately be transferred to the General Fund.
(Added 1961, No. 258, § 2, eff. July 31, 1961; amended 1979, No. 204 (Adj. Sess.), § 9, eff. Feb. 1, 1981; 2023, No. 85 (Adj. Sess.), § 344, eff. July 1, 2024.)
§ 24 Payments from special funds; biennial report
All payments from the special fund for the maintenance of the engineering and accounting forces and from the Public Service Reserve Fund shall be dispensed from the State Treasury only upon warrants issued by the Commissioner of Finance and Management after receipt of proper statements describing services rendered and expenses incurred. A complete, detailed, and full accounting of all receipts from the taxes assessed in sections 22 and 23 of this title and all disbursements from the special fund for the maintenance of the engineering and accounting forces and from the Public Service Reserve Fund shall be contained in the Department’s biennial report to the General Assembly. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this section.
(Added 1961, No. 258, § 2, eff. July 31, 1961; amended 1979, No. 204 (Adj. Sess.), § 10, eff. Feb. 1, 1981; 1983, No. 195 (Adj. Sess.), § 5; 2011, No. 139 (Adj. Sess.), § 28, eff. May 14, 2012.)
§ 25 Assessment
When the Department of Public Service discovers from the examination of the return or otherwise that the revenue of any company, or any portion of it, has not been assessed, it may at any time within two years after the time when the return was due, assess the same and give notice to the company of the assessment, and within 30 days the company shall have an opportunity to confer with the Department as to the proposed assessment. The limitation of two years to the assessment of the tax or additional tax shall not apply to the assessment of additional taxes upon fraudulent returns. After the expiration of 30 days following the notification, the Department shall reassess the revenue of the company or any portion of it that it finds has not been assessed and shall give notice to the company so reassessed, of the amount of the tax and interest and penalties, if any, and the amount shall be due and payable within 10 days following the date of notice. No additional tax amounting to less than $1.00 shall be assessed.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 11, eff. Feb. 1, 1981; 2023, No. 85 (Adj. Sess.), § 345, eff. July 1, 2024.)
§ 26 Penalty
When such annual report for any year is not rendered to the Department of Public Service and the tax due thereon is not paid on or before April 15 next following, there shall be added to the tax an additional amount equal to five percent thereof or $1.00, whichever is greater, if such return is made and tax paid within 15 days after becoming due, and 25 percent of the tax or $10.00, whichever is greater, if such return is not made and tax paid within 15 days after becoming due. When a company, which has failed to file such return or has filed an incorrect or insufficient return and has been notified by the Department of its delinquency refuses or neglects within 20 days after such notice to file a proper return, or files a fraudulent return, the Department shall determine the tax due according to its best information and belief and shall increase the amount of the tax so determined by 50 percent or $20.00, whichever is greater. No assessment shall be made under this section unless made within two years from the date on which a correct return should have been filed but the limitation of two years to the assessment of such tax or additional tax shall not apply to the assessment of additional taxes upon fraudulent returns. In its discretion, the Department may waive the penalties mentioned in this section if it is satisfied that the default was for any justifiable cause, and it may extend the time for filing returns or paying such tax, not to exceed two months.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 12, eff. Feb. 1, 1981.)
§ 27 Review
The assessment by the Commission or Department of Public Service of any tax or penalty under the provisions of sections 20–25 of this chapter may be appealed to the Washington Superior Court. The appeal shall be filed within 90 days after the receipt by the company or its agent of written notice by the Commission or Department of its assessment. Appropriate proceedings shall be held and the relief, if any, to which the company may be found entitled may be granted and any taxes, interest, or penalties paid and found by the court to be illegally assessed shall be ordered refunded to the company with interest at six percent per annum from the time of payment, with costs and judgment entered accordingly.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 13, eff. Feb. 1, 1981; 1997, No. 161 (Adj. Sess.), § 20, eff. Jan. 1, 1998; 2023, No. 85 (Adj. Sess.), § 346, eff. July 1, 2024.)
§ 28 Hearings
For the purpose of ascertaining the correctness of any return or for the purpose of making an estimate of the taxes due from any company, the Department of Public Service shall have power to examine or cause to be examined by any agent or representative designated by it for that purpose any books, papers, records, or memoranda of the company or of any person or corporation in the State bearing upon the matters required to be included in the return, and may require the attendance of any person having knowledge in the premises, at any place in the county where such person resides, and may take testimony and require proof material for its information, with power to administer an oath to such person.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 14, eff. Feb. 1, 1981.)
§ 29 Right of inspection
The Public Utility Commission or the Commissioner of Public Service, the Directors for Public Advocacy and Regulated Utility Planning, and other employees of the Department authorized by the Commissioner may, during business hours, enter the offices, plants, exchanges, and stations or upon the land or lines of any company subject to supervision by the Department.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 15, eff. Feb. 1, 1981.)
§ 30 Penalties; affidavit of compliance
(a)(1) A person, company, or corporation subject to the supervision of the Commission or the Department of Public Service, who refuses the Commission or the Department of Public Service access to the books, accounts, or papers of such person, company, or corporation within this State, so far as may be necessary under the provisions of this title, or who fails, other than through negligence, to furnish any returns, reports, or information lawfully required by it, or who willfully hinders, delays, or obstructs it in the discharge of the duties imposed upon it, or who fails within a reasonable time to obey a final order or decree of the Commission, or who violates a provision of chapter 2, 7, 75, or 89 of this title, or a provision of section 231 or 248 of this title, or a rule of the Commission, shall be required to pay a civil penalty as provided in subsection (b) of this section after notice and opportunity for hearing.
(2) A person who violates a provision of chapter 3 or 5 of this title, except for the provisions of section 231 or 248 of this title, shall be required to pay a civil penalty after notice and opportunity for hearing. If the Commission determines that the violation substantially harmed or might have substantially harmed the public health, safety, or welfare; the interests of utility customers; the environment; the reliability of utility service; or the financial stability of the company, the Commission may impose a civil penalty as provided in subsection (b) of this section. If the Commission determines that the violation did not cause or was not likely to cause such harm, the Commission may impose a civil penalty of not more than $42,500.00, in addition to any financial benefit to the violator resulting from the violation.
(b) The Commission may impose a civil penalty under subsection (a) of this section of not more than $85,000.00, in addition to any financial benefit to the violator resulting from the violation. In the case of a continuing violation, an additional fine of not more than $42,500.00 per day may be imposed. In no event shall the total fine exceed the larger of:
(1) $170,000.00, in addition to any financial benefit to the violator resulting from a violation; or
(2) in the case of a company that pays gross receipt taxes under section 22 of this title, one-tenth of one percent of the gross Vermont revenues from regulated activity of the person, company, or corporation in the preceding year, in addition to any financial benefit to the violator resulting from a violation.
(c) In determining the amount of a fine under subsection (a) of this section, the Commission may consider any of the following factors:
(1) the extent that the violation harmed or might have harmed the public health, safety, or welfare, the environment, the reliability of utility service, or the other interests of utility customers;
(2) whether the respondent knew or had reason to know the violation existed and whether the violation was intentional;
(3) the economic benefit, if any, that could have been anticipated from an intentional or knowing violation;
(4) the length of time that the violation existed;
(5) the deterrent effect of the penalty;
(6) the economic resources of the respondent;
(7) the respondent’s record of compliance; and
(8) any other aggravating or mitigating circumstance.
(d) After notice and an opportunity to be heard, the Commission may order any person, company, or corporation subject to the supervision of the Commission or the Department of Public Service who negligently fails to furnish any returns, reports, or information lawfully required by it to pay a civil penalty of not more than $42,500.00, in addition to any financial benefit to the violator resulting from a violation.
(e) A person who knowingly, under oath, makes a false return or statement or who knowingly, under oath, when required by law, gives false information to the Commission, or the Department of Public Service, or who knowingly testifies falsely in any material matter before either of them, shall be deemed to have committed perjury and shall be punished accordingly.
(f) Violations of the rules of procedure for the determination of cases heard by the Public Utility Commission shall not be subject to the provisions of subsection (a), (b), or (c) of this section.
(g) At any time, the Commission may require a person, company, or corporation to file an affidavit under oath or affirmation that the person, company, or corporation or any facility or plant thereof is in compliance with the terms and conditions of an order, approval, certificate, or authorization issued under this title or rules adopted under this title. A request for an affidavit of compliance under this subdivision may be delivered by hand or by certified mail. Failure to file such an affidavit within the period prescribed by the Commission or the material misrepresentation of a fact in an affidavit shall be a violation subject to civil penalty under subdivision (a)(1) of this section and shall also be grounds for revocation or rescission of the order, approval, certificate, or authorization as to which the Commission required the affidavit.
(h) In accordance with the process set forth in this subsection, the Department may issue an administrative citation to a person the Department believes after investigation violated section 246, 248, 248a, or 8010 of this title, any rule adopted pursuant to those sections, or any certificate of public good issued pursuant to those sections.
(1) An administrative citation, whether draft or final, shall:
(A) state each provision of statute and rule and each condition of a certificate of public good alleged to have been violated;
(B) include a concise statement of the facts giving rise to the alleged violation and the evidence supporting the existence of those facts;
(C) request that the person take the remedial action specified in the notice or pay a civil penalty of not more than $5,000.00 for the violation, or both; and
(D) if remedial action is requested, state the reasons for seeking the action.
(2) The Department shall initiate the process by issuing a draft administrative citation to the person and sending a copy to each municipality in which the person’s facility is located, each adjoining property owner to the facility, the complainant if any, and, for alleged violations of the facility’s certificate of public good, each party to the proceeding in which the certificate was issued.
(A) At the time the draft citation is issued, the Department shall file a copy with the Commission and post the draft citation on its website.
(B) Commencing with the date of issuance, the Department shall provide an opportunity of 30 days for public comment on the draft citation. The Department shall include information on this opportunity in the draft citation.
(C) Once the public comment period closes, the Department:
(i) Shall provide the person and the Commission with a copy of each comment received.
(ii) Within 15 days following the close of the comment period, may file a revised draft citation with the Commission. The revised draft citation may be accompanied by a stipulation or agreed settlement between the person and the Department with a request for Commission approval.
(D) The Commission may on its own initiative open a proceeding to investigate the violation alleged in the draft citation. The Commission shall take any such action within 25 days following the close of the public comment period or the filing of a revised draft citation, whichever is later. The Commission proceeding shall supersede the draft citation.
(3) If the Commission has not opened a proceeding pursuant to subdivision (2)(D) of this subsection, the Department may issue a final administrative citation to the person. Within 30 days following receipt of a final administrative citation, the person shall respond in one of the following ways:
(A) Request a hearing before the Commission on the existence of the alleged violation, the proposed penalty, and the proposed remedial action.
(B) Pay any civil penalty set forth in the notice and agree to undertake such remedial action as is set forth in the notice and submit to the Department for its approval a plan for compliance. In such a case, the final administrative citation shall be enforceable in the same manner as an order of the Commission.
(C) Decline to contest the existence of the alleged violation and request a hearing on either the proposed penalty or remedial action, or both. When exercising this option, a person may agree to either the proposed penalty or remedial action and seek a hearing only on the penalty or action with which the person disagrees.
(4) When a person requests a hearing under subdivision (3) of this subsection, the Commission shall open a proceeding and conduct a hearing in accordance with the provisions of this section on the alleged violation and such remedial action and penalty as are set forth in the notice. Notwithstanding any contrary provision of this section, a penalty under this subdivision (4) shall not exceed $5,000.00.
(5) If a person pays the civil penalty set forth in a final administrative citation, then the Department shall be precluded from seeking and the Commission from imposing additional civil penalties for the same alleged violation unless the violation is continuing or is repeated.
(6) If a person agrees to undertake the remedial action set forth in a final administrative citation, failure to undertake the action or comply with a compliance plan approved by the Department shall constitute a separate violation.
(7) The Commission may approve disposition of a final administrative citation by stipulation or agreed settlement submitted before entry of a final order.
(8) Penalties assessed under this subsection shall be deposited in the General Fund except for any amounts the Commission directs to be used for the benefit of ratepayers generally.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 16, eff. Feb. 1, 1981; 1995, No. 99 (Adj. Sess.), § 1; 2009, No. 146 (Adj. Sess.), § F29; 2011, No. 47, § 10, eff. May 25, 2011; 2013, No. 89, § 13; 2017, No. 53, § 8; 2021, No. 42, § 4; 2023, No. 85 (Adj. Sess.), § 347, eff. July 1, 2024.)
§ 31 Depositions
The Commission or the Department of Public Service, their representatives, or any party in any investigation or hearing conducted by virtue of this title may cause the depositions of witnesses, wherever residing, to be taken in such manner and used for such purposes as the Supreme Court may by rule provide for taking depositions in civil actions in the Superior Court.
(Added 1961, No. 263, § 10, eff. July 31, 1961; amended 1971, No. 185 (Adj. Sess.), § 212, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1979, No. 204 (Adj. Sess.), § 17, eff. Feb. 1, 1981.)
§ 32 Injunction proceedings
Whenever the Department of Public Service is of the opinion that a company subject to its supervision is failing or omitting or is about to fail or omit to do anything required of it by law or by order of the Commission or is doing anything or permitting anything or is about to do anything or to permit anything to be done contrary to or in violation of law or of any order of the Commission, the Department of Public Service may commence an action or proceeding in the Superior Court for the purpose of having the violations or threatened violations stopped and prevented by injunction. An action or proceeding shall begin by a petition alleging the violation complained of and praying for appropriate relief by way of injunction. It shall be the duty of the court to specify the time, not exceeding 21 days after service of a copy of the petition, within which the company complained of must answer the petition, and the court may grant a temporary injunction in accordance with the laws of the State and rules in the case made and provided. The obtaining of a temporary injunction shall constitute a waiver by the State of its sovereign immunity to pay the person enjoined damages as the person may sustain by reason for the injunction if the court shall eventually decide that the State was not equitably entitled to it and the State shall be liable to pay to the person enjoined the sums as would be payable by any other person in the premises. In case of default in answer, or after answer, the court shall immediately inquire into the facts and circumstances in the manner as the court directs without other or formal pleadings and without respect to any technical requirement. Other persons or corporations as it shall seem to the court necessary or proper to join as parties in order to make its order, judgment, or writs effective may be joined as parties upon application of counsel to the Department. The final judgment in any action or proceeding shall either dismiss the action or proceeding or direct that an injunction be issued as prayed for in the petition or in such modified form as the court may determine will afford appropriate relief.
(Added 1961, No. 263, § 11, eff. July 31, 1961; amended 1979, No. 204 (Adj. Sess.), § 18, eff. Feb. 1, 1981; 2023, No. 85 (Adj. Sess.), § 348, eff. July 1, 2024.)
§ 33 Joint hearings and investigations
The Commission shall have full authority to make joint investigations, hold joint hearings within or outside the State of Vermont, and issue joint or concurrent orders in conjunction or concurrence with any official, board, commission, or agency of any state or of the United States, whether, in the holding of such investigations or hearings or in the making of such orders, the Commission shall function under agreements or compacts between states or under the concurrent power of states to regulate interstate commerce, or as an agency of the federal government, or otherwise.
(Added 1969, No. 39.)
§ 34 Public education on propane tank safety
The General Assembly finds that there is a need for a coordinated public safety message on the normal storage and handling of propane tanks and fuel oil tanks, and for the recovery of propane tanks and fuel oil tanks that are displaced by a natural disaster, such as flooding. The Department of Public Service, the Division of Fire Safety, and the Agency of Natural Resources shall cooperate with relevant municipal, professional, and industry organizations to develop a variety of educational materials for distribution to the public to provide information on any special treatment of propane tanks that might be required in the event of a natural disaster, such as flooding.
(Added 2011, No. 138 (Adj. Sess.), § 37, eff. May 14, 2012.)
Chapter 2 Building Energy
Subchapter 1 Building Energy Standards
§ 51 Residential building energy standards; stretch code
(a) Definitions. In this subchapter, the following definitions apply:
(1) “Builder” means the general contractor or other person in charge of construction, who has the power to direct others with respect to the details to be observed in construction.
(2) “Residential buildings” means one-family dwellings, two-family dwellings, and multi-family housing three stories or less in height.
(A) With respect to a structure that is three stories or less in height and is a mixed-use building that shares residential and commercial users, the term “residential building” shall include the living spaces in the structure and the nonliving spaces in the structure that serve only the residential users such as common hallways, laundry facilities, residential management offices, community rooms, storage rooms, and foyers.
(B) “Residential buildings” shall not include hunting camps.
(3) “Residential construction” means new construction of residential buildings, and the construction of additions, alterations, renovations, or repairs to an existing residential building.
(4) “IECC” means the International Energy Conservation Code of the International Code Council.
(5) “Stretch code” means a building energy code for residential buildings that achieves greater energy savings than the RBES and is adopted in accordance with subsection (d) of this section.
(b) Adoption of Residential Building Energy Standards (RBES). Residential construction shall be in compliance with the standards adopted by the Commissioner of Public Service in accordance with subsection (c) of this section.
(c) Revision and interpretation of energy standards. The Commissioner of Public Service shall amend and update the RBES by means of administrative rules adopted in accordance with 3 V.S.A. chapter 25. On or before January 1, 2011, the Commissioner shall complete rulemaking to amend the energy standards to ensure that, to comply with the standards, residential construction must be designed and constructed in a manner that complies with the 2009 edition of the IECC. After January 1, 2011, the Commissioner may direct the timely and appropriate revision of the RBES after the issuance of updated standards for residential construction under the IECC. The Department of Public Service shall provide technical assistance and expert advice to the Commissioner in the interpretation of the RBES and in the formulation of specific proposals for amending the RBES. Prior to final adoption of each required revision of the RBES, the Department of Public Service shall convene an Advisory Committee to include one or more mortgage lenders, builders, building designers, utility representatives, and other persons with experience and expertise, such as consumer advocates and energy conservation experts. The Advisory Committee may provide the Commissioner with additional recommendations for revision of the RBES.
(1) Any amendments to the RBES shall be:
(A) consistent with duly adopted State energy policy, as specified in section 202a of this title, and consistent with duly adopted State housing policy;
(B) evaluated relative to their technical applicability and reliability; and
(C) cost-effective and affordable from the consumer’s perspective.
(2) Each time the RBES are amended by the Commissioner, the amended RBES shall become effective upon a date specified in the adopted rule, a date that shall not be less than three months after the date of adoption. Persons commencing residential construction before the effective date of the amended RBES shall have the option of complying with the applicable provisions of the earlier or the amended RBES. After the effective date of the original or the amended RBES, any person commencing residential construction shall comply with the most recent version of the RBES.
(3) In the first cycle of revision of the RBES, the Commissioner shall establish standards for ventilation and shall consider revisions, including:
(A) a requirement for sealed combustion, induced or forced draft combustion equipment when exhaust-only ventilation systems are installed; and
(B) a requirement for adequate replacement air ducted directly to the combustion area of wood and pellet stoves and fireplaces.
(4)(A) As the Model Energy Code is primarily a performance-based code, the Department of Public Service shall develop and disseminate criteria that builders may use in lieu of any computer software, calculations and trade-off worksheets, or systems analysis to comply with the Code. An example package that complies with the Code shall be included in the rules and updated as appropriate.
(B) To provide for flexibility, additional packages that are equivalent to the example package under chapter 9 of the Model Energy Code and that satisfy the performance approach shall be developed by July 1, 1997 and disseminated by the Department of Public Service. Each time the RBES are amended by the Commissioner, the Department of Public Service shall develop modified compliance packages that will become available to the public by the date that the amendment becomes effective.
(5) A home energy rating conducted at the time of construction by a Vermont-accredited home energy rating organization shall be an acceptable means of demonstrating compliance if the rating indicates energy performance equivalent to the RBES.
(6) The Advisory Committee convened under this subsection, in preparing for the RBES update required on or about January 1, 1999, shall advise the Commissioner of Public Service with respect to the coordination of the RBES amendments with existing and proposed demand-side management programs offered in the State.
(d) Stretch code. The Commissioner may adopt a stretch code by rule. This stretch code shall meet the requirements of subdivision (c)(1) of this section. The stretch code shall be available for adoption by municipalities under 24 V.S.A. chapter 117 and, on final adoption by the Commissioner, shall apply in proceedings under 10 V.S.A. chapter 151 (Act 250) in accordance with subsection (e) of this section.
(e) Role of RBES and stretch code in Act 250. Substantial and reliable evidence of compliance with the RBES and, when adopted, the stretch code established and updated under this section shall serve as a presumption of compliance with 10 V.S.A. § 6086(a)(9)(F), except no presumption shall be created insofar as compliance with subdivision (a)(9)(F) involves the role of electric resistance space heating. In attempting to rebut a presumption of compliance created under this subsection, a challenge may only focus on the question of whether or not there will be compliance with the RBES and stretch code established and updated under this subsection. A presumption under this subsection may not be overcome by evidence that the RBES and stretch code adopted and updated under this section fail to comply with 10 V.S.A. § 6086(a)(9)(F).
(f) Certification.
(1) Issuance; recording. A certification may be issued by a builder, a licensed professional engineer, a licensed architect, or an accredited home energy rating organization. If certification is not issued by a licensed professional engineer, a licensed architect, or an accredited home energy rating organization, it shall be issued by the builder. Any certification shall certify that residential construction meets the RBES. The Department of Public Service will develop and make available to the public a certificate that lists key features of the RBES. Any person certifying shall use this certificate or one substantially like it to certify compliance with the RBES. Certification shall be issued by completing and signing a certificate and permanently affixing it to the outside of the heating or cooling equipment, to the electrical service panel located inside the building, or in a visible location in the vicinity of one of these three areas. The certificate shall certify that the residential building has been constructed in compliance with the requirements of the RBES. The person certifying under this subsection shall provide a copy of each certificate to the Department of Public Service and shall ensure that a certificate is recorded and indexed in the town land records. A builder may contract with a licensed professional engineer, a licensed architect, or an accredited home energy rating organization to issue certification and to indemnify the builder from any liability to the owner of the residential construction caused by noncompliance with the RBES.
(2) Condition precedent. Provision of a certificate as required by subdivision (1) of this subsection shall be a condition precedent to:
(A) issuance by the Commissioner of Public Safety or a municipal official acting under 20 V.S.A. § 2736 of any final occupancy permit required by the rules of the Commissioner of Public Safety for use or occupancy of residential construction commencing on or after July 1, 2013 that is also a public building as defined in 20 V.S.A. § 2730(a); and
(B) issuance by a municipality of a certificate of occupancy for residential construction commencing on or after July 1, 2013, if the municipality requires such a certificate under 24 V.S.A. chapter 117.
(g) Action for damages.
(1) Except as otherwise provided in this subsection, a person aggrieved by noncompliance with this section may bring a civil action against a person who has the obligation of certifying compliance under subsection (e) of this section. The person may seek injunctive relief, damages, court costs, and attorney’s fees. As used in this subdivision, “damages” means:
(A) costs incidental to increased energy consumption; and
(B) labor, materials, and other expenses associated with bringing the structure into compliance with RBES in effect on the date construction was commenced.
(2) A person’s failure to affix the certification as required by this section shall not be an affirmative defense in such an action against the person.
(3) The rights and remedies created by this section shall not be construed to limit any rights and remedies otherwise provided by law.
(h) Applicability and exemptions. The construction of a residential addition to a building shall not create a requirement that the entire building comply with this subchapter. The following residential construction shall not be subject to the requirements of this subchapter:
(1) Buildings or additions whose peak energy use design rate for all purposes is less than 3.4 BTUs per hour, per square foot, or less than one watt per square foot of floor area.
(2) Homes subject to Title VI of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. §§ 5401-5426).
(3) Buildings or additions that are neither heated nor cooled.
(4) Residential construction by an owner, if all of the following apply:
(A) The owner of the residential construction is the builder, as defined under this section.
(B) The residential construction is used as a dwelling by the owner.
(C) The owner in fact directs the details of construction with regard to the installation of materials not in compliance with RBES.
(D) The owner discloses in writing to a prospective buyer, before entering into a binding purchase and sales agreement, with respect to the nature and extent of any noncompliance with RBES. Any statement or certificate given to a prospective buyer shall itemize how the home does not comply with RBES and shall itemize which measures do not meet the RBES standards in effect at the time construction commenced. Any certificate given under this subsection (h) shall be recorded in the land records where the property is located and sent to the Department of Public Service within 30 days following sale of the property by the owner.
(i) Title validity not affected. A defect in marketable title shall not be created by a failure to issue certification or a certificate, as required under subsection (f) or subdivision (h)(4) of this section, or by a failure under that subsection to affix a certificate; to provide a copy of a certificate to the Department of Public Service; or to record and index a certificate in the town records.
(Added 1997, No. 20, § 1; amended 2005, No. 208 (Adj. Sess.), § 7; 2007, No. 92 (Adj. Sess.), § 8; 2009, No. 45, § 11, eff. May 27, 2009; 2009, No. 159 (Adj. Sess.), § 18b, eff. June 4, 2010; 2011, No. 47, § 20t, eff. May 25, 2011; 2013, No. 89, §§ 6, 11; 2017, No. 74, § 121; 2023, No. 85 (Adj. Sess.), § 349, eff. July 1, 2024; 2023, No. 151 (Adj. Sess.), § 3, eff. June 3, 2024.)
§ 52 Home energy rating organization accreditation
(a) The Department of Public Service shall carry out an accreditation process for home energy rating organizations, in consultation with representatives of interested parties, including builders, building designers, mortgage lenders, real estate licensees, home appraisers, utilities, nonutility fuel suppliers, the Vermont Housing Finance Agency, and contractors who provide home energy rating services. As part of the accreditation process, the Department of Public Service shall consider any national home energy rating system guidelines and shall determine whether each provider of home energy ratings in the State of Vermont complies with the accreditation criteria adopted pursuant to this section.
(b) Once the Department of Public Service carries out an accreditation process pursuant to subsection (a) of this section, no organization may provide home energy rating services in the State unless the organization has been accredited by the Department.
(c) The Department shall consult with the organizations described in subsection (a) of this section to facilitate a public information program to inform homeowners, renters, sellers, and others regarding the accreditation process and of the statewide home energy rating organizations accredited by the Department.
(Added 1997, No. 20, § 1; recodified 2013, No. 89, § 11.)
§ 53 Commercial building energy standards
(a) Definitions. In this subchapter, “commercial buildings” means all buildings that are not residential buildings as defined in subdivision 51(a)(2) of this title or farm structures as defined in 24 V.S.A. § 4413.
(1) The following commercial buildings, or portions of those buildings, separated from the remainder of the building by thermal envelope assemblies complying with this section shall be exempt from the building thermal envelope provisions of the standards:
(A) those that do not contain conditioned space; and
(B) those with a peak design rate of energy usage less than an amount specified in the commercial building energy standards (CBES) adopted under subsection (b) of this section.
(2) These standards shall not apply to equipment or portions of building energy systems that use energy primarily to provide for industrial or manufacturing processes.
(3) With respect to a structure that is a mixed-use building that shares residential and commercial users:
(A) if the structure is three stories or fewer in height, the term “commercial building” shall include all commercial uses within the structure and all common areas and facilities that serve both residential and commercial uses; and
(B) if the structure is four stories or more in height, the term “commercial building” shall include all uses and areas within the structure.
(b) Adoption of commercial building energy standards. Commercial building construction with respect to which any local building permit application or application for construction plan approval by the Commissioner of Public Safety pursuant to 20 V.S.A. chapter 173 has been submitted on or after January 1, 2007 shall be designed and constructed in substantial compliance with the standards contained in the 2005 Vermont Guidelines for Energy Efficient Commercial Construction, as those standards may be amended by administrative rule adopted by the Commissioner of Public Service.
(c) Revision and interpretation of energy standards. On or before January 1, 2011, the Commissioner shall complete rulemaking to amend the commercial building energy standards to ensure that commercial building construction must be designed and constructed in a manner that complies with ANSI/ASHRAE/IESNA standard 90.1-2007 or the 2009 edition of the IECC, whichever provides the greatest level of energy savings. The Commissioner of Public Service shall amend and update the CBES by means of administrative rules adopted in accordance with 3 V.S.A. chapter 25. The Commissioner may direct the timely and appropriate revision of the CBES after the issuance of updated standards for commercial construction under the IECC or ASHRAE/ANSI/IESNA standard 90.1, whichever provides the greatest level of energy savings. Prior to final adoption of each required revision of the CBES, the Department of Public Service shall convene an Advisory Committee to include one or more mortgage lenders; builders; building designers; architects; civil, mechanical, and electrical engineers; utility representatives; and other persons with experience and expertise, such as consumer advocates and energy conservation experts. The Advisory Committee may provide the Commissioner of Public Service with additional recommendations for revision of the CBES.
(1) Any amendments to the CBES shall be:
(A) consistent with duly adopted State energy policy, as specified in 30 V.S.A. § 202a; and
(B) evaluated relative to their technical applicability and reliability.
(2) Each time the CBES are amended by the Commissioner of Public Service, the amended CBES shall become effective upon a date specified in the adopted rule, a date that shall not be less than three months after the date of adoption. Persons submitting an application for any local permit authorizing commercial construction, or an application for construction plan approval by the Commissioner of Public Safety pursuant to 20 V.S.A. chapter 173, before the effective date of the amended CBES shall have the option of complying with the applicable provisions of the earlier or the amended CBES. After the effective date of the original or the amended CBES, any person submitting such an application for commercial construction in an area subject to the CBES shall comply with the most recent version of the CBES.
(3) The Advisory Committee convened under this subsection, in preparing for the CBES updates, shall advise the Department of Public Service with respect to the coordination of the CBES amendments with existing and proposed demand-side management programs offered in the State.
(4) The Commissioner of Public Service is authorized to adopt rules interpreting and implementing the CBES.
(5) The Commissioner of Public Service may grant written variances or exemptions from the CBES or rules adopted under this section where strict compliance would entail practical difficulty or unnecessary hardship, or is otherwise found unwarranted, provided that:
(A) Any such variance or exemption shall be consistent with State energy policy, as specified in section 202a of this title.
(B) Any petitioner for such a variance or exemption can demonstrate that the methods, means, or practices proposed to be taken in lieu of compliance with the rule or rules provide, in the opinion of the Commissioner, equal energy efficiency to that attained by compliance with the rule or rules.
(C) A copy of any such variance or exemption shall be recorded by the petitioner in the land records of the city or town in which the building is located.
(D) A record of each variance or exemption shall be maintained by the Commissioner, together with the certifications received by the Commissioner.
(d) Certification requirement.
(1) The design of commercial buildings shall be certified by the primary designer as compliant with CBES in accordance with this subsection, except as compliance is excused by a variance or exemption issued under subdivision (c)(5) of this section. If applicable law requires that the primary designer be a licensed professional engineer, licensed architect, or other licensed professional, a member of a pertinent licensed profession shall issue this certification. If one or more licensed professional engineers or licensed architects is involved in the design of the project, one of these licensees shall issue this certificate. If a licensed professional engineer or a licensed architect is not involved in designing the project, certification shall be issued by the builder. Any certification shall be accompanied by an affidavit and shall certify that the designer acted in accordance with the designer’s professional duty of care in designing the building, and that the commercial building was designed in substantial compliance with the requirements of the CBES. The Department of Public Service will develop and make available to the public a certificate that lists key requirements of the CBES, sets forth certifying language in accordance with this subdivision, and requires disclosure of persons relied upon by the primary designer who have contracted to indemnify the primary designer for damages arising out of that reliance. Any person certifying under this subdivision shall use this certificate or one substantially like it to satisfy these certification obligations. Certification shall be issued by completing and signing a certificate and permanently affixing it to the outside of the heating or cooling equipment, to the electrical service panel located inside the building, or in a visible location in the vicinity of one of these three areas. In certifying under this subsection, the certifying person may reasonably rely on one or more supporting affidavits received from other persons that contributed to the design affirming that the portions of the design produced by them were properly certifiable under this subsection. The certifying person may contract for indemnification from those on which the person relies pursuant to this subdivision (1) against damages arising out of that reliance. This indemnification shall not limit any rights of action of an aggrieved party.
(2) The construction of a commercial building shall be certified as compliant with CBES in accordance with this subsection, except as compliance is excused by a variance or exemption issued under subdivision (c)(5) of this section. This certification shall be issued by the general contractor, construction manager, or other party having primary responsibility for coordinating the construction of the subject building, or in the absence of such a person, by the owner of the building. Any certification shall be accompanied by an affidavit and shall certify that the subject commercial building was constructed in accordance with the ordinary standard of care applicable to the participating construction trades, and that the subject commercial building was constructed substantially in accordance with the construction documents including the plans and specifications certified under subdivision (1) of this subsection for that building. The Department of Public Service will develop and make available to the public a certificate that sets forth certifying language in accordance with this subdivision, and that requires disclosure of persons who have been relied upon by the person with primary responsibility for coordinating the construction of the building and who have contracted to indemnify that person for damages arising out of that reliance. The person certifying under this subdivision shall use that certificate or one substantially like it to satisfy these certification obligations. Certification shall be issued by completing and signing a certificate and permanently affixing it to the outside of the heating or cooling equipment, to the electrical service panel located inside the building, or in a visible location in the vicinity of one of these three areas. In certifying under this subdivision, the certifying person may reasonably rely on one or more supporting affidavits received from subcontractors or others engaged in the construction of the subject commercial building affirming that the portions of the building constructed by them were properly certifiable under this subdivision (2). The certifying person may contract for indemnification from those on which the person relies pursuant to this subdivision (2) against damages arising out of that reliance. This indemnification shall not limit any rights of action of an aggrieved party.
(3) Any person certifying under this subsection shall provide a copy of the person’s certificate and any accompanying affidavit to the Department of Public Service.
(4) Provision of a certificate as required by subdivision (1) of this subsection and of a certificate as required by subdivision (2) of this subsection shall be conditions precedent to:
(A) issuance by the Commissioner of Public Safety (or a municipal official acting under 20 V.S.A. § 2736) of any final occupancy permit required by the rules of the Commissioner of Public Safety for use or occupancy of a commercial building that is also a public building as defined in 20 V.S.A. § 2730(a); and
(B) issuance by a municipality of a certificate of occupancy for commercial construction commencing on or after July 1, 2013, if the municipality requires such a certificate under 24 V.S.A. chapter 117.
(e) Private right of action for damages against a certifier.
(1) Except as otherwise provided in this subsection, a person aggrieved by another person’s breach of that other person’s representations contained in a certification or supporting affidavit issued or received as provided under subsection (d) of this section, within 10 years after the earlier of completion of construction or occupancy of the affected commercial building or portion of that building, may bring a civil action in Superior Court against a person who has an obligation of certifying compliance under subsection (d) of this section alleging breach of the representations contained in that person’s certification. The person may seek injunctive relief, damages arising from the aggrieved party’s reliance on the accuracy of those representations, court costs, and reasonable attorney’s fees in an amount to be determined by the court. As used in this subdivision, “damages” includes costs incidental to increased energy consumption.
(2) A person’s failure to affix the certification as required by this section shall not be an affirmative defense in such an action against the person.
(3) The rights and remedies created by this section shall not be construed to limit any rights and remedies otherwise provided by law.
(4) The right of action established in this subsection may not be waived by contract or other agreement.
(5) It shall be a defense to an action under this subsection that either at the time of completion or at any time thereafter, the commercial building or portion of building covered by a certificate under subsection (d) of this section, as actually constructed, met or exceeded the overall performance standards established in the CBES in effect on the date construction was commenced.
(f) State or local enforcement. Any person who knowingly makes a false certification under subsection (d) of this section, or any party who fails to certify under subsection (d) of this section when required to do so, shall be subject to a civil penalty of not more than $250.00 per day, up to $10,000.00 for each year the violation continues.
(g) Title validity not affected. A defect in marketable title shall not be created by a failure to record a variance or exemption pursuant to subdivision (c)(5) of this section, by a failure to issue certification or a certificate, as required under subsection (d) of this section, or by a failure under that subsection to affix a certificate or provide a copy of a certificate to the Department of Public Service.
(Added 2005, No. 208 (Adj. Sess.), § 8; amended 2007, No. 92 (Adj. Sess.), § 9; 2009, No. 45, § 12, eff. May 27, 2009; 2011, No. 47, § 20u, eff. May 25, 2011; 2013, No. 89, §§ 7, 11; 2015, No. 23, § 150; 2017, No. 74, § 122; 2023, No. 85 (Adj. Sess.), § 350, eff. July 1, 2024; 2023, No. 151 (Adj. Sess.), § 4, eff. June 3, 2024.)
§ 54 Compliance plan
The Commissioner of Public Service:
(1) Shall issue a plan for achieving compliance with the energy standards adopted under this subchapter no later than February 1, 2017 in at least 90 percent of new and renovated residential and commercial building space. In preparing this plan, the Department shall review enforcement mechanisms for building energy codes that have been adopted in other jurisdictions and shall solicit the comments and recommendations of one or more mortgage lenders; builders; building designers; architects; civil, mechanical, and electrical engineers; utility representatives; environmental organizations; consumer advocates; energy efficiency experts; the Attorney General; and other persons who are potentially affected or have relevant expertise.
(2) May:
(A) Establish active training and enforcement programs to meet the energy standards adopted under this subchapter.
(B) Establish a system for measuring the rate of compliance each year with the energy standards adopted under this chapter. If such a system is established, the Commissioner also shall provide for such annual measurement.
(C) Adopt administrative rules pursuant to 3 V.S.A. chapter 25 to implement this subdivision (2). To the extent the implementation of this subdivision (2) places obligations on persons outside the Department of Public Service, such obligations shall be by means of administrative rules.
(Added 2009, No. 45, § 13, eff. May 27, 2009; amended 2013, No. 89, §§ 8, 11.)
§ 55 Priority housing projects; stretch code
A priority housing project as defined in 10 V.S.A. § 6001 shall meet or exceed the stretch codes established under this subchapter by the Department of Public Service.
(Added 2017, No. 69, § H.6, eff. June 28, 2017.)
Subchapter 2 Building Energy Labeling and Benchmarking
§ 61 Definitions
As used in this subchapter:
(1) “Benchmarking” means measuring the energy performance of a single building or portfolio of buildings over time in comparison to other similar buildings or to modeled simulations of a reference building built to a specific standard such as an energy code.
(2) “Commercial Working Group” means the Commercial and Multiunit Building Energy Labeling Working Group established by subsection 62(b) of this title.
(3) “Commission” means the Public Utility Commission.
(4) “Department” means the Department of Public Service.
(5) “Distribution company” means a company under the jurisdiction of the Commission that distributes electricity or natural gas for consumption by end users.
(6) “Energy efficiency utility” means an energy efficiency entity appointed under subdivision 209(d)(2) of this title.
(7) “Energy label” means the visual presentation in a consistent format of an energy rating for a building and any other supporting and comparative information. The label may be provided as a paper certificate or made available online, or both.
(8) “Energy rating” means a simplified mechanism to convey a building’s energy performance. The rating may be based on the operation of the building or modeled based on the building’s assets.
(9) “Home energy assessor” means an individual who assigns buildings a home energy performance score using a scoring system based on the energy rating.
(10) “Multiunit building” means a building that contains more than one independent dwelling unit or separate space for independent commercial use, or both.
(11) “Residential Working Group” means the Residential Building Energy Labeling Working Group established by subsection 62(a) of this title.
(12) “Unit holder” means the tenant or owner of an independent dwelling unit or separate space for independent commercial use within a multiunit building.
(Added 2019, No. 62, § 12.)
§ 62 Repealed
[Repealed]
2019, No. 62, § 15(c), effective June 30, 2021.
§ 63 Multiunit buildings; access to aggregated data
(a) Obligation; aggregation and release of data. On request of the owner of a multiunit building or the owner’s designated agent, each distribution company and energy efficiency utility shall aggregate monthly energy usage data in its possession for the unit holders in the building and release the aggregated data to the owner or agent. The aggregated data shall be anonymized.
(1) Under this section, the obligation to aggregate and release data shall accrue when the owner or agent:
(A) Certifies that the request is made for the purpose of benchmarking or preparing an energy label for the building.
(B) With respect to a multiunit building that has at least four unit holders, provides documentation certifying that, at least 14 days prior to submission of the request, each unit holder was notified that the energy usage data of the holder was to be requested and that this notice gave each unit holder an opportunity to opt out of the energy use aggregation. The owner or agent shall identify to the distribution company or energy efficiency utility requesting the data each unit holder that opted out.
(C) With respect to a multiunit building that has fewer than four unit holders, provides an energy usage data release authorization from each unit holder.
(2) A unit holder may authorize release of the holder’s energy usage data by signature on a release authorization form or clause in a lease signed by the unit holder. The provisions of 9 V.S.A. § 276 (recognition of electronic records and signatures) shall apply to release authorization forms under this subsection.
(3) After consultation with the Commercial Working Group, the Commissioner of Public Service shall prescribe forms for requests and release authorizations under this subsection. The request form shall include the required certification.
(b) Response period. A distribution company or energy efficiency utility shall release the aggregated energy use data to the building owner or designated agent within 30 days of its receipt of a request that meets the requirements of subsection (a) of this section.
(1) The aggregation shall exclude energy usage data for each unit holder who opted out or, in the case of a multiunit building with fewer than four unit holders, each unit holder for which a signed release authorization was not received.
(2) A distribution company may refer a complete request under subsection (a) of this section to an energy efficiency utility that possesses the requisite data, unless the data is to be used for a benchmarking program to be conducted by the company.
(Added 2019, No. 62, § 12.)
Chapter 3 Public Service Corporations, Other than Railroads; Formation, Financing, Eminent Domain
§ 101 Corporations subject to Commission; formation
(a) Subject to the additional or varied requirements of this chapter, a corporation may be formed pursuant to the provisions of the general corporation law for the sole purpose of conducting any one or more of the kinds of business, other than a railroad business, that are subject to regulation by the Public Utility Commission.
(b) Unless the context clearly requires otherwise, references in this title to a “corporation” mean and include an individual, partnership, association, corporation, limited liability company, municipality, cooperative, and any other legally recognized entity or person.
(c) Unless the context clearly requires otherwise, references in this title to “articles of incorporation” mean and include articles of organization, partnership agreements, or other documentation submitted to the Vermont Secretary of State to register or form a business.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 2023, No. 33, § 2, eff. July 1, 2023.)
§ 102 Petition; hearing; certificate
(a) Before the articles of incorporation are transmitted to the Secretary of State, the incorporators shall petition the Public Utility Commission to determine whether the establishment and maintenance of the corporation will promote the general good of the State and shall at that time file a copy of any petition with the Department. The Department, within 12 days, shall review the petition and file a recommendation regarding the petition in the same manner as is set forth in subsection 225(b) of this title. The recommendation shall set forth reasons why the petition shall be accepted without hearing or shall request that a hearing on the petition be scheduled. If the Department requests a hearing on the petition, or if the Commission deems a hearing necessary, it shall appoint a time and place either remotely accessible or in the county where the proposed corporation is to have its principal office for hearing the petition. Notice of the hearing shall be given in accordance with section 10 of this title and shall be published on the Commission’s website and once in a newspaper of general circulation in the county in which the proposed corporation is to have its principal office. The website notice shall be maintained through the date of the hearing. The newspaper notice shall include an internet address where more information regarding the petition may be viewed. The Department of Public Service, through the Director for Public Advocacy, shall represent the public at the hearing.
(b) If the Commission finds that the establishment and maintenance of the proposed corporation will promote the general good of the State, it shall give the incorporators a certificate to that effect under its seal.
(c) For good cause, after an opportunity for hearing, the Commission may amend or revoke any certificate awarded under the provisions of this section. If any certificate is revoked, the corporation shall no longer have authority to conduct any business that is subject to the jurisdiction of the Commission, whether or not regulation has been reduced or suspended under section 226a or 227a of this title.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 19, eff. Feb. 1, 1981; 1987, No. 87, § 4; 1995, No. 99 (Adj. Sess.), § 2; 2023, No. 33, § 4, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 351, eff. July 1, 2024; 2023, No. 142 (Adj. Sess.), § 4, eff. May 30, 2024.)
§ 103 Transmission to Secretary of State; record; effect
The articles of incorporation, the certificate of the Public Utility Commission, and the organization fee shall be transmitted to the Secretary of State. When such articles are recorded, such certificate shall be recorded therewith.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1995, No. 99 (Adj. Sess.), § 3.)
§ 104 Amendment of articles, certificate by Commission
Such a corporation or company shall not amend its articles of incorporation unless and until the Public Utility Commission, on petition and after such hearing and notice thereof as the Commission directs, certifies that such amendment will promote the general good of the State. Its certificate shall be recorded with the certificate of amendment.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1985, No. 244 (Adj. Sess.), § 2; 1995, No. 99 (Adj. Sess.), § 4.)
§ 105 Payment for stock with property; approved by Commission
When stock is issued for property other than cash, the value of the property fixed by the incorporators or stockholders must receive the approval of the Public Utility Commission.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1995, No. 99 (Adj. Sess.), § 5.)
§ 106 Ownership of stock in other corporations
When a corporation subject to the regulation of the Public Service Commission, prior to April 2, 1915, was authorized by its charter or otherwise to hold stock in another corporation, the public service corporation may petition the Public Utility Commission for authority to increase the amount of stock of the other corporation that may be owned by the petitioning corporation. If the Commission finds and adjudges that an increase will promote the general good of the State, it may issue its certificate and order authorizing the same, and the charter or articles of incorporation shall be amended to conform to the order.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1985, No. 224 (Adj. Sess.), § 3; 2023, No. 85 (Adj. Sess.), § 352, eff. July 1, 2024.)
§ 107 Acquisition of control of one utility company by another; supervision
(a) No company shall directly or indirectly acquire a controlling interest in any company subject to the jurisdiction of the Public Utility Commission, or in any company that directly or indirectly has a controlling interest in such a company, without the approval of the Public Utility Commission. Nothing in this section shall be deemed to affect the direct or indirect acquisition of a controlling interest in a company as defined in subdivision 501(3) of this title. The direct acquisition of the voting securities of a company defined in subdivision 501(3) shall continue to be regulated pursuant to section 515 of this title.
(b) Any company seeking to acquire such a controlling interest shall file a petition with the Public Utility Commission that describes the acquisition and sets forth the reasons why such an acquisition should be approved. The Public Utility Commission shall give notice of the petition to the Department of Public Service and other interested persons, and may conduct a hearing. The Commission may grant such approval only after due notice and opportunity for hearing and upon finding that such an acquisition will promote the public good.
(c) If any company acquires such a controlling interest without the prior approval of the Public Utility Commission, the Commission may then, after due notice and opportunity for hearing:
(1) approve the acquisition;
(2) modify any existing certificates or orders authorizing either or both companies to own or operate a public utility business under the provisions of this title;
(3) revoke any such existing certificates or orders, or revoke any orders approving the articles of incorporation of such companies; or
(4) declare the acquisition null and void, all as necessary to promote the public good.
(d) The Commission may by rule specify terms and conditions upon which companies shall give prior notice of acquisitions regulated by this section. Any such rule may specify categories of acquisitions that may be deemed to be approved if timely notice has been filed and an investigation has not been initiated by the Commission.
(e) For the purposes of this section:
(1) “Controlling interest” means 10 percent or more of the outstanding voting securities of a company; or such other interest as the Public Utility Commission determines, upon notice and opportunity for hearing following its own investigation or a petition filed by the Department of Public Service or other interested party, to constitute the means to direct or cause the direction of the management or policies of a company. The presumption that ten percent or more of the outstanding voting securities of a company constitutes a controlling interest may be rebutted by a company under procedures established by the Commission by rule.
(2) “Voting security” means any stock or security presently entitling the owner or holder to vote in the direction or management of the affairs of a company or any security issued under or pursuant to any agreement, trust, or arrangement where a trustee or trustees or agent or agents for the owner or holder of a security are presently entitled to vote in the direction or management of the affairs of a company.
(3) A specified per centum of the “outstanding voting securities of a company” means such amount of outstanding voting securities of such company as entitles the holder or holders thereof to cast that specified per centum of the aggregate votes that the holders of all the outstanding voting securities of such company are entitled to cast in the direction or management of the affairs of such company.
(1961, No. 183, § 7; amended 1971, No. 50, eff. April 14, 1971; 1989, No. 96, § 2, eff. June 14, 1989; 1993, No. 21, § 6, eff. May 12, 1993; 1999, No. 157 (Adj. Sess.), § 2; 2023, No. 85 (Adj. Sess.), § 353, eff. July 1, 2024.)
§ 108 Issue of bonds or other securities
(a) A domestic corporation subject to the jurisdiction of the Public Utility Commission shall not mortgage nor pledge any of its corporate property nor issue any stocks, bonds, notes, or other evidences of indebtedness without the consent of the Public Utility Commission given on petition and after opportunity for hearing of the corporation or its incorporators and a finding of the Commission that the proposed action will be consistent with the general good of the State. Notice of the hearing shall be given as the Commission directs.
(1) The corporation may issue evidences of indebtedness payable within one year from the date of issue without such consent, provided such borrowing is necessary as an emergency to restore service immediately after damage by disaster or provided its total evidences of indebtedness so payable within one year from the date of issue do not exceed 20 percent of its total assets. If such evidences of indebtedness would cause its total evidences of indebtedness so payable within one year to exceed 20 percent of its total assets, then it shall give the Commission notice in writing of its intention so to do at least 10 days before the date of the proposed issue and an itemization in such detailed form as the Commission may prescribe. If the Commission determines after considering the notice and the said corporation’s report to the Commission that further inquiry is warranted, it shall order such corporation not to issue such evidences of indebtedness under this subdivision without the consent of the Commission given after opportunity for hearing; provided, however, that if the Commission does not make such an order within 10 days from the time it receives such notice under this subdivision, then such corporation may issue such evidences of indebtedness without the consent of the Public Utility Commission, and the Commission upon request shall so notify such corporation in writing; provided, however, that the failure of the Commission to so notify such corporation shall not affect the right of such corporation to issue the evidences of indebtedness described in its notice.
(2) Nothing in this section shall restrict the right of a common carrier by motor vehicle to issue evidences of indebtedness payable within one year from the date of issue without prior notice to or consent by the Commission.
(b) The provisions of this section shall not apply to the Vermont Public Power Supply Authority or to a public utility that meets each and all of the following four conditions:
(1) is incorporated in some state other than Vermont;
(2) is conducting an interstate and intrastate telephone business that is subject to regulation by the Federal Communications Commission in some respects;
(3) is conducting telephone operations in four or more states; and
(4) has less than 10 percent of its total investment in property used or useful in rendering service located within this State to the extent that such public utility may issue stock, bonds, notes, debentures, or other evidences of indebtedness not directly or indirectly constituting or creating a lien on any property used or useful in rendering service that is located within this State.
(c)(1) A municipality shall not issue bonds or notes or pledge its net revenues under 24 V.S.A. chapter 53, respecting the ownership or operation of a gas or electric utility, unless the Public Utility Commission first finds, upon petition of the municipality and after notice and an opportunity for hearing, that the proposed action will be consistent with the general good of the State.
(2) If the Public Utility Commission does not issue its ruling within 90 days following the filing of the petition, as may be extended by consent of the municipality, the issuance of the proposed bonds or notes or pledge of net revenues shall be deemed to be consistent with the general good of the State.
(3) If the Public Utility Commission issues a ruling in accordance with subdivision (1) of this subsection, or does not rule within the period specified in subdivision (2) of this subsection, a municipality must also have obtained voter approval in accordance with 24 V.S.A. chapter 53, if required, prior to issuing bonds or notes or pledging its net revenues.
(d) Notwithstanding the provisions of subsection (c) of this section, a municipality may:
(1) issue bonds or notes or pledge its net revenues payable within three years from the date of issue without such consent, provided such borrowing is necessary in an emergency to restore service immediately after damage by disaster;
(2) issue bonds or notes or pledge its net revenues payable within one year of the date of issuance without the consent otherwise required by this subdivision, provided its total bonds, notes, or evidences of indebtedness so payable within one year do not exceed 20 percent of its total assets; or
(3) issue bonds or notes without the consent otherwise required by this subdivision, provided:
(A) the amount of the issuance plus the amount of any bond or note issuances during the previous 12 calendar months does not exceed 20 percent of the municipality’s total assets; and
(B) after the proposed issuance, the total amount of the municipality’s outstanding bonds, notes, or evidences of indebtedness would not exceed 50 percent of its total assets.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 183, § 2; 1971, No. 66, eff. April 15, 1971; 1989, No. 111, § 12, eff. June 22, 1989; 1993, No. 21, § 7, eff. May 12, 1993; 1995, No. 99 (Adj. Sess.), § 6; 2019, No. 81, § 2; 2023, No. 85 (Adj. Sess.), § 354, eff. July 1, 2024.)
§ 109 Sales and leases; hearings
(a) Except in connection with replacement or exchange, a corporation or a foreign corporation subject to the jurisdiction of the Public Utility Commission shall not make a sale or lease or series of sales or leases in any one calendar year constituting 10 percent or more of the company’s property located within this State and actually used in or required for public service operations nor merge nor consolidate pursuant to the provisions of sections 301-307 of this title, nor after any such sale, lease, consolidation, or merger shall any subsequent like action be taken, except after opportunity for hearing by the Public Utility Commission and a finding by the Commission that the same will promote the general good of the State. Such notice of the hearing shall be given as the Commission directs. A certificate of consent of the Public Utility Commission shall be filed with the Secretary of State.
(b) No company owning or operating an electric generating plant in this State with a capacity of 80 megawatts or greater may sell or lease any real property or transmission facilities located at that plant that are required or may be required to generate electricity, interconnect generation facilities with electric transmission facilities, or transmit electricity from the plant, without first obtaining a certificate of consent from the Public Utility Commission.
(c) No company owning or operating an electric transmission facility located in this State that is capable of operating at 100 kilovolts or greater may sell or lease any real property or equipment that is required or may be required to transmit electricity using that facility without first obtaining a certificate of consent from the Public Utility Commission.
(d) To obtain a certificate of consent pursuant to subsection (b) or (c) of this section, the company shall notify the Commission and Department in writing of its intention to enter into such a sale or lease at least 45 days before the effective date of the proposed transaction. Within 30 days of receiving this notice, the Department shall file a written recommendation with the Commission as to whether it should consent to the proposed sale or lease, and whether further inquiry or hearing is warranted. Within 15 days of receiving the Department’s recommendation, and after considering the company’s notice and the Department’s recommendation, the Commission shall determine whether further inquiry into the proposed sale or lease is warranted and, if so, shall so proceed. If the Department recommends approval of the proposed transaction without further inquiry or opportunity for hearing, and if the Commission takes no further action within 15 days after the Department has filed such a recommendation, then the proposed transaction shall be deemed approved as consistent with the general good of the State.
(e) The Public Utility Commission shall issue a certificate of consent under this section only if it determines that the proposed transaction shall promote the general good of the State.
(f) Any notice provided by a company pursuant to subsection (d) of this section shall be accompanied by a statement containing the material terms of the proposed transaction and such further explanation of the proposed transaction as the Commission may prescribe. The Commission may adopt such rules as it deems appropriate for determining the necessity for and scope of any inquiry or hearing concerning a request for Commission consent to a sale or lease under subsection (b) or (c) of this section. In developing these rules, the Commission shall ensure that due consideration is given to issues such as potential ratepayer impacts of the transactions to be reviewed and least-cost integrated planning principles as defined in subdivision 218c(a)(1) of this title. The Commission’s rulemaking authority under this section shall include the discretion to:
(1) decrease to no less than 50 megawatts the threshold for review under subsection (b) of this section;
(2) establish a minimum value threshold to trigger review under subsection (b) or (c) of this section; and
(3) adopt or amend other rules appropriately to minimize duplicative regulatory review under this title.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1993, No. 21, § 8, eff. May 12, 1993; 2007, No. 93 (Adj. Sess.), § 1, eff. March 21, 2008.)
§ 110 Eminent domain; companies authorized
When it is necessary for a corporation formed under this chapter or a foreign corporation under the jurisdiction of the Public Utility Commission to acquire property within this State, or some easement or other limited right in property in order that it may render adequate service to the public in the conduct of its business, it may condemn property or right, as provided in sections 111–124 of this chapter. All other companies, as defined in sections 201 and 501 of this title, which are within the scope of sections 203 and 501 of this title, shall have the same power of condemnation and be subject to the same procedure as provided for condemnation by corporations subject to the jurisdiction of the Public Utility Commission.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1969, No. 61, eff. April 15, 1969; 1987, No. 271 (Adj. Sess.), § 17, eff. June 21, 1988; 2023, No. 85 (Adj. Sess.), § 355, eff. July 1, 2024.)
§ 110a Inclusion of communications facilities
When a gas or electric utility subject to the jurisdiction of the Commission files a petition to condemn an easement or limited right in property, there shall be a rebuttable presumption that access to the utility’s facilities provided pursuant to chapter 92 of this title shall be a necessary component of the utility’s rendering of adequate service to the public.
(Added 2007, No. 131 (Adj. Sess.), § 3.)
§ 111 Petition; notice of hearing
(a) Such corporation shall present a petition to the Public Utility Commission and to the Department of Public Service describing the property or right, and stating why it is unable to acquire it without condemnation, and why its acquisition is necessary. The Commission shall set a time and place for hearing such petition and shall issue a citation. The Department, after appropriate investigation, shall present at the hearing on the petition its position on the need for the acquisition, any alternatives to the acquisition, and its recommendations on the acquisition.
(b) The citation shall be served upon each person having any legal interest in the property, including each municipality and each planning body where the property is situate like a summons, or on absent persons in such manner as the Supreme Court may by rule provide for service of process in civil actions. The Commission, in its discretion, may schedule a joint hearing of some or all petitions relating to the same project and concerning properties or rights located in the same town or abutting towns.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1967, No. 205, § 2; 1971, No. 185 (Adj. Sess.), § 213, eff. March 29, 1972; 1979, No. 204 (Adj. Sess.), § 20, eff. Feb. 1, 1981.)
§ 111a Preexisting utility lines
(a) When a corporation seeks to condemn property or an easement or other right over property where a currently existing utility line capable of operating at 100 kilovolts or less has not been abandoned and was in place on July 1, 1993, there is a rebuttable presumption that the condemnation of the property right authorizing the existing utility line or lines is necessary in order that the petitioner may render service to the public, provided that the property right is limited to that which is required to allow the operation, maintenance, and repair of the existing line or lines, and does not:
(1) significantly alter the capabilities or capacity of the line or lines;
(2) materially alter the degree of land use associated with the presence of the line or lines; and
(3) authorize the company to perform replacements or upgrades that would have a significant impact under the criteria set forth in section 248 of this title.
(b) When a corporation seeks to condemn property or establish an easement or other right over property where a utility line, that has not been abandoned, was in place on July 1, 1993, the corporation shall present a petition to the Public Utility Commission and to the Department of Public Service describing the property or right, and why the action is necessary. The property or right shall be limited to that which is required to allow the operation, maintenance, and repair of the existing line or lines, subject to the limitations set forth in subsection (a) of this section. The Commission shall issue a citation upon each person whose property or right the petitioner proposes to condemn and each municipality and each planning body where the property is located, or on absent persons in such manner as the Supreme Court may by rule provide for service of process in civil actions, including by publication.
(c) Upon the filing of the petition with the Commission and Department, any pending actions and proceedings against the petitioner affecting its right to use and enjoy the subject property are stayed for the pendency of the condemnation proceeding before the Commission, and the petitioner may enter upon the property to be condemned for the purposes of examination and obtaining necessary information in order to proceed with the taking and to conduct the minimum amount of maintenance and repairs necessary to provide service.
(d) The Commission shall fix the time and the place for hearing.
(e) If the utility line for which the corporation seeks to acquire easements through condemnation under this section crosses more than one property, the corporation may petition the Commission to hold a single hearing to determine necessity for all persons subject to condemnation under subsection (b) of this section.
(f) A person owning or having an interest in lands or rights to be taken may stipulate as to the necessity of the taking. The stipulation shall be filed with the Commission. The Commission shall issue an order on necessity within 45 days upon receiving the stipulation.
(g) A stipulation under subsection (f) of this section shall be accompanied by an affidavit sworn to before a person authorized to take acknowledgments. The stipulation shall include the following:
(1) a recital that the person or persons executing the stipulation have examined the proposed easement, which includes a description of the property or rights to be taken; and
(2) an explanation of the legal and property rights affected.
(h) If a hearing is required, the Commission shall hear all persons whose property or right is the subject of the condemnation petition and who wish to be heard at the time and place appointed for the hearing. The Commission shall make findings of fact and, by its order, determine whether necessity requires the taking of the land and rights as set forth in the petition.
(i) Following a determination of necessity pursuant to subsection (f) or (h) of this section, the Commission shall expeditiously appoint a time and place for examining the premises and provide an opportunity for a hearing on the issue of compensation, giving at least 10 days’ notice in writing to the persons that are subject to the condemnation petition.
(j) There shall be rebuttable presumptions that compensation for the taking or use of property rights under the provision of this section shall be the diminution of value caused by the existence of such utility lines across the property at the time the petition was filed with the Commission and that, where a property owner acquired the property with the utility line already in place, the diminution in value was reflected in the terms of acquiring the property. Upon rebuttal of either of these presumptions under the standard set forth in subsection (m) of this section, the Commission shall determine compensation pursuant to the criteria established by subdivision 112(3) of this title.
(k)(1) When the Commission renders judgment, it shall send by registered mail to each of the parties in interest or their attorneys, within 30 days thereafter, a certified copy of such judgment. If the judgment is in favor of the petitioner, the Commission, in the same manner, shall send to such parties a certified copy of the findings which shall include a description of the property or right to be condemned. The petitioner shall cause a certified copy of the judgment and findings to be recorded in the clerk’s office of the town or towns in which such property is located within 30 days after the clerk receives the copies.
(2) Upon the payment or deposit of the amounts awarded by the Commission, with interest, in accordance with its order, the petitioner shall be the owner of the property or right described in the findings. However, when an appeal is taken as provided in section 12 of this title, such ownership shall be an equitable title only with right of possession until the judgment of the Supreme Court is complied with.
(l) Section 112 of this title does not apply to petitions filed under this section except as provided in subsection (j) of this section. An appeal or review relating to an action under this section shall be to the Supreme Court pursuant to section 12 of this title.
(m) The presumptions arising under subsections (a) and (j) of this section shall operate in accordance with the provisions of Vermont Rule of Evidence 301(a). These presumptions shall shift only the burden of production, and shall lose their effect as soon as any evidence to support a finding of the nonexistence of the presumed fact is introduced.
(n) Nothing in this section shall impact any permitting or regulatory requirements that may apply to the corporation.
(Added 2007, No. 131 (Adj. Sess.), § 4.)
§ 112 Findings; dams; assessment of damages; jury trial
(a) When the Commission finds:
(1) in the case of dams, that a certificate of public good authorizing the project as required, or a license from the Federal Power Commission has been granted;
(2) that the condemnation of property or right is necessary in order that the petitioner may render adequate service to the public in the conduct of the business which it is authorized to conduct, and in conducting which it will, according to the laws of this State, be under an obligation to serve the public on reasonable terms, and pursuant to the rules of the Commission;
(3) that the condemnation of the property or right will not unduly interfere with the orderly development of the region and scenic preservation; and
(4) that the condemnation of property or right is sought in order that the petitioner may render adequate service to the public in the conduct of such business, the Commission shall adjudge the petitioner entitled to condemn property or right, shall assess the compensation to be paid, and shall determine the time and manner of such payment.
(b) The compensation to be paid shall be based upon the value of the property on the day the petition is presented to the Commission, and shall include as separate elements the value of the property taken, impairment to the value of remaining property or rights of the owner, and consequential damages, including the damage to the owner’s business. Provided, however, if the petitioner or the person or persons owning or interested in such property or right are dissatisfied with the compensation assessed by the Commission, either the petitioner or such person or persons may, within 30 days after the order of the Commission is made, appeal to the Superior Court of the county within which such property or right, or any part thereof, is situated to have the amount of compensation reassessed and the time and manner of payment redetermined, and either party may demand and have a trial by jury.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 263, § 1, eff. July 31, 1961; 1967, No. 205, § 4; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1997, No. 161 (Adj. Sess.), § 21, eff. Jan. 1, 1998; 2023, No. 85 (Adj. Sess.), § 356, eff. July 1, 2024.)
§ 113 Compensation; where party cannot be found
When a person to whom compensation is due cannot be found, is under any legal disability, or is out of this State, the Commission may order the compensation to be deposited with the county clerk of the county where the hearing was held. The money shall be invested and paid out according to orders made by a Superior judge.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 2023, No. 85 (Adj. Sess.), § 357, eff. July 1, 2024.)
§ 114 Copy of order; record
When the Commission renders judgment, it shall send by registered mail to each of the parties in interest or their attorneys, within 30 days thereafter, a certified copy of such judgment. If the judgment is in favor of the petitioner, the Commission, in the same manner, shall send to such parties a certified copy of the findings which shall include a description of the property or right to be condemned. The petitioner shall cause a certified copy of the judgment and findings to be recorded in the clerk’s office of the town or towns in which such property is located, within 30 days after such copies are received by him or her.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 115 Effect of payment of awards
Upon the payment or deposit of the amounts awarded by the Commission, with interest, in accordance with its order, the petitioner shall be the owner of the property or right described in the findings. However, when an appeal is taken as provided in section 112 of this title, such ownership shall be an equitable title only with right of possession until the judgment of the Superior Court is complied with.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 116 Scope of application
Without limiting or enlarging the scope of sections 110-115 of this title, it is hereby specifically provided that they shall apply to the condemnation of rights to construct and maintain pipe lines, conduits, lines of poles, towers, or wires, and to rights to appropriate, divert, and flow back water.
§ 117 Rights acquired and not used
Where property, easements, or other rights are condemned under this chapter in order that the corporation may render adequate service to the public in the conduct of its business, and such property, easements, or rights are not so applied and used, they shall be subject to condemnation under this chapter for a public use by another public service corporation, other than a railroad.
§ 118 Taking burial grounds; condemnation
When it is necessary that a corporation formed under the provisions of this chapter or a foreign corporation engaged in public service should acquire or flood land used or set apart for a cemetery or burial ground, either public or private, or should acquire an easement or limited right in such cemetery or burial ground, in order that it may render adequate service to the public in the conduct of its business, or in order that it may build and maintain its storage basins, dams, powerhouses, or lines, it may condemn such property or right as provided in this chapter.
§ 119 Notice to municipality
Notice of such proceedings shall be given to the municipality in which the cemetery is located and such municipality shall be a party to the proceedings for all purposes.
§ 120 Removal of remains
The remains of the dead in such cemetery shall be removed by the selectboard or board of cemetery commissioners and interred in some suitable cemetery after final judgment and before the exercise of any rights in such cemetery.
§ 121 Notice to kindred
Before the removal of such remains, the selectboard or board of cemetery commissioners, if there are known relatives of the deceased residing in the State, shall give such relatives 30 days’ notice in writing of the intention so to do. If known relatives do not reside in the State but reside outside the State, then the remains shall not be so removed until after 60 days’ notice in writing thereof has been given to such relatives.
§ 122 Headstones or monuments erected
The selectboard or board of cemetery commissioners shall cause existing headstones or monuments to be removed and reerected to the memory of the deceased. Permanent markers shall be provided to designate the place or reinterment of those not so marked previously.
§ 123 Expense
The entire expense of whatever land may be necessary for the reinterment of remains and the cost of removal and reerection of headstones or monuments shall be paid by the corporation acquiring the burial ground and the easement.
(Amended 2023, No. 85 (Adj. Sess.), § 358, eff. July 1, 2024.)
§ 124 Appeal
The judgment and findings of the Commission shall be final, except that a party who feels himself or herself aggrieved thereby may appeal to the Supreme Court pursuant to the provisions of section 12 of this title. Such appeal shall suspend execution of the judgment of the Commission, but the Supreme Court, or a single Justice in vacation, may vacate the suspension as justice and equity require.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 125 Powers; annual report
A public service corporation shall have the privilege and be subject to the provisions of the general corporation law, and also to the provisions of chapter 5 of this title, except as such provisions are inconsistent with the provisions of this chapter. Such corporations shall not be required to make any annual report, except as provided in chapter 5 of this title.
(Amended 1985, No. 224 (Adj. Sess.), § 4.)
§ 126 Saving clause; corporations formed before April 2, 1915
All corporations formed prior to April 2, 1915, by special act or under the general laws of this State, that are conducting any business subject to regulation by the Public Utility Commission shall, with respect to acts done after that date, be deemed to be within the provisions of this chapter and the provisions of the general corporation law in like manner as a corporation formed under this chapter. However, a corporation formed shall not do any act in violation of any restriction contained in its charter.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1985, No. 224 (Adj. Sess.), § 5; 2023, No. 85 (Adj. Sess.), § 359, eff. July 1, 2024.)
§ 127 Utility poles in easements across private property
(a) Utility easements and State rules regarding utility rights of way and pole attachments shall include, as an authorized utility use, the installation of fiber-optic cable for purposes of providing broadband service to the public or for providing utility network management and monitoring, or both. The use of the utility easement and right-of-way is generally of the type contemplated in utility easements, does not materially burden the landowner beyond what was intended in the conveyance or condemnation, serves the public good, and facilitates the construction of broadband networks.
(b) This section shall apply to all utility easements and State rules in effect on or after June 8, 2021. This section shall not apply to an easement that contains an express prohibition on the installation and operation of fiber-optic cable.
(Added 2021, No. 71, § 19, eff. June 8, 2021; amended 2023, No. 85 (Adj. Sess.), § 360, eff. July 1, 2024.)
Chapter 5 State Policy; Plans; Jurisdiction and Regulatory Authority of Commission and Department
Subchapter 1 General Powers
§ 201 Definitions
As used in this chapter:
(1) “Company” or “companies” means and includes individuals, partnerships, associations, corporations, and municipalities owning or conducting any public service business or property used in connection therewith and covered by the provisions of this chapter. The term “company” or “companies” also includes electric cooperatives organized and operating under chapter 81 of this title, the Vermont Public Power Supply Authority to the extent not inconsistent with chapter 84 of this title, and the Vermont Hydroelectric Power Authority to the extent not inconsistent with chapter 90 of this title. In the context of actions requiring prior approval under section 107 of this title, the term “company” shall also mean any individual, partnership, association, corporation, group, syndicate, operating division, joint stock company, trust, other entity, or municipality that would be defined as a company pursuant to this section if such approval were to be granted.
(2) “Electric vehicle supply equipment” means a device or system designed and used specifically to transfer electrical energy to a plug-in electric vehicle as defined in 23 V.S.A. § 4(85), either as charge transferred via a physical or wireless connection, by loading a fully charged battery, or by other means. “Electric vehicle supply equipment available to the public” shall:
(A) be located at a publicly available parking space, which does not include a parking space that is part of or associated with a private residence or a parking space that is reserved for the exclusive use of an individual driver, vehicle, or group of drivers or vehicles including employees, tenants, visitors, residents of a common interest development, residents of an adjacent building, or customers of a business whose primary business is not electric vehicle charging;
(B) disclose all charges for the use of the electric vehicle supply equipment at the point of sale; and
(C) provide multiple payment options that allow access by the public, if a fee is required, and shall not require persons desiring to use such public electric vehicle supply equipment to pay a subscription fee or otherwise obtain a membership in any club, association, or organization as a condition of using such electric vehicle supply equipment, but may have different price schedules that are conditioned on a subscription or membership in a club, association, or organization.
(3) “Energy” means not only the traditional scientific characteristic of “ability to do work” but also the substances or processes used to produce heat, light, or motion, including petroleum or other liquid fuels, natural or synthetic fuel gas, solid carbonaceous fuels, solar radiation, geothermal sources, nuclear sources, biomass, organic waste products, wind, or flowing water.
(4) “Energy storage facility” means a stationary device or system that captures energy produced at one time, stores that energy for a period of time, and delivers or may deliver that energy as electricity to the grid for use at a future time.
(5) “Energy storage aggregation” means a virtual resource formed by combining multiple stationary energy storage devices at different points of interconnection on the distribution system.
(6) “Energy storage aggregator” means an entity other than a distribution utility that is operating an energy storage aggregation of 100 kW or greater aggregate nameplate capacity.
(7) “Thermal energy exchange” means piped noncombustible fluids used for transferring heat into and out of buildings for the purpose of avoiding, eliminating, reducing any existing or new on-site greenhouse gas emissions of all types of heating and cooling processes, including comfort heating and cooling, domestic hot water, and refrigeration.
(8) “Thermal energy exchange network” means all real estate, fixtures, and personal property operated, owned, used, or to be used for or in connection with or to facilitate distribution infrastructure project that supplies thermal energy to more than one household, dwelling unit, or network of buildings that are not commonly owned. This definition does not include a mutual benefit enterprise, cooperative or common interest community that is owned by the persons it serves and that provides thermal energy exchange services only to its members, a landlord providing thermal energy exchange services only to its tenants where the service is included in the lease agreement, or any entity that provides thermal energy exchange services only to itself.
(Amended 1969, No. 257 (Adj. Sess.), § 1; 1981, No. 236 (Adj. Sess.), § 3; 1985, No. 48, § 3; 1985, No. 224 (Adj. Sess.), § 6; 1989, No. 96, § 1, eff. June 14, 1989; 1991, No. 170 (Adj. Sess.), § 5, eff. May 15, 1992; 2003, No. 121 (Adj. Sess.), § 103, eff. June 8, 2004; 2019, No. 31, § 24; 2019, No. 59, § 30, eff. June 14, 2019; 2021, No. 54, § 5; 2023, No. 142 (Adj. Sess.), § 15, eff. May 30, 2024.)
§ 202 Electrical energy planning
(a) The Department of Public Service, through the Director for Regulated Utility Planning, shall constitute the responsible utility planning agency of the State for the purpose of obtaining for all consumers in the State proper utility service at minimum cost under efficient and economical management consistent with other public policy of the State. The Director shall be responsible for the provision of plans for meeting emerging trends related to electrical energy demand, supply, safety, and conservation.
(b) The Department, through the Director, shall prepare the Electrical Energy Plan for the State. The Plan shall be for a 20-year period and shall serve as a basis for State electrical energy policy. The Electrical Energy Plan shall be based on the principles of “least-cost integrated planning” set out in and developed under section 218c of this title. The Plan shall include at a minimum:
(1) an overview, looking 20 years ahead, of statewide growth and development as they relate to future requirements for electrical energy, including patterns of urban expansion, statewide and service area economic growth, shifts in transportation modes, modifications in housing types, and design, conservation, and other trends and factors that, as determined by the Director, will significantly affect State electrical energy policy and programs;
(2) an assessment of all energy resources available to the State for electrical generation or to supply electrical power, including, among others, fossil fuels, nuclear, hydroelectric, biomass, wind, fuel cells, and solar energy and strategies for minimizing the economic and environmental costs of energy supply, including the production of pollutants, by means of efficiency and emission improvements, fuel shifting, and other appropriate means;
(3) estimates of the projected level of electrical energy demand;
(4) a detailed exposition, including capital requirements and the estimated cost to consumers, of how such demand shall be met based on the assumptions made in subdivision (1) of this subsection and the policies set out in subsection (c) of this section;
(5) specific strategies for reducing electric rates to the greatest extent possible in Vermont over the most immediate six-year period, for the next succeeding six-year period, and long-term sustainable strategies for achieving and maintaining the lowest possible electric rates over the full 20-year planning horizon consistent with the goal of maintaining a financially stable electric utility industry in Vermont; and
(6) recommendations for regional and municipal energy planning and standards for issuing a determination of energy compliance pursuant to 24 V.S.A. § 4352.
(c) In developing the Plan, the Department shall take into account the protection of public health and safety; preservation of environmental quality; the relevant goals of 24 V.S.A. § 4302; the potential for reduction of rates paid by all retail electricity customers; the potential for reduction of electrical demand through conservation, including alternative utility rate structures; use of load management technologies; efficiency of electrical usage; utilization of waste heat from generation; and utility assistance to consumers in energy conservation.
(d) In establishing plans, the Director shall:
(1) Consult with:
(A) the public;
(B) Vermont municipal utilities and planning commissions;
(C) Vermont cooperative utilities;
(D) Vermont investor-owned utilities;
(E) Vermont electric transmission companies;
(F) environmental and residential consumer advocacy groups active in electricity issues;
(G) industrial customer representatives;
(H) commercial customer representatives;
(I) the Public Utility Commission;
(J) an entity designated to meet the public’s need for energy efficiency services under subdivision 218c(a)(2) of this title;
(K) other interested State agencies;
(L) other energy providers; and
(M) the regional planning commissions.
(2) To the extent necessary, include in the Plan surveys to determine needed and desirable plant improvements and extensions and coordination between utility systems, joint construction of facilities by two or more utilities, methods of operations, and any change that will produce better service or reduce costs. To this end, the Director may require the submission of data by each company subject to supervision, of its anticipated electrical demand, including load fluctuation, supplies, costs, and its plan to meet that demand and such other information as the Director deems desirable.
(e) The Department shall conduct public hearings on the final draft and shall consider the evidence presented at such hearings in preparing the final Plan. The Plan shall be adopted on or before January 1, 2016 and readopted in accordance with this section on or before every sixth January 15 thereafter, and shall be submitted to the General Assembly each time the plan is adopted or readopted. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the submission to be made under this subsection.
(f) After adoption by the Department of a final plan, any company seeking Commission authority to make investments, to finance, to site or construct a generation or transmission facility, or to purchase electricity or rights to future electricity shall notify the Department of the proposed action and request a determination by the Department whether the proposed action is consistent with the Plan. In its determination whether to permit the proposed action, the Commission shall consider the Department’s determination of its consistency with the Plan along with all other factors required by law or relevant to the Commission’s decision on the proposed action. If the proposed action is inconsistent with the Plan, the Commission may nevertheless authorize the proposed action if it finds that there is good cause to do so. The Department shall be a party to any proceeding on the proposed action, except that this section shall not be construed to require a hearing if not otherwise required by law.
(g) The Director shall annually review that portion of a Plan extending over the next six years. The Department, through the Director, shall biennially extend the Plan by two additional years and from time to time, and in any event every sixth year, institute proceedings to review a Plan and make revisions, where necessary. The six-year review and any interim revisions shall be made according to the procedures established in this section for initial adoption of the Plan. The six-year review and any revisions made in connection with that review shall be performed contemporaneously with readoption of the Comprehensive Energy Plan under section 202b of this title.
(h) The Plans adopted under this section shall become the electrical energy portion of the State Energy Plan.
(i) It shall be a goal of the Electrical Energy Plan to ensure, by 2028, that at least 60 MW of power are generated within the State by combined heat and power (CHP) facilities powered by renewable fuels as defined in section 8002 of this title. In order to meet this goal, the Plan shall include incentives for development and strategies to identify locations in the State that would be suitable for CHP. The Plan shall include strategies to ensure the consideration of CHP potential during any process related to the expansion of natural gas services in the State.
(j) For the purpose of assisting in the development of municipal and regional plans under 24 V.S.A. chapter 117, the Director shall, on request, provide municipal and regional planning commissions with publicly available information detailing the location of electric transmission and distribution infrastructure in the relevant municipality or region and the capacity of that infrastructure to accept additional electric generation facilities without modification. In providing this information, the Director shall be entitled to the assistance of the electric utilities that own electric transmission or distribution systems, or both, located in Vermont, including the ability to obtain from those utilities such publicly available data as the Director considers necessary to discharge his or her duties under this subsection.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 21, eff. Feb. 1, 1981; 1981, No. 236 (Adj. Sess.), § 6; 1983, No. 1, eff. Jan. 31, 1983; 1983, No. 46; 1983, No. 170 (Adj. Sess.), §§ 11, 12, eff. April 19, 1984; 1987, No. 87, § 3; 1991, No. 259 (Adj. Sess.), §§ 4, 5; 2003, No. 69, § 5, eff. June 17, 2003; 2007, No. 209 (Adj. Sess.), § 12; 2013, No. 34, § 18; 2013, No. 91 (Adj. Sess.), § 6, eff. Feb. 4, 2014; 2015, No. 174 (Adj. Sess.), § 7; 2017, No. 74, § 123; 2023, No. 85 (Adj. Sess.), § 361, eff. July 1, 2024.)
§ 202a State energy policy
It is the general policy of the State of Vermont:
(1) To ensure to the greatest extent practicable that Vermont can meet its energy service needs in a manner that is adequate, reliable, secure, and sustainable; that ensures affordability and encourages the State’s economic vitality, the efficient use of energy resources, and cost-effective demand-side management; and that is environmentally sound.
(2) To identify and evaluate, on an ongoing basis, resources that will meet Vermont’s energy service needs in accordance with the principles of reducing greenhouse gas emissions and least-cost integrated planning, including efficiency, conservation, and load management alternatives; wise use of renewable resources; and environmentally sound energy supply.
(3) To meet Vermont’s energy service needs in a manner that will achieve the greenhouse gas emissions reductions requirements pursuant to 10 V.S.A § 578 and is consistent with the Vermont Climate Action Plan adopted and updated pursuant to 10 V.S.A. § 592.
(Added 1981, No. 236 (Adj. Sess.), § 4; amended 1983, No. 170 (Adj. Sess.), § 13, eff. April 19, 1984; 1991, No. 259 (Adj. Sess.), § 1; 2019, No. 153 (Adj. Sess.), § 7, eff. Sept. 22, 2020.)
§ 202b State Comprehensive Energy Plan
(a) The Department of Public Service, in conjunction with other State agencies designated by the Governor, shall prepare a State Comprehensive Energy Plan covering at least a 20-year period. The Plan shall seek to implement the State energy policy set forth in section 202a of this title, including meeting the State’s greenhouse gas emissions reductions requirements pursuant to 10 V.S.A. § 578, and shall be consistent with the relevant goals of 24 V.S.A. § 4302 and with the Vermont Climate Action Plan adopted and updated pursuant to 10 V.S.A. § 592. The State Comprehensive Energy Plan shall include:
(1) a comprehensive analysis and projections regarding the use, cost, supply, and environmental effects of all forms of energy resources used within Vermont;
(2) recommendations for State implementation actions, regulation, legislation, and other public and private action to carry out the Comprehensive Energy Plan, including recommendations for State agency energy plans under 3 V.S.A. § 2291 and transportation planning under Title 19; and
(3) recommendations for regional and municipal energy planning and standards for issuing a determination of energy compliance pursuant to 24 V.S.A. § 4352.
(b) In developing or updating the Plan’s recommendations, the Department of Public Service shall seek public comment by holding public hearings in at least five different geographic regions of the State on at least three different dates, and by providing and maintaining notice on the Department’s website for at least 21 days before the day of each hearing and providing and maintaining reasonable notice consistent with best practices for public engagement. The notice shall include an internet address where more information regarding the hearings may be viewed.
(c) The Department shall adopt the State Comprehensive Energy Plan on or before January 1, 2016 and shall readopt the Plan on or before every sixth January 15 thereafter. On adoption or readoption, the Plan shall be submitted to the General Assembly. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to such submission.
(1) Upon adoption of the Plan, analytical portions of the Plan may be updated and published biennially.
(2) Every fourth year after the adoption or readoption of a Plan under this section, the Department shall publish the manner in which the Department will engage the public in the process of readopting the Plan under this section.
(3) The publication requirements of subdivisions (1) and (2) of this subsection may be met by inclusion of the subject matter in the Department’s biennial report.
(4) The Plan’s implementation recommendations shall be updated by the Department no less frequently than every six years. These recommendations shall be updated prior to the expiration of six years if the General Assembly passes a joint resolution making a request to that effect. If the Department proposes or the General Assembly requests the revision of implementation recommendations, the Department shall hold public hearings on the proposed revisions.
(d) Distribution of the Plan to members of the General Assembly shall be in accordance with the provisions of 2 V.S.A. § 20(a)-(c).
(e) The Commissioner of Public Service (Commissioner) shall file an annual report on progress in meeting the goals of the Plan. The report shall address each of the following sectors of energy consumption in the State: electricity, nonelectric fuels for thermal purposes, and transportation. In preparing the report, the Commissioner shall consult with the Secretaries of Administration, of Agriculture, Food and Markets, of Natural Resources, and of Transportation and the Commissioner of Buildings and General Services.
(1) The Commissioner shall file the report on or before January 15 of each year, commencing in 2019. The provisions of 2 V.S.A. § 20(d) shall not apply to this report.
(2) The Commissioner shall file the report with the House Committee on Environment and Energy and with the Senate Committees on Finance and on Natural Resources and Energy.
(3) For each sector, the report shall provide:
(A) In millions of British thermal units (MMBTUs) for the most recent calendar year for which data are available, the total amount of energy consumed, the amount of renewable energy consumed, and the percentage of renewable energy consumed. For the electricity sector, the report shall also state the amounts in megawatt hours (MWH) of retail sales and load for Vermont as well as for each retail electricity provider and the Vermont and New England summer and winter peak electric demand, including the hour and day of peak demand.
(B) Projections of the energy reductions and shift to renewable energy expected to occur under existing policies, technologies, and markets. The most recent available data shall be used to inform these projections and shall be provided as a supplement to the data described in subdivision (A) of this subdivision (3).
(C) Recommendations of policies to further the renewable energy requirements and goals set forth in statute and the Plan, along with an evaluation of the relative cost-effectiveness and equity-related impacts of different policy approaches.
(4) The report shall include an analysis setting forth how progress toward the goals of the Plan is supported by complementary work in avoiding or reducing energy consumption through efficiency and demand reduction. In this subdivision, “demand reduction” includes dispatchable measures, such as controlling appliances that consume energy, and nondispatchable measures, such as weatherization.
(5) The report shall include recommendations on methods to enhance the process for planning, tracking, and reporting progress toward meeting statutory energy requirements and the goals of the Plan. Such recommendations may include the consolidation of one or more periodic reports filed by the Department or other State agencies relating to renewable energy, with proposals for amending the statutes relevant to those reports.
(6) The report shall include a summary of the following information for each sector:
(A) major changes in relevant markets, technologies, and costs;
(B) average Vermont prices compared to the other New England states, based on the most recent available data; and
(C) significant Vermont and federal incentive programs that are relevant to one or more of the sectors.
(7) The report shall include the following information on progress toward meeting the Renewable Energy Standard (RES):
(A) An assessment of the costs and benefits of the RES based on the most current available data, including rate and economic impacts, customer savings, technology deployment, greenhouse gas emission reductions achieved both relative to 10 V.S.A § 578 requirements and societally, fuel price stability, effect on transmission and distribution upgrade costs, and any recommended changes based on this assessment.
(i) For the most recent calendar year for which data is available, each retail electricity provider’s retail sales and load, in MWh; required amounts of renewable energy for each category of the RES as set forth in section 8005 of this title; and amounts of renewable energy and tradeable renewable energy credits eligible to satisfy the requirements of sections 8004 and 8005 of this title actually owned by the Vermont retail electricity providers, expressed as a percentage of retail sales and total load.
(ii) The report shall summarize the energy transformation projects undertaken pursuant to section 8005 of this title, their costs and benefits, their avoided fossil fuel consumption and greenhouse gas emissions, and, if applicable, energy savings.
(iii) The report shall summarize statewide progress toward achieving each of the categories set forth in section 8005 of this title.
(iv) The report shall assess how costs and benefits of the RES are being distributed across State, to the extent possible given available data, by retail electricity service territory, municipality, and environmental justice focus populations, as defined by 3 V.S.A. § 6002. Such an assessment shall consider metrics to monitor affordability of electric rates.
(B) Projections, looking at least 10 years ahead, of the impacts of the RES.
(i) The Department shall consider at least three scenarios based on high, mid-range, and low energy price forecasts.
(ii) The Department shall provide an opportunity for public comment on the model during its development and make the model and associated documents available on the Department’s website.
(iii) The Department shall project, for the State, the impact of the RES in each of the following areas: electric utility rates, total energy consumption, electric energy consumption, fossil fuel consumption, and greenhouse gas emissions. The report shall compare the amount or level in each of these areas with and without the program.
(C) An assessment of whether the requirements of the RES have been met to date, and any recommended changes needed to achieve those requirements.
(D) A summary of the activities of distributed renewable generation programs that support the achievement of the RES, including:
(i) Standard Offer Program under section 8005a of this title, including the number of plants participating in the Program, the prices paid by the Program, and the plant capacity and average annual energy generation of the participating plants. The report shall present this information as totals for all participating plants and by category of renewable energy technology. The report also shall identify the number of applications received, the number of participating plants under contract, and the number of participating plants actually in service.
(ii) the net metering program, including: the current pace of net metering deployment, both statewide and within the service territory of each retail electricity provider; the ownership and transfer of the environmental attributes of energy generated by net metering systems and of any associated tradeable renewable energy credits; and any other information relevant to the costs and benefits of net metering.
(8) The report shall include any recommendations for statutory change related to sections 8004, 8005, 8005a, 8010, and 8011 of this title.
(9) For the report due in 2029, the Commission shall issue a report on whether it is reasonable to expect that there will be sufficient new regional renewable resources available for a retail electricity provider with 75,000 or more customers to meet its requirement under subdivision 8005(a)(4)(B)(i)(IV) of this title at or below the alternative compliance payment rate for the new renewable generation category of section 8005 of this title during the year beginning on January 1, 2032, or during the years beginning on January 1, 2033 or January 1, 2034. The Commission shall not be required to issue this report in a contested case under 3 V.S.A. chapter 25 but shall conduct a proceeding on the issue with opportunities for participation by the retail electricity providers, Vermont Public Power Supply Authority, Renewable Energy Vermont, and other members of the public. Notwithstanding the timeline specified in subdivision (e)(1) of this section, the Commission shall file this annual report on or before December 15, 2028.
(f) During the preparation of reports under this section, the Department shall provide an opportunity for the public to submit relevant information and recommendations.
(Added 1981, No. 236 (Adj. Sess.), § 5; amended 1991, No. 259 (Adj. Sess.), § 2; 2013, No. 91 (Adj. Sess.), § 7, eff. Feb. 4, 2014; 2015, No. 174 (Adj. Sess.), § 8; 2017, No. 74, § 124; 2017, No. 139 (Adj. Sess.), § 8; 2019, No. 31, § 4; 2019, No. 153 (Adj. Sess.), § 8, eff. Sept. 22, 2020; 2023, No. 179 (Adj. Sess.), § 7, eff. July 1, 2024.)
§ 202c State telecommunications; policy and planning
(a) The General Assembly finds that advances in telecommunications technology and changes in federal regulatory policy are rapidly reshaping telecommunications services, thereby promising the people and businesses of the State communication and access to information, while creating new challenges for maintaining a robust, modern telecommunications network in Vermont.
(b) Therefore, to direct the benefits of improved telecommunications technology to all Vermonters, it is the purpose of this section and section 202d of this title to:
(1) strengthen the State’s role in telecommunications planning;
(2) support the universal availability of appropriate infrastructure and affordable services for transmitting voice and high-speed data;
(3) support the availability of modern mobile wireless telecommunications services along the State’s travel corridors and in the State’s communities;
(4) provide for high-quality, reliable telecommunications services for Vermont businesses and residents;
(5) provide the benefits of future advances in telecommunications technologies to Vermont residents and businesses;
(6) support competitive choice for consumers among telecommunications service providers and promote open access among competitive service providers on nondiscriminatory terms to networks over which broadband and telecommunications services are delivered;
(7) support the application of telecommunications technology to maintain and improve governmental and public services, public safety, and the economic development of the State;
(8) support deployment of broadband infrastructure that:
(A) uses the best commercially available technology;
(B) does not negatively affect the ability of Vermont to take advantage of future improvements in broadband technology or result in widespread installation of technology that becomes outmoded within a short period after installation;
(9) in the deployment of broadband infrastructure, encourage the use of existing facilities, such as existing utility poles and corridors and other structures, in preference to the construction of new facilities or the replacement of existing structures with taller structures; and
(10) support measures designed to ensure that by the end of the year 2024 every E-911 business and residential location in Vermont has infrastructure capable of delivering internet access with service that has a minimum download speed of 100 Mbps and is symmetrical.
(Added 1987, No. 87, § 1; amended 2003, No. 164 (Adj. Sess.), § 15, eff. June 12, 2004; 2009, No. 54, § 49, eff. June 1, 2009; 2011, No. 53, § 24b, eff. May 27, 2011; 2013, No. 190 (Adj. Sess.), § 8, eff. June 16, 2014.)
§ 202d Telecommunications Plan
(a) The Department of Public Service shall constitute the responsible planning agency of the State for the purpose of obtaining for all consumers in the State stable and predictable rates and a technologically advanced telecommunications network serving all service areas in the State. The Department shall be responsible for the provision of plans for meeting emerging trends related to telecommunications technology, markets, financing, and competition.
(b) The Department shall prepare the Telecommunications Plan for the State. The Agency of Digital Services, the Agency of Commerce and Community Development, and the Agency of Transportation shall assist the Department in preparing the Plan. The Plan shall be for a 10-year period and shall serve as a basis for State telecommunications policy. Prior to preparing the Plan, the Department shall prepare:
(1) An overview, looking 10 years ahead, of statewide growth and development as they relate to future requirements for telecommunications services, including patterns of urban expansion, statewide and service area economic growth, shifts in transportation modes, economic development, technological advances, and other trends and factors that will significantly affect State telecommunications policy and programs. The overview shall include an economic and demographic forecast sufficient to determine infrastructure investment goals and objectives.
(2) One or more surveys of Vermont residents and businesses, conducted in cooperation with the Agency of Commerce and Community Development to determine what telecommunications services are needed now and in the succeeding 10 years, generally, and with respect to the following specific sectors in Vermont:
(A) the educational sector, with input from the Secretary of Education;
(B) the health care and human services sectors, with input from the Commissioner of Health and the Secretary of Human Services;
(C) the public safety sector, with input from the Commissioner of Public Safety and the Executive Director of the Enhanced 911 Board; and
(D) the workforce training and development sectors, with input from the Commissioner of Labor.
(3) An assessment of the current state of telecommunications infrastructure.
(4) An assessment, conducted in cooperation with the Agency of Digital Services and the Agency of Transportation, of State-owned and managed telecommunications systems and related infrastructure and an evaluation, with specific goals and objectives, of alternative proposals for upgrading the systems to provide the best available and affordable technology for use by State and local government, public safety, educational institutions, community media, nonprofit organizations performing governmental functions, and other community anchor institutions.
(5) A geographically specific assessment of the status, coverage, and capacity of telecommunications networks and services available throughout Vermont, a comparison of available services relative to other states, including price and broadband speed comparisons for key services, and comparisons of the status of technology deployment.
(6) An assessment of opportunities for shared infrastructure, open access, and neutral host wireless facilities that is sufficiently specific to guide the Public Utility Commission, the Department, State and local governments, and telecommunications service companies in the deployment of new technology.
(7) [Repealed.]
(8) With respect to emergency communications, an analysis of all federal initiatives and requirements, including the Department of Commerce FirstNet initiative and the Department of Homeland Security Statewide Communication Interoperability Plan, and how these activities can best be integrated with strategies to advance the State’s interest in achieving ubiquitous deployment of mobile telecommunications and broadband services within Vermont.
(9) An analysis of alternative strategies to leverage the State’s ownership and management of the public rights-of-way to create opportunities for accelerating the buildout of fiber-optic broadband and for increasing network resiliency capacity.
(c) In developing the Plan, the Department shall address each of the State telecommunications policies and goals of section 202c of this title and shall assess initiatives designed to advance and make measurable progress with respect to each of those policies and goals. The assessment shall include identification of the resources required and potential sources of funding for Plan implementation.
(d) The Department shall establish a participatory planning process that includes effective provisions for increased public participation. In establishing plans, public hearings shall be held and the Department shall consult with members of the public; representatives of telecommunications utilities with a certificate of public good; other providers, including the Vermont Electric Power Co., Inc. (VELCO) and communications union districts; and other interested State agencies, particularly the Agency of Commerce and Community Development, the Agency of Transportation, and the Agency of Digital Services, whose views shall be considered in preparation of the Plan. To the extent necessary, the Department shall include in the Plan surveys to determine existing, needed, and desirable plant improvements and extensions, access and coordination between telecommunications providers, methods of operations, and any change that will produce better service or reduce costs. To this end, the Department may require the submission of data by each company subject to supervision by the Public Utility Commission.
(e) Before adopting the Plan, the Department shall first prepare and publish a preliminary draft and solicit public comment. The Department’s procedures for soliciting public comment shall include a method for submitting comments electronically. After review and consideration of the comments received, the Department shall prepare a final draft. This final draft shall either incorporate public comments received with respect to the preliminary draft or shall include a detailed explanation as to why specific individual comments were not incorporated. The Department shall conduct at least four public hearings across the State on the final draft and shall consider the testimony presented at such hearings when preparing the Plan. The Department shall coordinate with Vermont’s access media organizations when planning the public hearings required by this subsection. At least one public hearing shall be held jointly with committees of the General Assembly designated by the General Assembly for this purpose.
(f) The Department shall adopt a new Plan every three years pursuant to the procedures established in subsection (e) of this section. The Plan shall outline significant deviations from the prior Plan. For good cause or upon request by a joint resolution passed by the General Assembly, an interim review and revision of any section of the Plan may be made after conducting public hearings on the interim revision. At least one hearing shall be held jointly with committees of the General Assembly designated by the General Assembly for this purpose.
(Added 1987, No. 87, § 2; amended 1995, No. 190 (Adj. Sess.), § 1(a); 2003, No. 164 (Adj. Sess.), § 16, eff. June 12, 2004; 2013, No. 190 (Adj. Sess.), § 9, eff. June 16, 2014; 2015, No. 41, § 3; 2017, No. 41, § 1, eff. May 22, 2017; 2019, No. 79, § 22, eff. June 20, 2019; 2019, No. 154 (Adj. Sess.), § B.1105, eff. Oct. 2, 2020.)
§ 202e Telecommunications and connectivity
(a) Among other powers and duties specified in this title, the Department of Public Service, through the Division for Telecommunications and Connectivity, shall promote:
(1) access to affordable broadband service to all residences and businesses in all regions of the State, to be achieved in a manner that is consistent with the State Telecommunications Plan;
(2) universal availability of mobile telecommunication services, including voice and high-speed data along roadways, and near universal availability statewide;
(3) investment in telecommunications infrastructure in the State that creates or completes the network for service providers to create last-mile connection to the home or business and supports the best available and economically feasible service capabilities;
(4) the continuous upgrading of telecommunications and broadband infrastructure in all areas of the State to reflect the rapid evolution in the capabilities of available broadband and mobile telecommunications technologies, the capabilities of broadband and mobile telecommunications services needed by persons, businesses, and institutions in the State; and
(5) the most efficient use of both public and private resources through State policies by encouraging the development, funding, and implementation of open access telecommunications infrastructure.
(b) To achieve the goals specified in subsection (a) of this section, the Division shall:
(1) provide resources to local, regional, public, and private entities in the form of grants, technical assistance, coordination, and other incentives;
(2) prioritize the use of existing buildings and structures, historic or otherwise, as sites for visually neutral placement of mobile telecommunications and wireless broadband antenna facilities;
(3) inventory and assess the potential to use federal radio frequency licenses held by instrumentalities of the State to enable broadband service in unserved areas of the State; take steps to promote the use of those licensed radio frequencies for that purpose; and recommend to the General Assembly any further legislative measures with respect to ownership, management, and use of these licenses as would promote the general good of the State;
(4) coordinate telecommunications initiatives among Executive Branch agencies, departments, and offices;
(5) identify the types and locations of infrastructure and services needed to carry out the goals stated in subsection (a) of this section;
(6) formulate, with the advice and assistance of the Telecommunications and Connectivity Board and with input from the regional planning commissions, an action plan that conforms with the State Telecommunications Plan, as updated and revised, and carries out the goals stated in subsection (a) of this section;
(7) coordinate the agencies of the State to make public resources available to support the extension of broadband and mobile telecommunications infrastructure and services to all unserved and underserved areas;
(8) support and facilitate initiatives to extend the availability of broadband and mobile telecommunications and promote development of the infrastructure that enables the provision of these services;
(9) work cooperatively with the Agency of Transportation and the Department of Buildings and General Services to assist in making available transportation rights-of-way and other State facilities and infrastructure for telecommunications projects in conformity with applicable federal statutes and regulations; and
(10) receive all technical and administrative assistance as deemed necessary by the Director for Telecommunications and Connectivity.
(c)(1) The Director may request from telecommunications service providers voluntary disclosure of information regarding deployment of broadband, telecommunications facilities, or advanced metering infrastructure that is not publicly funded. The information may include data identifying projected coverage areas, projected average speed of service, service type, and the anticipated date of completion in addition to identifying the location and routes of proposed cables, wires, and telecommunications facilities.
(2) The Director may enter into a nondisclosure agreement with respect to any voluntary disclosures under this subsection, and the information disclosed shall remain confidential. Alternatively, entities that voluntarily provide information requested under this subsection may select a third party to be the recipient of the information. The third party may aggregate information provided by the entities but shall not disclose provider-specific information it has received under this subsection to any person, including the Director. The third party shall only disclose the aggregated information to the Director. The Director may publicly disclose aggregated information based upon the information provided under this subsection. The confidentiality requirements of this subsection shall not affect whether information provided to any agency of the State or a political subdivision of the State pursuant to other laws is or is not subject to disclosure.
(d) The Division shall only promote the expansion of broadband services that offer actual speeds that meet or exceed the minimum technical service characteristic objectives contained in the State’s Telecommunications Plan.
(e) Notwithstanding 2 V.S.A. § 20(d), on or before January 15 of each year, the Director, with the advice and assistance of the Telecommunications and Connectivity Board, shall submit a report of its activities pursuant to this section and duties of subsection 202f(f) of this title for the preceding fiscal year to the General Assembly. Each report shall include an operating and financial statement covering the Division’s operations during the year, including a summary of all grant awards and contracts and agreements entered into by the Division, as well as the action plan required under subdivision (b)(6) of this section. In addition, the report shall include an accurate map and narrative description of each of the following:
(1) the areas served and the areas not served by broadband that has a download speed of at least 4 Mbps and an upload speed of at least 1 Mbps, and cost estimates for providing such service to unserved areas;
(2) the areas served and the areas not served by broadband that has a download speed of at least 25 Mbps and an upload speed of at least 3 Mbps, or as defined by the FCC in its annual report to Congress required by section 706 of the Telecommunications Act of 1996, whichever is higher, and the cost estimates for providing such service to unserved areas;
(3) the areas served and the areas not served by broadband that has a download speed of at least 100 Mbps and is symmetrical, and the cost estimates for providing such service to unserved areas; and
(4) if monetarily feasible, the areas served and the areas not served by wireless communications service, and cost estimates for providing such service to unserved areas.
(Added 2015, No. 41, § 4; amended 2023, No. 85 (Adj. Sess.), § 362, eff. July 1, 2024.)
§ 202f Telecommunications and Connectivity Advisory Board
(a) There is created the Telecommunications and Connectivity Advisory Board for the purpose of making recommendations to the Commissioner of Public Service regarding his or her telecommunications responsibilities and duties as provided in this section. The Connectivity Advisory Board shall consist of eight members selected as follows:
(1) the State Treasurer or designee;
(2) the Secretary of Commerce and Community Development or designee;
(3) five at-large members appointed by the Governor, who shall not be employees or officers of the State at the time of appointment; and
(4) the Secretary of Transportation or designee.
(b) A quorum of the Connectivity Advisory Board shall consist of four voting members. No action of the Board shall be considered valid unless the action is supported by a majority vote of the members present and voting and then only if at least four members vote in favor of the action. The Governor shall select, from among the at-large members, a chair and vice chair.
(c) In making appointments of at-large members, the Governor shall give consideration to citizens of the State with knowledge of telecommunications technology, telecommunications regulatory law, transportation rights-of-way and infrastructure, finance, environmental permitting, and expertise regarding the delivery of telecommunications services in rural, high-cost areas. However, the five at-large members may not be persons with a financial interest in or owners or employees of an enterprise that provides broadband or cellular service or that is seeking in-kind or financial support from the Department of Public Service. The conflict of interest provision in this subsection shall not be construed to disqualify a member who has ownership in a mutual fund, exchange traded fund, pension plan, or similar entity that owns shares in such enterprises as part of a broadly diversified portfolio. The at-large members shall serve terms of two years beginning on February 1 in odd-numbered years and until their successors are appointed and qualified. However, three of the five at-large members first appointed by the Governor shall serve an initial term of three years. Vacancies shall be filled for the balance of the unexpired term. A member may be reappointed for up to three consecutive terms. Upon completion of a term of service for any reason, including the term’s expiration or a member’s resignation, and for one year from the date of such completion, a former Board member shall not advocate before the Connectivity Board, Department of Public Service, or the Public Utility Commission on behalf of an enterprise that provides broadband or cellular service.
(d) Except for those members otherwise regularly employed by the State, the compensation of the Board’s members is that provided by 32 V.S.A. § 1010(a). All members of the Board, including those members otherwise regularly employed by the State, shall receive their actual and necessary expenses when away from home or office upon their official duties.
(e) In performing its duties, the Connectivity Advisory Board may use the legal and technical resources of the Department of Public Service. The Department of Public Service shall provide the Board with administrative services.
(f) The Connectivity Advisory Board shall:
(1) function in an advisory capacity to the Commissioner on the development of State telecommunications policy and planning, including the action plan required under subdivision 202e(b)(6) of this chapter and the State Telecommunications Plan; and
(2) annually provide the Commissioner with recommendations on the appropriate internet access speeds for publicly funded telecommunications and connectivity broadband projects.
(g) On November 15, 2019, and annually thereafter, the Commissioner shall submit to the Connectivity Advisory Board an accounting of monies in the Connectivity Fund and anticipated revenue for the next year.
(h) The Chair shall call the first meeting of the Connectivity Advisory Board. The Chair or a majority of Board members may call a Board meeting. The Board may meet up to six times a year.
(i) At least annually, the Connectivity Advisory Board and the Commissioner or designee shall jointly hold a public meeting to review and discuss the status of State telecommunications policy and planning, the Telecommunications Plan, the Connectivity Fund, the Connectivity Initiative, the High-Cost Program, and any other matters they deem necessary to fulfill their obligations under this section.
(j) Information and materials submitted by a telecommunications service provider concerning confidential financial or proprietary information shall be exempt from public inspection and copying under the Public Records Act, nor shall any information that would identify a provider who has submitted a proposal under the Connectivity Initiative be disclosed without the consent of the provider, unless a grant award has been made to that provider. Nothing in this subsection shall be construed to prohibit the publication of statistical information, determinations, reports, opinions, or other information, provided the data are disclosed in a form that cannot identify or be associated with a particular telecommunications service provider.
(Added 2015, No. 41, § 5; amended 2019, No. 31, § 7; 2021, No. 71, § 8, eff. Jan. 1, 2022.)
§ 203 Jurisdiction of certain public utilities
The Public Utility Commission and the Department of Public Service shall have jurisdiction over the following described companies within the State, their directors, receivers, trustees, lessees, or other persons or companies owning or operating the companies and of all plants, lines, exchanges, and equipment of the companies used in or about the business carried on by them in this State as covered and included in this chapter. This jurisdiction shall be exercised by the Commission and the Department so far as may be necessary to enable them to perform the duties and exercise the powers conferred upon them by law. The Commission and the Department may, when they deem the public good requires, examine the plants, equipment, lines, exchanges, stations, and property of the companies subject to their jurisdiction under this chapter.
(1) A company engaged in the manufacture, transmission, distribution, storage, or sale of gas or electricity directly to the public or to be used ultimately by the public for lighting, heating, or power and so far as relates to their use or occupancy of the public highways.
(2) That part of the business of a company that consists of the manufacture, transmission, distribution, storage, or sale of gas or electricity directly to the public or to be used ultimately by the public for lighting, heating, or power and so far as relates to their use or occupancy of the public highways.
(3) A company other than a municipality or a water system exempted under the provisions of 10 V.S.A. § 1675a engaged in the collecting, sale, and distribution of water for domestic, industrial, business, or fire protection purposes.
(4) A company engaged in the construction and maintenance of dams and storage reservoirs whether for the purpose of prevention of damage by flood, or for the purpose of power to be developed, or for the benefit of waterpower, developed or undeveloped, so situated as to be affected by such reservoirs and dams.
(5) A person or company offering telecommunications service to the public on a common carrier basis. “Telecommunications service” means the transmission of any interactive two-way electromagnetic communications, including voice, image, data, and information. Transmission of electromagnetic communications includes the use of any media such as wires, cables, television cables, microwaves, radio waves, light waves, or any combination of those or similar media. Telecommunications service does not include value-added nonvoice services in which computer processing applications are used to act on the form, content, code, and protocol of the information to be transmitted unless those services are provided under tariff approved by the Public Utility Commission.
(6) A company or that part of a company, other than a municipality, that has obtained a direct or indirect discharge permit issued by the Agency of Natural Resources and is engaged in the collection or disposal of wastewater or domestic sewage or any combination of these activities, except companies solely involved in the hauling of septage or sludge. This subdivision shall only apply to companies that, together with any affiliates, service 750 or more household or dwelling units.
(7) Notwithstanding subdivisions (1) and (2) of this section, the Commission and Department shall not have jurisdiction over persons otherwise not regulated by the Commission that are engaged in the siting, construction, ownership, operation, or control of a facility that sells or supplies electricity to the public exclusively for charging a plug-in electric vehicle, as defined in 23 V.S.A. § 4(85). These persons may charge by the kWh for owned or operated electric vehicle supply equipment, as defined in section 201 of this title, but shall not be treated as an electric distribution utility just because electric vehicle supply equipment charges by the kWh.
(8) For purposes of this section, “storage” has the same meaning as “energy storage facility” as defined in section 201 of this title.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 267, § 1, eff. Aug. 1, 1961; 1979, No. 204 (Adj. Sess.), § 22, eff. Feb. 1, 1981; 1985, No. 224 (Adj. Sess.), § 8; 1987, No. 87, § 5; 1993, No. 21, § 19, eff. May 12, 1993; 1993, No. 120 (Adj. Sess.), § 1; 2007, No. 156 (Adj. Sess.), § 2; 2019, No. 59, § 39, eff. June 14, 2019; 2021, No. 54, § 6; 2023, No. 85 (Adj. Sess.), § 363, eff. July 1, 2024.)
§ 203a Fuel Efficiency Fund
(a) Fuel Efficiency Fund. There is established the Fuel Efficiency Fund to be administered by a fund administrator appointed by the Commission. Balances in the Fund shall be ratepayer funds, shall be used to support the activities authorized in this subsection, and shall be carried forward and remain in the Fund at the end of each fiscal year. These monies shall not be available to meet the general obligations of the State. Interest earned shall remain in the Fund. The Fund shall contain such sums as appropriated by the General Assembly or as otherwise provided by law, in addition to revenues from the sale of credits under the RGGI cap and trade program as provided for under section 255 of this title.
(b) Use of the Fund. The Fuel Efficiency Fund shall be used to support the delivery of energy efficiency services to Vermont heating and process fuel consumers and to carry out cost-effective efficiency measures and reductions in greenhouse gas emissions from those sectors. These energy efficiency services shall be delivered by the service provider or providers selected by the Department of Public Service under section 235 of this title to perform these functions.
(c) [Repealed.]
(d) Department costs. Up to five percent of amounts allocated to the Department of Public Service from the Fund may be used for administrative costs directly related to the Fuel Efficiency Fund.
(Added 2007, No. 92 (Adj. Sess.), § 11; amended 2009, No. 54, § 103, eff. June 1, 2009; 2009, No. 1 (Sp. Sess.), § E.235, eff. June 2, 2009; 2013, No. 142 (Adj. Sess.), § 48; 2019, No. 31, § 1.)
§ 204 Organization; reports of public utility corporations
Immediately upon the transmission of its articles of association, a corporation subject to supervision under this chapter shall file with the Department of Public Service a copy of such articles, and a copy of its certificate of paid up capital stock if any. The corporation shall also, immediately after its organization, forward to the Department of Public Service a copy of the report of its organization containing the names and addresses of the directors and other officials of the corporation. At the time of commencing, a business, a municipality, person, or company, other than a corporation that is subject to supervision under this chapter, shall file with the Department of Public Service a written statement giving the location, nature, and extent of such business, together with the post office address of the owner or owners, business manager, and other officials.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 23, eff. Feb. 1, 1981.)
§ 205 Duty to furnish copies of contracts
At the request of the Department of Public Service, a corporation subject to supervision under this chapter shall submit to the Department for its approval certified copies of contracts entered into after July 1, 1961, between such corporation and any person, partnership, association, trust, or corporation holding, controlling, or owning 10 percent or more of the voting capital stock of such corporation subject to supervision, or with any other corporation that is itself owned or controlled by a person, partnership, association, trust, or corporation so holding, controlling, or owning 10 percent or more of the voting capital stock of such corporation subject to supervision.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 183, § 3; 1979, No. 204 (Adj. Sess.), § 35, eff. Feb. 1, 1981.)
§ 206 Information to be furnished to Department
On request by the Department of Public Service, a company owning or operating a plant, line, or property subject to supervision under this chapter shall furnish to the Department information required by it concerning the condition, operation, management, expense of maintenance and operation, cost of production, rates charged for service or for product, contracts, obligations, and the financial standing of such company. It shall also inform the Department of the salaries of; the pensions, option, or benefit programs affecting; and the expenses reimbursed to its officers or directors, or both.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 183, § 4; 1979, No. 204 (Adj. Sess.), § 35, eff. Feb. 1, 1981; 2015, No. 29, § 22.)
§ 207 Report of accidents; investigation
The superintendent or manager of any line or plant, subject to supervision under this chapter, shall, immediately after its occurrence, notify the Department in writing of any accident that occurs within this State upon such line or plant that results in loss of life or injury to any person that incapacitates him or her from engaging in his or her usual vocations. If the accident is subject to investigation by VOSHA pursuant to 21 V.S.A. chapter 3, subchapters 4 and 5, the Department shall provide support as requested by VOSHA, and VOSHA shall, to the extent permitted by law, provide the Department with any information pertaining to the investigation that is requested by the Department. If the accident is not subject to investigation by VOSHA, the Department shall inquire into the cause of the accident and shall make any recommendations to the company and to the Public Utility Commission as appropriate.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 35, eff. Feb. 1, 1981; 2021, No. 54, § 1.)
§ 208 Complaints; investigations; procedure
A complaint to the Public Utility Commission may be made against a company subject to supervision under the provisions of this chapter concerning any claimed unlawful act or neglect adversely affecting the complainant, who may be a company or five or more individuals or, if less than five are so affected, then any one of them. The complainant may bring his or her complaint directly before the Commission or he or she may file his or her complaint with the Department of Public Service, which shall investigate such complaint and, if sufficient cause exists, shall prosecute the same in the name of the State. Upon request of the trustees of an incorporated village or the selectboard or city council or upon its own motion, the Department of Public Service may institute investigations regarding the price, toll, rate, or rental charged by any utility.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 24, eff. Feb. 1, 1981.)
§ 208a Selection of telecommunications carrier
(a) No provider of telecommunications services shall submit a change order for primary interexchange carrier or for local exchange carrier to any telecommunications company regarding a Vermont customer unless and until the submitting carrier has obtained express authorization from the customer for the change. Upon request of the customer, offers to provide telecommunications services shall be sent to the customer in written form describing the terms and conditions of service. As used in this section, “express authorization” means an express, affirmative act by the customer clearly agreeing to the change in primary interexchange carrier or local exchange carrier, in the form of:
(1) a written authorization;
(2) a customer initiated call to the submitting carrier;
(3) an oral authorization verified by an independent third party and the verification has been recorded;
(4) electronic authorization; or
(5) some other form of recorded authorization.
(b)(1) A petition alleging violation of this section may be brought to the Public Utility Commission by the customer, by the Department of Public Service, by the Attorney General, or by the customer’s former carrier. If the Public Utility Commission determines after opportunity for hearing that a telecommunications carrier has submitted a change order and cannot demonstrate that it has complied with this section, and with rules adopted by the Commission, the Commission may:
(A) void any pending charges and require the submitting carrier to pay to the customer an amount equal to all charges previously paid by the customer to the submitting carrier and made possible by the change order, providing that the voiding and repayment shall apply only for a reasonable time after the customer discovered or should have discovered the change in carriers;
(B) require the submitting carrier to pay to the customer an amount of money to compensate for damages that arose because the change order altered the nature or quality of the customer’s telecommunications services;
(C) require the submitting carrier to pay to the former carrier an amount equal to the revenues the former carrier would have received for providing equivalent services to the customer had the unauthorized switch not occurred;
(D) require the submitting carrier to pay to the customer’s local exchange carrier an amount to compensate for any costs arising from changes caused by the invalid change order;
(E) require the submitting carrier to pay, to the petitioner, the costs of prosecuting the complaint before the Commission, including reasonable attorney’s fees, witness fees, and incidental costs; and
(F) require the submitting carrier to pay a penalty as authorized by section 30 of this title.
(2) Payments and penalties under this section shall be in addition to those otherwise provided by law.
(c) The Public Utility Commission shall adopt such rules as are necessary to carry out the purposes of this section. Such rules shall be no less stringent than the federal rules relating to changes of carrier and shall include such further provisions as are needed to implement the provisions of this section.
(Added 1995, No. 182 (Adj. Sess.), § 1, eff. May 22, 1996; amended 1997, No. 135 (Adj. Sess.), § 3.)
§ 208b Unauthorized billing
A company subject to the jurisdiction of the Public Utility Commission shall not send a bill to a consumer for goods or services that the company provides and that will appear as a charge on the consumer’s telecommunications bill without the consumer’s consent. The Department shall develop a consumer education plan to ensure that consumers of telecommunications services have adequate notice of this requirement. A company that violates this section shall be subject to the remedies authorized by this title, including penalties authorized by section 30 and injunctions authorized by section 209.
(Added 1999, No. 67 (Adj. Sess.), § 1.)
§ 209 Jurisdiction; general scope
(a) General jurisdiction. On due notice, the Commission shall have jurisdiction to hear, determine, render judgment, and make orders and decrees in all matters provided for in the charter or articles of any corporation owning or operating any plant, line, or property subject to supervision under this chapter and shall have like jurisdiction in all matters respecting:
(1) the purity, quantity, or quality of any product furnished or sold by any company subject to supervision under this chapter, and may prescribe the equipment for and standard of measurement, pressure, or initial voltage of such product;
(2) the providing for each kind of business subject to supervision under this chapter, suitable and convenient standard commercial units of product or service, which standards shall be lawful for the purposes of this chapter;
(3) the manner of operating and conducting any business subject to supervision under this chapter, so as to be reasonable and expedient, and to promote the safety, convenience, and accommodation of the public;
(4) the price, toll, rate, or rental charged by any company subject to supervision under this chapter, when unreasonable or in violation of law;
(5) the sufficiency and maintenance of proper systems, plants, conduits, appliances, wires, and exchanges, and when the public safety and welfare require the location of such wires or any portion thereof underground;
(6) to restrain any company subject to supervision under this chapter from violations of law, unjust discriminations, usurpation, or extortion;
(7) the issue of stock, mortgages, bonds, or other securities as provided in section 108 of this title;
(8) the sale to electric companies of electricity generated by facilities:
(A) that produce electric energy solely by the use of biomass, waste, renewable resources, cogeneration, or any combination thereof;
(B) that are owned by a person not primarily engaged in the generation or sale of electric power, excluding power derived from facilities described in subdivision (A) of this subdivision (8); and
(C) that have a power production capacity that, together with any other facilities located at the same site, is not greater than 80 megawatts; and
(9) the issuance of qualified cost mitigation charge orders pertaining to facilities described in subdivision (8) of this subsection, subject to the terms and conditions of section 209a of this title.
(b) Required rules. Notwithstanding the provisions of section 218 of this chapter, the Public Utility Commission shall, under 3 V.S.A. chapter 25, adopt rules applicable to companies subject to this chapter that:
(1) regulate or prescribe terms and conditions of extension of utility service to customers or applicants for service including:
(A) the conditions under which a deposit may be required, if any;
(B) the extension of service lines;
(C) the terms of payment of any required deposit; and
(D) the return of any deposit;
(2) regulate or prescribe the grounds upon which the companies may disconnect or refuse to reconnect service to customers; and
(3) regulate and prescribe reasonable procedures used by companies in disconnecting or reconnecting services and billing customers.
(c) Uninterrupted service; reasonable terms. Rules adopted under subsection (b) of this section shall be aimed at protection of the health and safety of utility customers so that uninterrupted utility service may be continued on reasonable terms for the utility and its customers. Such rules shall also ensure that a reasonable rate of interest, adjusted for variations in market interest rates, be set on security deposits held by utility companies.
(d) Energy efficiency.
(1) Programs and measures. The Department of Public Service, any entity appointed by the Commission under subdivision (2) of this subsection, all gas and electric utility companies, and the Commission upon its own motion are encouraged to propose, develop, solicit, and monitor energy efficiency and conservation programs and measures, including appropriate combined heat and power systems that result in the conservation and efficient use of energy and meet the applicable air quality standards of the Agency of Natural Resources. Such programs and measures, and their implementation, may be approved by the Commission if it determines they will be beneficial to the ratepayers of the companies after such notice and hearings as the Commission may require by order or by rule. The Department of Public Service shall investigate the feasibility of enhancing and expanding the efficiency programs of gas utilities and shall make any appropriate proposals to the Commission.
(2) Appointment of independent efficiency entities.
(A) Electricity and natural gas. In place of utility-specific programs developed pursuant to this section and section 218c of this title, the Commission shall, after notice and opportunity for hearing, provide for the development, implementation, and monitoring of gas and electric energy efficiency and conservation programs and measures, including programs and measures delivered in multiple service territories, by one or more entities appointed by the Commission for these purposes. The Commission may include appropriate combined heat and power systems that result in the conservation and efficient use of energy and meet the applicable air quality standards of the Agency of Natural Resources. Except with regard to a transmission company, the Commission may specify that the appointment of an energy efficiency utility to deliver services within an electric utility’s service territory satisfies that electric utility’s corresponding obligations, in whole or in part, under section 218c of this title and under any prior orders of the Commission.
(B) Thermal energy and process-fuel customers. The Commission shall provide for the coordinated development, implementation, and monitoring of cost-effective efficiency and conservation programs to thermal energy and process-fuel customers on a whole buildings basis by one or more entities appointed by the Commission for this purpose.
(i) In this section, “thermal energy” means the use of fuels to control the temperature of space within buildings and to heat water.
(ii) Periodically on a schedule directed by the Commission, the appointed entity or entities shall propose to the Commission a plan to implement this subdivision (d)(2)(B). The proposed plan shall comply with subsections (e)-(g) of this section and shall be subject to the Commission’s approval. The Commission shall not conduct the review of the proposed plan as a contested case under 3 V.S.A. chapter 25 but shall provide notice and an opportunity for written and oral comments to the public and affected parties and State agencies.
(3) Energy efficiency charge; regulated fuels. In addition to its existing authority, the Commission may establish by order or rule a volumetric charge to customers for the support of energy efficiency programs that meet the requirements of section 218c of this title, with due consideration to the State’s energy policy under section 202a of this title and to its energy and economic policy interests under section 218e of this title to maintain and enhance the State’s economic vitality. The charge shall be known as the energy efficiency charge, shall be shown separately on each customer’s bill, and shall be paid to a fund administrator appointed by the Commission and deposited into the Electric Efficiency Fund. When such a charge is shown, notice as to how to obtain information about energy efficiency programs approved under this section shall be provided in a manner directed by the Commission. This notice shall include, at a minimum, a toll-free telephone number, and to the extent feasible shall be on the customer’s bill and near the energy efficiency charge.
(A) Balances in the Electric Efficiency Fund shall be ratepayer funds, shall be used to support the activities authorized in this subdivision, and shall be carried forward and remain in the Fund at the end of each fiscal year. These monies shall not be available to meet the general obligations of the State. Interest earned shall remain in the Fund. The Commission will annually provide the General Assembly with a report detailing the revenues collected and the expenditures made for energy efficiency programs under this section. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection (d).
(B) The charge established by the Commission pursuant to this subdivision (3) shall be in an amount determined by the Commission by rule or order that is consistent with the principles of least-cost integrated planning as defined in section 218c of this title. As circumstances and programs evolve, the amount of the charge shall be reviewed for unrealized energy efficiency potential and shall be adjusted as necessary in order to realize all reasonably available, cost-effective energy efficiency savings. In setting the amount of the charge and its allocation, the Commission shall determine an appropriate balance among the following objectives; provided, however, that particular emphasis shall be accorded to the first four of these objectives: reducing the size of future power purchases; reducing the generation of greenhouse gases; limiting the need to upgrade the State’s transmission and distribution infrastructure; minimizing the costs of electricity; reducing Vermont’s total energy demand, consumption, and expenditures; providing efficiency and conservation as a part of a comprehensive resource supply strategy; providing the opportunity for all Vermonters to participate in efficiency and conservation programs; and targeting efficiency and conservation efforts to locations, markets, or customers where they may provide the greatest value.
(C) The Commission, by rule or order, shall establish a process by which a customer who pays an average annual energy efficiency charge under this subdivision (3) of at least $5,000.00 may apply to the Commission to self-administer energy efficiency through an energy savings account or customer credit program that shall contain up to 75 percent and 90 percent, respectively of the customer’s energy efficiency charge payments as determined by the Commission. The remaining portion of the charge shall be used for administrative, measurement, verification, and evaluation costs and for systemwide energy benefits. Customer energy efficiency funds may be approved for use by the Commission for one or more of the following: electric energy efficiency projects and non-electric efficiency projects, which may include thermal and process fuel efficiency, flexible load management, combined heat and power systems, demand management, energy productivity, and energy storage. These funds shall not be used for the purchase or installation of new equipment capable of combusting fossil fuels. The Commission in its rules or order shall establish criteria for each program and approval of these applications, establish application and enrollment periods, establish participant requirements, and establish the methodology for evaluation, measurement, and verification for programs. The total amount of customer energy efficiency funds that can be placed into energy savings accounts or the customer credit program annually is $2,000,000.00 and $1,000,000.00 respectively.
(D) The Commission may authorize the use of funds raised through an energy efficiency charge on electric ratepayers to reduce the use of fossil fuels for space heating by supporting electric technologies that may increase electric consumption, such as air source or geothermal heat pumps if, after investigation, it finds that deployment of the technology:
(i) will be beneficial to electric ratepayers as a whole;
(ii) will result in cost-effective energy savings to the end-user and to the State as a whole;
(iii) will result in a net reduction in State energy consumption and greenhouse gas emissions on a life-cycle basis and will not have a detrimental impact on the environment through other means such as release of refrigerants or disposal. In making a finding under this subdivision, the Commission shall consider the use of the technology at all times of year and any likely new electricity demand created by such use;
(iv) will be part of a comprehensive energy efficiency and conservation program that meets the requirements of subsections (d)-(g) of this section and that makes support for the technology contingent on the energy performance of the building in which the technology is to be installed. The building’s energy performance shall achieve or shall be improved to achieve an energy performance level that is approved by the Commission and that is consistent with meeting or exceeding the goals of 10 V.S.A. § 581 (building efficiency);
(v) among the product models of the technology that are suitable for use in Vermont, will employ the product models that are the most efficient available;
(vi) will be promoted in conjunction with demand management strategies offered by the customer’s distribution utility to address any increase in peak electric consumption that may be caused by the deployment;
(vii) will be coordinated between the energy efficiency and distribution utilities, consistent with subdivision (f)(5) of this section; and
(viii) will be supported by an appropriate allocation of funds among the funding sources described in this subsection (d) and subsection (e) of this section. In the case of measures used to increase the energy performance of a building in which the technology is to be installed, the Commission shall assume installation of the technology in the building and then determine the allocation according to the proportion of the benefits provided to the regulated fuel and unregulated fuel sectors. In this subdivision (viii), “regulated fuel” and “unregulated fuel” shall have the same meaning as under subsection (e) of this section.
(4) Contract or order of appointment. Appointment of an entity under subdivision (2) of this subsection may be by contract or by an order of appointment. An appointment, whether by order of appointment or by contract, may only be issued after notice and opportunity for hearing. An order of appointment shall be for a limited duration not to exceed 12 years, although an entity may be reappointed by order or contract. An order of appointment may include any conditions and requirements that the Commission deems appropriate to promote the public good. For good cause, after notice and opportunity for hearing, the Commission may amend or revoke an order of appointment.
(5) Appointed entity; supervision. Any entity appointed by order of appointment under subdivisions (2) and (4) of this subsection that is not an electric or gas utility already regulated under this title shall not be considered to be a company as defined under section 201 of this title but shall be subject to the provisions of sections 18-21, 30-32, 205-208, subsection 209(a), sections 219, 221, and subsection 231(b) of this title, to the same extent as a company as defined under section 201 of this title. The Commission and the Department of Public Service shall have jurisdiction under those sections over the entity, its directors, receivers, trustees, lessees, or other persons or companies owning or operating the entity and of all plants, equipment, and property of that entity used in or about the business carried on by it in this State as covered and included in this section. This jurisdiction shall be exercised by the Commission and the Department so far as may be necessary to enable them to perform the duties and exercise the powers conferred upon them by law. The Commission and the Department each may, when they deem the public good requires, examine the plants, equipment, and property of any entity appointed by order of appointment under subdivisions (2) and (4) of this subsection.
(e) Thermal energy and process fuel efficiency funding.
(1) Each of the following shall be used to deliver thermal energy and process fuel energy efficiency services in accordance with this section for unregulated fuels to Vermont consumers of such fuels. In addition, the Commission may authorize an entity appointed to deliver such services under subdivision (d)(2)(B) of this section to use monies subject to this subsection for the engineering, design, and construction of facilities for the conversion of thermal energy customers using fossil fuels to district heat if the majority of the district’s energy is from biomass sources, the district’s distribution system is highly energy efficient, and such conversion is cost effective.
(A) Net revenues above costs associated with payments from the New England Independent System Operator (ISO-NE) for capacity savings resulting from the activities of the energy efficiency utility designated under subdivision (2)(A) of this subsection (e) that are not transferred to the State PACE Reserve Fund under 24 V.S.A. § 3270(c). These revenues shall be deposited into the Electric Efficiency Fund established by this section. In delivering services with respect to heating systems using the revenues subject to this subdivision (A), the entity shall give priority to incentives for the installation of high efficiency biomass heating systems and shall have a goal of offering an incentive that is equal to 25 percent of the installed cost of such a system. Provision of an incentive under this subdivision (A) for a biomass heating system shall not be contingent on the making of other energy efficiency improvements at the property on which the system will be installed.
(B) Net revenues above costs from the sale of carbon credits under the cap and trade program established under section 255 of this title, which shall be deposited into the Electric Efficiency Fund established by this section.
(C) Any other monies that are appropriated to or deposited in the Electric Efficiency Fund for the delivery of thermal energy and process fuel energy efficiency services.
(2) If a program combines regulated fuel efficiency services with unregulated fuel efficiency services supported by funds under this section, the Commission shall allocate the costs of the program among the funding sources for the regulated and unregulated fuel sectors in proportion to the benefits provided to each sector.
(3) In this subsection:
(A) “Biomass” means organic nonfossil material constituting a source of renewable energy within the meaning of section 8002 of this title.
(B) “District heat” means a system through which steam or hot water from a central plant is piped into buildings to be used as a source of thermal energy.
(C) “Efficiency services” includes the establishment of a statewide information clearinghouse under subsection (g) of this section.
(D) “Fossil fuel” means an energy source formed in the earth’s crust from decayed organic material. The common fossil fuels are petroleum, coal, and natural gas. A fossil fuel may be a regulated or unregulated fuel.
(E) “Regulated fuels” means electricity and natural gas delivered by a regulated utility.
(F) “Unregulated fuels” means fuels used by thermal energy and process fuel customers other than electricity and natural gas delivered by a regulated utility.
(f) Goals and criteria; all energy efficiency programs. With respect to all energy efficiency programs approved under this section, the Commission shall:
(1) Ensure that all retail consumers, regardless of retail electricity, gas, or heating or process fuel provider, will have an opportunity to participate in and benefit from a comprehensive set of cost-effective energy efficiency programs and initiatives designed to overcome barriers to participation.
(2) Require that continued or improved efficiencies be made in the production, delivery, and use of energy efficiency services, including the use of compensation mechanisms for any energy efficiency entity appointed under subdivision (d)(2) of this section that are based upon verified savings in energy usage and demand, and other performance targets specified by the Commission. The linkage between compensation and verified savings in energy usage and demand (and other performance targets) shall be reviewed and adjusted not less than triennially by the Commission.
(3) Build on the energy efficiency expertise and capabilities that have developed or may develop in the State.
(4) Promote program initiatives and market strategies that address the needs of persons or businesses facing the most significant barriers to participation, including those who do not own their place of residence.
(5) Promote and ensure coordinated program delivery, including coordination with low-income weatherization programs, entities that fund and support affordable housing, regional and local efficiency entities within the State, other efficiency programs, and utility programs.
(6) Consider innovative approaches to delivering energy efficiency, including strategies to encourage third party financing and customer contributions to the cost of efficiency measures.
(7) Provide a reasonably stable multiyear budget and planning cycle in order to promote program improvement, program stability, enhanced access to capital and personnel, improved integration of program designs with the budgets of regulated companies providing energy services, and maturation of programs and delivery resources.
(8) Approve programs, measures, and delivery mechanisms that reasonably reflect current and projected market conditions, technological options, and environmental benefits.
(9) Provide for delivery of these programs as rapidly as possible, taking into consideration the need for these services, and cost-effective delivery mechanisms.
(10) Provide for the independent evaluation of programs delivered under subsection (d) of this section.
(11) Require that any entity appointed by the Commission under subsection (d) of this section deliver Commission-approved programs in an effective, efficient, timely, and competent manner and meet standards that are consistent with those in section 218c of this title, the Board’s orders in Public Service Board docket 5270, and any relevant Board orders in subsequent energy efficiency proceedings.
(12) Require verification, on or before January 1, 2003, and every three years thereafter, by an independent auditor of the reported energy and capacity savings and cost-effectiveness of programs delivered by any entity appointed by the Commission to deliver energy efficiency programs under subdivision (d)(2) of this section.
(13) Ensure that any energy efficiency program approved by the Commission shall be reasonable and cost-effective.
(14) Consider the impact on retail electric rates and bills of programs delivered under subsection (d) of this section and the impact on fuel prices and bills.
(15) Ensure that the energy efficiency programs implemented under this section are designed to make continuous and proportional progress toward attaining the overall State building efficiency goals established by 10 V.S.A. § 581, by promoting all forms of energy end-use efficiency and comprehensive sustainable building design.
(g) Thermal energy and process fuel efficiency programs; additional criteria. With respect to energy efficiency programs delivered under this section to thermal energy and process fuel customers, the Commission shall:
(1) Ensure that programs are delivered on a whole-buildings basis to help meet the State’s building efficiency goals established by 10 V.S.A. § 581 and to reduce greenhouse gas emissions from thermal energy and process fuel use in Vermont.
(2) Require the establishment of a statewide information clearinghouse to enable effective access for customers to and effective coordination across programs. The clearinghouse shall serve as a portal for customers to access thermal energy and process fuel efficiency services and for coordination among State, regional, and local entities involved in the planning or delivery of such services, making referrals as appropriate to service providers and to entities having information on associated environmental issues such as the presence of asbestos in existing insulation.
(3) In consultation with the Agency of Natural Resources, establish annual interim goals starting in 2014 to meet the 2017 and 2020 goals for improving the energy fitness of housing stock stated in 10 V.S.A. § 581(1).
(4) Ensure the monitoring of the State’s progress in meeting the goals of 10 V.S.A. § 581(1). This monitoring shall be performed according to a standard methodology and on a periodic basis that is not less than annual.
(h) Electricity labeling. The Public Utility Commission may prescribe, by rule or order, standards for the labeling of electricity delivered or intended for delivery to ultimate consumers as to price, terms, sources, and objective environmental impacts, along with such procedures as it deems necessary for verification of information contained in such labels. The Public Utility Commission may prescribe, by rule or by order, standards and criteria for the substantiation of such labeling or of any claims regarding the price, terms, sources, and environmental impacts of electricity delivered or intended for delivery to ultimate consumers in Vermont, along with enforcement procedures and penalties. When establishing standards for the labeling of electricity, the Commission shall weigh the cost, as well as the benefits, of compliance with such standards. With respect to companies distributing electricity to ultimate consumers, the Commission may order disclosure and publication, not to occur more than once each year, of any labeling required pursuant to the standards established by this subsection. Standards established under this subsection may include provisions for:
(1) the form of labels;
(2) information on retail and wholesale price;
(3) terms and conditions of service;
(4) types of generation resources in a seller’s mix and percentage of power produced from each source;
(5) disclosure of the environmental effects of each energy source; and
(6) a description of other services, including energy services or energy efficiency opportunities.
(i) Pole attachments; broadband.
(1) For the purposes of Commission rules on attachments to poles owned by companies subject to regulation under this title, broadband service providers shall be considered “attaching entities” with equivalent rights to attach facilities as those provided to “attaching entities” in the rules, regardless of whether such broadband providers offer a service subject to the jurisdiction of the Commission. The Commission shall adopt rules in accordance with 3 V.S.A. chapter 25 to further implement this section. The rules shall be aimed at furthering the State’s interest in ubiquitous deployment of mobile telecommunications and broadband services within the State.
(2) The rules adopted pursuant to this subsection shall specify that:
(A) The applicable make-ready completion period shall not be extended solely because a utility pole is jointly owned.
(B) At the time of an initial pole make-ready survey application, when a pole is jointly owned, the joint owners shall inform the applicant which owner is responsible for all subsequent stages and timely completion of the make-ready process.
(C) If the make-ready work is not completed within the applicable make-ready completion period, the pole owner, within 30 days following the expiration of the make-ready completion period, shall refund the portion of the payment received for make-ready work that is not yet completed, and the attaching entity may hire a qualified contractor to complete the make-ready work. All pole owners and attaching entities shall submit to the Commission a list of contractors whom they allow to perform make-ready surveys, make-ready installation or maintenance, or other specified tasks upon their equipment. The Commission shall provide the appropriate list to an attaching entity, upon request.
(j) Self-managed energy efficiency programs.
(1) There shall be a class of self-managed energy efficiency programs for transmission and industrial electric ratepayers only.
(2) The Commission, by order, shall enact this class of programs.
(3) Entities approved to participate in the self-managed energy efficiency program class shall be exempt from all statewide charges under subdivision (d)(3) of this section that support energy efficiency programs performed by or on behalf of Vermont electric utilities. If an electric ratepayer approved to participate in this program class also is a customer of a natural gas utility, the ratepayer shall be exempt from all charges under subdivision (d)(3) of this section or contained within the rates charged by the natural gas utility to the ratepayer that support energy efficiency programs performed by or on behalf of that utility, provided that the ratepayer complies with this subsection.
(4) All of the following shall apply to a class of programs under this subsection:
(A) A member of the transmission or industrial electric rate class shall be eligible to apply to participate in the self-managed energy efficiency program class if the charges to the applicant, or to its predecessor in interest at the served property, under subdivision (d)(3) of this section were a minimum of:
(i) $1.5 million during calendar year 2008; or
(ii) $1.5 million during calendar year 2017.
(B) A cost-based fee to be determined by the Commission shall be charged to the applicant to cover the administrative costs, including savings verification, incurred by the Commission and Department. The Commission shall determine procedures for savings verification. Such procedures shall be consistent with savings verification procedures established for entities appointed under subdivision (d)(2) of this section and, when determined to be cost-effective under subdivision (L) of this subdivision (4), with the requirements of ISO-New England for the forward capacity market (FCM) program.
(C) An applicant shall demonstrate to the Commission that it has a comprehensive energy management program with annual objectives. Achievement of certification of ISO standard 14001 shall be eligible to satisfy the requirements of having a comprehensive program.
(D) An applicant eligible pursuant to subdivision (A)(i) of this subdivision (j)(4) shall commit to an annual average investment in energy efficiency and energy productivity programs and measures during each three-year period that the applicant participates in the program of not less than $1 million. An applicant eligible pursuant to subdivision (A)(ii) of this subdivision (j)(4) shall commit to an annual average investment in energy efficiency and energy productivity programs and measures during each three-year period that the applicant participates in the program of not less than $500,000.00. To achieve the exemption from energy efficiency charges related to natural gas under subdivision (3) of this subsection (j), an applicant shall make an additional annual energy efficiency investment in an amount not less than $55,000.00. As used in this subsection (j), “energy productivity programs and measures” means investments that reduce the amount of energy required to produce a unit of product below baseline energy use. Baseline energy use shall be calculated as the average amount of energy required to make one unit of the same product in the two years preceding implementation of the program or measure.
(E) Participation in the self-managed program includes efficiency and productivity programs and measures applicable to electric and other forms of energy. A participant may balance investments in such programs and measures across all types of energy or fuels without limitations.
(F) A participant shall provide to the Commission and Department annually an accounting of investments in energy efficiency and energy productivity programs and measures and the resultant energy savings in the form prescribed by the Commission, which may conduct reasonable audits to ensure the accuracy of the data provided.
(G) The Commission shall report to the General Assembly annually on or before April 30 concerning the prior calendar year’s class of self-managed energy efficiency programs. The report shall include identification of participants, their annual investments and resulting savings, and any actions taken to exclude entities from the program.
(H) Upon approval of an application by the Commission, the applicant shall be able to participate in the class of self-managed energy efficiency programs.
(I) On a determination that, for a given three-year period, a participant in the self-managed efficiency program class did not meet or has not met the commitment required by subdivision (D) of this subdivision (j)(4), the Commission shall terminate the participant’s eligibility for the self-managed program class.
(i) On such termination, the former participant will be subject fully to the then existing charges applicable to its rate class without exemption under subdivision (3) of this subsection (j), and within 90 days after such termination shall pay:
(I) the difference between the investment it made pursuant to the self-managed energy efficiency program during the three-year period of noncompliance and the full amount of the charges and rates related to energy efficiency it would have incurred during that period absent exemption under subdivision (3) of this subsection (j); and
(II) the difference between the investment it made pursuant to the program within the current three-year period, if different from the period of noncompliance, and the full amount of the charges and rates related to energy efficiency it would have incurred during the current period absent exemption under subdivision (3) of this subsection (j).
(ii) Payments under subdivision (i) of this subdivision (4)(I) shall be made to the entities to which the full amount of charges and rates would have been paid absent exemption under subdivision (3) of this subsection (j).
(iii) A former participant may not reapply for membership in the self-managed program after termination under this subdivision (4)(I).
(J) A participant in the self-managed program class may request confidentiality of data it reports to the Commission if the data would qualify for exemption from disclosure under 1 V.S.A. § 317. If such confidentiality is requested, the Commission shall disclose the data only in accordance with a protective agreement approved by the Commission and signed by the recipient of the data, unless a court orders otherwise.
(K) Any data not subject to a confidentiality request under subdivision (J) of this subdivision (4) will be a public record.
(L) A participant in the self-managed program class shall work with the Department of Public Service to determine whether it is cost-effective to submit projects to ISO-New England for payments under the FCM program.
(i) As used in this subdivision (L), “cost-effective” requires that the estimated payments from the FCM program exceed the incremental cost of savings verification necessary for submission to that program.
(ii) If the Department determines the submission to be cost-effective, then an entity appointed to deliver electric energy efficiency services under subdivision (d)(2) of this section shall submit the project to the FCM program for payment and any resulting payments shall be remitted to the Electric Efficiency Fund for use in accordance with subdivision (e)(1)(A) of this section.
(M) A participant in the self-managed program class may receive funding from an energy program administered by a government or other entity that is not the participant and may count such funds received as part of the annual commitment to its self-managed energy efficiency program.
(N) If, at the end of every third year after an applicant’s approval to participate in the self-managed efficiency program (the three-year period), the applicant has not met the commitment required by subdivision (4)(D) of this subsection, the applicant shall pay the difference between the investment the applicant made while in the self-managed energy efficiency program and the full amount of charges and rates that the applicant would have incurred absent the exemption under subdivision (3) of this subsection. This payment shall be made no later than 90 days after the end of the three-year period to the entities to which the full amount of those charges and rates would have been paid absent the exemption.
(5) This subdivision applies to a transferee of all or substantially all of the assets at the served property of an entity approved to participate in the self-managed energy efficiency program. The Commission shall allow the transferee to continue as a participant in the self-managed energy efficiency program class in the same manner and under the same terms and conditions that the transferor participant was authorized to participate, provided:
(A) the transferor participant met the requirements of subdivision (4)(A) of this subsection (j) and the transferee otherwise meets the requirements of this subsection; and
(B) the transferee assumes the obligation to fulfill any outstanding commitment of the transferor participant under subdivision (4)(D) of this subsection.
(k) Energy storage facilities. Except when owned by a retail distribution utility, an energy efficiency utility, or the Vermont Electric Power Company, Inc., competitive suppliers of energy storage services that do not serve retail customers shall be exempt from sections 107, 108, and 109 of this title.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 183, § 5; 1975, No. 56, § 1; 1979, No. 147 (Adj. Sess.), § 2; 1981, No. 245 (Adj. Sess.), § 2; 1989, No. 112, § 6, eff. June 22, 1989; 1995, No. 182 (Adj. Sess.), § 27a, eff. May 22, 1996; 1999, No. 60, § 1, eff. June 1, 1999; 1999, No. 143 (Adj. Sess.), § 28; 2001, No. 145 (Adj. Sess.), §§ 1, 2; 2005, No. 61, § 6; 2005, No. 208 (Adj. Sess.), § 10; 2007, No. 79, § 6, eff. June 9, 2007; 2007, No. 92 (Adj. Sess.), § 12; 2007, No. 190 (Adj. Sess.), §§ 52, 53, eff. June 6, 2008; 2009, No. 45, §§ 14, 14a, eff. May 27, 2009; 2009, No. 54, § 104, eff. June 1, 2009; 2009, No. 1 (Sp. Sess.), § E.235.1, eff. June 2, 2009; 2011, No. 47, §§ 3, 20b, eff. May 25, 2011; 2011, No. 170 (Adj. Sess.), § 16; 2013, No. 89, §§ 2, 3; 2013, No. 142 (Adj. Sess.), § 49; 2013, No. 184 (Adj. Sess.), § 1; 2015, No. 56, §§ 15, 15a; 2017, No. 77, § 6; 2017, No. 102 (Adj. Sess.), § 1; 2017, No. 150 (Adj. Sess.), § 1; 2019, No. 31, § 14; 2019, No. 79, § 20, eff. June 20, 2019; 2021, No. 54, § 7; 2023, No. 85 (Adj. Sess.), § 364, eff. July 1, 2024; 2023, No. 142 (Adj. Sess.), § 14, eff. May 30, 2024.)
§ 209a Qualified cost mitigation charge orders
(a) Definitions. As used in this section:
(1) “Electric utility” means any entity engaged in the distribution of electricity directly to the consumers within the State of Vermont.
(2) “Issuer” means any entity approved in a qualified cost mitigation charge order to issue mitigation bonds; “issuer” may include the Vermont qualifying facility contract mitigation authority or the Vermont Public Power Supply Authority.
(3) “Mitigation bond” means a note, bond, debenture, or any other evidence of indebtedness or certificate evidencing an interest in any evidence of indebtedness authorized by a qualified cost mitigation charge order.
(4) “Mitigation charge” means any volumetric charge imposed by the Commission pursuant to a qualified cost mitigation charge order.
(5) “Participating qualifying facility” means any facility described in subdivision 209(a)(8) of this title.
(6) “Power purchase arrangement” means a contract for sale of electricity between a participating qualifying facility with a capacity of 900 kilowatts or greater and a Rule 4.100 purchasing agent, approved by the Public Service Board on or before January 1, 1995.
(7) “Qualified cost mitigation charge order” means an order of the Commission that complies with the requirements of this section.
(8) “Rule 4.100” means Public Utility Commission Rule 4.100 or any amended or successor rule regarding small power production or cogeneration.
(9) “Rule 4.100 purchasing agent” means an entity designated by the Commission to perform the power and financial accounting requirements of Rule 4.100.
(10) “Savings” means the total benefit to electric ratepayers resulting from a qualified cost mitigation charge order, including specifically those benefits resulting from modifications of purchase power arrangements and benefits attributable to the availability of a qualified cost mitigation charge order to pay for those modifications, offset by the costs incurred to obtain the qualified cost mitigation charge order and purchase power arrangement modifications.
(b) General. Upon an application submitted by the Rule 4.100 purchasing agent or other person or entity, and subject to the terms and conditions of this section, the Commission may issue within five years following July 1, 2002 one or more qualified cost mitigation charge orders. A qualified cost mitigation charge order shall impose mitigation charges payable to the issuer of mitigation bonds in order to finance the costs associated with mitigating one or more power purchase arrangements.
(c) Qualified cost mitigation charge order provisions. A qualified cost mitigation order shall contain, at a minimum, all of the following:
(1) A finding that a qualified cost mitigation charge order will promote the general good within the State of Vermont.
(2) A uniform mitigation charge imposed for the benefit of the issuer on the consumption of all electricity within the State of Vermont to the extent such electricity is conveyed to consumers by electric utilities, and a requirement that such charge be reflected on ratepayer bills in a manner that clearly reflects both the amount of the charge and the reduction in power costs resulting from the charge.
(3) A specific mechanism for automatic adjustment of the mitigation charge, at least annually, in accordance with electricity consumption forecasts prepared by the Rule 4.100 purchasing agent or other entity approved by the Commission, so that the mitigation charge is imposed at all levels designed to provide revenues sufficient to make timely payments of accrued interest and scheduled principal on all mitigation bonds, as well as ongoing administrative expenses, credit enhancement fees, and scheduled overcollateralization amounts with respect to such mitigation bonds. This automatic adjustment may implement a system in which the mitigation charge is initially paid in full by the electric utilities, and uncollectable amounts plus reasonable carrying costs are reimbursed to the utilities as part of the adjustment.
(4) The covenant and pledge of the State of Vermont set forth in subsection (h) of this section.
(d) Approval by the Commission. The Commission may approve within five years following July 1, 2002 a qualified cost mitigation charge order for buydowns or other appropriate modifications, except buyouts, of power purchase arrangements upon finding that such an order will promote the general good within the State of Vermont. To determine that such an order will promote the general good, the Commission shall find that:
(1) significant, quantifiable savings are substantially likely to result from the buydowns and other appropriate modification of purchase power arrangements and the amount of such savings;
(2) such savings will be passed on to electric ratepayers pursuant to subsection (m) of this section;
(3) facilities whose power purchase arrangements are the subject of the buydowns or other appropriate modifications will be reasonably assured to continue to operate for the life of their power purchase arrangements.
(e) Additional factors. The Commission shall also give consideration to the following factors:
(1) the feasibility of any prospective alternative methods of achieving ratepayer savings;
(2) any impact of the transaction on existing or prospective opportunities for electric consumers to exercise retail choice;
(3) the impact of the transaction on renewable energy resources;
(4) the specific regulatory and accounting treatment that will be required of the purchasing agent, the issuer, the participating qualifying facilities, and the participating electric utilities; and
(5) such other related factors as the Commission deems appropriate.
(f) Collections and remittances. Mitigation charges and the right to receive mitigation charges shall be property of the issuer. The right to receive mitigation charges shall constitute a present interest in property. If requested by the issuer or any successor that is entitled to receive mitigation charges, mitigation charges shall be collected by each participating electric utility for the benefit of the issuer or the issuer’s transferee. Mitigation charges collected by an electric utility shall be remitted by such electric utility to the issuer or its designee within one month after receipt thereof by such electric utility, or such shorter period as shall be designated by the Commission. Upon 30 days’ written notice to an electric utility, the issuer or any successor entitled to receive mitigation charges at any time and for any reason may direct that the electric utility shall cease to collect mitigation charges. Any electric utility in possession of mitigation charges shall have no right, title, or interest in such collections, but rather shall hold such collections in trust for the benefit of the issuer.
(g) Nonbypassable. Mitigation charges shall be separately stated on consumers’ retail electric bills and shall be payable regardless of any change in structure or identity of the electric utility and regardless of any change in ownership or operation of any electric generation, transmission, or distribution facilities. If a consumer pays only part of its electric bill for any period, a pro rata portion of the payment may be applied to payment of the mitigation charge for the period.
(h) State pledge. The State of Vermont covenants and pledges for the benefit of the issuer, any assignee of the issuer, and the owners of mitigation bonds that neither the mitigation charge nor the automatic adjustment mechanism set forth in subsection (e) of this section shall be altered, revoked, amended, postponed, impaired, limited, or terminated by the State of Vermont, by the Commission, or by any other agency or instrumentality of the State, absent adequate provision for the protection of the issuer, any designee of the issuer, and the owners of the mitigation bonds. The Commission, as agent of the State of Vermont, is authorized and directed to deliver written confirmation of this covenant and pledge in connection with the issuance of all mitigation bonds.
(i) Bankruptcy. A qualified cost mitigation charge order shall remain in full force and effect, notwithstanding any bankruptcy, reorganization, or other insolvency proceeding with respect to:
(1) any electric utility or successor or assign of any electric utility; or
(2) the Rule 4.100 purchasing agent or any successor or assign of the Rule 4.100 purchasing agent.
(j) Assignment of mitigation charge revenues. The issuer may grant a security interest in, or otherwise assign mitigation charges and the right to receive mitigation charges in connection with, the issuance of mitigation bonds. Such grant or assignment shall be valid and enforceable without delivery or filing.
(k) Hearing procedure. A qualified cost mitigation charge order shall be issued only upon hearing, following due notice to all electric utilities, the owners of all participating qualifying facilities, the Department, and the Rule 4.100 purchasing agent. A qualified cost mitigation charge order issued under this section shall involve all of the State’s electric utilities, absent a showing of good cause by any such utility as to why the requirements and customer benefits resulting from a qualified cost mitigation charge order should not be applicable to it.
(l) Pass-through of savings. A qualified cost mitigation charge order shall contain measures to ensure that savings resulting from that order are passed through to the benefit of electric ratepayers. Such measures may include reduction in utility regulatory assets or creation of regulatory liabilities, adjustments to depreciation or amortization schedules, or the filing of revised tariffs reflecting such savings, which tariffs may be ordered by the Commission without regard to the remaining provisions of this title.
(m) In establishing the appraisal value for the assessment of property taxes on the facilities whose power purchase arrangements are the subject of the buydowns or other appropriate modifications, the municipality may include the amount of any cost mitigation payments made under the authority of this section. For municipalities using an income-based valuation method, the value of any lump sum mitigation payment shall be amortized or prorated over the period of the cost mitigation contract.
(n) Report to General Assembly. Upon approval of a cost mitigation order, the Commission shall submit a report to the General Assembly containing the order and detailed information on the findings of the Commission, including the risks, savings, and costs likely to result from the buydowns and other appropriate modifications of purchase power arrangements contained in the order.
(Added 2001, No. 145 (Adj. Sess.), § 3; amended 2023, No. 85 (Adj. Sess.), § 365, eff. July 1, 2024.)
§ 209b [Reserved for future use.]
§ 209c Electricity affordability program
(a) The Public Utility Commission shall design a proposed electricity affordability program in the form of draft legislation. The program shall be developed with the aid of an electricity affordability program collaborative. The collaborative, composed of representatives from the electric utilities, residential customers, consumer representatives, low-income program representatives, representatives from programs for elders, the Department of Public Service, the Agency of Human Services, and other stakeholders identified by the Commission, shall aid in the development of an electricity affordability program, as well as requirements for the implementation and funding of the program. The proposed electricity affordability program will be presented to the Vermont General Assembly in the form of draft legislation for consideration in January 2007.
(b) The proposed electricity affordability program shall provide assistance in the payment of electricity bills for eligible low-income residential customers served by electric companies subject to the jurisdiction of the Commission.
(c) In developing the electricity affordability program, the Commission shall review the successes and administrative burdens of similar programs in operation in other states and consider the following goals, which shall be afforded equal weight in formulating the program:
(1) the need to provide payment assistance to low-income customers at and below 150 percent of the federal poverty level;
(2) the need for automatic screening and enrollment methods of eligible customers by means of information obtained from existing means-tested financial assistance programs administered by other Vermont agencies, such as food stamps, Medicaid, LIHEAP, or TANF; and
(3) the need to design a program that is funded by all customer classes in an equitable and reasonable manner and that results in the reimbursement of net incremental costs incurred by electric utilities to implement the program, taking into consideration the benefits as well as the costs.
(Added 2005, No. 208 (Adj. Sess.), § 10a; amended 2013, No. 96 (Adj. Sess.), § 191.)
§ 210 Electric companies; interconnection facilities
(a) The Public Utility Commission shall have jurisdiction to order electric companies subject to its supervision to build or rebuild electric transmission lines in order to provide adequate interconnection between the transmission systems of the State. The Commission shall have power to exercise this jurisdiction only after due notice to all interested parties and opportunity for hearing and after making findings based upon adequate evidence that the ordered construction:
(1) is necessary in the interests of consumers of electrical energy;
(2) is not detrimental to the interests of the investors of the company ordered to build or rebuild; and
(3) will serve the public good.
(b) The Commission may allocate the cost of building or rebuilding between the companies whose facilities are to be interconnected, providing that the findings referred to are made as to each company affected by the allocation.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1999, No. 157 (Adj. Sess.), § 3; 2023, No. 85 (Adj. Sess.), § 366, eff. July 1, 2024.)
§ 211 Electric energy from inside or outside State
(a) The Department of Public Service is hereby designated as the agent of the State of Vermont with full powers to act for and represent the State in any negotiations, arrangements, or proceedings for the procurement of electric energy from any source outside the State of Vermont or electric energy generated in the State by a producer, cooperative, municipal, or privately owned, which is subject to the supervision of the Department under this chapter with the right, with the approval of the Commission and the Governor, to contract for the purchase of such power and the resale on a nonprofit basis of such power to the electric distribution or transmission companies, cooperative, municipal, and privately owned, without preference or discrimination, for distribution within the State; provided, however, that purchases from sources inside the State of Vermont may be contracted for by the Department of Public Service as agent for the State only upon request of the seller and a determination by the Department that the purchase of such power and its resale on a nonprofit basis to electric distribution or transmission companies, cooperative, municipal, and privately owned, is in furtherance of the needs of the State of Vermont. If the term of any proposed purchase exceeds five years, it shall be subject to the approval of the Commission under section 248 of this title. In addition, the Department of Public Service may, with the approval of the Commission and the Governor, contract for the resale of the power outside the State of Vermont, if resale outside the State is reasonably incidental to and in furtherance of the needs of the State of Vermont. Revenues realized by the Department from such resale outside the State shall be used to defray the costs of such resale, and any revenues in excess of such costs, including interest earned on excess revenues, shall be applied first to reduce the Department’s retail rates under section 212a of this title, and thereafter any remaining excess shall be applied to reduce the Department’s wholesale rates to Vermont utilities. The Department of Public Service, with the approval of the Commission, is authorized and empowered to enter into contracts for the transmission of such energy from the place of purchase to the point or points of resale. The Department shall take all reasonable steps to ensure that the contracts it enters into for the transmission, purchase, and wholesale or retail sale of electricity shall be in writing. The Department of Public Service is authorized and empowered to employ additional engineering and legal personnel to assist in the procurement of such energy.
(b) [Repealed.]
(c) An enterprise fund is established in the Department of Public Service to consist of revenues from the resale of power and to support the activities authorized in this section and sections 212 and 212a of this title. Balances shall remain in the fund at the end of each fiscal year, and the fund shall be appropriated and expended in accordance with 32 V.S.A. § 462(b). These monies shall not be available to meet the general obligations of the State.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1967, No. 196; 1979, No. 204 (Adj. Sess.), § 25, eff. Feb. 1, 1981; 1987, No. 65, § 2, eff. May 28, 1987; 1987, No. 281 (Adj. Sess.), § 308, eff. June 21, 1988; 2011, No. 139 (Adj. Sess.), § 51, eff. May 14, 2012; 2011, No. 162 (Adj. Sess.), § E.233.)
§ 212 Niagara power project
The Department of Public Service, in addition to the powers conferred upon it by section 211 of this title and notwithstanding any limitations on such authority imposed thereby or by any other law of this State, is hereby designated as the agent of the State of Vermont with full power to act for and represent the State in any negotiations, arrangements, or proceedings for the procurement of electrical energy from the Niagara power project authorized by Congress in Public Law 85-159 (16 U.S.C. § 836) and for which a license was issued to the power authority of the State of New York by the Federal Power Commission as Project 2216, with the right, with the approval of the Commission, to contract for the purchase of such power and resale thereof in accordance with the terms of said federal legislation with federal license.
(1959, No. 326 (Adj. Sess.), eff. Jan. 29, 1960; amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 26, eff. Feb. 1, 1981.)
§ 212a Retail sales by Department; statutory authorization
(a) The Department of Public Service, in addition to the powers conferred upon it by sections 211 and 212 of this title and notwithstanding any limitations on that authority imposed by those sections or by any other law of this State, is authorized to purchase from any source and to distribute and sell at retail without unjust discrimination, electrical energy directly to all consumers of electricity in Vermont, under the provisions of this section and sections 212b-212f of this title.
(b) The Department may continue to purchase, sell, and distribute electric capacity and energy at retail pursuant to contracts or arrangements that existed under the terms of this section prior to changes effected by 1987, No. 65. Any purchase, sale, and distribution of electricity by the Department to replace or exceed amounts sold at retail by the Department on May 28, 1987 shall be subject to the provisions of this section and sections 212b-212f as added or amended by 1987, No. 65.
(Added 1985, No. 20, eff. April 23, 1985; amended 1987, No. 65, § 3, eff. May 28, 1987.)
§ 212b Repealed
[Repealed]
(Added 1987, No. 65, § 4, eff. May 28, 1987; repealed by 2023, No. 53, § 136, eff. June 8, 2023.)
§ 212c Retail sale by the Department; Commission approval
(a) The Department shall not enter into a contract or arrangement for retail sales unless approved by the Public Utility Commission under this section. Before the Public Utility Commission approves any retail sale of energy or capacity under this section, it shall conclude that the sale will promote the public good of the State by finding that:
(1) the proposed sale, where appropriate, is reasonably required to meet actual or projected growth in statewide demand, to replace amounts of electricity or capacity sold at retail by the Department on May 28, 1987, or to provide capacity or energy needs arising from a bankruptcy filing by any Vermont electric utility;
(2) the Department’s retail rates are just and reasonable, the sale will not result in unjust discrimination in rates, and the sale will result in economic benefits for the State and its residents;
(3) the sale will not adversely affect system stability and reliability, and the sale will be in compliance with the Electric Energy Plan adopted under section 202 of this title, or that there exists good cause to permit the proposed sale; and
(4) the sale is in the best interests of the ratepayers, and that the current and future benefits of the sale outweigh the current and future costs to the State’s residents.
(b) The Commission shall make its final determination under this subsection within six months after a filing by the Department. The Department’s rate filings and any adjustments or exceptions to them shall be consistent with the procedures set forth in sections 225, 226, 227, 228, and 229 of this chapter, where applicable.
(Added 1987, No. 65, § 4, eff. May 28, 1987; amended 2023, No. 85 (Adj. Sess.), § 367, eff. July 1, 2024.)
§ 212d Access; negotiations; Commission order
(a) Upon a finding by the Commission that the retail sale will promote the general good of the State under section 212c of this subchapter, Vermont electric utility companies shall enter into negotiations for contracts with the Department that are necessary for sale and distribution, including lease of facilities, provision of services to the Department to distribute electric energy, and the assurance of adequate reliability. The rates, charges, terms, or other conditions of such contracts shall be established by negotiations or pursuant to subsection (b) of this section. No electric utility company with which the Department shares a service territory may unreasonably deny replacement power needed by the Department to ensure adequate reliability of service.
(b) If, pursuant to subsection (a) of this section, the Department and a company are unable to negotiate the rates, charges, terms, or other conditions of the contracts, including the assurance of adequate reliability, either may petition the Public Utility Commission to establish the rates, terms, charges, or conditions, or resolve any other related matter, as the Commission determines to be just and reasonable. The Commission shall establish rates or charges under this section to compensate or reimburse such company for all costs reasonably and necessarily incurred by it to provide such arrangements. The Commission shall offer an opportunity for commencing a hearing within 45 days following filing of the petition and shall make either a final decision or, if unable to do so, an interim decision within three months of filing of the petition. If, within three months of filing, the Commission is unable to reach a final decision on the petition, the Commission shall direct the company to provide to the Department the necessary arrangements, including if necessary or appropriate, backup reliability, and access to facilities to allow the Department to distribute the electric energy involved in its proposal on an interim basis under such interim terms and conditions as the Commission finds to be reasonable pending a final Commission decision on the petition. The Commission shall render a final decision on the petition within six months following the date it is filed.
(Added 1987, No. 65, § 4, eff. May 28, 1987; amended 1999, No. 157 (Adj. Sess.), § 4; 2023, No. 85 (Adj. Sess.), § 368, eff. July 1, 2024.)
§ 212e Representation of public; production of records
(a) The Commission shall request the appearance of the Attorney General or shall appoint a member of the Vermont bar to represent the interests of the public or the State in any hearings before the Commission under section 212a, 212c, or 212d of this title regarding either:
(1) the sale of electrical energy by the Department of Public Service; or
(2) any other matter in which, upon petition of a company directly affected, the Commission finds that there is a conflict or a likelihood of a conflict between the Department’s role as seller or distributor of electrical energy under this section and the Department’s responsibility to represent the interests of the public or the State in that matter. The Department shall upon request provide sufficient funds to the Attorney General or person so appointed to engage necessary engineering or other technical advice.
(b) Any request by the Department of Public Service, or subpoena issued by the Department of Public Service for the production and examination of books, records, and witnesses, or to furnish information under this title, may, upon motion to the Commission by the company affected, be quashed upon a finding by the Commission that the request or subpoena would result in the production of a trade secret or other confidential research, development, or commercial information of the company that would materially disadvantage the company as a competitor to the Department in the sale or distribution of electrical energy.
(Added 1987, No. 65, § 4, eff. May 28, 1987.)
§ 212f Identification of Department sales on bills
(a) Each electric company, municipal, cooperative, or private, shall print on all bill statements to customers at least the following information:
(1) the number of kilowatt hours of electricity available to the customer from the Department of Public Service per billing cycle;
(2) the number of kilowatt hours of Department electricity sold to the customer during the billing cycle; and
(3) the price to the customer of the Department’s electricity per kilowatt hour.
(b) With respect to the information itemized in subsection (a) of this section, the companies are required to identify clearly the Department of Public Service as the retail source of the electricity.
(Added 1987, No. 65, § 5.)
§ 213 Interchange of electric facilities; power shortage
The Public Utility Commission, in the interest of public necessity, is hereby empowered to order, in writing, a company engaged in the manufacture, transmission, distribution, or sale of electricity directly to the public or to be used ultimately by the public for lighting, heating, or power, to transport electric energy over its transmission or distribution facilities at a reasonable service charge and in such manner as the Commission shall direct when such transmission will alleviate an electric power shortage within this State.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 180, § 1; 1967, No. 185, § 1, eff. April 17, 1967.)
§ 214 Application for interconnection; joint use of facilities; and resolution of transmission disputes
(a) The Public Utility Commission, upon application of any electric company, municipal, cooperative, or privately owned, engaged or authorized to engage in the manufacture, transmission, distribution, or sale of electric energy, may by order direct an electric company, municipal, cooperative, or privately owned, engaged in the manufacture, transmission, distribution, or sale of electric energy, to establish physical connection of its transmission or distribution facilities with the facilities of one or more other such electric company or companies, to sell energy to, to exchange energy with, to transmit or distribute energy for any other such electric company or companies. In addition, the Commission, upon application of the Department of Public Service, may by order direct an electric company engaged in the transmission of electric energy to transmit energy for the Department. For the purposes of this section, a company “authorized to engage” means a municipal company authorized under chapter 79 of this title, a cooperative authorized under chapter 81 of this title, or a privately owned company authorized by its articles of association, charter, or bylaws. However, the Commission shall have no authority to compel any electric company to sell or exchange, transmit, or distribute energy when to do so would impair its ability to render adequate service to its customers. The Commission’s order may only be issued after due notice to all interested parties and findings based upon adequate evidence that the Commission’s action will be consistent with the general good of the State and that it is not detrimental to the interest of investors or consumers. The Commission may prescribe the terms and conditions of the arrangement to be made between the electric companies, including the Department of Public Service, affected by the order, including the compensation or reimbursement reasonably due to any of them, and in the case of a new physical connection the apportionment of costs between or among them, provided that a company making application for a connection that will inure to its sole benefit shall assume the entire cost of the connection.
(b) The Commission shall have authority to arbitrate disputes between or among users or prospective users of transmission facilities located within the State, where such disputes arise under any agreement or under any State or federal tariff relating to the provision of or entitlements to transmission services and providing for arbitration by the Commission. In conducting such arbitration, the Commission shall apply the terms and conditions set forth in the agreement or tariff, provided that where a user or prospective user proposes a change in the provision of entitlements to transmission services, it shall bear the burden of proving that the proposed change, including any reduction in or adverse effect upon the transmission services of or entitlements held by any other user, promotes the general good of the State.
(c) In any arbitration proceeding conducted pursuant to this section, the Commission shall give notice to all Vermont electric companies, the Department, and any other persons or entities that have notified the Commission that they hold entitlements to the transmission services that will be the subject of the proceeding. Upon proper application, all persons and entities entitled to notice under this subsection shall be permitted to participate in the proceeding.
(d) The provisions of 12 V.S.A. §§ 5671(6)-(9) and 5676-5679 shall not apply to any arbitration proceeding conducted pursuant to the provisions of this section if the agreement or tariff under which arbitration is being conducted provides for direct appeal of questions of law to the Supreme Court. In such cases, any award, order, or decree of the Commission shall, solely for purposes of proceedings subsequent to the issuance of the same, be treated as if it were an order of the Commission acting in a quasi-judicial capacity in a contested case, except that the Commission shall have no power of enforcement. The provisions of sections 12, 14, and 15 of this title shall also apply in such cases.
(e) Notwithstanding 12 V.S.A. § 5652(b), a provision to arbitrate transmission disputes is enforceable if contained in a validly filed state or federal tariff. Unless otherwise provided, a provision to arbitrate contained in a validly filed tariff creates a duty to arbitrate and is valid and enforceable, except upon such grounds as exist for the termination or revocation of the tariff.
(Added 1967, No. 185, § 22, eff. April 17, 1967; amended 1981, No. 149 (Adj. Sess.), eff. April 13, 1982; 1987, No. 65, § 6, eff. May 28, 1987; 1987, No. 237 (Adj. Sess.), eff. May 24, 1988.)
§ 215 Natural gas
The Department of Public Service, or its duly appointed representative, is hereby authorized as an agency of the State to represent the interests of the State before the Federal Power Commission or other body in all matters relating to the transportation and distribution of natural gas into the State of Vermont or the New England states. Upon findings by the natural gas study commission that (a) the procurement of natural gas for the State of Vermont or parts thereof is economically feasible and could substantially promote the interests of Vermont consumers, domestic and industrial, and (b) that such procurement cannot be obtained by agreement between or among gas transmission or distribution companies within and outside the State, within a reasonable time, not to exceed two years, the Department of Public Service shall be also designated as the agent of the State of Vermont with full powers to act for and represent the State in any negotiations, arrangements, or proceedings for the procurement of natural gas from any source within or outside of the State of Vermont with the right, with the approval of the Governor, to contract for the purchase and transmission of such gas and the resale thereof on a nonprofit basis to the gas transmission or distribution companies, cooperative, municipal, and privately owned, without preference or discrimination, for transmission or distribution within the State. With the approval of the Governor, it may enter into contracts for the transmission of natural gas from the place of purchase to a point or points within the State of Vermont.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 267, § 2, eff. Aug. 1, 1961; 1979, No. 204 (Adj. Sess.), § 35, eff. Feb. 1, 1981.)
§ 216 Gas rate fixing
The Public Utility Commission, under its general jurisdiction over public utilities, shall have authority to fix rates and determine the minimum standards of service for consumers in the event natural gas shall be piped into the State.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 217 Department to prosecute
The Department of Public Service, through the Director for Public Advocacy, shall represent the public at such hearing when the matters involved result directly from a proposed increase in rates, tolls, or charges, or the issuing of stock, bonds, notes, or other evidence of indebtedness for which the approval of the Commission is required by law. In any proceeding, the Commission may request the appearance of the Attorney General or appoint a member of the Vermont bar to represent the interests of the public or State.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1979, No. 204 (Adj. Sess.), § 27, eff. Feb. 1, 1981.)
§ 218 Jurisdiction over charges and rates
(a) When, after opportunity for hearing, the rates, tolls, charges, or schedules are found unjust, unreasonable, insufficient, or unjustly discriminatory, or are found to be preferential or otherwise in violation of a provision of this chapter, the Commission may order and substitute such rates, tolls, charges, or schedules, and make such changes in any rules, measurements, practices, or acts of such company relating to its service, and may make such order as will compel the furnishing of such adequate service as shall at such hearing be found by it to be just and reasonable. This section shall not be construed to require the same rates, tolls, or charges from any company subject to supervision under this chapter for like service in different parts of the State, but the Commission in determining these questions shall investigate local conditions and its final findings and judgment shall take cognizance thereof. This section does not prohibit a telecommunications company from filing tariffs that condition the availability of an intrastate service upon subscription to an interstate or unregulated service from the same or an affiliated company, provided that an incumbent local exchange carrier shall provide a plan to allocate reasonably revenue between the regulated intrastate service and other services. The Commission shall retain the authority to review the tariff filing to determine whether it is just and reasonable.
(b) The Department of Public Service shall propose, and the Commission through the establishment of rates of return, rates, tolls, charges, or schedules shall encourage the implementation by electric and gas utilities of energy-efficiency and load management measures that will be cost-effective for the utilities and their customers on a life cycle cost basis. The Commission shall approve rate designs to encourage the efficient use of natural gas and electricity, including consideration of the creation of an inclining block rate structure for residential rate customers with an initial block of low-cost power available to all residences.
(1) To implement the requirements of this subsection, the Public Utility Commission shall continue its investigation of the following:
(A) the parameters for residential inclining block rate designs;
(B) alternative rate designs, such as critical peak pricing programs or more widespread use of time-of-day rates, that would encourage more efficient use of electricity;
(C) the possible inclusion of exemptions from otherwise applicable inclining block rates or rate designs to encourage efficiency for situations in which special health needs or another extraordinary situation presents such a significant demand for electricity that the Commission determines use of those rates would cause undue financial hardship for the customer.
(2) By December 31, 2008, the Commission shall issue a report and plan for implementation based upon the results of its investigation. The plan shall require each retail company to upgrade its rates as necessary to implement new rate designs appropriate to encourage efficient energy use, which shall include residential inclining block rates, if the Commission determines that those rates would be appropriate, by a specified date, or as part of its next rate-related appearance before the Commission, or according to a timetable otherwise specified by the Commission. In implementing these rate designs, the Commission shall consider the appropriateness of phasing in the rate design changes to allow large users of energy a reasonable opportunity to employ methods of conservation and energy efficiency in advance of the full effect of the changes.
(3) Notwithstanding any provision of law to the contrary, an applicant may propose and the Commission may approve or require an applicant to adopt a rate design that includes dynamic pricing, such as real-time pricing rates. Under such circumstances, the Commission may alter or waive the notice and filing provisions that would apply otherwise under section 225 of this title, provided the applicant ensures that each customer receives sufficient advance notice of the time-of-day usage rates.
(c)(1) The Public Utility Commission shall take any action necessary to enable the State of Vermont and telecommunications companies offering service in Vermont to participate in the federal Lifeline program administered by the Federal Communications Commission (FCC) or its agent and also the Vermont Lifeline program described in subdivision (2) of this subsection.
(2) A household that qualifies for participation in the federal Lifeline program under criteria established by the FCC or other federal law or regulation shall also be eligible to receive a Vermont Lifeline benefit for wireline voice telephone service. The Vermont Lifeline benefit established under this subdivision shall be set at an amount not to exceed the benefit provided to a household as of October 31, 2017 or $4.25, whichever is greater, and shall be applied as a supplement to any wireline voice benefit received through participation in the federal Lifeline program. However, in no event shall the aggregate amount of benefits received through the federal and State programs described in this subdivision exceed a household’s monthly basic service charge for wireline services, including any standard usage and mileage charges.
(3) A company designated as an eligible telecommunications carrier by the Commission pursuant to 47 U.S.C. § 214(e) shall verify an applicant’s eligibility for receipt of federal or State Lifeline benefits as required by federal law or regulation or as directed by the Vermont Agency of Human Services, as applicable. The Agency shall provide the FCC or its agent with categorical eligibility data regarding an applicant’s status in qualifying programs administered by the Agency.
(4) Notwithstanding any provisions of this subsection to the contrary, a subscriber who is enrolled in the Lifeline program and has obtained a final relief from abuse order in accordance with the provisions of 15 V.S.A. chapter 21 or 33 V.S.A. chapter 69 shall qualify for a Lifeline benefit credit for the amount of the incremental charges imposed by the local telecommunications company for treating the number of the subscriber as nonpublished and any charges required to change from a published to a nonpublished number. As used in this section, “nonpublished” means that the customer’s telephone number is not listed in any published directories, is not listed on directory assistance records of the company, and is not made available on request by a member of the general public, notwithstanding any claim of emergency a requesting party may present. The Department for Children and Families shall develop an application form and certification process for obtaining this Lifeline benefit credit.
(5) [Repealed.]
(d) The Commission may permit recovery in a company’s rates of all or a reasonable portion of the company’s expenditures directly related to aesthetic improvements of utility substations, provided that such aesthetic improvements are incidental to other necessary expenditures at or in the vicinity of the substation.
(e) Notwithstanding any other provisions of this section, the Commission, on its own motion or upon petition of any person, may issue an order approving a rate schedule, tariff, agreement, contract, or settlement that provides reduced rates for low-income electric utility consumers better to ensure affordability. As used in this subsection, “low-income electric utility consumer” means a customer who has a household income at or below 185 percent of the current federal poverty level. When considering whether to approve a rate schedule, tariff, agreement, contract, or settlement for low-income electric utility consumers, the Commission shall take into account the potential impact on, and cost-shifting to, other utility customers.
(f) Regulatory incentives for renewable generation.
(1) Notwithstanding any other provision of law, an electric distribution utility subject to rate regulation under this chapter shall be entitled to recover in rates its prudently incurred costs in applying for and seeking any certificate, permit, or other regulatory approval issued or to be issued by federal, State, or local government for the construction of new renewable energy to be sited in Vermont, regardless of whether the certificate, permit, or other regulatory approval ultimately is granted.
(2) The Commission is authorized to provide to an electric distribution utility subject to rate regulation under this chapter an incentive rate of return on equity or other reasonable incentive on any capital investment made by such utility in a renewable energy generation facility sited in Vermont.
(3) To encourage joint efforts on the part of electric distribution utilities to support renewable energy and to secure stable, long-term contracts beneficial to Vermonters, the Commission may establish standards for preapproving the recovery of costs incurred on a renewable energy plant that is the subject of that joint effort, if the construction of the plant requires a certificate of public good under section 248 of this title and all or part of the electricity generated by the plant will be under contract to the utilities involved in that joint effort.
(4) In this subsection, “plant,” “renewable energy,” and “new renewable energy” shall be as defined in section 8002 of this title.
(g) Each company subject to the Public Utility Commission’s jurisdiction that distributes electrical energy shall have in place a rate schedule for street lighting that provides an option under which efficient streetlights, including light-emitting diode (LED) lights, are installed on company-owned fixtures. These rate schedules also shall include a separate option under which customers may own street lighting and install efficient streetlights, including LED lights, on customer-owned fixtures.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1981, No. 245 (Adj. Sess.), § 1; 1985, No. 13, eff. April 11, 1985; 1985, No. 48, § 2; 1985, No. 176 (Adj. Sess.), eff. May 13, 1986; 1989, No. 146 (Adj. Sess.); 1991, No. 239 (Adj. Sess.), § 1, eff. June 1, 1992; 1995, No. 99 (Adj. Sess.), § 7; 1997, No. 135 (Adj. Sess.), § 2; 1999, No. 147 (Adj. Sess.), § 4; 1999, No. 152 (Adj. Sess.), § 273; 1999, No. 157 (Adj. Sess.), §§ 5, 16; 2003, No. 98 (Adj. Sess.), § 2; 2005, No. 174 (Adj. Sess.), § 58; 2003, No. 208 (Adj. Sess.), § 11; 2007, No. 92 (Adj. Sess.), §§ 13, 13a; 2009, No. 45, § 6, eff. May 27, 2009; 2009, No. 78 (Adj. Sess.), § 23, eff. April 15, 2010; 2011, No. 47, § 20f, eff. May 25, 2011; 2011, No. 139 (Adj. Sess.), § 51, eff. May 14, 2012; 2013, No. 105 (Adj. Sess.), § 1; 2015, No. 56, § 16; 2017, No. 41, § 2, eff. Nov. 1, 2017; 2021, No. 42, § 5, eff. May 20, 2021; 2021, No. 105 (Adj. Sess.), § 434, eff. July 1, 2022; 2023, No. 85 (Adj. Sess.), § 369, eff. July 1, 2024.)
§ 218a Permanent telecommunications relay service
(a)(1) The Department of Public Service shall develop the necessary standards for the establishment of a permanent, statewide telecommunications relay service and for an associated equipment program.
(2) The standards developed by the Department shall be equal to or exceed those standards mandated by the Americans With Disabilities Act of 1990 (Public Law 101-336, 104 Stat. 327 (1990)) and expressly require that the designated provider of Vermont’s telecommunications relay services comply, as expeditiously as possible, with any additional federal regulations that may be promulgated by the Federal Communications Commission in accordance with the provisions of this section.
(b) The Department of Public Service shall issue a request for proposal seeking competitive bids from qualified vendors to provide telecommunications relay services and competitive bids from qualified vendors to provide telecommunications equipment in accordance with the provisions of this section, including the standards developed under subsection (a) of this section. The term of any contract shall not exceed four years.
(c) The Department of Public Service may contract with the qualified bidder offering the most favorable proposal, giving due consideration to costs, to quality of service, and to the interests of the community of people who are deaf, hard of hearing, or have speech limitations.
(d)(1) The Department of Public Service shall establish the Vermont Telecommunications Relay Service Advisory Council composed of the following members: one representative of the Department of Public Service designated by the Commissioner of Public Service; one representative of the Department of Disabilities, Aging, and Independent Living; two representatives of the deaf community; one member of the community of people who are hard of hearing or have a speech limitation; one representative of a company providing local exchange service within the State; and one representative of an organization currently providing telecommunications relay services.
(2)(A) The Council shall elect from among its members a chair and vice chair. Meetings shall be convened at the call of the Chair or a majority of the members of the Council. The Council shall meet not more than six times a year.
(B) The members of the Council who are not officers or employees of the State shall receive per diem compensation and expense reimbursement in amounts authorized by 32 V.S.A. § 1010(b). The costs of the compensation and reimbursement and any other necessary administrative costs shall be included within the contract entered into under subsection (c) of this section.
(3) The Council shall advise the Department of Public Service and the contractor for telecommunications relay services on all matters concerning the implementation and administration of the State’s telecommunications relay service, including the telecommunications equipment grant program established pursuant to subsection (e) of this section.
(e)(1) The Department shall propose and the Commission shall establish by rule or order a telecommunications equipment grant program to assist persons who are deaf, deaf-blind, hard of hearing, have a speech limitation, and persons with physical disabilities that limit their ability to use standard telephone equipment to communicate by telephone.
(2) Pursuant to this program, a person who is deaf, deaf-blind, hard of hearing, has a speech limitation, or a person with a physical disability that limits his or her ability to use standard telephone equipment whose modified adjusted gross income as defined in 32 V.S.A. § 5829(b)(1) for the preceding taxable year was less than 200 percent of the official poverty line established by the U.S. Department of Health and Human Services for a family of six or the actual number in the family, whichever is greater, published as of October 1 of the preceding taxable year, may be eligible for a benefit toward the purchase, upgrade, or repair of equipment used to access the relay service or otherwise communicate by telephone. The total benefits allocable under this subsection shall not exceed $75,000.00 per year.
(3) In adopting rules, the Commission shall consider the following:
(A) prior benefits;
(B) degree of functional need;
(C) income;
(D) number of applicants;
(E) disposition of equipment upon change of residence; and
(F) appropriate limits on per person benefit levels based on the equipment needed and the income level of the applicant.
(f) The costs of the State’s telecommunications relay service and any equipment benefit under subsection (e) of this section shall be included as part of the Vermont Universal Service Fund Program.
(Added 1991, No. 6, § 2, eff. March 20, 1991; amended 1997, No. 135 (Adj. Sess.), § 4; 1999, No. 67 (Adj. Sess.), § 2; 1999, No. 157 (Adj. Sess.), § 6; 2001, No. 93 (Adj. Sess.), § 1; 2005, No. 171 (Adj. Sess.), § 4; 2005, No. 174 (Adj. Sess.), § 59; 2013, No. 96 (Adj. Sess.), § 192; 2017, No. 118 (Adj. Sess.), § 1, eff. May 2, 2018; 2019, No. 128 (Adj. Sess.), § 14.)
§ 218b Farm customers; energy efficiency; electric energy generation
Each Vermont electric distribution utility shall develop and implement comprehensive energy efficiency programs for its livestock and domestic fowl farm customers. Such programs shall include all program measures that the Public Utility Commission determines will be cost-effective as part of the utility’s least-cost integrated plan. Utilities shall file such proposed programs by August 1, 1991. The Commission shall require each utility to deliver approved program measures to farm customers as rapidly as possible thereafter, taking into consideration the need for these services, utility financial constraints, and cost-effective delivery mechanisms.
(Added 1991, No. 98; amended 1997, No. 124 (Adj. Sess.), § 5, eff. April 21, 1998.)
§ 218c Least-cost integrated planning
(a)(1) A “least-cost integrated plan” for a regulated electric or gas utility is a plan for meeting the public’s need for energy services, after safety concerns are addressed, at the lowest present value life cycle cost, including environmental and economic costs, through a strategy combining investments and expenditures on energy supply, transmission, and distribution capacity, transmission and distribution efficiency, and comprehensive energy efficiency programs. Economic costs shall be assessed with due regard to:
(A) the greenhouse gas inventory developed under the provisions of 10 V.S.A. § 582;
(B) the State’s progress in meeting its greenhouse gas reduction goals;
(C) the value of the financial risks associated with greenhouse gas emissions from various power sources; and
(D) consistency with section 8001 (renewable energy goals) of this title.
(2) “Comprehensive energy efficiency programs” shall mean a coordinated set of investments or program expenditures made by a regulated electric or gas utility or other entity as approved by the Commission pursuant to subsection 209(d) of this title to meet the public’s need for energy services through efficiency, conservation, or load management in all customer classes and areas of opportunity that is designed to acquire the full amount of cost-effective savings from such investments or programs.
(b) Each regulated electric or gas company shall prepare and implement a least-cost integrated plan for the provision of energy services to its Vermont customers. At least every third year on a schedule directed by the Public Utility Commission, each such company shall submit a proposed plan to the Department of Public Service and the Public Utility Commission. The Commission, after notice and opportunity for hearing, may approve a company’s least-cost integrated plan if it determines that the company’s plan complies with the requirements of subdivision (a)(1) of this section and of sections 8004 and 8005 of this title and is consistent with the goals of the Comprehensive Energy Plan issued under section 202b of this title.
(c) [Repealed.]
(d)(1) Least-cost transmission services shall be provided in accordance with this subsection. On or before July 1, 2006, any electric company that does not have a designated retail service territory and that owns or operates electric transmission facilities within the State of Vermont, in conjunction with any other electric companies that own or operate these facilities, jointly shall prepare and file with the Department of Public Service and the Public Utility Commission a Transmission System Plan that looks forward for a period of at least 10 years. A copy of the plan shall be filed with each of the following: the House Committees on Commerce and Economic Development and on Environment and Energy and the Senate Committees on Finance and on Natural Resources and Energy. The objective of the Plan shall be to identify the potential need for transmission system improvements as early as possible, in order to allow sufficient time to plan and implement more cost-effective nontransmission alternatives to meet reliability needs, wherever feasible. The Plan shall:
(A) identify existing and potential transmission system reliability deficiencies by location within Vermont;
(B) estimate the date, and identify the local or regional load levels and other likely system conditions at which these reliability deficiencies, in the absence of further action, would likely occur;
(C) describe the likely manner of resolving the identified deficiencies through transmission system improvements;
(D) estimate the likely costs of these improvements;
(E) identify potential obstacles to the realization of these improvements; and
(F) identify the demand or supply parameters that generation, demand response, energy efficiency, or other nontransmission strategies would need to address to resolve the reliability deficiencies identified.
(2) Prior to the adoption of any Transmission System Plan, a utility preparing a Plan shall host at least two public meetings at which it shall present a draft of the Plan and facilitate a public discussion to identify and evaluate nontransmission alternatives. The meetings shall be at separate locations within the State, in proximity to the transmission facilities involved or as otherwise required by the Commission, and each shall be noticed by at least two advertisements, each occurring between one and three weeks prior to the meetings, in newspapers having general circulation within the State and within the municipalities in which the meetings are to be held. Copies of the notices shall be provided to the Public Utility Commission, the Department of Public Service, any entity appointed by the Public Utility Commission pursuant to subdivision 209(d)(2) of this title, the Agency of Natural Resources, the Division for Historic Preservation, the Department of Health, the Agency of Transportation, the Attorney General, the chair of each regional planning commission, each retail electricity provider within the State, and any public interest group that requests, or has made a standing request for, a copy of the notice. A verbatim transcript of the meetings shall be prepared by the utility preparing the Plan, shall be filed with the Public Utility Commission and the Department of Public Service, and shall be provided at cost to any person requesting it. The Plan shall contain a discussion of the principal contentions made at the meetings by members of the public, by any State agency, and by any utility.
(3) Prior to the issuance of the Transmission Plan or any revision of the Plan, the utility preparing the Plan shall offer to meet with each retail electricity provider within the State, with any entity appointed by the Public Utility Commission pursuant to subdivision 209(d)(2) of this title, and with the Department of Public Service, for the purpose of exchanging information that may be relevant to the development of the Plan.
(4)(A) A Transmission System Plan shall be revised:
(i) within nine months of a request to do so made by either the Public Utility Commission or the Department of Public Service; and
(ii) in any case, at intervals of not more than three years.
(B) If more than 18 months shall have elapsed between the adoption of any version of the Plan and the next revision of the Plan, or since the last public hearing to address a proposed revision of the Plan and facilitate a public discussion that identifies and evaluates nontransmission alternatives, the utility preparing the Plan, prior to issuing the next revision, shall host public meetings as provided in subdivision (2) of this subsection, and the revision shall contain a discussion of the principal contentions made at the meetings by members of the public, by any State agency, and by any retail electricity provider.
(5) On the basis of information contained in a Transmission System Plan, obtained through meetings held pursuant to subdivision (2) of this subsection, or obtained otherwise, the Public Utility Commission and the Department of Public Service shall use their powers under this title to encourage and facilitate the resolution of reliability deficiencies through nontransmission alternatives, where those alternatives would better serve the public good. The Public Utility Commission, upon such notice and hearings as are otherwise required under this title, may enter such orders as it deems necessary to encourage, facilitate, or require the resolution of reliability deficiencies in a manner that it determines will best promote the public good.
(6) The retail electricity providers in affected areas shall incorporate the most recently filed Transmission Plan in their individual least-cost integrated planning processes, and shall cooperate as necessary to develop and implement joint least-cost solutions to address the reliability deficiencies identified in the Transmission Plan.
(7) Before the Department of Public Service takes a position before the Commission concerning the construction of new transmission or a transmission upgrade with significant land use ramifications, the Department shall hold one or more public meetings with the legislative bodies or their designees of each town, village, or city that the transmission lines cross and shall engage in a discussion with the members of those bodies or their designees and the interested public as to the Department’s role as public advocate.
(Added 1991, No. 99, § 2; amended 1999, No. 60, § 2, eff. June 1, 1999; 1999, No. 157 (Adj. Sess.), § 7; 2005, No. 61, § 9; 2007, No. 209 (Adj. Sess.), § 13; 2011, No. 62, § 25; 2011, No. 170 (Adj. Sess.), § 11; 2015, No. 40, § 30; 2015, No. 56, § 17; 2017, No. 113 (Adj. Sess.), § 173b; 2017, No. 139 (Adj. Sess.), § 9.)
§ 218d Alternative regulation of electric and natural gas companies
(a) Notwithstanding section 218 and sections 225-227 of this title, upon petition of an electric or natural gas company, upon request of the Department of Public Service, or on its own initiative, the Public Utility Commission may, after opportunity for hearing, approve alternative forms of regulation for an electric or natural gas company; provided, however, in the case of a municipal plant or department formed under local charter or chapter 79 of this title or an electric cooperative formed under chapter 81 of this title, any alternative forms of regulation approved by the Commission shall also be approved by a majority of the voters of a municipality or cooperative voting upon the question at a duly warned annual or special meeting held for that purpose. Before doing so, the Commission shall find that the proposed form of alternative regulation will:
(1) establish a system of regulation in which such companies have clear incentives to provide least cost energy service to their customers;
(2) provide just and reasonable rates for service to all classes of customers;
(3) deliver safe and reliable service;
(4) offer incentives for innovations and improved performance that advance state energy policy such as increasing reliance on Vermont-based renewable energy and decreasing the extent to which the financial success of distribution utilities between rate cases is linked to increased sales to end use customers and may be threatened by decreases in those sales;
(5) promote improved quality of service, reliability, and service choices;
(6) encourage innovation in the provision of service;
(7) establish a reasonably balanced system of risks and rewards that encourages the company to operate as efficiently as possible using sound management practices; and
(8) provide a reasonable opportunity, under sound and economical management, to earn a fair rate of return, provided such opportunity must be consistent with flexible design of alternative regulation and with the inclusion of effective financial incentives in such alternatives.
(b) If savings result from alternative regulation, the savings shall be shared with ratepayers as determined by the Commission.
(c) In the case of a municipal plant or department formed under local charter or chapter 79 of this title or an electric cooperative formed under chapter 81 of this title, alternative regulation may include authority for local elected officials to set and revise rates.
(d) Alternative regulation may include such changes or additions to, waivers of, or alternatives to, traditional rate-making procedures, standards, and mechanisms, including substantive changes to rate base-rate of return rate setting, as the Commission finds will promote the public good and will support the required findings in subsection (a) of this section. In addition, the Commission shall not allow a company to set aside funds collected from ratepayers for the purpose of supporting a future expansion or upgrade of its transmission or distribution network except after notice and opportunity for hearing and only if all of the following apply:
(1) There is a cost estimate for the expansion or upgrade that the company demonstrates is consistent with the principles of least-cost integrated planning as defined in section 218c of this title.
(2) The amount of such funds does not exceed 20 percent of the estimated cost of the expansion or upgrade.
(3) Interest earned on the funds is credited to the ratepayers.
(4) The funds are not disbursed to the company until after expansion or upgrade is in service.
(5) The funds are not used to defray any portion of the costs of expansion or upgrade in excess of the cost estimate described in subdivision (1) of this subsection.
(e) The Public Utility Commission may establish, by rule or order, requirements governing the filing of a petition to approve an alternative regulation plan.
(f) The Commission shall act on the petition within 12 months of the filing of a petition that complies with the Commission’s rules.
(g) An alternative regulation plan shall take effect not sooner than 30 days following its approval by the Commission.
(h) The Commission may establish, by rule or order, and may amend from time to time standards and procedures by which the effectiveness of the alternative form of regulation can be determined.
(i) The Commission, on its own motion or the motion of the Department of Public Service or a company operating under an alternative regulation plan pursuant to this section, may investigate any alternative regulation plan that is in effect. Following notice and an opportunity for hearing, the Commission may terminate or modify the alternative regulation plan upon a finding of good cause. Where the Commission revokes prior approval, the Commission shall determine whether the company’s current rates are just and reasonable, and, if not, shall establish new rates that are just and reasonable.
(j) Notwithstanding any provision of this section, a company may file for rates determined under and in accordance with sections 218, 225, 226, and 227 of this title to be effective at the time of the termination of any approved alternative regulation plan.
(k) In the case of a municipal utility, the Commission shall approve an alternative regulation plan only if the Commission finds that the plan will:
(1) Permit the municipal plant or department to fulfill all of its obligations, including its obligations to the holders of bonds issued under local charter or State law.
(2) Not violate existing covenants in outstanding municipal bonds or in contracts securing bonds issued by the Vermont Public Power Supply Authority.
(3) Not impair the municipality’s access to capital, including that in the municipal bond market. The Commission will consider the opinion of the utility’s bond counsel in making this decision.
(4) Not impair the municipal utility’s ability to participate in future bond issues by the Authority as contemplated by chapter 84 of this title. The Commission will consider the opinion of the Vermont Public Power Supply Authority in making this decision.
(l) In the case of an electric cooperative, the Commission shall approve an alternative regulation plan only if the Commission finds the plan will not violate covenants in existing mortgages or impair the cooperative’s access to capital.
(m) In the case of an investor-owned company, the Commission shall approve an alternative regulation plan, only if the Commission finds the plan will:
(1) not have an adverse impact on the electric company’s eligibility for rate-regulated accounting in accordance with generally accepted accounting standards if applicable; and
(2) reasonably preserve the availability of equity and debt capital resources to the company on favorable terms and conditions.
(n)(1) Notwithstanding subsection (a) of this section and sections 218, 225, 226, 227, and 229 of this chapter, a municipal company formed under local charter or under chapter 79 of this title and an electric cooperative formed under chapter 81 of this title shall be authorized to change its rates for service to its customers if the rate change is:
(A) applied to all customers equally;
(B) not more than three percent during any 12-month period;
(C) cumulatively not more than 10 percent from the rates last approved by the Commission; and
(D) not going to take effect more than 10 years from the last approval for a rate change from the Commission.
(2) The municipal company or electric cooperative shall provide written notice of a rate change pursuant to this subsection to its customers, the Department of Public Service, and the Commission at least 45 days prior to implementing the rate change. Included with the submission shall be a rate analysis describing the rationale for the rate change. Unless an objection to the rate change is filed by the Department of Public Service with the Commission within 45 days following this notice or the Commission orders an investigation on its own motion, the municipal company or electric cooperative may implement the rate change.
(3) If the Department does not object to the change within 30 days, five persons adversely affected by the change may apply at their own expense to the Commission by petition alleging why the change is unreasonable and unjust and asking that the Commission investigate the matter and make such orders as justice and law require.
(4) A municipal company or electric cooperative shall be eligible to change its rates pursuant to this subsection only if it has received approval for a rate change from its governing body at a duly warned meeting held for such purpose prior to filing its written notice with the Department and the Commission.
(5) The Commission shall establish, by rule or order, standards and procedures for implementing this subsection.
(o)(1) Notwithstanding subsections (a) and (n) of this section and sections 218, 225, 226, 227, and 229 of this chapter, a municipal company formed under local charter or under chapter 79 of this title and an electric cooperative formed under chapter 81 of this title shall be authorized to offer innovative rates or services to their customers as pilot programs without obtaining prior approval from the Commission if the rate or service:
(A) is designed to satisfy the requirements of subdivision 8005(a)(3) of this title or to advance the goals of the State Comprehensive Energy Plan;
(B) has a duration of 18 months or less; and
(C) shall not result in:
(i) additions of more than two percent of the municipal company’s or electric cooperative’s net assets; or
(ii) an increase in the municipal company’s or electric cooperative’s overall cost-of-service by more than two percent.
(2) The municipal company or electric cooperative shall provide written notice of an innovative rate or service to its customers, the Department of Public Service, and the Commission at least 45 days prior to offering the innovative rate or service to its customers. Included with the submission shall be the terms and conditions of service. Unless an objection to the innovative rate or service is filed with the Commission within 45 days following this notice or the Commission orders an investigation on its own motion, the municipal company or electric cooperative may commence offering the innovative rate or service to its customers.
(3) The municipal company or electric cooperative shall provide written notice to the Department of Public Service and the Commission at least 45 days prior to the end of an innovative rate or service duration period with any proposed modifications to the terms and conditions. Unless an objection to the innovative rate or service is filed with the Commission within 45 days following this notice or the Commission orders an investigation on its own motion, the municipal company or electric cooperative may continue offering the innovative rate or service to its customers. The Commission may allow for the innovative rate or service to remain in effect pending the outcome of an investigation into the notice filing.
(4) The Commission may establish, by rule or order, standards and procedures for implementing and interpreting this section.
(Added 2003, No. 69, § 2, eff. June 17, 2003; amended 2005, No. 61, § 11; 2015, No. 174 (Adj. Sess.), § 15a; 2021, No. 13, § 1; 2021, No. 105 (Adj. Sess.), § 435, eff. July 1, 2022; 2023, No. 85 (Adj. Sess.), § 370, eff. July 1, 2024; 2023, No. 179 (Adj. Sess.), § 1, eff. July 1, 2024.)
§ 218e Implementing State energy policy; manufacturing
To give effect to the policies of section 202a of this subchapter to provide reliable and affordable energy and ensure the State’s economic vitality, it is critical to retain and recruit manufacturing and other businesses and to consider the impact on manufacturing and other businesses when issuing orders, adopting rules, and making other decisions affecting the cost and reliability of electricity and other fuels. Implementation of the State’s energy policy should:
(1) encourage recruitment and retention of employers providing high-quality jobs and related economic investment and support the State’s economic welfare; and
(2) appropriately balance the objectives of this section with the other policy goals and criteria established in this title.
(Added 2013, No. 199 (Adj. Sess.), § 12; amended 2023, No. 85 (Adj. Sess.), § 371, eff. July 1, 2024.)
§ 219 Service
Each company subject to supervision under this chapter shall be required to furnish reasonably adequate service, accommodation, and facilities to the public. The charge made by any such company for any product or service shall be reasonable and without discrimination, except as provided in this chapter.
§ 219a Repealed
[Repealed]
2013, No. 99 (Adj. Sess.), § 10(c), effective January 1, 2017.
§ 219b Repealed
[Repealed]
2013, No. 99 (Adj. Sess.), § 10(c), effective January 1, 2017.
§ 220 Repealed
[Repealed]
1975, No. 56, § 2.
§ 221 Forms; orders
The Commission may prescribe the forms of all books, accounts, papers, and records of any public utility over which it has jurisdiction and such public utility shall keep and render its books, accounts, papers, and records accurately and faithfully in the manner and form prescribed by the Commission and comply with all orders and directions of the Commission relating to such books, accounts, papers, and records.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1985, No. 224 (Adj. Sess.), § 7.)
§ 222 Exceptions
Public utilities under the jurisdiction of a federal commission shall not be required to keep any system of accounts and records that would conflict with any requirement of such federal commission.
§ 223 Appeal from municipal authorities
A person or corporation aggrieved by an order or decision of the municipal authorities made under the provisions of any statute, relative to the granting of a license or permit for location, may bring an appeal to the Commission at any time within 30 days following the date of the order or decision. After notice and public hearing of all parties interested, as provided in section 208 of this subchapter, the decision of the Commission thereon shall be final, subject to a right to transfer such cause to the Supreme Court as provided by section 12 of this title.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 2023, No. 85 (Adj. Sess.), § 372, eff. July 1, 2024.)
§ 224 Special authority to municipality, to be under supervision of Commission
Any statute conferring authority upon municipalities to supervise or to make any order or regulation respecting any location, business, or company, subject to the provisions of this chapter, shall be construed as giving such municipalities jurisdiction without authority to alter or modify any order, judgment, decree, or regulation made by the Public Utility Commission.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 225 Rate schedules
(a) Within a time to be fixed by the Commission, each company subject to the provisions of this chapter shall file with the Department, with separate filings to the Directors for Regulated Utility Planning and Public Advocacy, schedules that shall be open to public inspection, showing all rates, including joint rates, for any service performed or any product furnished by it within the State, and as part of it shall file the rules that in any manner affect the tolls or rates charged or to be charged for any such service or product. Those schedules, or summaries of the schedules approved by the Department, shall be published by the company in two newspapers with general circulation in the State within 15 days after such filing. A change shall not be made in any such schedules, including schedules of joint rates or in any of the rules, except upon 45 days’ notice to the Commission and to the Department of Public Service, and notice to parties affected by the schedules as the Commission shall direct. The Commission shall consider the Department’s recommendation and take action pursuant to sections 226 and 227 of this subchapter before the date on which the changed rate is to become effective. All changes shall be plainly indicated upon existing schedules, or by filing new schedules in lieu thereof 45 days prior to the time the same are to take effect. Subject only to temporary increases, rates may not be raised without strictly complying with the notice and filing requirements set forth in this section. In no event may a company amend, supplement, or alter an existing filing or substantially revise the proof in support of such filing in order to increase, decrease, or substantiate a pending rate request, unless, upon opportunity for hearing, the company demonstrates that a change in filing or proof is necessary for the purpose of providing adequate and efficient service. However, upon application of any company subject to the provisions of this chapter, and with the consent of the Department of Public Service, the Commission may for good cause shown prescribe a shorter time within which such change may be made, but a change that in effect decreases such tolls or rates may be made upon five days’ notice to the Commission and the Department of Public Service and notice to parties affected as the Commission shall direct.
(b) Immediately upon receipt of notice of a change in a rate schedule filed by a company, the Department shall investigate the justness and reasonableness of that change. Within 30 days following receipt of this notice, the Department shall either report to the Commission the results of its investigations together with its recommendation for acceptance of the change, or it shall notify the Commission and other parties that it opposes the change. If the Department of Public Service reports its acceptance of the change in rates, the Commission may accept the change, or it may on its own motion conduct an investigation into the justness and reasonableness of the change, or it may order the Department to appear before it to justify its recommendation to accept the change. In no event shall a change go into effect without the approval of the Commission, except when a rate change is suspended and temporary or permanent rates are allowed to go into effect pursuant to subsection 226(a) or 227(a) of this subchapter. The Commission shall consider the Department’s recommendation and take action pursuant to sections 226 and 227 of this subchapter within 45 days following receipt of notice of a change in a rate schedule. In the event that the Department opposes the change, the Commission shall hear evidence on the matter and issue any orders as justice and law require. In any hearing on a change in rates, whether or not opposed by the Department, the Commission may request the appearance of the Attorney General or appoint a member of the Vermont bar to represent the public or the State.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 263, § 2, eff. July 31, 1961; 1979, No. 204 (Adj. Sess.), § 28, eff. Feb. 1, 1981; 1981, No. 226 (Adj. Sess.), §§ 1, 2, eff. May 6, 1982; 1985, No. 224 (Adj. Sess.), § 8; 1999, No. 157 (Adj. Sess.), § 8; 2019, No. 31, § 18; 2023, No. 85 (Adj. Sess.), § 373, eff. July 1, 2024.)
§ 226 Rates, hearings, bond
(a) Except in the case of municipal companies formed under local charter or under chapter 79 and cooperatives formed under chapter 81 of this title, upon six days’ notice to the company affected, the Commission may suspend a rate change until it makes a final determination on the request for a rate change. However, if it shall be made to appear to the satisfaction of the Commission, that the public interest requires a change in rates, charges, or services, or that such change is necessary for the purpose of providing adequate and efficient service or for the preservation of the property of the public service company devoted to public use, the Commission, after public notice and preliminary hearing, shall authorize upon such terms, conditions, or safeguards as it deems proper an immediate reasonable temporary increase in such price pending the final determination of the price to be thereafter charged by any such public service company and the Commission may as a condition of its order allowing such temporary increase, require the petitioning company to file with the Commission a bond running to the Commission members and their successors in office in amount and with sureties approved by the Commission, conditioned that within a reasonable time prescribed by the Commission after the termination of such proceedings, the company shall, with interest, repay to or may credit the account of the persons from whom such changed rates shall be collected all sums collected in excess of the rate in force at the time such changes are filed or of such rate as shall be determined to be just and reasonable. If the Commission fails to determine the application for temporary rates, if requested, within 30 days after it is made or within 45 days after suspension, whichever is later, the requested temporary rates shall take effect subject to refund as provided in this subsection.
(b) In the case of municipal companies formed under local charter or under chapter 79 and cooperatives formed under chapter 81 of this title, the Public Utility Commission shall not be empowered to suspend a change in the rates of a municipality or of a cooperative pending final determination as to the justness or reasonableness of such change, but the Commission shall require that the municipality or cooperative refund revenues collected in excess of those that are finally determined to be just and reasonable. Any increase in the rates of a municipality or cooperative shall be implemented by means of an identical percentage increase to each class or division of ratepayers under rate design tariffs previously approved by the Public Utility Commission until such time as the Public Utility Commission shall specifically approve an alteration in such rate design and corresponding tariffs.
(c) If the Department does not oppose the change as provided in section 225 of this title, five persons adversely affected by the change, or, if the change adversely affects fewer than five persons, any one person so affected may apply at their own expense to the Commission by petition alleging why the change is unreasonable and unjust and asking that the Commission investigate the matter and make such orders as justice and law require. The petition shall be filed within 38 days of the date of the notice of rate change that was filed pursuant to section 225 of this title. The Commission may suspend the rates as a result of the petition. The Commission may hold a hearing on the petition. Whether or not a hearing is held, the Commission shall make such orders as justice and law require.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 263, § 3, eff. July 31, 1961; 1979, No. 204 (Adj. Sess.),§§ 29, 30, eff. Feb. 1, 1981; 1981, No. 226 (Adj. Sess.), §§ 3, 4, eff. May 6, 1982; 2019, No. 31, § 19.)
§ 226a Contracts regarding basic exchange telecommunications services
(a) As used in this section, “basic exchange telecommunications service” shall mean the provision of publicly switched, voice grade interactive telecommunications services between or among two or more end users, where a single central office provides that service to those two or more end users. The term may also, at the Commission’s discretion, include services that are or have been tariffed at rates equivalent to local service rates for basic exchange services.
(b) The Department is authorized to negotiate, and upon approval of the Commission may execute on behalf of the State, a contract for a fixed term with any company providing basic exchange telecommunications services. Any such contract shall provide for:
(1) specified basic exchange rates during the life of the contract;
(2) minimum plant and equipment modernization schedules;
(3) specified service quality levels for telecommunications services, including those offered to competitors, measured by objective standards;
(4) furnishing such technical information as may be needed by a competitor in order for the competitor to offer and provide competitive services that require access to or utilize the company’s regulated basic exchange services in a manner technically equivalent to the company’s use of those regulated services;
(5) rates, terms, and conditions for access charges for use of the company’s facilities by competitors, that are established by order of the Commission unless otherwise approved under this section by the Commission;
(6) elimination or reduction of regulatory requirements under subsection 218(a) and sections 225, 226, 227, and 229 of this title, including rate of return requirements; and
(7) such other rates, terms, and conditions as the Department and company may agree upon and the Commission approves, provided that the parties to the contract affirmatively demonstrate and the Commission finds that such rates, terms, and conditions are consistent with the State telecommunications purposes established under section 202c of this title and after its adoption with the State Telecommunications Plan established under section 202d of this title.
(c) Any contract made pursuant to this section shall be written, signed by the parties, and filed with the Commission. At the time of filing a contract with the Commission, the company also shall file with the Commission for public inspection all information made available to the Department during the negotiations. After public notice and no less than 45 days after the parties have filed a contract with it, the Commission shall hold a hearing to determine whether it should approve the contract. In such proceedings, the public contract advocate appointed by the Attorney General under 3 V.S.A. § 165 shall represent the interests of the public and the State, and any interested party may intervene. The Commission shall grant approval only if it finds that a contract in its entirety is just and reasonable giving due consideration to the services and price levels covered and any risk of cross-subsidization, promotes the general good of the State, supports reasonable competition, contains fair and equitable provisions for the treatment of customer privacy interests, and takes into consideration any State Telecommunications Plan or policy adopted pursuant to section 202d of this title. The Commission shall render its decision within seven and one-half months from the date of filing of a contract. If the Commission does not grant approval, it may recommend modifications to the contract. Within 30 days after issuance of the Commission’s order, the company and the Department may file with the Commission, with service on parties to the proceeding, a modified contract, incorporating the Commission’s recommended modifications. Within 20 days after such filing, the Commission on its motion may conduct, or other substantially affected parties may request that the Commission conduct, hearings or other proceedings on the proposed modifications. Such requests, shall be granted only if the Commission finds that the proposed modifications deviate in substance from those recommended by the Commission or that the public interest requires that hearings be held. If no such requests are made or if the requests are denied, the Commission shall make a final decision approving or disapproving the modified contract within 45 days after the modified contract was filed. If the Commission conducts hearings, it shall make a final decision within 90 days after the modified contract was filed.
(d) The Commission shall retain jurisdiction over any contract under this section and shall hear and resolve any disputes or claims that may arise regarding its application. During the period of any contract under this section, a company shall continue to file with the Commission and the Department its rates, tariffs, and tolls for any service provided, including any service subject to the contract, and shall also file on a monthly basis its rate of return under the contract.
(e) If at any time, after notice and opportunity for hearing, the Commission determines that changes in federal regulatory law, unforeseen and significant economic shifts, or changes in technology have created either extremely severe economic hardships for the company or a condition that is severely detrimental and contrary to the public good, the Commission shall order the Department and the company to renegotiate relevant portions of a contract negotiated under this section, and any renegotiated provisions shall be subject to the Commission’s approval under the procedures of subsection (c) of this section. If at any time the General Assembly is concerned that such conditions exist, it may, by joint resolution, direct the Commission to conduct a hearing and make a determination. If the Department and the company fail to reach a negotiated agreement within four months of receipt of an order to negotiate from the Commission, the Commission shall hold a hearing to determine the appropriate content of the relevant portions of the contract. In proceedings, the public contract advocate shall represent the interests of the public and the State, and any interested party may intervene. The Commission shall complete its hearings and render its decision within four months from the date that the Department and the company failed to agree under an order to negotiate. If the Department and the company agree within 14 days following the Commission’s decision to accept the Commission’s determination of the appropriate content of the contract, the contract shall continue in effect as modified until its termination date. If the Department or the company does not accept the Commission’s determination, the contract shall terminate under the terms specified in subsection (f) of this section 30 days after the date of the Commission’s decision.
(f) Any contract under this section shall extend for no more than five years, and this section and any contract shall terminate December 31, 1997. Upon expiration or termination of a contract, the rates, terms, and conditions then in effect under the contract shall continue in effect as duly filed and approved rates and schedules under this title and shall thereafter be subject to all of the provisions of this title.
(Added 1987, No. 87, § 6, eff. June 9, 1987; amended 1991, No. 63; 1999, No. 157 (Adj. Sess.), § 9; 2003, No. 98 (Adj. Sess.), § 3; 2009, No. 33, § 59; 2023, No. 85 (Adj. Sess.), § 374, eff. July 1, 2024.)
§ 226b Incentive regulation of basic exchange telecommunications providers
(a) Upon petition of a basic exchange telecommunications service provider, upon request of the Department of Public Service, or on its own initiative, the Public Utility Commission may approve alternative forms of regulation other than the traditional methods based upon cost of service, rate base, and rate of return.
(b) As used in this section:
(1) “Alternative forms of regulation” include incentive regulation, earnings sharing, categorization of services for the purpose of pricing, price caps, price indexing formulae, ranges of authorized returns, detariffing, and reduction or suspension of regulatory requirements.
(2) “Basic exchange telecommunications service” has the same meaning as under section 226a of this title.
(c) The Commission shall approve alternative forms of regulation only if it finds, after notice and hearing, that such regulation, in its entirety:
(1) promotes the general good of the State;
(2) is consistent with the State telecommunications purposes established under section 202c of this title;
(3) is consistent with the State Telecommunications Plan adopted by the Department of Public Service under section 202d of this title, or there exists good cause to approve alternative forms of regulation notwithstanding this inconsistency;
(4) is consistent with the public’s interests relating to appropriate quality telecommunications services;
(5) is consistent with the goal of protecting or promoting universal service to residential users of telecommunications;
(6) provides reasonable incentives for the creation of a modern telecommunications infrastructure and the appropriate implementation of new cost-effective technologies;
(7) reasonably supports economic development in the affected service territory;
(8) adequately protects consumer privacy interests;
(9) supports reasonable competition;
(10) includes adequate safeguards to ensure that charges for noncompetitive services do not subsidize competitive services; and
(11) is just and reasonable and would not produce unjust discrimination between users of the public switched network in the pricing, quality, or availability of the network functions or services offered.
(d) Prior to approving, modifying, or renewing an alternative form of regulation with respect to a specific basic exchange telecommunications provider, the Commission shall establish, and may amend from time to time, standards and procedures by which the effectiveness of the alternative form of regulation can be determined.
(e) In reviewing a petition to approve alternative forms of regulation, the Commission shall follow procedures substantially similar to those contained in sections 225, 226, and 227 of this title, except that if the Commission has not acted on the petition within nine months after the Commission has ordered suspension and investigation, the petition shall be deemed granted. By rule, the Commission may prescribe the minimum contents of a filing under this section.
(f) Where a petition for alternative forms of regulation has been filed by the Department or a basic exchange telecommunications service provider, and the Commission determines that the proposal does not satisfy the requirements of this section, it may either reject the proposal or issue a proposed order approving alternative regulation with such modifications as the Commission determines necessary to satisfy the requirements of this section. Within 20 days after issuance of a proposed order under this section, any party may submit comments and may offer to provide additional evidence concerning the proposed order. After review of such comments, and after conducting any additional hearings that the Commission determines to be necessary, the Commission shall issue a final order with such modifications as the Commission determines to be necessary to satisfy the requirements of this section. If the Commission determines that evidence offered by a party reasonably should have been introduced at hearings prior to the proposed order, the Commission may exclude such evidence. The Commission shall issue its final order within 45 days after the proposed order is issued, or within 90 days after the proposed order is issued if further hearings have been held.
(g) Any final order approving or modifying alternative forms of regulation shall, by its terms, take effect not sooner than 30 days following its issuance.
(h) An order establishing an alternative form of regulation may include:
(1) exemption from or reduction of the requirements of subsection 218(a) and sections 225, 226, 227, and 229 of this title, including rate of return requirements;
(2) terms and conditions for establishing new services, withdrawing services, price changes to services, and services by contract to individual customers; and
(3) other rates, terms, and conditions that the Commission finds to be consistent with the general considerations and standards under subsections (c) and (d) of this section.
(i) While an order approving alternative forms of regulation is in effect, the Department of Public Service and the Public Utility Commission may conduct investigations into the effectiveness of the alternative forms of regulation, and whether a traditional form of regulation should be restored. Following notice and an opportunity for hearing, the Public Utility Commission may terminate an order establishing an alternative form of regulation and restore a traditional form of regulation, or it may modify the order approving alternative forms of regulation.
(j) If at any time an order establishing an alternative form of regulation has been in effect for seven years without having been renewed, the order shall be deemed of no further force or effect and the waiver of statutory requirements under this title shall expire. All tariffs then in effect shall remain in effect until further order of the Commission.
(k) A basic exchange telecommunications service provider operating under an alternative form of regulation, the Department of Public Service, or the Public Utility Commission may initiate a proceeding to renew an order approving an alternative form of regulation. The provisions of this section shall apply to a proposed renewal of an alternative form of regulation. The Commission may issue orders approving, denying, or modifying the proposed renewal. In reviewing a proposed renewal of an alternative form of regulation, the Commission may consider the basic exchange telecommunications service provider’s performance for the duration of the alternative form of regulation in effect at the time the renewal is initiated. Nothing in this section shall require the Commission to conduct cost of service, rate base, or rate of return analyses.
(l) The Commission shall have the discretionary authority to provide an expedited process under this section for a basic exchange telecommunications provider with less than 10 percent of the access lines in this State. The process shall include notice and opportunity for hearing and may include simplified procedures. Nothing in this section requires the Commission to conduct a cost of service, rate base, or rate of return analysis for such companies as a precondition to alternative regulation.
(Added 1993, No. 84, § 1; amended 1995, No. 182 (Adj. Sess.), § 3, eff. May 22, 1996; 2003, No. 98 (Adj. Sess.), § 4.)
§ 227 Suspension; refund
(a) If the Commission orders that a change shall not go into effect until final determination of the proceedings, it shall proceed to hear the matter as promptly as possible and shall make its determination within seven months from the date that it orders the investigation unless the company consents to waive the seven-month requirement. If a company files for a change in rate design among classes of ratepayers, and the company has a rate case pending before the Commission, the Commission shall make its determination on the rate design change within seven months after the rate case is decided by the Commission unless the company consents to waive the seven-month requirement. Except when the company consents to waive the seven-month requirement, if the Commission fails to make its determination within the time periods set by this subsection, the changed rate schedules filed by the company shall become effective and final.
(b) The Commission, on its own motion, may order an investigation and hearing on the justness and reasonableness of existing rates of a company, subject to supervision under this chapter. The Commission shall proceed to hear the matter as promptly as possible and shall make every effort to make its determination within seven months from the date the proceeding was instituted. If the Commission does make its determination within such seven months, then its final order shall be retroactive to the day that the proceedings were instituted and such final order shall contain a directive that the company, other than a common carrier of passengers by motor vehicle, shall repay to the persons from whom collected between the time the proceedings were instituted and the final order all sums that the Commission determines are in excess of the rates ultimately found to be just and reasonable. If the Commission does not make its determination within seven months of the institution of the proceedings, then its final order when made shall be retroactive only to a date seven months after the institution of the proceedings and the final order shall contain a directive that the company shall repay to persons from whom collected between the date seven months after the institution of the proceedings and the determination thereof all sums that the Commission determines are in excess of the rates ultimately found to be just and reasonable.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 263, § 4, eff. July 31, 1961; 1981, No. 226 (Adj. Sess.), § 5, eff. May 6, 1982; 1995, No. 182 (Adj. Sess.), § 17, eff. May 22, 1996; 2019, No. 31, § 20; 2023, No. 33, § 5, eff. July 1, 2023.)
§ 227a Pricing of competitive telecommunications services
(a) In addition to the Commission’s authority to reduce or suspend any regulatory requirements as part of a contract negotiated under section 226a of this title, the Commission may also suspend or reduce such requirements in a competitive market under this section. If, after hearing, the Commission determines that a competitive market exists for the provision of any telecommunications service offered by a company subject to its jurisdiction, the Commission may suspend or reduce any or all of the regulatory requirements otherwise applicable to the provision of such service under subsection 218(a) and sections 225, 226, and 227 of this title. In determining whether a competitive market exists, the Commission shall find:
(1) that no competitor offering such service has sufficient market power to set prices for the service, taking into consideration whether competitors to any dominant market provider offer a sufficient quantity of similar or equivalent services, whether there is reasonable ease of entry into the market for providers of these services; and any other relevant indicator of market power;
(2) that the competition in the market will afford the public at least as much protection as the applicable regulatory requirements being suspended or reduced;
(3) that adequate safeguards exist to ensure that any services provided by a competitor that continue to be regulated are not supporting or subsidizing any services offered in the competitive market, and that no company shall allocate revenues from regulated activities to unregulated activities nor allocate costs from unregulated activities to regulated activities and, upon request, shall provide the Commission and the Department with information, including cost studies indicating whether any regulated services are supporting any services which are deregulated; and
(4) that adequate safeguards exist to ensure that access to any regulated basic exchange services or any other regulated services that must be utilized to provide the competitive service is available at the same rates, terms, and conditions at which they are provided by the company to its own unregulated affiliates or charged to its own unregulated accounts.
(b) Nothing in this section shall limit the existing authority of the Commission or Department to require provision of or access to information required by this title.
(c) The Commission shall upon petition of the Department, and may upon its own initiative, investigate whether it should reimpose any regulatory requirements that it has suspended or reduced in accordance with subsection (a) of this section; and if the Commission finds that it is in the public interest to reapply any such regulatory provisions, it may do so if it determines that the standards in subsection (a) are no longer met. Pending any final order, the Commission may reimpose any regulatory requirements on a preliminary basis as it determines is just and reasonable. The Commission shall rule on any request by the Department for a preliminary order within 60 days. The Commission shall make a final decision on reimposition of regulatory requirements within seven months of the Department’s request or of the date of commencement of its own investigation. A preliminary or final order shall be after public notice and hearing.
(Added 1987, No. 87, § 7; amended 2023, No. 85 (Adj. Sess.), § 375, eff. July 1, 2024.)
§ 227b Wireless telecommunications
(a)(1) The Secretary of Administration is designated as the exclusive agent for the State of Vermont to contract for the use of State-owned buildings, structures, and land for wireless, two-way interactive telecommunications facilities. The Secretary is granted the power to contract or grant a lease or license of up to 25 years for such buildings, structures, and land for such purposes. The provisions of this section shall apply to all State-owned buildings, structures, and land, including such property owned or managed by the Department of Buildings and General Services, the Agency of Transportation, the Department of Public Safety, and the Agency of Natural Resources.
(2) The Secretary is granted all powers necessary to carry out his or her responsibilities under this section. Notwithstanding any other provision of law, the powers granted to the Secretary under this section relating to wireless telecommunications facilities shall supersede the authority granted to any other State official or agency relating to such facilities. The powers granted by this section shall not affect the Secretary’s duty, and any duty of the facility owner, to seek and obtain any applicable gubernatorial, quasi-judicial, or legislative review, approval, or permit required by law, including as necessary permits under 10 V.S.A. chapter 151 (Act 250), local planning and zoning permits, a certificate of public good under section 248a of this title, and legislative approval under 29 V.S.A. § 166 (sale or long-term lease of State lands), 10 V.S.A. § 2606 (exchange or lease of State forests and parks), or 10 V.S.A. § 2606a (State-owned mountaintop use as communications sites). A decision by the Secretary to contract or enter into or renew a lease or license for the use of a State-owned building, structure, or land for a wireless telecommunications facility shall have no presumptive or binding effect with respect to the facility’s compliance with the standards or criteria used in determining whether to grant any such required approval or permit.
(3) The Secretary shall consult with all affected State officials and agencies concerning each proposed use of State properties for wireless telecommunications facilities to determine the compatibility of the particular building, structure, or parcel of land to accommodate such facilities and to determine and give due consideration to the compatibility of the proposed use with the approved long-term management plan for the property under consideration, but the approval of such officials or agencies is not required for the Secretary to exercise his or her powers under this section. In the case of lands managed by the Agency of Natural Resources, the Secretary shall determine that the use is consistent with any management plan to which the lands are subject.
(b) The Secretary of Administration shall develop a standard contract and a standard contracting procedure for the use of State-owned buildings and land for wireless telecommunications facilities. The contract and contracting procedure shall provide for:
(1) criteria and procedures for making a wireless facility development proposal;
(2) final consideration of each completed facility development proposal within 60 days following the proposal’s submission in the manner prescribed by the Secretary;
(3) appropriate public benefits as compensation for the use of State properties, including public use of increased telecommunications capacity, direct compensation, or other public benefits;
(4) in the event that a wireless telecommunications facility is abandoned, the restoration of the site to a natural state within 12 months following abandonment. For the purpose of this subdivision, “natural state” does not require the removal of equipment and material buried more than 12 inches below natural grade if the equipment and material do not constitute hazardous material as defined under 10 V.S.A. § 6602(16), and the Secretary concludes that in the context of a particular site, removal of such equipment and material is not necessary to satisfy the purposes of this subsection. Nothing in this subdivision shall constitute authority to dispose of or bury waste or other material in contradiction of applicable law;
(5) encouragement of competition in wireless telecommunications, including requirements for open access for competing providers;
(6) encouragement of the use of advanced technology, and the collocation of facilities whenever feasible, in order that the number of wireless telecommunications facilities can be minimized or reduced;
(7) terms and conditions requiring certification by the owners of wireless telecommunications facilities on State-owned buildings, structures, or land that such facilities have been installed, operated, and maintained in accordance with applicable federal and State safety standards; and
(8) the retaining of a portion of revenues accruing from the lease of State-owned buildings, structures, or lands, as determined by the Secretary of Administration, by departments with management responsibility for such buildings, structures, or lands in order to cover operating and maintenance costs associated with two-way, interactive telecommunications facilities.
(c) By January 15, 2012, and by January 15 in the next succeeding three years, the Secretary of Administration shall report to the Chairs of the House Committee on Commerce and Economic Development and the Senate Committee on Finance concerning the Secretary’s activities under this section.
(d) In the event of a conflict between the provisions of this section and any other provision of law relating to the use of State-owned buildings, structures, and land, including the provisions of 29 V.S.A. § 165 and 19 V.S.A. § 26a, the provisions of this section shall control.
(Added 1995, No. 168 (Adj. Sess.), § 1; amended 1997, No. 150 (Adj. Sess.), § 21; 2011, No. 53, § 13, eff. May 27, 2011; 2023, No. 85 (Adj. Sess.), § 376, eff. July 1, 2024.)
§ 227c Nondominant carriers
(a) The Commission may modify, reduce, or suspend the requirements under this title as applied to nondominant providers of telecommunications service. The Commission may act by rule, or, after notice and opportunity for hearing, it may act by order. The modifications, reductions, or suspensions may apply to one or more classes of nondominant providers and may apply differently to each class. The Commission may modify, suspend, or reduce any or all of the regulatory requirements under sections 104, 105, 107-109, 225, 226, subsection 227(a), and sections 229 and 311 of this title.
(b) In determining whether a carrier or class of carriers is nondominant, the Commission shall consider whether the carriers have sufficient market power to set prices for the market.
(c) In determining whether to modify, reduce, or suspend regulatory requirements, the Commission shall consider whether competition in the market combined with the remaining requirements under this title:
(1) will be sufficient to ensure that the charges, practices, classifications, or rules related to the service are just and reasonable and are not unjustly or unreasonably discriminatory; and
(2) will afford the public at least as much protection as the applicable regulatory requirements being suspended or reduced.
(d) Upon petition of the Department, the Commission shall, and upon its own initiative the Commission may, investigate whether it should reimpose any regulatory requirements that it has modified, suspended, or reduced under this section. If the Commission finds, after notice and an opportunity for hearing, and after considering the factors identified in subsection (c) of this section, that the public is not sufficiently protected, the Commission may reimpose any regulatory provisions that the Commission deems necessary. Pending any final order, the Commission may reimpose any regulatory requirements on a temporary basis as it determines is just and reasonable.
(Added 1999, No. 67 (Adj. Sess.), § 3; amended 2023, No. 85 (Adj. Sess.), § 377, eff. July 1, 2024.)
§ 227d Small eligible telecommunications carriers
(a) A carrier that serves fewer than 10 percent of subscriber lines installed in the aggregate statewide and has been designated as an eligible telecommunications carrier in a service area where a competitive eligible telecommunications carrier has also been designated may, by providing written notice to the Public Utility Commission and to the Department of Public Service, elect to be exempted from one or more of the regulatory requirements under sections 104, 105, 108, 225, 226, 227, 229, and 230 of this title, except for purposes of E-911 services, for switched or dedicated access to the local exchange by providers of long distance telephone service or for rates for utility pole attachments. For the purposes of this subsection, “eligible telecommunications carrier” means a telecommunications carrier designated eligible pursuant to 47 U.S.C. § 214(e).
(b) For any carrier that elects exemption under subsection (a) of this section:
(1) The carrier shall provide notice of its election to its existing customers within 30 days following its election and to any new customer at the time the new customer requests service from the carrier.
(2) The carrier shall maintain rate schedules and upon request shall provide notice of any change to such rate schedules to the Commission and the Department for informational purposes only.
(A) Notice of increases of rates for services offered by the carrier on or before June 30, 2005 shall be made at least 30 days in advance to the Commission and Department.
(B) The carrier shall not withdraw any service subject to the jurisdiction of the Commission that it offered on June 30, 2005 without at least 30 days’ advance notice to customers, the Commission, and the Department.
(C) Rate schedules that are exempted from approval by the Commission under this section shall not have the effect of a tariff.
(3) The Commission shall have continuing regulatory authority over any matter under its jurisdiction for which the authority of the Commission is not specifically limited by this section.
(4) The carrier shall not condition the purchase of basic exchange telecommunications service upon the purchase or subscription to bundles of or any combination of telecommunication services other than the one access line required for the provision of such service.
(5) The carrier shall limit its prices as follows:
(A) the carrier shall not increase its price for basic exchange telecommunications service during the first year following such election; during the second and third years following the end of the year in which the carrier has made such election, the carrier shall not increase its price for basic exchange telecommunications service by more than nine percent or by $1.50, whichever is less; and during the fourth and fifth years following the end of the year in which the carrier has made such election, the carrier shall not increase its price for basic exchange telecommunications service by more than 11 percent or by $2.00, whichever is less;
(B) the carrier shall not increase its prices for local measured service during the first two years following such election;
(C) the carrier shall not increase its price for nonbasic telecommunications services by more than nine percent during the first two years following such election, provided that for the purposes of this section, nonbasic telecommunications services shall mean any optional telecommunications services other than basic exchange telecommunications services and local measured service that were included in the carrier’s intrastate tariff at the time of the election;
(D) the carrier shall not increase its intrastate switched access rates for the three years following the end of the year in which the carrier has made such election.
(6) The maximum prices established under subdivision (5) of this subsection may be exceeded only when it is necessary for the carrier to address an exogenous event. As used in this subsection, the term “exogenous event” means an event beyond the control of the carrier that is limited to:
(A) changes in tax laws that are unique to the telecommunications industry that materially increase the costs or reduce the revenues of local exchange services in excess of 10 percent in a single year, except if costs or revenue changes are less than 10 percent, then as may be approved by the Commission;
(B) changes in generally accepted accounting principles that apply specifically to telecommunications carriers or changes in the Federal Communications Commission’s Uniform System of Accounts that materially increase the costs or reduce the revenues of local exchange services in excess of 10 percent in a single year, except if costs or revenue changes are less than 10 percent, then as may be approved by the Commission;
(C) changes in the Federal Communications Commission’s rules pertaining to jurisdictional separations that materially increase the costs or reduce the revenues of local exchange services in excess of 10 percent in a single year, except if less than 10 percent, then as may be approved by the Commission;
(D) regulatory, judicial, or legislative changes affecting telecommunications carriers, including rules and orders that are necessary to implement such changes, including intercarrier compensation, universal service support, and revenue-neutral restructuring of a regulated intrastate telecommunications product or service that materially increase the costs or reduce the revenues of local exchange services in excess of 10 percent in a single year, except if costs or revenue changes are less than 10 percent, then as may be approved by the Commission; or
(E) changes in inflation, changes in the economy, or the effects of competition that produce an increase in costs or a decrease in revenues in excess of 15 percent in a single year.
(7) If the carrier responds to an exogenous event with a price increase that exceeds the maximum prices defined in subdivision (5) of this subsection, the carrier shall provide notice of such change to the Public Utility Commission and to the Department of Public Service. The Commission, upon its own motion or upon the recommendation of the Department, may initiate an investigation. If the Commission does not initiate an investigation within a 30-day period, the price increase shall take effect. If the Commission determines to initiate an investigation, it shall give notice of that decision to the carrier and to the Department and may suspend the portion of the price that exceeds the cap. The Commission shall conclude its investigation within 120 days following issuance of its notice of investigation or within such shorter period as it deems appropriate. If the Commission fails to issue a decision within that 120-day period, the price increase shall become effective upon the 121st day without retroactive rate adjustments.
(8) Regulated intrastate telecommunications products or services that were not offered under the carrier’s rate schedules effective at the time of the election for exemption under subsection (a) of this section shall constitute new products and services and, as such, shall not be subject to the caps described in subdivision (5) of this subsection. The carrier shall file rate schedules for new products and services and special contracts with the Commission and the Department of Public Service, which shall take effect upon filing. New products and services may include:
(A) services that were not technologically feasible prior to the carrier’s election;
(B) any combination of new or existing products or services;
(C) promotional offerings;
(D) bundles of services, regardless of whether such bundles are comprised of regulated or unregulated services or a combination thereof;
(E) special contracts that are offered to individuals or groups of customers and executed after the carrier elects the exemption provided under subsection (a) of this section.
(c) Upon petition by the Department, the Commission shall and upon its own initiative the Commission may investigate whether it should impose or reimpose any regulatory requirements that the carrier has elected out of pursuant to subsection (a) of this section. If the Commission finds, after notice and an opportunity for hearing and after considering the factors identified in subsection 227c(c) of this title, that the public is not sufficiently protected, the Commission may impose or reimpose any of the regulatory provisions listed in subsection (a) of this section. Pending any final order and subject to the provisions of section 12 of this title, the Commission may impose or reimpose any of the regulatory provisions listed in subsection (a) of this section on a temporary basis as it determines is just and reasonable. Upon petition of the carrier and after notice and opportunity for hearing, the Commission may modify, reduce, or suspend any regulatory requirement it has reimposed on the carrier.
(Added 2005, No. 73, § 1; amended 2007, No. 79, §§ 17a, 17b, eff. June 9, 2007; 2007, No. 95 (Adj. Sess.), § 1, eff. May 24, 2008; 2023, No. 85 (Adj. Sess.), § 378, eff. July 1, 2024.)
§ 227e Leasing or licensing of State land; public notice
(a) Beginning July 1, 2011, State land may not be leased or licensed for the purpose of construction or installation of a wireless telecommunications facility, as defined in subsection 248a(b) of this title, unless authorized by the Secretary of Administration pursuant to the requirements of this section. For purposes of this section, “State land” means land owned in fee or interests in land owned by the Agency of Natural Resources. No initial lease or license, including any renewal thereof, entered into pursuant to this section shall exceed 25 years.
(b) Prior to entering into or renewing a lease or license, the Secretary shall:
(1) publish notice of the proposed telecommunications facility site in one daily newspaper of general circulation in the region of the proposed site and on the website maintained by the Agency of Administration, with appropriate hyperlinks to that website on all relevant, State-maintained websites; and
(2) send by certified mail, return receipt requested, a written notice of the proposed lease or license or renewal to the legislative body of each municipality in which such leased or licensed land is located. The notice shall include a description of the land to be leased or licensed and of the proposed telecommunications facility to be sited on the land, including the facility’s height and location.
(Added 2011, No. 53, § 12, eff. May 27, 2011.)
§ 228 Copy of schedules
Each company, subject to the provisions of this chapter, shall keep on file in every station or office thereof where payments are made by consumers or users a copy printed in plain type of so much of its schedules as the Commission shall deem necessary. Such copy shall be in such form and place as to be readily accessible to inspection by the public.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 229 Rebates; exceptions
A public service company shall not directly or indirectly or by any special rate, rebate, drawback, or other device or method make any deviation from the rates, fares, charges, or prices for any service rendered by it or in services rendered or to be rendered in connection therewith, as specified in its schedules of charges in effect at the time such service was rendered. No public service company may enter into any contract, agreement, or arrangement relating to the furnishing or rendering of any special product or special service not provided for or covered in the schedule without the prior approval of the Commission. However, nothing in this section shall prohibit the giving by any public service company of free or reduced rate service to its employees, or in case of public emergency, or to the classes defined and provided for in the act of Congress entitled “An act to regulate commerce,” as codified in 49 U.S.C. § 10101 et seq., as amended. Subject to the approval of the Commission, it shall be lawful for any public utility to make a contract for a definite term for its product or service.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 263, § 5, eff. July 31, 1961; 2023, No. 85 (Adj. Sess.), § 379, eff. July 1, 2024.)
§ 230 Special rate or rebate; penalty
Except as provided in section 229 of this subchapter, an officer or employee of a public service company who grants a special rate or rebate or knowingly consents to one shall be subject to a civil penalty imposed by the Commission, after notice and an opportunity for hearing, of not less than $100.00 nor more than $1,000.00. In addition, a company granting a special rate or rebate shall be subject to a civil penalty imposed by the Commission, after notice and opportunity for hearing, of not more than the larger of $10,000.00 or five times the amount of the benefit or rebate.
(Amended 1961, No. 263, § 6, eff. July 31, 1961; 1995, No. 99 (Adj. Sess.), § 8; 2023, No. 85 (Adj. Sess.), § 380, eff. July 1, 2024.)
§ 231 Certificate of public good; abandonment of service; hearing
(a) A person, partnership, unincorporated association, or previously incorporated association that desires to own or operate a business over which the Public Utility Commission has jurisdiction under the provisions of this chapter shall first petition the Commission to determine whether the operation of such business will promote the general good of the State and shall at that time file a copy of any such petition with the Department. The Department, within 12 days, shall review the petition and file a recommendation regarding the petition in the same manner as is set forth in subsection 225(b) of this subchapter. The recommendation shall set forth reasons why the petition shall be accepted without hearing or shall request that a hearing on the petition be scheduled. If the Department requests a hearing on the petition, or, if the Commission deems a hearing necessary, it shall appoint a time and place in the county where the proposed corporation is to have its principal office for hearing the petition. Notice of the hearing shall be given in accordance with section 10 of this title and shall be published on the Commission’s website and once in a newspaper of general circulation in the county in which the hearing will occur. The website notice shall be maintained through the date of the hearing. The newspaper notice shall include an internet address where more information regarding the petition may be viewed. The Director for Public Advocacy shall represent the public at the hearing. If the Commission finds that the operation of the business will promote the general good of the State it shall give the person, partnership, unincorporated association, or previously incorporated association a certificate of public good specifying the business and territory to be served by such petitioners. For good cause, after opportunity for hearing, the Commission may amend or revoke any certificate awarded under the provisions of this section. If any certificate is revoked, the person, partnership, unincorporated association, or previously incorporated association shall no longer have authority to conduct any business that is subject to the jurisdiction of the Commission whether or not regulation has been reduced or suspended, under section 226a or 227a of this subchapter.
(b) A company subject to the general supervision of the Public Utility Commission under section 203 of this title may not abandon or curtail any service subject to the jurisdiction of the Commission or abandon all or any part of its facilities if it would in doing so effect the abandonment, curtailment, or impairment of the service, without first obtaining approval of the Public Utility Commission, after notice and opportunity for hearing, and upon finding by the Commission that the abandonment or curtailment is consistent with the public interest; provided, however, this section shall not apply to disconnection of service pursuant to valid tariffs or to rules adopted under subsections 209(b) and (c) of this title.
(c) An energy storage aggregator that operates an energy storage facility is subject to this section only if the aggregator is not a retail electric provider.
(d) Notwithstanding any other State law to the contrary, a municipality shall have the authority to construct, operate, set rates for, finance, and use eminent domain for a thermal energy exchange network utility without a certificate of public good or approval by the Commission. Nothing in this section shall alter the requirements of 10 V.S.A. chapter 151, including for district energy projects such as those described in subdivision 209(e)(1) of this title.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1975, No. 212 (Adj. Sess.), § 2; 1979, No. 204 (Adj. Sess.), § 34, eff. Feb. 1, 1981; 1987, No. 87, § 8; 1995, No. 99 (Adj. Sess.), § 9; 1999, No. 157 (Adj. Sess.), § 10; 2017, No. 53, § 6; 2021, No. 54, § 8; 2023, No. 85 (Adj. Sess.), § 381, eff. July 1, 2024; 2023, No. 142 (Adj. Sess.), § 5, § 16, eff. May 30, 2024.)
§ 231a Registration of billing aggregators
(a) Definitions. As used in this section, unless the context otherwise indicates:
(1) “Bill” means a direct statement of payments due and any other form of notice soliciting payment.
(2) “Billing agent” means a local exchange carrier or other person offering telecommunications service who includes in a bill it sends to a customer a charge for a product or service offered by a service provider.
(3) “Billing aggregator” means any person, other than a service provider, who forwards the charge for a product or service offered by a service provider to a billing agent.
(4) “Service provider” means any person, other than the billing agent, that offers a product or service to a customer, the charge for which appears on the bill of a billing agent.
(5) “Telecommunications carrier” means a company subject to the jurisdiction of the Public Utility Commission under subdivision 203(5) of this title.
(6) “Unauthorized service” means the provision of any service or product by a service provider that a customer has not authorized, and for which a charge appears on the customer’s telephone bill. Charges for collect calls shall be exempt from this section.
(b) Registration requirements. Except as provided in this subsection, no billing aggregator may forward charges for a service or product offered by a service provider to a billing agent for presentation to a customer, unless the billing aggregator is registered with the Public Utility Commission. A registration properly filed with the Public Utility Commission takes effect 14 days after the filing date, unless the Department of Public Service objects to the registration and provides notice of its objection to the registrant within the 14 days. If the Department of Public Service objects to the registration, the registration does not become effective, unless expressly approved by the Public Utility Commission. The Public Utility Commission shall offer a person whose registration has been rejected an opportunity for a hearing. A registration, once effective, remains effective until revoked by the Public Utility Commission or surrendered by the holder. A company that provides telecommunications service in this State pursuant to a certificate of public good or equivalent authority under this title is not required to be registered under this subsection.
(c) Revocation of registration; notice.
(1) After opportunity for hearing, the Public Utility Commission may revoke the registration of a billing aggregator who has:
(A) provided false or deceptive information in registering under this section;
(B) knowingly, negligently, or repeatedly forwarded a charge to a billing agent for a product or service that the consumer did not authorize;
(C) failed to provide a notice to customers as required by rule or order of the Public Utility Commission, or otherwise failed to comply with a rule or order of the Public Utility Commission; or
(D) engaged in any other false or deceptive practices.
(2) Immediately following a revocation of registration under this subsection, the Public Utility Commission shall provide notice of the revocation, in a form and manner established by the Public Utility Commission by rule, to all telecommunications carriers doing business in this State.
(d) Procedure upon complaint. If a customer of a telecommunications carrier claims that a charge for an unauthorized service has been included in the customer’s telephone bill, the telecommunications carrier shall immediately suspend collection efforts on that portion of the customer’s bill. The telecommunications carrier shall either cease collection efforts entirely with regard to the disputed charge or request evidence from the billing aggregator that the customer authorized the service for which payment is sought. If the telecommunications carrier ceases collection efforts or sufficient evidence of customer authorization is not presented to the telecommunications carrier within a reasonable time, the telecommunications carrier shall immediately remove any charges associated with the unauthorized service from the customer’s bill and refund to the customer any amounts paid for the unauthorized service that were billed by the telecommunications carrier during the six months prior to the customer’s complaint. If sufficient evidence of customer authorization is provided to the telecommunications carrier, the telecommunications carrier may restore the charges on the customer’s bill and reinstitute collection efforts. The customer or the billing aggregator may appeal the telecommunications carrier’s determination to the Public Utility Commission.
(e) Enforcement authority. In addition to any other authority the Public Utility Commission may have pursuant to other law, the Public Utility Commission may enforce the provisions of this section in accordance with this subsection:
(1) In an adjudicatory proceeding, the Public Utility Commission may impose an administrative penalty upon the following entities for the following violations:
(A) a billing aggregator who forwards charges to a billing agent for an unauthorized product or service;
(B) a billing aggregator who is required to be registered under subsection (b) of this section and who is not properly registered pursuant to that subsection and who forwards charges for a product or service that appear on the bill of a billing agent;
(C) a billing agent who knowingly bills on behalf of a billing aggregator who is required to be registered under subsection (b) of this section and who is not properly registered pursuant to that subsection at the time the bill that is to be sent to the customer is generated, except that a billing agent who bills on behalf of a billing aggregator whose registration has been revoked shall not be subject to administrative penalty if the bill that is to be sent to the customer was generated within 14 days of the revocation of the registration and the billing agent did not have actual notice of the revocation;
(D) a telecommunications carrier that, without having first obtained evidence of authorization that the telecommunications carrier believed in good faith to be sufficient, does not remove the charges for any service that is the subject of a complaint under subsection (d) of this section and does not refund to the customer any amounts paid for the unauthorized service that were billed by the telecommunications carrier during the six months prior to the customer’s complaint. For purposes of this section, evidence that a call was dialed from the number that is the subject of the charge shall be considered sufficient evidence of authorization for that call.
(2) The amount of any administrative penalty imposed under subdivision (1) of this subsection may not exceed $1,000.00 per violation arising out of the same incident or complaint, and must be based on:
(A) the severity of the violation, including the intent of the violator, the nature, circumstances, extent, and gravity of any prohibited acts;
(B) the history of previous violations; and
(C) the amount necessary to deter future violations.
(f) Rulemaking. The Public Utility Commission shall adopt such rules as it deems necessary to implement this section.
(Added 1999, No. 67 (Adj. Sess.), § 4.)
§ 232 Sales, leases, pledges, bonds, notes; hearings
(a) Except in connection with replacement or exchange, an individual, partnership, or unincorporated association conducting such public service business shall not make a sale or lease or series of sales or leases in any one calendar year constituting 10 percent or more of its property located within this State and actually used in or required for public service operations or mortgage or pledge any of its property or issue any bonds, notes, or other evidences of indebtedness without the consent of the Public Utility Commission, given on petition and after opportunity for hearing and a finding that the same will promote the general good of the State. Notice of such hearing shall be given as the Commission directs.
(b) Notwithstanding subsection (a) of this section, an individual, partnership, or unincorporated association may issue evidences of indebtedness payable within one year from date of issue without such consent provided such borrowing is necessary as an emergency to restore service immediately after disaster or provided its total evidences of indebtedness so payable within one year do not exceed 20 percent of its total assets. If such evidences of indebtedness in an amount that would cause its total evidences of indebtedness so payable within one year to exceed 20 percent of its total assets, then it shall give the Commission notice in writing of its intention so to do at least 10 days before the date of the proposed issue. If the Commission determines after considering the notice and the said individual, partnership, or unincorporated association’s report to the Commission that further inquiry is warranted, it shall order such individual, partnership, or unincorporated association not to issue such evidences of indebtedness under this subsection without the consent of the Commission given after opportunity for hearing; provided, however, that if the Commission does not make such an order within 10 days from the time it receives such notice under this subsection, then the individual, partnership, or unincorporated association may issue such evidences of indebtedness without the consent of the Public Utility Commission, and the Commission shall so notify such individual, partnership, or unincorporated association in writing.
(c) Nothing in this section shall restrict the right of a common carrier by motor vehicle to issue evidences of indebtedness payable within one year from the date of issue without prior notice to or consent by the Commission.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1993, No. 21, § 9, eff. May 12, 1993.)
§ 233 Repealed
[Repealed]
1995, No. 99 (Adj. Sess.), § 16(1).
§ 234 Appeal
A person, partnership, or unincorporated association aggrieved by any act or order of the Public Utility Commission may transfer such cause to the Supreme Court under the provisions of section 12 of this title.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 235 Heating and process fuel efficiency program
(a) After consultation with fuel dealers, any appointed efficiency entity, financial institutions, the Commission, representatives of the weatherization program, and other stakeholders, the Department of Public Service shall propose, develop, solicit, and monitor any combination of energy efficiency and conservation programs, measures, and compensation mechanisms to provide fuel efficiency services on a statewide basis for Vermont heating or process fuel consumers. The Department shall select one or more service providers as needed and pursuant to a competitive bidding process to implement those programs, measures, or compensation mechanisms by means of performance-based contracts that are based upon verified savings in energy usage and demand, and other performance targets. The contracts entered into during the first year after March 19, 2008 shall be for a period of time of no greater than three years. Those programs, measures, and compensation mechanisms shall include fuel efficiency services that:
(1) produce whole building and process heat efficiency, regardless of the fuel type used;
(2) facilitate appropriate fuel switching; and
(3) promote coordination, to the fullest practical extent, with the electric efficiency programs established and administered pursuant to this chapter, as well as with low-income weatherization programs and any utility energy efficiency programs.
(b) Prior to the Department of Public Service entering a contract with service providers under this section and after such notice and hearings as it may require, the Public Utility Commission shall review the programs, measures, and compensation mechanisms selected by the Department to determine whether these programs, measures, and compensation mechanisms promote the public good. The Commission may alter or impose conditions on any combination of these programs, measures, or compensation mechanisms as it deems necessary to promote the public good. If the Department thereafter changes the programs, measures, or compensation mechanisms, it shall request review under this section by the Commission prior to implementing those changes.
(c) Funding for the program established under this section shall be provided from the Fuel Efficiency Fund established under section 203a of this title. During fiscal year 2009, any contracts or grants to be made from the Fund for other than administrative purposes shall be subject to appropriation by the General Assembly. The Department shall provide the Joint Fiscal Committee, at the Committee’s November 2008 meeting, with a preliminary report on the program to be presented to the Public Utility Commission.
(d) The Department, subject to the oversight of the Commission, shall:
(1) Ensure that all retail consumers, regardless of retail electricity, gas, or heating or process fuel provider, will have an opportunity to participate in and benefit from a comprehensive set of cost-effective energy efficiency programs and initiatives designed to overcome barriers to participation.
(2) Require that continued or improved efficiencies be made in the production, delivery, and use of energy efficiency services, including the use of compensation mechanisms that are based upon verified savings in energy usage and demand, and other performance targets specified by the Commission. The linkage between compensation and verified savings in energy usage and demand (and other performance targets) shall be reviewed and adjusted not less than triennially by the Commission.
(3) Build on the energy efficiency expertise and capabilities that have developed or may develop in the State.
(4) Promote program initiatives and market strategies that address the needs of persons or businesses facing the most significant barriers to participation.
(5) Promote coordinated program delivery, including coordination with low-income weatherization programs, other efficiency programs, and utility programs.
(6) Consider innovative approaches to delivering energy efficiency, including strategies to encourage third-party financing and customer contributions to the cost of efficiency measures.
(7) Provide a reasonably stable multiyear budget and planning cycle in order to promote program improvement, program stability, enhanced access to capital and personnel, improved integration of program designs with the budgets of regulated companies providing energy services, and maturation of programs and delivery resources.
(8) Develop and approve programs, measures, and delivery mechanisms that reasonably reflect current and projected market conditions, technological options, and environmental benefits.
(9) Provide for delivery of these programs as rapidly as possible, taking into consideration the need for these services, and cost-effective delivery mechanisms.
(10) Provide for the independent evaluation of programs delivered under this section.
(11) Require that any service provider under this section deliver programs in an effective, efficient, timely, and competent manner and meet standards that are consistent with those in section 218c of this title, the Board’s orders in Public Service Board docket 5270, and any relevant Board orders in subsequent energy efficiency proceedings.
(12) Require verification, on or before January 1, 2011, and every three years thereafter, by an independent auditor of the reported energy and capacity savings and cost-effectiveness of programs delivered by any entity selected to be a service provider under this section.
(13) Ensure that any energy efficiency program implemented under this section shall be reasonable and cost-effective.
(14) Consider the impact of programs delivered under this section on the amount of fuel used, fuel prices, and fuel bills.
(15) Ensure that the energy efficiency programs implemented under this section are designed to make continuous and proportional progress toward attaining the overall State building efficiency goals established by 10 V.S.A. § 581, by promoting all forms of energy end-use efficiency and comprehensive sustainable building design.
(e) Any disputes under this section shall be resolved by the Commission.
(Added 2007, No. 92 (Adj. Sess.), § 15.)
§§ 236-245 Repealed
[Repealed]
1985, No. 224 (Adj. Sess.), § 8.
§ 246 Temporary siting of meteorological stations
(a) As used in this section, a “meteorological station” consists of one temporary tower, which may include guy wires, and attached instrumentation to collect and record wind speed, wind direction, and atmospheric conditions.
(b) The Public Utility Commission shall establish by rule or order standards and procedures governing application for, and issuance or revocation of, a certificate of public good for the temporary installation of one or more meteorological stations under the provisions of section 248 of this title. A meteorological station shall be deemed to promote the public good of the State if it is in compliance with the criteria of this section and the Commission’s rules or orders. An applicant for a certificate of public good for a meteorological station shall be exempt from the requirements of subsection 202(f) of this title.
(c) In developing rules or orders, the Commission:
(1) Shall develop a simple application form and shall require that the applicant first file the application with the Commission and that, within two business days following notification from the Commission that the application is complete, the applicant serve copies of the complete application on the Department of Public Service, the Agency of Natural Resources, the Agency of Transportation, and the municipality in which the meteorological station is proposed to be located.
(2) Shall require that if no objections are filed within 30 days following the date of service of the complete application under subdivision (1) of this subsection, and the Commission determines that the applicant has met all of the requirements of section 248 of this subchapter, the certificate of public good shall be issued for a period that the Commission finds reasonable, but in no event for more than five years. Upon request of an applicant, the Commission may renew a certificate of public good. Upon expiration of the certificate, the meteorological station and all associated structures and material shall be removed, and the site shall be restored substantially to its preconstruction condition.
(3) May waive the requirements of section 248 of this title that are not applicable to meteorological stations, including criteria that are generally applicable to public service companies as defined in this title. The Commission shall not waive review regarding whether construction will have an undue adverse effect on aesthetics, historic sites, air and water purity, the natural environment, and the public health and safety.
(4) Shall seek to simplify the application and review process, as appropriate, in conformance with this section.
(d) A proposal for decision shall be issued within five months of when the Commission receives a completed application for a certificate of public good for the temporary installation of one or more meteorological stations under the provisions of section 248 of this title.
(e) Notwithstanding any contrary provisions of this section, the holder of a certificate of public good for a constructed meteorological station may apply under section 248a of this title or 10 V.S.A. chapter 151 to convert the station to a wireless telecommunications facility, provided the application is filed at least 90 days before the expiration of the certificate for the station. Any such application shall constitute a new application to be reviewed under the facts and circumstances as they exist at the time of the review.
(Added 2007, No. 92 (Adj. Sess.), § 17; amended 2011, No. 62, § 35; 2015, No. 41, § 13, eff. June 1, 2015; 2017, No. 53, § 2; 2023, No. 85 (Adj. Sess.), § 383, eff. July 1, 2024.)
§ 247 Penalty
In addition to any civil penalty imposed under section 30 and section 230 of this title, any person, partnership, unincorporated association, company, or corporation, or the officers of any unincorporated association, company, or corporation who violates section 230 or section 248 of this title shall be fined not more than $100.00 or imprisoned not more than 60 days, or both.
(Amended 1995, No. 99 (Adj. Sess.), § 10.)
§ 248 New gas and electric purchases, investments, and facilities; certificate of public good
(a)(1) No company, as defined in section 201 of this subchapter, may:
(A) in any way purchase electric capacity or energy from outside the State:
(i) for a period exceeding five years, that represents more than three percent of its historic peak demand, unless the purchase is from a plant as defined in section 8002 of this title that produces electricity from renewable energy as defined under section 8002; or
(ii) for a period exceeding 10 years, that represents more than 10 percent of its historic peak demand, if the purchase is from a plant as defined in section 8002 of this title that produces electricity from renewable energy as defined under section 8002; or
(B) invest in an electric generation facility, energy storage facility, or transmission facility located outside this State unless the Public Utility Commission first finds that the same will promote the general good of the State and issues a certificate to that effect.
(2) Except for the replacement of existing facilities with equivalent facilities in the usual course of business and except for electric generation or energy storage facilities that are operated solely for on-site electricity consumption by the owner of those facilities and for hydroelectric generation facilities subject to licensing jurisdiction under the Federal Power Act, 16 U.S.C. chapter 12, subchapter 1:
(A) no company, as defined in section 201 of this title, and no person, as defined in 10 V.S.A. § 6001(14), may begin site preparation for or construction of an electric generation facility, energy storage facility, or electric transmission facility within the State that is designed for immediate or eventual operation at any voltage; and
(B) no such company may exercise the right of eminent domain in connection with site preparation for or construction of any such transmission facility, energy storage facility, or generation facility, unless the Public Utility Commission first finds that the same will promote the general good of the State and issues a certificate to that effect.
(3) No company, as defined in section 201 of this title, and no person, as defined in 10 V.S.A. § 6001(14), may in any way begin site preparation for or commence construction of any natural gas facility, except for the replacement of existing facilities with equivalent facilities in the usual course of business, unless the Public Utility Commission first finds that the same will promote the general good of the State and issues a certificate to that effect pursuant to this section.
(A) For the purposes of this section, the term “natural gas facility” shall mean any natural gas transmission line, storage facility, manufactured-gas facility, or other structure incident to any such line or facility. For purposes of this section, a “natural gas transmission line” shall include any feeder main or any pipeline facility constructed to deliver natural gas in Vermont directly from a natural gas pipeline facility that has been certified pursuant to the Natural Gas Act, 15 U.S.C. § 717 et seq.
(B) For the purposes of this section, the term “company” shall not include a “natural gas company” (including a “person which will be a natural gas company upon completion of any proposed construction or extension of facilities”), within the meaning of the Natural Gas Act, 15 U.S.C. § 717 et seq.; provided however, that the term “company” shall include any “natural gas company” to the extent it proposes to construct in Vermont a natural gas facility that is not solely subject to federal jurisdiction under the Natural Gas Act.
(C) The Public Utility Commission shall have the authority to, and may in its discretion, conduct a proceeding, as set forth in subsection (h) of this section, with respect to a natural gas facility proposed to be constructed in Vermont by a “natural gas company” for the purpose of developing an opinion in connection with federal certification or other federal approval proceedings.
(4)(A) With respect to a facility located in the State, in response to a request from one or more members of the public or a party, the Public Utility Commission shall hold a nonevidentiary public hearing on a petition for such finding and certificate. The public hearing shall either be remotely accessible or held in at least one county in which any portion of the construction of the facility is proposed to be located, or both. The Commission in its discretion may hold a nonevidentiary public hearing in the absence of any request from a member of the public or a party. From the comments made at a public hearing, the Commission shall derive areas of inquiry that are relevant to the findings to be made under this section and shall address each such area in its decision. Prior to making findings, if the record does not contain evidence on such an area, the Commission shall direct the parties to provide evidence on the area. This subdivision (4) does not require the Commission to respond to each individual comment.
(B) The Public Utility Commission shall hold evidentiary hearings at locations that it selects in any case conducted under this section in which contested issues remain or when any party to a case requests that an evidentiary hearing be held. In the event a case is fully resolved and no party requests a hearing, the Commission may exercise its discretion and determine that an evidentiary hearing is not necessary to protect the interests of the parties or the public, or for the Commission to reach its decision on the matter.
(C) Within two business days following notification from the Commission that the petition is complete, the petitioner shall serve copies of the complete petition on the Attorney General and the Department of Public Service and, with respect to facilities within the State, the Department of Health; Agency of Natural Resources; Historic Preservation Division; Agency of Transportation; Agency of Agriculture, Food and Markets and to the chair or director of the municipal and regional planning commissions and the municipal legislative body for each town and city in which the proposed facility will be located.
(D) Notice of the public hearing shall be published and maintained on the Commission’s website for at least 12 days before the day appointed for the hearing. Notice of the public hearing shall be published once in a newspaper of general circulation in the county or counties in which the proposed facility will be located, and the notice shall include an internet address where more information regarding the proposed facility may be viewed.
(E) The Agency of Natural Resources shall appear as a party in any proceedings held under this subsection, shall provide evidence and recommendations concerning any findings to be made under subdivision (b)(5) of this section, and may provide evidence and recommendations concerning any other matters to be determined by the Commission in such a proceeding.
(F) The following shall apply to the participation of the Agency of Agriculture, Food and Markets in proceedings held under this subsection (a):
(i) In any proceeding regarding an electric generation facility that will have a capacity greater than 500 kilowatts or an energy storage facility that will have a capacity greater than 1 megawatt and will be sited on a tract containing primary agricultural soils as defined in 10 V.S.A. § 6001, the Agency shall appear as a party and provide evidence and recommendations concerning any findings to be made under subdivision (b)(5) of this section on those soils and may provide evidence and recommendations concerning any other matters to be determined by the Commission in such a proceeding.
(ii) In a proceeding other than one described in subdivision (i) of this subdivision (4)(F), the Agency shall have the right to appear and participate.
(G) The regional planning commission for the region in which the facility is located shall have the right to appear as a party in any proceedings held under this subsection (a). The regional planning commission of an adjacent region shall have the same right if the distance of the facility’s nearest component to the boundary of that planning commission is within 500 feet or 10 times the height of the facility’s tallest component, whichever is greater.
(H) The legislative body and the planning commission for the municipality in which a facility is located shall have the right to appear as a party in any proceedings held under this subsection (a). The legislative body and planning commission of an adjacent municipality shall have the same right if the distance of the facility’s nearest component to the boundary of that adjacent municipality is within 500 feet or 10 times the height of the facility’s tallest component, whichever is greater.
(I) When a person has the right to appear as a party in a proceeding before the Commission under this chapter, the person may exercise this right by filing a letter with the Commission stating that the person appears through the person’s duly authorized representative, signed by that representative.
(J) This subdivision (J) applies to an application for an electric generation facility with a capacity that is greater than 50 kilowatts and to an application for an energy storage facility that is greater than 1 megawatt, unless the facility is located on a new or existing structure the primary purpose of which is not the generation of electricity. In addition to any other information required by the Commission, the application for such a facility shall include information that delineates:
(i) the full limits of physical disturbance due to the construction and operation of the facility and related infrastructure, including areas disturbed due to the creation or modification of access roads and utility lines and the clearing or management of vegetation;
(ii) the presence and total acreage of primary agricultural soils as defined in 10 V.S.A. § 6001 on each tract to be physically disturbed in connection with the construction and operation of the facility, the amount of those soils to be disturbed, and any other proposed impacts to those soils;
(iii) all visible infrastructure associated with the facility; and
(iv) all impacts of the facility’s construction and operation under subdivision (b)(5) of this section, including impacts due to the creation or modification of access roads and utility lines and the clearing or management of vegetation.
(5) The Commission shall adopt rules regarding standard conditions on postconstruction inspection and maintenance of aesthetic mitigation and on decommissioning to be included in certificates of public good for in-state facilities approved under this section. The purpose of these standard conditions shall be to ensure that all required aesthetic mitigation is performed and maintained and that facilities are removed once they are no longer in service.
(6) In any certificate of public good issued under this section for an in-state plant as defined in section 8002 of this title that generates electricity from wind, the Commission shall require the plant to install radar-controlled obstruction lights on all wind turbines for which the Federal Aviation Administration (FAA) requires obstruction lights, if the plant includes four or more wind turbines and the FAA allows the use of radar-controlled lighting technology.
(A) Nothing in this subdivision (6) shall allow the Commission to approve obstruction lights that do not meet FAA standards.
(B) The purpose of this subdivision (6) is to reduce the visual impact of wind turbine obstruction lights on the environment and nearby properties. The General Assembly finds that wind turbine obstruction lights that remain illuminated through the night create light pollution. Radar-controlled obstruction lights are only illuminated when aircraft are detected in the area, and therefore the use of these lights will reduce the negative environmental impacts of obstruction lights.
(7) When a certificate of public good under this section or amendment to such a certificate is issued for an in-state electric generation or energy storage facility with a capacity that is greater than 25 kilowatts, the certificate holder within 45 days shall record a notice of the certificate or amended certificate, on a form prescribed by the Commission, in the land records of each municipality in which a facility subject to the certificate is located. The recording under this subsection shall be indexed as though the certificate holder were the grantor of a deed. The prescribed form shall not exceed one page and shall require identification of the land on which the facility is to be located by reference to the conveyance to the current landowner, the number of the certificate, and the name of each person to which the certificate was issued and shall include information on how to contact the Commission to view the certificate and supporting documents.
(b) Before the Public Utility Commission issues a certificate of public good as required under subsection (a) of this section, it shall find that the purchase, investment, or construction:
(1) With respect to an in-state facility, will not unduly interfere with the orderly development of the region with due consideration having been given to the recommendations of the municipal and regional planning commissions, the recommendations of the municipal legislative bodies, and the land conservation measures contained in the plan of any affected municipality. However:
(A) With respect to a natural gas transmission line subject to Commission review, the line shall be in conformance with any applicable provisions concerning such lines contained in the duly adopted regional plan; and, in addition, upon application of any party, the Commission shall condition any certificate of public good for a natural gas transmission line issued under this section so as to prohibit service connections that would not be in conformance with the adopted municipal plan in any municipality in which the line is located.
(B) With respect to a ground-mounted solar electric generation facility, the facility shall comply with the screening requirements of a municipal bylaw adopted under 24 V.S.A. § 4414(15) or a municipal ordinance adopted under 24 V.S.A. § 2291(28), and the recommendation of a municipality applying such a bylaw or ordinance, unless the Commission finds that requiring such compliance would prohibit or have the effect of prohibiting the installation of such a facility or have the effect of interfering with the facility’s intended functional use.
(C) With respect to an in-state electric generation facility, the Commission shall give substantial deference to the land conservation measures and specific policies contained in a duly adopted regional and municipal plan that has received an affirmative determination of energy compliance under 24 V.S.A. § 4352. In this subdivision (C), “substantial deference” means that a land conservation measure or specific policy shall be applied in accordance with its terms unless there is a clear and convincing demonstration that other factors affecting the general good of the State outweigh the application of the measure or policy. The term shall not include consideration of whether the determination of energy compliance should or should not have been affirmative under 24 V.S.A. § 4352.
(2) Is required to meet the need for present and future demand for service that could not otherwise be provided in a more cost-effective manner through energy conservation programs and measures and energy-efficiency and load management measures, including those developed pursuant to the provisions of subsection 209(d), section 218c, and subsection 218(b) of this title. In determining whether this criterion is met, the Commission shall assess the environmental and economic costs of the purchase, investment, or construction in the manner set out under subdivision 218c(a)(1) (least cost integrated plan) of this title and, as to a generation facility, shall consider whether the facility will avoid, reduce, or defer transmission or distribution system investments.
(3) Will not adversely affect system stability and reliability.
(4) Will result in an economic benefit to the State and its residents.
(5) With respect to an in-state facility, will not have an undue adverse effect on aesthetics, historic sites, air and water purity, the natural environment, the use of natural resources, and the public health and safety, with due consideration having been given to the criteria specified in 10 V.S.A. §§ 1424a(d) and 6086(a)(1) through (8) and (9)(K), impacts to primary agricultural soils as defined in 10 V.S.A. § 6001, and greenhouse gas impacts.
(6) With respect to purchases, investments, or construction by a company, is consistent with the principles for resource selection expressed in that company’s approved least-cost integrated plan.
(7) Except as to a natural gas facility that is not part of or incidental to an electric generating facility, is in compliance with the electric energy plan approved by the Department under section 202 of this title, or that there exists good cause to permit the proposed action.
(8) Does not involve a facility affecting or located on any segment of the waters of the State that has been designated as outstanding resource waters by the Secretary of Natural Resources, except that with respect to a natural gas or electric transmission facility, the facility does not have an undue adverse effect on those outstanding resource waters.
(9) With respect to a waste to energy facility:
(A) is included in a solid waste management plan adopted pursuant to 24 V.S.A. § 2202a, which is consistent with the State Solid Waste Management Plan; and
(B) is included in a solid waste management plan adopted pursuant to 24 V.S.A. § 2202a for the municipality and solid waste district from which 1,000 tons or more per year of the waste is to originate, if that municipality or district owns an operating facility that already beneficially uses a portion of the waste.
(10) Except as to a natural gas facility that is not part of or incidental to an electric generating facility, can be served economically by existing or planned transmission facilities without undue adverse effect on Vermont utilities or customers.
(11) With respect to an in-state generation facility that produces electric energy using woody biomass, will:
(A) comply with the applicable air pollution control requirements under the federal Clean Air Act, 42 U.S.C. § 7401 et seq.;
(B) achieve the highest design system efficiency that is commercially available, feasible, and cost-effective for the type and design of the proposed facility; and
(C) comply with harvesting procedures and procurement standards that ensure long-term forest health and sustainability. These procedures and standards at a minimum shall be consistent with the guidelines and standards developed pursuant to 10 V.S.A. § 2750 (harvesting guidelines and procurement standards) when adopted under that statute.
(c)(1) Except as otherwise provided in subdivision (j)(3) of this section, in the case of a municipal plant or department formed under local charter or chapter 79 of this title or a cooperative formed under chapter 81 of this title, any proposed investment, construction, or contract subject to this section shall be approved by a majority of the voters of a municipality or the members of a cooperative voting upon the question at a duly warned annual or special meeting to be held for that purpose. However, in the case of a cooperative formed under chapter 81 of this title, an investment in or construction of an in-state electric transmission facility shall not be subject to the requirements of this subsection if the investment or construction is solely for reliability purposes and does not include new construction or upgrades to serve a new generation facility.
(2) The municipal department or cooperative shall provide to the voters or members, as the case may be, written assessment of the risks and benefits of the proposed investment, construction, or contract that were identified by the Public Utility Commission in the certificate issued under this section. The municipal department or cooperative also may provide to the voters an assessment of any other risks and benefits.
(d) Nothing in this section shall be construed to prohibit a company from executing a letter of intent or entering into a contract before the issuance of a certificate of public good under this section, provided that the company’s obligations under that letter of intent or contract are made subject to compliance with the requirements of this section.
(e)(1) Before a certificate of public good is issued for the construction of a nuclear energy generating plant within the State, the Public Utility Commission shall obtain the approval of the General Assembly and the Assembly’s determination that the construction of the proposed facility will promote the general welfare. The Public Utility Commission shall advise the General Assembly of any petition submitted under this section for the construction of a nuclear energy generating plant within this State, by written notice delivered to the Speaker of the House of Representatives and to the President of the Senate. The Department of Public Service shall submit recommendations relating to the proposed plant and shall make available to the General Assembly all relevant material. The requirements of this subsection shall be in addition to the findings set forth in subsection (b) of this section.
(2) No nuclear energy generating plant within this State may be operated beyond the date permitted in any certificate of public good granted pursuant to this title, including any certificate in force as of January 1, 2006, unless the General Assembly approves and determines that the operation will promote the general welfare, and until the Public Utility Commission issues a certificate of public good under this section. If the General Assembly has not acted under this subsection by July 1, 2008, the Commission may commence proceedings under this section and under 10 V.S.A. chapter 157, relating to the storage of radioactive material, but may not issue a final order or certificate of public good until the General Assembly determines that operation will promote the general welfare and grants approval for that operation.
(f) However, plans for the construction of such a facility within the State must be submitted by the petitioner to the municipal and regional planning commissions no less than 45 days prior to application for a certificate of public good under this section, unless the municipal and regional planning commissions shall waive such requirement.
(1) The municipal or regional planning commission may take one or more of the following actions:
(A) Hold a public hearing on the proposed plans. The planning commission may request that the petitioner or the Department of Public Service, or both, attend the hearing. The petitioner and the Department each shall have an obligation to comply with such a request. The Department shall consider the comments made and information obtained at the hearing in making recommendations to the Commission on the application and in determining whether to retain additional personnel under subdivision (1)(B) of this subsection.
(B) Request that the Department of Public Service exercise its authority under section 20 of this title to retain experts and other personnel to review the proposed facility. The Department may commence retention of these personnel once the petitioner has submitted proposed plans under this subsection (f). The Department may allocate the expenses incurred in retaining these personnel to the petitioner in accordance with section 21 of this title. Granting a request by a planning commission pursuant to this subdivision shall not oblige the Department or the personnel it retains to agree with the position of the commission.
(C) Make recommendations to the petitioner within 40 days following the petitioner’s submittal to the planning commission under this subsection (f).
(D) Once the petition is filed with the Public Utility Commission, make recommendations to the Commission by the deadline for submitting comments or testimony set forth in the applicable provision of this section, Commission rule, or scheduling order issued by the Commission.
(2) The petitioner’s application shall address the substantive written comments related to the criteria of subsection (b) of this section received by the petitioner within 45 days following the submittal made under this subsection and the substantive oral comments related to those criteria made at a public hearing under subdivision (1) of this subsection.
(g) Notwithstanding the 45 days’ notice required by subsection (f) of this section, plans involving the relocation of an existing transmission line within the State must be submitted to the municipal and regional planning commissions no less than 21 days prior to application for a certificate of public good under this section.
(h) The position of the State of Vermont in federal certification or other approval proceedings for natural gas facilities shall be developed in accordance with this subsection.
(1) A natural gas facility requiring federal approval shall apply to the Public Utility Commission for an opinion under this section (on or before the date on which the facility applies for such federal approval in the case of a facility that has not applied for federal approval before January 16, 1988). Any opinion issued under this subsection shall be developed based upon the criteria established in subsection (b) of this section.
(2) If the Commission conducts proceedings under this subsection, the Department shall give due consideration to the Commission’s opinion as to facilities of a natural gas company, and that opinion shall guide the position taken before federal agencies by the State of Vermont, acting through the Department of Public Service under section 215 of this title.
(3) If the Commission conducts proceedings under this subsection, it may consolidate them, solely for purposes of creating a common record, with any related proceedings conducted under subdivision (a)(3) of this section.
(i)(1) No company, as defined in sections 201 and 203 of this chapter, without approval by the Commission, after giving notice of such investment or filing a copy of that contract with the Commission and the Department at least 30 days prior to the proposed effective date of that contract or investment:
(A) may invest in a gas-production facility located outside this State; or
(B) may execute a contract for the purchase of gas from outside the State, for resale to firm-tariff customers, that:
(i) is for a period exceeding five years; or
(ii) represents more than 10 percent of that company’s peak demand for resale to firm-tariff customers.
(2) The Department and the Commission shall consider within 30 days whether to investigate the proposed investment or contract.
(3) The Commission, upon its own motion or upon the recommendation of the Department, may determine to initiate an investigation. If the Commission does not initiate an investigation within such 30-day period, the contract or investment shall be deemed to be approved. If the Commission determines to initiate an investigation, it shall give notice of that decision to the company proposing the investment or contract, the Department, and such other persons as the Commission determines are appropriate. The Commission shall conclude its investigation within 120 days following issuance of its notice of investigation, or within such shorter period as it deems appropriate, unless the company consents to waive the 120-day requirement. Except when the company consents to waive the 120-day requirement, if the Commission fails to issue a decision within that 120-day period, the contract or investment shall be deemed to be approved. The Commission may hold informal, public, or evidentiary hearings on the proposed investment or contract.
(4) Nothing in this subsection shall prohibit a company from negotiating or adjusting periodically the price of other terms of supply through a supplement to such a contract, provided that the supplement falls within the terms specified in such a contract, as approved. The Commission’s authority to investigate such adjustments under other authorities of this title shall not be impaired. Such a company shall file with the Department and the Commission a copy of any such supplement to the contract or other documentation that states any terms that have been renegotiated or adjusted by the company at least 30 days prior to the effective date of the renegotiated or adjusted price or other terms.
(5) Nothing in this subsection shall be construed to prohibit a gas company from executing a development contract, a contract for design and engineering, a contract to seek regulatory approvals for a gas-production facility, or a letter of intent for such purchase of gas that makes the company’s obligations under that letter of intent subject to the requirements of this subsection, prior to the filing with the Commission and Department of such notice or proposed contract or pending any investigation under this subsection.
(j)(1) The Commission may, subject to such conditions as it may otherwise lawfully impose, issue a certificate of public good in accordance with the provisions of this subsection and without the notice and hearings otherwise required by this chapter if the Commission finds that:
(A) approval is sought for construction of facilities described in subdivision (a)(2) or (3) of this section;
(B) such facilities will be of limited size and scope;
(C) the petition does not raise a significant issue with respect to the substantive criteria of this section; and
(D) the public interest is satisfied by the procedures authorized by this subsection.
(2) Any party seeking to proceed under the procedures authorized by this subsection shall file a proposed certificate of public good and proposed findings of fact with its petition. Within two business days following notification by the Commission that the filing is complete, the party shall serve copies of the complete filing on the parties specified in subdivision (a)(4)(C) of this section and the party shall give written notice of the proposed certificate and of the Commission’s determination that the filing is complete to those parties, to any public interest organization that has in writing requested notice of applications to proceed under this subsection, and to any other person found by the Commission to have a substantial interest in the matter. The notice shall request comment within 30 days following the date of service of the complete filing on the question of whether the petition raises a significant issue with respect to the substantive criteria of this section. If the Commission finds that the petition raises a significant issue with respect to the substantive criteria of this section, the Commission shall hear evidence on any such issue.
(3) The construction of facilities authorized by a certificate issued under this subsection shall not require the approval of voters of a municipality or the members of a cooperative, as would otherwise be required under subsection (c) of this section.
(k)(1) Notwithstanding any other provisions of this section, the Commission may waive, for a specified and limited time, the prohibitions contained in this section upon site preparation for or construction of an electric transmission facility, a generation facility, or an energy storage facility as necessary to ensure the stability or reliability of the electric system or a natural gas facility, pending full review under this section.
(2) A person seeking a waiver under this subsection shall file a petition with the Commission and shall provide copies to the Department of Public Service and the Agency of Natural Resources. Upon receiving the petition, the Commission shall conduct an expedited preliminary hearing, upon such notice to the governmental bodies listed in subdivision (a)(4)(C) of this section as the Commission may require.
(3) An order granting a waiver may include terms, conditions, and safeguards, including the posting of a bond or other security, as the Commission deems proper, considering the scope and duration of the requested waiver.
(4) A waiver shall be granted only upon a showing that:
(A) good cause exists because an emergency situation has occurred;
(B) the waiver is necessary to provide adequate and efficient service or to preserve the property of the public service company devoted to public use;
(C) measures will be taken, as the Commission deems appropriate, to minimize significant adverse impacts under the criteria specified in subdivisions (b)(5) and (8) of this section; and
(D) taking into account any terms, conditions, and safeguards that the Commission may require, the waiver will promote the general good of the State.
(5) Upon the expiration of a waiver, if a certificate of public good has not been issued under this section, the Commission shall require the removal, relocation, or alteration of the facilities subject to the waiver, as it finds will best promote the general good of the State.
(l) Notwithstanding other provisions of this section, and without limiting any existing authority of the Governor, and pursuant to 20 V.S.A. § 9(10) and (11), when the Governor has proclaimed a state of emergency pursuant to 20 V.S.A. § 9, the Governor, in consultation with the Chair of the Public Utility Commission and the Commissioner of Public Service or their designees, may waive the prohibitions contained in this section upon site preparation for or construction of an electric transmission facility, a generation facility, or an energy storage facility as necessary to ensure the stability or reliability of the electric system or a natural gas facility. Waivers issued under this subsection shall be subject to such conditions as are required by the Governor and shall be valid for the duration of the declared emergency plus 180 days or such lesser overall term as determined by the Governor. Upon the expiration of a waiver under this subsection, if a certificate of public good has not been issued under this section, the Commission shall require the removal, relocation, or alteration of the facilities, subject to the waiver, as the Commission finds will best promote the general good of the State.
(m) In any matter with respect to which the Commission considers the operation of a nuclear energy generating plant beyond the date permitted in any certificate of public good granted under this title, including any certificate in effect as of January 1, 2006, the Commission shall evaluate the application under current assumptions and analyses and not an extension of the cost benefit assumptions and analyses forming the basis of the previous certificate of public good for the operation of the facility.
(n)(1) No company as defined in section 201 of this chapter and no person as defined in 10 V.S.A. § 6001(14) may place or allow the placement of wireless communications facilities on an electric transmission or generation facility located in this State, including a net metering system, without receiving a certificate of public good from the Public Utility Commission pursuant to this subsection. The Public Utility Commission may issue a certificate of public good for the placement of wireless communications facilities on electric transmission and generation facilities if such placement is in compliance with the criteria of this section and Commission rules or orders implementing this section. In developing such rules and orders, the Commission:
(A) may waive the requirements of this section that are not applicable to wireless telecommunication facilities, including criteria that are generally applicable to public service companies as defined in this title;
(B) may modify notice and hearing requirements of this title as it deems appropriate;
(C) shall seek to simplify the application and review process as appropriate; and
(D) shall be aimed at furthering the State’s interest in ubiquitous mobile telecommunications and broadband service in the State.
(2) Notwithstanding subdivision (1)(B) of this subsection, if the Commission finds that a petition filed pursuant to this subsection does not raise a significant issue with respect to the criteria enumerated in subdivisions (b)(1), (3), (4), (5), and (8) of this section, the Commission shall issue a certificate of public good without a hearing. If the Commission fails to issue a final decision or identify a significant issue with regard to a completed petition made under this section within 60 days following its filing with the Clerk of the Commission and service to the Director of Public Advocacy for the Department of Public Service, the petition is deemed approved by operation of law. The rules required by this subsection shall be adopted within six months of June 9, 2007 and rules under this section may be adopted on an emergency basis to comply with the dates required by this section. As used in this subsection, “wireless communication facilities” include antennae, related equipment, and equipment shelter but do not include equipment used by utilities exclusively for intra- and inter-utility communications.
(o) The Commission shall not reject as incomplete a petition under this section for a wind generation facility on the grounds that the petition does not specify the exact make or dimensions of the turbines and rotors to be installed at the facility as long as the petition provides the maximum horizontal and vertical dimensions of those turbines and rotors and the maximum decibel level that the turbines and rotors will produce as measured at the nearest residential structure over a 12-hour period commencing at 7:00 p.m.
(p) An in-state generation facility receiving a certificate under this section that produces electric energy using woody biomass shall annually disclose to the Commission the amount, type, and source of wood acquired to generate energy.
(q)(1) A certificate under this section shall be required for a plant using methane derived from an agricultural operation as follows:
(A) With respect to a plant that constitutes farming pursuant to 10 V.S.A. § 6001(22)(F), only for the equipment used to generate electricity from biogas, the equipment used to refine biogas into natural gas, the structures housing such equipment used to generate electricity or refine biogas, and the interconnection to electric and natural gas distribution and transmission systems. The certificate shall not be required for the methane digester, the digester influents and non-gas effluents, the buildings and equipment used to handle such influents and non-gas effluents, or the on-farm use of heat and exhaust produced by the generation of electricity, and these components shall not be subject to jurisdiction under this section.
(B) With respect to a plant that does not constitute farming pursuant to 10 V.S.A. § 6001(22)(F) but that receives feedstock from off-site farms, for all on-site components of the plant, for the transportation of feedstock to the plant from off-site contributing farms, and the transportation of effluent or digestate back to those farms. The certificate shall not regulate any farming activities conducted on the contributing farms that provide feedstock to a plant or use of effluent or digestate returned to the contributing farms from the plant.
(2) Notwithstanding 1 V.S.A. § 214 and Commission Rule 5.408, if the Commission issued a certificate to a plant using methane derived from an agricultural operation prior to July 1, 2013, such certificate shall require an amendment only when there is a substantial change, pursuant to Commission Rule 5.408, to the equipment used to generate electricity from biogas, the equipment used to refine biogas into natural gas, the structures housing such equipment used to generate electricity or refine biogas, or the interconnection to electric and natural gas distribution and transmission systems. The Commission’s jurisdiction in any future proceedings concerning such a certificate shall be limited pursuant to subdivision (1) of this subsection.
(3) This subsection shall not affect the determination, under section 8005a of this title, of the price for a standard offer to a plant using methane derived from an agricultural operation.
(4) As used in this section, “biogas” means a gas resulting from the action of microorganisms on organic material such as manure or food processing waste.
(r) The Commission may provide that, in any proceeding under subdivision (a)(2)(A) of this section for the construction of a renewable energy plant, a demonstration of compliance with subdivision (b)(2) of this section, relating to establishing need for the plant, shall not be required if all or part of the electricity to be generated by the plant is under contract to one or more Vermont electric distribution companies and if no part of the plant is financed directly or indirectly through investments, other than power contracts, backed by Vermont electricity ratepayers. In this subsection, “plant” and “renewable energy” shall be as defined in section 8002 of this title.
(s) This subsection sets minimum setback requirements that shall apply to in-state ground-mounted solar electric generation facilities approved under this section, unless the facility is installed on a canopy constructed on an area primarily used for parking vehicles that is in existence or permitted on the date the application for the facility is filed.
(1) The minimum setbacks shall be:
(A) From a State or municipal highway, measured from the edge of the traveled way:
(i) 100 feet for a facility with a plant capacity exceeding 150 kW;
(ii) 40 feet for a facility with a plant capacity less than or equal to 150 kW but greater than 25 kW; and
(iii) 10 feet for a facility with a plant capacity less than or equal to 25 kW.
(B) From each property boundary that is not a State or municipal highway:
(i) 50 feet for a facility with a plant capacity exceeding 150 kW;
(ii) 25 feet for a facility with a plant capacity less than or equal to 150 kW but greater than 25 kW; and
(iii) 10 feet for a facility with a plant capacity less than or equal to 25 kW.
(2) [Repealed.]
(3) On review of an application, the Commission may:
(A) require a larger setback than this subsection requires;
(B) approve an agreement to a smaller setback among the applicant, the municipal legislative body, and each owner of property adjoining the smaller setback; or
(C) require a setback for a facility constructed on an area primarily used for parking vehicles, if the application concerns such a facility.
(4) In this subsection:
(A) “kW” and “plant capacity” have the same meaning as in section 8002 of this title.
(B) “Setback” means the shortest distance between the nearest portion of a solar panel or support structure for a solar panel, at its point of attachment to the ground, and a property boundary or the edge of a highway’s traveled way.
(t) Notwithstanding any contrary provision of the law, primary agricultural soils as defined in 10 V.S.A. § 6001 located on the site of a solar electric generation facility approved under this section shall remain classified as such soils, and the review of any change in use of the site subsequent to the construction of the facility shall treat the soils as if the facility had never been constructed. Each certificate of public good issued by the Commission for a ground-mounted solar generation facility shall state the contents of this subsection.
(u) A certificate under this section shall only be required for an energy storage facility that has a capacity of 100 kW or greater, unless the Commission establishes a larger threshold by rule. The Commission shall establish a simplified application process for energy storage facilities subject to this section with a capacity of up to 1 MW, unless it establishes a larger threshold by rule. For facilities eligible for this simplified application process, a certificate of public good will be issued by the Commission by the 46th day following filing of a complete application, unless a substantive objection is timely filed with the Commission or the Commission itself raises an issue. The Commission may require facilities eligible for the simplified application process to include a letter from the interconnecting utility indicating the absence or resolution of interconnection issues as part of the application.
(Added 1969, No. 69, § 1, eff. April 18, 1969; amended 1969, No. 207 (Adj. Sess.), § 12, eff. March 24, 1970; 1971, No. 208 (Adj. Sess.), eff. March 31, 1972; 1975, No. 23; 1977, No. 11, §§ 1, 2; 1979, No. 204 (Adj. Sess.), § 31, eff. Feb. 1, 1981; 1981, No. 111 (Adj. Sess.); 1983, No. 45; 1985, No. 48, § 1; 1987, No. 65, § 1, eff. May 28, 1987; 1987, No. 67, § 14; 1987, No. 273 (Adj. Sess.) § 1, eff. June 21, 1988; 1989, No. 256 (Adj. Sess.), § 10(a), eff. Jan. 1, 1991; 1991, No. 99, §§ 3, 4; 1991, No. 259 (Adj. Sess.), §§ 6, 7; 1993, No. 21, § 10, eff. May 12, 1993; 1993, No. 159 (Adj. Sess.), § 1a, eff. May 19, 1994; 2003, No. 42, § 2, eff. May 27, 2003; 2003, No. 82 (Adj. Sess.), §§ 2, 3; 2005, No. 160 (Adj. Sess.), §§ 2, 3; 2007, No. 79, § 16, eff. June 9, 2007; 2009, No. 6, §§ 1, 2, 3, eff. April 30, 2009; 2009, No. 45, § 7, eff. May 27, 2009; 2009, No. 146 (Adj. Sess.), § F30; 2011, No. 47, § 5; 2011, No. 62, § 26; 2011, No. 138 (Adj. Sess.), § 27, eff. May 14, 2012; 2011, No. 170 (Adj. Sess.), § 12, eff. May 18, 2012; 2013, No. 24, § 4, eff. May 13, 2013; 2013, No. 88, § 1; 2015, No. 23, § 151; 2015, No. 40, § 31; 2015, No. 51, § F.9, eff. June 3, 2015; 2015, No. 56, §§ 19, 20; 2015, No. 56, §§ 26a, 26b, 26c, eff. June 11, 2015; 2015, No. 174 (Adj. Sess.), § 11, eff. June 13, 2016; 2017, No. 53, §§ 1, 3, 4; 2017, No. 74, § 125; 2017, No. 163 (Adj. Sess.), § 1; 2019, No. 31, §§ 17, 25; 2021, No. 42, § 6; 2021, No. 54, § 9, eff. Dec. 31, 2022; 2023, No. 33, § 1, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 384, eff. July 1, 2024; 2023, No. 142 (Adj. Sess.), § 6, eff. May 30, 2024; 2025, No. 38, §§ 3, 4, eff. July 1, 2025.)
§ 248a Certificate of public good for communications facilities
(a) Certificate. Notwithstanding any other provision of law, if the applicant seeks approval for the construction or installation of telecommunications facilities that are to be interconnected with other telecommunications facilities proposed or already in existence, the applicant may obtain a certificate of public good issued by the Public Utility Commission under this section, which the Commission may grant if it finds that the facilities will promote the general good of the State consistent with subsection 202c(b) of this title. A single application may seek approval of one or more telecommunications facilities. An application under this section shall include a copy of each other State and local permit, certificate, or approval that has been issued for the facility under a statute, ordinance, or bylaw pertaining to the environment or land use.
(b) Definitions. As used in this section:
(1) “Ancillary improvements” means telecommunications equipment and site improvements that are primarily intended to serve a telecommunications facility, including wires or cables and associated poles to connect the facility to an electric or communications grid; fencing; equipment cabinets or shelters; emergency backup generators; and access roads.
(2) “De minimis modification” means the addition, modification, or replacement of telecommunications equipment, antennas, or ancillary improvements on a telecommunications facility or existing support structure, whether or not the structure was constructed as a telecommunications facility, or the reconstruction of such a facility or support structure, provided:
(A) the height and width of the facility or support structure, excluding equipment, antennas, or ancillary improvements, are not increased;
(B) the total amount of impervious surface, including access roads, surrounding the facility or support structure is not increased by more than 300 square feet;
(C) the addition, modification, or replacement of an antenna or any other equipment on a facility or support structure does not extend vertically more than 10 feet above the facility or support structure and does not extend horizontally more than 10 feet from the facility or support structure; and
(D) the additional equipment, antennas, or ancillary improvements on the support structure, excluding cabling, does not increase the aggregate surface area of the faces of the equipment, antennas, or ancillary improvements on the support structure by more than 75 square feet.
(3) “Good cause” means a showing of evidence that the substantial deference required under subdivision (c)(2) of this section would create a substantial shortcoming detrimental to the public good or the State’s interests in section 202c of this title.
(4)(A) “Limited size and scope” means:
(i) a new telecommunications facility, including any ancillary improvements, that does not exceed 140 feet in height; or
(ii) an addition, modification, replacement, or removal of telecommunications equipment at a lawfully constructed telecommunications facility or on an existing support structure, and ancillary improvements, that would result in a facility of a total height of less than 200 feet and does not increase the width of the existing support structure by more than 20 feet.
(B) For construction described in subdivision (3)(A) of this subsection (b) to be of limited size and scope, it shall not disturb more than 10,000 square feet of earth. As used in this subdivision (B), “disturbed earth” means the exposure of soil to the erosive effects of wind, rain, or runoff.
(5) “Substantial deference” means that the plans and recommendations referenced under subdivision (c)(2) of this section are presumed correct, valid, and reasonable.
(6) “Telecommunications facility” means a communications facility that transmits and receives signals to and from a local, State, national, or international network used primarily for two-way communications for commercial, industrial, municipal, county, or State purposes and any associated support structure that is proposed for construction or installation that is primarily for communications purposes and any ancillary improvements that are proposed for construction or installation and are primarily intended to serve the communications facilities or support structure. An applicant may seek approval of construction or installation of a telecommunications facility whether or not the telecommunications facility is attached to an existing structure.
(7) “Wireless service” means any commercial mobile radio service, wireless service, common carrier wireless exchange service, cellular service, personal communications service (PCS), specialized mobile radio service, paging service, wireless data service, or public or private radio dispatch service.
(c) Findings. Before the Public Utility Commission issues a certificate of public good under this section, it shall find that:
(1) The proposed facility will not have an undue adverse effect on aesthetics, historic sites, air and water purity, the natural environment, and the public health and safety, and the public’s use and enjoyment of the I-89 and I-91 scenic corridors or of any highway that has been designated as a scenic road pursuant to 19 V.S.A. § 2501 or a scenic byway pursuant to 23 U.S.C. § 162, with due consideration having been given to the relevant criteria specified in 10 V.S.A. §§ 1424a(d) and 6086(a)(1) through (8) and (9)(K). However, with respect to telecommunications facilities of limited size and scope, the Commission shall waive all criteria of this subdivision other than 10 V.S.A. § 6086(a)(1)(D) (floodways) and (a)(8) (aesthetics, scenic beauty, historic sites, rare and irreplaceable natural areas; endangered species; necessary wildlife habitat). Such waiver shall be on condition that:
(A) the Commission may determine, pursuant to the procedures described in subdivision (j)(2)(A) of this section, that a petition raises a significant issue with respect to any criterion of this subdivision; and
(B) a telecommunications facility of limited size and scope shall comply, at a minimum, with the requirements of the Low Risk Site Handbook for Erosion Prevention and Sediment Control issued by the Department of Environmental Conservation, regardless of any provisions in that handbook that limit its applicability.
(2) Unless there is good cause to find otherwise, substantial deference has been given to the plans of the affected municipalities; to the recommendations of the municipal legislative bodies and the municipal planning commissions regarding the municipal plans; and to the recommendations of the regional planning commission concerning the regional plan. Nothing in this section or other provision of law shall prevent a municipal body from basing its recommendations to which substantial deference is required under this subdivision (2) on an ordinance adopted under 24 V.S.A. § 2291(19) or bylaw adopted under 24 V.S.A. chapter 117 by the municipality in which the facility is located. A rebuttable presumption respecting compliance with the applicable plan shall be created by a letter from an affected municipal legislative body or municipal planning commission concerning compliance with the municipal plan and by a letter from a regional planning commission concerning compliance with the regional plan.
(3) If the proposed facility relates to the provision of wireless service, the proposed facility reasonably cannot be colocated on or at an existing telecommunications facility, or such colocation would cause an undue adverse effect on aesthetics.
(A) If a proposed new support structure for a new telecommunications facility that provides wireless service will exceed 50 feet in height in a cleared area or will exceed 20 feet in height above the average treeline measured within a 100-foot radius from the structure in a wooded area, the application shall identify all existing telecommunications facilities within the area to be served by the proposed structure and, for each such existing facility, shall include a projection of the coverage and an estimate of additional capacity that would be provided if the applicant’s proposed telecommunications equipment were located on or at the existing facility. The applicant also shall compare each such projection and estimate to the coverage and capacity that would be provided at the site of the proposed structure.
(B) To obtain a finding that a proposed facility cannot reasonably be colocated on or at an existing telecommunications facility, the applicant must demonstrate that:
(i) colocating on or at an existing facility will result in a significant reduction of the area to be served or the capacity to be provided by the proposed facility or substantially impede coverage or capacity objectives for the proposed facility that promote the general good of the State under subsection 202c(b) of this title;
(ii) the proposed antennas and equipment will exceed the structural or spatial capacity of the existing or approved tower or facility, and the existing or approved tower or facility cannot be reinforced, modified, or replaced to accommodate planned or equivalent equipment, at a reasonable cost, to provide coverage and capacity comparable to that of the proposed facility;
(iii) the owner of the existing facility will not provide space for the applicant’s proposed telecommunications equipment on or at that facility on commercially reasonable terms; or
(iv) the proposed antennas and equipment will cause radio frequency interference that will materially impact the usefulness of other existing or permitted equipment at the existing or approved tower or facility and such interference cannot be mitigated at a reasonable cost.
(d) Existing permits. When issuing a certificate of public good under this section, the Commission shall give due consideration to all conditions in an existing State or local permit and shall harmonize the conditions in the certificate of public good with the existing permit conditions to the extent feasible.
(e) Notice. No less than 60 days prior to filing an application for a certificate of public good under this section, the applicant shall serve written notice of an application to be filed with the Commission pursuant to this section to the legislative bodies and municipal and regional planning commissions in the communities in which the applicant proposes to construct or install facilities; the Secretary of Natural Resources; the Secretary of Transportation; the Division for Historic Preservation; the Commissioner of Public Service and its Director for Public Advocacy; the Land Use Review Board if the application concerns a telecommunications facility for which a permit previously has been issued under 10 V.S.A. chapter 151; and the landowners of record of property adjoining the project sites. In addition, at least one copy of each application shall be filed with each of these municipal and regional planning commissions. The notices to the legislative body and planning commission of the municipality shall attach a statement that itemizes the rights and opportunities available to those bodies under subdivisions (c)(2) and (e)(2) of this section and under subsections (m), (n), and (o) of this section and informs them of the guide published under subsection (p) of this section and how to obtain a copy of that guide.
(1) Upon motion or otherwise, the Public Utility Commission shall direct that further public or personal notice be provided if the Commission finds that such further notice will not unduly delay consideration of the merits and that additional notice is necessary for fair consideration of the application.
(2) On the request of the municipal legislative body or the planning commission, the applicant shall attend a public meeting with the municipal legislative body or planning commission, or both, within the 60-day notice period before filing an application for a certificate of public good. The Department of Public Service shall attend the public meeting on the request of the municipality. The Department shall consider the comments made and information obtained at the meeting in making recommendations to the Commission on the application and in determining whether to retain additional personnel under subsection (o) of this section.
(3) With the notice required under this subsection, the applicant shall include a written assessment of the colocation requirements of subdivision (c)(3) of this section, as they pertain to the applicant’s proposed telecommunications facility. On the request of the municipal legislative body or the planning commission, the Department of Public Service, pursuant to its authority under subsection (o) of this section, shall retain an expert to review the applicant’s colocation assessment and to conduct further independent analysis, as necessary. Within 45 days following receiving the applicant’s notice and colocation assessment, the Department shall report its own preliminary findings and recommendations regarding colocation to the applicant and to all persons required to receive notice of an application for a certificate of public good under this subsection (e).
(f) Review period. If the Public Utility Commission determines that an application does not raise a significant issue, the Commission shall issue a final determination on an application filed pursuant to this section within 60 days following its filing or, if the original filing did not substantially comply with the Public Utility Commission’s rules, within 60 days following the date on which the Clerk of the Commission notifies the applicant that the filing is complete. If the Commission rules that an application raises a significant issue, it shall issue a final determination on an application filed pursuant to this section within 180 days following its filing or, if the original filing did not substantially comply with the Public Utility Commission’s rules, within 180 days following the date on which the Clerk of the Commission notifies the applicant that the filing is complete.
(g) Letter of intent. Nothing in this section shall be construed to prohibit an applicant from executing a letter of intent or entering into a contract before the issuance of a certificate of public good under this section, provided that the obligations under that letter of intent or contract are made subject to compliance with the requirements of this section.
(h) Exemptions from other law.
(1) An applicant using the procedures provided in this section shall not be required to obtain a permit or permit amendment or other approval under the provisions of 24 V.S.A. chapter 117 or 10 V.S.A. chapter 151 for the facilities subject to the application or to a certificate of public good issued pursuant to this section. This exemption from obtaining a permit or permit amendment under 24 V.S.A. chapter 117 shall not affect the substantial deference to be given to a plan or recommendation based on a local land use bylaw under subdivision (c)(2) of this section.
(2) An applicant using the procedures provided in this section shall not be required to obtain an approval from the municipality under an ordinance adopted pursuant to 24 V.S.A. § 2291(19) or a municipal charter that would otherwise apply to the construction or installation of facilities subject to this section. This exemption from obtaining an approval under such an ordinance shall not affect the substantial deference to be given to a plan or recommendation based on such an ordinance under subdivision (c)(2) of this section.
(3) Disputes over jurisdiction under this section shall be resolved by the Public Utility Commission, subject to appeal as provided by section 12 of this title. An applicant that has obtained or been denied a permit or permit amendment under the provisions of Title 24 or 10 V.S.A. chapter 151 for the construction of a telecommunications facility may not apply for approval from the Commission for the same or substantially the same facility, except that an applicant may seek approval for a modification to such a facility.
(i) Sunset of Commission authority. Effective on July 1, 2026, no new applications for certificates of public good under this section may be considered by the Commission.
(j) Telecommunications facilities of limited size and scope.
(1) The Commission may, subject to such conditions as it may otherwise lawfully impose, issue a certificate of public good in accordance with the provisions of this subsection and without the notice and hearings required by any provision other than subdivision (2) of this subsection if the Commission finds that such facilities will be of limited size and scope, and the application does not raise a significant issue with respect to the substantive criteria of this section. The Commission may make findings based on the application and the supporting evidence submitted by the applicant. If an applicant requests approval of multiple telecommunications facilities in a single application under this section, the Commission may issue a certificate of public good in accordance with the provisions of this subsection for all or some of the telecommunications facilities described in the application.
(2)(A) Any person seeking to proceed under the procedures authorized by this subsection (j) shall file a proposed certificate of public good and proposed findings of fact with its application. Within two business days following notification from the Commission that the filing is complete, the applicant shall serve notice and a copy of the application, proposed certificate of public good, and proposed findings of fact on the Commissioner of Public Service and its Director for Public Advocacy, the Secretary of Natural Resources, the Division for Historic Preservation, the Land Use Review Board if the application concerns a telecommunications facility for which a permit previously has been issued under 10 V.S.A. chapter 151, and each of the legislative bodies and municipal and regional planning commissions in the communities in which the applicant proposes to construct or install facilities. Within two business days following notification from the Commission that the filing is complete, the applicant also shall serve written notice of the proposed certificate on the landowners of record of property adjoining the project site or sites unless the Commission has previously determined on request of the applicant that good cause exists to waive or modify the notice requirement with respect to such landowners. Such notice shall request comment to the Commission within 30 days following the date of service on the question of whether the application raises a significant issue with respect to the substantive criteria of this section. If the Commission finds that an application raises a significant issue with respect to the substantive criteria of this section, the Commission shall hear evidence on any such issue.
(B) An applicant seeking a waiver or modification of notice to adjoining landowners under this subsection shall file a request for such a waiver or modification with the Public Utility Commission not later than 30 days prior to serving written notice under subsection (e) of this section, together with a description of the project and its location, the applicant’s reasons for seeking a waiver or modification, and the applicant’s demonstration that the standard for granting a waiver or modification is met. Any granting of such a waiver or modification shall be based on a determination that the landowners subject to the waiver or modification could not reasonably be affected by one or more of the proposed facilities and that notice to such landowners would constitute a significant administrative burden without corresponding public benefit. The Commission shall rule on a waiver or modification request under this subsection within 21 days following the filing of the request.
(C) If the Commission accepts a request to consider an application under the procedures of this subsection (j), then unless the Public Utility Commission subsequently determines that an application raises a significant issue, the Commission shall issue a final determination on an application within 60 days following the date on which the Clerk of the Commission notifies the applicant that the filing is complete. If, subsequent to acceptance of an application under this subsection (j), the Commission rules that an application raises a significant issue, it shall issue a final determination on an application filed pursuant to this subsection (j) within 90 days following the date on which the Clerk of the Commission notifies the applicant that the filing is complete.
(D) If the Commission denies a request to consider an application under the procedures of this subsection (j), a filing made under this subsection that the Commission has found to be complete shall be deemed to satisfy notice requirements of subsection (e) of this section, and the periods stated under subsection (f) of this section shall run from the date of the Commission’s denial of such request.
(k) De minimis modifications. An applicant intending to make a de minimis modification of a telecommunications facility shall provide written notice of its intent, including a description of the de minimis modification, its plans for the de minimis modification, and its certification that the project constitutes a de minimis modification under this section, to the following: the landowner of record of the property on which the facility is located, the legislative body of the municipality in which the applicant proposes to undertake such limited modifications to the facility, and the Commissioner of Public Service and his or her Director for Public Advocacy. Unless an objection to the classification of a proposed project as a de minimis modification is filed with the Commission within 30 days following this notice, a certificate of public good shall be issued. Objections may be filed only by persons entitled to notice of this proposed project pursuant to this subsection. If an objection of the classification of the proposed project as a de minimis modification is timely filed with the Commission, the Commission may determine whether the intended project meets the definition of de minimis modification established in subdivision (b)(2) of this section.
(l) Rules. The Public Utility Commission may issue rules or orders implementing and interpreting this section. In developing such rules and orders, the Commission shall seek to simplify the application and review process as appropriate. Subject to the provisions of subdivision (c)(1) of this section regarding waiver of the substantive criteria set forth in that subdivision, the Commission may by rule or order waive the requirements of this section that the Commission determines are not applicable to telecommunications facilities of limited size or scope. Determination by the Commission that an application raises a substantial issue with regard to one or more substantive criteria of this section shall not prevent the Commission from waiving other substantive criteria that it has determined are not applicable to such a telecommunications facility.
(m) Municipal bodies; participation. The legislative body and the planning commission for the municipality in which a telecommunications facility is located shall have the right to appear and participate on any application under this section seeking a certificate of public good for the facility.
(n) Municipal recommendations. The Commission shall consider the comments and recommendations submitted by the municipal legislative body and planning commission. The Commission’s decision to issue or deny a certificate of public good shall include a detailed written response to each recommendation of the municipal legislative body and planning commission.
(o) Retention; experts. The Department of Public Service may retain experts and other personnel as identified in section 20 of this title to provide information essential to a full consideration of an application for a certificate of public good under this section. The Department may allocate the expenses incurred in retaining these personnel to the applicant in accordance with section 21 of this title. The Department may commence retention of these personnel once the applicant has filed the 60-day notice under subsection (e) of this section. A municipal legislative body or planning commission may request that the Department retain these personnel. Granting such a request shall not oblige the Department or the personnel it retains to agree with the position of the municipality.
(p) Review process; guide. The Department of Public Service, in consultation with the Commission, shall create, maintain, and make available to the public a guide to the process of reviewing telecommunications facilities under this section for use by local governments and regional planning commissions and members of the public who seek to participate in the process. On or before September 1, 2014, the Department shall complete the creation of this guide and make it publicly available.
(q) Emergency waiver.
(1) Notwithstanding any other provisions of this section, when the Governor has declared a state of emergency pursuant to 20 V.S.A. § 9 and for 180 days after the declared state of emergency ends, the Commission may waive, for a specified and limited time, the prohibitions contained in this section upon site preparation for or construction of a temporary telecommunications facility necessary for maintaining or improving access to telecommunications services. Waivers issued under this subsection shall be valid for a period not to exceed the duration of the declared emergency plus 180 days.
(2) A person seeking a waiver under this subsection shall file a petition with the Commission and shall provide copies to the Department of Public Service and the Agency of Natural Resources. The Commission shall require that additional notice be provided to those listed in subsection (e) of this section and any affected communications union districts. Upon receipt of the petition, the Commission shall conduct an expedited preliminary hearing.
(3) An order granting a waiver may include terms, conditions, and safeguards to mitigate significant adverse impacts, including the posting of a bond or other security, as the Commission deems proper, based on the scope and duration of the requested waiver.
(4) A waiver shall be granted only when the Commission finds that:
(A) good cause exists due to an emergency situation;
(B) the waiver is necessary to maintain or provide access to wireless telecommunications services;
(C) procedures will be followed to minimize significant adverse impacts under the criteria specified in subdivision (c)(1) of this section; and
(D) taking into account any terms, conditions, and safeguards that the Commission may require, the waiver will promote the general good of the State.
(5) Upon the expiration of a waiver, if a certificate of public good has not been issued under this section, the Commission shall require the removal, relocation, or alteration of the facilities subject to the waiver, as it finds will best promote the general good of the State.
(Added 2007, No. 79, § 17, eff. June 9, 2007; amended 2009, No. 54, § 44, eff. June 1, 2009; 2011, No. 53, § 2, eff. May 27, 2011; 2013, No. 167 (Adj. Sess.), § 31; 2013, No. 190 (Adj. Sess.), § 17, eff. June 16, 2014; 2013, No. 199 (Adj. Sess.), § 27; 2015, No. 130 (Adj. Sess.), § 5a, eff. May 25, 2016; 2017, No. 32, § 1; 2017, No. 53, § 5; 2019, No. 125 (Adj. Sess.), § 1; 2023, No. 20, § 1, eff. May 25, 2023; 2023, No. 85 (Adj. Sess.), § 385, eff. July 1, 2024.)
§ 248b Fees; Agency of Natural Resources; participation in siting proceedings
(a) Establishment. This section establishes fees for the purpose of supporting the role of the Agency of Natural Resources (the Agency) in reviewing applications for in-state facilities under sections 248 and 248a of this title.
(b) Payment. The applicant shall pay the fee into the State Treasury at the time the application for a certificate of public good is filed with the Public Utility Commission in an amount calculated in accordance with this section. The fee shall be deposited into the Natural Resources Management Fund and allocated to the Agency.
(c) Definitions. In this section:
(1) “kW,” “MW,” and “plant capacity” shall have the same meaning as in section 8002 of this title.
(2) “Natural gas facility” shall have the same meaning as in section 248 of this title.
(3) “Telecommunications facility” shall have the same meaning as in section 248a of this title.
(d) Electric and natural gas facilities. This subsection sets fees for applications under section 248 of this title.
(1) There shall be no fee for an electric generation facility less than or equal to 50 kW in plant capacity, for roof-mounted photovoltaic systems of any capacity up to and including 500 kW, or for an application filed under subsection 248(k), (l), or (n) of this title.
(2) The fee for electric generation facilities greater than 50 kW through five MW in plant capacity shall be calculated as follows, except that in no event shall the fee exceed $15,000.00:
(A) An electric generation facility from 51 kW through 139 kW in plant capacity, $2.00 per kW.
(B) An electric generation facility from 140 kW through 450 kW in plant capacity, $3.00 per kW.
(C) An electric generation facility from 451 kW through 2.2 MW in plant capacity, $4.00 per kW.
(D) An electric generation facility from 2.201 MW through five MW in plant capacity, $5.00 per kW.
(3) The fee shall be equal to $2.50 for each $1,000.00 of construction costs, but in no event greater than $100,000.00 per application, for a new electric generation facility greater than five MW in capacity, and for a new electric transmission facility or new natural gas facility not eligible for treatment under subsection 248(j) of this title.
(4) The fee shall be $2,500.00 for an application under subsection 248(j) of this title for a facility that is not electric generation and for an application or that portion of an application under section 248 of this title that consists of upgrading an existing facility within its existing development footprint, reconductoring of an electric transmission line on an existing structure, or the addition of an electric transmission line to an existing structure.
(e) Telecommunications facilities. For an application under section 248a of this title proposing a wireless telecommunications facility that includes a new support structure, the fee shall be equal to $2.50 for each $1,000.00 of construction costs, but in no event greater than $15,000.00.
(f) Exercise of duties. The Agency of Natural Resources shall exercise its duties under this title in a manner consistent with implementation of State policy and goals under sections 202a and 202c and chapter 89 of this title. In exercising its duties, the Agency shall establish procedures and work flow goals for the timely review of applications under sections 248 and 248a of this title. On or before the third Tuesday of each annual legislative session, the Agency shall submit a report to the General Assembly by electronic submission. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to this report. The report shall: list the fees collected under this section during the preceding fiscal year; discuss the Agency’s performance in exercising its duties under this title during that year; identify areas that hinder the Agency’s effective performance of these duties and summarize changes made to improve such performance; and, with respect to the Agency’s exercise of these duties, discuss the Agency’s staffing needs during the coming fiscal year and the future goals and objectives of the Agency.
(Added 2015, No. 57, § 17; amended 2017, No. 163 (Adj. Sess.), § 2.)
§ 248c Fees; Department of Public Service and Public Utility Commission; participation in certification and siting proceedings
(a) Establishment. This section establishes fees for the purpose of supporting the role of the Department of Public Service (Department) and the Public Utility Commission (Commission) in reviewing applications for in-state facilities under section 248 of this title. Companies that pay the gross receipts tax as provided in section 22 of this title shall not be subject to the fees established in this section.
(b) Payment. The applicant shall pay the fee into the State Treasury at the time the application for a certificate of public good is filed with the Commission in an amount calculated in accordance with this section. The fee shall be deposited into the gross revenue fund. Of the fees deposited into the gross revenue fund, 60 percent shall be allocated to the Department and 40 percent shall be allocated to the Commission.
(c) Definitions. As used in this section, “kW” and “plant capacity” have the same meanings as in section 8002 of this title.
(d) Electric and natural gas facilities. This subsection sets fees for registrations and applications under section 248 of this title.
(1) There shall be a fee of $100.00 for each electric generation facility less than or equal to 50 kW in plant capacity, or for a rooftop project, or for a hydroelectric project filing a net metering registration, or for an application filed under subsection 248(n) of this title, or for an energy storage facility less than or equal to 1 MW in nameplate capacity that is required to obtain a certificate of public good under section 248 of this title and is proposed to be located inside an existing building and that would not require any ground disturbance work or upgrades to the distribution system.
(2) There shall be a fee of $25.00 for modifications for each electric generation facility less than or equal to 50 kW in plant capacity, or for a rooftop project, or for a hydroelectric project filing a net metering registration, or for an application filed under subsection 248(n) of this title, or for an energy storage facility less than or equal to 1 MW in nameplate capacity that is required to obtain a certificate of public good under section 248 of this title and is proposed to be located inside an existing building and that would not require any ground disturbance work or upgrades to the distribution system.
(3) There shall be a fee for electric generation facilities and energy storage facilities that are required to obtain a certificate of public good under section 248 of this title and that do not qualify for the lower fees in subdivisions (1) and (2) of this subsection, calculated as follows:
(A) $5.00 per kW; and
(B) $100.00 for modifications.
(4) For applications that include both a proposed electric generation facility and a proposed energy storage facility, the fee shall be the larger of either the fee for the electric generation facility or the energy storage facility as set out in subdivisions (1) and (3) of this subsection.
(5) For applications that propose to add an energy storage facility to a location that already has a certificate of public good for an electric generation facility, the fee shall be that for a proposed new energy storage facility as set out in subdivisions (1) and (3) of this subsection.
(6) For applications that propose to add an electric generation facility to a location that already has a certificate of public good for an energy storage facility, the fee shall be that for a proposed new electric generation facility as set out in subdivisions (1) and (3) of this subsection.
(e) Report. On or before the third Tuesday of each annual legislative session, the Department and Commission shall jointly submit a report to the General Assembly by electronic submission. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to this report. The report shall list the fees collected and refunds approved, if any, under this section and under section 248d of this title during the preceding fiscal year.
(Added 2019, No. 70, § 10; amended 2023, No. 142 (Adj. Sess.), § 13, eff. May 30, 2024.)
§ 248d Fee refund
If an applicant withdraws an application and seeks a fee refund, then a written request for an application fee refund shall be submitted to the Public Utility Commission (Commission) within 90 days following the withdrawal of the application.
(1) As used in this section, “agency” means the Agency of Natural Resources, the Department of Public Service, or the Commission.
(2) In the event that an application is withdrawn before any agency has filed comments expressing a position on any part of the application, filed testimony, or filed a stipulated agreement with the Commission in the context of a certificate of public good proceeding, the Commission shall, upon request of the applicant, refund 50 percent of the fee paid to each agency above the first $100.00; however, in no instance shall the agency retain more than $20,000.00.
(3) In the event that an application is withdrawn after any agency has filed comments expressing a position on any part of the application, filed testimony, or filed a stipulated agreement with the Commission in the context of a certificate of public good proceeding, the Commission shall, upon request of the applicant, refund 25 percent of the fee paid to each agency above the first $100.00.
(4) Commission decisions regarding application fee refunds may be appealed to the Vermont Supreme Court.
(5) In no event may an application fee or a portion thereof be refunded after the Commission has issued a final decision on the merits of an application, whether the decision is to grant or deny the application in whole or in part.
(6) No interest will be due or payable on any money refunded under this section.
(Added 2019, No. 70, § 11; amended 2023, No. 85 (Adj. Sess.), § 386, eff. July 1, 2024.)
§ 249 Service territories; Commission jurisdiction
(a) The Public Utility Commission shall have jurisdiction to establish service territories for companies subject to its supervision that are engaged in the distribution of electrical energy in the State and to alter those territories from time to time as conditions warrant. In establishing or in altering service territories, the Commission shall give consideration to:
(1) existing service areas;
(2) any voluntary agreements between or among two or more such companies filed with the Commission that define service territories of the companies;
(3) consistency with the orderly development of the region;
(4) natural geographical boundaries;
(5) compatibility with the interests of all consumers; and
(6) all other relevant factors.
(b) The Commission shall have power to exercise the jurisdiction conferred in this section only after due notice to all interested parties and an opportunity for a hearing, and after making findings that the service territories established or altered are consistent with the general good of Vermont. If a hearing is requested by a party or by any customer who is potentially affected by the proposed change, the Commission shall hold a hearing.
(c) In establishing service territories, the Commission may declare that specified areas are not within the service territory of any company and may leave the assignment of such areas for later determination.
(Added 1969, No. 257 (Adj. Sess.), § 3; amended 2021, No. 42, § 7.)
§ 249a Campground submetering
Notwithstanding the provisions of section 249 of this title or any other provision of this title, a person operating a recreational campground may provide submetered electric service to campground users on a nonprofit basis, if such service is provided in accordance with rules adopted by the Commission, including rules relating to notice of rates and charges, accuracy of electrical submeters, and reasonable billing and complaint procedures.
(Added 1995, No. 182 (Adj. Sess.), § 18, eff. May 22, 1996.)
§ 250 Application; maps
Within six months after July 1, 1970, or at such later date as the Public Utility Commission may establish, each company engaged in the distribution of electrical energy in the State shall apply to the Commission for a service territory consisting of the distribution area served by it on July 1, 1970 and any areas not presently served by it or any other electric utility company that it believes it is entitled to serve. After consideration of the factors set forth in section 249 of this title, the Commission shall establish the service territory of each company. The service territory thus established shall be defined on a map or maps approved by the Commission. In the event applications under this section are filed by more than one electric company for an area, the Commission shall, after notice and hearing, determine what part of the area as to which competing claims are filed should be awarded to the respective applicants. In the event the distribution facilities of the competing applicants are so intertwined or commingled as to make establishment of exclusive service territories impracticable, the Commission may authorize two or more companies that have filed competing applications to serve the area in conflict, subject to the provisions of section 251 of this title.
(Added 1969, No. 257 (Adj. Sess.), § 4.)
§ 251 Areas served by several companies
(a) In any area that two or more companies distributing electrical energy are authorized to serve, a company shall not construct or extend its facilities, or furnish or offer to furnish its service to any person or property presently served by another public utility, without the written consent of the other public utility or unless the Public Utility Commission, after notice and hearing, finds and determines that the service rendered by the serving public utility is inadequate and is not likely to be made adequate.
(b) In the event service is requested for premises in an area that two or more companies distributing electrical energy are authorized to serve and have facilities available for service to the property, the public utility company the existing service facilities of which are nearest the metering point on the premises to be served shall, subject to the other applicable provisions of this section, be entitled to serve the premise.
(c) In the event that service is requested for premises not within the service territory of any company, and if more than one other public utility is available for service to the property, the public utility whose existing service facilities are nearest the metering point on the premises to be served shall, subject to the other applicable provisions of this section, be entitled to serve said premises.
(d) A company shall not construct or extend its facilities or furnish or offer to furnish its services to premises within the service territory of another company without being requested to do so by the company in whose territory the premises are located or unless the Public Utility Commission, upon petition of the person served or to be served, after notice and hearing, finds and determines that the service rendered by such public utility in whose territory and premises are located is inadequate and will not be likely to be made adequate.
(e) In resolving any dispute under subsections (b), (c), and (d) of this section, the Commission shall consider the factors set forth in section 249 of this title.
(Added 1969, No. 257 (Adj. Sess.), § 5.)
§ 252 Experts, payment of expense
The Public Utility Commission may employ technical and professional assistance as may be required in making the service territory determinations under sections 249-251 of this title and may allocate equitably that portion of the expense to the company or companies involved.
(Added 1969, No. 257 (Adj. Sess.), § 6.)
§ 253 National Environmental Policy Act review
The Governor may authorize a State agency, including the Public Utility Commission, to participate as a lead agency or a cooperating agency in any environmental review pursuant to the provisions of the National Environmental Policy Act of 1969, as amended, of any natural gas facility, as defined in subdivision 248(a)(3) of this title, which is to be located in Vermont and which requires a federal approval pursuant to the Natural Gas Act.
(Added 1987, No. 273 (Adj. Sess.), § 3, eff. June 21, 1988.)
§ 254 Construction or extended operation of nuclear plant; public engagement process
(a) Timelines for approval.
(1) Any petition for approval of construction of a nuclear energy generating plant within the State, or any petition for approval of the operation of a nuclear energy generating plant beyond the date established in a certificate of public good issued under this title, must be submitted to the Public Utility Commission no later than four years before the date upon which the approval may take effect.
(2) Upon receipt of a petition for approval of construction or operation as provided under this section, the Public Utility Commission shall notify the General Assembly of that fact. The Department of Public Service with the review of the Joint Energy Committee, is authorized and directed to arrange for studies to be conducted as appropriate to support the General Assembly in the fact finding and public engagement process established in subsection (b) of this section.
(3) Upon completion of the studies, the Department of Public Service shall provide the studies to the Public Utility Commission and to the Senate Committees on Finance and on Natural Resources and Energy and the House Committees on Commerce and Economic Development and on Environment and Energy together with other information requested by the General Assembly.
(b) Public engagement and fact-finding.
(1) The objectives of the studies to be arranged by the Department of Public Service with the review of the Joint Energy Committee and the objectives of the public engagement process as a whole shall be:
(A) to facilitate public discussion of long-term economic and environmental issues relating to the operation of any nuclear facility in the State;
(B) to identify and assess the potential need for the operation of the facility and its long-term economic and environmental benefits, risks, and costs; and
(C) to assess all practical alternatives to those set forth in the applicant’s petition that may be more cost-effective or that otherwise may better promote the general welfare.
(2) The studies arranged by the Department in consultation with the Joint Energy Committee and the public engagement process, in general, shall:
(A) identify, collect information on, and provide analysis of long-term accountability and financial responsibility issues, such as:
(i) funding plans for guardianship of nuclear waste after licensure but before removal of nuclear waste from the site;
(ii) closure obligations, dates of completion, and assurance of funds to secure fulfillment of those closure obligations;
(iii) federal obligations and assurance of funds to provide for any undischarged federal responsibilities;
(iv) funding for emergency management requirements and evacuation plans before and after plant closure; and
(v) any other financial responsibility related to any periods in which the facility is out of service.
(B) identify, collect information on, and provide analysis of long-term environmental, economic, and public health issues, including issues relating to dry cask storage of nuclear waste and decommissioning options; and
(C) identify, collect information on, and provide analysis of current economic issues, in light of the fact that the operation of the nuclear energy generating plant beyond the date permitted in any previous certificate of public good is to be evaluated under present day cost-benefit assumptions and analyses and not as an extension of the cost-benefit assumptions and analyses forming the basis of the previous certificate of public good for the operation of the facility.
(3) In conducting its part of the public engagement process, the Department shall conduct no less than three public meetings. The meetings shall be at separate locations within the State, in proximity to the nuclear energy generating facilities involved as well as in other locations as determined by the Department, and each shall be noticed by at least two advertisements, each occurring between one and three weeks prior to the meetings, in newspapers having general circulation within the State and within the municipalities in which the meetings are to be held. Copies of the notices shall be provided to the Public Utility Commission, the General Assembly, the Agency of Natural Resources, the Department of Health, the Agency of Transportation, the Attorney General, and each retail electricity provider within the State. During this public engagement and fact-finding process, the Department shall have authority to retain expert witnesses, counsel, advisors, stenographic, and other research assistance it may require. The Department may compensate the same and allocate related costs, as well as the costs of procuring the studies, to the owner of the Vermont Yankee nuclear power station, in the same manner authorized for personnel in particular proceedings under sections 20 and 21 of this title. The Department shall prepare a report of the proceedings containing a discussion of the principal contentions made by members of the public, analyses by any expert witnesses or consultants retained by the Department, and presentations by any State agency and by any utility and shall provide the same to the members of the Senate Committees on Finance and on Natural Resources and Energy and the House Committees on Commerce and Economic Development and on Environment and Energy and to the public.
(4) The public engagement and fact finding process set forth in this section may be held in conjunction with or separately from the statewide public engagement process on energy planning to be conducted by the Department pursuant to the Energy Security and Reliability Act.
(5) The General Assembly shall conduct proceedings it deems appropriate in order to complete the fact finding and public engagement process.
(c) Public Utility Commission action. In acting on a petition subject to this section, the Commission shall consider the objectives of the studies to be arranged by the Department, the objectives of the public engagement process as a whole, and the general and specific issues that the studies are required to address, as specified in subsection (b) of this section.
(Added 2005, No. 160 (Adj. Sess.), § 4; amended 2017, No. 113 (Adj. Sess.), § 173c.)
§ 254a Joint Fiscal Committee; nuclear energy analysis
(a) The Joint Fiscal Committee may authorize or retain services or resources to assist the General Assembly:
(1) in any legislative proceeding under or related to subsection 248(e) of this title or 10 V.S.A. chapter 157; or
(2) with respect to any proceedings before any State or federal court concerning a nuclear generating plant in the State and related issues.
(b) Persons retained pursuant to subsection (a) of this section shall work under the direction of a special committee consisting of the Chairs of the House Committees on Energy and Technology and on Natural Resources, Fish, and Wildlife and the Senate Committee on Natural Resources and Energy and the Joint Fiscal Committee.
(c) The Public Utility Commission shall allocate expenses incurred pursuant to subsection (a) of this section to the applicant or the company or companies involved and such allocation and expense may be reviewed by the Public Utility Commission pursuant to section 21 of this title.
(Added 2011, No. 47, §§ 20p, 20q, eff. May 25, 2011; amended 2017, No. 113 (Adj. Sess.), § 173d.)
§ 255 Regional coordination to reduce greenhouse gases
(a) Legislative findings. The General Assembly finds:
(1) There is a growing scientific consensus that the increased anthropogenic emissions of greenhouse gases are enhancing the natural greenhouse effect, resulting in changes in the earth’s climate.
(2) Climate change poses serious potential risks to human health and terrestrial and aquatic ecosystems globally, regionally, and in Vermont.
(3) A carbon constraint on fossil fuel-fired electricity generation and the development of a CO2 allowance trading mechanism will create a strong incentive for the creation and deployment of more efficient fuel-burning technologies, renewable resources, and end-use efficiency resources and will lead to lower dependence on imported fossil fuels.
(4) Absent federal action, a number of states are taking actions to work regionally to reduce power sector carbon emissions.
(5) Vermont has joined with at least six other states to design the Regional Greenhouse Gas Initiative (RGGI), and, in 2005, Vermont’s Governor signed a memorandum of understanding (MOU) signaling Vermont’s intention to develop rules and programs to participate in RGGI.
(6) It is crucial to manage Vermont’s implementation of RGGI and its consumption of fossil fuels for residential and commercial heating, and industrial processes, so as to maximize the State’s contribution to lowering carbon emissions while:
(A) minimizing impacts on electric system reliability and unnecessary costs to Vermont energy consumers; and
(B) minimizing the costs and the emissions resulting from the use of petroleum-based fuels for space heating and process heating for residential, commercial, and industrial purposes.
(7) The accelerated deployment of low-cost process, thermal, and electrical energy efficiency, the strategic use of low- and zero-carbon generation, and the selective use of switching fuel sources are the best means to achieve these goals.
(8) It is crucial that funds made available from operation of a regional carbon credits cap and trade system be devoted to the benefit of Vermont energy consumers through investments in a strategic portfolio of energy efficiency, weatherization, and low-carbon generation resources.
(b) Cap and trade program creation.
(1) The Agency of Natural Resources and the Public Utility Commission shall, through appropriate rules and orders, establish a carbon cap and trade program that will limit and then reduce the total carbon emissions released by major electric generating stations that provide electric power to Vermont utilities and end-use customers.
(2) Vermont rules and orders establishing a carbon cap and trade program shall be designed so as to permit the holders of carbon credits to trade them in a regional market proposed to be established through the RGGI.
(c) Allocation of tradable carbon credits.
(1) The Secretary of Natural Resources, by rule, shall establish a set of annual carbon budgets for emissions associated with the electric power sector in Vermont that are consistent with the 2005 RGGI MOU, including any amendments to that MOU and any reduced carbon cap resulting from a subsequent program review by RGGI, and that are on a reciprocal basis with the other states participating in the RGGI process.
(2) In order to provide the maximum long-term benefit to Vermont consumers, particularly benefits that will result from accelerated and sustained investments in energy efficiency and other low-cost, low-carbon power system, building envelope, and other investments, the Public Utility Commission, by rule or order, shall establish a process to allocate 100 percent of the Vermont statewide budget of tradable power sector carbon credits to one or more trustees acting on behalf of consumers in accordance with the following principles. To the extent feasible, the allocation plan shall accomplish the following goals:
(A) minimize windfall financial gains to power generators as a result of the operation of the cap and trade program, considering both the costs that generators may incur to participate in the program and any power revenue increases they are likely to receive as a result of changes in regional power markets;
(B) employ an administrative structure that will enable program managers to perform any combination of holding, banking, and selling carbon credits in regional, national, and international carbon credit markets in a financially responsible and market-sensitive fashion, and provide funds to defray the reasonable costs of the program trustee or trustees and Vermont’s pro rata share of the costs of the RGGI regional organization;
(C) optimize the revenues received from the management and sale of carbon credits for the benefit of Vermont energy consumers and the Vermont economy;
(D) minimize any incentives from operation of the cap and trade program for Vermont utilities to increase the overall carbon emissions associated with serving their customers;
(E) build upon existing regulatory and administrative structures and programs that lower power and heating costs, improve efficiency, and lower the State’s carbon profile while minimizing adverse impacts on electric system reliability and unnecessary costs to Vermont energy consumers, and minimizing the costs and the emissions resulting from the use of petroleum-based fuels for space heating and process heating for residential, commercial, and industrial purposes;
(F) ensure that carbon credits allocated under this program and revenues associated with their sale remain public assets managed for the benefit of the State’s consumers, particularly benefits that will result from accelerated and sustained investments in energy efficiency and other low-cost, low-carbon power, or heating system or building envelope investments; and
(G) where practicable, support efforts recommended by the Agency of Natural Resources or the Department of Public Service to stimulate or support investment in the development of innovative carbon emissions abatement technologies that have significant carbon reduction potential.
(d) Appointment of consumer trustees. The Public Utility Commission, by rule, order, or competitive solicitation, may appoint one or more consumer trustees to receive, hold, bank, and sell tradable carbon credits created under this program. Trustees may include Vermont electric distribution utilities, the fiscal agent collecting and disbursing funds to support the statewide efficiency utility, or a financial institution or other entity with the expertise and financial resources to manage a portfolio of carbon credits for the long-term benefit of Vermont energy consumers. The net proceeds above costs from the sale of carbon credits shall be deposited into the Electric Efficiency Fund established under subdivision 209(d)(3) of this title. These funds shall be used by the entity or entities appointed under subdivision 209(d)(2)(B) of this title to help meet the building efficiency goals established under 10 V.S.A. § 581 by delivering heating and process-fuel energy efficiency services to Vermont consumers who use such fuel.
(e) Reports. On or before January 15 of each year, commencing in 2007, the Department of Public Service in consultation with the Agency of Natural Resources and the Public Utility Commission shall provide to the House Committees on Commerce and Economic Development; on Environment and Energy; and on Natural Resources, Fish, and Wildlife and the Senate Committees on Finance and on Natural Resources and Energy a report detailing the implementation and operation of RGGI and the revenues collected and the expenditures made under this section, together with recommended principles to be followed in the allocation of funds. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.
(f) State action offsets. The State’s negotiators to RGGI shall advocate for and negotiate to adjust the rules of the program, as needed, so that greenhouse gas reductions resulting from State investments and other public investments and investments required by State law will not be prohibited from being eligible for offsets under the program.
(Added 2005, No. 123 (Adj. Sess.), § 1; amended 2007, No. 92 (Adj. Sess.), § 18; 2007, No. 209 (Adj. Sess.), § 13b; 2009, No. 54, § 105, eff. June 1, 2009; 2009, No. 1 (Sp. Sess.), § E.235.2, eff. June 2, 2009; 2011, No. 47, § 20c, eff. May 25, 2011; 2013, No. 50, § E.700; 2013, No. 89, § 4; 2013, No. 142 (Adj. Sess.), § 50; 2017, No. 113 (Adj. Sess.), § 173e.)
Subchapter 2 Emergency Public Motor Bus Transportation
§§ 271-273 [Expired].
Chapter 7 Consolidation or Merger of Corporations Under Jurisdiction of Commission
§§ 301-310 [Omitted].
§ 311 Public Utility Commission’s authority
A consolidation or merger under the provisions of this chapter shall not become effective without the approval of the Public Utility Commission after due notice and opportunity for hearing, and the finding on its part that such consolidation or merger will not result in obstructing or preventing competition in the purchase or sale of any product, service, or commodity, in the sale, purchase, or manufacture of which such corporations are engaged.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1993, No. 21, § 11, eff. May 12, 1993.)
Chapter 9 Dams
§ 401 Lake Seymour
The Public Utility Commission shall ascertain and establish the natural maximum and minimum water levels of Lake Seymour at the outlet, excluding from its determination of such levels the effect on natural conditions disturbed by blasting of the barrier, changes in the depth and width of the channel above and below the barrier, as well as the effect the present control dam may have on such levels. When such levels are so established, the Commission shall certify its findings to the Secretary of State and cause the same to be recorded in the offices of the town clerks of the towns of Morgan and Charleston.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 402 Prohibition
The waters of Lake Seymour shall not by any artificial means be raised higher or drawn lower, or permitted through neglect to become lower or higher, than the maximum and minimum levels established by the Commission.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 403 Penalty
A person, firm, or corporation who violates a provision of sections 401 and 402 of this title shall be subject to the penalty set forth in 10 V.S.A. § 1094.
§ 404 Great Averill Pond, Little Averill Pond, Norton Lake
The Public Utility Commission shall establish maximum and minimum water levels of Great Averill Pond, located in the towns of Averill and Norton, and Little Averill Pond, located in the town of Averill, and Norton Lake, located in the town of Norton and in Warren’s Gore, at their outlets. The Commission may revise its findings from time to time either on its own motion or on petition of interested parties and, after opportunity for hearing, establish different water levels. When such levels are so established, the Commission shall certify its findings to the Secretary of State and cause the same to be recorded in the office of the town clerk of Norton.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1993, No. 21, § 12, eff. May 12, 1993.)
§ 405 Prohibition
The waters of Great Averill and Little Averill ponds and Norton Lake shall not by any artificial means be raised higher or drawn lower, or permitted through neglect to become lower or higher, than the maximum and minimum levels established by the Commission.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 406 Penalty
A person, firm, or corporation who violates a provision of sections 404 and 405 of this title shall be subject to penalties in the same manner as a violation of 10 V.S.A. chapter 43.
(Amended 2017, No. 74, § 126.)
Chapter 11 Transportation of Explosives, Inflammable Materials
§§ 451-453 Repealed
[Repealed]
1971, No. 205 (Adj. Sess.), § 7, eff. date, see note set out below.
Chapter 13 Cable Television Systems
§ 501 Definitions
As used in this chapter:
(1) “Commission” shall mean the Public Utility Commission.
(2) “Cable television system” means facilities by which television signals are received at a central location and for consideration are transmitted to customers or subscribers by means of cables or wires.
(3) “Company” or “companies” means persons, partnerships, associations, corporations, including a municipality authorized under section 513 of this title, owning or operating a cable television system, except nonprofit systems serving fewer than 100 subscribers.
(Added 1969, No. 167 (Adj. Sess.), § 1, eff. Feb. 10, 1970; amended 1987, No. 271 (Adj. Sess.), § 3, eff. June 21, 1988.)
§ 502 Jurisdiction
(a) A company subject to supervision under this chapter shall have the privileges provided in and be subject to the provisions of chapters 1 through 7 of this title.
(b) The Commission shall be the franchising authority in the State empowered to grant, renew, and revoke certificates of public good for all cable television systems and shall have all other authority to regulate cable television systems.
(c) In any ratemaking and certification, it shall be the continuing policy of the State of Vermont that the capital investment on which rates shall be based will be the historic original cost of the assets of the company less accumulated depreciation of those assets.
(Added 1969, No. 167 (Adj. Sess.), § 1, eff. Feb. 10, 1970; amended 1979, No. 204 (Adj. Sess.), § 32, eff. Feb. 1, 1981; 1987, No. 271 (Adj. Sess.), § 4, eff. June 21, 1988.)
§ 503 Certification
(a) No company may own or operate a cable television system unless it holds a certificate of public good issued by the Commission authorizing it to do so.
(b) The Commission shall hear and determine applications in accordance with the criteria of section 504 of this title and the procedures set forth in sections 102 and 231 of this title.
(c) Application for a certificate of public good shall be made in writing to the Commission and shall contain the names of the owners or incorporators of the company, a description of the territory proposed to be served, a statement as to the proposed financing for the company, and such other information as the Commission by rule requires.
(d) Existing certificates of public good shall continue in full force and effect, but shall be deemed to include all terms and conditions imposed by this chapter and by the rules of the Public Utility Commission, and any inconsistent provision of any certificate of public good shall have no force or effect.
(e) Certificates of indefinite duration may be amended to provide for a duration of 11 years and such other terms as the Commission, after opportunity for hearing, may find appropriate.
(f) Revocation for cause: At any time a certificate of public good of a company issued pursuant to this section or section 504 of this title shall be subject to revocation under the provisions of section 509 of this title, regardless of whether it is subject to review, is seeking renewal, is electing not to seek renewal, or has been denied renewal.
(Added 1969, No. 167 (Adj. Sess.), § 1, eff. Feb. 10, 1970; amended 1987, No. 271 (Adj. Sess.), § 5, eff. June 21, 1988; 1993, No. 21, § 13, eff. May 12, 1993.)
§ 504 Certificates of public good
(a) Certificates of public good granted under this chapter shall be for a period of 11 years.
(b) Issuance of a certificate shall be after opportunity for hearing and findings by the Commission that the applicant has complied or will comply with requirements adopted by the Commission to ensure that the system provides:
(1) designation of adequate channel capacity and appropriate facilities for public, educational, or governmental use;
(2) adequate and technically sound facilities and equipment, and signal quality;
(3) a reasonably broad range of public, educational, and governmental programming;
(4) the prohibition of discrimination among customers of basic service; and
(5) basic service in a competitive market, and if a competitive market does not exist, that the system provides basic service at reasonable rates determined in accordance with section 218 of this title.
(c) In addition to the requirements set forth in subsection (b) of this section, the Commission shall ensure that the system provides or utilizes:
(1) a reasonable quality of service for basic, premium, or otherwise, having regard to available technology, subscriber interest, and cost;
(2) construction, including installation, that conforms to all applicable State and federal laws and regulations and the National Electric Safety Code;
(3) a competent staff sufficient to provide adequate and prompt service and to respond quickly and comprehensively to customer and Department complaints and problems;
(4) unless waived by the Commission, an office that shall be open during usual business hours, and a listed, toll-free telephone number so that complaints and requests for repairs or adjustments may be received; and
(5) reasonable rules and policies for line extensions, disconnections, customer deposits, and billing practices.
(d) A certificate granted to a company shall represent nonexclusive authority of that company to build and operate a cable television system to serve customers only within specified geographical boundaries. Extension of service beyond those boundaries may be made pursuant to the criteria in section 504 of this title, and the procedures in section 231 of this title.
(Added 1969, No. 167 (Adj. Sess.), § 1, eff. Feb. 10, 1970; amended 1987, No. 271 (Adj. Sess.), § 6, eff. June 21, 1988; 1993, No. 21, § 14, eff. May 12, 1993; 2017, No. 113 (Adj. Sess.), § 174.)
§ 505 Service
No company holding a certificate of public good under this chapter may abandon or curtail any service subject to the jurisdiction of the Commission or abandon all or any part of its facilities if it would thereby effect the abandonment, curtailment, or impairment of the service, without obtaining approval of the Public Utility Commission, after notice and opportunity for hearing, and upon a finding by the Commission that the abandonment or curtailment is consistent with the public interest.
(Added 1969, No. 167 (Adj. Sess.), § 1, eff. Feb. 10, 1970; amended 1993, No. 21, § 15, eff. May 12, 1993.)
§ 506 Renewal
Certificates with a limited duration may be renewed during or at the end of the period, after opportunity for hearing held according to the criteria for the granting of an original certificate in section 504 of this title and after the Commission has made the finding required by that section. As part of the renewal proceedings, the Commission shall hold a public hearing. The public hearing shall either be remotely accessible or held in each county served pursuant to the certificates that are the subject of the renewal proceedings, or both.
(Added 1987, No. 271 (Adj. Sess.), § 7, eff. June 21, 1988; amended 1999, No. 157 (Adj. Sess.), § 11; 2023, No. 33, § 3, eff. July 1, 2023.)
§ 507 Repealed
[Repealed]
1973, No. 147 (Adj. Sess.), § 3.
§ 508 Unauthorized operation; penalty
A person or company rendering service that is subject to the jurisdiction of the Public Utility Commission under this chapter, without holding a certificate of public good issued by the Public Utility Commission for that purpose under this chapter, may be fined not more than $1,000.00 for each day.
(Added 1971, No. 202 (Adj. Sess.), § 2, eff. May 1, 1972; amended 1987, No. 271 (Adj. Sess.), § 8, eff. June 21, 1988.)
§ 509 Amendment and revocation; fines; assurance of discontinuance
(a) For good cause, after opportunity for hearing, the Commission may amend or revoke any certificate of public good awarded pursuant to section 503 or 504 of this title.
(b) If the Commission finds that a company has violated any material provision of its certificate or this chapter, it shall allow the company a reasonable opportunity to cure the violation. Thereafter, in the event of failure to cure, the Commission may enter an order revoking the certificate. In addition, the Commission may impose a civil penalty in an amount not to exceed $1,000.00 per day nor a total of $20,000.00 for each violation unless otherwise provided in the certificate of public good, after giving due consideration to the size of the company, severity of the violation, and efforts to cure.
(c) In any case in which the Commission may revoke a certificate, in lieu thereof, the Commission may accept an assurance of discontinuance of any method, act, or practice from any company. The assurance may include a stipulation for affirmative action by such company, payment of the costs of investigation, or of an amount to be held in escrow pending the outcome of an action or as restitution to aggrieved consumers, or any combination of those options. Any assurance of discontinuance shall be in writing and may be sought and negotiated by the Department of Public Service, subject to the approval of the Commission. Proof of a violation of an assurance shall be prima facie evidence of violation of this chapter, or of the terms and conditions of a certificate granted under this chapter.
(Added 1987, No. 271 (Adj. Sess.), § 9, eff. June 21, 1988; amended 1999, No. 157 (Adj. Sess.), § 12; 2023, No. 85 (Adj. Sess.), § 387, eff. July 1, 2024.)
§ 510 Notice to subscribers regarding quality of service
(a) Annually, every company shall cause to be mailed to each of its subscribers a notice that:
(1) states that the Commission and the Department of Public Service desire to hear the views of subscribers regarding the quality of services provided by the cable television system and as to the reasonableness of the terms upon which such services are provided; and
(2) informs subscribers as to how to communicate their views to the Commission, to the Department, and to the company.
(b) The notice required by this section shall be in nontechnical language, comprehensible to the lay public, and in a form approved by the Commission.
(c) On or before January 30 of each year, the company shall certify to the Commission, under oath, that it has distributed the notice during the previous calendar year as required by this section.
(Added 1987, No. 271 (Adj. Sess.), § 10, eff. June 21, 1988.)
§ 511 Extensions for transfer or sale
At the end of a certificate period that was not renewed, or if a certificate is revoked, the Commission may grant the company a period of time, not to exceed one year, to transfer ownership or sell company assets.
(Added 1987, No. 271 (Adj. Sess.), § 11, eff. June 21, 1988.)
§ 512 Assistance to unserved areas
(a) The legislative body of a municipality unserved by a cable television system, and that desires such service, may request the assistance of the Department of Public Service. Upon receipt of any request from a municipality in an unserved area, the Department shall analyze and define the service territory, taking particular account of the type of service that may be requested by the municipality, and the service currently provided by companies in contiguous areas. The Department shall prepare a request for proposals to provide such service and submit the request to all companies that the Department determines would likely serve the areas, and shall advertise in the local trade and press.
(b) Upon receipt of any responses to serve the municipality, the Department shall submit them together with any comment thereon to the municipality, and invite the responding companies to apply for a certificate of public good under this chapter.
(Added 1987, No. 271 (Adj. Sess.), § 12, eff. June 21, 1988.)
§ 513 Municipal cable television systems
(a) A municipality may establish de novo a cable television system in an area otherwise unserved after proceeding under section 512 of this title. A municipality may do so under this section without obtaining amendments to and General Assembly authorization of its municipal charter for that purpose. However, this section shall not be construed to affect or limit the authority of any municipality to establish and operate a cable television system under authority of a municipal charter or ordinance.
(b) A company established by a municipality under this section, shall obtain a certificate of public good for the construction or operation of a cable television system under this chapter.
(c) For the purpose of this section, a municipality shall mean any city, town, or village within this State.
(d) Prior to establishing a cable television system under this subsection, a municipality must first obtain authorization from its legislative body or voters in the manner prescribed for authorizing municipal electric plants under section 2903 or 2904 of this title.
(Added 1987, No. 271 (Adj. Sess.), § 13, eff. June 21, 1988.)
§ 514 Annual report
At the time of filing its annual report under section 22 of this title, each company shall also file with the Commission and the Department the following:
(1) a map sufficiently outlining the company’s service territory and describing its existing plant and any extension and replacements planned for commencement or completion within one year from the close of the preceding calendar year or annual period;
(2) a listing of services, the rate charged for each such service as of the date of the filing of the report, a statement of any changes in any such rates from the preceding calendar year or period, and a statement of the revenues derived from each service during such calendar year or annual period;
(3) a statement of significant changes to be implemented during the current calendar year or annual period in the company’s business structure, operating procedures, and services to be offered;
(4) a copy of the company’s access plan, if any, and a description of its access facilities and services and the use thereof during the preceding calendar year or annual period;
(5) a copy of all written consumer complaints and notations regarding oral and telephonic complaints received during the preceding calendar year or annual period; and
(6) a balance sheet, an income statement, a statement of changes in financial condition, and a statement of assets used and useful for the provision of service in Vermont, all as of the close of the preceding calendar year or annual period.
(Added 1987, No. 271 (Adj. Sess.), § 14, eff. June 21, 1988.)
§ 515 Acquisition of control of a company subject to the jurisdiction of the Public Utility Commission
(a) No person, corporation, partnership, or unincorporated association shall acquire ownership of greater than 40 percent of the voting securities in a company as defined in subdivision 501(3) of this title subject to the supervision of the Public Utility Commission without the approval of the Commission after due notice and opportunity for hearing and a finding on its part that such acquisition will not be contrary to the public good.
(b) For the purposes of this section, voting security means any stock or security presently entitling the owner or holder to vote in the direction or management of the affairs of a company or any security issued under or pursuant to any trust, agreement, or arrangement where a trustee or trustees or agent or agents for the owner or holder of such a security are presently entitled to vote in the direction or management of the affairs of a company.
(c) A specified per centum of the outstanding voting securities of such company means such amount of outstanding voting securities of such company as entitles the holder or holders thereof to cast said specified per centum of the aggregate votes that the holders of all the outstanding voting securities of such company are entitled to cast in the direction or management of the affairs of such company.
(Added 1987, No. 271 (Adj. Sess.), § 15, eff. June 21, 1988; amended 1999, No. 157 (Adj. Sess.), § 13; 2023, No. 85 (Adj. Sess.), § 388, eff. July 1, 2024.)
§ 516 Modification by the Commission of cable television tariff requirements
(a) The Commission may modify, reduce, or suspend requirements under sections 225 and 226, subsection 227(a), and section 229 of this title if it finds that provisions of federal law have the effect of substantially preventing the Commission from exercising its authority under those sections to investigate or determine if cable television rates are just and reasonable. In exercising its authority under this section, the Commission may adopt such terms and conditions as it finds reasonable and shall ensure that the remaining requirements under this title will afford the public at least as much protection as the applicable regulatory requirements being suspended or reduced.
(b) When exercising its authority under this section, the Commission may act by rule or, after notice and opportunity for hearing, it may act by order. The modifications, reductions, or suspensions may apply to one or more classes of cable television service provider and may apply differently to each class.
(c) Upon petition of the Department, the Commission shall, and upon its own initiative the Commission may, investigate whether it should reimpose any regulatory requirements that it has modified, suspended, or reduced under this section. If the Commission finds, after notice and an opportunity for hearing, and after considering the factors identified in this section, that the public is not sufficiently protected, the Commission may reimpose any regulatory provisions that the Commission deems necessary. Pending any final order, the Commission may reimpose any regulatory requirements on a temporary basis as it determines is just and reasonable. If the federal government allows states to regulate cable television rates, the Commission shall reimpose any regulatory provisions modified, reduced, or suspended pursuant to this section.
(Added 2005, No. 146 (Adj. Sess.), § 1.)
§ 517 Line extensions
(a) A company may enter into agreements under this section with government, nonprofit, or private entities, including projects authorized or affiliated with the Vermont Telecommunications Authority, a municipality or fire district pursuant to 20 V.S.A. § 2601, or a regional aggregation and deployment project, to satisfy cable television line extension requirements.
(b) Upon petition of a company, the Commission shall modify the line extensions that a company would otherwise be required to construct if the company agrees to undertake alternative actions, including the extension of facilities that support alternative technologies for delivering broadband to users. Copies of the petition shall be filed with the Department and the Vermont Telecommunications Authority. The Commission shall approve such alternative methods of satisfying line extension requirements after notice and opportunity for hearing if it finds the petition promotes the general good of the State. In reaching its determination, the Commission shall consider whether the company’s proposal:
(1) is consistent with the activities and initiatives of the Vermont Telecommunications Authority;
(2) is likely to provide broadband access to a greater number of unserved consumers than would the foregone cable television line extension requirements;
(3) supports the expansion of broadband services at prices and service levels comparable to those commonly available throughout the State, but not less than the minimum technical service characteristics required by section 8077 of this title;
(4) provides a fair balancing of the benefits to the public compared to benefits realized by the company; and
(5) the modified line-extension obligations will not unreasonably affect the time at which customers to whom a company would otherwise be obligated to extend cable services will have access to broadband services.
(c) This section shall not apply to line extensions previously identified and planned for construction as of June 9, 2007.
(d) The Commission shall not require a company to overbuild another company, or provide cable television service to locations served by another company or to which another company is required to extend cable television service.
(e) Notwithstanding any other provision of this section, the Commission may require the construction of cable television line extensions when a company receives a bona fide request for service from a reasonable number of verified customers or with reasonable contributions in aid of construction from customers.
(f) Notwithstanding any other provision of this section, the line extension construction obligation for additional miles identified in Paragraph 41 of Comcast Communication’s certificate of public good, granted by the Public Utility Commission, of September 27, 2006, may be modified only with the approval of the Commission.
(Added 2007, No. 79, § 5a, eff. June 9, 2007.)
§ 518 Retransmission fees; reporting
(a) Purpose. The purpose of this section is to provide the Attorney General with information necessary to investigate certain conduct within the cable and broadcast network industries to determine whether unfair methods of competition are occurring in violation of 9 V.S.A. chapter 63.
(b) Reporting. Annually, beginning on January 1, 2015, each commercial broadcasting station doing business with a Vermont cable company shall report to the Attorney General any fees charged for program content retransmitted on the cable network under a retransmission consent agreement entered into pursuant to 47 U.S.C. § 325, for the prior calendar year.
(c) Investigations. The Attorney General may investigate retransmission fees charged by commercial broadcasting stations, pursuant to his or her investigatory powers established under 9 V.S.A. chapter 63.
(d) Public disclosure. The information received by the Attorney General under subsection (b) of this section shall be kept confidential and is exempt from public inspection and copying under the Public Records Act, unless otherwise ordered by a court.
(e) Enforcement. A violation of this section constitutes unfair competition under 9 V.S.A. § 2453.
(f) Rules. The Attorney General may adopt rules he or she deems necessary to implement this section. The rules, as well as any finding of unfair competition with regard to retransmission consent fees, shall not be inconsistent with the rules, regulations, and decisions of the Federal Communications Commission and the federal courts interpreting the Communications Act of 1934, as amended.
(Added 2013, No. 190 (Adj. Sess.), § 29, eff. June 16, 2014; amended 2015, No. 41, § 15, eff. June 1, 2015.)
Chapter 14 Municipal Utility Acquisition of Facilities and Other Assets
§ 601 Definitions
(a) The following words as used in this chapter shall, unless the context otherwise requires, have the meanings provided in subsection (b) of this section.
(b)(1) “New England power pool agreement,” a contractual agreement between electric utilities that is open to all electric utilities, whether private or governmental, operating in New England, that provides for cooperation and joint participation in developing and implementing a regional bulk power supply of electricity, that constitutes the central dispatching and primary pooling arrangement for electric utilities in the New England states, and that has been permitted to become effective under the Federal Power Act by the Federal Power Commission or the Federal Energy Regulatory Commission.
(2) “New England power pool,” is the relationship or organization created by the New England power pool agreement.
(Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 2023, No. 85 (Adj. Sess.), § 389, eff. July 1, 2024.)
§ 602 Authorization
The City of Burlington and the Village of Lyndonville acting through its board of trustees are, and each municipality singly is, hereby authorized to enter into a New England power pool agreement and to participate within and outside the State of Vermont in the New England power pool created thereby. Any action taken by the City or such board of trustees in connection with entering into or participating in such pool prior to March 25, 1974, shall be deemed to be as effective as if this chapter had then been in effect.
(Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 275 (Adj. Sess.), § 17, eff. April 12, 1978; 1977, No. 278 (Adj. Sess.), § 1, eff. Feb. 9, 1978.)
§ 603 NEPOOL agreement
The New England power pool agreement may provide for, among other things:
(1) the pooling of power;
(2) coordination of planning, construction, and operation and the manner of establishing and enforcing standards and other requirements;
(3) delegation of authority to administrative committees;
(4) amendments of the agreement by vote or other action of the participants or of committees in the manner specified therein, subject to the right of any participant to withdraw in the event of its nonconcurrence with an amendment;
(5) appointment of representatives to act for one or more participants in regard to amendments and other matters;
(6) the allocation of pool expenses among participants;
(7) the provision of new, altered, improved, or enlarged facilities by the participants subject to such proceedings as may be required by law for undertaking or financing any such project;
(8) limitations on other actions by the participants that might be inconsistent with the agreement or might adversely affect its implementation;
(9) arbitration; and
(10) other matters deemed necessary or desirable in order to carry out the purpose of the agreement.
(Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974.)
§ 604 Additional authority
(a) Notwithstanding any contrary provision of any general or special law relating to the powers and authorities of electric utilities or any limitation imposed by their charters, the City of Burlington, the Village of Lyndonville acting through its board of trustees, and all other Vermont municipal electric utilities, shall each have the following additional powers:
(1) jointly or separately to plan, finance, construct, purchase, operate, maintain, use, share costs of, own, mortgage, lease, sell, dispose of, or otherwise participate in electric power generating and transmission facilities or portions of it within or outside the State or the product or service of it or securities issued in connection with the financing of such facilities or portions of it;
(2) to enter into and perform contracts for such joint or separate planning, financing, construction, purchase, operation, maintenance, use, sharing costs of, ownership, mortgaging, leasing, sale, disposal of, or other participation in electric power generating and transmission facilities, or portions of it, within or outside the State of the product or service of it, or securities issued in connection with the financing of electric power facilities or portions of it, including, contracts for the payment of obligations imposed without regard to the operational status of a facility or facilities and contracts for the sale or purchase of electricity from an electric power facility or facilities for long or short periods of time or for the life of a specific electric generating unit or units.
(b) Other electric utilities, whether cooperative, municipal, or privately owned, may enter into and perform contracts with the City of Burlington and all other Vermont municipal electric utilities for the purposes of this section. The provisions of this chapter shall not otherwise affect the jurisdiction of the Public Utility Commission regarding the activities of the Burlington electric light department and of the Village of Lyndonville electric light department, or any municipal utility formed within the State of Vermont.
(c) Cooperative and municipal electric utilities, in accordance with chapter 83 of this title, and other electric utilities may enter into and perform contracts with the City of Burlington, the Village of Lyndonville, and all other Vermont municipal electric utilities for the purposes of this section.
(d) The Town of Rockingham shall have the authority, if duly authorized by its voters in accordance with the procedures set forth in chapter 79 of this title for the formation of a municipal utility, whether such vote or authorization occurs before or after June 8, 2004 and after obtaining a certificate of public good pursuant to section 248 of this title, to acquire, own, and operate the hydroelectric generating facilities located at Bellows Falls, Vermont, notwithstanding the fact the output of such facilities may exceed the electric needs of the Town and its municipal utility, and to sell that portion of the output of such facilities that exceeds the needs of the Town in serving its own municipal utility and such municipal utility’s own customers. The Town shall not have the authority to acquire the hydroelectric generating facilities located at Bellows Falls, Vermont by eminent domain for a period of 10 years commencing on January 1, 2005. In selling any of the output of such generating facilities, the Town of Rockingham shall not have the authority to seek or obtain treatment as a “qualifying facility” under 18 C.F.R. § 292.201-207 or subdivision 209(a)(8) of this title, and Rockingham shall not have the authority to own or operate such facilities or a portion of such facilities if such facilities otherwise obtain treatment as a “qualifying facility.”
(e) A municipality owning a municipal plant and conducting itself as a utility under chapter 79 of this title shall have the authority to acquire equity ownership of Vermont Transco LLC or Vermont Electric Power Company, or both, and to finance the acquisition of equity ownership by any means permitted under 24 V.S.A. subchapters 1 and 2 or municipal charter. The terms under which equity ownership is acquired pursuant to this subsection shall not include any provision of guaranty, assessment, indemnification, or joint and several liability applicable to any such municipality.
(Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 275 (Adj. Sess.), § 18, eff. April 12, 1978; 1977, No. 278 (Adj. Sess.), § 2, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 95, eff. June 8, 2004; 2007, No. 83 (Adj. Sess.), § 1, eff. Jan. 28, 2008; 2023, No. 85 (Adj. Sess.), § 390, eff. July 1, 2024.)
§ 605 Contracts
Contracts under section 604 of this chapter may be for a term or for an indefinite period; may provide for the sale or other disposition of byproducts of electric power facilities; and may contain provisions for arbitration, delegation, and other matters deemed necessary or desirable to carry out their purposes. Any party, public or private, desiring to purchase or use byproducts of electric power facilities financed, constructed, or operated under this chapter may enter into contracts for short or long terms. The obligation of the city, village, and town under contracts referred to in this section shall not be included in the debt of the city, village, and town for the purpose of ascertaining its borrowing capacity.
(Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 278 (Adj. Sess.), § 3, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 96, eff. June 8, 2004; 2023, No. 85 (Adj. Sess.), § 391, eff. July 1, 2024.)
§ 606 Tenancy in common
If the City of Burlington, the Village of Lyndonville, or the Town of Rockingham acquires or owns an interest as a tenant in common with one or more other electric utilities in any electric power facilities, the surrender or waiver by any party of its right to partition such property for a period not exceeding the period for which the property is used or useful for electric utility purposes shall not be invalid or unenforceable by reason of the length of such period, or as unduly restricting the alienation of such property.
(Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 278 (Adj. Sess.), § 4, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 96, eff. June 8, 2004.)
§ 607 Consent to application of laws of other states
(a) Legislative consent is hereby given to the application of the laws of other states with respect to taxation, payments in lieu of taxes, and the assessment thereof to the City of Burlington, the Village of Lyndonville, or the Town of Rockingham, to the extent that any such municipality acquires or has an interest in an electric power facility, real or personal, situated outside the State or to the extent it owns or operates electric power facilities outside the State pursuant to authority granted in this chapter.
(b) Legislative consent is hereby given to the application of regulatory and other laws of other states and of the United States to the City of Burlington, the Village of Lyndonville, or the Town of Rockingham to the extent it owns or operates electric power facilities outside the State pursuant to authority granted in this chapter.
(c) Any law, municipal bylaw, or ordinance governing contracts awarded by the City of Burlington or the Village of Lyndonville shall not be applicable by reason of the participation of the City of Burlington or the Village of Lyndonville in electric power facilities pursuant to the authority granted in this chapter wherever the City of Burlington or the Village of Lyndonville is not the lead participant.
(Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 278 (Adj. Sess.), § 5, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 96, eff. June 8, 2004.)
§ 608 Bonding authority — City of Burlington
(a) The City of Burlington, when authorized by a two-thirds vote of all voters present and voting at a meeting called for that purpose, may pledge its credit by issuing the negotiable orders, warrants, notes, or bonds for project costs, or its share of project costs, of electric power facilities authorized pursuant to section 604 of this chapter. Such project costs may include all costs, whether incurred prior to or after the issue of bonds or notes, of acquisition, site development, construction, improvement, enlargement, reconstruction, alteration, machinery, equipment, furnishings, nuclear fuel, demolition or removal of existing buildings or structures, including the cost of acquiring any lands to which such buildings or structures may be moved, financing charges, interest prior to and during the carrying out of any project and for a reasonable period thereafter, planning, engineering, financial advisory and legal services, administrative expenses, prepayments under contracts made pursuant to section 604 of this chapter, the funding of notes issued for project costs as provided, and all other expenses incidental to the determination of the feasibility of any project or to carrying out the project or to placing the project in operation.
(b) The obligations shall be issued in accordance with the charter of the City of Burlington. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the City.
(c) The March 6, 1973 vote of the voters of the City of Burlington authorizing and empowering the Burlington City Council to pledge the credit of the City by issuing general obligation bonds or notes in an amount not to exceed $6,000,000.00 for the purpose of acquiring joint ownership interests in four nuclear power plants presently designated as the Connecticut 1979 Nuclear Unit, Pilgrim No. 2, and Seabrook Units No. 1 and No. 2, to be constructed and located in the states of Connecticut, Massachusetts, and New Hampshire is hereby ratified, adopted, and validated in all respects. In addition, any authorized action taken during the calendar year that commenced January 1, 1974 shall be valid and effective as if this chapter were in effect on January 1, 1974.
(Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 2023, No. 85 (Adj. Sess.), § 392, eff. July 1, 2024.)
§ 609 Village of Lyndonville
(a) The Village of Lyndonville, when authorized as provided in 24 V.S.A. chapter 53, may pledge its credit by issuing its negotiable orders, warrants, notes, or bonds for project costs, or its share of project costs, of electric power facilities authorized pursuant to section 604 of this title. The project costs may include all costs, whether incurred prior to or after the issue of bonds or notes of acquisition, site development, construction, improvement, enlargement, reconstruction, alteration, machinery, equipment, furnishings, nuclear fuel, demolition or removal of existing buildings or structures, including the cost of acquiring any lands to which such buildings or structures may be moved, financing charges, interest prior to and during the carrying out of any project and for a reasonable period thereafter, planning, engineering, financial advisory and legal services, administrative expenses, prepayments under contracts made pursuant to section 604 of this title, the funding of notes issued for project costs as provided in this section, and all other expenses incidental to the determination of the feasibility of any project or to carrying out the project or to placing the project in operation.
(b) The obligations shall be issued in accordance with 24 V.S.A. chapter 53 and the charter of the Village of Lyndonville relating to said obligations. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the Village.
(c) The May 3, 1977 vote of the voters of the Village of Lyndonville authorizing and empowering the Village of Lyndonville Board of Trustees to pledge the credit of the Village by issuing general obligation bonds or notes in an amount not to exceed $3,800,000.00 for the purpose of acquiring joint ownership interests in four power plants presently designated as the Connecticut 1979 Nuclear Unit, Pilgrim No. 2, and Wyman Unit No. 4 and MMWEC Phase I Intermediate Units and located in the states of Connecticut, Maine, and Massachusetts is hereby ratified, adopted, and validated in all respects. In addition, any action authorized and taken during the calendar year that commenced January 1, 1977 shall be valid and effective as if this chapter were in effect on January 1, 1977.
(Added 1977, No. 278 (Adj. Sess.), § 6, eff. Feb. 9, 1978; amended 2023, No. 85 (Adj. Sess.), § 393, eff. July 1, 2024.)
§ 610 Bonding authority — Town of Rockingham
(a) The Town of Rockingham, when authorized as provided in 24 V.S.A. chapter 53, may pledge its credit by issuing its negotiable orders, warrants, notes, or bonds for project costs, or its share of project costs, of electric power facilities authorized pursuant to subsection 604(d) of this title. Such project costs may include all costs, whether incurred prior to or after the issue of bonds or notes relating to the acquisition of facilities under this chapter, of acquisition, site development, construction, improvement, enlargement, reconstruction, alteration, machinery, equipment, furnishings, demolition or removal of existing buildings or structures, including the cost of acquiring any lands to which such buildings or structures may be moved, financing charges, interest prior to and during the carrying out of any project and for a reasonable period thereafter, planning, engineering, financial advisory and legal services, administrative expenses, prepayments under contracts made pursuant to section 604 of this title, the funding of notes issued for project costs, and all other expenses incidental to the determination of the feasibility of any project, or to carrying out the project, or to placing the project in operation.
(b) The obligations shall be issued in accordance with 24 V.S.A. chapter 53. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the Town.
(c) The bonding authority of the Town of Rockingham set forth by this section shall be subject to the following:
(1) The Town of Rockingham shall not incur indebtedness in order to support the acquisition of the hydroelectric facility specified in subsection 604(d) of this title except in the form of bonds issued under 24 V.S.A. chapter 53, subchapter 2, payable solely from the net revenues from that hydroelectric facility, nor shall the Town have the authority to use the Vermont Municipal Bond Bank to assist with the Town’s acquisition of that hydroelectric facility; provided, however, the foregoing limitations shall not restrict the Town from using whatever financing options, or combinations of financing options, otherwise legally available to it for purposes of acquiring, repairing, improving, or maintaining any other parts of a municipal plant as defined in chapter 79 of this title, or for purposes of repairing, improving, or maintaining the hydroelectric facility after the Town owns the hydroelectric facility.
(2) Revenue bonds issued for purposes of the Town’s acquisition of the hydroelectric facility shall not be deemed to constitute a debt or liability or obligation of the Town, the State, or of any political subdivision of it, nor shall those revenue bonds be deemed to constitute a pledge of the faith and credit of the Town, the State, or of any political subdivision, but shall be payable solely from the revenues from the hydroelectric facility. Any revenue bond issued by the Town to support the Town’s acquisition of the hydroelectric facility shall contain on its face a statement to the effect the Town shall not be obligated to pay the same nor the interest on it, except from the revenues or assets pledged for those purposes, and neither the faith and credit nor the taxing power of the Town, the State, or of any political subdivision of it is pledged to the payment of the principal of or the interest on such obligations.
(3) The State does hereby pledge to agree with the holders of the notes and bonds issued under this section that the State will not limit or restrict the rights hereby vested in the Town to perform its obligations and to fulfill the terms of any agreement made with the holders of its bonds or notes. Neither will the State in any way impair the rights and remedies of the holders until the notes and bonds, together with interest on them, and interest on any unpaid installments of interest, are fully met, paid, and discharged. The Town is authorized to execute this pledge and agreement of the State in any agreement with the holders of the notes or bonds.
(Added 2003, No. 121 (Adj. Sess.), § 97, eff. June 8, 2004.)
§ 610a Authorization of indebtedness
(a) A municipality owning and operating a municipal plant and conducting itself as a utility pursuant to chapter 79 of this title, when authorized as provided in 24 V.S.A. chapter 53, subchapters 1 and 2 or municipal charter, may pledge its credit or the net revenues of its municipal plant by issuing negotiable orders, warrants, notes, or bonds for the acquisition of equity ownership in Vermont Transco LLC or Vermont Electric Power Company or both pursuant to subsection 604(e) of this title. In addition, an acquisition of equity ownership may be effected through any instrument permitted under 24 V.S.A. § 1789. Acquisition costs may include all costs, whether incurred prior to or after the issue of bonds or notes relating to the acquisition of equity ownership under this chapter. Acquisition of equity ownership is an improvement as defined in 24 V.S.A. § 1751(3).
(b) The obligations shall be issued in accordance with 24 V.S.A. chapter 53 or municipal charter. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the municipality.
(c) Any contract entered into and any debt obligation issued under this section for any purpose pursuant to this chapter shall have been issued for an essential government purpose and shall not be deemed to be a pledge of private credit for public benefit nor a delegation of municipal authority, responsibility, or discretion.
(Added 2007, No. 83 (Adj. Sess.), § 1, eff. Jan. 28, 2008.)
§ 611 Liability of the State; immunity
No provision of this chapter shall constitute a waiver of sovereign immunity of the State. The State of Vermont shall not be liable for injury to persons or property or loss of life caused by the negligent or wrongful act or omission of the Town of Rockingham or any of the Town’s agents or employees in the maintenance or operation of the hydroelectric facilities specified in subsection 604(d) of this title.
(Added 2003, No. 121 (Adj. Sess.), § 98, eff. June 8, 2004.)
Chapter 31 General Provisions [Recodified]
§§ 701-711 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
Chapter 33 Powers and Duties of Board Relating to Railroads
§§ 801-807 Recodified. 1995, No. 60, § 37, eff. April 25, 1995.
§§ 808-810 Repealed
[Repealed]
1995, No. 60, § 38, eff. April 25, 1995.
§ 811 Recodified. 1995, No. 60, § 37, eff. April 25, 1995.
Chapter 35 Incorporation Under General Law
§§ 901-917 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67(6).
§ 918 Recodified. 1995, No. 60, § 37, eff. April 25, 1995.
Chapter 37 Organization of Railroad Company
§§ 1001-1036 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67(7).
Chapter 39 Consolidation and Merger
§§ 1101-1108 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67(8).
§ 1109 Recodified. 1995, No. 60, § 37, eff. April 25, 1995.
Chapter 41 Change of Name
§§ 1151-1155 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67(9).
Chapter 43 Trustees and Receivers; Foreclosure
§§ 1201-1248 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67(10).
Chapter 45 Construction and Operation of the Road
§§ 1301-1303 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§ 1304 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67(11).
§§ 1305-1330 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§§ 1361-1387 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§§ 1431-1438 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§§ 1471-1482 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§ 1501 Recodified. 1995, No. 60, § 37, eff. April 25, 1995.
§ 1521 Repealed
[Repealed]
1989, No. 246 (Adj. Sess.), § 28.
§§ 1522-1524 Repealed
[Repealed]
1989, No. 246 (Adj. Sess.), § 28, and 1993, No. 172 (Adj. Sess.), § 67.
§§ 1525-1527 Repealed
[Repealed]
1995, No. 60, § 38, eff. April 25, 1995.
§§ 1528-1535 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67.
§§ 1536-1539 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§ 1571 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67(23).
§§ 1572-1578 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§ 1579 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67(24).
§ 1621 Recodified. 1995, No. 60, § 37, eff. April 25, 1995.
§§ 1622-1628 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67.
§§ 1629, 1630 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§ 1631 Repealed
[Repealed]
1959, No. 262, § 37, eff. June 11, 1959.
§§ 1632-1636 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§ 1637 Repealed
[Repealed]
1959, No. 262, § 37, eff. June 11, 1959.
§§ 1638-1643 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§§ 1644-1648 Repealed
[Repealed]
1981, No. 104, § 4.
§§ 1649, 1650 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§ 1651 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67(31).
§§ 1701-1709 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
Chapter 47 Railroad Rates
§§ 1801-1813 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67(32).
Chapter 49 Grade Crossings
§§ 1901, 1902 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
§§ 1903-1905 Repealed
[Repealed]
1961, No. 267, § 7, eff. Aug. 1, 1961.
§ 1906 Recodified. 1995, No. 60, § 37, eff. April 25, 1995.
§ 1907 Repealed
[Repealed]
1961, No. 267, § 7, eff. Aug. 1, 1961.
§§ 1908-1912 Recodified. 1995, No. 60, § 37, eff. April 25, 1995. [Repealed]
Chapter 50 State Acquisition of Railroads
§§ 1951-1953 Repealed
[Repealed]
1987, No. 211 (Adj. Sess.), § 2, eff. May 26, 1988.
Chapter 71 Telecommunications and Electric Wires and Poles Along Highways, Railroad Tracks, and Cemeteries; Transportation Board and Selectboard Role
§ 2501 Town; duties of certain officers
As used in this chapter, the word “town” includes an incorporated village or city, and the words “telegraph, telephone, and electric lines or wires” include wires or cables used in conjunction with a cable television system as defined in section 501 of this title. Where powers are given to or duties imposed upon the selectboard with reference to a town, the aldermen of a city, or the trustees of a village shall have the same powers and perform like duties in relation to their respective city or village. The powers given or duties imposed by this chapter upon the selectboard shall be exercised and performed by the Agency of Transportation in relation to State highways, except those of a regulatory or quasi-judicial nature, which shall be exercised and performed by the Transportation Board.
(Amended 1969, No. 167 (Adj. Sess.), § 2, eff. Feb. 10, 1970; 1989, No. 246 (Adj. Sess.), § 30.)
§ 2502 Lines of wires along highways; wireless telecommunications facilities; broadband facilities construction; restriction
Lines of telegraph, telephone, and electric wires, as well as two-way wireless telecommunications facilities and broadband facilities, may, subject to the provisions of 19 V.S.A. § 1111, be constructed and maintained by a person or corporation upon or under a highway, in such manner as not to interfere with repairs of such highway or the public convenience in traveling upon or using the same.
(Amended 1991, No. 175 (Adj. Sess.), § 13, eff. May 15, 1992; 1995, No. 168 (Adj. Sess.), § 3; 2007, No. 79, § 9, eff. June 9, 2007.)
§ 2503 Location by Transportation Board or selectboard; notice
When it is inconvenient or inexpedient to erect such wires, agreeably to section 2502 of this title, the Transportation Board, after soliciting the advice of the Agency of Transportation, or the selectboard of the town shall determine upon application where and in what manner such wires shall be erected, giving notice to parties interested or their agents, and shall certify their decision and cause the same to be recorded in the town clerk’s office, and such decision shall be final.
(Amended 1989, No. 246 (Adj. Sess.) § 31.)
§ 2504 Transportation Board or selectboard may direct and change manner of crossing highway
The Transportation Board or the selectboard of a town may direct a line of wires to be placed at a greater height or underground where it crosses a street or highway. If a line of wires is erected or maintained upon, under, or across a street or highway, contrary to the direction of the Transportation Board or the selectboard, or is not changed when directed by them, they may remove such line, and recover the expense thereof from the person or corporation using the same in an action on this statute.
(Amended 1989, No. 246 (Adj. Sess.), § 31.)
§ 2505 Location near residence
When a person objects to the erection of a line of wires along a street or highway in front of his or her residence, he or she may apply to the Transportation Board or the selectboard of the town, who, upon notice and hearing, as provided in section 2503 of this title, shall determine upon what streets or highways the same shall pass, or in what manner, if at all, such objection may be obviated. Such decision shall be final.
(Amended 1989, No. 246 (Adj. Sess.), § 31.)
§ 2506 Trees not to be injured; exception; penalty
A tree within a street or highway shall not be cut or injured in constructing, maintaining, or repairing a line of wires, without the written consent of the adjoining owner or occupant, unless the Transportation Board or the selectboard of the town in which the tree is situated, after due notice to the parties and upon hearing, shall decide that such cutting or injury is necessary. A person or corporation cutting or injuring such trees shall pay the damages, if any, awarded on such hearing, before cutting or injuring the trees. A person or corporation that violates a provision of this section shall be fined not more than $50.00 nor less than $5.00 for each tree so cut or injured.
(Amended 1989, No. 246 (Adj. Sess.), § 31.)
§ 2507 Poles
A person or corporation owning or operating a line of wires in a city or village shall cause the poles upon which the wires are strung to be kept suitably painted, to the satisfaction of the aldermen of such city or the trustees of such village, if incorporated, and, if unincorporated, to the satisfaction of the Transportation Board or the selectboard of the town in which such village is situated, and shall substitute straight poles in place of crooked ones.
(Amended 1989, No. 246 (Adj. Sess.), § 31.)
§ 2508 Penalty
A person or corporation that neglects or refuses, after 20 days’ notice in writing given by the Transportation Board, a selectboard member, alderman, or trustee, to paint such poles or substitute straight poles for crooked ones, as provided in section 2507 of this title, shall forfeit $100.00 to the State, town, city, or village, to be recovered in an action on this statute.
(Amended 1989, No. 246 (Adj. Sess.), § 31.)
§ 2509 Selectboard’s powers; expense
The Agency of Transportation, selectboard, aldermen, or trustees may cause such poles to be painted, and may substitute straight poles in place of crooked ones, and may recover the expense thereof in an action on this statute, in the name of the State or of such town, city, or village against the person or corporation owning or operating such wires or line of wires.
(Amended 1989, No. 246 (Adj. Sess.), § 31.)
§ 2510 Cemeteries
The owner or operator of a line of wires shall maintain straight and painted poles upon which such wires are strung, whenever the same pass in front of or along a cemetery, to the satisfaction of the cemetery trustees, or the Transportation Board, or the selectboard of the town, aldermen of the city, or trustees of the village in which such cemetery is located if there are no trustees of such cemetery, and such operator or owner shall substitute straight poles in place of crooked ones. The provisions of sections 2508 and 2509 of this title as to notice, penalty, and procedure, shall apply to and be deemed a part of this section.
(Amended 1989, No. 246 (Adj. Sess.), § 31.)
§ 2511 Damages; appraisal; payment
When, in the erection of a line of wires, the owner or occupant of lands or tenements sustains or is likely to sustain damages thereby, the Transportation Board or the selectboard of the town, upon notice to parties interested, shall appraise such damages. The same shall be paid before the line is erected, unless petition is made to the Superior Court on the question of damages as provided in section 2512 of this title.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1989, No. 246 (Adj. Sess.), § 31.)
§ 2512 Appeal; proceedings
When either party is dissatisfied with such appraisal of damages, the party may apply to the Superior Court by petition in the same manner as is provided for a person dissatisfied with the compensation for damages for the laying out or altering of highway, and similar proceedings shall be had. The line shall not be erected until such cause is finally decided, unless the party erecting the same files with the clerk of the court to which such application is made, before the line is erected, a bond to the other party, with sureties approved by such clerk, conditioned for the payment of such damages and costs as may finally be awarded.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2023, No. 85 (Adj. Sess.), § 394, eff. July 1, 2024.)
§ 2513 Lines along railroad tracks; wireless and other telecommunications facilities
(a) A company subject to the jurisdiction of the Public Utility Commission may erect and maintain its telecommunications or electric transmission and distribution lines and facilities along the sides of railroad tracks within the limits of lands owned or held by a railroad on paying reasonable compensation to the railroad. If they cannot agree upon the amount of reasonable compensation, it shall be determined by the Transportation Board which shall ascertain the compensation.
(b) Wireless telecommunications and broadband facilities may be erected and maintained within the limits of lands owned or held by a railroad in the same manner as other utility facilities.
(c) For purposes of this section, “broadband” shall have the same definition as in the rules adopted by the Public Utility Commission for purposes of attachment to utility poles.
(Amended 1995, No. 168 (Adj. Sess.), § 4; amended 1997, No. 144 (Adj. Sess.), § 26; 2007, No. 79, § 7, eff. June 9, 2007.)
§ 2514 Line to remain property of company
A line erected as authorized in section 2513 of this title shall remain the property of such telegraph, telephone, or electric light company, and shall not pass by sale, transfer, or mortgage made by the railroad corporation, of the lands upon which the line is erected, nor shall the line be liable to attachment or levy of execution against such railroad corporation.
§ 2515 Erecting new lines
When a person or corporation is about to erect a line of telegraph or telephone wires, in and along a highway within a town, in and along which a line of poles has already been erected by another person or corporation for a similar purpose, the Transportation Board or selectboard of such town shall have the right to permit and may require the new line to be attached to the poles already standing, as provided in section 2516 of this title.
(Amended 1989, No. 246 (Adj. Sess.), § 32.)
§ 2516 Expenses; repairs
The Transportation Board or selectboard shall ascertain, as near as may be, the original cost of erecting such line of poles, and shall direct such person or corporation as they may require to use such poles, to pay the owners of the line already erected a fair proportion of such expense, not to exceed one-half the estimated original cost of construction. In no case shall the poles be used until the owners of the new line tender to the original owners of such line of poles the amount so directed. When it is necessary to repair or renew the poles used by two or more persons or corporations, the expense thereof shall be borne equally by the parties using the same.
(Amended 1989, No. 246 (Adj. Sess.), § 32.)
§ 2517 Notice; copy
The Transportation Board or selectboard shall give written notice to the proprietors of both the old and new lines of all their requirements in the premises, and shall also lodge a copy of the notice in the town clerk’s office, and its decision shall be final.
(Amended 1989, No. 246 (Adj. Sess.), § 32.)
§ 2518 Restriction of right to move poles; action
The proprietors of a line of poles so required to be used by another person or corporation shall not take down or alter the position of such poles without obtaining permission of all parties who may have acquired a right to use the same, or the permission of the Transportation Board or selectboard. A person or corporation injured by a violation of this section may recover the amount of the injury in an action on this statute.
(Amended 1989, No. 246 (Adj. Sess.), § 32.)
§ 2519 No prescriptive rights
Enjoyment of any length of time of the privilege of maintaining a line of telegraph, telephone, or electric wires, poles, conduits, or other apparatus upon or over the buildings or lands of other persons shall not give a right to the continued enjoyment of such easement or raise a presumption of a grant thereof.
§ 2520 Town lines
For their own use, towns may construct telegraph, telephone, and electric lines upon and along the highways and public roads within their limits, subject to the provisions of this chapter so far as the same are applicable.
§ 2521 Private lines
The Transportation Board or selectboard may authorize persons, upon such terms as it prescribes and subject to the provisions of this chapter so far as applicable, to construct for private use such lines along the highways of the town.
(Amended 1989, No. 246 (Adj. Sess.), § 33.)
§ 2522 Transportation Board or selectboard’s control; town’s rights
After the erection of such line, the posts and structures thereof within the highways shall be subject to the regulation and control of the Transportation Board or selectboard, which may at any time require alterations in the location or erection of such poles and structures and may order the removal thereof, having first given the parties notice and an opportunity to be heard. The town may attach wires for its own use to such posts and structures under such terms and conditions as it deems just.
(Amended 1989, No. 246 (Adj. Sess.), § 33.)
§ 2523 Court may permit line to be attached to standing poles
Persons desiring to attach a telephone line to poles of a telegraph company may petition the Superior Court of the county in which such line of poles or part thereof is situated, for permission so to do. The court shall appoint three disinterested persons commissioners to make examination and determine whether the request of the petitioner can be granted without injury to the company owning the poles. If, in their judgment, such permission ought to be given, the commissioners shall so report to the court, and state what, in their opinion, would be a fair annual compensation to be paid for such privilege. The court shall render such judgment thereon as it deems just, or for cause shown may reject the report and appoint new commissioners to reexamine and report.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 2524 Court may enforce order
When, in such cause, it is finally adjudged that the petitioner may attach his or her line to the poles of the telegraph company, if such company hinders or obstructs such use, the compensation decreed to it having been paid or tendered, the court may proceed against it for contempt.
§ 2525 Attachment of wires
Telephone wires attached to poles of a telegraph company under the provisions of sections 2523 and 2524 of this title shall be attached and maintained so as not to interfere with the wires already thereon.
§ 2526 Fees of certain officers
When the selectboard members or other officers are called upon to act under the provisions of this chapter, each shall receive his or her necessary expenses and $2.00 a day, to be paid by the party erecting the line of wires or other appurtenances or apparatus.
§ 2527 Penalties; injuries to trees
A person or corporation maintaining or operating a line of wires, that cuts down, mutilates, or injures the trees standing upon the lands of another, or a person or corporation that affixes or causes to be affixed to the property of another, a post, structure, fixture, wire, or other apparatus for telephonic, telegraphic, or other electrical communication, without first procuring the right to do so by application to and determination of the Transportation Board or the selectboard of the town, agreeably to this chapter, or first obtaining the consent of the owner or lawful agent of the owner of such property, shall be fined not more than $100.00.
(Amended 1989, No. 246 (Adj. Sess.), § 34.)
§ 2528 Injuries to line
A person who willfully or intentionally injures a wire, post, or other fixture erected or maintained in pursuance of this chapter, or who willfully interferes with the working of the same, or who aids or assists in such offense, shall forfeit to the owner $100.00 to be recovered in an action on this statute and may also be imprisoned not more than five years or fined not more than $500.00, or both.
(Amended 1981, No. 223 (Adj. Sess.), § 23.)
§ 2529 Loitering upon telephone property; penalty
A person who without right loiters or remains in a telephone central office, a public telephone pay station, or the approaches to it, after being requested to leave by a railroad police officer, sheriff, deputy sheriff, constable, or police officer shall be fined not more than $20.00 nor less than $2.00.
(Amended 2023, No. 85 (Adj. Sess.), § 395, eff. July 1, 2024.)
§ 2530 Telephones in public areas
The selectboard of a town, or the Agency of Transportation in the case of State highways, may, upon written application and after notice to adjacent landowners, permit the construction, erection, and maintenance of public telephones, telephone booths, and appurtenances to them within the limits of public highways, sidewalks, parks, and parking areas when consistent with the public interest under reasonable rules, regulations, and arrangements as it may prescribe.
(1961, No. 55, eff. April 4, 1961; amended 1989, No. 246 (Adj. Sess.), § 35; 2023, No. 85 (Adj. Sess.), § 396, eff. July 1, 2024.)
Chapter 73 Provisions Applicable to Express and Telegraph Companies
§ 2601 Names of members; filing and record
Every foreign express or telegraph company shall keep on file and have recorded in the town clerk’s office in each town where such express or telegraph company has a place of business a statement of the names and residences of the persons constituting such express or telegraph company.
§ 2602 Charges restricted to tariff rate; excess recoverable
A telegraph or express company shall be restricted in its charges to the tariff of rates filed as provided by law. When a greater sum than its established rates is paid, the person paying the same may recover the amount so paid above such rates, with 12 percent interest thereon from the time of payment, with full costs, in an action on this statute.
§ 2603 Lien on goods restricted
An express company shall not have a lien on goods or property transported by it, after the payment or tender of the amount embraced in the tariff of rates.
§ 2604 Noncompliance; effect
An express or telegraph company shall not make contracts within the State, or enforce in the State contracts made out of it, unless such company has complied with the provisions of sections 2601-2603 of this title.
Chapter 75 Interchange of Service Between Telegraph and Telephone Companies
§ 2701 Transfer of messages and interchange of service
Whenever the Commission, after a hearing had upon its own motion or upon complaint, finds that a physical connection can reasonably be made between the lines of two or more telephone companies or two or more telegraph companies whose lines can be made to form a continuous line of communication, by the construction and maintenance of suitable connections, for the transfer of messages or conversations, and that public convenience and necessity will be subserved thereby, or finds that two or more telegraph or telephone companies have failed to establish joint rates, tolls, or charges for service by or over their lines, and that joint rates, tolls, or charges ought to be established, the Commission may, by its order, (a) require that the connection be made, except where the purpose of the connection is primarily to secure the transmission of local messages or conversations between points within the same city or town, and that conversations be transmitted and messages transferred over the connection under the rules as the Commission may establish, and (b) may prescribe through lines and joint rates, tolls, and charges to be made and to be used, observed, and enforced in the future. If the telephone or telegraph companies do not agree upon the division of the joint rates, tolls, or charges established by the Commission over the through lines, the Commission may, after further hearing, establish the division by supplemental order.
(Amended 1961, No. 180, § 2; 2023, No. 85 (Adj. Sess.), § 397, eff. July 1, 2024.)
§ 2702 Repealed
[Repealed]
1995, No. 99 (Adj. Sess.), § 16(2).
§ 2703 Telephone service
On application of a telegraph or telephone company and upon reasonable terms, a person or corporation owning, controlling, or operating a telephone exchange or service in this State shall furnish such applicant with the use of a telephone or telephones, and telephonic service and connection with the respective exchanges and the subscribers, without discriminating between telegraph or telephone companies as to the connection, service, or use of instruments furnished or charges made.
(Amended 2023, No. 85 (Adj. Sess.), § 398, eff. July 1, 2024.)
§ 2704 Discrimination prohibited
On application of a person or corporation and tender of the charges or rental sum usual or customary for the class of service required, without discrimination for the same class of service rendered, a person or corporation owning, controlling, or operating a telephone exchange or service in this State shall furnish the applicant with the use of a telephone and telephonic service and connection with their respective exchanges and subscribers.
(Amended 1961, No. 180, § 3; 2023, No. 85 (Adj. Sess.), § 399, eff. July 1, 2024.)
§ 2705 Repealed
[Repealed]
1995, No. 99 (Adj. Sess.), § 16(3).
§ 2706 Transmission of telephone messages
A person owning, hiring, or leasing a telephone shall have the right to transmit by telephone to any telegraph company using a telephone, a message to be forwarded by telegraph, and also the right to receive from such telegraph company over such telephone wires, messages received by telegraph for such individual.
Chapter 77 Gas and Electric Companies
§ 2801 General duties; rates; powers of Public Utility Commission
(a) A person, association, company, or corporation engaged in the business of generating in this State electric energy or transmitting in this State electric energy generated from outside the State and distributing it for heating, lighting, or power purposes or for any other public use, if and when requested so to do, at all reasonable times shall sell and distribute the same to any and all persons, companies, associations, cooperatives, and corporations, municipal, public, or private, that desire to use the same within this State for either or any of such purposes. Such sale and distribution shall be subject, however, to such reasonable limitations as to the amount of energy to be furnished a purchaser, and shall in no case be beyond what is reasonably necessary and also as to the distance from the generating plant or from its lines of transmission that such energy shall be delivered, as the Public Utility Commission may determine after hearing had upon due notice thereof given to the parties interested. The charges made by a person, company, or corporation for electric energy so sold and distributed, shall be reasonable. In case the parties do not agree as to the amount of such charges, the Public Utility Commission, upon hearing had after proper notice to both, shall fix and determine the same, and may, upon like notice and hearing, from time to time, change them; and, fixing and determining such charges, the amount sold and the distance from the generating plant or lines of transmission to the place of delivery, and such other conditions as affect the cost of production, transmission, and value shall be considered.
(b) Such charges made by such person, association, company, or corporation for such electric energy shall not include the cost of political activity or political advertising incurred or paid by such person, association, company, or corporation.
(c) For the purposes of this section:
(1) “Activity” means speaking engagements, consultations, and appearances, and all things done or matters performed in preparation for or in connection with such things.
(2) “Political activity” means activity within the definition of “legislative counsel” or “legislative agent” as those terms are defined by 2 V.S.A. § 251, similar activity before or in connection with other political forums and similar or like activities engaged in for the purpose of influencing public opinion with respect to the election or appointment of public officials, referenda, legislation, or ordinances, or for the purpose of influencing the decisions of public officials, but shall not include such expenditures that are directly related to appearances before regulatory or other governmental bodies in connection with the reporting and defending the existing or proposed rates and operations of such person, association, company, or corporation.
(3) “Advertising” means the commercial use of any media including newspaper and all other forms of print, radio, and television, in order to transmit a message to a substantial number of members of the public or customers of a utility.
(4) “Political advertising” means advertising for the purpose of influencing public opinion with respect to any legislative, executive, administrative, or electoral decision.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 180, § 4; 1967, No. 66, § 1; 1977, No. 121 (Adj. Sess.).)
§ 2802 Sale and distribution; regulation
A person, association, company, or corporation, its successors, grantees, lessees, trustees, or receivers by whatever court appointed, that generates electric energy within the State by means of water power, or transmits in this State electric energy generated from outside the State, and that, in the location, construction, or maintenance of its generating plant, including the acquiring of water rights, flowing or ponding rights, within the State or rights-of-way, or in the establishment or maintenance of its lines for transmission of electric energy, confiscates by the exercise of the right of eminent domain, either under the general law, or if a corporation, under the provisions of its charter or general law, or has by the provisions of its charter or general law power so to do, the property of any person or any right, title, interest, easement, or estate, or uses a public highway for carrying its transmission lines over or along the same or beneath the surface thereof, at all reasonable times when requested so to do, shall sell and furnish at a reasonable price so much or such an amount of such electric energy as the public convenience or necessity may require to any and all persons, companies, cooperatives, and corporations, municipal, public or private, in this State, desiring to use the same in the State for heating, lighting, or power purposes or for any other public use or purpose. Such sale and distribution shall be subject to such reasonable conditions and limitations in each case as the Public Utility Commission may prescribe upon petition brought and after due notice to all parties.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 180, § 5; 1967, No. 66, § 2; 2023, No. 85 (Adj. Sess.), § 400, eff. July 1, 2024.)
§ 2803 Procedure; petition; recognizance
When the parties cannot agree, the procedure for carrying out the provisions of sections 2801 and 2802 of this title shall be by petition brought by the person or party seeking to purchase and receive such electric energy against the party generating or transmitting the same to the Public Utility Commission, setting forth the purpose for which the energy is needed, the amount and such other facts as under the provisions of the section relied upon will entitle the petitioner to purchase and receive such electric energy from the petitionee, and praying that the petitionee may be called upon to answer such petition and for relief. The petitioner shall give sufficient security to the petitionee that he or she will prosecute his or her petition to effect, and pay all costs that may be awarded against him or her.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 180, § 6.)
§ 2804 Citation; service; hearing
The petition, with a citation attached, signed by the Chair or one of the other members of the Commission, or its clerk, shall require the petitionee to appear at a certain time and place within not less than 10 days after the date of the citation. The citation, with the petition, shall be served on the petitionee like a summons, not less than six days before the date the petitionee is required to appear. At the required time and place, the Commission shall hear the parties and their witnesses and any other evidence as they may offer and determine the facts and make an order and decree as the law and justice require, which shall be final unless appealed from. The Commission may adjourn the hearing from time to time and to another place in the county and may adjourn it elsewhere if the parties consent.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1961, No. 180, § 7; 2023, No. 85 (Adj. Sess.), § 401, eff. July 1, 2024.)
§ 2805 Appeal; commissioners; hearing on report
A party to the cause who feels aggrieved by the final order or decree of the Commission shall have the right to take the cause to the Supreme Court. Such appeal shall be taken and the cause entered in the Supreme Court, in the manner and under the law and rules of procedure that govern such appeals from the Superior Court, and the Supreme Court shall have the same power that it has over appeals from the Superior Court. The Supreme Court, if cause is not shown to the contrary, on motion of either party, shall appoint three disinterested freeholders, residents of the county where the appeal is taken, unless otherwise agreed upon by the parties, to be commissioners, who shall appoint a time and place of hearing the matter set forth in the petition and give at least six days’ notice to the parties; and, after hearing the parties, the commissioners shall report in writing the facts found by them and such other findings as the Court may direct. Upon the return of the report, either party may object to its acceptance for good cause shown and the Court may set aside the report and order a rehearing; but if the Court accepts and establishes the same, the Court may reverse or affirm the orders or decrees made by the Public Utility Commission, and may remand the cause to the Commission with such mandate as law and equity require; and the Commission shall enter an order or decree in accordance with such mandate.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 2023, No. 85 (Adj. Sess.), § 402, eff. July 1, 2024.)
§ 2806 Penalty
A person or corporation that violates a provision of sections 2801-2805 of this title shall be fined not more than $5,000.00.
§§ 2807-2810 Repealed
[Repealed]
1969, No. 257 (Adj. Sess.), § 7.
§ 2811 Smart meters; customer rights; reports
(a) Definitions. As used in this section, the following terms shall have the following meanings:
(1) “Smart meter” means a wired smart meter or a wireless smart meter.
(2) “Wired smart meter” means an advanced metering infrastructure device using a fixed wire for two-way communication between the device and an electric company.
(3) “Wireless smart meter” means an advanced metering infrastructure device using radio or other wireless means for two-way communication between the device and an electric company.
(b) Customer rights. Notwithstanding any law, order, or agreement to the contrary, an electric company may install a wireless smart meter on a customer’s premises, provided the company:
(1) provides prior written notice to the customer indicating that the meter will use radio or other wireless means for two-way communication between the meter and the company and informing the customer of his or her rights under subdivisions (2) and (3) of this subsection;
(2) allows a customer to choose not to have a wireless smart meter installed, at no additional monthly or other charge; and
(3) allows a customer to require removal of a previously installed wireless smart meter for any reason and at an agreed-upon time, without incurring any charge for such removal.
(c) Reports. On January 1, 2014 and again on January 1, 2016, the Commissioner of Public Service shall publish a report on the savings realized through the use of smart meters, as well as on the occurrence of any breaches to a company’s cyber-security infrastructure. The reports shall be based on electric company data requested by and provided to the Commissioner of Public Service and shall be in a form and in a manner the Commissioner deems necessary to accomplish the purposes of this subsection. The reports shall be submitted to the Senate Committees on Finance and on Natural Resources and Energy and the House Committees on Commerce and Economic Development and on Energy and Technology.
(d) Health report.
(1) On or before January 15, 2013, the Commissioner of Health and the Commissioner of Public Service shall jointly submit a report to the Senate Committee on Finance and the House Committee on Commerce and Economic Development. The report shall include: an update of the Department of Health’s 2012 report entitled “Radio Frequency Radiation and Health: Smart Meters”; a summary of the Department’s activities monitoring the deployment of wireless smart meters in Vermont, including a representative sample of postdeployment radio frequency level testing; and recommendations relating to evidence-based surveillance on the potential health effects of wireless smart meters.
(2) The Commissioner of Public Service, in consultation with the Commissioner of Health, shall select and retain an independent expert, not an employee of the State, to perform the research and writing of the report identified in subdivision (1) of this subsection. The Commissioner of Public Service may allocate the costs of retaining the independent expert to electric utilities in accordance with sections 20 and 21 of this title (particular proceedings; personnel; assessment of costs).
(Added 2011, No. 170 (Adj. Sess.), § 15, eff. May 18, 2012; amended 2017, No. 113 (Adj. Sess.), § 174a.)
§ 2812 Meter tests on customer’s demand
Upon demand of any of its customers, a public service company that sells gas or electricity shall test without charge the meters used to measure the gas or electricity sold to such customer, provided that the customer does not request such test more frequently than once in 12 months.
§ 2813 Time
Such company shall test every service meter for correct connection and proper mechanical condition in its permanent position at the time of installation or within 60 days thereafter.
§ 2814 Cost; report
When a customer requests a meter test within 12 months after the date of the installation or of the last previous test of his or her meter, he or she may be required by the company to make a deposit equal to the reasonable cost of such test. The amount so deposited with the company shall be refunded or credited to the customer if the meter has a positive average error, that is, is fast, in excess of four percent, otherwise such deposit may be retained by the company. A customer may be present when the company tests his or her meter or may select an expert or other representative to be present. A written report, giving the results of such test, shall be made to the customer by the company.
§ 2815 Inaccurate meters
Such company shall not keep in service a gas or electric service meter that registers upon no load or that has an error in measurement in excess of four percent.
§ 2816 Civil penalty for violation of gas safety standards
(a) Gas pipeline safety program. Any person who violates any statute, rule, regulation, or order of the Public Utility Commission relating to safety standards or safety practices applicable to transportation of gas through gas pipeline facilities subject to the jurisdiction of the Public Utility Commission is subject to a civil penalty of not more than $200,000.00 for each violation for each day that the violation persists. However, the maximum civil penalty shall not exceed $2,000,000.00 for any related series of violations. The penalty may be imposed by the Commission after notice to the offending person of the alleged violations and opportunity for hearing.
(b) Any civil penalty may be compromised by the Public Utility Commission. In determining the amount of the penalty, or the amount agreed upon in compromise, the appropriateness of the penalty to the size of the business of the person charged, the gravity of the violation, and the good faith of the person in attempting to achieve compliance, after notification of a violation, shall be considered. The amount of the penalty, when finally determined, or the amount agreed upon in compromise, may be deducted from any sums owing by the State to the person charged or may be recovered in a civil action based upon this section.
(Added 1969, No. 94; amended 1991, No. 90; 1999, No. 157 (Adj. Sess.), § 14; 2007, No. 145 (Adj. Sess.), § 6; 2013, No. 132 (Adj. Sess.), § 1, eff. May 20, 2014.)
Chapter 79 Municipal Plants
§ 2901 Definitions
In this chapter, unless the context otherwise requires, the following words shall have the following meanings:
(1) “Commission” means the Public Utility Commission of this State.
(2) “Legal voter” means a person qualified to vote under the provisions of 17 V.S.A. § 2121.
(3) “Municipal plant” means any plant or system owned and operated by any municipality for the manufacture, distribution, purchase, and sale of electricity or the manufacture, distribution, purchase, and sale of gas.
(4) “Municipality” means any city, town, or village within this State.
(5) “Utility” means any person or corporation engaged in the manufacture, distribution, and sale of gas and electricity in this State.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 2017, No. 113 (Adj. Sess.), § 175.)
§ 2902 Powers of municipalities
(a) In accordance with this chapter, a municipality may buy and sell electric current for domestic use and for commercial purposes and construct, purchase or lease, and maintain and operate one or more plants for the manufacture, distribution, purchase, and sale of gas or electricity for the use of the municipality and for the use of the residents of the municipality and for the other customers outside the municipality as the Commission may approve unless otherwise provided for in this chapter. For those purposes a municipality may purchase and hold in fee simple or otherwise any real or personal estate and any rights therein, including water rights and may do all other things necessary for carrying into effect the purposes of this chapter and may excavate and dig conduits and ditches in any highway or other land or place, and erect poles, place wires, and lay pipes for the transmission and distribution of electricity and gas, in such places as may be deemed necessary and proper and in all respects such municipality shall have the same privileges and be subject to the same restrictions as are provided for public service corporations in chapters 71, 73, and 75 of this title. The municipality may change, enlarge, and extend the same from time to time and maintain the same, having due regard for the safety and welfare of its citizens and security of the public travel.
(b) The obligations of any municipal electric utility under any contract authorized by this section or other applicable law shall not be deemed to constitute an indebtedness or a lending of credit of the municipal electric utility, nor shall such obligations be included in computing the borrowing capacity of any such municipal electric utility. These obligations of municipal electric utilities shall be treated as expenses of operating their electric plants, and shall constitute special obligations of such municipal electric utilities payable solely from the revenues and other moneys derived by them from their electric departments or systems. The liability of these municipal electric utilities from other funds is limited to obligations undertaken by them to pay for the electric power and energy used by them.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1989, No. 112, § 3a, eff. June 22, 1989; 2023, No. 85 (Adj. Sess.), § 403, eff. July 1, 2024.)
§ 2903 Authorization by voters; cities
(a) A city may acquire or construct a plant:
(1) when proposed by a three-fifths vote of its legislative body, subject to the veto power of the mayor under the provisions of its charter; or
(2) when proposed by a petition signed by 10 percent of the voters of the city; provided that
(3) within one year from the date of the affirmative vote of the legislative body or the date of submission of the petition, three-fifths of the voters present and voting by Australian ballot at a regular, duly warned annual city meeting approve the acquisition or construction of the plant.
(b) At least 20 days before the annual meeting, the legislative body shall hold a public hearing on the issue of acquisition or construction, giving notice of the public hearing in the same manner as it is given for the annual meeting. If the date of the affirmative vote of the legislative body or the date of submission of the petition too closely precedes the date of the annual meeting to permit the question to be duly warned at that meeting or to permit the duly warned public hearing before that meeting, the question may be decided at the next annual meeting without another proposal by the legislative body or by the voters. In case the voters of the city fail to approve the proposal submitted to them, no similar vote shall be taken until the next annual city meeting.
(Amended 1979, No. 183 (Adj. Sess.), § 1.)
§ 2904 Towns and villages
A town or village may acquire or construct a municipal plant, when authorized by three-fifths of the legal voters present and voting by Australian ballot at any annual meeting duly warned. At least 20 days before the annual meeting, the legislative body shall hold a public hearing on the issue of acquisition or construction, giving notice of the public hearing in the same manner as it is given for the annual meeting. In case the voters of the town or village fail to approve the proposal submitted to them, no similar vote shall be taken until the next annual meeting.
(Amended 1979, No. 183 (Adj. Sess.), § 2.)
§ 2905 Indebtedness
A municipality that has voted according to the provisions of this chapter to acquire or construct a municipal plant may incur debt for the purpose of establishing, purchasing, constructing, extending, or enlarging it, but subject to the provisions of law limiting municipal indebtedness. Nothing in this section shall be construed to affect the rights of any municipality now or later incurring debt under 24 V.S.A. § 1822.
(Amended 2023, No. 85 (Adj. Sess.), § 404, eff. July 1, 2024.)
§ 2906 Existing plants
Within 30 days after the passage of the ratifying vote provided for in section 2903 of this chapter or the vote provided for in section 2904 of this chapter, the mayor of the city, the selectboard of the town, or the trustees of the village shall notify in writing any utility engaged, at the time of the vote required by such sections, in generating or distributing gas or electricity for sale in the municipality, of the vote and request the utility whether it elects to sell and at what price, in the manner provided, that portion of its plant and property located within the municipality that is suitable for and used in connection with the business of the utility, and that portion, if any, lying outside such municipality, that the municipality proposes to purchase.
(Amended 2023, No. 85 (Adj. Sess.), § 405, eff. July 1, 2024.)
§ 2907 Utility to accept or reject offer to purchase
The utility shall reply to such request by delivering its answer in writing to the mayor of the city, the selectboard of the town, or the trustees of the village, within 90 days following the receipt of the request. If the reply is in the negative or if the reply is not made within a period of 90 days, the utility waives any right it may have had to require the purchase of its plant and property by the municipality. If the reply is in the affirmative, it shall, within 90 days, submit the price and terms that it is willing to accept for all such plant and property, together with a detailed schedule of all the plant and property it proposes to sell to the municipality. Any plant and property shall at all reasonable times be open to the examination of the authorities and experts of the municipality or any other persons or boards charged with the duty of determining the fair value of the property.
(Amended 2023, No. 85 (Adj. Sess.), § 406, eff. July 1, 2024.)
§ 2908 Agreement on price not binding unless ratified
The mayor and council of a city, the selectboard of a town, or the trustees of a village may negotiate and agree with the utility upon the price to be paid for the plant and property. However, any agreement shall not be binding upon any municipality until ratified by three-fifths of the voters present and voting by Australian ballot at a duly warned annual or special meeting that is preceded by at least 20 days by a public hearing on ratification of the agreement. Notice of the public hearing shall be given in the same manner as it is given for the annual meeting. A ratifying vote shall be had within six months from the date of the filing of the reply provided in section 2907 of this title.
(Amended 1979, No. 183 (Adj. Sess.), § 3.)
§ 2909 Hearing before Commission on failure to agree
If the municipality does not ratify such agreement for the purchase in the manner provided in section 2908 of this title or if the price cannot be agreed upon or if it cannot be agreed as to how much, if any, of such plant and property lying outside such municipality the public interest requires such municipality to purchase, either the municipality or the utility may petition the Commission for a determination of these questions. The Commission, after proper notice and hearing, shall decide the amount of just compensation and any other matters in dispute, and shall also, when required to fix the price to be paid for such plant and property, determine the amount of damages, if any, caused by the severance of the plant and property proposed to be purchased from the other plant and property of the utility. The Commission shall make its determinations on or before 12 months after the filing of the petition. The Commission may extend the time for determination an additional six months upon agreement of all of the parties or, absent such an agreement, upon a finding by the Commission, after notice and hearing, that such an extension is necessary to prevent injustice to one or more of the parties. From such determinations, there shall be the right of appeal to the Supreme Court on all matters involved as provided in chapter 1 of this title.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 2003, No. 121 (Adj. Sess.), § 99, eff. June 8, 2004.)
§ 2910 Taking utility property by eminent domain
If the utility shall have replied in the negative or if it shall have failed to reply within the time prescribed in section 2907 of this chapter, the municipality, in the event that it shall have passed the votes required in sections 2903 and 2904 of this chapter, may take such private plant and property by the exercise of the right of eminent domain, paying just compensation determined in the manner provided in section 2909 of this chapter, or, after the Commission upon proper notice and hearing has determined that it will promote the general good of the State to do so, may construct a municipal plant.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 2023, No. 85 (Adj. Sess.), § 407, eff. July 1, 2024.)
§ 2911 Effect of negative vote for acquisition of utility property
Within 90 days following the final determination of the price to be paid for the plant and property, as well as the amount of the plant and property to be taken or acquired under the provisions of section 2909 or 2910 of this chapter, the municipality shall decide whether or not to take the plant or property at that price by a vote taken pursuant to procedures similar to those used in obtaining a ratifying vote as provided in section 2908 of this chapter. If that vote is in the negative, no other action under this chapter shall be had during the ensuing period of one year.
(Amended 1979, No. 183 (Adj. Sess.). § 4; 2023, No. 85 (Adj. Sess.), § 408, eff. July 1, 2024.)
§ 2912 Operation in other municipalities
A municipality, which has acquired the plant, property, or facilities of a utility in any other municipality in accordance with the provisions of sections 2906–2911 of this chapter, may operate as a public utility with the same rights and franchises that the owners of such outlying plant had prior to acquisition under the terms of this chapter. The operation shall be subject to the same jurisdiction, control, and regulation by the Commission as would any other public utility so operating. If the outlying municipality shall itself vote to establish a municipal plant, all the provisions of this chapter shall be applicable.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 2023, No. 85 (Adj. Sess.), § 409, eff. July 1, 2024.)
§ 2913 Extension into other municipalities
After notice and public hearing, the Commission may authorize a municipality that has acquired or constructed and is operating a municipal plant to extend its mains or lines into an adjoining municipality in order to distribute and sell gas or electricity, provided that the outlying municipality is not then being supplied with gas or electricity by a municipal plant or by a utility or provided that the Commission finds that it will promote the general good of the State so to do. Such authorization shall be upon the terms and conditions and with the limitations and restrictions as the Commission finds will promote the general good of the State.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 2023, No. 85 (Adj. Sess.), § 410, eff. July 1, 2024.)
§ 2914 Condemnation
When it is necessary that a municipality that has voted to establish a municipal plant should acquire property within this State, or some easement or other limited right in such property in order that it may render adequate service to the public in the operation of its municipal plant, it may condemn such property or right in the manner prescribed for public service corporations in chapter 3 of this title.
§ 2915 Commissioners
For the more convenient management of any such municipal plant, any such municipality may vest the construction, management, control, and direction of the same in a board of commissioners to consist of three or more citizens of such municipality, such commissioners to have such powers and duties relating to the construction, management, control, and direction thereof as the municipality may prescribe. Their term of office shall be for three years and until their successors are elected and qualified. The first board of commissioners may be chosen for terms of one, two, and three years, respectively, by the legal voters of the municipality at the same meeting or election at which the provisions of this chapter are accepted, or at any special meeting or election thereafter called for that purpose, and their successors shall be elected thereafter in manner or form as the city or town may determine, provided that the term of service of the commissioners first elected shall be designated at the time of their election.
§ 2916 Appointment
The commissioners may be appointed by the mayor and board of aldermen or city council or by the selectboard of the town or by the trustees of the village, if the municipality fails to elect or shall vote to authorize the mayor and board of aldermen or city council or selectboard or trustees to appoint. If a vacancy occurs, it may be filled by the legislative branch.
§ 2917 Compensation
The compensation of the commissioners shall be fixed by the legislative body of the municipality. They shall be sworn to the faithful discharge of their duties. They shall annually organize by choosing one of their number as chair of their board. They shall appoint a clerk who shall record the same in his or her records. The commissioners shall fix the compensation of all officers and agents appointed by them.
§ 2918 Reports
The commissioners shall annually, or when requested by the legislative body, make a report to the municipality, at the time other officers of the municipality report, of the condition of the plant financially and otherwise, showing the funds belonging to their department and the expenses and income thereof with such other facts and information as the voters should have, which report shall be published annually.
§ 2919 Appropriations
Any municipality having a municipal plant may appropriate money for the maintenance and operation of such plant, specifying that the same shall be taken from the receipts of the department. Where such appropriations are made, the treasurer of the municipality, in advance of the collection of such receipts, may pay bills on account of such appropriations, and any sum so advanced shall be repaid to the municipality from such receipts, when collected, and shall be applied as reimbursement to the municipality or to the payment of any temporary loan made by the municipality in anticipation of revenue of that year.
§ 2920 Abandonment
A municipality that has established a municipal plant shall not abandon by sale of such plant or otherwise the distribution of gas or electricity to its consumers until such sale or abandonment has been authorized in the manner and by the votes prescribed for the acquisition of such municipal plants by sections 2903 and 2904 of this title and until the Commission, after notice and a public hearing, has determined that the facilities for furnishing and distributing gas and electricity in the territory served by such plant will not thereby be diminished, and that such sale or abandonment and the terms thereof will promote the general good of the State.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961.)
§ 2921 Effect on special legislation
All acts or parts of acts authorizing a particular municipality to construct or acquire or maintain or operate a municipal plant shall not be repealed by the provisions of this chapter.
§ 2922 Other municipalities
Notwithstanding any other provisions of this chapter, after any part of this chapter takes effect, no municipality operating an electric plant or distribution system, whether under authorization of this chapter or any other general law or special act, shall extend its service lines into any area outside its borders where electric service is otherwise then available, except with the consent of the municipality in which such outside area is located. Such consent shall be given only after application to the legislative body of the town or city in which it is sought to extend the lines. Such body shall fix a time and place for hearing on such application and post a notice thereof in the office of the clerk of the town or city, as the case may be, at least 30 days before the time fixed for hearing. At such hearing or some adjourned session of the legislative body shall determine whether consent is in the public interest, and shall issue or withhold its certificate accordingly. However, the legislative body shall not act with reference to the issuance of the certificate contrary to the action, if any, of the legal voters of the municipality, taken at any annual or special meeting duly warned.
(Amended 2023, No. 85 (Adj. Sess.), § 411, eff. July 1, 2024.)
§ 2923 Rate of return
(a) In determining rates charged by a municipal plant, the Public Utility Commission shall allow, in addition to all other factors, a reasonable rate of return on capital investments. The return shall be commensurate with that permitted private utilities having corresponding risks and equivalent to that necessary for private utilities to ensure confidence in the financial integrity of the enterprise so as to maintain its credit and attract new capital.
(b) Revenue received as a return on capital investment shall be retained by the municipal utility and held in a contingent fund for use by it in that or any subsequent fiscal year.
(Added 1973, No. 186 (Adj. Sess.), § 1, eff. March 30, 1974; amended 2023, No. 85 (Adj. Sess.), § 412, eff. July 1, 2024.)
§ 2924 Approval by voters of municipality
(a) With respect to matters not subject to section 248 of this title, a municipal department established under this chapter or local charter shall obtain the approval of the voters of the municipality before in any way:
(1) purchasing electric capacity or energy from outside the State:
(A) for a period exceeding five years, that represents more than three percent of its historic peak demand, unless the purchase is from a plant that produces electricity from renewable energy; or
(B) for a period exceeding 10 years, that represents more than 10 percent of its historic peak demand, if the purchase is from a plant that produces electricity from renewable energy;
(2) investing in an electric generation or transmission facility located outside this State; or
(3) beginning site preparation for or construction of an electric generation facility within the State, or an electric transmission facility within the State that is designed for immediate or eventual operation at any voltage or exercising the right of eminent domain in connection with site preparation for or construction of any such transmission or generation facility, except for the replacement of existing facilities with equivalent facilities in the usual course of business.
(b) A municipal department shall obtain the approval required by subsection (a) of this section by a vote of a majority of the voters of the municipality voting upon the question at a duly warned annual or special meeting to be held for that purpose. Prior to the meeting, the municipal department may provide to the voters an assessment of any risks and benefits of the proposed action.
(c) In this section, “plant” and “renewable energy” have the same meaning as in section 8002 of this title.
(Added 1985, No. 48, § 5; amended 2015, No. 130 (Adj. Sess.), § 1.)
§ 2925 Conservation and load management
(a) Municipal electric utilities may expend their funds, including the proceeds of their notes, bonds, or other obligations, for the purposes of modifying demand for electric capacity or energy through conservation or load management by participation in such facilities, projects, and programs as the legislative body or other governing body of the municipal electric utility determines will effectively accomplish such purposes. Such facilities, projects, and programs may include providing or financing facilities or programs for conservation or load management, which may be (i) owned or operated by the municipal electric utility or by others, (ii) leased or licensed by the municipal electric utility to others, or financed by loans by the municipal electric utility to others, in either case on such terms and conditions as the legislative body or other governing body of the municipal electric utility may determine.
(b) A municipal electric utility may issue its notes, bonds, or other obligations pursuant to any statutory authority conferring such power for carrying out the purposes of this section.
(Added 1989, No. 112, § 5, eff. June 22, 1989.)
Chapter 81 Utility Cooperatives
§ 3001 Definitions
As used in this chapter, unless the context otherwise requires, the following words shall have the following meanings:
(1) “Cable television” means cable television system as defined in chapter 13 of this title.
(2) “Community development” means the economic and social development of communities through commercial and industrial development, creating job opportunities and training for rural residents, and providing better housing, health, educational, recreational, and other rural community facilities.
(3) “Cooperative” means a corporation organized under this chapter or that becomes subject to this chapter in the manner provided for in this chapter.
(4) “Energy” includes electrical, propane, natural gas, fossil fuels, and other forms of energy.
(5) “Interactive media” means communications media that is regularly used to transmit information in two directions.
(6) “Internet” means collectively the computer and telecommunications facilities, including equipment and operating software, that comprise the interconnected network of networks that employ the transmission control protocol/internet protocol, or any predecessor or successor protocols to such protocol, to communicate information of any kind, whether by wire or wireless means.
(7) “Internet access” means service connecting customers to the internet.
(8) “Person” means a natural person, firm, association, corporation, business trust, partnership, federal agency, state or political subdivision or agency thereof, or a body politic or other entity.
(9) “Telecommunications” means one or more of the following as defined in chapter 88 of this title:
(A) basic telecommunications service;
(B) private network;
(C) public switched network;
(D) telecommunications service;
(E) telecommunications service provider.
(Amended 1999, No. 143 (Adj. Sess.), § 1; 2023, No. 85 (Adj. Sess.), § 413, eff. July 1, 2024.)
§ 3001a Purpose
A cooperative may be organized under this chapter for the purpose of creating or supplying energy, cable television, telecommunications, interactive media, and internet access and facilitating and extending the use thereof, and in addition, any other lawful business not inconsistent with this chapter that utilizes the electric distribution facilities of the cooperative.
(Added 1999, No. 143 (Adj. Sess.), § 2; amended 2025, No. 10, § 26, eff. July 1, 2025.)
§ 3002 Powers
A cooperative shall have power:
(1) To sue and be sued in its corporate name.
(2) To have perpetual existence.
(3) To adopt a corporate seal and alter the same.
(4) To generate, manufacture, purchase, acquire, accumulate, and transmit electric energy; and to distribute, sell, supply, and dispose of energy, cable television, telecommunications, interactive media, and internet access to its members, to governmental agencies, and to political subdivisions; provided, however, that in the generation of electric energy by water power, a cooperative shall comply with the provisions of 10 V.S.A. §§ 1081–1099, relating to the construction and maintenance of dams and, provided further, that a cooperative doing any activity governed by this title shall be regulated for that activity.
(5) To assist persons to whom electric energy is or will be supplied by the cooperative in wiring their premises and in acquiring and installing, in compliance with all applicable codes, electrical and plumbing appliances, equipment, fixtures, and apparatus by the financing thereof or otherwise, and in connection therewith to wire or cause to be wired, such premises and to purchase, acquire, lease as lessor or lessee, sell, distribute, install, and repair such electric and plumbing appliances, equipment, fixtures, and apparatus with the intention that members of the cooperative make the most efficient use of energy.
(6) To work cooperatively with governmental entities or private sector institutions, or a combination of both, for purposes of economic or community development, to benefit cooperative members in their communities.
(7) To construct, purchase, lease as lessee or lessor, or otherwise acquire, and to equip, maintain, and operate; and to sell, assign, convey, mortgage, pledge, or otherwise dispose of or encumber electric transmission and distribution lines or systems, electric generating plants, electric cold storage or processing plants, lands, buildings, structures, dams, plants, equipment, and any other real or personal property tangible or intangible, which shall be deemed necessary, convenient, or appropriate to accomplish the purpose for which the cooperative is organized. However, in the generation of electric energy by water power, a cooperative shall comply with the provisions of 10 V.S.A. §§ 1081–1099, relating to the construction and maintenance of dams.
(8) To purchase, lease as lessee, or otherwise acquire and to use and exercise and to sell, assign, convey, mortgage, pledge, or otherwise dispose of or encumber, franchises, rights, privileges, licenses, and easements.
(9) To borrow money and otherwise contract indebtedness and to issue notes, bonds, and other evidences of indebtedness; and to secure the payment thereof by mortgage, pledge, or deed of trust of, or other encumbrance upon, any or all of its then owned or after-acquired real or personal property, assets, franchises, revenues, or income.
(10) To construct, maintain, and operate electric transmission and distribution lines along, upon, under, and across publicly owned land and public thoroughfares, including all roads, highways, streets, alleys, bridges, and causeways in the manner provided by chapters 71, 73, and 75 of this title.
(11) To become a member of one or more other cooperatives formed under this chapter or under the laws of another state or the District of Columbia, to own all or part-ownership interest in a domestic or foreign corporation, and to hold all or part-ownership in a partnership, joint venture, or other entity, provided that such stock or other ownership interest shall be limited to entities with business purposes or operations that are consistent with the purposes set out in section 3001a of this title for which a cooperative may be organized and that will provide products or services to members of the cooperative.
(12) To conduct its business and exercise its powers within or outside this State.
(13) To adopt, amend, and repeal bylaws.
(14) To do and perform any other acts and things and to have and exercise any other powers that may be necessary or appropriate to accomplish the purpose for which the cooperative is organized.
(15) For purposes of providing electric power, to condemn property within the State, or easements or other limited rights, in the manner provided for public service corporations by sections 111–124 of this title, when it is necessary in order that it may render adequate electric service.
(Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; amended 1999, No. 143 (Adj. Sess.), § 3; 2023, No. 85 (Adj. Sess.), § 414, eff. July 1, 2024; 2025, No. 10, § 26, eff. July 1, 2025.)
§ 3002a Obligations treated as expenses
The obligations of any cooperative under any contract authorized under section 3002 of this title shall not be deemed to constitute an indebtedness or a lending of credit of the cooperative, but shall be treated as expenses of operating an electric plant.
(Added 1989, No. 112, § 3b, eff. June 22, 1989.)
§ 3003 Name
The name of a cooperative governed by this chapter shall include the words “utility” or “energy” or a word designating any specific form of energy such as “electric,” “propane,” or “natural gas” and “cooperative” and the abbreviation “inc.” unless, in an affidavit made by its president or vice president and filed with the Secretary of State, or in an affidavit made by a person signing articles of incorporation, consolidation, merger, or conversion, which relate to the cooperative and filed, together with the articles, with the Secretary of State, it shall appear that the cooperative desires to do business in another state and is or would be precluded by reason of the inclusion of the words in its name. The name of a cooperative shall be distinct from the name of any other cooperative or corporation organized under the laws of, or authorized to do business in, this State.
(Amended 1999, No. 143 (Adj. Sess.), § 4; 2023, No. 85 (Adj. Sess.), § 415, eff. July 1, 2024; 2025, No. 10, § 26, eff. July 1, 2025.)
§ 3004 Organization; members
Five or more natural persons, a majority of whom are residents of this State, or two or more cooperatives, may organize a cooperative in the manner provided in this chapter.
(Amended 2023, No. 85 (Adj. Sess.), § 416, eff. July 1, 2024.)
§ 3005 Articles of incorporation, contents
Articles of incorporation of a cooperative shall recite that they are executed pursuant to this chapter and shall state: (1) the name of the cooperative; (2) the address of its principal office; (3) the names and addresses of the incorporators; and (4) the names and addresses of its directors; and may contain provisions not inconsistent with this chapter deemed necessary or advisable for the conduct of its business and not repugnant to the constitution or laws of this State. Such articles shall be signed by each incorporator and acknowledged by at least two of the incorporators, or on their behalf, if they are cooperatives. The purposes of the cooperative shall be set forth in the articles of incorporation, but it is not necessary to set forth its corporate powers.
(Amended 1999, No. 143 (Adj. Sess.), § 5.)
§ 3006 Bylaws
The board of directors shall adopt bylaws of a cooperative to be adopted following an incorporation, conversion, merger, or consolidation. Thereafter the members shall adopt, amend, or repeal the bylaws pursuant to the provisions thereof but in no case by the vote of less than a majority of those members voting thereon at a meeting of the members. The bylaws shall set forth the rights and duties of members and directors and may contain other provisions for the regulation and management of the affairs of the cooperative not inconsistent with this chapter or with its articles of incorporation.
(Amended 1959, No. 165; 1999, No. 143 (Adj. Sess.), § 6.)
§ 3007 Members, qualifications
Each incorporator of a cooperative shall be a member thereof, but no other person may become a member thereof unless such other person uses electric energy or other services, goods, or products furnished by the cooperative when they are made available through its electric distribution facilities, or a person may become a member by purchasing and paying the cooperative for renewable energy certificates or other environmental attributes associated with the generation of electricity. A member of a cooperative who ceases to use electric energy shall cease to be a member if he or she does not use electric energy supplied by the cooperative within six months after it is made available, or if electric energy is not made available by the cooperative within two years after he or she becomes a member or some lesser period as the bylaws of the cooperative may provide. Two or more owners or occupants of property served by a cooperative may hold a joint membership in a cooperative. Membership in a cooperative shall not be transferable, except as provided by the bylaws. The bylaws may prescribe additional qualifications and limitations in respect to membership.
(Amended 1999, No. 143 (Adj. Sess.), § 7; amended 2005, No. 61, § 14.)
§ 3008 Meetings
An annual meeting of the members of a cooperative shall be held at such time and place as shall be provided in the bylaws. Special meetings of the members may be called by the president, by the board of directors, by three directors, or by not less than 10 percent of the members. All meetings of members shall be called at and held in some convenient public place in this State.
(Amended 1999, No. 143 (Adj. Sess.), § 8.)
§ 3009 Notice of meeting
Except as otherwise provided in this chapter, written or printed notice stating the time and place of each meeting of the members, and, in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be given to each member, either personally or by mail, not less than 10 nor more than 25 days before the date of the meeting. If mailed, such notice shall be deemed to be given when deposited in the U.S. mail with postage prepaid addressed to the member at his or her address as it appears on the records of the cooperative.
§ 3010 Members necessary for quorum
Unless the bylaws prescribe the presence of a greater percentage or greater number of members for a quorum, a quorum for the transaction of business at all meetings of the members of a cooperative having not more than 1,000 members, shall be 10 percent of all members, and of a cooperative having more than 1,000 members, shall be 100 members. For the purpose of determining the presence of a quorum under this section, all members shall be counted who are either present in person or who vote on business transacted at the meeting in a manner allowed under section 3011 of this title. If less than a quorum is present at a meeting, a majority of those present in person may adjourn the meeting from time to time without further notice but no business may validly be enacted at any meeting without the presence of a quorum.
(Amended 1999, No. 143 (Adj. Sess.), § 9.)
§ 3011 Voting
Each member shall be entitled to one vote on each matter submitted to a vote at a meeting of the members. Voting shall be in person, but if the bylaws so provide, may also be by proxy, by mail, telephonically, or electronically. If the bylaws provide for voting by proxy, by mail, telephonically, or electronically, they shall also prescribe the conditions under which such voting shall be permitted. No person shall vote as proxy for more than three members at any meeting. If the bylaws of a cooperative provide for voting by proxy, by mail, telephonically, or electronically, such vote shall have full force and effect as if voted in person by a member at a meeting of the members in accordance with the provisions of the bylaws and as specifically referred to under this title and chapter.
(Amended 1975, No. 107; 1999, No. 143 (Adj. Sess.), § 10.)
§ 3012 Notice; waiver
A person entitled to notice of a meeting may waive the notice in writing either before or after the meeting. If the person shall attend the meeting, attendance shall constitute a waiver of notice of the meeting, unless the person participates solely to object to the transaction of any business because the meeting has not been legally called or convened.
(Amended 2023, No. 85 (Adj. Sess.), § 417, eff. July 1, 2024.)
§ 3013 Directors, qualifications
The business of a cooperative shall be managed by a board of not less than five directors, each of whom shall be a member of the cooperative or of another cooperative that is a member thereof, shall not be an employee of the cooperative, and shall reside in this State. The bylaws shall prescribe the number of directors, their qualifications, other than those prescribed in this chapter, the manner of holding meetings of the board of directors and of electing successors to directors who shall resign, die, or otherwise be incapable of acting. The bylaws may also provide for the removal of directors from office and for the election of their successors. Directors as such may not receive any salary for their services, but by resolution of the board of directors a fixed sum and expenses of attendance may be allowed for attendance at each meeting of the board of directors, or a committee thereof, or other customary activities necessary to carry out the duties of a director. The board of directors may exercise all of the powers of a cooperative not conferred upon the members by this chapter or its articles of incorporation or bylaws.
(Amended 1999, No. 143 (Adj. Sess.), § 11.)
§ 3014 Election and term of office
(a) The bylaws of a cooperative shall determine the method of election and term of office of the directors.
(b) Existing bylaws shall govern until duly amended. Those cooperatives that have in the past in compliance with their bylaws elected their directors to serve for staggered terms of three or four years may continue the practice.
(Amended 1975, No. 108, § 1, eff. April 30, 1975; 1999, No. 143 (Adj. Sess.), § 12.)
§ 3015 Repealed
[Repealed]
1975, No. 108, § 2, eff. April 30, 1975.
§ 3016 Districts
The bylaws may provide for the division of the territory served or to be served by a cooperative into two or more districts for any purpose, without limitation, the nomination and election of trustees and the election and functioning of district delegates. In such case the bylaws shall prescribe the boundaries of the districts, the manner of establishing and changing such boundaries, and the manner in which such districts shall function.
(Amended 1999, No. 143 (Adj. Sess.), § 13.)
§ 3017 Officers, duties
The officers of a cooperative shall consist of a president, vice president, secretary, and treasurer, who shall be elected annually by and from the board of directors. When a person holding office ceases to be a director, he or she shall cease to hold such office. The offices of secretary and treasurer may be held by the same person. A vacancy in the office of secretary may be filled by the board of directors, and the person so elected shall serve until his or her successor is elected. When a cooperative neglects for six months to appoint and have a clerk, it shall forfeit $50.00 to the person injured to be recovered in an action on this statute. The secretary shall record all votes and proceedings of the members and directors or executive committee thereof. He or she shall have the custody of the corporate seal and of the corporate records and shall keep such records within this State. He or she shall keep a book containing a record of the names of the members, the date of their membership and of others served by the cooperative, and of the places of residence of each, which book shall always be open to the inspection of members. He or she shall procure and file in the office of the clerk of the town where the principal office is located and also keep on file in his or her own office certified copies of all papers required by law or by this chapter to be filed with the Secretary of State. The board of directors may also elect or appoint such other officers, agents, or employees as it deems necessary or advisable and shall prescribe their powers and duties. An officer may be removed from office and his or her successor elected in the manner prescribed by the bylaws.
(Amended 1999, No. 143 (Adj. Sess.), § 14.)
§ 3018 Amendment of articles
A cooperative may amend its articles of incorporation by complying with the following requirements: The proposed amendment shall be presented to a meeting of the members, the notice of which shall set forth or have attached to it the proposed amendment. If the proposed amendment, with changes, is approved by the affirmative vote of not less than two-thirds of those members voting the meeting, a certificate of amendment shall be executed and acknowledged on behalf of the cooperative by its president or vice president and its seal shall be affixed to it and attested by its secretary. The certificate of amendment shall recite that it is executed pursuant to this chapter and shall state: (1) the name of the cooperative; (2) the address of its principal office; and (3) the amendment to its articles of incorporation. The president or vice president executing the certificate of amendment shall make and attach to it an affidavit stating that the provisions of this section in respect of the amendment set forth in the articles were duly complied with.
(Amended 1999, No. 143 (Adj. Sess.), § 15; 2023, No. 85 (Adj. Sess.), § 418, eff. July 1, 2024.)
§ 3019 Location of office
Upon authorization of its board of trustees or its members, a cooperative may change the location of its principal office by filing in the office of the Secretary of State a certificate reciting such change of principal office, executed and acknowledged by its president or vice president under its seal attested by its clerk.
§ 3020 Consolidation
Two or more cooperatives licensed in this State under this law, each of which is designated a “consolidating cooperative,” may consolidate into a new cooperative, designated the “new cooperative,” by complying with the following requirements:
(1) The proposition for the consolidation of the consolidating cooperatives into the new cooperative and proposed articles of consolidation to effect the same shall be submitted to a meeting of the members of each consolidating cooperative, the notice of which shall have been attached to a copy of the proposed articles of consolidation.
(2) If the proposed consolidation and the proposed articles of consolidation, with amendments, are approved by the affirmative vote of not less than two-thirds of the members of each consolidating cooperative voting at each meeting, articles of consolidation in the form approved shall be executed and acknowledged on behalf of each consolidating cooperative by its president or vice president and its seal shall be affixed and attested by its secretary. The articles of consolidation shall recite that they are executed pursuant to this chapter and shall state: (A) the name of each consolidating cooperative and the address of its principal office; (B) the name of the new cooperative and the address of its principal office; (C) a statement that each consolidating cooperative agrees to the consolidation; (D) the names and addresses of the directors of the new cooperative; and (E) the terms and conditions of the consolidation and the mode of carrying the same into effect, including the manner in which members of the consolidating cooperative may or shall become members of the new cooperative; and may contain provisions not inconsistent with law or this chapter deemed necessary or advisable for the conduct of the business of the new cooperative. The president or vice president of each consolidating cooperative executing articles of consolidation shall make and attach an affidavit stating that the provisions of this section in respect of such articles were duly complied with by the cooperative.
(Amended 1999, No. 143 (Adj. Sess.), § 16; 2023, No. 85 (Adj. Sess.), § 419, eff. July 1, 2024.)
§ 3021 Merger; requirements
One or more cooperatives, each of which is designated a “merging cooperative,” may merge into another cooperative, designated the “surviving cooperative,” by complying with the following requirements:
(1) The proposition for the merger of the merging cooperatives into the surviving cooperative and proposed articles of merger to give effect to shall be submitted to a meeting of the members of each merging cooperative and of the surviving cooperative, the notice of which shall have attached to it a copy of the proposed articles of merger.
(2) If the proposed merger and the proposed articles of merger, with amendments, are approved by the affirmative vote of not less than two-thirds of those members of each cooperative voting at each meeting, articles of merger in the form approved shall be executed and acknowledged on behalf of each cooperative by its president or vice president and its seal shall be affixed to it and attested by its secretary. The articles of merger shall recite that they are executed pursuant to this chapter and shall state: (A) the name of each merging cooperative and the address of its principal office; (B) the name of the surviving cooperative and the address of its principal office; (C) a statement that each merging cooperative and the surviving cooperative agree to the merger; (D) the names and addresses of the directors of the surviving cooperative; and (E) the terms and conditions of the merger and the mode of carrying the same into effect, including the manner in which members of the merging cooperatives may become members of the surviving cooperative. The articles may contain provisions not inconsistent with law or this chapter deemed necessary or advisable for the conduct of the business of the surviving cooperative. The president or vice president of each cooperative executing articles of merger shall make and attach to an affidavit stating that the provisions of this section in respect to the articles were duly complied with by the cooperative.
(Amended 1999, No. 143 (Adj. Sess.), § 17; 2023, No. 85 (Adj. Sess.), § 420, eff. July 1, 2024.)
§ 3022 Effect
In the case of a consolidation, the separate existence of the consolidating cooperatives shall cease and the articles of consolidation shall be deemed to be the articles of incorporation of the new cooperative. In the case of a merger, the separate existence of the merging cooperatives shall cease and the articles of incorporation of the surviving cooperative shall be deemed to be amended to the extent that changes are provided for in the articles of the merger.
(Amended 2023, No. 85 (Adj. Sess.), § 421, eff. July 1, 2024.)
§ 3023 Transfer of rights and liabilities
All the rights, privileges, immunities, and franchises and all property, real and personal, including applications for membership, all debts due on whatever account, and all other choses in action, of each of the consolidating or merger cooperatives shall be deemed to be transferred to and vested in the new or surviving cooperative respectively, without further act or deed.
§ 3024 Responsibilities for liabilities transferred
The new or surviving cooperative shall be responsible and liable for all the liabilities and obligations of each of the consolidating or merging cooperatives and a claim existing or action or proceeding pending by or against a consolidating or merging cooperative may be prosecuted as if the consolidation or merger had not taken place, but the new or surviving cooperative may be substituted in its place.
§ 3025 Creditors’ rights not impaired by merger
Neither the rights of creditors nor liens upon the property of such cooperatives shall be impaired by such consolidation or merger.
§ 3026 Private corporation; change
A corporation organized under the laws of this State and supplying or authorized to supply energy may be converted into a cooperative by complying with the following requirements and shall become subject to this chapter with the same effect as if originally organized under this chapter:
(1) The proposition for the conversion of a corporation into a cooperative and proposed articles of conversion to give effect to shall be submitted to a meeting of the members or stockholders of a corporation, the notice of which shall have attached a copy of the proposed articles of conversion.
(2) If the proposition for the conversion of a corporation into a cooperative and the proposed articles of conversion, with amendments, are approved by the affirmative vote of not less than two-thirds of those members of such corporation voting at the meeting, or, if such corporation is a stock corporation, by the affirmative vote of the holders of not less than two-thirds of the shares of the capital stock of the corporation represented at the meeting and voting articles of conversion in the form approved shall be executed and acknowledged on behalf of the corporation by its president or vice president and its seal shall be affixed to it and attested by its secretary.
(3) The articles of conversion shall recite that they are executed pursuant to this chapter and shall state: (A) the name of the corporation and the address of its principal office prior to its conversion into a cooperative; (B) the statute or statutes under which it was organized; (C) a statement that the corporation elects to become a cooperative subject to this chapter; (D) its name as a cooperative; (E) the address of the principal office of the cooperative; (F) the names and addresses of the directors of the cooperative; and (G) the manner in which members or stockholders of the corporation may become members of the cooperative; and may contain any provisions not inconsistent with law or this chapter deemed necessary or advisable for the conduct of the business of the cooperative. The president or vice president executing articles of conversion shall make and attach to an affidavit stating that the provisions of this section were duly complied with in respect of such articles. The articles of conversion shall be deemed to be the articles of incorporation of the cooperative.
(Amended 1999, No. 143 (Adj. Sess.), § 18; 2023, No. 85 (Adj. Sess.), § 422, eff. July 1, 2024.)
§ 3027 Dissolution—Cooperative not commencing business
A cooperative that has not commenced business may be dissolved by delivering to the Secretary of State a certificate of dissolution, which shall be executed and acknowledged on behalf of the cooperative by a majority of the incorporators and that shall state:
(1) the name of the cooperative;
(2) the address of its principal office;
(3) that the cooperative has not commenced business;
(4) that any sums received by the cooperative, less any part thereof disbursed for expenses of the cooperative, have been returned or paid to those entitled to them;
(5) that no debt of the cooperative is unpaid; and
(6) that a majority of the incorporators elect that the cooperative be dissolved.
(Amended 2023, No. 85 (Adj. Sess.), § 423, eff. July 1, 2024.)
§ 3028 Dissolution of cooperatives
A cooperative that has commenced business may be dissolved in the following manner: The members at a meeting shall approve, by the affirmative vote of not less than two-thirds of the members voting a meeting, a proposal that the cooperative be dissolved. Upon approval, a certificate of election to dissolve, designated the “certificate,” executed under oath and acknowledged on behalf of the cooperative by its president or vice president under its seal, attested by its secretary, and stating (1) the name of the cooperative; (2) the address of its principal office; and (3) that the members of the cooperative have duly voted that the cooperative be dissolved, shall be filed with the Secretary of State. Upon filing of a certificate by the Secretary of State, the cooperative shall cease to carry on its business except to the extent necessary for the winding up but its corporate existence shall continue until a certificate of dissolution has been filed by the Secretary of State. The board of directors shall immediately cause notice of the dissolution proceedings to be mailed to each known creditor of and claimant against the cooperative and to be published once a week for two successive weeks in a newspaper of general circulation in the county in which the principal office of the cooperative is located. The board of directors shall wind up and settle the affairs of the cooperative; collect sums owing to it; liquidate its property and assets; pay and discharge its debts, obligations, and liabilities; and do all other things required to wind up its business. After paying or discharging or adequately providing for the payment or discharge of all its debts, obligations, and liabilities, the board shall distribute any remaining sums among its members and former members in proportion to the patronage of the respective members or former members during the seven years next preceding the date of the filing of the certificate by the Secretary of State, or if the cooperative has not been in existence for such period, then during the period of its existence prior to the filing. The board of directors shall authorize the execution of a certificate of dissolution, which shall be executed and acknowledged on behalf of the cooperative by its president or vice president, and its seal shall be affixed to it and attested by its secretary. The certificate of dissolution shall recite that it is executed pursuant to this chapter and shall state: (1) the name of the cooperative; (2) the address of its principal office; (3) the date on which the certificate of election to dissolve was filed by the Secretary of State; (4) that there are no actions or suits pending against the cooperative; (5) that all debts, obligations, and liabilities of the cooperative have been paid and discharged or that adequate provision has been made; and (6) that the provisions of this chapter relative to dissolution have been duly complied with. The president or vice president executing the certificate of dissolution shall make and attach to an affidavit stating that the statements made in it are true.
(Amended 1999, No. 143 (Adj. Sess.), § 19; 2023, No. 85 (Adj. Sess.), § 424, eff. July 1, 2024.)
§ 3029 Papers filed
Articles of incorporation, amendment, consolidation, merger, conversion, or dissolution, when executed and acknowledged and accompanied by affidavits as may be required by applicable provisions of this chapter, shall be filed with the Secretary of State. If the Secretary of State finds that the articles presented conform to the requirements of this chapter, the Secretary shall, upon the payment of the fees as in this chapter provided, record the articles and upon the recording the incorporation, amendment, consolidation, merger, conversion, or dissolution provided for shall be in effect. The provisions of this section shall also apply to certificates of election to dissolve pursuant to section 3028 of this chapter.
(Amended 2023, No. 85 (Adj. Sess.), § 425, eff. July 1, 2024.)
§ 3030 Revenues; use of
Revenues of a cooperative for a fiscal year in excess of the amount thereof necessary:
(1) To defray the expenses of the operation and maintenance of the facilities of the cooperative during such fiscal year.
(2) To pay interest and principal obligations of the cooperative coming due in such fiscal year.
(3) To finance, or to provide a reserve for the financing of, the construction or acquisition by the cooperative of additional facilities to the extent determined by the board of directors.
(4) To provide a reasonable reserve for working capital.
(5) To provide a reserve for the payment of indebtedness of the cooperative in an amount not less than the total of the interest and principal payments in respect thereof required to be made during the next following fiscal year.
(6) To provide a fund, designated as the “cooperative education fund,” for education in cooperation and for the dissemination of information concerning the effective use of energy and other services, goods, or products made available by the cooperative, shall, unless otherwise determined by a vote of the members, be distributed by the cooperative to its members and to other persons to whom the cooperative supplies energy or other services, goods, or products made available through its electric distribution facilities, as patronage refunds prorated in accordance with the patronage of the cooperative by the respective members and other persons, paid for during such fiscal year; provided, however, a distribution shall not be made to a person until that person becomes a member of the cooperative. If that person does not become a member of the cooperative within one year after the amount of that person’s distributive share or accumulated distributive shares equals the membership fee required by the bylaws of the cooperative, or, if no membership fee is required, within two years after the declaration of the patronage refund, that person shall cease to be entitled to a share or shares, which shall, in such case, be paid into the cooperative education fund. The cooperative shall make such additional provision, in the bylaws or otherwise, relative to the disposition of the revenues of the cooperative as may be necessary and appropriate to establish and maintain the nonprofit character of the cooperative. Nothing contained in this section shall be construed to prohibit the payment by a cooperative of all or any part of its indebtedness prior to the date when the same shall become due.
(Amended 1999, No. 143 (Adj. Sess.), § 20; 2023, No. 85 (Adj. Sess.), § 426, eff. July 1, 2024.)
§ 3031 Mortgage and investment
(a) The board of directors of a cooperative shall have full power and authority, without authorization by the members, to authorize the execution and delivery of a mortgage or mortgages or a deed or deeds of trust of, or the pledging or encumbering of, any or all of the property, assets, rights, privileges, licenses, franchises, and permits of the cooperative, whether acquired or to be acquired, and wherever situated, as well as the revenues and income, all upon such terms and conditions as the board of directors shall determine, to secure indebtedness of the cooperative in the ordinary course of the cooperative’s electric business.
(b) The board of directors of a cooperative shall have full power and authority, with the approval of two-thirds of the members of the cooperative voting on such authorization, to authorize the execution and delivery of a mortgage or mortgages or a deed of trust of, or the pledging or encumbering of, any or all of the property, assets, rights, privileges, licenses, franchises, and permits of the cooperative, whether acquired or to be acquired, and wherever situated, as well as the revenues and income, upon terms and conditions as the board of directors shall determine, to secure indebtedness of the cooperative for purposes authorized by statute other than operation of the cooperative’s electric business.
(c) No more than 50 percent of the member equity of an electric cooperative subject to the provisions of this chapter may be used to invest in all business activities authorized by statute, other than electric business activities. Each individual investment by the electric cooperative in a business activity authorized by statute, other than electric, exceeding three percent of the members’ equity, may be made only with approval of two-thirds of the members voting on such proposal.
(d) Business activities authorized by statute, other than electric, shall be geographically limited to any county in which the cooperative has authority to sell energy or other services furnished by the cooperative when they are made available through its electric distribution facilities, or any county in which an authorized business is presently serving.
(Amended 1969, No. 192 (Adj. Sess.), eff. March 12, 1970; 1999, No. 143 (Adj. Sess.), § 21; 2023, No. 85 (Adj. Sess.), § 427, eff. July 1, 2024.)
§ 3032 Sale or lease of assets
A cooperative may not sell, lease, or otherwise dispose of all or a substantial portion of its property unless such sale, lease, or other disposition is authorized by the affirmative vote of not less than a majority of all the members of the cooperative. Members may vote in person or in a manner authorized under section 3011 of this title.
(Amended 1999, No. 143 (Adj. Sess.), § 22.)
§ 3033 Personal liability
A member shall not be liable or responsible for debts of the cooperative and the property of the members shall not be subject to attachment or execution.
(Amended 2023, No. 85 (Adj. Sess.), § 428, eff. July 1, 2024.)
§ 3034 Mortgages; filing
A mortgage, deed of trust, or other instrument executed by a cooperative or foreign corporation doing business in this State pursuant to this chapter, which affects real and personal property and which is recorded in the town in which such property is located or is to be located, shall have the same force and effect as if the mortgage, deed of trust, or other instrument were also recorded, filed, or indexed as provided by law in the proper office in such town as a mortgage of personal property. All after-acquired property of such cooperative or foreign corporation described or referred to as being mortgaged or pledged in such mortgage, deed of trust, or other instrument, shall become subject to the lien thereof immediately upon the acquisition of such property by such cooperative or foreign corporation, whether or not such property was in existence at the time of the execution of such mortgage, deed of trust, or other instrument. Recordation of the mortgage, deed of trust, or other instrument shall constitute notice and otherwise have the same effect with respect to the after-acquired property as it has under the laws relating to recordation, with respect to property owned by the cooperative or foreign corporation at the time of the execution of the mortgage, deed of trust, or other instrument and described or referred to as being mortgaged or pledged.
(Amended 2023, No. 85 (Adj. Sess.), § 429, eff. July 1, 2024.)
§ 3035 Safety standards
As a minimum requirement for any activity authorized by this chapter, the cooperative shall adhere to all applicable federal, State, or local safety codes, regulations, or standards.
(Amended 1999, No. 143 (Adj. Sess.), § 23.)
§ 3036 Acknowledgments, members authorized
A person who is authorized to take acknowledgments under the laws of this State shall not be disqualified from taking acknowledgments of instruments executed in favor of a cooperative or to which it is a party, by reason of being an officer, director, or member of such cooperative.
(Amended 1999, No. 143 (Adj. Sess.), § 24.)
§ 3037 Foreign companies; service of process
A foreign nonprofit or cooperative corporation supplying or authorized to supply electric energy and owning or operating electric transmission or distribution lines in an adjacent state, prior to March 26, 1943, may construct or acquire extensions of lines in this State within an area no point of which is more than 25 miles from the boundary line of this State and may operate those extensions without qualifying as a foreign corporation to do business in this State. Before constructing or operating such extensions, by an instrument executed and acknowledged on its behalf by its president or vice president, under its seal attested by its clerk or secretary, and filed with the Secretary of State, a corporation shall designate the Secretary of State its agent to accept service of process on its behalf. Thereafter, the corporation shall have all the rights, powers, privileges, and immunities of a cooperative. Service of process shall be made upon the Secretary of State in accordance with the provisions of 11 V.S.A. § 1656.
(Amended 2023, No. 85 (Adj. Sess.), § 430, eff. July 1, 2024; 2025, No. 10, § 26, eff. July 1, 2025.)
§ 3038 Fees
(a) There shall be paid to the Secretary of State fees for filing as follows:
(1) Articles of incorporation, $15.00;
(2) Articles of amendment, $10.00;
(3) Articles of consolidation or merger, $15.00;
(4) Articles of conversion, $10.00;
(5) Certificate of election to dissolve, $5.00;
(6) Articles of dissolution, $5.00; and
(7) Certificate of change of principal office, $5.00.
(b) Such fees shall include two certified copies of the respective instruments.
(Amended 1963, No. 37, § 19.)
§§ 3039, 3040 Repealed
[Repealed]
1969, No. 257 (Adj. Sess.), § 7.
§ 3041 Securities Act
The provisions of 9 V.S.A. chapter 131 shall not apply to a note, bond, or other evidence of indebtedness issued by a cooperative or foreign corporation doing business in this State pursuant to this chapter, to the United States of America or an agency or instrumentality thereof, or to a mortgage, deed of trust, or other instrument executed to secure the same. The provisions of 9 V.S.A. chapter 131 shall not apply to the issuance of membership certificates by a cooperative or such foreign corporations.
§ 3042 Annual reports
Each cooperative formed under the provisions of this chapter shall prepare and submit to its annual meeting a report containing the name of the cooperative, its principal place of business, a general statement of its business operations during the fiscal year, including a statement of its assets and liabilities, the amount of its indebtedness secured by mortgage or pledge of the corporate property or part thereof, and the names of the directors, officers, and secretary. A copy of the annual report attested by the secretary shall be filed with the Secretary of State within 30 days after the annual meeting.
(Amended 1999, No. 143 (Adj. Sess.), § 25.)
§ 3043 Formation of cooperatives by cooperatives
(a) Notwithstanding any other provision of this chapter, one or more cooperatives formed under the provisions of this chapter may organize and control a cooperative having as its principal purpose the generation, manufacture, purchase, acquisition, accumulation, transmission, sale, supply, and disposal of energy, cable television, telecommunications, interactive media, and internet access. Such a cooperative shall have all of the powers of cooperatives formed under the provisions of this chapter.
(b) Members of a cooperative organized pursuant to subsection (a) of this section shall be the cooperative or cooperatives organizing it and may include any individual, partnership, association, corporation, municipality, or cooperative engaged in the generation, transmission, or distribution of energy within or outside the State of Vermont. The bylaws of a cooperative organized pursuant to subsection (a) of this section may provide for more than one class of membership, including a class or classes with no rights or with limited rights to vote on matters requiring the vote of members under this chapter, and including a class or classes with no rights or limited rights to receive distributions of patronage refunds.
(Added 1979, No. 51, § 1, eff. April 25, 1979; amended 1999, No. 143 (Adj. Sess.), § 26; 2023, No. 85 (Adj. Sess.), § 431, eff. July 1, 2024.)
§ 3044 Approval by members of cooperative
(a) With respect to matters not subject to section 248 of this title, a cooperative established under this chapter shall obtain the approval of the voters of the cooperative before in any way:
(1) purchasing electric capacity or energy from outside the State:
(A) for a period exceeding five years, that represents more than three percent of its historic peak demand, unless the purchase is from a plant that produces electricity from renewable energy; or
(B) for a period exceeding 10 years, that represents more than 10 percent of its historic peak demand, if the purchase is from a plant that produces electricity from renewable energy;
(2) investing in an electric generation or transmission facility located outside this State; or
(3) beginning site preparation for or construction of an electric generation facility within the State, or an electric transmission facility within the State that is designed for immediate or eventual operation at any voltage or exercising the right of eminent domain in connection with site preparation for or construction of any such transmission or generation facility, except for the replacement of existing facilities with equivalent facilities in the usual course of business.
(b) A cooperative shall obtain the approval required by subsection (a) of this section by a vote of a majority of the voters of the cooperative voting upon the question at a duly warned annual or special meeting to be held for that purpose. Prior to the meeting, the cooperative may provide to the voters an assessment of any risks and benefits of the proposed action.
(c) In this section, “plant” and “renewable energy” have the same meaning as in section 8002 of this title.
(Added 1985, No. 48, § 4; amended 2015, No. 130 (Adj. Sess.), § 2.)
§ 3045 Conservation and load management
(a) Cooperatives may expend their funds, including the proceeds of their notes, bonds, or other obligations, for the purposes of modifying demand for electric capacity or energy through conservation or load management by participation in such facilities, projects, and programs as the governing board of the cooperative determines will effectively accomplish such purposes. Such facilities, projects, and programs may include providing or financing facilities or programs for conservation or load management, which may be: (i) owned or operated by the cooperative or by others, (ii) leased or licensed by the cooperative to others, or financed by loans by the cooperative to others, in either case on such terms and conditions as the governing board of the cooperative may determine.
(b) A cooperative may issue its notes, bonds, or other obligations pursuant to any statutory authority conferring such power for carrying out the purposes of this section.
(Added 1989, No. 112, § 5a, eff. June 22, 1989.)
§ 3046 Reserved
[Reserved]
§ 3047 Cost allocations; subsidization prohibited
In carrying out the purposes of this chapter, the electric revenues received from regulated activities of a cooperative shall not subsidize any nonelectric activities of the cooperative. A cooperative shall adopt cost allocation procedures to ensure that the electrical distribution revenues received from regulated activities of a cooperative do not subsidize any of the nonelectric activities and that costs attributable to any nonelectric activities are not included in the cooperative’s rates for electric service. A copy of the cost allocation procedures shall be available to the public upon request.
(Added 1999, No. 143 (Adj. Sess.), § 27; amended 2019, No. 79, § 12, eff. June 20, 2019.)
Chapter 82 Communications Union Districts
§ 3051 Formation
(a) Two or more towns and cities may elect to form a communications union district for the delivery of communications services and the operation of a communications plant, which district shall be a body politic and corporate.
(b) A town or city electing to form a district under this chapter shall submit to the eligible voters of such municipality a proposition in substantially the following form: “Shall the Town of ______ enter into a communications union district to be known as ______ , under the provisions of 30 V.S.A. chapter 82?” at an annual or special meeting of such town or city.
(c) Additional towns or cities may be admitted to the district in the manner provided in section 3082 of this chapter.
(d) As used in this chapter:
(1) “Communications plant” means any and all parts of any communications system owned by the district, whether using wires, cables, fiber optics, wireless, other technologies, or a combination of, and used for the purpose of transporting or storing information, in whatever forms, directions, and media, together with any improvements constructed or acquired later, and all other facilities, equipment, and appurtenances necessary or appropriate to such system. However, the term “communications plant” and any regulatory implications or any restrictions under this chapter regarding a “communications plant” shall not apply to facilities or portions of any communications facilities intended for use by, and solely used by, a district member and its own officers and employees in the operation of municipal departments or systems of which such communications are merely an ancillary component.
(2) “Communications union district” or “district” means a communications union district formed under this chapter.
(3) “District member” or “member municipality” means a town or city that elects to form or join a communications union district under this chapter.
(4) “Governing board” or “board” means the governing board of the communications union district as established under this chapter.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 432, eff. July 1, 2024.)
§ 3052 District composition
A district formed under this chapter shall be composed of and include all of the lands and residents within a member municipality, and any other town or city subsequently admitted to the district as provided in this chapter except for those towns and cities that withdraw as provided in this chapter. Registered voters in each member municipality are eligible to vote in all district meetings, but only district member representatives are eligible to vote in meetings of the district’s governing board.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3053 Creation; duration; noncontestability
(a) Following the organizational meeting called for in section 3060 of this chapter, the district’s governing board shall cause to be filed with the Office of the Secretary of State a certificate attesting to the vote conducted under subsection 3051(b) of this chapter.
(b) A district formed under this chapter shall continue as a body politic and corporate unless and until dissolved according to the procedures set forth in this chapter.
(c) An action shall not be brought directly or indirectly challenging, questioning, or in any manner contesting the legality of the formation, or the existence as a body corporate and politic of any communications union district created under this chapter after six months from the date of the recording in the office of the Secretary of State of the certificate required by subsection (a) of this section. An action shall not be brought directly or indirectly challenging, questioning, or in any manner contesting the legality or validity of any bonds issued to defray costs of communications plant improvements approved by the board, after six months from the date upon which the board voted affirmatively to issue such bonds. This section shall be liberally construed to affect the legislative purpose to validate and make certain the legal existence of all communications union districts in this State and the validity of bonds issued or authorized for communications plant improvements, and to bar every remedy notwithstanding any defects or irregularities, jurisdictional or otherwise, after expiration of the six-month period. The provisions of this subsection shall also pertain to financial contracts directly related to the district’s bonding authority.
(d) To the extent a district constructs communications infrastructure with the intent of providing communications services, the district shall ensure that any and all losses from these services, or in the event these services are abandoned or curtailed, any and all costs associated with the investment in communications infrastructure, are not borne by the taxpayers of district members.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 433, eff. July 1, 2024.)
§ 3054 District powers
(a) In addition to the powers enumerated in 24 V.S.A. § 4866, and, subject to the limitations and restrictions set forth in section 3056 of this chapter, a district created under this chapter shall have the power to:
(1) operate, cause to be operated, or contract for the construction, ownership;, management, financing, and operation of a communications plant for the delivery of communications services, as provided in 24 V.S.A. chapter 54;
(2) purchase, sell, lease, own, acquire, convey, mortgage, improve, and use real and personal property in connection with its purpose;
(3) hire and fix the compensation and terms of employment of employees;
(4) sue and be sued;
(5) enter into contracts for any term or duration;
(6) contract with architects, engineers, financial and legal consultants, and others for professional services;
(7) contract with individuals, corporations, associations, authorities, and agencies for services and property, including the assumption of the liabilities and assets thereof;
(8) provide communications services for its district members, including the residential and business locations located therein; and also provide communications services for such other residential and business locations as its facilities and obligations may allow, provided such other locations are in a municipality that is contiguous with the town limits of a district member, and further provided such other locations do not have access to internet service capable of speeds that meet or exceed the current speed requirements for funding eligibility under the Connectivity Initiative, section 7515b of this title.
(9) contract with the State of Vermont, the United States of America, or any subdivision or agency thereof for services, assistance, and joint ventures;
(10) contract with any municipality for the services of any officers or employees of that municipality useful to it;
(11) promote cooperative arrangements and coordinated action among its members and other public and private entities;
(12) make recommendations for review and action to its members and other public agencies that perform functions within the region in which its members are located;
(13) exercise any other powers that are necessary or desirable for dealing with communications matters of mutual concern and that are exercised or are capable of exercise by any of its members;
(14) enter into financing agreements as provided by 24 V.S.A. § 1789 and chapter 53, subchapter 2, or other provisions of law authorizing the pledge of net revenue, or alternative means of financing capital improvements and operations;
(15) establish a budget to provide for the funding thereof out of general revenue of the district;
(16) appropriate and expend monies;
(17) establish sinking and reserve funds for retiring and securing its obligations;
(18) establish capital reserve funds and make appropriations for communications plant improvements and the financing;
(19) enact and enforce any and all necessary or desirable bylaws for the orderly conduct of its affairs for carrying out its communications purpose and for protection of its communications property;
(20) solicit, accept, and administer gifts, grants, and bequests in trust or otherwise for its purpose;
(21) exercise all powers incident to a public corporation;
(22) adopt a name under which it shall be known and shall conduct business; and
(23) establish an effective date of its creation.
(b) Before a district may sell any service using a communications plant subject to Public Utility Commission jurisdiction and for which a certificate of public good is required under chapter 5 or 13 of this title, it shall obtain a certificate of public good for such service. Each such certificate of public good shall be nonexclusive and shall not contain terms or conditions more favorable than those imposed on existing certificate holders authorized to serve the municipality.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 434, eff. July 1, 2024.)
§ 3055 Communications plant; sites
Each member shall make available for lease to the district one or more sites for a communications plant or components thereof within such member municipality.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3056 Limitations; taxes; indebtedness
(a) Notwithstanding any grant of authority in this chapter to the contrary, a district shall not accept funds generated by a member’s taxing or assessment power.
(b) Notwithstanding any grant of authority in this chapter to the contrary, a district shall not have the power to levy, assess, apportion, or collect any tax upon property within the district, nor upon any of its members, without specific authorization of the General Assembly.
(c) Notwithstanding any grant of authority in this chapter to the contrary, every issue of a district’s notes and bonds shall be payable only out of any revenues or monies of the district.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3057 Board authority
The legislative power and authority of a district and the administration and the general supervision of all fiscal, prudential, and governmental affairs thereof shall be vested in a legislative body known as the governing board, except as specifically provided otherwise in this chapter.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3058 Board composition
The district governing board shall be composed of one representative from each member and one or more alternates to serve in the absence of the designated representative.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3059 Appointment
Annually on or before the last Monday in April, the legislative body of each member shall appoint a representative and one or more alternates to the governing board for one-year terms. Appointments of representatives and alternates shall be in writing, signed by the chair of the legislative body of the appointing member, and presented to the clerk of the district. The legislative body of a member, by majority vote, may replace its appointed representative or alternate at any time and shall promptly notify the district clerk of the replacement. Initial appointments shall be made within 60 days following the vote to form a district under subsection 3051(b) of this chapter and initial terms may be for less than one year.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2019, No. 119 (Adj. Sess.), § 2, eff. June 23, 2020; 2023, No. 85 (Adj. Sess.), § 435, eff. July 1, 2024.)
§ 3060 Organizational meeting
Annually, on the second Tuesday in May following the appointments contemplated in section 3059 of this chapter or on a date specified in the district’s bylaws, the board shall hold its organizational meeting. At the meeting, the board shall elect from among its appointed representatives a chair and a vice chair, each of whom shall hold office for one year and until a successor is duly elected. The board’s initial organizational meeting shall be held within 90 days following the vote to form a district under subsection 3051(b) of this title.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2019, No. 119 (Adj. Sess.), § 3, eff. June 23, 2020; 2023, No. 85 (Adj. Sess.), § 436, eff. July 1, 2024; 2023, No. 99 (Adj. Sess.), § 3, eff. May 6, 2024.)
§ 3061 Quorum
For the purpose of transacting business, the presence of delegates or alternates representing more than 50 percent of district members shall constitute a quorum. However, a smaller number may adjourn to another date. Any action adopted by a majority of the votes cast at a meeting of the board at which a quorum is present shall be the action of the board, except as otherwise provided in this chapter.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3062 Voting
Each district member’s delegation shall be entitled to cast one vote.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3063 Term
Unless replaced in the manner provided in section 3059 of this chapter, a representative on the governing board shall hold office until his or her successor is duly appointed. Any representative or alternate may be reappointed to successive terms without limit.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3064 Vacancy
Any vacancy on the board shall be filled within 30 days after such vacancy occurs by appointment by the authority that appointed the representative or alternate whose position has become vacant. An appointee to a vacancy shall serve until the expiration of the term of the representative or alternate to whose position the appointment was made and may thereafter be reappointed.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3065 Rules of procedure
Except as otherwise provided by law, or as may be agreed upon by the board, Robert’s Rules of Order shall govern at all meetings.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3066 Compensation of representatives
Each district member may reimburse its representative to the governing board for expenses as it determines reasonable, except as provided in section 3072 of this chapter with respect to district officers.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3067 Officers; bond
(a) The officers of the district shall be the chair and the vice chair of the board, the clerk of the district, and the treasurer of the district. Prior to assuming their offices, officers may be required to post bond in such amounts as shall be determined by resolution of the board. The cost of such bond shall be borne by the district.
(b) The chair shall preside at all meetings of the board and shall make and sign all contracts on behalf of the district upon approval by the board. The chair shall perform all duties incident to the position and office as required by the general laws of the State.
(c) During the absence of or inability of the chair to render or perform his or her duties or exercise his or her powers, the same shall be performed and exercised by the vice chair and when so acting, the vice chair shall have all the powers and be subject to all the responsibilities hereby given to or imposed upon the chair.
(d) During the absence or inability of the vice chair to render or perform his or her duties or exercise his or her powers, the board shall elect from among its membership an acting vice chair who shall have the powers and be subject to all the responsibilities hereby given or imposed upon the vice chair.
(e) Upon the death, disability, resignation, or removal of the chair or vice chair, the board shall immediately elect a successor to the vacant office until the next annual meeting.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 437, eff. July 1, 2024.)
§ 3068 Clerk
The clerk of the district shall be appointed by the board and shall serve at its pleasure. The clerk is not required to be a member of the governing board. The clerk shall have the exclusive charge and custody of the records of the district and the seal of the district. The clerk shall record all votes and proceedings of the district, including district and board meetings, and shall prepare and cause to be posted and published all warnings of meetings. Following approval by the board, the clerk shall cause the annual report to be distributed to the legislative bodies of the district members. The clerk shall prepare and distribute any other reports required by State law and resolutions or rules of the board. The clerk shall perform all duties and functions incident to the office of secretary or clerk of a body corporate.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 438, eff. July 1, 2024.)
§ 3069 Treasurer
The treasurer of the district shall be appointed by the board and shall serve at its pleasure. The treasurer shall not be a member of the governing board. The treasurer shall have the exclusive charge and custody of the funds of the district and shall be the disbursing officer of the district. When authorized by the board, the treasurer may sign, make, or endorse in the name of the district all checks and orders for the payment of money and pay out and disburse the same and receipt. The treasurer shall keep a record of every obligation issued and contract entered into by the district and of every payment thereon. The treasurer shall keep correct books of account of all the business and transactions of the district and such other books and accounts as the board may require. The treasurer shall render a statement of the condition of the finances of the district at each regular meeting of the board and at such other times as shall be required of the treasurer. The treasurer shall prepare the annual financial statement and the budget of the district for distribution, upon approval of the board, to the legislative bodies of district members. The treasurer shall do and perform all of the duties appertaining to the office of treasurer of a body politic and corporate. The treasurer may delegate authority to perform any or all of the duties described in this section, provided such delegation is approved by the board or authorized in the district’s bylaws, and further provided the treasurer retains accountability and oversight authority for any such delegations. Upon removal or the treasurer’s termination from office by virtue of removal or resignation, the treasurer shall immediately pay over to the successor all of the funds belonging to the district and at the same time deliver to the successor all official books and papers.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 439, eff. July 1, 2024; 2023, No. 99 (Adj. Sess.), § 4, eff. May 6, 2024.)
§ 3070 Audit
Once the district becomes operational, the board shall cause an audit of the financial condition of the district to be performed annually by an independent professional accounting firm.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3071 Committees
The board has authority to establish one or more committees and grant and delegate to them such powers as it deems necessary. Members of an executive committee shall serve staggered terms and shall be board members. Membership on other committees established by the board is not restricted to board members.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3072 Compensation of officers
Officers of the district shall be paid from district funds such compensation or reimbursement of expenses, or both, as determined by the board.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3073 Recall of officers
An officer may be removed by a two-thirds vote of the board whenever, in its judgment, the best interests of the district shall be served.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 440, eff. July 1, 2024.)
§ 3074 Fiscal year
The fiscal year of the district shall commence on January 1 and end on December 31 of each year, unless otherwise specified in the district’s bylaws.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 99 (Adj. Sess.), § 5, eff. May 6, 2024.)
§ 3075 Budget
(a) Annually, on or before October 21 or on another date specified in the district’s bylaws, the board shall approve and cause to be distributed to the legislative body of each district member for review and comment an annual report of its activities, together with a financial statement, a proposed district budget for the next fiscal year, and a forecast presenting anticipated year-end results. The proposed budget shall include reasonably detailed estimates of:
(1) deficits and surpluses from prior fiscal years;
(2) anticipated expenditures for the administration of the district;
(3) anticipated expenditures for the operation and maintenance of any district communications plant;
(4) payments due on obligations, long-term contracts, leases, and financing agreements;
(5) payments due to any sinking funds for the retirement of district obligations;
(6) payments due to any capital or financing reserve funds;
(7) anticipated revenues from all sources; and
(8) such other estimates as the board deems necessary to accomplish its purpose.
(b) Coincident with a regular meeting thereof, the board shall hold a public hearing on or before November 15 of each year or on another date specified in the district’s bylaws to receive comments from the legislative bodies of district members and hear all other interested persons regarding the proposed budget. Notice of such hearing shall be given to the legislative bodies of district members at least 15 days prior to such hearing. The board shall give consideration to all comments received and make such changes to the proposed budget as it deems advisable.
(c) Annually, on or before December 15 or on another date specified in the district’s bylaws, the board shall adopt the budget and appropriate the sums it deems necessary to meet its obligations and operate and carry out the district’s functions for the next ensuing fiscal year.
(d) Actions or resolutions of the board for the annual appropriations of any year shall not cease to be operative at the end of the fiscal year for which they were adopted. Appropriations made by the board for the various estimates of the budget shall be expended only for such estimates, but by majority vote of the board the budget may be amended from time to time to transfer funds between or among such estimates. Any balance left or unencumbered in any budget estimate, or the amount of any deficit at the end of the fiscal year, shall be included in and paid out of the operating budget and appropriations in the next fiscal year. All budget amendments shall be reported by the district treasurer to the legislative bodies of each district member within 14 days following the end of the fiscal year.
(e) Financial statements and audit results shall be delivered to the legislative bodies of each district member within 10 days following delivery to the board.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2015, No. 130 (Adj. Sess.), § 5e, eff. May 25, 2016; 2023, No. 85 (Adj. Sess.), § 441, eff. July 1, 2024; 2023, No. 99 (Adj. Sess.), § 6, eff. May 6, 2024.)
§ 3076 Indebtedness
The board may borrow money through the issuance of notes of the district for the purpose of paying current expenses of the district. Such notes shall mature within one year, and may be refunded in the manner provided by law, and shall be payable solely from the district’s operating revenues. The governing board may borrow money in anticipation of the receipt of grants-in-aid from any source and any revenues. Such notes shall mature within one year, but may be renewed as provided by general law.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3077 Pledge of revenues
(a) When the board, at a regular or special meeting called for such purpose, determines by resolution passed by a vote of a majority of members present and voting that the public interest or necessity demands communications plant improvements, or a long-term contract, and that the cost of the same will be too great to be paid out of the ordinary annual income and revenue of the district, the board may pledge communications plant net revenues and enter into long-term contracts to provide for such improvements. A “long-term contract” means an agreement in which the district incurs direct or conditional obligations for which the costs are too great to be paid out of the ordinary annual income and revenues of the district, in the judgment of the board. It includes an agreement authorized under 24 V.S.A. § 1789, wherein performance by the district is conditioned upon periodic appropriations. The term “communications plant improvements” includes improvements that may be used for the benefit of the public, whether or not publicly owned or operated.
(b) The pledge of communications plant net revenues, and other obligations allowed by law, may be authorized for any purpose permitted by this chapter, 24 V.S.A. chapter 53, subchapter 2, and chapter 54, or any other applicable statutes. A communications plant is declared to be a project within the meaning of 24 V.S.A. § 1821(4).
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3078 Sinking and reserve funds
(a) The board may establish and provide for sinking and reserve funds, however denominated, for the retirement and security of pledges of communications plant net revenue, or for long-term contracts. When so established, such funds shall be kept intact and separate from other monies at the disposal of the district, and shall be accounted for as a pledged asset for the purpose of retiring or securing such obligations or contracts. The cost of payments to any sinking or reserve fund shall be included in the annual budget of the district.
(b) The board shall establish and provide for a capital reserve fund to pay for communications plant improvements, replacement of worn out buildings and equipment, and planned and unplanned major repairs in furtherance of the purpose for which the district was created. Any such capital reserve fund shall be kept in a separate account and invested as are other public funds and shall be expended for such purposes for which established. The cost of payments to any capital reserve fund shall be included in the annual budget of the district.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3079 Service fees
The board may from time to time establish and adjust service, subscription, access, and utility fees for the purpose of generating revenues from the operation of its communications plant.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3080 Special meetings
(a) The board may call a special meeting of the district when it deems it necessary or prudent to do so and shall call a special meeting of the district when action by the voters is necessary under this chapter. In addition, the board shall call a special meeting upon receipt of a petition signed by at least five percent of the registered voters within the district, or upon request of at least 25 percent of district members evidenced by formal resolutions of the legislative bodies of such members or by petitions signed by at least five percent of the member’s registered voters. The board may rescind the call of a special meeting called by it but not a special meeting called as provided in this subsection. The board may schedule the date of such special meetings to coincide with the date of annual municipal meetings, primary elections, general elections, or similar meetings when the electorate within the district members will be voting on other matters.
(b) At any special meeting of the district, voters of each district member shall cast their ballots at such polling places within the municipality of their residence as shall be determined by the board of the district in cooperation with the boards of civil authority of each district member.
(c) Not less than three nor more than 14 days prior to any special meeting, at least one public hearing shall be held by the board at which time the issues under consideration shall be presented and comments received. Notice of such public hearing shall include the publication of a warning in a newspaper of general circulation in the district at least once a week, on the same day of the week, for three consecutive weeks, the last publication not less than five nor more than 10 days before the public hearing. Such notice may be included in the warning called for in subsection (d) of this section.
(d) The board shall warn a special meeting by filing a notice with the clerk of each district member and by posting a notice in at least five public places in each municipality in the district not less than 30 nor more than 40 days before the meeting. In addition, the warning shall be published in a newspaper of general circulation in the district once a week on the same day of the week for three consecutive weeks before the meeting, the last publication to be not less than five nor more than 10 days before the meeting.
(e) The original warning of any special meeting of the district shall be signed by a majority of the board and shall be filed with the clerk before being posted.
(f) The posted and published warning notification shall include the date, time, place, and nature of the meeting. It shall, by separate articles, specifically indicate the business to be transacted and the questions to be voted upon.
(g) The Australian ballot system shall be used at all special meetings of the district when voting is to take place. Ballots shall be commingled and counted under the supervision of the district clerk.
(h) All legal voters of the district members shall be legal voters of the district. The district members shall post and revise checklists in the same manner as for municipal meetings prior to any district meeting at which there will be voting.
(i) At all special meetings, the provisions of 17 V.S.A. chapter 51 regarding election officials, voting machines, polling places, absentee voting, process of voting, count and return of votes, validation, recounts and contest of elections, reconsideration or rescission of vote, and jurisdiction of courts shall apply except where clearly inapplicable. The clerk shall perform the functions assigned to the Secretary of State under that chapter. The Washington Superior Court shall have jurisdiction over petitions for recounts. Election expenses shall be borne by the district, unless within 30 days following the date of such resolution there is filed with the clerk of the district a request to call a special district meeting under this section to consider a proposition to rescind such resolution.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 442, eff. July 1, 2024.)
§ 3081 Withdrawal of a member municipality
A district member may withdraw from the district upon the terms and conditions specified in this section:
(1) Prior to the district pledging communications plant net revenues, or entering into a long-term contract, or contract subject to annual appropriation, a district member may vote to withdraw in the same manner as the vote for admission to the district. If a majority of the voters of a district member present and voting at a meeting duly warned for this purpose votes to withdraw from the district, the vote shall be certified by the clerk of that municipality and presented to the board. Thereafter, the board shall give notice to the remaining district members of the vote to withdraw and shall hold a meeting to determine if it is in the best interests of the district to continue to exist. Representatives of the district members shall be given an opportunity to be heard at such meeting together with any other interested persons. After a the meeting, the board may declare the district dissolved or it may declare that the district shall continue to exist despite the withdrawal of such member. The membership of the withdrawing municipality shall terminate after the vote to withdraw.
(2) After the district has pledged communications plant net revenues, or entered into a long-term contract or contract subject to annual appropriations, a district member may vote to withdraw in the same manner as the vote for admission to the district.
(Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 443, eff. July 1, 2024.)
§ 3082 Admission of district members
The board may authorize the inclusion of additional district members in the communications union district upon such terms and conditions as it in its sole discretion shall deem to be fair, reasonable, and in the best interests of the district. The legislative body of any nonmember municipality that desires to be admitted to the district shall make application for admission to the board. The board shall determine the financial, economic, governance, and operational effects that are likely to occur if such municipality is admitted and thereafter either grant or deny authority for admission of the petitioning municipality. If the board grants such authority, it shall also specify any terms and conditions, including financial obligations, upon which such admission is predicated. Upon resolution of the board, such applicant municipality shall become and thereafter be a district member.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3082a Merger
(a) Authority. Notwithstanding 24 V.S.A. chapter 49, a district may merge with one or more other districts as provided in this section. Such merger shall include all member municipalities of each of the merging districts. Section 3053 of this chapter applies to a new combined district formed pursuant to this section.
(b) Preliminary merger plan.
(1) The merging districts shall prepare a preliminary merger plan. The plan shall include provisions relating to structure, organization, functions, operation, finance, assets, rights, liabilities, contracts, consents required by law, or regulation, including adequate provisions for the satisfaction or assumption of all obligations of the district members concerned. More specifically, the plan shall include provisions clearly stating that, upon the effective date of the merger:
(A) all assets of whatever kind, owned, claimed, or held by each district shall become vested in and become assets owned by the combined district without any further act, deed, or instrument being necessary; and
(B) the combined district shall assume and be obligated to pay or otherwise perform each and every lawful obligation, debt, claim, bonded indebtedness, and other liability of each district without any further act, deed, or instrument being necessary.
(2) Upon approval of the preliminary merger plan by three-quarters vote of a quorum of the board of each of the merging districts, the notice and hearing requirements of subsection (c) of this section shall be implemented.
(c) Notice and hearing.
(1) Not less than 45 days prior to the public hearing required by subdivision (2) of this subsection, copies of the preliminary merger plan shall be distributed to the legislative bodies of the member municipalities of the merging districts.
(2) A public hearing on the plan shall be held in each merging district not less than 30 days prior to the vote referenced in subsection (d) of this section. Notice of each hearing shall be distributed by member municipalities by local posting and electronic communications. In addition, each district shall publish notice in newspapers and other paid media relevant to its service territory. The last notice shall appear not later than three days before the final public hearing required by this subdivision.
(3) Not less than 30 days prior to the vote referenced in subsection (d) of this section, notice of the proposed merger shall be distributed to each known creditor of the merging districts and such other entities as may be required by law, regulation, or contract.
(d) Vote of approval. Subsequent to the public hearings required by subsection (c) of this section, a joint committee shall prepare a final merger plan for presentation to the boards of the merging districts. The plan shall take effect upon approval by two-thirds vote of a quorum of the board of each of the merging districts.
(e) Organizational meeting. The combined district’s initial organizational meeting shall be held within 90 days following the final vote to merge required under subsection (d) of this section.
(f) Notice to Secretary of State. The district’s governing board shall notify the Secretary of State of the merger as provided in subsection 3053(a) of this chapter and shall provide notice to such other entities as may be required by law.
(Added 2023, No. 99 (Adj. Sess.), § 2, eff. May 6, 2024.)
§ 3083 Dissolution
(a) If the board by resolution approved by two-thirds of all the votes entitled to be cast determines that it is in the best interests of the public, the district members, and the district that such district be dissolved, and if the district then has no outstanding obligations under pledges of communications plant net revenue, long-term contracts, or contracts subject to annual appropriation, or will have no such debt or obligation upon completion of the plan of dissolution, it shall prepare a plan of dissolution and thereafter adopt a resolution directing that the question of such dissolution and the plan of dissolution be submitted to the voters of the district at a special meeting thereof duly warned for such purpose. If a majority of the voters of the district present and voting at such special meeting shall vote to dissolve the district and approve the plan of dissolution, the district shall cease to conduct its affairs except insofar as may be necessary for the winding up thereof. The board shall immediately cause a notice of the proposed dissolution to be mailed to each known creditor of the district and to the Secretary of State and shall proceed to collect the assets of the district and apply and distribute them in accordance with the plan of dissolution.
(b) The plan of dissolution shall:
(1) identify and value all unencumbered assets;
(2) identify and value all encumbered assets;
(3) identify all creditors and the nature or amount of all liabilities and obligations;
(4) identify all obligations under long-term contracts and contracts subject to annual appropriation;
(5) specify the means by which assets of the district shall be liquidated and all liabilities and obligations paid and discharged, or adequate provision made for the satisfaction thereof;
(6) specify the means by which any assets remaining after discharge of all liabilities shall be liquidated if necessary; and
(7) specify that any assets remaining after payment of all liabilities shall be apportioned and distributed among the district members according to a formula based upon population.
(c) When the plan of dissolution has been implemented, the board shall adopt a resolution certifying that fact to the district members whereupon the district shall be terminated, and notice thereof shall be delivered to the Secretary of the Senate and the Clerk of the House of Representatives in anticipation of confirmation of dissolution by the General Assembly.
(Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3084 Confidentiality; legislative intent
(a) The purpose of this section is to clarify that any records or information produced or acquired by a district that are trade secrets or confidential business information shall be exempt from public inspection and copying pursuant to 1 V.S.A. § 317(c)(9).
(b) For purposes of this section, “confidential business information” includes the operational records of any internet service provider under contract with a district for the construction of a broadband network or to provide broadband service, or both, as well as detailed information about the district’s deployment plans if public disclosure could put the district at a competitive disadvantage. Business records of a district carry a presumption of confidentiality. The exemption and presumption specified in this section shall not, however, apply to district governance records and information.
(Added 2021, No. 71, § 11, eff. June 8, 2021; amended 2023, No. 99 (Adj. Sess.), § 7, eff. May 6, 2024.)
§ 3085 Certificate of good standing
(a) A district may apply to the Secretary of State for a certificate of good standing.
(b) A certificate of good standing shall include:
(1) the official name of the district;
(2) that the district is duly formed pursuant to this chapter;
(3) the date of the district’s formation;
(4) that the fee required by this section has been paid; and
(5) that a plan of dissolution for the district has not been approved pursuant to section 3083 of this chapter.
(c) Subject to any qualification stated in the certificate, a certificate of good standing issued by the Secretary of State may be:
(1) relied upon as conclusive evidence that the district is in existence and is authorized to deliver communications services and operate a communications plant pursuant to this chapter; and
(2) taken as prima facie evidence of the facts stated in the certificate.
(d) A district that applies for a certificate of good standing under this section shall pay to the Secretary of State a nonrefundable application fee of $25.00.
(Added 2023, No. 78, § E.232, eff. July 1, 2023.)
Chapter 83 Consolidation of Municipal and Cooperative Districts
§ 4001 Definitions
As used in this chapter, unless the context otherwise requires:
(1) “Cooperative” means a corporation organized under, or otherwise subject to, chapter 81 of this title.
(2) “Electric facilities” means any facilities necessary or incidental to the generation of electric power and energy or the transmission thereof, including electric generating units, electric generating plants, electric transmission lines, plant sites, rights-of-way, and real and personal property and equipment, and rights of every kind useful in connection therewith.
(3) “Municipal electric utility” means any city, town, village, or department thereof, within this State, authorized to and engaged in the manufacture, distribution, purchase, and sale of electricity in this State.
(4) “Utility” is intended to refer to cooperatives, municipal utilities, as defined, and private electric utilities.
(Added 1977, No. 97; amended 2023, No. 85 (Adj. Sess.), § 444, eff. July 1, 2024.)
§ 4002 Agreements by cooperatives and municipal electric utilities
Any cooperative or municipal electric utility shall have:
(1) authority to participate with other utilities in entering into agreements for the planning, financing, acquisition, construction, ownership, operation, and maintenance of jointly owned or operated electric facilities and in connection therewith to construct, acquire, own, operate, and maintain electric facilities, for the purpose of providing a supply of power and energy to the cooperatives and municipal electric utilities entering into any such agreements, including the right to sell or exchange any surplus produced from such facilities to others;
(2) authority to act in participation with other such utilities in arranging for the purchase of supplies of capacity and energy from other utilities, either within or outside the State of Vermont, including purchases from private electric utilities, municipal electric utilities, cooperatives, associations of utilities, or public authorities;
(3) authority, in participation with other utilities, to enter into contracts for the transmission of such supplies of capacity or energy generated either by them or purchased from others;
(4) authority, in participation with other utilities, to participate in facilities, projects, and programs for the purposes of modifying demand for electric capacity or energy through conservation or load management;
(5) authority, in participation with other utilities, to employ attorneys, engineers, technicians, and any other personnel as said utilities may deem necessary or proper to carry out any of the foregoing powers;
(6) authority to allow the Vermont Public Power Supply Authority to provide all requirements service for a stated period of time pursuant to subdivision 5012(15) of this title;
(7) authority to otherwise do all lawful acts and things necessary or incidental to the exercise of the authority granted in this chapter.
(Added 1977, No. 97; amended 1989, No. 112, § 3, eff. June 22, 1989; 1991, No. 170 (Adj. Sess.), § 2, eff. May 15, 1992.)
§ 4002a All requirements contracts
(a) For purposes of this section, and subdivisions 4002(6) and 5012(15) of this title, the term “all requirements service” shall mean service pursuant to a contract by which the Vermont Public Power Supply Authority assumes responsibility for power supply arrangements and other arrangements pertaining to the procurement and transmission of electric energy and capacity, on behalf of those systems that are signatories to a contract under this section, and subdivisions 4002(6) and 5012(15) of this title, and such contract may contain provisions consistent with and shall be subject to the provisions of section 5013 of this title in the same manner as a capacity and output contract. Such contract may include provisions under which the Vermont Public Power Supply Authority will provide demand-side management programs and least-cost integrated plans for the contracting utility.
(b) Prior to entering into such a contract, the municipal or cooperative utility must obtain:
(1) Approval, upon petition of the utility or of the Authority, by the Public Utility Commission of the proposed arrangement, which shall be given upon findings that the proposed arrangement will promote the general good of the ratepayers of the utility or utilities and is consistent with least-cost integrated planning principles. The proposed contract reflecting the arrangement shall be filed with the Commission and the Department at least 45 days prior to its intended execution, and the Department shall make its recommendation as to whether it accepts or does not accept the contract within 30 days following the date on which the proposed contract was filed. Should the Department oppose the contract, or the Commission on its own motion determine that investigation into the contract is appropriate, the Commission shall hear evidence on the matter and shall determine, within seven months of the intended execution date, whether the contract promotes the general good as described in this subdivision. Failure of the Commission to act within seven months shall be deemed to constitute approval of the contract.
(2) Approval of the arrangement, within 90 days following approval or failure to act by the Public Utility Commission under subdivision (1) of this subsection, by a majority of persons voting in a duly warned election called by the cooperative or municipality for the purpose of considering such arrangement.
(c) Nothing in this section or subdivision 4002(6) of this title shall be construed as precluding entry by municipal or cooperative utilities into letters of intent or other conditional arrangements for ultimate entry into a contract contemplated by this section and subdivision 5012(15) of this title.
(d) Any contract under this section shall contain provisions allowing for its termination upon appropriate prior notice, with due consideration for the equitable allocation of obligations incurred pursuant to subdivision 5012(6) of this title during the period of delegated authority. Where a petition signed by not less than five percent of the qualified voters of a municipality or members of a cooperative, requesting termination of the participation of the municipality or cooperative in an all requirements contract, is filed with the clerk of the municipality or the board of directors of the cooperative, the legislative body of the municipality or the board of directors of the cooperative shall provide for a binding vote of the municipality or cooperative in accordance with this subsection within 60 days following filing, at an annual or special meeting duly warned for that purpose.
(e) No contract under this section reduces the responsibility of a contracting utility to develop cost-effective demand-side and supply-side resources in accordance with an approved least-cost integrated plan. However, the utility may delegate authority to the Vermont Public Power Supply Authority to prepare, file, and seek approval of least-cost integrated resource plans on behalf of the contracting utility.
(Added 1991, No. 170 (Adj. Sess.), § 3, eff. May 15, 1992; amended 2023, No. 85 (Adj. Sess.), § 445, eff. July 1, 2024.)
§ 4003 Implementing powers
Without limiting the general scope and application of section 4002 of this chapter, each participating utility shall have the right and power:
(1) To use its means and assets for the purposes of exercising the authority granted by section 4002 of this chapter, including, as to municipal electric utilities, the right and power to pledge the credit of the municipality.
(2) To issue bonds and other securities to raise funds for those purposes in the same way and to the same extent and subject to all of the conditions that would apply if the utility’s interest in such agreements, actions, and contracts were whole and entire.
(3) To acquire, for the use and benefit of all participating utilities, by purchase or through the exercise of the power of eminent domain, lands, easements, and properties for the purpose of jointly owned electric facilities, and transfer or convey lands, easements, and properties or interests, or otherwise to cause those lands, easements, and properties, or interests, to be vested in other participating utilities to the extent and in the manner agreed between the participating utilities. In all cases in which a participating utility exercises the right and power of eminent domain conferred by statute, it shall be controlled by the law governing condemnation by corporate public utilities in this State, and the right and power of eminent domain conferred shall include the right and power to take fee title in land so condemned, except that no participating utility has the right or power to take by the exercise of the power of eminent domain any electric facilities, or interests, belonging to any other municipal electric utility, electric cooperative, or private utility, except as provided by chapter 79 of this title.
(4) To form a public service corporation with one or more other utilities and to hold stock and operate the same as a public utility as a means of carrying out the purposes of this chapter. However, the formation of any such public service corporation and its operation shall be subject to the requirements of this title governing the formation and operation of public service corporations.
(Added 1977, No. 97; amended 2023, No. 85 (Adj. Sess.), § 446, eff. July 1, 2024.)
§ 4004 Taxes
Electric facilities constructed or otherwise acquired under the terms of this chapter shall be subject to taxation by the municipality within which the same are located in the same manner as like facilities privately owned.
(Added 1977, No. 97.)
§ 4005 Insurance
Each participating utility shall have the right and power to enter into contracts or specialized insurance appertaining to property and risks in connection with an incident to the ownership, operation, and maintenance of electric facilities, in addition to the usual forms of available insurance. Each participating utility shall be authorized to enter into contracts or insurance for the use and benefit of each of the other participating utilities as though the insurance was for its sole benefit and to cause the rights of the other participating utilities to be protected by contracts according to their respective undivided interests or entitlements under applicable agreements between the participating utilities.
(Added 1977, No. 97.)
§ 4006 Construction of chapter
Notwithstanding any other provision of this chapter, nothing in this chapter shall have the effect of, or be construed as, altering, amending, or repealing the statutory purposes provided for by any statute enacted by the General Assembly of Vermont pertaining to the creation, establishment, or operation of municipal electric utilities or electric cooperatives.
(Added 1977, No. 97; amended 2023, No. 85 (Adj. Sess.), § 447, eff. July 1, 2024.)
§ 4007 Severability
If any provision of this chapter or the application thereof to any person or circumstance shall be held to be invalid, the remainder of the chapter, and the application of such provision to other persons or circumstances shall not be affected thereby, and to this end the provisions of this chapter are declared to be severable.
(Added 1977, No. 97.)
Chapter 84 Vermont Public Power Supply Authority
Subchapter 1 General Provisions
§ 5001 Definitions
In this chapter, the following words and terms, unless the context clearly indicates a different meaning, shall have the following meaning:
(1) “Authority” means the Vermont Public Power Supply Authority created by this chapter.
(2) “Cooperative” means a corporation organized under, or otherwise subject to, chapter 81 of this title.
(3) “Legislative body” means the mayor and board of aldermen of a city, the selectboard of a town, and the trustees or light commissioners of a village.
(4) “Municipality” means any city, town, or village within the State of Vermont, which is authorized to and engaged in the manufacture, distribution, purchase, or sale of electricity in the State of Vermont.
(5) “Person” shall be as defined in section 3001 of this title.
(6) “Project” means any plant, works, system, facilities, and real and personal property of any nature or any interest in any of them, together with all parts of them and appurtenances to them, used or useful in the generation, production, transmission, purchase, sale, exchange, or interchange of electric energy, and together with any capacity or output from them.
(7) “Utility” means any public utility as defined in chapter 83 of this title.
(Added 1979, No. 78, § 3.)
Subchapter 2 Establishment and Organization
§ 5011 Creation of Vermont Public Power Supply Authority
(a) Vermont Public Power Supply System, Inc., a corporation formed under the provisions of subdivision 4003(4) of this title, is hereby declared and established to be a body politic and corporate with duties and powers as are set forth in this chapter, to be known as “Vermont Public Power Supply Authority” to carry out the provisions of this chapter. The Authority is constituted a public instrumentality exercising public and essential governmental functions, and the exercise by the authority of the powers conferred by this chapter shall be deemed and held to be the performance of an essential governmental function of the State.
(b) The Authority shall consist of those municipalities and cooperatives that by January 31, 1979 elected to become a member of Vermont Public Power Supply System, Inc., in accordance with the terms of its bylaws, and those Vermont municipalities and cooperatives that shall later elect to become members of the Authority in accordance with the rules and regulations of the Authority established by it. These rules shall be calculated to permit membership without an undue burden on new members, but with regard to the benefits contributed to the Authority by its original members.
(c) The powers of the Authority shall be exercised by a board of directors. The Board of Directors shall consist of one director from each member municipality or member cooperative, who shall be elected by the legislative body of each member municipality or the board of trustees of each member cooperative. Each municipality or cooperative may also elect an alternate director to serve in the absence or disability of its director. The term of office of a director shall be for one year coincident with the fiscal year of the Authority or until a successor director has been duly elected and qualified. Any director may be removed at the pleasure of the legislative body of the municipality or cooperative that elected that director, upon notice to the authority and the election of a successor director. The Board of Directors of the Authority shall adopt bylaws or other rules for the management of the affairs of the Authority and carrying out the purpose of this chapter. The Board of Directors shall also elect one of its member directors as chair of the Authority and shall also elect a treasurer and secretary who may be directors. It may elect other officers and agents as necessary to perform those acts commonly delegated to the officers and agents of a business corporation and shall set their compensation.
(d) Notwithstanding any law or charter provision to the contrary, a director or officer of the Authority who is also an officer, employee, or member of a legislative body of a municipality or other public body or the State shall not be precluded from voting or acting on behalf of the Authority on a matter involving the municipality or public body or the State. Neither shall service as a director or officer of the Authority constitute a conflict of interest for an officer, employee, or member of a municipality or public body or the State.
(e) The Authority and its existence shall continue as long as it shall have notes, bonds, or other obligations or indebtedness outstanding, including notes, bonds, or other obligations or indebtedness hereafter issued or incurred, and until its existence is terminated by law. The net earnings of the Authority, beyond that necessary for retirement of its notes, bonds, or other obligations or indebtedness or to implement the public purposes and programs authorized in this chapter, shall not inure to the benefit of any person other than the State. Upon termination of the existence of the Authority, title to all of the property owned by the Authority, including any net earnings of the Authority, shall vest in the State. The State reserves the right at any time to alter, amend, repeal, or otherwise change the structure, organization, programs, or activities of the Authority, including the power to terminate the Authority, subject to any limitation on the impairment of the obligation of any contract or contracts entered into by the Authority.
(Added 1979, No. 78, § 3; amended 2023, No. 85 (Adj. Sess.), § 448, eff. July 1, 2024.)
§ 5012 General powers and duties
The Authority shall have all of the powers necessary and convenient to carry out this chapter, including those general powers provided a business corporation by 11A V.S.A. § 3.02, and including the power:
(1) To receive, administer, and comply with the conditions and requirements respecting any gift, grant, donation, or appropriation of any property or money.
(2) To acquire by purchase, lease, gift, or otherwise, or to obtain options for the acquisition of any property, real or personal, improved or unimproved, tangible or intangible, including an interest in land of less than the fee.
(3) To sell, lease, mortgage, exchange, transfer, or otherwise dispose of any real or personal property or interest in them, or to grant options for any of those purposes.
(4) To pledge or assign any money, fees, charges, or other revenues of the Authority and any proceeds derived by the Authority from the sale of property, or from insurance or condemnation awards.
(5) To employ personnel who shall serve at the pleasure of the directors.
(6) To borrow money and issue its notes and bonds as provided in this chapter.
(7) To purchase electric power and energy, including all or a portion of the capacity and output of one or more specific projects.
(8) To sell electric power and energy and other products of projects to other utilities within the State, and to any person or utility outside the State. These other utilities are authorized to purchase electric power and energy sold by the Authority; provided, however, that nothing in this chapter shall be construed to authorize resale of electric power and energy purchased from the Authority except as otherwise authorized by law.
(9) To enter into joint ownership contracts and tenancies in common with any Vermont utility, whether or not such utility is a member of the Authority. With the consent of the Authority, utilities that are not members of the Authority shall be eligible to participate in projects sponsored by the Authority.
(10) To contract for the use of transmission and distribution facilities owned by others for the delivery to purchasers of electric power and energy sold by the Authority. These other owners are authorized to enter into these contracts with the Authority.
(11) To contract with respect to the purchase, sale, delivery, exchange, interchange, wheeling, pooling, transmission, or use of electric power and energy and to otherwise participate in intrastate, interstate, and international arrangements with respect to those matters, including a New England power pool as defined by chapter 14 of this title, except that this power shall not be exercised so as to conflict with or diminish in any way the powers and obligations of the Public Utility Commission under this title regarding planning and entering into agreements for the supply of electric power and energy.
(12) Jointly with utilities or on its own, to plan, finance, acquire, construct, improve, purchase, operate, maintain, use, share costs of, own, lease, sell, dispose of, or otherwise participate in projects or portions of projects, the product or service from them, securities or obligations issued or incurred in connection with the financing of them, or research and development relating to them, within or outside the State. It may also enter into and perform contracts with any person with respect to the foregoing. If the Authority acquires or owns an interest as a tenant in common with others in any projects within the State, the surrender or waiver by the other property owner of its right to partition the property for a period not exceeding the period for which the property is used or useful for electric utility purposes shall not be invalid and unenforceable by reason of length of the period, or as unduly restricting the alienation of such property.
(13) To apply to the appropriate agencies of the State, other states, the United States, and to any other proper agency for permits, licenses, certificates, or approvals that may be necessary, and to construct, maintain, and operate projects in accordance with these licenses, permits, certificates, or approvals.
(14) To apply and contract for and to expend assistance from the United States or other sources, whether in form of a grant or loan or otherwise.
(15) To enter into a contract or contracts to provide all requirements service, as defined in section 4002a of this title, with some or all of its member systems, upon receipt by the systems entering into such contract of the approvals required by section 4002a.
(16) Upon entry into a contract with member systems pursuant to subdivision (15) of this section, to seek and obtain approval, in its own name, for projects and contracts otherwise requiring approval under section 248 or 2902 of this title.
(17) To make and execute all contracts and agreements and other instruments necessary or convenient in the exercise of the powers and functions of the Authority under this chapter.
(18) To enter into contracts determined by the Authority to be useful for the prudent management of its assets, purchases, funds, debts, or fuels, including interest rate or other swaps, option contracts, future contracts, forward purchase contracts, hedging contracts, and leases or other risk management instruments to the full extent that a business corporation is authorized to enter into such contracts.
(19) To acquire stock, shares, securities, membership units, or other equity or participation interests in entities that directly or indirectly construct, own, or operate electric generation or transmission facilities within or outside the State to the full extent that a business corporation is authorized to acquire such interests.
(20) To do all things necessary, convenient, or desirable to carry out the purposes of this chapter or the powers expressly granted or necessarily implied in this chapter.
(Added 1979, No. 78, § 3; amended 1991, No. 170 (Adj. Sess.), § 4, eff. May 15, 1992; 2009, No. 78 (Adj. Sess.), § 39, eff. April 15, 2010; 2023, No. 85 (Adj. Sess.), § 449, eff. July 1, 2024.)
§ 5013 Special powers
(a) The Authority may contract to sell, and member municipalities and cooperatives and other utilities may contract to purchase, all or a portion of the capacity and output of one or more specific projects including contracts providing for planning, engineering, design, acquiring sites or options for sites, and expenses preliminary or incidental to such project. This contract may be for the life of a project or other term or for an indefinite period; may provide for the payment of unconditional obligations imposed without regard to whether a project is undertaken, completed, operable, or operating and despite the suspension, interruption, interference, reduction, or curtailment of the output of a project; and may contain provisions for prepayment, nonunanimous amendment, arbitration, delegation, and other matters deemed necessary or desirable to carry out its purposes. This contract may also provide, in the event of default by any party to the contract in the performance of its obligations under the contract, for other parties to assume the obligations and succeed to the rights and interests of the defaulting party, pro rata or otherwise as may be agreed upon in the contract.
(b) Neither the obligations of the Authority nor the obligations of any member municipality or cooperative or other utility under any contract authorized by subsection (a) of this section shall be deemed to constitute an indebtedness or a lending of credit of the Authority or any such municipality, cooperative, or other utility or shall be included in computing the borrowing capacity of the Authority, or any such municipality, cooperative, or other utility. These obligations of such municipalities and cooperatives shall be treated as expenses of operating their electric plants. In the case of municipalities, these obligations shall constitute special obligations of such municipalities payable solely from the revenues and other monies derived by them from their electric departments or systems. The liability of these municipalities from other funds is limited to obligations undertaken by them to pay for the electric power and energy used by them.
(c) A municipality or cooperative shall be obligated to fix, revise, and collect fees and charges for electric power and energy and other services, facilities, and commodities furnished or supplied through its electric system at least sufficient to provide revenues adequate to meet its obligations under any such output and capacity contract and to pay all other amounts payable from or constituting a charge and lien upon those revenues.
(d) Any member municipality or cooperative may convey, transfer, or assign to the Authority, with or without consideration, any real or personal property or interest in either, including a leasehold estate.
(e) The Authority and any member municipality or cooperative or other utility (whether or not such utility is a member of the Authority) that is acting pursuant to a contract with the Authority may expend its funds, including the proceeds of its notes, bonds, or other obligations, for the purposes of modifying demand for electric capacity or energy through conservation or load management by participation in such facilities, projects, and programs as the Board of the Authority or the legislative body or other governing body or the governing board of the member municipality or cooperative or other utility, as the case may be, determines will effectively accomplish such purposes. Such facilities, projects, and programs may include providing or financing facilities or projects for conservation or load management, which may be: owned or operated by the Authority or any member municipality or cooperative or other utility or by others; leased or licensed by the Authority or any member municipality or cooperative or other utility to others, or financed by loans by the Authority or any member municipality or cooperative or other utility to others, in either case on such terms and conditions as the Board of the Authority or the legislative body or other governing body or the governing board of the member municipality or cooperative or other utility, as the case may be, may determine. Any member municipality or cooperative or other utility may issue its notes, bonds, or other obligations pursuant to any statutory authority conferring such power for carrying out the purposes of this subsection.
(Added 1979, No. 78, § 3; amended 1989, No. 112, §§ 2, 4, eff. June 22, 1989; 2009, No. 78 (Adj. Sess.), § 40, eff. April 15, 2010.)
§ 5014 Acquisition of property
The Authority may acquire real property, or any interest in it, by eminent domain in accordance with the provisions of sections 110 through 124 of this title; provided, however, that:
(1) No property already appropriated to public use shall be so taken except to the extent and for the purposes permitted by sections 110 through 124 of this title.
(2) No facility for the generation, transmission, or distribution of electric power and energy owned by any person shall be so taken except for the purpose of acquiring property or rights in it in order to permit the crossing of existing transmission or distribution facilities. Any taking under sections 110 through 124 of this title shall be governed by the provisions of these sections that are applicable to public utilities.
(3) No site for a project for which any utility had filed an application for a preliminary permit or a license from the Federal Energy Regulatory Commission on or before November 1, 1977 shall be so taken until such time, if ever, that the application is denied, and no further renewals or appeals are available to the utility, or the utility abandons its application, permit, or license.
(Added 1979, No. 78, § 3.)
§ 5015 Tax exemption
(a) All bonds or notes issued under this chapter are issued by a body corporate and politic of this State and for an essential public and governmental purpose. Those bonds and notes, and the interest on them and the income from them, including any profit on their sale, and all activities of the Authority and fees, charges, funds, revenues, incomes, and other monies of the Authority whether or not pledged or available to pay or secure the payment of those bonds or notes, or interest on them, are exempt from all taxation, franchise fees, or special assessments of whatever kind except for transfer, inheritance, and estate taxes.
(b) The Authority is not required to make or file any reports, statements, or informational returns required of any utility or other bodies corporate except as provided in this chapter.
(c) Real and personal property, situated within the State and owned by the Authority shall be exempt from property taxation. The Authority shall, in lieu of property taxes, pay to any governmental body authorized to levy local property taxes the amount that would be assessable as local property taxes on the real and tangible personal property if that property were the property of a utility. These payments shall be due, and bear interest if unpaid, as in the case of taxes on the property of a utility. For purposes of these payments in lieu of taxes, the assessors of the taxing authority shall make a valuation and assessment of the property and determine the tax that would be assessable if the property were owned by a utility. Payments in lieu of taxes made under this chapter shall be treated in the same manner as taxes for the purposes of all procedural and substantive provisions of law, including appeals, applicable to assessment and taxation of real and personal property, collection, and abatement of these taxes and the raising of public revenues.
(Added 1979, No. 78, § 3; amended 2023, No. 85 (Adj. Sess.), § 450, eff. July 1, 2024.)
§ 5016 Rules and rates
(a) The Authority may make and enforce rules that it deems necessary or desirable. It may establish, levy, and collect or may authorize by contract, franchise, lease, or otherwise, the establishment, levying, and collection of rents, rates, and other charges:
(1) for the services afforded by the Authority or afforded by or in connection with any project or properties that it may construct, erect, acquire, own, operate, or control, or with respect to that it may have any interest or any right to capacity thereof; and
(2) for the sale of electric energy or of generation or transmission capacity or service as it may deem necessary, proper, desirable, and reasonable.
(b) Rents, rates, and other charges shall be at least sufficient to meet the expenses of the Authority, including operating and maintenance expenses, reasonable reserves, interest, and principal payments, including payments into one or more sinking funds for the retirement of principal, and other requirements of any trust agreement or resolution securing bonds or notes. The Authority may pledge its rates, rents, and other revenues, or any part of them, as security for the repayment, with interest and redemption premiums, if any, of any monies borrowed by it or advanced to it for any of its authorized purposes and as security for the payment of amounts due and owing by it under any contract.
(Added 1979, No. 78, § 3; amended 2023, No. 85 (Adj. Sess.), § 451, eff. July 1, 2024.)
§ 5017 Powers of municipalities
A municipality may by resolution of its legislative body enter into contracts with the Authority for the purchase, sale, exchange, or transmission of electric energy and other services, on such terms and for such period of time as the resolution may provide. A municipality may by resolution of its legislative body enter into a contract with the Authority related to the issuance of bonds and notes as authorized by section 5031 of this title only after an affirmative vote of the qualified voters at any duly warned annual or special meeting held for that purpose. The required vote may either approve a specific contract with the Authority or it may approve generally the right for the municipality to enter into all such contracts with the Authority by resolution of its legislative body. A municipality may appropriate electricity-derived revenues received in any year to make payments due during that year under any contract made by the municipality with the Authority. Nothing in this section shall be construed to repeal any charter provision or law requiring an election or other condition precedent to the establishment of a municipal electric plant.
(Added 1979, No. 78, § 3; amended 2009, No. 78 (Adj. Sess.), § 41, eff. April 15, 2010.)
§ 5018 Construction contracts
The Authority may contract for the planning, acquisition, construction, operation, maintenance, repair, extension, and improvement of any project, or may contract with other public or private owners of any project to perform these functions, without advertising for bids, preparing final plans and specifications in advance of construction or securing performance and payment bonds, except to the extent that the directors determine that these actions are desirable in furtherance of the purposes of this chapter. Except as otherwise provided by this section, no contract shall be invalid or unenforceable by reason of nonperformance of the conditions required by any other law relating to public contracts.
(Added 1979, No. 78, § 3.)
Subchapter 3 Form and Nature of Bonds and Notes
§ 5031 Bonds and notes
(a)(1) The Authority may issue its negotiable notes and bonds in such principal amount as the Authority determines to be necessary to provide sufficient funds for achieving any of its corporate purposes, including the payment of interest on notes and bonds of the Authority, establishment of reserves to secure the notes and bonds, and all other expenditures of the Authority incident to and necessary or convenient to carry out its corporate purposes and powers. Without limiting the generality of the foregoing, such bonds and notes may be issued for project costs, or the Authority’s share of costs of projects, which may include:
(A) interest prior to and during the carrying out of any project and for a reasonable period thereafter;
(B) prepayments under contracts for the purchase of capacity and output;
(C) reserves for debt service or other capital or current expenses as may be required by a trust agreement or resolution securing bonds and notes; and
(D) all other expenses incidental to the determination of the feasibility of any project or to carrying out the project or to placing the project in operation.
(2) The Authority shall have the power, from time to time, to issue notes, to renew notes and bonds, to pay notes, including the interest on them and, whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any of its corporate purposes.
(3) Except as may otherwise be expressly provided by resolution of the Authority, every issue of its notes and bonds shall be general obligations of the Authority payable out of any revenues or monies of the Authority, subject only to any agreements with the holders of particular notes or bonds pledging any particular revenues.
(4) Bonds and notes may be issued in accordance with this chapter, without the need to obtain the consent and approval of the Public Utility Commission as provided in this title.
(5) The notes and bonds shall be authorized by resolution or resolutions of the Authority, shall bear such date or dates, and shall mature at such time or times as the resolution or resolutions may provide. The bonds may be issued as serial bonds payable in annual installments or as term bonds or as a combination of them. The resolution or resolutions may provide that the notes and bonds bear interest at a given rate or rates, be in certain denominations, be in temporary, coupon, or registered form, carry certain registration privileges, be executed in a given manner, be payable in a given medium of payment, at a place or places within or outside the State, and be subject to specified terms of redemption. The Authority may participate in any state or federally created or supported bond programs. The notes and bonds of the Authority may be sold by the Authority, at public or private sale, at such price or prices as the Authority shall determine.
(b) Any resolution or resolutions authorizing any notes or bonds or any issue of them may contain provisions, which shall be a part of the contract or contracts with the bond or noteholders as to:
(1) pledging, mortgaging, or granting a security interest in any real or personal property and all or any part of the revenues of the Authority, of any project, or any revenue producing contract made by the Authority with any person to secure the payment of the notes or bonds or of any issue of them subject to such agreements with noteholders or bondholders as may then exist;
(2) the custody, collection securing, investment, and payment of any revenues, assets, money, funds, or property with respect to which the Authority may have any rights or interest;
(3) the rates or charges for electric energy sold by, or services rendered by, the Authority, the amount to be raised by the rates or charges, and the use and disposition of any or all revenue;
(4) the setting aside of reserves or sinking funds and their regulation and disposition;
(5) limitations on the purpose to which the proceeds of sale of notes or bonds may be applied and pledging the proceeds to secure the payment of the notes or bonds or of any issue of them;
(6) limitations on the issuance of additional notes or bonds; the terms upon which additional notes or bonds may be issued and secured; and the refunding of outstanding or other notes or bonds;
(7) the procedure, if any, by which the terms of any contract with noteholders or bondholders may be amended or abrogated, the amount of notes or bonds the holders of which must consent thereto, and the manner in which consent may be given;
(8) vesting in a trustee or trustees, within or outside the State, such property, rights, powers, and duties in trust as the Authority may determine, which may include any or all of the rights, powers, and duties of the trustee appointed by the bondholders pursuant to this chapter and limiting or abrogating the right of the bondholders to appoint a trustee under this chapter or limiting the rights, powers, and duties of the trustee;
(9) defining the acts or omissions to act that shall constitute a default in the obligations and duties of the Authority to the holders of the notes or bonds and providing for the rights and remedies of the holders of the notes or bonds in the event of such default, including as a matter of right the appointment of a receiver; provided, however, that the rights and remedies shall not be inconsistent with the general laws of the State and other provisions of this chapter; and
(10) any other matters, of like or different character, that in any way affect the security or protection of the holders of the notes or bonds.
(c) Any pledge made by the Authority shall be valid and binding from the time when the pledge is made; the revenues, monies, or property so pledged and thereafter received by the Authority shall immediately be subject to the lien of the pledge without any physical delivery of it or further act. That pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the Authority, irrespective of whether those parties have notice of it.
(d) Neither the directors nor executive officers of the Authority nor any other person executing the notes or bonds shall be subject to any personal liability or accountability by reason of the issuance of the notes or bonds.
(e) The Authority, subject to whatever agreement with noteholders or bondholders as may then exist, shall have power out of any funds available for that purpose to purchase notes or bonds of the Authority, which shall then be cancelled, at a price not exceeding:
(1) if the notes or bonds are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment on them; or
(2) if the notes or bonds are not then redeemable, the redemption price applicable on the first date after the purchase upon which the notes or bonds become subject to redemption plus accrued interest to that date.
(f) In the discretion of the Authority, the notes or bonds may be secured by a trust indenture by and between the Authority and a corporate trustee, which may be any trust company or bank having the power of a trust company within or outside the State. The trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the noteholders or bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Authority in relation to the exercise of its corporate powers and the custody, safeguarding, and application of all monies. The Authority may provide by the trust indenture for the payment of the proceeds of the notes or bonds and the revenues to the trustee under the trust indenture or other depository, and for the method of disbursement, with such safeguards and restrictions as it may determine. All expenses incurred in carrying out the trust indenture may be treated as a part of the operating expenses of the Authority. If the notes or bonds shall be secured by a trust indenture, the noteholders and bondholders shall have no authority to appoint a separate trustee to represent them.
(g) Any law to the contrary notwithstanding, a bond or note issued under this chapter is fully negotiable for all purposes of 9A V.S.A. § 1—101 et seq., and each holder or owner of a bond or note, or of any coupon appurtenant to a bond or note, by accepting the bond or note or coupon shall be conclusively deemed to have agreed that the bond, note, or coupon is fully negotiable for those purposes.
(h) Any provision of this chapter or of any other law or any recitals in any bonds or notes issued under this chapter to the contrary notwithstanding, all bonds, notes, and interest coupons appertaining to them issued by the Authority shall have and are hereby declared to have all the qualities and incidents, including negotiability, of investment securities under 9A V.S.A. § 1—101 et seq., but no provision of those sections respecting the filing of a financing statement to perfect a security interest shall be applicable to any pledge made or security interest created in connection with the issuance of the bonds, notes, or coupons.
(i) In the case any of the directors or executive officers of the Authority whose signatures appear on any notes or bonds or coupons shall cease to be directors or executive officers before the delivery of such notes or bonds, the signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if those directors or executive officers had remained in office until that delivery.
(Added 1979, No. 78, § 3; amended 2009, No. 78 (Adj. Sess.), § 42, eff. April 15, 2010; 2019, No. 81, § 3.)
§ 5032 Refunding obligations; issuance
The Authority may provide for the issuance of refunding obligations for the purpose of refunding any obligations then outstanding that have been issued under the provisions of this chapter, including the payment of any redemption premium on them and any interest accrued or to accrue to the date of redemption of those obligations and for any corporate purpose of the Authority. The issuance of the obligations, the maturities and other details pertaining to them, the rights of their holders, and the rights, duties, and obligations of the Authority in respect to them shall be governed by the provisions of this chapter that relate to the issuance of obligations, insofar as those provisions may be appropriate.
(Added 1979, No. 78, § 3.)
§ 5033 Refunding obligations; sale
Refunding obligations issued as provided in section 5032 of this title may be sold or exchanged for outstanding obligations issued under this chapter and, if sold, the proceeds from them may be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of those outstanding obligations. Pending the application of the proceeds of any refunding obligations, with any other available funds, to the payment of the principal, accrued interest, and any redemption premium on the obligations being refunded, and, if so provided or permitted in the resolution authorizing the issuance of such refunding obligations or in the trust agreement securing them to the payment of any interest on refunding obligations and any expenses in connection with refunding, such proceeds may be invested as specified in the resolution authorizing the obligations to be refunded or the trust agreement securing them. These investments shall mature or shall be subject to redemption by their holders, at the option of the holders, not later than the respective dates when the proceeds, together with the interest accruing on them, will be required for the purposes intended.
(Added 1979, No. 78, § 3.)
§ 5034 Remedies of bondholders and noteholders
(a) In the event that the Authority defaults in the payment of principal or of interest on any bonds or notes issued under this chapter after they become due, whether at maturity or upon call for redemption, and the default continues for a period of 30 days, or in the event that the Authority fails or refuses to comply with the provisions of this chapter, or defaults in any agreement made with the holders of an issue of bonds or notes of the Authority, the holders of 25 percent in aggregate principal amount of the bonds or notes of such issue then outstanding, by instrument or instruments filed in the office of the Secretary of State and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of those bonds or notes for the purposes provided.
(b) That trustee may, and upon written request of the holders of 25 percent in principal amount of the bonds or notes then outstanding shall, in his or her or its own name:
(1) enforce all rights of the bondholders or noteholders, including the right to require the Authority to fix and collect rates, fees, and charges relating to projects or other obligations held by it adequate to carry out any agreement as to, or pledge of, the revenues of the Authority, and to require the Authority to carry out any other agreements with the holders of the bonds or notes and to perform its duties under this chapter;
(2) enforce all rights of the bondholders or noteholders, including the right to take possession and control of the business and properties of the Authority, to operate and maintain the same, to make any necessary repairs, renewals, and replacements to them, and to fix, revise, and collect fees and charges, so as to carry out any contract as to, or pledge of revenues, and to require the Authority to carry out and perform the terms of any contract with the holders of the bonds or notes or its duties under this chapter;
(3) bring suit upon all or any part of the bonds or notes;
(4) by action or suit, require the Authority to account as if it were the trustee of an express trust for the holders of the bonds or notes;
(5) by action or suit, enjoin any acts or things that may be unlawful or in violation of the rights of the holders of the bonds or notes;
(6) declare all bonds or notes due and payable, and, if all defaults shall be made good, then with the consent of the holders of 25 percent of the principal amount of the bonds or notes then outstanding to annul the declaration and its consequences.
(c) The trustee shall in addition to the foregoing have and possess all the powers necessary or appropriate for the exercise of any functions specifically set forth in this chapter or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.
(d) Before declaring the principal of bonds or notes due and payable, the trustee shall first give 30 days’ notice in writing to the Governor, to the Authority, and to the Attorney General of the State.
(e) The Superior Court shall have jurisdiction of any suit, action, or proceeding by the trustee on behalf of bondholders or noteholders.
(Added 1979, No. 78, § 3; amended 2023, No. 85 (Adj. Sess.), § 452, eff. July 1, 2024.)
§ 5035 Pledge of the State
The State does hereby pledge to and agree with the holders of the notes and bonds issued under this chapter that the State will not limit or restrict the rights hereby vested in the Authority to perform its obligations and to fulfill the terms of any agreement made with the holders of its bonds or notes. Neither will the State in any way impair the rights and remedies of the holders until the notes and bonds, together with interest on them, and interest on any unpaid installments of interest, are fully met, paid, and discharged. The Authority is authorized to execute this pledge and agreement of the State in any agreement with the holders of the notes or bonds.
(Added 1979, No. 78, § 3.)
§ 5036 Credit of State and members of Authority not pledged
Obligations issued under the provisions of this chapter shall not be deemed to constitute a debt or liability or obligation of the State or of any political subdivision of it or of any member of the Authority, nor shall it be deemed to constitute a pledge of the faith and credit of the State or of any political subdivision or of any member of the Authority, but shall be payable solely from the revenues or assets of the Authority. Each obligation issued by the Authority shall contain on its face a statement to the effect that the Authority shall not be obligated to pay the same nor the interest on it except from the revenues or assets pledged for those purposes and that neither the faith and credit nor the taxing power of the State or of any political subdivision of it or of any member of the Authority is pledged to the payment of the principal of or the interest on these obligations.
(Added 1979, No. 78, § 3.)
§ 5037 Notes and bonds as legal investments
Notwithstanding any other law, the State and all public officers, governmental units, and agencies of the State, all banks, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business, all credit unions, and all executors, administrators, guardians, trustees, and other fiduciaries may legally invest any sinking funds, monies, or other funds belonging to them or within their control in any bonds or notes issued under this chapter, and the bonds or notes are authorized security for any and all public deposits.
(Added 1979, No. 78, § 3.)
§ 5038 Annual reports; audit
(a) On or before the last day of January in each year, the Authority shall submit a report of its activities for the preceding calendar year to the Governor, the Public Utility Commission, and the General Assembly. Each report shall set forth a complete operating and financial statement covering its operations during the year, and shall contain a full and complete statement of the Authority’s anticipated budget and operations for the ensuing year. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection. The Authority shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants; the cost shall be considered an expense of the Authority and copies shall be filed with the State Treasurer and the Public Utility Commission.
(b) The Auditor of Accounts of the State and his or her duly authorized representatives may at any time examine the accounts and books of the Authority including its receipts, disbursements, contracts, sinking funds, investments, and any other matters relating to its financial statements.
(Added 1979, No. 78, § 3; amended 2013, No. 142 (Adj. Sess.), § 51.)
§ 5039 Liberal construction
Neither this chapter nor anything contained in this chapter is or shall be construed as a restriction or limitation upon any powers that the Authority might otherwise have under any laws of this State, and this chapter is cumulative to any such powers. This chapter does and shall be construed to provide a complete, additional, and alternative method for the doing of the things authorized by it and shall be regarded as supplemental and additional to powers conferred by other laws.
(Added 1979, No. 78, § 3.)
§ 5040 Public Utility Commission jurisdiction
Notwithstanding any other provision of this chapter, the Authority shall be subject to the regulatory jurisdiction of the Public Utility Commission, insofar as provided in this title.
(Added 1979, No. 78, § 3.)
§ 5041 Inconsistent provisions in other laws superseded
Insofar as the provisions of this chapter are inconsistent with the provisions of any special act or any municipal charter, the provisions of this chapter shall be controlling.
(Added 1979, No. 78, § 3.)
Chapter 85 West River Basin Energy Authority
§§ 6001-6010 Repealed
[Repealed]
2009, No. 135 (Adj. Sess.), § 26(13)(A).
Chapter 86 Underground Utility Damage Prevention System
§ 7001 Definitions
In this chapter:
(1) “Commission” means the Public Utility Commission under section 3 of this title.
(2) “Company” means any public utility, municipality, or person that supplies gas, electricity, hot water, steam, or telecommunications service and that maintains underground utility facilities, and any cable television company operating a cable television system as defined in section 501 of this title that maintains underground utility facilities.
(3) “Damage” includes the substantial weakening of structural or lateral support of an underground utility facility; penetration or destruction of any underground utility facility’s protective coating, housing, or device; or the partial or complete severance of any underground utility facility.
(4) “Excavation activities” means any activities that will disturb the subsurface of the earth or could damage underground utility facilities and that may involve the removal of earth, rock, or other materials in the ground or the demolition of any structure by the discharge of explosives or the use of powered or mechanized equipment, including digging, trenching, blasting, boring, drilling, hammering, post driving, wrecking, razing, tunneling, or pavement or concrete slab removal within 100 feet of an underground utility facility. Excavation activities shall not include the tilling of the soil for agricultural purposes, routine home gardening with hand tools outside easement areas and public rights-of-way, activities relating to routine public highway maintenance, or the use of hand tools by a company, or the company’s agent or a contractor working under the agent’s direction, to locate or service the company’s facilities, provided the company has a written damage prevention program.
(5) “Person” means any individual, trust, firm, joint stock company, corporation including a government corporation, partnership, association, state, municipality, commission, political subdivision of the State, or any interstate body.
(6) “Public agency” means the State or any political subdivision thereof, including any governmental agency.
(7) “Approximate location of underground utility facilities” means a strip of land extending not more than 18 inches on either side of the underground utility facilities.
(8) “System” means the public utility underground facility damage prevention system referred to in section 7002 of this title.
(9) “Underground utility facility” or “facility” means any pipe, conduit, wire, or cable located beneath the surface of the earth and maintained by a company, including the protective covering of the pipe, conduit, wire, or cable, as well as any manhole, vault, pedestal, or component maintained by a company.
(10) “Premark” means to identify the general scope of excavation activities using white paint, stakes, or other suitable white markings, in a manner that will enable the operators of the underground utility facilities to know the boundaries of the proposed excavation activities.
(11) “Powered or mechanized equipment” means equipment that is powered or energized by any motor, engine, or hydraulic or pneumatic device and that is used for excavation or demolition work.
(12) “Hand tools” means tools powered solely by human energy.
(13) “Verified” means the location and depth have been visually determined using careful and prudent excavating techniques such as hand digging, water excavation, or other safe means.
(14) “Damage prevention program” means a program established to ensure employees involved in excavation activities are aware of and utilize appropriate and safe excavating practices.
(Added 1987, No. 86, § 1, eff. Jan. 1, 1988; amended 1993, No. 118 (Adj. Sess.), § 1; 2001, No. 51, § 1; 2003, No. 56, § 56, eff. June 4, 2003; 2007, No. 145 (Adj. Sess.), § 1; 2017, No. 53, § 10; 2019, No. 31, § 9.)
§ 7002 Public Utility Underground Facility Damage Prevention System
Each company shall be a member of and participate in the Public Utility Underground Facility Damage Prevention System as designated by the Commission unless granted an exemption by the Commission after opportunity for hearing. The System shall operate during regular business hours throughout the year, except Saturdays, Sundays, and legal holidays. The System shall receive notices of proposed excavation activities and transmit the notices to member companies whose facilities may be affected. The cost for operation of the System shall be apportioned equitably among member companies.
(Added 1987, No. 86, § 1, eff. Jan. 1, 1988; amended 1993, No. 118 (Adj. Sess.), § 2; 1999, No. 157 (Adj. Sess.), § 15.)
§ 7003 Rulemaking
The Commission shall adopt rules, pursuant to 3 V.S.A. chapter 25 relative to:
(1) minimum requirements for the operation of the System, including notification procedures and the reporting of underground utility facility locations;
(2) procedures for the investigation of complaints;
(3) emergency situations;
(4) uniform standards for the marking of the approximate location of underground utility facilities;
(5) uniform standards for the future installation of underground utility facilities, including the following:
(A) color coding of facilities;
(B) depth requirements for the laying of facilities;
(C) subsurface marking of facilities;
(D) surface marking of facilities;
(E) the filing of as-built plans of facilities with municipalities; and
(F) capability for location of facilities by sensors;
(6) standards for the granting of exemptions under section 7002 of this title; and
(7) situations where the premarks cannot be found.
(Added 1987, No. 86, § 1; amended 1993, No. 118 (Adj. Sess.), § 3; 2019, No. 31, § 10.)
§ 7004 Notice of excavation activities
(a) No person or company shall engage in excavation activities, except in an emergency situation as defined by the Commission, without premarking the proposed area of excavation activities and giving notice as required by this section.
(b) Prior to notifying the System, the person shall premark the area of proposed excavation activities in a manner that will enable operators of underground facilities to identify the boundaries of the proposed excavation activities.
(c) At least 72 hours, excluding Saturdays, Sundays, and legal holidays, but not more than 30 days before commencing excavation activities, each person required to give notice of excavation activities shall notify the System referred to in section 7002 of this title. Such notice shall set forth a reasonably accurate and readily identifiable description of the geographical location of the proposed excavation activities and the premarks.
(d) Notice to the System may be in writing or by telephone. For purposes of this section, the System shall provide a toll-free telephone number.
(e) Notice of excavation activities shall be valid for an excavation site until one of the following occurs:
(1) the excavation is not completed within 30 days following the notification;
(2) the markings become faded, illegible, or destroyed; or
(3) the company installs new underground facilities in a marked area still under excavation.
(Added 1987, No. 86, § 1, eff. Jan. 1, 1988; amended 1993, No. 118 (Adj. Sess.), § 4; 2001, No. 51, § 2; 2007, No. 145 (Adj. Sess.), § 2; 2019, No. 31, § 11; 2023, No. 85 (Adj. Sess.), § 453, eff. July 1, 2024; 2023, No. 142 (Adj. Sess.), § 20, eff. November 1, 2024.)
§ 7005 Notification by System
Upon receiving notice of excavation activities, the System shall notify all member companies whose facilities may be affected. An adequate record shall be maintained by the System to document compliance with requirements of this chapter.
(Added 1987, No. 86, § 1, eff. Jan. 1, 1988; amended 1993, No. 118 (Adj. Sess.), § 5.)
§ 7006 Marking of underground utility facilities
A company notified in accordance with section 7005 of this title shall, within 72 hours, exclusive of Saturdays, Sundays, and legal holidays, after the receipt of the notice, mark the approximate location of its underground utility facilities in the area of the proposed excavation activities; provided, however, if the company advises the person that the proposed excavation area is of such length or size that the company cannot reasonably mark all of the underground utility facilities within 72 hours, the person shall notify the company of the specific locations in which the excavation activities will first occur and the company shall mark facilities in those locations within 72 hours and the remaining facilities within a reasonable time thereafter. A company and an excavator may by agreement fix a later time for the company’s marking of the facilities, provided the marking is made prior to excavation activities. For the purposes of this chapter, the approximate location of underground facilities shall be marked with stakes, paint, or other physical means as designated by the Commission.
(Added 1987, No. 86, § 1, eff. Jan. 1, 1988; amended 1993, No. 118 (Adj. Sess.), § 6; 2025, No. 43, § 32, eff. June 2, 2025.)
§ 7006a Maintenance of underground utility facility markings
After a company has marked its underground facilities in accordance with section 7006 of this title, the excavator shall be responsible for maintenance of the designated markings. In the event said markings are obliterated, destroyed, or removed, the person engaged in excavation activities shall notify the System referred to in section 7002 of this title that remarking is needed. The System shall then notify all member companies whose facilities may be affected. Each applicable company shall, within 72 hours, exclusive of Saturdays, Sundays, and legal holidays, following receipt of the notice, remark the location of its underground utility facilities.
(Added 1993, No. 118 (Adj. Sess.), § 7; amended 2025, No. 43, § 33, eff. June 2, 2025.)
§ 7006b Excavation area precautions
Any person engaged in excavating activities in the approximate location of underground utility facilities marked pursuant to section 7006 of this title shall take reasonable precautions to avoid damage to underground utility facilities, including any substantial weakening of the structural or lateral support of such facilities or penetration, severance, or destruction of such facilities. The person engaged in excavation activities shall expose underground facilities to verify their location and depth, in a safe manner, at each location where the work will cross a facility and at reasonable intervals when paralleling an underground facility. Powered or mechanized equipment may only be used within the approximate location where the facilities have been verified.
(Added 1993, No. 118 (Adj. Sess.), § 8; amended 2001, No. 51, § 3; 2007, No. 145 (Adj. Sess.), § 3; 2019, No. 31, § 12.)
§ 7007 Notice of damage
When any underground utility facility is damaged during excavation activities, the excavator shall immediately notify the affected company. Under no circumstances shall the excavator backfill or conceal the damaged area until the company inspects and repairs the damage, provided that the excavator shall take reasonable and prudent actions to protect the public from serious injury from the damaged facilities until the company or emergency response personnel arrive at the damaged area. An excavator who causes damage to a pipeline that results in a release of natural or other gas or hazardous liquid shall promptly report the release to emergency responders by calling 911.
(Added 1987, No. 86, § 1, eff. Jan. 1, 1988; amended 1993, No. 118 (Adj. Sess.), § 9; 2019, No. 31, § 13.)
§ 7008 Penalties
(a) Vermont Digsafe Program. Any person or company who violates any provisions of section 7004, 7006, 7006a, 7006b, or 7007 of this title shall be subject to a civil penalty of not more than $500.00 for the first offense, not more than $1,000.00 for the second offense within one year of the date of the first offense, not more than $1,500.00 for the third offense within one year of the first offense, and not more than $5,000.00 for the fourth or subsequent offense within one year of the date of a previous offense, in addition to any other remedies or penalties provided by law or any liability for actual damages. For the purposes of this subsection, “the date of the first offense” means the date on which the violation occurred, not the date on which the adjudication of the offense resulted.
(b) [Repealed.]
(c) If underground facilities are damaged because a company has not marked them as required by section 7006 or 7006a, the company shall be subject to a civil penalty as provided in this section and, in addition, shall be liable for any damages incurred by the excavator as a result of the company’s failure to mark the facilities.
(d) All penalties recovered in any such actions shall be paid into the General Fund of the State. The Commission shall have jurisdiction over all actions brought pursuant to this chapter.
(e) Any person who violates any provisions of sections 7004 through 7007 of this title as to an underground gas distribution or transmission facility shall also be subject to the civil penalties described in section 2816 of this title. However, a person who has been assessed a civil penalty pursuant to section 2816 of this title shall not be subject to the payment of an assessed penalty under the provisions of this section for the same violation.
(Added 1987, No. 86, § 1, eff. Jan. 1, 1988; amended 1993, No. 118 (Adj. Sess.), § 10; 2007, No. 145 (Adj. Sess.), § 4.)
Chapter 87 Enhanced 911; Emergency Services
§ 7051 Definitions
As used in this chapter:
(1) “Automatic location identification” or “ALI” means the system capability to identify automatically the geographical location of the electronic device being used by the caller to summon assistance and to provide that location information to an appropriate device located at any public safety answering point for the purpose of sending emergency assistance.
(2) “ALI database” means a derivative, verified set of records that contain at a minimum a telephone number and location identification for each unique building or publicly used facility within a defined geographic area in Vermont.
(3) “Automatic number identification” or “ANI” means the system capability to identify automatically the calling telephone number and to provide a display of that number at any public safety answering point.
(4) “Board” means the Vermont Enhanced 911 Board established under section 7053 of this title.
(5) “Caller” means a person or an automated device calling on behalf of a person.
(6) “Director” means the Director for statewide Enhanced 911.
(7) “Emergency call system” or “Enhanced 911 system” means a system consisting of devices with the capability to determine the location and identity of a caller that initiates communication for the purpose of summoning assistance in the case of an emergency. In most cases summoning assistance will occur when a caller dials the digits 9-1-1 on a telephone, mobile phone, or other IP-enabled service, or by a communication technology designed for the purpose of summoning assistance in the case of an emergency.
(8) “Emergency services” means fire, police, medical, and other services of an emergency nature as identified by the Board.
(9) “IP-enabled service” means a service, device, or application that makes use of internet protocol, or IP, and that is capable of entering the digits 9-1-1 or otherwise contacting the emergency 911 system. IP-enabled service includes voiceover IP and other services, devices, or applications provided through or using wire line, cable, wireless, or satellite or other facilities.
(10) “Municipality” means any city, town, incorporated village, unorganized town, gore, grant, or other political subdivision of the State.
(11) “Other methods of locating caller” means those commercially available technologies designed to provide the location information of callers when a call is initiated to access emergency 911 services regardless of the type of device that is used.
(12) “Public safety answering point” means a facility with the capability to receive emergency calls, operated on a 24-hour basis, assigned the responsibility of receiving 911 calls and dispatching, transferring, or relaying emergency 911 calls to other public safety agencies or private safety agencies.
(13) “Selective routing” means a telecommunications switching system that enables all 911 calls originating from within a defined geographical region to be answered at a predesignated public service answering point.
(14) “Dispatchable Location” means the location information delivered to the public safety answering point with a 911 call.
(15) “Enterprise Communications Systems (ECS)” means any networked communication system serving two or more stations, or living units, within an enterprise. ECS includes circuit-switched networks, such as multi-line telephone systems or legacy ECS, IP-enabled service, and cloud-based technology.
(16) “Station” means a telephone handset, customer premise equipment (CPE), or calling device that is capable of initiating a call to 911.
(Added 1993, No. 197 (Adj. Sess.), § 2; amended 1995, No. 182 (Adj. Sess.), § 10, eff. May 22, 1996; 2011, No. 64, § 1, eff. June 2, 2011; 2017, No. 190 (Adj. Sess.), § 24, eff. May 28, 2018.)
§ 7052 Vermont Enhanced 911 Board
(a) The Vermont Enhanced 911 Board is established to develop, implement, and supervise the operation of the statewide Enhanced 911 system.
(b) The Board shall consist of nine members: one county law enforcement officer elected by the membership of the Vermont State Sheriffs’ Association; one municipal law enforcement officer elected by the Vermont Association of Chiefs of Police; one official of a municipality; a firefighter; an emergency medical services provider; a Department of Public Safety representative; and three members of the public. Board members shall be appointed by the Governor to three-year terms, except that the Governor shall stagger initial appointments so that the terms of no more than four members expire during a calendar year. In appointing Board members, the Governor shall give due consideration to the different geographical regions of the State, and the need for balance between rural and urban areas. Board members shall serve at the pleasure of the Governor.
(c) Members who are not State employees or not otherwise compensated in the course of their employment shall receive per diem compensation and expense reimbursement for meetings in accordance with the provisions of 32 V.S.A. § 1010. Members who receive per diem shall receive compensation for no more than 12 meetings per year.
(d) The Governor shall annually appoint a member to serve as Board chair and a member to serve as Board vice chair. The Board shall hold at least four regular meetings a year. Meetings of the Board may be held at any time or place within Vermont upon call of the Chair or a majority of the members, after reasonable notice to the other members and shall be held at such times and places as in the judgment of the Board will best serve the convenience of all parties in interest. The Board shall adopt rules and procedures with respect to the conduct of its meetings and other affairs. Membership on the Board does not constitute the holding of an office for any purpose, and members of the Board shall not be required to take and file oaths of office before serving on the Board. A member of the Board shall not be disqualified from holding any public office or employment, and shall not forfeit any office or employment, by reason of their appointment to the Board, notwithstanding any statute, ordinance, or charter to the contrary.
(e) The Board shall appoint, subject to the approval of the Governor, the Executive Director who shall hold office at the pleasure of the Board. He or she shall perform such duties as may be assigned by the Board. The Executive Director is entitled to compensation, as established by law, and reimbursement for the expenses within the amounts available by appropriation. The Executive Director may, with the approval of the Board, hire employees, agents, and consultants and prescribe their duties.
(Added 1993, No. 197 (Adj. Sess.), § 2; 2009, No. 4, § 99, eff. April 29, 2009.)
§ 7053 Board; responsibilities and powers
(a) The Board shall be the single governmental agency responsible for statewide Enhanced 911. To the extent feasible, the Board shall consult with the Agency of Human Services, the Department of Public Safety, the Department of Public Service, and local community service providers on the development of policies, system design, standards, and procedures. The Board shall develop designs, standards, and procedures and shall adopt rules on the following:
(1) The technical and operational standards for public safety answering points.
(2) The system database standards and procedures for developing and maintaining the database. The system database shall be the property of the Board.
(3) Statewide, locatable means of identifying customer location, such as addressing, geo-coding, or other methods of locating the caller.
(4) Standards and procedures to ensure system and database security.
(b)-(d) [Repealed.]
(e) The Board is authorized:
(1) to make or cause to be made studies of any aspect of the Enhanced 911 system, including service, operations, training, database development, and public awareness;
(2) to accept and use in the name of the State, subject to review and approval by the Joint Fiscal Committee, any and all donations or grants, both real and personal, from any governmental unit or public agency or from any institution, person, firm, or corporation, consistent with the rules established by the Board and the purpose or conditions of the donation or grant; and
(3) to exercise all powers and conduct such activities as are necessary in carrying out the Board’s responsibilities in fulfilling the purposes of this chapter.
(f) The Board shall adopt such rules as are necessary to carry out the purposes of this chapter, including, where appropriate, imposing reasonable fines or sanctions against persons that do not adhere to applicable Board rules.
(g), (h) [Repealed.]
(Added 1993, No. 197 (Adj. Sess.), § 2; amended 2011, No. 64, § 1, eff. June 2, 2011.)
§ 7054 Funding
(a) The Enhanced 911 Fund is created as a special fund subject to the provisions of 32 V.S.A. chapter 7, subchapter 5. Balances in the Fund on June 30 of each year shall carry forward and shall not revert to the General Fund.
(b) The General Assembly shall annually review and approve an amount to be transferred by the universal service fiscal agent to the Enhanced 911 Fund and shall appropriate some or all of that amount for expenditures related to providing Enhanced 911 services.
(c) Into the Enhanced 911 Fund shall be deposited monies transferred from the universal service fiscal agent, any State or federal funds appropriated to the Fund by the General Assembly, any taxes specifically required by law to be deposited into the Fund, and any grants or gifts received by the State for the benefit of the Enhanced 911 system.
(d) Disbursements from the Enhanced 911 Fund shall be made by the State Treasurer on warrants drawn by the Director solely for the purposes specified in this chapter. The Director may issue such warrants pursuant to contracts or grants.
(e) Disbursements may be made for:
(1) nonrecurring costs, including establishing public safety answering points, purchasing network equipment and software, developing databases, and providing for initial training and public education;
(2) recurring costs, including network access fees and other telephone charges, software, equipment, database management and improvement, public education, ongoing training, and equipment maintenance;
(3) expenses of the Board and the Department of Public Service incurred under this chapter;
(4) costs solely attributable to statewide public safety answering point operations; and
(5) costs attributable to demonstration projects designed to enhance the delivery of emergency 911 and other emergency services.
(f) Disbursements may not be made for:
(1) personnel costs for emergency dispatch answering points;
(2) construction, purchase, renovation, or furnishings for buildings at emergency dispatch points;
(3) two-way radios; and
(4) vehicles and associated equipment.
(Added 1993, No. 197 (Adj. Sess.), § 2; amended 1999, No. 62, § 82; 2007, No. 192 (Adj. Sess.), § 6.025, eff. June 7, 2008; 2011, No. 64, § 1, eff. June 2, 2011.)
§ 7055 Originating carrier coordination
(a) Every originating carrier offering access to the public switched telephone network shall make available, in accordance with requirements established by the Federal Communications Commission, the universal emergency telephone number 911 for use by the public in seeking assistance from fire, police, medical, and other emergency service providers through a public safety answering point and shall deliver their customers’ 911 calls to the point of interconnection defined by the Board.
(b) Every originating carrier shall provide the ANI, if applicable, and any other information required by rules adopted under section 7053 of this title to the Board, or to any administrator of 911 databases, solely for purposes of maintaining the 911 databases and for purposes outlined in subdivisions 7059(a)(1)(B) and (D) of this title, unless such information is provided by submission to the Vermont 911 ALI database, in case the information may also be used for the purposes outlined in subdivision 7059(a)(1)(A) of this title. Each such provider shall be responsible for updating the information at a frequency specified by such rules. All persons receiving confidential information under this subsection, as defined by section 7059 of this title, shall use it solely for the purposes specified in subdivision 7059(a)(1) of this title and shall not disclose such confidential information for any other purpose.
(c) Each originating carrier providing services within the State shall designate a person to coordinate with and provide all relevant information to the Enhanced 911 Board in carrying out the purposes of the chapter.
(d) Originating carriers certificated to provide service in the State shall transmit with each 911 call available ANI or pseudo-Automatic Number Identification (p-ANI) that can be used to query the Enhanced 911 or third-party databases to provide the Automatic Location Identification as defined by standards approved by the National Emergency Number Association (NENA). Originating carriers with the capability to provide location and caller data with the call shall do so in accordance with the approved i3 Standards for Next Generation 9-1-1.
(e) Each local exchange telecommunications provider in the State shall file with the Public Utility Commission tariffs for each service element necessary for the provision of Enhanced 911 services. The Public Utility Commission shall review each company’s proposed tariff and shall ensure that tariffs for each necessary basic service element are effective within six months after filing. The Department of Public Service, by rule or emergency rule, may establish the basic service elements that each company must provide for in tariffs. Such tariffs must be filed with the Public Utility Commission within 60 days after the basic service elements are established by the Department of Public Service.
(f) As used in this section:
(1) “Incumbent local exchange carrier” has the same meaning as in 47 U.S.C. § 251(h) and includes rural local exchange carriers.
(2) “Originating carrier” or “originating service provider” means an entity that provides voice services to a subscriber and includes incumbent local exchange carriers operating in Vermont.
(Added 1993, No. 197 (Adj. Sess.), § 2; amended 2011, No. 64, § 1, eff. June 2, 2011; 2023, No. 143 (Adj. Sess.), § 19, eff. July 1, 2024.)
§ 7056 Municipal cooperation; enhanced ANI/ALI capability
(a) Each municipality, by its legislative body, may participate in the Enhanced 911 system. Municipalities choosing to participate shall identify all building locations and other public and private locations frequented by the public and shall cooperate in the development and maintenance of the necessary databases. The Board shall work with municipalities to identify nonmonetary incentives designed to streamline and reduce the administrative burdens imposed by this requirement. Any municipality that changes its system for addresses shall ensure that the modified address system is consistent with the standards established by the Board.
(b) After July 1, 1994, any municipality that changes its system for addresses shall ensure that the modified address system is consistent with the standards established by the Board.
(c)-(e) [Repealed.]
(Added 1993, No. 197 (Adj. Sess.), § 2; amended 1997, No. 28, § 13, eff. May 15, 1997; 2011, No. 64, § 1, eff. June 2, 2011.)
§ 7057 Enterprise communications system
Any enterprise communications system shall provide to those end users the same level of 911 service that other end users receive and shall provide ANI signaling, station identification data, including dispatchable location, and updates to Enhanced 911 databases under rules adopted by the Board. The Board may waive the provisions of this section for any enterprise communications system, provided that in the judgment of the Board, the owner of the system is actively engaged in becoming compliant with this section, is likely to comply with this section in a reasonable amount of time, and will do so in accordance with standards and procedures adopted by the Board by rule.
(Added 1993, No. 197 (Adj. Sess.), § 2; amended 2011, No. 64, § 1, eff. June 2, 2011; 2017, No. 190 (Adj. Sess.), § 25, eff. May 28, 2018.)
§ 7058 Pay telephones
Each provider or other owner or lessee of a pay station telephone shall permit a caller to dial 911 without first inserting a coin or paying any other charge. The provider or other owner or lessee shall prominently display on each notice advising callers to dial 911 in an emergency and that deposit of a coin is not required.
(Added 1993, No. 197 (Adj. Sess.), § 2; amended 2011, No. 64, § 1, eff. June 2, 2011.)
§ 7059 Confidentiality of system information
(a)(1) A person shall not access, use, or disclose to any other person any individually identifiable information contained in the system database created under subdivision 7053(a)(4) of this title, including any customer or user ALI or ANI information, except in accordance with rules adopted by the Board and for the purpose of:
(A) responding to emergency calls;
(B) system maintenance and quality control under the direction of the Director;
(C) investigation, by law enforcement personnel, of false or intentionally misleading reports of incidents requiring emergency services;
(D) assisting in the implementation of a statewide emergency notification system;
(E) provision of emergency dispatch services by public safety answering points in other states that are under contract with local law enforcement and emergency response organizations; or
(F) coordinating with state and local service providers for the provision of emergency dispatch services that serve individuals with a disability, elders, and other populations with special needs.
(2) No person shall use customer ALI or ANI information to create special 911 databases for any private purpose or any public purpose unauthorized by this chapter.
(b) Notwithstanding the provisions of subsection (a) of this section, customer ALI or ANI information obtained in the course of responding to an emergency call may be included in an incident report prepared by emergency response personnel, in accordance with rules adopted by the Board.
(c) Information relating to customer name, address, and any other specific customer information collected, organized, acquired, or held by the Board, the entity operating a public safety answering point or administering the Enhanced 911 database, or emergency service provider is not public information and is exempt from disclosure under 1 V.S.A. chapter 5, subchapter 3.
(d) If a municipality has adopted conventional street addressing for Enhanced 911 addressing purposes, the municipality shall ensure that an individual who so requests will not have his or her street address and name linked in a municipal public record, but the individual shall be required to provide a mailing address. The request required by this subsection shall be in writing and shall be filed with the municipal clerk. Requests under this subsection shall be confidential. A form shall be prepared by the Board and made generally available to the public by which the confidentiality option established by this subsection may be exercised.
(e) Notwithstanding any provision of law to the contrary, no person acting on behalf of the State of Vermont or any political subdivision of the State shall require an individual to disclose his or her Enhanced 911 address, provided that the individual furnishes his or her alternative mailing address.
(Added 1993, No. 197 (Adj. Sess.), § 2; amended 1995, No. 182 (Adj. Sess.), § 11, eff. May 22, 1996; 2003, No. 59, § 44; 2011, No. 64, § 1, eff. June 2, 2011; 2013, No. 96 (Adj. Sess.), § 193.)
§ 7060 Limitation of liability
No person shall be liable in any suit for civil damages who in good faith receives, develops, collects, or processes information for the Enhanced 911 database or develops, designs, adopts, establishes, installs, participates in, implements, maintains, or provides access to telephone, mobile, or IP-enabled service for the purpose of helping persons obtain emergency assistance in accordance with this chapter unless such action constitutes gross negligence or an intentional tort. In addition, no provider of telephone, mobile, or other IP-enabled service or a provider’s respective employees, directors, officers, assigns, affiliates, or agents shall be liable for civil damages in connection with the release of customer information to any governmental entity, including any public safety answering point, as required under this chapter.
(Added 1993, No. 197 (Adj. Sess.), § 2; amended 2011, No. 64, § 1, eff. June 2, 2011.)
§ 7061 Enforcement and penalties
(a) The Board may file a civil action for injunctive relief in Washington County Superior Court to enforce a provision of this chapter or a rule adopted by the Board under this chapter. The court shall award the Board its costs and reasonable attorney’s fees in the event that the Board prevails in an action under this subsection.
(b) A person who violates the provisions of section 7059 of this title shall be imprisoned not more than one year or fined not more than $10,000.00, or both.
(c) An aggrieved individual may maintain an action in Superior Court for damages, injunctive relief, costs, and attorney’s fees against any person who intentionally or with gross negligence violates any provision of, or rules adopted under, section 7059 or subsection 7055(b) of this title.
(Added 1993, No. 197 (Adj. Sess.), § 2.)
Chapter 88 Universal Telecommunications Service
Subchapter 1 General Provisions
§ 7501 Purpose; definitions
[Subsection (a) effective until July 1, 2025; see also subsection (a) effective July 1, 2025 set out below.]
(a) It is the purpose of this chapter to create a financial structure that will allow every Vermont household to obtain basic telecommunications service at an affordable price, and to finance that structure with a proportional charge on all telecommunications transactions that interact with the public switched network.
[Subsection (a) effective July 1, 2025; see also subsection (a) effective until July 1, 2025 set out above.]
(a) It is the purpose of this chapter to create a financial structure that will allow every Vermont household to obtain basic telecommunications service at an affordable price and to finance that structure with a charge on all telecommunications transactions that interact with the public switched network.
(b) As used in this chapter:
(1) “Basic telecommunications service” means that a customer has available at his or her location:
(A) switched voice grade interactive telecommunications service permitting origination and termination of calls;
(B) the ability to transmit network switching instructions through tones generated by customer-owned equipment;
(C) the ability to transmit and receive the customer’s computer-generated digital data, either by digital or analog transmission, reliably and at common transmission rates, using customer-owned equipment;
(D) the ability to communicate quickly and effectively with emergency response personnel; and
(E) telecommunications relay service, as authorized under section 218a of this title.
(2) “Interactive” means that a communications medium is regularly used to transmit information in two directions.
(3) “Line in service” means a circuit or channel connecting a customer to the public switched network or to the internet.
(4) “Private network” means a telecommunications system entirely owned and operated by a single corporate or individual person other than a telecommunications service provider and not available to the general public.
(5) “Public switched network” means the communications network owned and operated by telecommunications service providers, some of whom are common carriers.
(6) “Service area” means:
(A) in the case of a rural telephone company, the company’s study area as approved by the Federal Communications Commission; or
(B) in the case of a local exchange carrier, other than a rural telephone company, the carrier’s local exchange service area as approved by the Public Utility Commission.
(7) “Service location” means a business or residential geographic point of contact of a telecommunications service for purposes of the Enhanced 911 network. The number of service locations in each exchange shall be determined by the Department of Public Service in periodic updates to the State Telecommunications Plan based on analysis of the locations in the database of the Vermont Enhanced 911 Board.
[Subdivision (b)(8) effective until July 1, 2025; see also subdivision (b)(8) effective July 1, 2025 set out below.]
(8) “Telecommunications service” means the transmission of any interactive electromagnetic communications that passes through the public switched network. The term includes transmission of voice, image, data, and any other information, by means of wire, electric conductor cable, optic fiber, microwave, radio wave, or any combinations of such media, and the leasing of any such service.
(A) Telecommunications service includes:
(i) local telephone service, including any facility or service provided in connection with such local telephone service;
(ii) toll telephone service;
(iii) directory assistance;
(iv) two-way cable television service; and
(v) mobile telephone or telecommunication service, both analog and digital.
(B) Notwithstanding the provisions of this subdivision (8), as used in this chapter, telecommunications service does not include:
(i) Services consisting primarily of the creation of artistic material or other information that is later transmitted over telecommunications equipment, including information services and electronic bulletin boards, but only to the extent that charges for such information processing are separated from charges for other telecommunications services, and only to the extent that such information is not used by any telecommunications service provider in the administration of the telecommunications network.
(ii) Mobile radio and paging services that do not have an electronic interface into the public switched network.
(iii) Private network services; provided, however, that payments by a private network to a telecommunications service provider, such as for point-to-point transmission services, are not exempt under this subdivision.
(iv) [Repealed.]
(v) Telecommunications services paid for at the point of purchase by depositing coins or currency.
(vi) Charges incurred by utilizing prepaid telephone calling cards or prepaid authorization numbers.
[Subdivision (b)(8) effective July 1, 2025; see also subdivision (b)(8) effective until July 1, 2025 set out above.]
(8) “Telecommunications service” means the transmission of any real-time, interactive electromagnetic communications that passes through the public switched network. The term includes transmission of voice, image, data, and any other information, by means of wire, electric conductor cable, optic fiber, microwave, radio wave, or any combinations of such media, and the leasing of any such service.
(A) Telecommunications service includes:
(i) local telephone service, including any facility or service provided in connection with such local telephone service;
(ii) toll telephone service;
(iii) directory assistance;
(iv) interconnected VoIP service, as defined in 47 C.F.R. § 9.3; and
(v) mobile telecommunications service, as defined in 4 U.S.C. § 124(7).
(B) Notwithstanding the provisions of this subdivision (8), as used in this chapter, telecommunications service does not include:
(i) Services consisting primarily of the creation of artistic material or other information that is later transmitted over telecommunications equipment, including information services and electronic bulletin boards, but only to the extent that charges for such information processing are separated from charges for other telecommunications services, and only to the extent that such information is not used by any telecommunications service provider in the administration of the telecommunications network.
(ii) Mobile radio and paging services that do not have an electronic interface into the public switched network.
(iii) Private network services; provided, however, that payments by a private network to a telecommunications service provider, such as for point-to-point transmission services, are not exempt under this subdivision.
(iv) [Repealed.]
(v) Telecommunications services paid for at the point of purchase by depositing coins or currency.
(vi) Charges incurred by utilizing prepaid telephone calling cards or prepaid authorization numbers.
(9) “Telecommunications service provider” means a company required by law to hold a certificate of public good from the Public Utility Commission to offer telecommunications service for intrastate service, or is authorized by the Federal Communications Commission to offer interstate telecommunications service.
(Added 1993, No. 197 (Adj. Sess.), § 5; amended 1995, No. 99 (Adj. Sess.), § 12; 1997, No. 71 (Adj. Sess.), § 29, eff. March 11, 1998; 1997, No. 156 (Adj. Sess.), § 31, eff. April 29, 1998; 2013, No. 190 (Adj. Sess.), § 2, eff. June 16, 2014; 2023, No. 145 (Adj. Sess.), § 1, eff. July 1, 2025.)
§ 7502 Rulemaking
(a) Consistent with the purposes of this chapter, the Department of Public Service may interpret the provisions of this chapter. Any person aggrieved by any such interpretation or policy may file with the Department of Public Service a petition for a declaratory ruling. Such a petition may include a request to determine whether newly created services, and other services not specifically mentioned by the definition of telecommunications service in this chapter, are telecommunications service. All services declared to be telecommunications service shall thereafter be subject to the charge imposed by subchapter 3 of this chapter.
(b) By rule or general order, the Department of Public Service may adopt procedures and standards to implement its responsibilities under this chapter. To the extent applicable, the Department of Public Service shall use the procedures and standards applicable to the setting of rates for regulated utilities. Those procedures may be designed to expedite the annual establishment of amounts to be collected and distributed by the fiscal agent.
(Added 1993, No. 197 (Adj. Sess.), § 5; amended 2015, No. 41, § 26, eff. June 1, 2015.)
§ 7503 Fiscal agent
(a) A fiscal agent shall be selected to receive and distribute funds under this chapter.
(b) The fiscal agent shall be selected by the Commissioner of Public Service after competitive bidding. No telecommunications service provider shall be eligible to be the fiscal agent. The duties of the fiscal agent shall be determined by a contract with a term not greater than three years.
(c) In order to finance grants and other expenditures that have been approved by the Commissioner of Public Service, the fiscal agent may borrow money from time to time in anticipation of receipts during the current fiscal year. No such note shall have a term of repayment in excess of one year, but the fiscal agent may pledge its receipts in the current and future years to secure repayment. Financial obligations of the fiscal agent are not guaranteed by the State of Vermont.
(d) The fiscal agent shall be audited annually by a certified public accountant in a manner determined by and under the direction of the Commissioner of Public Service.
(e) The financial accounts of the fiscal agent shall be available at reasonable times to any telecommunications service provider in this State. The Commissioner of Public Service may investigate the accounts and practices of the fiscal agent and may enter orders concerning the same.
(f) The fiscal agent acts as a fiduciary and holds funds in trust for the ratepayers until the funds have been disbursed as provided pursuant to section 7511 of this chapter.
(Added 1993, No. 197 (Adj. Sess.), § 5; amended 2005, No. 171 (Adj. Sess.), § 1; 2013, No. 191 (Adj. Sess.), § 33; 2015, No. 41, § 7.)
§ 7504 Severability
In the event that a court determines that some part of this chapter, or its application to a particular circumstance, violates the Constitution or laws of the United States, the remainder of this chapter shall not thereby be declared invalid.
(Added 1993, No. 197 (Adj. Sess.), § 5.)
Subchapter 2 Distribution
§ 7511 Distribution generally
[Subsection (a) effective until July 1, 2025; see also subsection (a) effective July 1, 2025 set out below.]
(a)(1) As directed by the Commissioner of Public Service, funds collected by the fiscal agent, and interest accruing thereon, shall be distributed as follows:
(A) to pay costs payable to the fiscal agent under its contract with the Commissioner;
(B) to support the Vermont telecommunications relay service in the manner provided by section 7512 of this title;
(C) to support the Vermont Lifeline program in the manner provided by section 7513 of this title;
(D) to support Enhanced 911 services in the manner provided by section 7514 of this title; and
(E) to support the Connectivity Fund established in section 7516 of this title; and
(2) for fiscal year 2016 only, any personnel or administrative costs associated with the Connectivity Initiative shall come from the Connectivity Fund, as determined by the Commissioner in consultation with the Connectivity Board.
[Subsection (a) effective July 1, 2025; see also subsection (a) effective until July 1, 2025 set out above.]
(a) As directed by the Commissioner of Public Service, funds collected by the fiscal agent, and interest accruing thereon, shall be distributed as follows:
(1) to pay costs payable to the fiscal agent under its contract with the Commissioner;
(2) to support the Vermont telecommunications relay service in the manner provided by section 7512 of this title;
(3) to support the Vermont Lifeline program in the manner provided by section 7513 of this title;
(4) to support Enhanced 911 services in the manner provided by section 7514 of this title;
(5) to support the Vermont 988 Suicide and Crisis Lifeline centers in the manner provided in section 7513a of this title; and
(6) to support the Connectivity Fund established in section 7516 of this title.
(b) If insufficient funds exist to support all of the purposes contained in subsection (a) of this section, the Commissioner shall allocate the available funds, giving priority in the order listed in subsection (a).
(Added 1993, No. 197 (Adj. Sess.), § 5; amended 2013, No. 190 (Adj. Sess.), § 3, eff. June 16, 2014; 2013, No. 191 (Adj. Sess.), § 34; 2015, No. 41, § 9; 2023, No. 145 (Adj. Sess.), § 5, eff. July 1, 2025.)
§ 7512 Telecommunications relay service
The fiscal agent shall make distributions for the Vermont telecommunications relay service to the State Treasurer. The amount of the transfer shall be determined by the Commissioner of Public Service as the amount reasonably necessary to pay the costs of a contract administered by the Department of Public Service.
(Added 1993, No. 197 (Adj. Sess.), § 5.)
§ 7513 Lifeline
The fiscal agent shall make distributions for the Vermont Lifeline program under subsection 218(c) of this title to reimburse telecommunications service providers for credits that have been granted to their customers, within annual limits approved in advance by the Public Utility Commission. The fiscal agent shall also make distributions to reimburse telecommunications companies for Lifeline program administration costs approved by the Commission.
(Added 1993, No. 197 (Adj. Sess.), § 5; amended 1995, No. 99 (Adj. Sess.), § 13.)
§ 7513a Vermont 988 Suicide and Crisis Lifeline [Effective July 1, 2025]
The fiscal agent shall make distributions to the Commissioner of Mental Health to fund the operational and capital costs of the Vermont 988 Suicide and Crisis Lifeline centers, within annual limits approved in advance by the General Assembly.
(Added 2023, No. 145 (Adj. Sess.), § 6, eff. July 1, 2025.)
§ 7514 Enhanced 911
The fiscal agent shall make distributions to the State Treasurer, for deposit into the Enhanced 911 special fund, as annually directed by the General Assembly.
(Added 1993, No. 197 (Adj. Sess.), § 5.)
§ 7515 High-Cost Program
(a) The Universal Service Charge shall be used as a means of keeping basic telecommunications service affordable in all parts of this State, thereby maintaining universal service, and as a means of supporting access to broadband service in all parts of the State.
(b) The Public Utility Commission, after review of a petition of a company holding a certificate of public good to provide telecommunications service in Vermont, and upon finding that the company meets all requirements for designation as an “eligible telecommunications carrier” as defined by the FCC, may designate the company as a Vermont-eligible telecommunications carrier (VETC).
(c) The supported services a designated VETC must provide are voice telephony services, as defined by the FCC, and broadband internet access, directly or through an affiliate. A VETC receiving support under this section shall use that support for capital improvements in high-cost areas, as defined in subsection (f) of this section, to build broadband capable networks.
(d) The Commission may designate multiple VETCs for a single high-cost area, but each designated VETC shall:
(1) offer supported services to customers at all locations throughout the high-cost area or areas for which it has been designated; and
(2) for its voice telephone services, meet service quality standards set by the Commission.
(e) A VETC shall receive support as defined in subsection (i) of this section from the fiscal agent of the Vermont Universal Service Fund for each telecommunications line in service or service location, whichever is greater in number, in each high-cost area it services. Such support may be made in the form of a net payment against the carrier’s liability to the Fund. If multiple VETCs are designated for a single area, then each VETC shall receive support for each line it has in service.
(f) As used in this section, a Vermont telephone exchange is a “high-cost area” if the exchange is served by a rural telephone company, as defined by federal law, or if the exchange is designated as a rural exchange in the wholesale tariff of a regional bell operating company (RBOC), as defined by the FCC, or of a successor company to an RBOC. An exchange is not a high-cost area if the Public Utility Commission finds that the supported services are available to all locations throughout the exchange from at least two service providers.
(g) Except as provided in subsection (h) of this section, a VETC shall provide broadband internet access at speeds no lower than 25 Mbps download and 3 Mbps upload in each high-cost area it serves within five years of designation. A VETC need not provide broadband service to a location that has service available from another service provider, as determined by the Department of Public Service.
(h) The Public Utility Commission may modify the buildout requirements of subsection (d) of this section as it relates to broadband internet access to be the geographic area that could be reached using one-half of the funds to be received over five years. A VETC may seek such waiver of the buildout requirements within one year of designation and shall demonstrate the cost of meeting broadband internet access requirements on an exchange basis and propose an alternative buildout plan.
(i) The amount of the monthly support under this section shall be the pro rata share of available funds based on the total number of incumbent local exchange carriers in the State and reflecting each carrier’s lines in service or service locations in its high-cost area or areas, as determined under subsection (e) of this section. If an incumbent local exchange carrier does not petition the Commission for VETC designation, or is found ineligible by the Commission, the share of funds it otherwise would have received under this section shall be used to support the Connectivity Initiative established in section 7515b of this chapter.
(j) The Public Utility Commission shall adopt by rule standards and procedures for ensuring projects funded under this section are not competitive overbuilds of existing wired telecommunications services.
(k) Each VETC shall submit certification that it is meeting the requirements of this section and an accounting of how it expended the funds received under this section in the previous calendar year, with its annual report to the Department of Public Service. For good cause shown, the Public Utility Commission may investigate submissions required by this subsection and may revoke a company’s designation if it finds that the company is not meeting the requirements of this subsection.
(Added 1993, No. 197 (Adj. Sess.), § 5; amended 2011, No. 169 (Adj. Sess.), § 2, eff. May 18, 2012; 2013, No. 190 (Adj. Sess.), § 5, eff. June 16, 2014; 2015, No. 41, § 11; 2019, No. 79, § 4, eff. June 20, 2019.)
§ 7515a Repealed
[Repealed]
2015, No. 41, § 8.
§ 7515b Connectivity Initiative
(a) The Connectivity Initiative shall be administered by the Vermont Community Broadband Board. The purpose of the Connectivity Initiative is to provide each service location in Vermont access to broadband that is capable of speeds of at least 100 Mbps symmetrical. Within this category of service locations, priority shall be given first to unserved and then to underserved locations that are part of a plan to achieve universal broadband coverage in a community or communications union district. As used in this section, “unserved” means a location that only has access to broadband capable of speeds of less than 4 Mbps download and 1 Mbps upload and “underserved” means a location that only has access to broadband capable of speeds of at least 4 Mbps download and 1 Mbps upload but less than 25 Mbps download and 3 Mbps upload.
(b) The Department of Public Service shall publish annually a list of E-911 locations eligible for funding based on the Department’s most recent broadband mapping data. The Board annually shall solicit proposals from communications union districts and from service providers working in conjunction with a communications union district to provide universal broadband service in a community or communications union district, to deploy broadband to eligible E-911 locations. Funding shall be available for capital improvements only, not for operating and maintenance expenses, and shall be available only for projects that the Board determines do not conflict with or undermine the deployment plans of a communications union district. The Board shall give priority to proposals that reflect the lowest cost of providing services to unserved and underserved locations; however, the Board also shall consider:
(1) the proposed data transfer rates and other data transmission characteristics of services that would be available to consumers;
(2) the price to consumers of services;
(3) the proposed cost to consumers of any new construction, equipment installation service, or facility required to obtain service;
(4) whether the proposal would use the best available technology that is economically feasible;
(5) the availability of service of comparable quality and speed;
(6) the objectives of the State’s Telecommunications Plan; and
(7) the extent to which a proposal leverages federal or private funding opportunities.
(c) In order to ensure that grants are disbursed based on the value of work completed, the Board shall develop with each grantee a payment schedule that reflects the verified percentage of project completion. To verify project completion, the grantee shall retain a Board-approved third party to conduct independent field testing, which the Board may supplement with provider-supplied data and crowd-sourced user data. If deemed necessary by the Board, the Board may advance a grantee funds necessary for project commencement. The Board shall retain five percent of an award for two years after project completion to ensure continued compliance with contract terms. A grantee shall reimburse the Board any funds received for contracted work that is not completed pursuant to contract specifications.
(d) The Board shall maintain a publicly accessible inventory of completed broadband projects financed in whole or in part with grants under this section.
(Added 2013, No. 190 (Adj. Sess.), § 6, eff. June 16, 2014; amended 2015, No. 41, § 12; 2017, No. 169 (Adj. Sess.), § 10; 2019, No. 79, § 5, eff. June 20, 2019; 2021, No. 71, § 7c, eff. June 8, 2021; 2021, No. 71, § 7d, eff. Jan. 1, 2022.)
§ 7516 Connectivity Fund
(a) There is created a Connectivity Fund for the purpose of providing support to the High-Cost Program established under section 7515 of this chapter and the Connectivity Initiative established under section 7515b of this chapter. The fiscal agent shall determine annually, on or before November 1, the amount of monies available to the Connectivity Fund. Such funds shall be apportioned as follows: 45 percent to the High-Cost Program and 55 percent to the Connectivity Initiative.
(b) [Repealed.]
(Added 2013, No. 190 (Adj. Sess.), § 4, eff. June 16, 2014; amended 2015, No. 41, § 10; 2019, No. 31, § 8; 2019, No. 79, § 3, eff. June 20, 2019; 2021, No. 71, § 7a, eff. June 8, 2021.)
Subchapter 3 Collection
§ 7521 Charge imposed; wholesale exemption
[Subsection (a) effective until July 1, 2025; see also subsection (a) effective July 1, 2025 set out below.]
(a) A Universal Service Charge is imposed on all retail telecommunications service provided to a Vermont address. Where the location of a service and the location receiving the bill differ, the location of the service shall be used to determine whether the Charge applies. The Charge is imposed on the person purchasing the service, but shall be collected by the telecommunications provider. Each telecommunications service provider shall include in its tariffs filed at the Public Utility Commission a description of its billing procedures for the Universal Service Charge.
[Subsection (a) effective July 1, 2025; see also subsection (a) effective until July 1, 2025 set out above.]
(a) A Universal Service Charge is imposed on all retail telecommunications service provided to a Vermont address. Where the location of a service and the location receiving the bill differ, the location of the service shall be used to determine whether the Charge applies. The Charge is imposed on the person purchasing the service, but shall be collected by the telecommunications service provider. As applicable, each telecommunications service provider shall include in its tariffs filed at the Public Utility Commission a description of its billing procedures for the Universal Service Charge.
(b) The Universal Service Charge shall not apply to wholesale transactions between telecommunications service providers where the service is a component part of a service provided to an end user. This exemption includes network access charges and interconnection charges paid to a local exchange carrier.
[Subsection (c) effective until July 1, 2025; see also subsection (c) effective July 1, 2025 set out below.]
(c) In the case of mobile telecommunications service, the Universal Service Charge is imposed when the customer’s place of primary use is in Vermont. The terms “customer,” “place of primary use,” and “mobile telecommunications service” have the meanings given in 4 U.S.C. § 124. All provisions of 32 V.S.A. § 9782 shall apply to the imposition of the Universal Service Charge under this section.
[Subsection (c) effective July 1, 2025; see also subsection (c) effective until July 1, 2025 set out above.]
(c) In the case of mobile telecommunications service, the Universal Service Charge is imposed when the customer’s place of primary use is in Vermont. As used in this subsection, the terms “customer ” and “place of primary use,” have the meanings given in 4 U.S.C. § 124. All provisions of 32 V.S.A. § 9782 shall apply to the imposition of the Universal Service Charge under this section.
[Subsection (d) effective until July 1, 2025; see also subsection (d) effective July 1, 2025 set out below.]
(d) [Repealed.]
[Subsection (d) effective July 1, 2025; see also subsection (d) effective until July 1, 2025 set out above.]
(d) In the case of interconnected VoIP service, the Universal Service Charge is imposed when the customer’s place of primary use is in Vermont. As used in this subsection, the term “place of primary use” means the street address where the customer’s use of interconnected VoIP service primarily occurs or a reasonable proxy as determined by the interconnected VoIP service provider, such as the customer’s registered location for 911 purposes.
[Subdivision (e)(1) effective until July 1, 2025; see also subdivision (e)(1) effective July 1, 2025 set out below.]
(e)(1) Notwithstanding any other provision of law to the contrary, beginning on January 1, 2020, the Universal Service Charge shall be imposed on all retail sales of prepaid wireless telecommunications service subject to the sales and use tax imposed under 32 V.S.A. chapter 233. The charges shall be collected by sellers or marketplace facilitators collecting sales tax pursuant to 32 V.S.A. § 9713 and remitted to the Department of Taxes in the manner provided under 32 V.S.A. chapter 233. Upon receipt of the charges, the Department of Taxes shall have 30 days to remit the funds to the fiscal agent selected under section 7503 of this chapter. The Commissioner of Taxes shall establish registration and payment procedures applicable to the Universal Service Charge imposed under this subsection consistent with the registration and payment procedures that apply to the sales tax imposed on such services and also consistent with the administrative provisions of 32 V.S.A. chapter 151, including any enforcement or collection action available for taxes owed pursuant to that chapter.
(2) If a minimal amount of prepaid wireless telecommunications service is sold with a prepaid wireless device for a single, nonitemized price, then the seller may elect not to apply the Universal Service Charge to such transaction.
(3) As used in this subsection:
(A) “Minimal amount” means an amount of service denominated as not more than 10 minutes or not more than $5.00.
(B) “Prepaid wireless telecommunications service” means a telecommunications service as defined in subdivision 203(5) of this title that a consumer pays for in advance and that is sold in predetermined units or dollars that decline with use.
(C) “Seller” means a person who sells prepaid wireless telecommunications service to a consumer.
(D) “Marketplace facilitator” shall have the same meaning as in 32 V.S.A. § 9701(56).
[Subdivision (e)(1) effective July 1, 2025; see also subdivision (e)(1) effective until July 1, 2025 set out above.]
(e)(1) Notwithstanding any other provision of law to the contrary, a Universal Service Charge of 2.4 percent shall be imposed on all retail sales of prepaid wireless telecommunications service subject to the sales and use tax imposed under 32 V.S.A. chapter 233. The charges shall be collected by sellers or marketplace facilitators collecting sales tax pursuant to 32 V.S.A. § 9713 and remitted to the Department of Taxes in the manner provided under 32 V.S.A. chapter 233. Upon receipt of the charges, the Department of Taxes shall have 30 days to remit the funds to the fiscal agent selected under section 7503 of this chapter. The Commissioner of Taxes shall establish registration and payment procedures applicable to the Universal Service Charge imposed under this subsection consistent with the registration and payment procedures that apply to the sales tax imposed on such services and also consistent with the administrative provisions of 32 V.S.A. chapter 151, including any enforcement or collection action available for taxes owed pursuant to that chapter.
(2) If a minimal amount of prepaid wireless telecommunications service is sold with a prepaid wireless device for a single, nonitemized price, then the seller may elect not to apply the Universal Service Charge to such transaction.
(3) As used in this subsection:
(A) “Minimal amount” means an amount of service denominated as not more than 10 minutes or not more than $5.00.
(B) “Prepaid wireless telecommunications service” means a telecommunications service as defined in subdivision 203(5) of this title that a consumer pays for in advance and that is sold in predetermined units or dollars that decline with use.
(C) “Seller” means a person who sells prepaid wireless telecommunications service to a consumer.
(D) “Marketplace facilitator” shall have the same meaning as in 32 V.S.A. § 9701(56).
(Added 1993, No. 197 (Adj. Sess.), § 5, eff. Oct. 1, 1994; amended 2001, No. 144 (Adj. Sess.), § 36; 2013, No. 191 (Adj. Sess.), § 29; 2019, No. 79, § 6, eff. Jan. 1, 2020; 2019, No. 79, § 7, eff. June 20, 2019; 2019, No. 131 (Adj. Sess.), § 290; 2019, No. 175 (Adj. Sess.), § 11, eff. July 1, 2021; 2023, No. 145 (Adj. Sess.), § 2, § 4, eff. July 1, 2025.)
§ 7522 Rebate for payment elsewhere
When a telecommunications service is subject to the Charge imposed by section 7521 of this title and also to a similar charge imposed for similar purposes in another state, the customer shall be liable only for the difference between the amount demonstrably paid in the other state and the amount due in this State.
(Added 1993, No. 197 (Adj. Sess.), § 5.)
§ 7523 Rate of charge
[Subsection (a) effective until July 1, 2025; see also subsection (a) effective July 1, 2025 set out below.]
(a) Beginning on July 1, 2014, the rate of charge shall be two percent of retail telecommunications service.
[Subsection (a) effective July 1, 2025; see also subsection (a) effective until July 1, 2025 set out above.]
(a)(1) Except as provided in subsection 7521(e) of this chapter, which pertains to prepaid wireless telecommunications service, and in subdivision (4) of this subsection, the monthly rate of charge shall be $0.72 for each retail access line in service.
(2) The number of access lines a telecommunications service provider provides a customer shall be deemed equal to the number of inbound or outbound, whichever is greater, two-way communications by any technology that the customer can maintain at the same time as provisioned by the provider’s service.
(3) As used in this section, “access line” means a wire or wireless connection that provides voice telecommunications service to or from any device used by a customer, regardless of technology, that is associated with a 10-digit NPA-NXX number or other unique identifier and with a service location or place of primary use in Vermont and that is capable of accessing the 911 system.
(4) A customer enrolled in the federal Lifeline program or the Vermont Lifeline program, or both, is exempt from the Charge established by this chapter.
[Subsection (b) effective until July 1, 2025; see also subsection (b) effective July 1, 2025 set out below.]
(b) Beginning on July 1, 2019, the rate of charge established under subsection (a) of this section shall be increased by four-tenths of one percent of retail telecommunications service, and the monies collected from this increase shall be transferred to the Vermont Community Broadband Fund established under section 8083 of this title, and up to $120,000.00 shall be used to fund a Rural Broadband Technical Assistance Specialist whose duties shall include providing outreach, technical assistance, and other support services to communications union districts established pursuant to chapter 82 of this title and other units of government, nonprofit organizations, cooperatives, and for-profit businesses for the purpose of expanding broadband service to unserved and underserved locations. Support services also may include providing business model templates for various approaches, including formation of or partnership with a cooperative, a communications union district, a rural economic development infrastructure district, an electric utility, or a new or existing internet service provider as operator of the network.
[Subsection (b) effective July 1, 2025; see also subsection (b) effective until July 1, 2025 set out above.]
(b) From the monies collected by the Universal Service Charge under this chapter, 17 percent shall be transferred to the Vermont Community Broadband Fund established under section 8083 of this title, and up to $120,000.00 shall be used to fund a Rural Broadband Technical Assistance Specialist whose duties shall include providing outreach, technical assistance, and other support services to communications union districts established pursuant to chapter 82 of this title and other units of government, nonprofit organizations, cooperatives, and for- profit businesses for the purpose of expanding broadband service to unserved and underserved locations. Support services also may include providing business model templates for various approaches, including formation of or partnership with a cooperative, a communications union district, a rural economic development infrastructure district, an electric utility, or a new or existing internet service provider as operator of the network.
(c) Universal Service Charges imposed and collected by the fiscal agent under this subchapter shall not be transferred to any other fund or used to support the cost of any activity other than in the manner authorized by this section and section 7511 of this title.
(Added 1993, No. 197 (Adj. Sess.), § 5; amended 1995, No. 182 (Adj. Sess.), § 7, eff. May 22, 1996; 2005, No. 171 (Adj. Sess.), § 2; 2013, No. 190 (Adj. Sess.), § 7, eff. June 16, 2014; 2019, No. 79, § 2, eff. June 20, 2019; 2021, No. 71, § 7b, eff. June 8, 2021; 2023, No. 145 (Adj. Sess.), § 3, eff. July 1, 2025.)
§ 7524 Payment to fiscal agent
(a) Telecommunications service providers shall pay to the fiscal agent all Universal Service Charge receipts collected from customers. A report in a form approved by the Department of Public Service shall be included with each payment.
(b) Payments shall be made monthly, by the 15th day of the month, and shall be based upon amounts collected in the preceding month. If the amount is small, the Commissioner may allow payment to be made less frequently, and may permit payment on an accrual basis.
(c) Telecommunications service providers shall maintain records adequate to demonstrate compliance with the requirements of this chapter. The Commissioner or the fiscal agent may examine those records in a reasonable manner.
(d) When a payment is due under this section by a telecommunications service provider who has provided customer credits under the Lifeline program, the amount due may be reduced by the amount of credit granted.
(e) The fiscal agent shall examine the records of telecommunications service providers to determine whether their receipts reflect application of the Universal Service Charge on all assessable telecommunications services under this chapter, including the federal subscriber line charge, directory assistance, enhanced services unless they are billed as separate line items, and toll-related services.
(f) The Department of Public Service shall ensure the fiscal agent is authorized to negotiate and collect from telecommunications service providers any Universal Service Charges not properly assessed or remitted pursuant to this chapter. For the purpose of this subsection, the fiscal agent may examine the records of telecommunications providers for the immediately preceding three years and assess the provider for underpayments, if any, as appropriate.
(Added 1993, No. 197 (Adj. Sess.), § 5; amended 1995, No. 99 (Adj. Sess.), § 14; 1995, No. 182 (Adj. Sess.), § 8, eff. May 22, 1996; 2013, No. 191 (Adj. Sess.), § 30; 2015, No. 41, § 26, eff. June 1, 2015.)
§ 7525 Delinquent payments
(a) If a report required by this chapter is not filed, or if a report when filed is incorrect or insufficient, or if a provider fails to bill and collect amounts required by this chapter, the fiscal agent shall determine a delinquency from information available and shall so inform the provider.
(b) Interest shall be charged on delinquent payments to the fiscal agent at the rate of 1.5 percent per month or part thereof.
(c) The Public Utility Commission may hear appeals from any determinations of delinquency made by the fiscal agent. Any such determination shall become final if not so appealed within 60 days following its issuance.
(d) Upon petition of the fiscal agent, the Public Utility Commission may impose, after notice and an opportunity for hearing, civil penalties against a telecommunications service provider who is delinquent in making payments to the fiscal agent. Any penalty imposed may be based upon the size and duration of the violation, but no such penalty shall exceed twice the amount of the delinquency or $1,000.00, whichever is larger.
(e) A telecommunications service provider who has filed reports required by this chapter shall not be liable for delinquent payments that were due more than three years before the fiscal agent gave notice of delinquency to the provider.
(f) Payments, interest, and penalties due under this chapter may be collected by civil actions in the courts of this State initiated in the name of the State or fiscal agent.
(Added 1993, No. 197 (Adj. Sess.), § 5; amended 1995, No. 99 (Adj. Sess.), § 15; 2005, No. 171 (Adj. Sess.), § 3; 2023, No. 85 (Adj. Sess.), § 454, eff. July 1, 2024.)
Chapter 89 Renewable Energy Programs
Subchapter 1 General Provisions
§ 8001 Renewable energy goals
(a) The General Assembly finds it in the interest of the people of the State to promote the State energy policy established in section 202a of this title by:
(1) Balancing the benefits, lifetime costs, and rates of the State’s overall energy portfolio to ensure that to the greatest extent possible the economic benefits of renewable energy in the State flow to the Vermont economy in general, and to the rate-paying citizens of the State in particular.
(2) Supporting development of renewable energy that uses natural resources efficiently and related planned energy industries in Vermont, and the jobs and economic benefits associated with such development, while retaining and supporting existing renewable energy infrastructure.
(3) Providing an incentive for the State’s retail electricity providers to enter into affordable, long-term, stably priced renewable energy contracts that mitigate market price fluctuation for Vermonters.
(4) Developing viable markets for renewable energy and energy efficiency projects.
(5) Protecting and promoting air and water quality in the State and region through the displacement of those fuels, including fossil fuels, that are known to emit or discharge pollutants.
(6) Contributing to reductions in global climate change and anticipating the impacts on the State’s economy that might be caused by federal regulation designed to attain those reductions.
(7) Providing support and incentives to locate renewable energy plants of small and moderate size in a manner that is distributed across the State’s electric grid, including locating such plants in areas that will provide benefit to the operation and management of that grid through such means as reducing line losses and addressing transmission and distribution constraints.
(8) Promoting the inclusion, in Vermont’s electric supply portfolio, of renewable energy plants that are diverse in plant capacity and type of renewable energy technology.
(b) The Commission shall adopt the rules that are necessary to allow the Commission and the Department to implement and supervise programs pursuant to subchapter 1 of this chapter.
(Added 2003, No. 69, § 1, eff. June 17, 2003; amended 2005, No. 61, § 1; 2011, No. 47, § 6 (eff. May 25, 2011) and § 18; 2011, No. 170 (Adj. Sess.), § 1, eff. May 18, 2012; 2015, No. 56, § 21.)
§ 8002 Definitions
As used in this chapter:
(1) “Commission” means the Public Utility Commission under section 3 of this title.
(2) “Commissioned” or “commissioning” means the first time a plant is put into operation following initial construction or modernization if the costs of modernization are at least 50 percent of the costs that would be required to build a new plant including all buildings and structures technically required for the new plant’s operation. However, these terms shall not include activities necessary to establish operational readiness of a plant.
(3) “CPI” means the Consumer Price Index for all urban consumers, designated as “CPI-U,” in the northeast region, as published by the U.S. Department of Labor, Bureau of Labor Statistics.
(4) “Customer” means a retail electric consumer.
(5) “Department” means the Department of Public Service under section 1 of this title, unless the context clearly indicates otherwise.
(6) “Energy conversion efficiency” means the effective use of energy and heat from a combustion process.
(7) “Environmental attributes” means the characteristics of a plant that enable the energy it produces to qualify as renewable energy and include any and all benefits of the plant to the environment such as avoided emissions or other impacts to air, water, or soil that may occur through the plant’s displacement of a nonrenewable energy source.
(8) “Existing renewable energy” means renewable energy produced by a plant that came into service prior to or on December 31, 2009.
(9) “Greenhouse gas reduction credits” shall be as defined in section 8006a of this title.
(10) “Group net metering system” means a net metering system serving more than one customer, or a single customer with multiple electric meters, located within the service area of the same retail electricity provider. Various buildings owned by municipalities, including water and wastewater districts, fire districts, villages, school districts, and towns, may constitute a group net metering system. A union or district school facility may be considered in the same group net metering system with buildings of its member schools that are located within the service area of the same retail electricity provider. A system that files a complete application for a certificate of public good on or after January 1, 2026 shall not qualify for group net metering, unless the plant will be located on the same parcel, or a parcel adjacent to, the parcel where the energy is utilized.
(11) “kW” means kilowatt or kilowatts (AC).
(12) “kWh” means kW hour or hours.
(13) “MW” means megawatt or megawatts (AC).
(14) “MWH” means MW hour or hours.
(15) “Net metering” means measuring the difference between the electricity supplied to a customer and the electricity fed back by the customer’s net metering system during the customer’s billing period:
(A) Using a single, non-demand meter or other meter that would otherwise be applicable to the customer’s usage but for the use of net metering.
(B) If the system serves more than one customer, using multiple meters. The calculation shall be made by converting all meters to a non- demand, non-time-of-day meter, and equalizing them to the tariffed kWh rate.
(16) “Net metering system” means a plant for generation of electricity that:
(A) is of not more than 500 kW capacity;
(B) operates in parallel with facilities of the electric distribution system;
(C) is intended primarily to offset the customer’s own electricity requirements and does not primarily supply electricity to electric vehicle supply equipment, as defined in section 201 of this title, for the resale of electricity to the public by the kWh or for other retail sales to the public, including those based in whole or in part on a flat fee per charging session or a time-based fee for occupying a parking space while using electric vehicle supply equipment;
(D)(i) employs a renewable energy source; or
(ii) is a qualified micro-combined heat and power system of 20 kW or fewer that meets the definition of combined heat and power in subsection 8015(b) of this title and uses any fuel source that meets air quality standards; and
(E)(i) for a system that files a complete application for a certificate of public good after December 31, 2024, except for systems as provided for in subdivision (ii) of this subdivision (E), generates energy that will be used on the same parcel as, or a parcel adjacent to, the parcel where the plant is located;
(ii) for a system that files a complete application for a certificate of public good after December 31, 2025, if the system serves a multifamily building containing qualified rental units serving low-income tenants, as defined under 32 V.S.A. § 5404a(a)(6), generates energy that will be used on the same parcel as, or a parcel adjacent to, the parcel where the plant is located; and
(iii) for purposes of subdivisions (10) and (16), two parcels shall be adjacent if they share a property boundary or are adjacent and separated only by a river, stream, railroad line, private road, public highway, or similar intervening landform.
(17) “New renewable energy” means renewable energy capable of delivery in New England and produced by a specific and identifiable plant coming into service on or after January 1, 2010, but excluding energy generated by a hydroelectric generation plant with a capacity of 200 MW or greater.
(A) Energy from within a system of generating plants that includes renewable energy shall not constitute new renewable energy, regardless of whether the system includes specific plants that came or come into service on or after January 1, 2010.
(B) Except as provided in subdivision 8005(c)(3) of this title, “new renewable energy” also includes the additional energy from an existing renewable energy plant retrofitted with advanced technologies or otherwise operated, modified, or expanded to increase the kWh output of the plant in excess of a historical baseline established by calculating the average output of that plant for the 10-year period that ended January 1, 2010. If the production of new renewable energy through changes in operations, modification, or expansion involves combustion of the resource, the system also must result in an incrementally higher level of energy conversion efficiency or significantly reduced emissions.
(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.
(19) “Plant capacity” means the rated electrical nameplate for a plant, except that, in the case of a solar energy plant, the term shall mean the aggregate AC nameplate capacity of all inverters used to convert the plant’s output to AC power.
(20) “Plant owner” means a person who has the right to sell electricity generated by a plant.
(21) “Renewable energy” means energy produced using a technology that relies on a resource that is being consumed at a harvest rate at or below its natural regeneration rate.
(A) For purposes of this subdivision (21), 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 wastes, or of food wastes shall be considered renewable energy resources, but no other form of solid waste, other than silvicultural waste, shall be considered renewable.
(B) For purposes of this subdivision (21), no form of nuclear fuel shall be considered renewable.
(C) The only portion of electricity produced by a system of generating resources that shall be considered renewable is that portion generated a technology that qualifies as renewable under this subdivision (21).
(D) The Commission by rule may add technologies or technology categories to the definition of “renewable energy,” provided that technologies using the following fuels shall not be considered renewable energy supplies: coal, oil, propane, and natural gas.
(E) In this chapter, renewable energy refers to either “existing renewable energy” or “new renewable energy.”
(22)(A) “Renewable pricing” shall mean an optional service provided or contracted for by an electric company:
(i) under which the company’s customers may voluntarily either:
(I) purchase all or part of their electric energy from renewable sources as defined in this chapter; or
(II) cause the purchase and retirement of tradeable renewable energy credits on the participating customer’s behalf; and
(ii) that increases the company’s reliance on renewable sources of energy beyond those the electric company would otherwise be required to provide under section 218c of this title.
(B) Renewable pricing programs may include:
(i) contribution-based programs in which participating customers can determine the amount of a contribution, monthly or otherwise, that will be deposited in a Commission-approved fund for new renewable energy project development;
(ii) energy-based programs in which customers may choose all or a discrete portion of their electric energy use to be supplied from renewable resources;
(iii) facility-based programs in which customers may subscribe to a share of the capacity or energy from specific new renewable energy resources.
(23) “Retail electricity provider” or “provider” means a company engaged in the distribution or sale of electricity directly to the public.
(24) “Standard Offer Facilitator” means an entity appointed by the Commission pursuant to subsection 8005a(a) of this title.
(25) [Repealed.]
(26) “Tradeable renewable energy credits” means all of the environmental attributes associated with a single unit of energy generated by a renewable energy source where:
(A) those attributes are transferred or recorded separately from that unit of energy;
(B) the party claiming ownership of the tradeable renewable energy credits has acquired the exclusive legal ownership of all, and not less than all, the environmental attributes associated with that unit of energy; and
(C) exclusive legal ownership can be verified through an auditable contract path or pursuant to the system established or authorized by the Commission or any program for tracking and verification of the ownership of environmental attributes of energy legally recognized in any state and approved by the Commission.
(27) “Vermont composite electric utility system” means the combined generation, transmission, and distribution resources along with the combined retail load requirements of the Vermont retail electricity providers.
(28) “Energy transformation project” means an undertaking that provides energy-related goods or services but does not include or consist of the generation of electricity and that results in a net reduction in fossil fuel consumption by the customers of a retail electricity provider and in the emission of greenhouse gases attributable to that consumption. Examples of energy transformation projects may include home weatherization or other thermal energy efficiency measures; air source or geothermal heat pumps; high efficiency heating systems; increased use of biofuels; biomass heating systems; support for transportation demand management strategies; support for electric vehicles or related infrastructure; and infrastructure for the storage of renewable energy on the electric grid.
(29) “RES” means the Renewable Energy Standard established under sections 8004 and 8005 of this title.
(30) “Energy storage facility” has the same meaning as in section 201 of this title.
(31) “Load” means the total amount of electricity utilized by a retail electricity provider over a 12-month calendar year period, including its retail electric sales, any use by the provider itself not included in retail sales, and transmission and distribution line losses associated with and allocated to the retail electricity provider.
(32) “Load growth” means the increase above a baseline year in a retail electricity provider’s load.
(Added 2003, No. 69, § 1, eff. June 17, 2003; amended 2005, No. 61, § 2; 2007, No. 92 (Adj. Sess.), § 19; 2009, No. 45, § 2, eff. May 27, 2009; 2009, No. 159 (Adj. Sess.), § 13, eff. July 1, 2012; 2011, No. 47, § 7, eff. May 25, 2011 and § 18; 2011, No. 125 (Adj. Sess.), § 8; 2011, No. 170 (Adj. Sess.), § 2, eff. May 18, 2012 and § 10; 2013, No. 89, § 14; 2013, No. 99 (Adj. Sess.), § 3, eff. Jan. 1, 2017; 2015, No. 56, § 25; 2017, No. 53, § 11; 2019, No. 59, § 33, eff. June 14, 2019; 2019, No. 81, § 4; 2021, No. 54, § 10; 2023, No. 179 (Adj. Sess.), § 2, eff. July 1, 2024.)
§ 8003 Renewable energy pricing
(a) An electric utility, municipal department formed under local charter or chapter 79 of this title, or electric cooperative formed under chapter 81 of this title may implement a renewable energy pricing program under this section for its customers, or offer customers the option of making a voluntary contribution to the Vermont Clean Energy Development Fund established under section 8015 of this title. Such renewable energy pricing programs may include tariffs, standard special contracts, or other arrangements whose purpose is to increase the company’s reliance on, or the customer’s support of, renewable sources of energy or the type and quantity of renewable energy resources available.
(b) A standard special contract for renewable pricing that has been approved as to form and substance by the Commission under this section shall not require further approval by the Commission under section 229 of this title as to individual customers who choose to execute that contract.
(c) Renewable pricing programs may be priced in the form of a premium relative to the tariff that would otherwise apply; provided the premium shall be cost-based, shall reasonably reflect the difference between acquiring the renewable energy and the utility’s alternative cost of power, including administrative costs, and shall be adjusted via such periodic adjustment mechanisms, including adjustment clauses, as the Commission shall approve as part of a renewable pricing program. Any renewable pricing program shall require that any costs of power in excess of the company’s alternative cost of power shall be borne solely by those customers who elect to participate in the renewable pricing program.
(d) Tradeable renewable energy credits (with or without other features), tradeable emissions credits, emission offsets, or other market instruments created or obtained by energy resources acquired pursuant to or as part of a renewable pricing program approved under this section shall be permanently retired by or on behalf of the program’s subscribers, and shall not be sold or otherwise disposed of. However, if a program is not fully subscribed, any such instruments created or obtained by the unsubscribed portion of the program may be sold or disposed of at no less than market value if the net proceeds of such sale or disposal are used to reduce the cost paid under the renewable pricing program.
(e) The Commission shall ensure that disclosures and representations made regarding renewable pricing programs are accurate, are reasonably supported by objective data, disclose the types of technologies used, whether the energy is Vermont-based or not, and clearly distinguish between energy or tradeable energy credits provided from renewable and nonrenewable sources, and existing and new sources.
(f) [Repealed.]
(g) The Commission shall consider the following factors in deciding whether and upon what conditions to approve a proposed renewable energy pricing program:
(1) minimization of marketing and administrative expenses;
(2) auditing or certification of sources of energy or tradeable renewable energy credits;
(3) marketing and promotion plans;
(4) effectiveness of the program in meeting the goals of promoting renewable energy generation and public understanding of renewable energy sources in Vermont;
(5) retention by the program of renewable energy production incentives, tax incentives, and other incentives earned or otherwise obtained by energy resources acquired pursuant to or as part of a renewable energy pricing program approved under this section to reduce the cost of any premiums paid under this section; and
(6) costs imposed on nonparticipating customers arising on account of the implementation of the voluntary renewable energy pricing program.
(Added 2003, No. 69, § 1, eff. June 17, 2003; amended 2007, No. 92 (Adj. Sess.), § 20; 2009, No. 45, § 4a, eff. May 27, 2009.)
§ 8004 Sales of electric energy; Renewable Energy Standard (RES)
(a) Establishment; requirements. The RES is established. Under this program, a retail electricity provider shall not sell or otherwise provide or offer to sell or provide electricity in the State of Vermont without ownership of sufficient energy produced by renewable energy plants or sufficient tradeable renewable energy credits from plants whose energy is capable of delivery in New England that reflect the required amounts of renewable energy set forth in section 8005 of this title or without support of energy transformation projects in accordance with that section. A retail electricity provider may meet the required amounts of renewable energy through eligible tradeable renewable energy credits that it owns and retires, eligible renewable energy resources with environmental attributes still attached, or a combination of those credits and resources.
(b) Rules. The Commission shall adopt the rules that are necessary to allow the Commission and the Department to implement and supervise further the implementation and maintenance of the RES.
(c) RECS; banking. The Commission shall allow a provider that has met the required amount of renewable energy in a given year, commencing with 2017, to retain tradeable renewable energy credits created or purchased in excess of that amount for application to the provider’s required amount of renewable energy in one of the following three years.
(d) Alternative compliance payment. In lieu of purchasing renewable energy or tradeable renewable energy credits or supporting energy transformation projects to satisfy the requirements of this section and section 8005 of this title, a retail electricity provider in this State may pay to the Vermont Clean Energy Development Fund established under section 8015 of this title an alternative compliance payment at the applicable rate set forth in section 8005. The administrator of the Vermont Clean Energy Development Fund shall use the payment from a retail electricity provider electing to make an alternative compliance payment to satisfy its obligations under subdivisions 8005(a)(1), 8005(a)(2), 8005(a)(4), and 8005(a)(5) of this title for the development of renewable energy plants that are intended to serve and benefit customers with low income of the retail electricity provider that has made the payment. Such plants shall be located within the provider’s service territory, if feasible. In the event that such a payment is insufficient to enable the development of a renewable energy plant, the administrator may use the payment for other initiatives allowed under section 8015 of this title that will benefit customers with low income of the retail electricity provider that has made the payment. As used in this subsection (d), “customer with low income” means a person purchasing energy from a retail electricity provider and with an income that is less than or equal to 80 percent of area median income, adjusted for family size, as published annually by the U.S. Department of Housing and Urban Development.
(e) VPPSA members. In the case of members of the Vermont Public Power Supply Authority, the requirements of this chapter may be met in the aggregate.
(f) Joint efforts. Retail electricity providers may engage in joint efforts to meet one or more categories within the RES.
(Added 2003, No. 69, § 1, eff. June 17, 2003; amended 2005, No. 61, § 3; 2005, No. 208 (Adj. Sess.), § 14; 2007, No. 92 (Adj. Sess.), § 21; 2009, No. 45, § 3, eff. May 27, 2009; 2011, No. 47, §§ 18, 20m(a); 2015, No. 56, § 2; 2023, No. 179 (Adj. Sess.), § 3, eff. July 1, 2024.)
§ 8005 RES categories
(a) Categories. This section specifies five categories of required resources to meet the requirements of the RES established in section 8004 of this title: total renewable energy, distributed renewable generation, energy transformation, new renewable energy, and load growth renewable energy. In order to support progress toward Vermont’s climate goals and requirements, a provider may, but shall not be required to, exceed the statutorily required amounts under this section.
(1) Total renewable energy.
(A) Purpose; establishment. To encourage the economic and environmental benefits of renewable energy, this subdivision establishes, for the RES, minimum total amounts of renewable energy within the supply portfolio of each retail electricity provider. To satisfy this requirement, a provider may use renewable energy with environmental attributes attached or any class of tradeable renewable energy credits generated by any renewable energy plant whose energy is capable of delivery in New England.
(B) Required amounts. The amounts of total renewable energy required by this subsection (a) shall be 63 percent of each retail electricity provider’s annual load during the year beginning on January 1, 2025, increasing by at least an additional four percent each third January 1 thereafter until reaching 100 percent:
(i) on and after January 1, 2035 for a retail electricity provider who serves a single customer that takes service at 115 kilovolts and each municipal retail electricity provider formed under local charter or chapter 79 of this title; and
(ii) on and after January 1, 2030, for all other retail electricity providers.
(C) Relationship to other categories. Distributed renewable generation used to meet the requirements of subdivision (2) of this subsection (a), new renewable energy under subdivision (4) of this subsection (a), and load growth renewable generation under subdivision (5) of this subsection (a) shall also count toward the requirements of this subdivision. However, an energy transformation project under subdivision (3) of this subsection (a) shall not count toward the requirements of this subdivision.
(D) Municipal providers; petition. On petition by a provider that is a municipal electric utility serving not more than 7,000 customers, the Commission may reduce the provider’s required amount under this subdivision (1) for a period of up to three years. The Commission may approve one such period only for a municipal provider. The Commission may reduce this required amount if it finds that:
(i) the terms or conditions of an environmental permit or certification necessitate a reduction in the electrical energy generated by an in-state hydroelectric facility that the provider owns and that this reduction will require the provider to purchase other renewable energy with environmental attributes attached or tradeable renewable energy credits in order to meet this required amount; and
(ii) this purchase will:
(I) cause the provider to increase significantly its retail rates; or
(II) materially impair the provider’s ability to meet the public’s need for energy services after safety concerns are addressed, in the manner set forth in subdivision 218c(a)(1) (least-cost integrated planning) of this title.
(2) Distributed renewable generation.
(A) Purpose; establishment. This subdivision establishes a distributed renewable generation category for the RES. This category encourages the use of distributed generation to support the reliability of the State’s electric system; reduce line losses; contribute to avoiding or deferring improvements to that system necessitated by transmission or distribution constraints; and diversify the size and type of resources connected to that system. This category requires the use of renewable energy for these purposes to reduce environmental and health impacts from air emissions that would result from using other forms of generation.
(B) Definition. As used in this section, “distributed renewable generation” means:
(i) a renewable energy plant that has a plant capacity of five MW or less;
(ii) is one of the following:
(I) new renewable energy;
(II) a hydroelectric renewable energy plant that is, on or before January 1, 2024, owned and operated by a municipal electric utility formed under local charter or chapter 79 of this title, as of January 1, 2020, including future plant modifications that do not cause the capacity of such a plant to exceed five MW; or
(III) a hydroelectric renewable energy plant that is, on or before January 1, 2024, owned and operated by a retail electricity provider that is not a municipal electric utility, provided such plant is and continues to be certified by the Low Impact Hydropower Institute. Plants owned by such utilities on or before January 1, 2024, which are later certified by the Low Impact Hydropower Institute, and continue to be certified shall be eligible under this subdivision (2) from the date of certification. Any future modifications that do not cause the capacity of such a plant to exceed five MW shall also be eligible under this subdivision (2); and
(iii) is one of the following:
(I) is directly connected to the subtransmission or distribution system of a Vermont retail electricity provider;
(II) is directly connected to the transmission system of an electric company required to submit a Transmission System Plan under subsection 218c(d) of this title, if the plant is part of a plan approved by the Commission to avoid or defer a transmission system improvement needed to address a transmission system reliability deficiency identified and analyzed in that Plan; or
(III) is a net metering system approved under the former section 219a or under section 8010 of this title if the system is new renewable energy and the interconnecting retail electricity provider owns and retires the system’s environmental attributes.
(C) Required amounts. The required amounts of distributed renewable generation shall be 5.8 percent of each retail electricity provider’s annual load during the year beginning on January 1, 2025, increasing by at least an additional:
(i) one and a half percent each subsequent January 1 until reaching 20 percent on and after January 1, 2035 for a retail electricity provider who serves a single customer that takes service at 115 kilovolts and each municipal electric utility formed under local charter or chapter 79 of this title; and
(ii) two percent each subsequent January 1 until reaching 20 percent on and after January 1, 2032 for all other retail electricity providers.
(D) Distributed generation greater than five MW. On petition of a retail electricity provider, the Commission may for a given year allow the provider to employ energy with environmental attributes attached or tradeable renewable energy credits from a renewable energy plant with a plant capacity greater than five MW to satisfy the distributed renewable generation requirement if the plant would qualify as distributed renewable generation but for its plant capacity when the provider demonstrates either that:
(i) it is unable during a given year to meet the requirement solely with qualifying renewable energy plants of five MW or less. To demonstrate this inability, the provider shall issue one or more requests for proposals, and show that it is unable to obtain sufficient ownership of environmental attributes to meet its required amount under this subdivision (2) for that year from:
(I) the construction and interconnection to its system of distributed renewable generation that is consistent with its approved least-cost integrated resource plan under section 218c of this title at a cost less than or equal to the sum of the applicable alternative compliance payment rate and the applicable rates published by the Department under the Commission’s rules implementing subdivision 209(a)(8) of this title; and
(II) purchase of tradeable renewable energy credits for distributed renewable generation at a cost that is less than the applicable alternative compliance rate; or
(ii) it has only one retail electricity customer who takes service at 115 kilovolts on property owned or controlled by the customer as of January 1, 2024. Such a provider may seek leave under this subdivision (D) for a period greater than a given year.
(3) Energy transformation.
(A) Purpose; establishment. This subdivision establishes an energy transformation category for the RES. This category encourages Vermont retail electricity providers to support additional distributed renewable generation or to support other projects to reduce fossil fuel consumed by their customers and the emission of greenhouse gases attributable to that consumption. A retail electricity provider may satisfy the energy transformation requirement through distributed renewable generation in addition to the generation used to satisfy subdivision (2) of this subsection (a) or energy transformation projects or a combination of such generation and projects.
(B) Required amounts. For the energy transformation category, the required amounts shall be 7.33 percent of each retail electricity provider’s annual load during the year beginning January 1, 2025, increasing by at least an additional two-thirds of a percent each subsequent January 1 until reaching 12 percent on and after January 1, 2032. However, in the case of a provider that is a municipal electric utility serving not more than 7,000 customers, the required amount shall be six percent of the provider’s load beginning on January 1, 2025, increasing by an additional two-thirds of a percent each subsequent January 1 until reaching 10 and two-thirds percent on and after January 1, 2032. Prior to January 1, 2019, such a municipal electric utility voluntarily may engage in one or more energy transformation projects in accordance with this subdivision (3). In order to support progress toward Vermont’s climate goals and requirements, a retail electricity provider may, but shall not be required to, exceed the statutorily required amounts, up to and including procuring all available energy transformation category projects and measures available at or below the relevant alternative compliance payment rate.
(C) Eligibility criteria. For an energy transformation project to be eligible under this subdivision (a)(3), each of the following shall apply:
(i) Implementation of the project shall have commenced on or after January 1, 2015.
(ii) Over its life, the project shall result in a net reduction in fossil fuel consumed by the provider’s customers and in the emission of greenhouse gases attributable to that consumption, whether or not the fuel is supplied by the provider.
(iii) The project shall meet the need for its goods or services at the lowest present value life cycle cost, including environmental and economic costs. Evaluation of whether this subdivision (iii) is met shall include analysis of alternatives that do not increase electricity consumption.
(iv) The project shall cost the utility less per MWH than the applicable alternative compliance payment rate.
(D) Conversion. For the purpose of determining eligibility and the application of the energy transformation project to a provider’s annual requirement, the provider shall convert the net reduction in fossil fuel consumption resulting from the energy transformation project to a MWH equivalent of electric energy, in accordance with rules adopted by the Commission. The conversion shall use the most recent year’s approximate heat rate for electricity net generation from the total fossil fuels category as reported by the U.S. Energy Information Administration in its Monthly Energy Review. If an energy transformation project is funded by more than one regulated entity, the Commission shall prorate the reduction in fossil fuel consumption among the regulated entities. In this subdivision (D), “regulated entity” includes each provider and each efficiency entity appointed under subsection 209(d) of this title.
(E) Other sources.
(i) A retail electricity provider or a provider’s partner may oversee an energy transformation project under this subdivision (3). However, the provider shall deliver the project’s goods or services in partnership with persons other than the provider unless exclusive delivery through the provider is more cost-effective than delivery by another person or there is no person other than the provider with the expertise or capability to deliver the goods or services.
(ii) An energy transformation project may provide incremental support to a program authorized under Vermont statute that meets the eligibility criteria of this subdivision (3) but may take credit only for the additional amount of service supported and shall not take credit for that program’s regularly budgeted or approved investments.
(iii) To meet the requirements of this subdivision (3), one or more retail electricity providers may jointly propose with an energy efficiency entity appointed under subdivision 209(d)(2) of this title an energy transformation project or group of such projects. The proposal shall include standards of measuring performance and methods to allocate savings and reductions in fossil fuel consumption and greenhouse gas emissions among each participating provider and efficiency entity.
(F) Implementation. To carry out this subdivision (3), the Commission shall adopt rules:
(i) For the conversion methodology in accordance with subdivision (3)(D) of this subsection (a).
(ii) To provide a process for prior approval of energy transformation projects by the Commission or its designee. This process shall ensure that each of these projects meets the requirements of this subdivision (3) and need not consist of individual review of each energy transformation project prior to implementation as long as the mechanism ensures those requirements are met. An energy transformation project that commenced prior to initial adoption of rules under this subdivision (F) may seek approval after such adoption.
(iii) For cost-effectiveness screening of energy transformation projects. This screening shall be consistent with the provisions of this subdivision (3) and, as applicable, the screening tests developed under subsections 209(d) (energy efficiency) and 218c(a) (least-cost integrated planning) of this title.
(iv) To allow a provider who has met its required amount under this subdivision (3) in a given year to apply excess net reduction in fossil fuel consumption, expressed as a MWH equivalent, from its energy transformation project or projects during that year toward the provider’s required amount in a future year.
(v) To ensure periodic evaluation of an energy transformation project’s claimed fossil fuel reductions, avoided greenhouse gas emissions, conversion to MWH equivalent, cost-effectiveness and, if applicable, energy savings, and to ensure annual verification and auditing of a provider’s claims regarding project completion and resulting MWH equivalent. Changes to project claims resulting from periodic evaluations shall not reduce retroactively claims made on behalf of a project approved under subdivision (3)(F)(ii) of this subsection (a) or reduce verified claims carried forward under subdivision (3)(F)(iv) of this subsection (a).
(vi) To ensure that all ratepayers have an equitable opportunity to participate in, and benefit from, energy transformation projects regardless of rate class, income level, or provider service territory.
(vii) To ensure the coordinated delivery of energy transformation projects with the delivery of similar services, including low-income weatherization programs, entities that fund and support affordable housing, energy efficiency programs delivered under section 209 of this title, and other energy efficiency programs delivered locally or regionally within the State.
(viii) To ensure that, if an energy transformation project will increase the use of electric energy, the project incorporates best practices for demand management, uses technologies appropriate for Vermont, and encourages the installation of the technologies in buildings that meet minimum energy performance standards.
(ix) To provide a process under which a provider may withdraw from or terminate, in an orderly manner, an ongoing energy transformation project that no longer meets the eligibility criteria because of one or more factors beyond the control of the project and the provider.
(G) Petitions. On petition of a retail electricity provider in any given year, the Commission may:
(i) reduce the provider’s required amount under this subdivision (3) for that year, without penalty or alternative compliance payment, if the Commission finds that compliance with the required amount for that year will:
(I) cause the provider to increase significantly its retail rates; or
(II) materially impair the provider’s ability to meet the public’s need for energy services after safety concerns are addressed, in the manner set forth in subdivision 218c(a)(1) (least-cost integrated planning) of this title; or
(ii) allow a provider who failed to achieve the required amount under this subdivision (3) during the preceding year to avoid paying the alternative compliance payment if the Commission:
(I) finds that the provider made a good faith effort to achieve the required amount and its failure to achieve that amount resulted from market factors beyond its control; and
(II) directs that the provider add the difference between the required amount and the provider’s actually achieved amount for that year to its required amount for one or more future years.
(4) New renewable energy.
(A) Purpose; establishment. This subdivision (4) establishes a new regional renewable energy category for the RES. This category encourages the use of new renewable generation to support the reliability of the regional ISO-NE electric system. To satisfy this requirement, a provider shall use new renewable energy with environmental attributes attached or any class of tradeable renewable energy credits generated by any renewable energy plant coming into service after January 1, 2010 whose energy is capable of delivery in New England.
(B) Required amounts and exemption. A retail electricity provider that is 100 percent renewable under subdivision (b)(1) of this section shall be exempt from any requirement for new renewable energy under this subdivision (4). For all other retail electricity providers, the amount of new renewable energy required by this subsection (a) shall be:
(i) For a retail electricity provider with 75,000 or more customers, the following percentages of each provider’s annual load:
(I) Four percent beginning on January 1, 2027.
(II) 10 percent on and after January 1, 2030.
(III) 15 percent on and after January 1, 2032.
(IV) 20 percent on and after January 1, 2035. If the Commission determines in the report required under subdivision 202b(e)(9) of this title that it is reasonable to expect that there will be sufficient new regional renewable resources available for a provider to meet its requirement under this subdivision (4) at or below the alternative compliance payment rate established in subdivision (6)(C) of this subsection (a) during a year beginning prior to January 1, 2035, the Commission shall require that provider to meet its requirement under this subdivision (4) in the earliest year the Commission determines it can, provided that the provider shall not be required to meet that requirement prior to the year starting January 1, 2032.
(ii) For a retail electricity provider with less than 75,000 customers, the following percentages of each provider’s annual load:
(I) five percent beginning on January 1, 2030; and
(II) 10 percent on and after January 1, 2035.
(C) Relationship to other categories. Distributed renewable generation used to meet the requirements of subdivision (2) of this subsection (a) shall not also count toward the requirements of this subdivision (4). An energy transformation project under subdivision (3) of this subsection (a) shall not count toward the requirements of this subdivision (4).
(D) Single-customer provider. If a retail electricity provider with one customer taking service at 115 kilovolts has not satisfied the distributed renewable generation requirements of subdivision (2) of this subsection (a) on property owned or controlled by the customer as of January 1, 2024, and the cost of additional distributed renewable generation would be at or above the alternative compliance payment rate for the distributed renewable generation category or meeting that requirement with new renewable energy on its property would be economically infeasible, that provider may satisfy the requirements of subdivision (2) of this subsection (a) with an equivalent amount of increased new renewable energy as defined in this subdivision (4).
(5) Load growth; retail electricity providers; 100 percent renewable.
(A) For any retail electricity provider that is 100 percent renewable under subdivision (b)(1) of this section, that provider shall meet its load growth above its 2024 calendar year load, with at least the following percentages of new renewable energy or any renewable energy eligible under subdivision (2) of this subsection (a):
(i) 50 percent beginning on January 1, 2025;
(ii) 75 percent on and after January 1, 2026;
(iii) 90 percent on and after January 1, 2027;
(iv) 100 percent on and after January 1, 2028 until the provider’s annual load exceeds 135 percent of the provider’s 2022 annual load, at which point the provider shall meet its additional load growth with at least 50 percent new renewable energy until 2035; and
(v) 75 percent on and after January 1, 2035.
(B) For a retail electricity provider with 75,000 or more customers, and for each provider, excluding any provider that is 100 percent renewable under subdivision (b)(1) of this section, that is a member of the Vermont Public Power Supply Authority or its successor, that provider shall meet its load growth above its 2035 calendar year load with 100 percent new renewable energy, which shall include the required amounts of distributed renewable generation as applicable to the provider under subdivision (2) of this subsection (a).
(C) On petition of a retail electricity provider subject to the load growth requirements in subdivision (A) of this subdivision (a)(5), the Commission may for a given year allow the provider to employ existing renewable energy with environmental attributes attached or tradeable renewable energy credits from an existing renewable energy plant to satisfy part or all of the load growth requirement if the provider demonstrates that, after making every reasonable effort, it is unable during that year to meet the requirement with energy with environmental attributes attached or tradeable renewable energy credits from qualifying new renewable energy plants.
(i) To demonstrate this inability, the provider shall at a minimum timely issue one or more subsequent requests for proposals or transactions and any additional solicitations as necessary to show that it is unable to obtain sufficient ownership of environmental attributes from new renewable energy to meet its required amount under this subdivision at a cost that is less than or equal to the applicable alternative compliance rate for the load growth category.
(ii) In the event the provider is able to meet a portion, but not all, of its load growth requirement in a calendar year with attributes from new renewable energy at a cost that is less than or equal to the applicable alternative compliance rate for the load growth category, the Commission shall allow the provider to use existing renewables only for that portion of its requirement that it is unable to meet with new renewable energy.
(iii) In the event that the provider is unable to meet its load growth requirement with a combination of attributes from new renewable energy and existing renewable energy at a cost that is less than or equal to the alternative compliance rate laid out in subdivision (6) of this subsection (a), the Commission shall require the provider to meet the remainder of its requirement under this subdivision (5) by paying the alternative compliance rate for the load growth category.
(D) Notwithstanding any provision of law to the contrary, any additional energy available to a retail electricity provider that is 100 percent renewable under subdivision (b)(1) of this section under agreements approved or authorized by the Public Utility Commission in its April 15, 2011 Order issued in Docket No. 7670, Petition of twenty Vermont utilities and Vermont Public Power Supply Authority requesting authorization for the purchase of 218 MW to 225 MW of electricity shall also be eligible to meet the requirements laid out in subdivision (A) of this subdivision (a)(5), provided that such additional energy does not exceed two MW, and further provided that a retail electricity provider exercises its right to such energy on or before January 1, 2028 and for no longer than through December 31, 2038.
(6) Alternative compliance rates.
(A) The alternative compliance payment rates for the categories established by subdivisions (1)–(3) of this subsection (a) shall be:
(i) total renewable energy requirement — $0.01 per kWh; and
(ii) distributed renewable generation and energy transformation requirements — $0.06 per kWh.
(B) The Commission shall adjust these rates for inflation annually commencing January 1, 2018, using the CPI.
(C) For the new renewable energy and load growth requirements, it shall be $0.04 per kWh annually commencing on January 1, 2025, with calculations for inflation beginning on January 1, 2023.
(D) The Commission shall have the authority to adjust the alternative compliance payment rate for the new renewable energy and load growth requirements differently than the rate of inflation in order to minimize discrepancies between this rate and alternative compliance payments for similar classes in other New England states and to increase the likelihood that Vermont retail electricity providers cost-effectively achieve these requirements, if it determines doing so is consistent with State energy policy under section 202a of this title.
(b) Reduced amounts; providers; 100 percent renewable.
(1) The provisions of this subsection shall apply to a retail electricity provider that:
(A) as of January 1, 2015, was entitled, through contract, ownership of energy produced by its own generation plants, or both, to an amount of renewable energy equal to or more than 100 percent of its anticipated total retail electric sales in 2017, regardless of whether the provider owned the environmental attributes of that renewable energy; and
(B) annually each July 1 commencing in 2018, owns and has retired tradeable renewable energy credits monitored and traded on the New England Generation Information System or otherwise approved by the Commission equivalent to 100 percent of the provider’s total retail sales of electricity for the previous calendar year.
(2) A provider meeting the requirements of subdivision (1) of this subsection may:
(A) satisfy the distributed renewable generation requirement of this section by accepting net metering systems within its service territory pursuant to the provisions of this title that govern net metering; and
(B) if the Commission has appointed the provider as an energy efficiency entity under subsection 209(d) of this title, propose to the Commission to reduce the energy transformation requirement that would otherwise apply to the provider under this section.
(i) The provider may make and the Commission may review such a proposal in connection with a periodic submission made by the provider pursuant to its appointment under subsection 209(d) of this title.
(ii) The Commission may approve a proposal under this subdivision (B) if it finds that:
(I) the energy transformation requirement that would otherwise apply under this section exceeds the achievable potential for cost-effective energy transformation projects in the provider’s service territory that meet the eligibility criteria for these projects under this section; and
(II) the reduced energy transformation requirement proposed by the provider is not less than the amount sufficient to ensure the provider’s deployment or support of energy transformation projects that will acquire that achievable potential.
(iii) The measure of cost-effectiveness under this subdivision (B) shall be the alternative compliance payment rate established in this section for the energy transformation requirement.
(c) Biomass.
(1) Distributed renewable generation that employs biomass to produce electricity shall be eligible to count toward a provider’s distributed renewable generation or energy transformation requirement only if the plant satisfies the requirements of subdivision (3) of this subsection and produces both electricity and thermal energy from the same biomass fuel and the majority of the energy recovered from the plant is thermal energy.
(2) Distributed renewable generation and energy transformation projects that employ forest biomass to produce energy shall comply with renewability standards adopted by the Commissioner of Forests, Parks and Recreation under 10 V.S.A. § 2751. Energy transformation projects that use wood feedstock, except for noncommercial applications, that are eligible at the time of project commissioning to meet the renewability standards adopted by the Commissioner of Forests, Parks and Recreation do not lose eligibility due to a subsequent change in the renewability standards after the project commissioning date.
(3) No new wood biomass electricity generation facility or wood biomass combined heat and power facility coming into service after January 1, 2023 shall be eligible to satisfy any requirements of this section and section 8004 of this title unless that facility achieves 60 percent overall efficiency and at least a 50 percent net lifecycle greenhouse gas emissions reduction relative to the lifecycle emissions from the combined operation of a new combined-cycle natural gas plant using the most efficient commercially available technology. Any energy generation using wood feedstock from an existing wood biomass electric generation facility placed in service prior to January 1, 2023 remains eligible to satisfy any requirements of this section and section 8004 of this title. Changes to wood biomass electric facilities that were placed in service prior to January 1, 2023, including converting to a combined heat and power facility, adding or modifying a district energy system, replacing electric generation equipment, or repowering the facility with updated or different electric generation technologies, do not change the in service date for the facility, or affect its eligibility to satisfy the requirements of this section and section 8004 of this title, or qualify it as new renewable energy.
(d) Hydropower. A hydroelectric renewable energy plant, that is not owned by a retail electricity provider, shall be eligible to satisfy the distributed renewable generation or energy transformation requirement only if, in addition to meeting the definition of distributed renewable generation, the plant:
(1) is and continues to be certified by the Low-impact Hydropower Institute; or
(2) after January 1, 1987, received a water quality certification pursuant to 33 U.S.C. § 1341 from the Agency of Natural Resources.
(e) Intent. Nothing in this section and section 8004 of this title is intended to relieve, modify, or in any manner affect a renewable energy plant’s on-going obligation to not have an undue adverse effect on air and water purity, the natural environment and the use of natural resources, and to comply with required environmental laws and rules.
(Added 2005, No. 61, § 4; amended 2005, No. 208 (Adj. Sess.), § 15; 2007, No. 92 (Adj. Sess.), § 22; 2009, No. 45, § 4, eff. May 27, 2009; 2009, No. 159 (Adj. Sess.), §§ 3, 4, 5, 8, eff. June 4, 2010; 2011, No. 47, § 8 (eff. May 25, 2011) and § 18; 2011, No. 170 (Adj. Sess.), § 3, eff. May 18, 2012; 2013, No. 34, § 19; 2015, No. 56, § 3; 2015, No. 174 (Adj. Sess.), § 14; 2023, No. 179 (Adj. Sess.), § 4, eff. July 1, 2024.)
§ 8005a Standard Offer Program
(a) Establishment. A Standard Offer Program is established. To achieve the goals of section 8001 of this title, the Commission shall issue standard offers for renewable energy plants that meet the eligibility requirements of this section. The Commission shall implement these standard offers by rule, order, or contract and shall appoint a Standard Offer Facilitator to assist in this implementation. For the purpose of this section, the Commission and the Standard Offer Facilitator constitute instrumentalities of the State.
(b) Eligibility. To be eligible for a standard offer under this section, a plant must constitute a qualifying small power production facility under 16 U.S.C. § 796(17)(C) and 18 C.F.R. part 292, must not be a net metering system under section 219a of this title, and must be a new standard offer plant. In this section, “new standard offer plant” means a renewable energy plant that is located in Vermont, that has a plant capacity of 2.2 MW or less, and that is commissioned on or after September 30, 2009.
(c) Cumulative capacity. In accordance with this subsection, the Commission shall issue standard offers to new standard offer plants until a cumulative plant capacity amount of 127.5 MW is reached.
(1) Pace. Annually commencing April 1, 2013, the Commission shall increase the cumulative plant capacity of the Standard Offer Program (the annual increase) until the 127.5-MW cumulative plant capacity of this subsection is reached.
(A) Annual amounts. The amount of the annual increase shall be five MW for the three years commencing April 1, 2013, 7.5 MW for the three years commencing April 1, 2016, and 10 MW commencing April 1, 2019.
(B) Blocks. Each year, a portion of the annual increase shall be reserved for new standard offer plants proposed by Vermont retail electricity providers (the provider block), and the remainder shall be reserved for new standard offer plants proposed by persons who are not providers (the independent developer block).
(i) The portion of the annual increase reserved for the provider block shall be 10 percent for the three years commencing April 1, 2013, 15 percent for the three years commencing April 1, 2016, and 20 percent commencing April 1, 2019.
(ii) If the provider block for a given year is not fully subscribed, any unsubscribed capacity within that block shall be added to the annual increase for each following year until that capacity is subscribed and shall be made available to new standard offer plants proposed by persons who are not providers.
(iii) If the independent developer block for a given year is not fully subscribed, any unsubscribed capacity within that block shall be added to the annual increase for each following year until that capacity is subscribed and:
(I) shall be made available to new standard offer plants proposed by persons who are not providers; and
(II) may be made available to a provider following a written request and specific proposal submitted to and approved by the Commission.
(C) Adjustment; greenhouse gas reduction credits. The Commission shall adjust the annual increase to account for greenhouse gas reduction credits by multiplying the annual increase by one minus the ratio of the prior year’s greenhouse gas reduction credits to that year’s statewide retail electric sales.
(i) The amount of the prior year’s greenhouse gas reduction credits shall be determined in accordance with subdivision 8006a(a) of this title.
(ii) The adjustment in the annual increase shall be applied proportionally to the independent developer block and the provider block.
(iii) Greenhouse gas reduction credits used to diminish a provider’s obligation under section 8004 of this title may be used to adjust the annual increase under this subsection (c).
(D) Pilot project; preferred locations. For one year commencing on January 1, 2017, the Commission shall allocate one-sixth of the annual increase to new standard offer plants that will be wholly located in one or more preferred locations other than parking lots or parking lot canopies and, separately, one-sixth of the annual increase to new standard offer plants that will be wholly located over parking lots or on parking lot canopies.
(i) To qualify for these allocations, the plant shall not require the construction of a new substation by the interconnecting retail electricity provider or by increasing the capacity of one or more of the provider’s existing facilities. To qualify for the allocation to plants wholly located over parking lots or on parking lot canopies, the location shall remain in use as a parking lot.
(ii) These allocations shall apply proportionally to the independent developer block and provider block.
(iii) If an allocation under this pilot project is not fully subscribed, the Commission in 2017 shall allocate the unsubscribed capacity to new standard offer plants outside the pilot project.
(iv) As used in this subdivision (D), “preferred location” means a site within the State on which a renewable energy plant will be located that is one of the following:
(I) A new or existing structure whose primary use is not the generation of electricity or providing support for the placement of equipment that generates electricity.
(II) A parking lot canopy over a paved parking lot, provided that the location remains in use as a parking lot.
(III) A tract previously developed for a use other than siting a plant on which a structure or impervious surface was lawfully in existence and use prior to July 1 of the year preceding the year in which an application for a certificate of public good under section 248 of this title for the plant is filed or in which the plant seeks an award of a contract under the Standard Offer Program under this section, whichever is earlier. To qualify under this subdivision (III), the limits of disturbance of a proposed renewable energy plant must include either the existing structure or impervious surface and shall not include any headwaters, streams, shorelines, floodways, rare and irreplaceable natural areas, necessary wildlife habitat, wetlands, endangered species, productive forestlands, and primary agricultural soils, all of which are as defined in 10 V.S.A. chapter 151.
(IV) Land certified by the Secretary of Natural Resources to be a brownfield site as defined under 10 V.S.A. § 6642.
(V) A sanitary landfill as defined in 10 V.S.A. § 6602, provided that the Secretary of Natural Resources certifies that the land constitutes such a landfill and is suitable for the development of the plant.
(VI) The disturbed portion of a gravel pit, quarry, or similar site for the extraction of a mineral resource, provided that all activities pertaining to site reclamation required by applicable law or permit condition are satisfied prior to the installation of the plant.
(VII) A specific location designated in a duly adopted municipal plan under 24 V.S.A. chapter 117 for the siting of a renewable energy plant or specific type or size of renewable energy plant, provided that the plant meets any siting criteria recommended in the plan for the location.
(VIII) A site listed on the National Priorities List (NPL) established under the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. chapter 103, if the U.S. Environmental Protection Agency or the Agency of Natural Resources confirms each of the following:
(aa) The site is listed on the NPL.
(bb) Development of the plant on the site will not compromise or interfere with remedial action on the site.
(cc) The site is suitable for development of the plant.
(IX) A new hydroelectric generation facility at a dam in existence as of January 1, 2016 or a hydroelectric generation facility that was in existence but not in service for a period of at least 10 years prior to January 1, 2016 and that will be redeveloped for electric generation, if the facility has received approval or a grant of exemption from the U.S. Federal Energy Regulatory Commission.
(2) Technology allocations. The Commission shall allocate the 127.5-MW cumulative plant capacity of this subsection among different categories of renewable energy technologies. These categories shall include at least each of the following: methane derived from a landfill; solar power; wind power with a plant capacity of 100 kW or less; wind power with a plant capacity greater than 100 kW; hydroelectric power; and biomass power using a fuel other than methane derived from an agricultural operation or landfill.
(d) Plants outside cumulative capacity. The following categories of plants shall not count toward the cumulative capacity amount of subsection (c) of this section, and the Commission shall make standard offers available to them provided that they are otherwise eligible for such offers under this section:
(1) Plants using methane derived from an agricultural operation.
(2) New standard offer plants that the Commission determines will have sufficient benefits to the operation and management of the electric grid or a provider’s portion thereof because of their design, characteristics, location, or any other discernible benefit. To enhance the ability of new standard offer plants to mitigate transmission and distribution constraints, the Commission shall require Vermont retail electricity providers and companies that own or operate electric transmission facilities within the State to make sufficient information concerning these constraints available to developers who propose new standard offer plants.
(A) By March 1, 2013, the Commission shall develop a screening framework or guidelines that will provide developers with adequate information regarding constrained areas in which generation having particular characteristics is reasonably likely to provide sufficient benefit to allow the generation to qualify for eligibility under this subdivision (2).
(B) Once the Commission develops the screening framework or guidelines under subdivision (2)(A) of this subsection (d), the Commission shall require Vermont transmission and retail electricity providers to make the necessary information publicly available in a timely manner, with updates at least annually.
(C) Nothing in this subdivision shall require the disclosure of information in contravention of federal law.
(e) Term. The term of a standard offer required by this section shall be 10 to 20 years, except that the term of a standard offer for a plant using solar power shall be 10 to 25 years.
(f) Price. The categories of renewable energy for which the Commission shall set standard offer prices shall include at least each of the categories established pursuant to subdivision (c)(2) of this section. The Commission by order shall determine and set the price paid to a plant owner for each kWh generated under a standard offer required by this section, with a goal of ensuring timely development at the lowest feasible cost. The Commission shall not be required to make this determination as a contested case under 3 V.S.A. chapter 25.
(1) Market-based mechanisms. For new standard offer projects, the Commission shall use a market-based mechanism, such as a reverse auction or other procurement tool, to obtain up to the authorized amount of a category of renewable energy, if it first finds that use of the mechanism is consistent with:
(A) applicable federal law; and
(B) the goal of timely development at the lowest feasible cost.
(2) Avoided cost.
(A) The price paid for each category of renewable energy shall be the avoided cost of the Vermont composite electric utility system if the Commission finds either of the following:
(i) Use of the pricing mechanism described in subdivision (1) (market-based mechanisms) of this subsection (f) is inconsistent with applicable federal law.
(ii) Use of the pricing mechanism described in subdivision (1) (market-based mechanisms) of this subsection (f) is reasonably likely to result in prices higher than the prices that would apply under this subdivision (2).
(B) For the purpose of this subsection (f), the term “avoided cost” means the incremental cost to retail electricity providers of electric energy or capacity, or both, that, but for the purchase through the standard offer, such providers would obtain from distributed renewable generation that uses the same generation technology as the category of renewable energy for which the Commission is setting the price. For the purpose of this subsection (f), the term “avoided cost” also includes the Commission’s consideration of each of the following:
(i) The relevant cost data of the Vermont composite electric utility system.
(ii) The terms of the contract, including the duration of the obligation.
(iii) The availability, during the system’s daily and seasonal peak periods, of capacity or energy purchased through the standard offer, and the estimated savings from mitigating peak load.
(iv) The relationship of the availability of energy or capacity purchased through the standard offer to the ability of the Vermont composite electric utility system or a portion thereof to avoid costs.
(v) The costs or savings resulting from variations in line losses and other impacts to the transmission or distribution system from those that would have existed in the absence of purchases through the standard offer.
(vi) The supply and cost characteristics of plants eligible to receive the standard offer.
(3) Price determinations. The Commission shall take all actions necessary to determine the pricing mechanism and implement the pricing requirements of this subsection (f) no later than March 1, 2013 for effect on April 1, 2013. Annually thereafter, the Commission shall review the determinations previously made under this subsection to decide whether they should be modified in any respect in order to achieve the goal and requirements of this subsection. Any such modification shall be effective on a prospective basis commencing one month after it has been made. Once a pricing determination made or modified under this subsection goes into effect, subsequently executed standard offer contracts shall comply with the most recently effective determination.
(4) Price stability. Once a plant owner has executed a contract for a standard offer under this section, the plant owner shall continue to receive the price agreed on in that contract regardless of whether the Commission subsequently changes the price applicable to the plant’s category of renewable energy.
(5) Price; preferred location pilots. For the period during which the Commission allocates capacity to new standard offer plants that will be wholly located in one or more preferred locations as set forth in subdivision (c)(1)(D) of this section, the following shall apply to the price paid to such a plant:
(A) If the Commission uses a market-based mechanism under subdivision (1) of this subsection (f) to determine this price for one or both of the two allocations of capacity, the Commission shall compare only the proposals of plants that qualify for the allocation.
(B) If the Commission uses avoided costs under subdivision (2) of this subsection (f) to determine this price for one or both of the two allocations of capacity, the Commission shall apply the definition of “avoided costs” as set forth in subdivision (2)(B) of this subsection with the modification that the avoided energy or capacity shall be from distributed renewable generation that is sited on a location that qualifies for the allocation.
(C) With respect to the allocation to the new standard offer plants that will be wholly located over parking lots or on parking lot canopies, if the Commission receives only one application or multiple applications for plants owned or controlled by the same person as defined in 10 V.S.A. § 6001, the Commission shall investigate each application and shall have discretion to reduce the price to be consistent with the standard offer price for plants outside the pilot project using the same generation technology.
(g) Qualifying existing agricultural plants. Notwithstanding any other provision of this section, on and after June 8, 2010, a standard offer shall be available for a qualifying existing plant as defined in Sec. 3 of No. 159 of the Acts of the 2009 Adj. Sess. (2010) (Act 159). The provisions of subdivision 8005(b)(2) of this title, as they existed on June 4, 2010, the effective date of Act 159, shall govern a standard offer under this subsection. Standard offers for these plants shall not be subject to subsection (c) of this section (cumulative capacity; new standard offer plants).
(h) Application process. The Commission shall administer the process of applying for and obtaining a standard offer contract in a manner that ensures that the resources and capacity of the Standard Offer Program are used for plants that are reasonably likely to achieve commissioning.
(i) Interconnection application. No contract under this section for a new standard offer plant shall be executed unless and until the plant owner submits a complete application to interconnect the plant to the subtransmission or distribution system of the applicable retail electricity provider.
(j) Termination; reallocation. In the event a proposed plant accepting a standard offer fails to meet the requirements of the Program in a timely manner, the plant’s standard offer contract shall terminate, and any capacity reserved for the plant within the Program shall be reallocated to one or more eligible plants.
(1) For the purpose of this subsection, the requirements of the Program shall include commissioning of all new standard offer plants, except plants using methane derived from an agricultural operation, within the following periods after execution of the plant’s standard offer contract:
(A) 24 months if the plant is solar power or is wind power with a plant capacity of 100 kW or less; and
(B) 36 months if the plant uses a fuel source not described in subdivision 1(A) of this subsection (j) or is wind power of greater than 100 kW capacity.
(2) At the request of a plant owner or for other good cause, the Commission may extend a period described in subdivision (1) of this subsection (j) if it finds that the plant owner has proceeded diligently and in good faith and that commissioning of the plant has been delayed because of litigation or appeal or because of the need to obtain an approval the timing of which is outside the Commission’s control, or for other good cause as determined by the Commission.
(k) Executed standard offer contracts; transferability; allocation of benefits and costs. With respect to executed contracts for standard offers under this section:
(1) A contract shall be transferable. The contract transferee shall notify the Standard Offer Facilitator of the contract transfer within 30 days following transfer.
(2) The Standard Offer Facilitator shall distribute the electricity purchased to the Vermont retail electricity providers at the price paid to the plant owners, allocated to the providers based on their pro rata share of total Vermont retail kWh sales for the previous calendar year, and the Vermont retail electricity providers shall accept and pay the Standard Offer Facilitator for the electricity. However, during any given calendar year:
(A) Calculation of pro rata shares under this subdivision (2) shall include an adjustment in the allocation to a provider if one or more of the provider’s customers created greenhouse gas reduction credits under section 8006a of this title that are used to reduce the size of the annual increase under subdivision (c)(1)(C)(adjustment; greenhouse gas reduction credits) of this section. The adjustment shall ensure that any and all benefits or costs from the use of such credits flow to the provider whose customers created the credits. The savings that a provider realizes as a result of this application of greenhouse gas reduction credits shall be passed on proportionally to the customers that created the credits.
(B) A retail electricity provider that was relieved from the requirements of this subdivision by the Commission on or before January 25, 2018, shall be exempt from the requirements of this subdivision in any year that the Standard Offer Facilitator allocates electricity pursuant to this subdivision if the retail electricity provider meets the following criteria:
(i) during the immediately preceding 12-month period ending October 31, the amount of renewable energy supplied to the provider by generation owned by or under contract to the provider, regardless of whether the provider owned the energy’s environmental attributes, was not less than the amount of energy sold by the provider to its retail customers; and
(ii) the retail electricity provider owns and retires an amount of 30 V.S.A. § 8005(a)(1) qualified energy environmental attributes that is not less than the provider’s retail sales.
(3) The Standard Offer Facilitator shall transfer the environmental attributes, including any tradeable renewable energy credits, of electricity purchased under standard offer contracts to the Vermont retail electricity providers in accordance with their pro rata share of the costs for such electricity as determined under subdivision (2) of this subsection (k), except that in the case of a plant using methane from agricultural operations, the plant owner shall retain such attributes and credits to be sold separately at the owner’s discretion. It shall be a condition of a standard offer issued under this section that tradeable renewable energy credits associated with a plant that accepts the standard offer are owned by the retail electricity providers purchasing power generated by the plant, except in the case of a plant using methane from agricultural operations.
(4) The Standard Offer Facilitator shall transfer all capacity rights attributable to the plant capacity associated with the electricity purchased under standard offer contracts to the Vermont retail electricity providers in accordance with their pro rata share of the costs for such electricity as determined under subdivision (2) of this subsection (k).
(5) All reasonable costs of a Vermont retail electricity provider incurred under this subsection shall be included in the provider’s revenue requirement for purposes of ratemaking under sections 218, 218d, 225, and 227 of this title. In including such costs, the Commission shall appropriately account for any credits received under subdivisions (3) and (4) of this subsection (k). Costs included in a retail electricity provider’s revenue requirement under this subdivision (5) shall be allocated to the provider’s ratepayers as directed by the Commission.
(l) Standard Offer Facilitator; expenses; payment. With respect to standard offers under this section, the Commission shall:
(1) determine a Standard Offer Facilitator’s reasonable expenses arising from its role and the allocation of the expenses among plant owners and Vermont retail electricity providers;
(2) determine the manner and timing of payments by a Standard Offer Facilitator to plant owners for energy purchased under an executed contract for a standard offer;
(3) determine the manner and timing of payments to the Standard Offer Facilitator by the Vermont retail electricity providers for energy distributed to them under executed contracts for standard offers;
(4) establish reporting requirements of a Standard Offer Facilitator, a plant owner, and a Vermont retail electricity provider.
(m) Metering. With respect to standard offers under this section, the Commission shall make rule revisions concerning metering and the allocation of metering costs as needed to implement the standard offer requirements of this section.
(n) Wood biomass. In addition to the other requirements of this section, wood biomass resources may receive a standard offer under this section only if they have a design system efficiency (the sum of full load design thermal output and electric output divided by the heat input) of at least 50 percent.
(o) Voluntary contracts. The existence of a standard offer under this section shall not preclude a voluntary contract between a plant owner and a Vermont retail electricity provider on terms that may be different from those under the standard offer. A plant owner who declines a voluntary contract may still accept a standard offer under this section.
(p) Existing hydroelectric plants. Notwithstanding any contrary requirement of this section, no later than January 15, 2013, the Commission shall make a standard offer contract available to existing hydroelectric plants in accordance with this subsection.
(1) In this subsection:
(A) “Existing hydroelectric plant” means a hydroelectric plant of five MW plant capacity or less that is located in the State, that was in service as of January 1, 2009, that is a qualifying small power production facility under 16 U.S.C. § 796(17)(C) and 18 C.F.R. part 292, and that does not have an agreement with the Commission’s purchasing agent for the purchase of its power pursuant to subdivision 209(a)(8) of this title and Commission rules adopted under subdivision (8). The term includes hydroelectric plants that have never had such an agreement and hydroelectric plants for which such an agreement has expired.
(B) “LIHI” means the Low-Impact Hydropower Institute.
(2) The term of a standard offer contract under this subsection shall be 10 or 20 years, at the election of the plant owner.
(3) Unless inconsistent with applicable federal law, the price of a standard offer contract shall be the sum of the following elements:
(A) a two-year rolling average of the ISO New England Inc. (ISO-NE) Vermont zone hourly locational marginal price for energy;
(B) a two-year rolling average of the value of the plant’s capacity in the ISO-NE forward capacity market;
(C) the value of avoided line losses due to the plant as a fixed increment of the energy and capacity values;
(D) a two-year rolling average of the market value of environmental attributes, including renewable energy credits; and
(E) the value of a 10- or 20-year contract.
(4) The Commission shall determine the price to be paid under this subsection (p) not later than January 15, 2013.
(A)(i) Annually by January 15 commencing in 2014, the Commission shall recalculate and adjust the energy, capacity, and environmental attribute elements of the price under subdivision (3) of this subsection (p). The recalculated and adjusted energy, capacity, and environmental attribute elements shall apply to all contracts executed under this subdivision, whether or not the contracts were executed prior to the adjustments.
(ii) the Commission may periodically adjust the value of environmental attributes that are applicable to an executed contract based upon whether the plant becomes certified by LIHI or loses such certification.
(B) With respect to the price elements specified in subdivisions(3)(C)(avoided line losses) and (E)(value of long-term contract) of this subsection (p):
(i) These elements shall remain fixed at their values at the time a contract is signed for the duration of the contract.
(ii) The Commission annually may adjust these elements for inclusion in contracts that are executed after the date any such adjustments are made.
(5) Once a plant owner has executed a contract for a standard offer under this subsection (p), the plant owner shall continue to receive the pricing terms agreed on in that contract regardless of whether the Commission subsequently changes any pricing terms under this subsection.
(6) Capacity of existing hydroelectric plants executing a standard offer contract under this subsection shall not count toward the cumulative capacity amount of subsection (c) of this section.
(q) Allocation of regulatory costs. The Commission and Department may authorize or retain legal counsel, official stenographers, expert witnesses, advisors, temporary employees, and research services in conjunction with implementing their responsibilities under this section. In lieu of allocating such costs pursuant to subsection 21(a) of this title, the Commission or Department may allocate the expense in the same manner as the Standard Offer Facilitator’s costs under subdivision (l)(1) of this section.
(r) State; nonliability. The State and its instrumentalities shall not be liable to a plant owner or retail electricity provider with respect to any matter related to the Standard Offer Program, including costs associated with a standard offer contract or any damages arising from the breach of such a contract, the flow of power between a plant and the electric grid, or the interconnection of a plant to that grid.
(Added 2011, No. 170 (Adj. Sess.), § 4, eff. May 18, 2012; amended 2013, No. 34, § 20; 2015, No. 56, § 4; 2015, No. 97 (Adj. Sess.), § 62; 2015, No. 174 (Adj. Sess.), § 12a; 2019, No. 31, §§ 15, 27; 2021, No. 42, § 8; 2023, No. 85 (Adj. Sess.), § 455, eff. July 1, 2024.)
§ 8006 Tradeable credits; environmental attributes; recognition, monitoring, and disclosure
(a) The Commission shall establish or adopt a system of tradeable renewable energy credits for renewable resources that may be earned by electric generation qualifying for the RES. The system shall recognize tradeable renewable energy credits monitored and traded on the New England Generation Information System (GIS); shall provide a process for the recognition, approval, and monitoring of environmental attributes attached to renewable energy that are eligible to satisfy the requirements of sections 8004 and 8005 of this title but are not monitored and traded on the GIS; and shall otherwise be consistent with regional practices.
(b) The Commission shall ensure that all electricity provider and provider-affiliate disclosures and representations made with regard to a provider’s portfolio are accurate and reasonably supported by objective data. Further, the Commission shall ensure that providers disclose the types of generation used and shall clearly distinguish between energy or tradeable energy credits provided from renewable and nonrenewable energy sources and existing and new renewable energy.
(Added 2005, No. 61, § 4; amended 2011, No. 47, § 18; 2015, No. 56, § 7.)
§ 8006a Greenhouse gas reduction credits
(a) Standard offer adjustment. In accordance with this section, greenhouse gas reduction credits generated by an eligible ratepayer shall result in an adjustment of the standard offer under subdivision 8005a(c)(1) of this title (cumulative capacity; pace) or may be utilized by a retail electricity provider that serves a single customer that takes service at 115 kilovolts to meet the energy transformation requirements under subdivision 8005(a)(3)(D) of this title. For the purpose of adjusting the standard offer under subdivision 8005a(c)(1) of this title or energy transformation requirements under subdivision 8005(a)(3)(D) of this title, the amount of a year’s greenhouse gas reduction credits shall be the lesser of the following:
(1) The amount of greenhouse gas reduction credits created by an eligible ratepayer served by an eligible provider.
(2) The eligible provider’s annual load during that year to those eligible ratepayers creating greenhouse gas reduction credits.
(b) Definitions. As used in this section:
(1) “Eligible ratepayer” means a customer of a Vermont retail electricity provider who takes service at 115 kilovolts and has demonstrated to the Commission that it has a comprehensive energy and environmental management program. Provision of the customer’s certification issued under standard 14001 (environmental management systems) of the International Organization for Standardization (ISO) shall constitute such a demonstration.
(2) “Eligible provider” means a Vermont retail electricity provider who serves a single customer that takes service at 115 kilovolts.
(3) “Eligible reduction” means a reduction in non-energy-related greenhouse gas emissions from manufacturing processes at an in-state facility of an eligible ratepayer, provided that each of the following applies:
(A) The reduction results from a specific project undertaken by the eligible ratepayer at the in-state facility after January 1, 2023.
(B) The specific project reduces or avoids greenhouse gas emissions above and beyond any reductions of such emissions required by federal and State statutes and rules.
(C) The reductions are quantifiable and verified by an independent third party as approved by the Agency of Natural Resources and the Commission. Such independent third parties shall be certified by a body accredited by the American National Standards Institute (ANSI) as having a certification program that meets the ISO standards applicable to verification and validation of greenhouse gas assertions. The independent third party shall use methodologies specified under 40 C.F.R. part 98 and U.S. Environmental Protection Agency greenhouse gas emissions factors and global warming potential figures to quantify and verify reductions in all cases where those factors and figures are available.
(4) “Greenhouse gas” has the same meaning as in 10 V.S.A. § 552.
(5) “Greenhouse gas reduction credit” means a credit for eligible reductions, calculated in accordance with subsection (c) of this section and expressed as a kWh credit eligible under subdivision 8005a(c)(1) of this title, or as a credit eligible under subdivision 8005(a)(3)(D) of this title.
(c) Calculation. Greenhouse gas reduction credits shall be calculated as follows:
(1) Eligible reductions shall be quantified in metric tons of CO2 equivalent, in accordance with the methodologies specified under 40 C.F.R. part 98, and using U.S. Environmental Protection Agency greenhouse gas emissions factors and global warming potential figures, and shall be counted annually for the life of the specific project that resulted in the reduction. A project that converts a gas with a high global warming potential into a gas with relatively lower global warming potential shall be eligible if the conversion produces a CO2 equivalent reduction on an annual basis.
(2) Metric tons of CO2 equivalent quantified under subdivision (1) of this subsection shall be converted into units of energy through calculation of the equivalent number of kWh of generation by renewable energy plants, other than biomass, that would be required to achieve the same level of greenhouse gas emission reduction through the displacement of market power purchases. For the purpose of this subdivision, the value of the avoided greenhouse gas emissions shall be based on the aggregate greenhouse gas emission characteristics of system power in the regional transmission area overseen by the Independent System Operator of New England (ISO-NE).
(d) Reporting. An eligible provider shall report to the Commission annually on each specific project undertaken by an eligible ratepayer to create eligible reductions. The Commission shall specify the required contents of such reports, which shall be publicly available.
(Added 2011, No. 170 (Adj. Sess.), § 8, eff. May 18, 2012; amended 2023, No. 179 (Adj. Sess.), § 5, eff. July 1, 2024.)
§ 8007 Small renewable energy plants; simplified procedures
(a) The same application form, rules, and procedures that the Commission applies to net metering systems of 150 kilowatts (kW) or less under sections 248 and 8010 of this title shall apply to the review under section 248 of this title of any renewable energy plant with a plant capacity of 150 kW or less and to the interconnection of such a plant with the system of a Vermont retail electricity provider. This requirement includes any waivers of criteria under section 248 of this title made pursuant to section 8010 of this title.
(b) With respect to renewable energy plants that have a plant capacity that is greater than 150 kW and is 2.2 MW or less, the Commission shall establish by rule or order standards and procedures governing application for, and issuance or revocation of, a certificate of public good for such a plant under the provisions of section 248 of this title, and the interconnection of such a plant with the system of a Vermont retail electricity provider.
(1) In developing such rules or orders, the Commission:
(A) Shall waive the requirements of section 248 of this title that are not applicable to such a plant, including, for a plant that is not owned by a Vermont retail electricity provider, criteria that are generally applicable to such a provider.
(B) May modify notice and hearing requirements of this title as it deems appropriate.
(C) Shall simplify the petition and review process as appropriate.
(2) Notwithstanding 1 V.S.A. §§ 213 and 214, a petitioner whose petition under section 248 of this title is pending as of the effective date of a Commission rule or order under this subsection (b) may elect to apply the standards and procedures of such a rule or order to the pending petition if the petition pertains to a renewable energy plant with a plant capacity that is greater than 150 kW and is 2.2 MW or less.
(Added 2009, No. 159 (Adj. Sess.), § 6, eff. June 4, 2010; 2013, No. 99 (Adj. Sess.), § 6, eff. Jan. 1, 2017.)
§ 8008 Agreements; attribute revenues; disposition by Commission
(a) As used in this section, “the revenues” means revenues that are from the sale, through tradeable renewable energy certificates or other means, of environmental attributes associated with the generation of renewable energy from a system of generation resources with a total plant capacity greater than 200 MW and that are received by a Vermont retail electricity provider on or after May 1, 2012, pursuant to an agreement, contract, memorandum of understanding, or other transaction in which a person or entity agrees to transfer such revenues or rights associated with such attributes to the provider.
(b) After notice and opportunity for hearing, the Commission shall determine the disposition, allocation, and use of the revenues in a manner that promotes State energy policy as stated in section 202a of this title and the goals of this chapter and supports achievement of the greenhouse gas reduction and building efficiency goals contained in 10 V.S.A. §§ 578(a) and 581.
(1) The Commission shall provide notice of the proceeding to each Vermont retail electricity provider, the Department, the Clean Energy Development Board under 10 V.S.A. § 6523, each fuel efficiency service provider appointed under subsection 203a(b) of this title, each energy efficiency entity appointed under subdivision 209(d)(2) of this title, the Institute for Energy and the Environment at the Vermont Law School, the Transportation Research Center at the University of Vermont, and any other persons or entities that have requested notice. The Commission may provide notice to additional persons or entities.
(2) In determining the disposition, allocation, and use of the revenues, the Commission shall consider each of the following potential uses of the revenues:
(A) Development of in-state renewable energy resources.
(B) Deposit into the Clean Energy Development Fund for use pursuant to section 8015 of this title.
(C) Deposit into the Fuel Efficiency Fund for use pursuant to section 203a of this title.
(D) Deposit into the Electric Efficiency Fund for use pursuant to section 209(d) of this title.
(E) Application, for the benefit of ratepayers, to the revenue requirement of one or more Vermont retail electricity providers.
(F) Development of transportation alternatives to vehicles that use gasoline such as electric or natural gas vehicles and supporting infrastructure and the coordination of such development with so-called “smart grid” electric transmission and distribution networks.
(G) Any other uses that support the statutory policy and goals referenced in this subsection (b).
(c) A Vermont retail electricity provider shall notify the Commission within 30 days of the first receipt of the revenues pursuant to an agreement, contract, memorandum of understanding, or other transaction under which it will receive the revenues. The Commission shall open a proceeding under this section promptly on receipt of such notice and shall issue a final order in the proceeding within 12 months following such receipt.
(d) Any of the revenues that are received prior to completion of the 12-month period described in subsection (c) of this section shall be credited, for the benefit of ratepayers, against the revenue requirement of the Vermont retail electricity provider that receives the revenues.
(Added 2009, No. 159 (Adj. Sess.), § 13b, eff. June 4, 2010; amended 2011, No. 47, §§ 18, 20m(a); 2017, No. 74, § 127; 2023, No. 85 (Adj. Sess.), § 456, eff. July 1, 2024.)
§ 8009 Baseload renewable power portfolio requirement
(a) As used in this section:
(1) “Baseload renewable power” means a plant that generates electricity from renewable energy; that, during normal operation, is capable of taking all or part of the minimum load on an electric transmission or distribution system; and that produces electricity essentially continuously at a constant rate.
(2) “Baseload renewable power portfolio requirement” means the actual output of baseload renewable power from an in-state woody biomass plant that was commissioned prior to September 30, 2009, has a nominal capacity of 20.5 MW, and was in service as of January 1, 2011.
(3) “Biomass” means organic nonfossil material of biological origin constituting a source of renewable energy within the meaning of subdivision 8002(21) of this title.
(4) [Repealed.]
(b) Notwithstanding subsection 8004(a) and subdivision 8005(c)(1) of this title, commencing November 1, 2012, each Vermont retail electricity provider shall purchase the provider’s pro rata share of the baseload renewable power portfolio requirement, which shall be based on the total Vermont retail kWh sales of all such providers for the previous calendar year. The obligation created by this subsection shall cease on November 1, 2032 unless terminated earlier pursuant to subsection (k) of this section.
(c) A plant used to satisfy the baseload renewable power portfolio requirement shall be a qualifying small power production facility under 16 U.S.C. § 796(17)(C) and 18 C.F.R. part 292.
(d) On or before November 1, 2028, the Commission shall determine, for the period beginning on November 1, 2028 and ending on November 1, 2032, the price to be paid to a plant used to satisfy the baseload renewable power portfolio requirement. The Commission shall not be required to make this determination as a contested case under 3 V.S.A. chapter 25. The price shall be the avoided cost of the Vermont composite electric utility system. As used in this subsection, the term “avoided cost” means the incremental cost to retail electricity providers of electric energy or capacity, or both, that, but for the purchase from the plant proposed to satisfy the baseload renewable power portfolio requirement, such providers would obtain from a source using the same generation technology as the proposed plant. For the purposes of this subsection, the term “avoided cost” also includes the Commission’s consideration of each of the following:
(1) The relevant cost data of the Vermont composite electric utility system.
(2) The terms of the potential contract, including the duration of the obligation.
(3) The availability, during the system’s daily and seasonal peak periods, of capacity or energy from a proposed plant.
(4) The relationship of the availability of energy, capacity, renewable energy credits and attributes, and other ISO New England revenue streams from the proposed plant to the ability of the Vermont composite electric utility system or a portion thereof to avoid costs. Vermont retail electricity providers shall receive all output of the baseload renewable plant unless the contract price is reduced to reflect the value of all products, attributes, and services that are retained by the seller.
(5) The costs or savings resulting from variations in line losses from those that would have existed in the absence of purchases from the proposed plant.
(6) The supply and cost characteristics of the proposed plant, including the costs of operation and maintenance of an existing plant during the term of a proposed contract.
(7) Mechanisms for encouraging dispatch of the plant relative to the ISO New England wholesale energy price and value of regional renewable energy credits while also respecting the physical operating parameters, the fixed costs of the proposed plant, and the impact on the forest economy.
(8) The appropriate assignment of risks associated with the ISO New England Forward Capacity Market Pay for Performance program.
(e) In determining the price under subsection (d) of this section, the Commission:
(1) may require a plant proposed to be used to satisfy the baseload renewable power portfolio requirement to produce such information as the Commission reasonably deems necessary;
(2) shall not consider the following in the determination of avoided cost:
(A) capital investments made to meet the efficiency goal established in subsection (k) of this section;
(B) revenue generated by the capital investment made to meet the efficiency goal established in subsection (k) of this section; and
(C) operational costs and operational impacts associated with the project or projects implemented to meet the efficiency goals established in subsection (k) of this section; and
(3) notwithstanding subdivision (2)(C) of this subsection, shall consider sharing with Vermont retail electricity providers the benefits associated with waste heat that may be used to benefit a facility that does not provide baseload renewable energy.
(f) With respect to a plant used to satisfy the baseload renewable power portfolio requirement:
(1) The Standard Offer Facilitator shall purchase the baseload renewable power and shall allocate the electricity purchased and any associated costs to the Vermont retail electricity providers based on their pro rata share of total Vermont retail kWh sales for the previous calendar year, and the Vermont retail electricity providers shall accept and pay those costs.
(2) Any tradeable renewable energy credits and attributes that are attributable to the electricity purchased shall be transferred to the Vermont retail electricity providers in accordance with their pro rata share of the costs for such electricity as determined under subdivision (1) of this subsection unless the Commission approves the plant owner retaining renewable energy credits and attributes or other ISO New England revenue streams. If the Commission approves the plant owner retaining renewable energy credits and attributes, or other ISO New England revenue streams, the price paid by the Vermont retail electricity providers pursuant to this section may be reduced by the Commission to reflect the value of those credits, attributes, products, or services.
(3) All capacity rights attributable to the plant capacity associated with the electricity purchased shall be transferred to the Vermont retail electricity providers in accordance with their pro rata share of the costs for such electricity as determined under subdivision (1) of this subsection.
(4) All reasonable costs of a Vermont retail electricity provider incurred under this section shall be included in the provider’s revenue requirement for purposes of ratemaking under sections 218, 218d, 225, and 227 of this title. In including such costs, the Commission shall appropriately account for any credits received under subdivision (2) of this subsection. Costs included in a retail electricity provider’s revenue requirement under this subdivision shall be allocated to the provider’s ratepayers as directed by the Commission.
(g) A retail electricity provider shall be exempt from the requirements of this section if, and for so long as, one-third of the electricity supplied by the provider to its customers is from a plant that produces electricity from woody biomass.
(h) The Commission may issue rules or orders to carry out this section.
(i) The State and its instrumentalities shall not be liable to a plant owner or retail electricity provider with respect to any matter related to the baseload renewable power portfolio requirement or a plant used to satisfy such requirement, including costs associated with a contract related to such a plant or any damages arising from the breach of such a contract, the flow of power between a plant and the electric grid, or the interconnection of a plant to that grid. For the purpose of this section, the Commission and the Standard Offer Facilitator constitute instrumentalities of the State.
(j) The Commission shall authorize any Agency participating in a proceeding pursuant to this section or an order issued under this section to assess its costs against a proposed plant consistent with section 21 of this title.
(k) Collocation and efficiency requirements.
(1) The owner of the plant used to satisfy the baseload renewable power portfolio requirement shall cause the plant’s overall efficiency to be increased by at least 50 percent relative to the 12-month period preceding July 1, 2022. In achieving this efficiency, the owner shall comply with the requirements of this subsection.
(2) On or before October 1, 2025, the owner of the plant shall submit to the Commission and the Department:
(A) A signed contract providing for the construction of a facility at the plant that utilizes the excess thermal heat generated at the plant for a beneficial purpose. As used in this subdivision (A), beneficial purpose may include the displacement of fossil fuel use for the sustainable production of a product or service or more efficient or less costly generation of electricity.
(B) A certification by a qualified professional engineer that the construction of the facility shall meet the requirement of subdivision (1) of this subsection (k).
(3) On or before October 1, 2026, the owner of the plant shall submit to the Commission and the Department a certification that the main components of the facility used to meet the requirement of subdivision (1) of this subsection have been manufactured and that the construction plans for the facility have been completed.
(4) If the contract and certification required under subdivision (2) of this subsection are not submitted to the Commission and Department on or before October 1, 2025 or if the certification required under subdivision (3) is not submitted to the Commission and Department on or before October 1, 2026, then the obligation under this section for each Vermont retail electricity provider to purchase a pro rata share of the baseload renewable power portfolio requirement shall cease on November 1, 2026, and the Commission is not required to conduct the rate determination provided for in subsection (d) of this section.
(5) On or before September 1, 2027, the Department shall investigate and submit a recommendation to the Commission on whether the plant has achieved the requirement of subdivision (1) of this subsection. If the Department recommends that the plant has not achieved the requirement of subdivision (1) of this subsection, the obligation under this section shall cease on November 1, 2027, and the Commission is not required to conduct the rate determination provided for in subsection (d) of this section.
(6) After November 1, 2028, the owner of the plant shall report annually to the Department and the Department shall verify the overall efficiency of the plant for the prior 12-month period. If the overall efficiency of the plant falls below the requirement of subdivision (1) of this subsection, the report shall include a plan to return the plant to the required efficiency within one year.
(7) If, after implementing the plan in subdivision (6) of this subsection, the owner of the plant does not achieve the efficiency required in subdivision (1) of this subsection, the Department shall request that the Commission commence a proceeding to terminate the obligation under this section.
(8) The Department may retain research, scientific, or engineering services to assist it in making the recommendation required under subdivision (5) of this subsection and in reviewing the information required under subdivision (6) of this subsection and may allocate the expense incurred or authorized by it to the plant’s owner.
(l) Annual report. Beginning on August 1, 2023, the owner of the plant used to satisfy the baseload renewable power portfolio shall report annually to the House Committee on Environment and Energy and Senate Committee on Finance, the Commissioner of Forests, Parks and Recreation, and the Secretary of Commerce and Community Development on the wood fuel purchases for the plant. The report shall include the average monthly price paid for the wood fuel and the source of the wood fuel, including location, number, types, and sources of non-forest-derived wood.
(Added 2011, No. 47, § 11; amended 2011, No. 170 (Adj. Sess.), § 9; 2015, No. 56, § 26; 2021, No. 39, § 1, eff. May 20, 2021; 2021, No. 155 (Adj. Sess.), § 1, eff. May 31, 2022; 2023, No. 142 (Adj. Sess.), § 18, eff. May 30, 2024; 2025, No. 59, § 16, eff. June 11, 2025.)
§ 8010 Self-generation and net metering
(a) A customer may install and operate a net metering system in accordance with this section and the rules adopted under this section.
(b) A net metering customer shall pay the same rates, fees, or other payments and be subject to the same conditions and requirements as all other purchasers from the interconnecting retail electricity provider in the same rate-class, except as this section or the rules adopted under this section may provide, and except for appropriate and necessary conditions approved by the Commission for the safety and reliability of the electric distribution system.
(c) In accordance with this section, the Commission shall adopt and implement rules that govern the installation and operation of net metering systems.
(1) The rules shall establish and maintain a net metering program that:
(A) advances the goals and total renewables targets of this chapter and the goals of 10 V.S.A. § 578 (greenhouse gas reduction) and is consistent with the criteria of subsection 248(b) of this title;
(B) achieves a level of deployment that is consistent with the recommendations of the Electrical Energy and Comprehensive Energy Plans under sections 202 and 202b of this title, unless the Commission determines that this level is inconsistent with the goals and targets identified in subdivision (1)(A) of this subsection (c). Under this subdivision (B), the Commission shall consider the Plans most recently issued at the time the Commission adopts or amends the rules;
(C) to the extent feasible, ensures that net metering does not shift costs included in each retail electricity provider’s revenue requirement between net metering customers and other customers;
(D) accounts for all costs and benefits of net metering, including the potential for net metering to contribute toward relieving supply constraints in the transmission and distribution systems and to reduce consumption of fossil fuels for heating and transportation;
(E) [Repealed.]
(F) balances, over time, the pace of deployment and cost of the program with the program’s impact on rates;
(G) accounts for changes over time in the cost of technology;
(H) allows a customer to retain ownership of the environmental attributes of energy generated by the customer’s net metering system and of any associated tradeable renewable energy credits or to transfer those attributes and credits to the interconnecting retail provider, and:
(i) if the customer retains the attributes, reduces the value of the credit provided under this section for electricity generated by the customer’s net metering system by an appropriate amount;
(ii) if the customer transfers the attributes to the interconnecting provider, requires the provider to retain them for application toward compliance with sections 8004 and 8005 of this title unless the provider has fewer than 75,000 customers, in which case the attributes do not need to be applied toward compliance obligations under sections 8004 and 8005 of this title; and
(iii) if a retail electricity provider that is 100 percent renewable under subdivision 8005(b)(1) of this title does not retire the transferred attributes under sections 8004 and 8005 of this title, requires that the provider apply an equivalent amount of attributes from distributed renewable generation that qualifies under subdivision 8005(a)(2) of this title toward its compliance obligations under sections 8004 and 8005 of this title; and
(I) allows a customer to change the customer’s decision to retain or transfer the attributes once in the 120-day period after the net metering system is commissioned.
(2) The rules shall include provisions that govern:
(A) whether there is a limit on the cumulative plant capacity of net metering systems to be installed over time and what that limit is, if any;
(B) the transfer of certificates of public good issued for net metering systems and the abandonment of net metering systems;
(C) the respective duties of retail electricity providers and net metering customers;
(D) the electrical safety, power quality, interconnection, and metering of net metering systems;
(E) the formation of group net metering systems, the resolution of disputes between group net metering customers and the interconnecting provider, and the billing, crediting, and disconnection of group net metering customers by the interconnecting provider; and
(F) the amount of the credit to be assigned to each kWh of electricity generated by a net metering customer in excess of the electricity supplied by the interconnecting provider to the customer, the manner in which the customer’s credit will be applied on the customer’s bill, and the period during which a net metering customer must use the credit, after which the credit shall revert to the interconnecting provider.
(i) [Repealed.]
(ii) As used in this subdivision (ii), “existing net metering system” means a net metering system for which a complete application was filed before January 1, 2017.
(I) Commencing 10 years from the date on which an existing net metering system was installed, the Commission may apply to the system the same rules governing bill credits and the use of those credits on the customer’s bill that it applies to net metering systems for which applications were filed on or after January 1, 2017, other than any adjustments related to siting and tradeable renewable energy credits.
(II) The amount of excess generation, as defined in the Commission’s rules, from existing net metering systems, may be applied to reduce the provider’s statutory requirements under:
(aa) subdivision 8005(a)(2) of this title for a provider with fewer than 75,000 customers, not including one that is 100 percent renewable under subdivision 8005(b)(1) of this title, and
(bb) subdivision 8005(a)(5) of this title for a provider that is 100 percent renewable under subdivision 8005(b)(1) of this title.
(III) This subdivision (ii) shall apply to existing net metering systems notwithstanding any contrary provision of 1 V.S.A. § 214 and 2014 Acts and Resolves No. 99, Sec. 10.
(3) The rules shall establish standards and procedures governing application for and issuance or revocation of a certificate of public good for net metering systems under the provisions of section 248 of this title. In establishing these standards and procedures:
(A) The rules may waive the requirements of section 248 of this title that are not applicable to net metering systems, including criteria that are generally applicable to public service companies as defined in this title.
(B) The rules may modify notice and hearing requirements of this title as the Commission considers appropriate.
(C) The rules shall seek to simplify the application and review process as appropriate
(D) With respect to net metering systems that exceed 150 kW in plant capacity, the rules shall apply the so-called “Quechee” test for aesthetic impact as described by the Vermont Supreme Court in the case of In re Halnon, 174 Vt. 515 (2002) (mem.). The rules and application form shall state the components of this test.
(E) The rules shall not waive or include provisions that are less stringent than the requirements of subdivision 248(a)(4)(J) (required information) of this title.
(F) This subdivision (F) applies to an application for a net metering system with a capacity that is greater than 25 kilowatts, unless the system is located on a new or existing structure the primary purpose of which is not the generation of electricity. With respect to such a system, the rules shall not waive or include provisions that are less stringent than each of the following:
(i) the requirement of subdivision 248(a)(4)(C) of this title to provide a copy of the application to the Agencies of Agriculture, Food and Markets and of Natural Resources; the Department of Public Service; the Division for Historic Preservation; the municipal legislative body; and the municipal and regional planning commissions; and
(ii) the requirements of subsection 248(f) (preapplication submittal) of this title.
(G) The rules shall establish an expedited registration procedure for net metering systems of 25 kilowatts and less in size.
(4) This section does not require the Commission to adopt identical requirements for the service territory of each retail electricity provider.
(5) Each retail electricity provider shall implement net metering in its service territory through a rate schedule that is consistent with this section and the rules adopted under this section and is approved by the Commission.
(d) [Repealed.]
(e) If a hydroelectric generation plant seeking approval as a net metering system is subject to licensing jurisdiction under the Federal Power Act, 16 U.S.C. chapter 12, subchapter 1, the Commission shall require the plant to obtain such approval through means other than by application for a certificate of public good under section 248 of this title.
(f) Except for net metering systems for which the Commission has established a registration process, the Commission shall issue a final determination as to an uncontested application within 90 days following the date of the last substantive filing by a party.
(Added 2013, No. 99 (Adj. Sess.), § 4, eff. Jan. 1, 2017; amended 2015, No. 56, § 12, eff. Jan. 2, 2017; 2015, No. 174 (Adj. Sess.), § 13, eff. Jan. 2, 2017; 2017, No. 42, § 7, eff. May 22, 2017; 2019, No. 31, § 6; 2019, No. 81, § 5; 2023, No. 85 (Adj. Sess.), § 457, eff. July 1, 2024; 2023, No. 179 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 38, § 1, eff. July 1, 2025.)
§ 8011 Energy storage facilities
(a) The Commission may adopt and implement rules that govern the installation and operation of energy storage facilities of all sizes.
(b) The rules may establish a size threshold below which storage facilities need not submit an application for a certificate of public good pursuant to section 248 of this title.
(c) The rules may include provisions that govern:
(1) the respective duties of retail electricity providers and energy storage facility owners or operators;
(2) the electrical and fire safety, power quality, interconnection, metering, and decommissioning of energy storage facilities;
(3) the resolution of disputes between energy storage facility owners, operators, and the interconnecting provider;
(4) energy storage aggregators and the operation of aggregations; and
(5) energy storage facilities paired with other resources, such as net metering and standard offer plants, including retrofits of existing plants.
(d) The rules shall establish standards and procedures governing application for and issuance or revocation of a certificate of public good for certain energy storage facilities under the provisions of section 248 of this title. In establishing these standards and procedures, the rules may:
(1) waive the requirements of section 248 of this title that are not applicable to energy storage facilities, including criteria that are generally applicable to public service companies as defined in this title;
(2) modify notice and hearing requirements of this title as the Commission considers appropriate; and
(3) seek to simplify the application and review process.
(Added 2021, No. 54, § 11.)
§§ 8012-8014 [Reserved for future use]
Subchapter 2 Clean Energy Development Fund
§ 8015 Vermont Clean Energy Development Fund
(a) Creation of Fund.
(1) There is established the Vermont Clean Energy Development Fund to consist of each of the following:
(A) The proceeds due the State under the terms of the memorandum of understanding between the Department of Public Service and Entergy Nuclear VY and Entergy Nuclear Operations, Inc. that was entered under Public Service Board docket 6812, together with the proceeds due the State under the terms of any subsequent memoranda of understanding entered before July 1, 2005 between the Department of Public Service and Entergy Nuclear VY and Entergy Nuclear Operations, Inc.
(B) Any other monies that may be appropriated to or deposited into the Fund.
(2) Balances in the Fund shall be expended solely for the purposes set forth in this subchapter and shall not be used for the general obligations of government. All balances in the Fund at the end of any fiscal year shall be carried forward and remain part of the Fund. Interest earned by the Fund shall be deposited in the Fund. This Fund is established in the State Treasury pursuant to 32 V.S.A. chapter 7, subchapter 5.
(b) Definitions. As used in this section, the following definitions shall apply:
(1) “Clean energy resources” means electric power supply and demand-side resources, or thermal energy or geothermal resources, that are “combined heat and power facilities,” “cost-effective energy efficiency resources,” or “renewable energy” resources.
(2) “Combined heat and power (CHP) facility” means a generator that sequentially produces both electric power and thermal energy from a single source or fuel. In order for a fossil fuel-based CHP system to participate in the clean energy program set out in this section, at least 20 percent of its fuel’s total recovered energy must be thermal and at least 13 percent must be electric, the design system efficiency (the sum of full load design thermal output and electric output divided by the heat input) must be at least 65 percent, and it must meet air quality standards established by the Agency of Natural Resources.
(3) “Cost-effective energy efficiency” means those energy efficiency and conservation measures that would qualify as part of a utility’s least-cost integrated plan under section 218c of this title or that would be an eligible expenditure under subsection 209(d) of this title.
(4) “Emerging energy-efficient technologies” means technologies that are both precommercial but near commercialization and that have already entered the market but have less than five percent of current market share; that use less energy than existing technologies and practices to produce the same product or otherwise conserve energy and resources, regardless of whether or not they are connected to the grid; and that have additional non-energy benefits such as reduced environmental impact, improved productivity and worker safety, or reduced capital costs.
(5) “Renewable energy” has the meaning established under section 8002 of this title and shall include the following: solar photovoltaic and solar thermal energy; wind energy; geothermal heat pumps; farm, landfill, and sewer methane recovery; low emission, advanced biomass power, and combined heat and power technologies using biomass fuels such as wood, agricultural or food wastes, energy crops, and organic refuse-derived waste, but not municipal solid waste; advanced biomass heating technologies and technologies using biomass-derived fluid fuels such as biodiesel, bio-oil, and bio-gas.
(6) “Energy storage” means a system that uses mechanical, chemical, or thermal processes to store energy for later use.
(c) Purposes of Fund. The purposes of the Fund shall be to promote the development and deployment of cost-effective and environmentally sustainable electric power and thermal energy or geothermal resources for the long-term benefit of Vermont consumers, primarily with respect to renewable energy resources, and the use of combined heat and power technologies. The Fund also may be used to support natural gas and electric vehicles in accordance with subdivisions (d)(1)(K) and (L) of this section, respectively. The General Assembly expects and intends that the Public Utility Commission, Department of Public Service, and the State’s power and efficiency utilities will actively implement the authority granted in this title to acquire all reasonably available cost-effective energy efficiency resources for the benefit of Vermont ratepayers and the power system.
(d) Expenditures authorized.
(1) Projects for funding may include the following:
(A) projects that will sell power in commercial quantities;
(B) among those projects that will sell power in commercial quantities, funding priority will be given to those projects that commit to sell power to Vermont utilities on favorable terms;
(C) projects to benefit publicly owned or leased buildings;
(D) renewable energy projects on farms, which may include any or all costs incurred to upgrade to a three-phase line to serve a system on a farm;
(E) small-scale renewable energy in Vermont residences, institutions, and businesses:
(i) generally; and
(ii) through the Small-scale Renewable Energy Incentive Program;
(F) projects under the agricultural economic development special account established under 6 V.S.A. § 4710(g) to harvest biomass, convert biomass to energy, or produce biofuel;
(G) until December 31, 2008 only, super-efficient buildings;
(H) projects to develop and use thermal or geothermal energy, regardless of whether they also involve the generation of electricity;
(I) emerging energy-efficient technologies;
(J) effective projects that are not likely to be established in the absence of funding under the program;
(K) natural gas vehicles and associated fueling infrastructure if each such vehicle is dedicated only to natural gas fuel and, on a life cycle basis, the vehicle’s emissions will be lower than those of commercially available vehicles using other fossil fuel, and any such infrastructure will deliver gas without interruption of flow;
(L) electric vehicles and associated charging stations;
(M) energy storage projects that facilitate utilization of renewable energy resources.
[Subdivision (d)(2) effective until June 30, 2027; see subdivision (d)(2) effective June 30, 2027 set out below.]
(2) If during a particular year, the Commissioner of Public Service determines that there is a lack of high value projects eligible for funding, as identified in the five-year plan, or as otherwise identified, the Commissioner shall consult with the Clean Energy Development Board and shall consider transferring funds to the Energy Efficiency Fund established under the provisions of subsection 209(d) of this title. Such a transfer may take place only in response to an opportunity for a particularly cost-effective investment in energy efficiency, and only as a temporary supplement to funds collected under that subsection, not as replacement funding.
[Subdivision (d)(2) effective June 30, 2027; see subdivision (d)(2) effective until June 30, 2027 set out above.]
(2) If during a particular year, the Commissioner of Public Service determines that there is a lack of high value projects eligible for funding, as identified in the five-year plan, or as otherwise identified, the Commissioner shall consider transferring funds to the Energy Efficiency Fund established under the provisions of subsection 209(d) of this title. Such a transfer may take place only in response to an opportunity for a particularly cost-effective investment in energy efficiency, and only as a temporary supplement to funds collected under that subsection, not as replacement funding.
(3) Notwithstanding any contrary provision of this section, the Clean Energy Development Fund shall use all of the monies from alternative compliance payments under sections 8004 and 8005 of this title for projects that meet the definition of “energy transformation project” under section 8002 of this title and the eligibility criteria for those projects under section 8005 of this title. The Fund shall implement projects in the service territory of the retail electricity provider or providers making the alternative compliance payments used to support the projects and, in the case of a project delivered in more than one territory, shall prorate service delivery according to each provider’s contribution. A provider shall not count, toward its required amount under the energy transformation category of section 8005 of this title, support provided by the Fund for an energy transformation project.
[Subsection (e) effective until June 30, 2027; see subsection (e) effective June 30, 2027 set out below.]
(e) Management of Fund.
(1) This Fund shall be administered by the Department of Public Service to facilitate the development and implementation of clean energy resources. The Department is authorized to expend monies from the Clean Energy Development Fund in accordance with this section. The Commissioner of the Department shall make all decisions necessary to implement this section and administer the Fund except those decisions committed to the Clean Energy Development Board under this subsection. The Department shall ensure an open public process in the administration of the Fund for the purposes established in this subchapter.
(2) During fiscal years after FY 2006, up to five percent of amounts appropriated to the Department of Public Service from the Fund may be used for administrative costs related to the Clean Energy Development Fund.
(3) There is created the Clean Energy Development Board, which shall consist of seven persons appointed in accordance with subdivision (4) of this subsection.
(A) The Clean Energy Development Board shall have decision-making and approval authority with respect to the plans, budget, and program designs described in subdivisions (7)(B)-(D) of this subsection (e). The Clean Energy Development Board shall function in an advisory capacity to the Commissioner on all other aspects of this section’s implementation.
(B) During a Board member’s term and for a period of one year after the member leaves the Board, the Clean Energy Development Fund shall not make any award of funds to and shall confer no financial benefit on a company or corporation of which the member is an employee, officer, partner, proprietor, or Board member or of which the member owns more than 10 percent of the outstanding voting securities. This prohibition shall not apply to a financial benefit that is available to any person and is not awarded on a competitive basis or offered only to a limited number of persons.
(4) The Commissioner of Public Service shall appoint three members of the Clean Energy Development Board, and the Chairs of the House Committee on Environment and Energy and the Senate Committee on Natural Resources and Energy each shall appoint two members of the Clean Energy Development Board. The terms of the members of the Clean Energy Development Board shall be four years, except that when appointments to this Board are made for the first time after May 25, 2011, each appointing authority shall appoint one member for a two-year term and the remaining members for four-year terms. When a vacancy occurs in the Board during the term of a member, the authority who appointed that member shall appoint a new member for the balance of the departing member’s term.
(5) Except for those members of the Clean Energy Development Board otherwise regularly employed by the State, the compensation of the members shall be the same as that provided by 32 V.S.A. § 1010(a).
(6) In performing its duties, the Clean Energy Development Board may utilize the legal and technical resources of the Department of Public Service. The Department of Public Service shall provide the Clean Energy Development Board with administrative services.
(7) The Department shall perform each of the following:
(A) On or before January 15 of each year, provide to the Senate Committees on Finance and on Natural Resources and Energy and the House Committees on Commerce and Economic Development and on Environment and Energy a report for the fiscal year ending the preceding June 30 detailing the activities undertaken, the revenues collected, and the expenditures made under this subchapter. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subdivision.
(B) Develop, and submit to the Clean Energy Development Board for review and approval, a five-year strategic plan and an annual program plan, both of which shall be developed with input from a public stakeholder process and shall be consistent with State energy planning principles.
(C) Develop, and submit to the Clean Energy Development Board for review and approval, an annual operating budget.
(D) Develop, and submit to the Clean Energy Development Board for review and approval, proposed program designs to facilitate clean energy market and project development (including use of financial assistance, investments, competitive solicitations, technical assistance, and other incentive programs and strategies). Prior to any approval of a new program or of a substantial modification to a previously approved program of the Clean Energy Development Fund, the Department of Public Service shall publish online the proposed program or modification, shall provide an opportunity for public comment of no less than 30 days, and shall provide to the Clean Energy Development Board copies of all comments received on the proposed program or modification. In this subdivision (D), “substantial modification” shall include a change to a program’s application criteria or application deadlines and shall include any change to a program if advance knowledge of the change could unfairly benefit one applicant over another applicant. For the purpose of 3 V.S.A. § 831(c) (initiating rulemaking on request), a new program or substantial modification of a previously approved program shall be treated as if it were an existing practice or procedure.
(8) At least annually, the Clean Energy Development Board and the Commissioner or designee jointly shall hold a public meeting to review and discuss the status of the Fund, Fund projects, the performance of the Fund Manager, any reports, information, or inquiries submitted by the Fund Manager or the public, and any additional matters they deem necessary to fulfill their obligations under this section.
[Subsection (e) effective June 30, 2027; see subsection (e) effective until June 30, 2027 set out above.]
(e) Management of Fund.
(1) This Fund shall be administered by the Department of Public Service to facilitate the development and implementation of clean energy resources. The Department is authorized to expend monies from the Clean Energy Development Fund in accordance with this section. The Commissioner of the Department shall make all decisions necessary to implement this section and administer the Fund. The Department shall ensure an open public process in the administration of the Fund for the purposes established in this subchapter.
(2) During fiscal years after FY 2006, up to five percent of amounts appropriated to the Department of Public Service from the Fund may be used for administrative costs related to the Clean Energy Development Fund.
(3) The Department shall perform each of the following:
(A) On or before January 15 of each year, provide to the Senate Committees on Finance and on Natural Resources and Energy and the House Committees on Commerce and Economic Development and on Environment and Energy a report for the fiscal year ending the preceding June 30 detailing the activities undertaken, the revenues collected, and the expenditures made under this subchapter. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subdivision.
(B) Develop a five-year strategic plan and an annual program plan, both of which shall be developed with input from a public stakeholder process and shall be consistent with State energy planning principles.
(C) Develop an annual operating budget.
(D) Develop proposed program designs to facilitate clean energy market and project development (including use of financial assistance, investments, competitive solicitations, technical assistance, and other incentive programs and strategies). Prior to any approval of a new program or of a substantial modification to a previously approved program of the Clean Energy Development Fund, the Department of Public Service shall publish online the proposed program or modification, shall provide an opportunity for public comment of no less than 30 days. For the purposes of this subdivision (D), “substantial modification” includes a change to a program’s application criteria or application deadlines and includes any change to a program if advance knowledge of the change could unfairly benefit one applicant over another applicant. For the purpose of 3 V.S.A. § 831(c) (initiating rulemaking on request), a new program or substantial modification of a previously approved program shall be treated as if it were an existing practice or procedure.
(4) At least annually, the Commissioner or designee jointly shall hold a public meeting to review and discuss the status of the Fund; Fund projects; the performance of the Fund Manager; any reports, information, or inquiries submitted by the Fund Manager or the public; and any additional matters they deem necessary to fulfill the Commissioner’s obligations under this section.
(f) Clean Energy Development Fund Manager. The Clean Energy Development Fund shall have a Fund Manager who shall be an employee of the Department of Public Service.
[Subsection (g) effective until June 30, 2027; see subsection (g) effective June 30, 2027 set out below.]
(g) Bonds. The Commissioner of Public Service, in consultation with the Clean Energy Development Board, may explore use of the Fund to establish one or more loan-loss reserve funds to back issuance of bonds by the State Treasurer otherwise authorized by law, including Clean Renewable Energy Bonds, that support the purposes of the Fund.
[Subsection (g) effective June 30, 2027; see subsection (g) effective until June 30, 2027 set out above.]
(g) Bonds. The Commissioner of Public Service may explore use of the Fund to establish one or more loan-loss reserve funds to back issuance of bonds by the State Treasurer otherwise authorized by law, including Clean Renewable Energy Bonds, that support the purposes of the Fund.
[Subsection (h) effective until June 30, 2027; see subsection (h) effective June 30, 2027 set out below.]
(h) ARRA funds. All American Recovery and Reinvestment Act (ARRA) funds described in section 8016 of this title shall be disbursed, administered, and accounted for in a manner that ensures rapid deployment of the funds and is consistent with all applicable requirements of ARRA, including requirements for administration of funds received and for timeliness, energy savings, matching, transparency, and accountability. These funds shall be expended for the following categories listed in this subsection, provided that no single project directly or indirectly receives a grant in more than one of these categories. After consultation with the Clean Energy Development Board, the Commissioner of Public Service shall have discretion to use non-ARRA monies within the fund to support all or a portion of these categories and shall direct any ARRA monies for which non-ARRA monies have been substituted to the support of other eligible projects, programs, or activities under ARRA and this section.
(1) The Vermont Small-scale Renewable Energy Incentive Program currently administered by the Renewable Energy Resource Center, for use in residential and business installations. These funds may be used by the Program for all forms of renewable energy as defined by section 8002 of this title, including biomass and geothermal heating. The disbursement to this Program shall seek to promote continuous funding for as long as funds are available.
(2) Grant and loan programs for renewable energy resources, including thermal resources such as district biomass heating that may not involve the generation of electricity.
(3) Grants and loans to thermal energy efficiency incentive programs, community-scale renewable energy financing programs, certification and training for renewable energy workers, promotion of local biomass and geothermal heating, and an anemometer loan program.
(4) $2 million for a public-serving institution efficiency and renewable energy program that may include grants and loans and create a revolving loan fund. In this subsection, “public-serving institution” means government buildings and nonprofit public and private universities, colleges, and hospitals. In this program, awards shall be made through a competitive bid process.
(5) $2 million to the Vermont Housing and Conservation Board (VHCB) to make grants and deferred loans to nonprofit organizations for weatherization and renewable energy activities allowed by federal law, including assistance for nonprofit owners and occupants of permanently affordable housing.
(6) $2 million to the Vermont Telecommunications Authority (VTA) to make grants of no more than $10,000.00 per turbine for installation of small-scale wind turbines and associated towers on which telecommunications equipment is to be collocated and that are developed in association with the VTA.
(7) $880,000.00 to the 11 regional planning commissions ($80,000.00 to each such commission) to conduct energy efficiency and energy conservation activities that are eligible under the EECBG program.
(8) Concerning the funds authorized for use in subdivisions (4)-(7) of this subsection:
(A) To the extent permissible under ARRA, up to five percent may be spent for administration of the funds received.
(B) In the event that the Commissioner of Public Service determines that a recipient of such funds has insufficient eligible projects, programs, or activities to fully utilize the authorized funds, then after consultation with the Clean Energy Development Board, the Commissioner shall have discretion to reallocate the balance to other eligible projects, programs, or activities under this section.
(9) The Commissioner of Public Service is authorized, to the extent allowable under ARRA, to utilize up to 10 percent of ARRA funds received for the purpose of administration. The Commissioner shall allocate a portion of the amount utilized for administration to retain permanent, temporary, or limited service positions or contractors and the remaining portion to the oversight of specific projects receiving ARRA funding pursuant to section 6524 of this title.
[Subsection (h) effective June 30, 2027; see subsection (h) effective until June 30, 2027 set out above.]
(h) ARRA funds. All American Recovery and Reinvestment Act (ARRA) funds described in section 8016 of this title shall be disbursed, administered, and accounted for in a manner that ensures rapid deployment of the funds and is consistent with all applicable requirements of ARRA, including requirements for administration of funds received and for timeliness, energy savings, matching, transparency, and accountability. These funds shall be expended for the following categories listed in this subsection, provided that no single project directly or indirectly receives a grant in more than one of these categories. The Commissioner of Public Service shall have discretion to use non-ARRA monies within the fund to support all or a portion of these categories and shall direct any ARRA monies for which non-ARRA monies have been substituted to the support of other eligible projects, programs, or activities under ARRA and this section.
(1) The Vermont Small Scale Renewable Energy Incentive Program currently administered by the Renewable Energy Resource Center, for use in residential and business installations. These funds may be used by the Program for all forms of renewable energy as defined by section 8002 of this title, including biomass and geothermal heating. The disbursement to this Program shall seek to promote continuous funding for as long as funds are available.
(2) Grant and loan programs for renewable energy resources, including thermal resources such as district biomass heating that may not involve the generation of electricity.
(3) Grants and loans to thermal energy efficiency incentive programs, community-scale renewable energy financing programs, certification and training for renewable energy workers, promotion of local biomass and geothermal heating, and an anemometer loan program.
(4) $2 million for a public-serving institution efficiency and renewable energy program that may include grants and loans and create a revolving loan fund. As used in this subsection, “public-serving institution” means government buildings and nonprofit public and private universities, colleges, and hospitals. In this program, awards shall be made through a competitive bid process.
(5) $2 million to the Vermont Housing and Conservation Board (VHCB) to make grants and deferred loans to nonprofit organizations for weatherization and renewable energy activities allowed by federal law, including assistance for nonprofit owners and occupants of permanently affordable housing.
(6) [Repealed.]
(7) $880,000.00 to the 11 regional planning commissions ($80,000.00 to each such commission) to conduct energy efficiency and energy conservation activities that are eligible under the EECBG program.
(8) Concerning the funds authorized for use in subdivisions (4)-(7) of this subsection:
(A) To the extent permissible under ARRA, up to five percent may be spent for administration of the funds received.
(B) In the event that the Commissioner of Public Service determines that a recipient of such funds has insufficient eligible projects, programs, or activities to fully utilize the authorized funds, the Commissioner shall have discretion to reallocate the balance to other eligible projects, programs, or activities under this section.
(9) The Commissioner of Public Service is authorized, to the extent allowable under ARRA, to utilize up to 10 percent of ARRA funds received for the purpose of administration. The Commissioner shall allocate a portion of the amount utilized for administration to retain permanent, temporary, or limited service positions or contractors and the remaining portion to the oversight of specific projects receiving ARRA funding pursuant to section 6524 of this title.
[Subsection (i) effective until June 30, 2027; see subsection (i) effective June 30, 2027 set out below.]
(i) Rules. The Department and the Clean Energy Development Board each may adopt rules pursuant to 3 V.S.A. chapter 25 to carry out its functions under this section and shall consult with each other either before or during the rulemaking process.
[Subsection (i) effective June 30, 2027; see subsection (i) effective until June 30, 2027 set out above.]
(i) Rules. The Department may adopt rules pursuant to 3 V.S.A. chapter 25 to carry out its functions under this section.
(Added 2005, No. 74, § 2; amended 2005, No. 208 (Adj. Sess.), § 5; 2005, No. 215 (Adj. Sess.), § 280, eff. May 31, 2006; 2007, No. 65, § 94a; 2007, No. 92 (Adj. Sess.), § 7; 2009, No. 45, §§ 5, 9e, eff. May 27, 2009; 2009, No. 54, § 93, eff. June 1, 2009; 2009, No. 1 (Sp. Sess.), § E.235.3, eff. June 2, 2009; 2009, No. 2 (Sp. Sess.), § 4, eff. June 1, 2009; 2009, No. 3 (Sp. Sess.), § 13, eff. June 10, 2009; 2009, No. 67 (Adj. Sess.), § 68, eff. Feb. 25, 2010; 2009, No. 67 (Adj. Sess.), § 103; 2009, No. 159 (Adj. Sess.), § 18a; 2011, No. 47, § 20j, eff. July 9, 2011, except subdivs. (d)(3) and (4) and (e)(3) and (4) eff. May 25, 2011; 2013, No. 89, § 15; 2013, No. 95 (Adj. Sess.), § 82a, eff. Feb. 25, 2014; 2013, No. 142 (Adj. Sess.), § 53; 2015, No. 56, § 13; 2017, No. 53, § 23, eff. May 30, 2017; 2017, No. 113 (Adj. Sess.), § 175b; 2023, No. 53, § 137, eff. June 30, 2027.)
§ 8016 ARRA energy monies
The expenditure of each of the following shall be subject to the direction and approval of the Commissioner of Public Service, after consultation with the Clean Energy Development Board established under subdivision 8015(e)(4) of this title, and shall be made in accordance with subdivisions 8015(d)(1) (expenditures authorized), and (e)(7)(A) (reporting) and subsections 8015(f) (Fund manager), (h) (ARRA funds), and (i) (rules) of this title and applicable federal law and regulations:
(1) The amount of $21,999,000.00 in funds received by the State under the appropriation contained in the American Recovery and Reinvestment Act (ARRA) of 2009, Pub.L. No. 111-5, to the State Energy Program authorized under 42 U.S.C. § 6321 et seq.
(2) The amount of $9,593,500.00 received by the State under ARRA from the U.S. Department of Energy through the Energy Efficiency and Conservation Block Grant Program.
(Added 2009, No. 67 (Adj. Sess.); § 69; amended 2011, No. 47, § 20l, eff. July 9, 2011.)
Chapter 90 Vermont Hydroelectric Power Authority
§§ 8040-8052 Repealed
[Repealed]
by operation of 2015, No. 130 (Adj. Sess.), § 5(b).
Chapter 91 Vermont Telecommunications Authority [Repealed]
§ 8060 Repealed
[Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; amended 2009, No. 54, § 50, eff. June 1, 2009; 2011, No. 53, § 15, eff. May 27, 2011; 2013, No. 190 (Adj. Sess.), § 30; 2013, No. 200 (Adj. Sess.), § 2; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8060a Period of dormancy [Repealed]
(Added 2013, No. 190 (Adj. Sess.), § 28, eff. June 16, 2014; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8061 Establishment of authority; organization [Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; amended 2011, No. 53, § 16, eff. May 27, 2011; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8062 Purpose; powers and duties [Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; amended 2011, No. 53, § 17, eff. May 27, 2011; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8063 Interagency cooperation and assistance [Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; amended 2011, No. 53, § 18, eff. May 27, 2011; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8064 Bonds and notes [Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; amended 2019, No. 79, § 18, eff. June 20, 2019; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8065 Reserve funds [Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8066 Refunding obligations — issuance and sale [Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8067 Remedies of bondholders and note holders [Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8068 Pledge of the state [Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8069 Sovereign immunity; credit of state not pledged [Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8070 Notes and bonds as legal investments [Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
§ 8071 Quarterly and annual reports; audit [Repealed]
(Added 2007, No. 79, § 1, eff. June 9, 2007; amended 2011, No. 53, § 19, eff. May 27, 2011; 2011, No. 139 (Adj. Sess.), § 29, eff. May 14, 2012; repealed by 2023, No. 53, § 138, eff. June 8, 2023.)
Chapter 91A Vermont Community Broadband Board
§ 8081 Purpose
In recognition of the historic level of broadband funding currently available to the State and the critical need for broadband access and adoption, it is the purpose of this chapter to establish the Vermont Community Broadband Fund to support policies and programs designed to accelerate community efforts that advance the State’s goal of achieving universal access to reliable, high-quality, affordable, fixed broadband and to establish the Vermont Community Broadband Board to coordinate, facilitate, support, and accelerate the development and implementation of universal community broadband solutions.
(Added 2021, No. 71, § 2, eff. June 8, 2021.)
§ 8082 Definitions
As used in this chapter:
(1) “Board” means the Vermont Community Broadband Board.
(2) “Broadband service” or “broadband” means a mass-market retail service by wire or radio in Vermont that provides the capability to transmit data to and receive data from all or substantially all internet endpoints, including any capabilities that are incidental to and enable the operation of the communications service, but excluding dial-up internet access service.
(3) “Department” means the Department of Public Service.
(4) “Eligible provider” means:
(A) a communications union district;
(B) a small communications carrier; or
(C) an internet service provider working in conjunction with a communications union district to expand broadband service to unserved and underserved locations as part of a plan to achieve universal broadband coverage in the district.
(5) “Fund” means the Vermont Community Broadband Fund established by this chapter.
(6) “Internet service provider” means a business that provides broadband internet access service to any person in Vermont.
(7) “Location” means an E-911 business or residential address connected to the electric power grid.
(8) “Municipality” means a city, town, incorporated village, or unorganized town or gore.
(9) “Served” means a location that has access to broadband service capable of speeds of at least 25 Mbps download and 3 Mbps upload.
(10) “Small communications carrier” means:
(A) a carrier that has elected to be regulated under subsection 227d(a) of this title; or
(B) an internet service provider that operates in not more than five counties.
(11) “Underserved” means a location that only has access to broadband service capable of speeds of at least 4 Mbps download and 1 Mbps upload but less than 25 Mbps download and 3 Mbps upload.
(12) “Universal service plan” means a plan for providing each unserved and underserved location in a communications union district or in a municipality that was not part of a communications union district prior to June 1, 2021 access to broadband service capable of speeds of at least 100 Mbps download and 100 Mbps upload.
(13) “Unserved” means a location that only has access to broadband capable of speeds of less than 4 Mbps download and 1 Mbps upload.
(Added 2021, No. 71, § 2, eff. June 8, 2021.)
§ 8083 Vermont Community Broadband Fund
(a) There is created a special fund in the State Treasury to be known as the “Vermont Community Broadband Fund.” Expenditures from the Fund shall be made only to implement and effectuate the policies, purposes, and programs established in this chapter. The Fund shall be composed of any monies from time to time appropriated to the Fund by the General Assembly, transferred to the Fund pursuant to subsection 7523(b) of this title, or received from any other source, private or public, subject to the provisions of 32 V.S.A. § 5. Unexpended balances and any earnings shall remain in the Fund for use in accord with the purposes of this chapter.
(b) Authorized expenditures from the Fund include:
(1) grants pursuant to the Broadband Preconstruction Grant Program established in section 8085 of this chapter;
(2) grants pursuant to the Broadband Construction Grant Program established in section 8086 of this chapter;
(3) funding for communications workforce training and development, in consultation with the Commissioner of Labor, to the extent such funds are not available from other funding sources;
(4) funding for a comprehensive, statewide fiber-optic engineering design as specified in subdivision 8084(a)(6)(I) of this chapter;
(5) administrative expenses of grant recipients in an amount determined by the Board, subject to applicable federal law and guidance; and
(6) upon approval by the General Assembly, up to $1,500,000.00 annually to fund the operational expenses of the Board and the Department to the extent the Department’s expenses support the work of the Board.
(c) Expenditures from the Fund shall be authorized by the Board.
(Added 2021, No. 71, § 2, eff. June 8, 2021; amended 2021, No. 185 (Adj. Sess.), § E.233, eff. July 1, 2022.)
§ 8084 Vermont Community Broadband Board
(a) Vermont Community Broadband Board.
(1) There is created within the Department of Public Service the Vermont Community Broadband Board. The Board shall have approval authority with respect to budget development, program design, grant awards, and all other funding allocations pursuant to this chapter.
(2) The Board shall consist of five members as follows:
(A) two members appointed by the Governor who shall not be employees or officers of the State at the time of the appointment and at least one of whom shall have expertise in the area of finance and one of whom shall be selected by the Governor to serve as the Chair;
(B) one member appointed by the Speaker of the House who shall not be a member of the General Assembly at the time of the appointment and who shall have expertise in the area of broadband deployment in rural, high-cost areas;
(C) one member appointed by the Senate Committee on Committees who shall not be a member of the General Assembly at the time of the appointment and who shall have expertise in the area of communications and electric utility law and policy; and
(D) one member appointed by the Vermont Communications Union District Association.
(3) The members may not be persons with a financial interest in or owners, employees, or members of a governing board of an internet service provider or a communications union district; however, this provision shall not be construed to disqualify a member who has ownership in a mutual fund, exchange-traded fund, pension plan, or similar entity that owns shares in such enterprises as part of a broadly diversified portfolio. Members shall serve terms of three years beginning on February 1 of the year of appointment; however, the members first appointed by the Governor shall serve initial terms of four years, the member first appointed by the Speaker of the House shall serve an initial term of three years, and the member first appointed by the Committee on Committees shall serve an initial term of two years. A vacancy shall be filled by the respective appointing authority for the balance of the unexpired term. A member may be reappointed. A member may be removed for cause only.
(4) At its initial organizational meeting, and annually thereafter at the first meeting following February 1, the Board shall elect from among its members a vice chair. The Board may elect officers as it may determine. Meetings shall be held at the call of the Chair or at the request of two members. A majority of sitting members shall constitute a quorum, and action taken by the Board under the provisions of this chapter may be authorized by a majority of the members present and voting at any regular or special meeting.
(5) Members are entitled to a per diem in the amount of $250.00 for each day spent in the performance of their duties and each member shall be reimbursed for his or her reasonable expenses incurred in carrying out his or her duties under this chapter.
(6) The Board shall have all the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter, including the power to:
(A) coordinate and facilitate community broadband efforts;
(B) provide resources to communications union districts in the form of administrative and technical support;
(C) provide grants for the preconstruction and construction costs of broadband projects;
(D) facilitate partnerships between communications union districts and their potential partners;
(E) develop policies or recommend to the General Assembly programs that promote a strong communications workforce in Vermont;
(F) develop policies or recommend to the General Assembly programs that promote access to affordable broadband service plans;
(G) consult with the Vermont Economic Development Board and the Vermont Municipal Bond Bank with regard to financing community broadband projects;
(H) identify and publish State, federal, nonprofit, and any other broadband funding opportunities;
(I) contract for a comprehensive, statewide fiber-optic engineering design to identify strategies that maximize fiber-optic buildout efficiency and ensure resiliency and interoperability of all existing fiber-optic networks built with public or ratepayer funds, and that takes into consideration all proposed publicly funded fiber-optic projects, the development of which shall not be required or impede the disbursement of grants under this chapter;
(J) provide input to the Department of Public Service on the development of the State’s Telecommunications Plan; and
(K) do any and all things necessary or convenient to effectuate the purposes and provisions of this chapter and to carry out its purposes and exercise the powers given and granted in this chapter.
(7) The Department shall provide the Board with administrative services.
(8) All meetings of the Board shall be open to the public and conducted in accordance with the Vermont Open Meeting Law. All records of the Board are subject to the Vermont Public Records Act. Any records or information produced or acquired by the Board that are trade secrets or confidential business information shall be exempt from public inspection and copying pursuant to 1 V.S.A. § 317(c)(9).
(b) Executive Director.
(1) The Vermont Community Broadband Fund shall have an Executive Director. The initial Executive Director shall be appointed by the Governor with the advice and consent of the Senate, and subsequent executive directors shall be hired by the Board. The Executive Director shall be an employee of the Department of Public Service. The Executive Director shall be overseen and managed by the Board and shall serve as its chief administrative officer. The Executive Director shall direct and supervise the Board’s administrative affairs and technical activities in accordance with Board policies. In addition to any other duties necessary for carrying out the purposes of this chapter, the Executive Director shall:
(A) work with the Board in developing and implementing the programs established by this chapter;
(B) approve all accounts of the Board, including accounts for salaries, per diems, and allowable expenses of any employee or consultant thereof and expenses incidental to the operation of the Board;
(C) make recommendations to the Board for grant awards or other forms of financial or technical assistance authorized by this chapter;
(D) make an annual report to the Board documenting the actions of the Board and such other reports as the Board may request; and
(E) perform such other duties as may be directed by the Board in the carrying out of the purposes and provisions of this chapter.
(2) The Executive Director may retain or employ technical experts and other officers, agents, employees, and contractors as are necessary to give effect to the purposes of this chapter, including in the areas of finance, network planning, engineering and technical design, and grant writing, and may fix their qualifications, duties, and compensation. The Executive Director shall oversee and manage the Rural Broadband Technical Assistance Specialist created in subsection 7523(b) of this title. The Executive Director is authorized to hire additional full-time employees pursuant to this subdivision who shall be part of the classified service created in 3 V.S.A. chapter 13.
(c) Administration. The Fund shall be administered by the Department. The Department is authorized to expend monies from the Fund in accordance with this chapter. The Commissioner shall make all decisions necessary to implement this chapter and administer the Fund except those decisions committed to the Board under this section. The Department shall ensure an open public process in the administration of the Fund for the purposes established in this chapter.
(d) Grant administration redesignation. The Board shall be redesignated as the responsible entity for administering the $1,000,000.00 grant award to the Department of Public Service by the Northern Border Regional Commission for the purpose of supporting communications union districts. Any position funded by the grant shall be overseen and managed by the Board in a manner that is consistent with grant terms and conditions.
(Added 2021, No. 71, § 2, eff. June 8, 2021.)
§ 8085 Broadband Preconstruction Grant Program
(a) There is established the Community Broadband Preconstruction Grant Program to be administered by the Board. The purpose of the Program is to provide grants to communications union districts for preconstruction costs related to broadband projects that are part of a universal service plan.
(b) As used in this section, “preconstruction costs” include expenses for feasibility studies, business planning, pole data surveys, engineering and design, and make-ready work associated with the construction of broadband networks, including consultant, legal, and administrative expenses, and any other costs deemed appropriate by the Board.
(c) To ensure an equitable distribution of funds under this Program and to encourage collaborative work among communications union districts, grant awards shall be scalable and shall be commensurate with the size of a broadband project as determined by the project’s service area, road mileage, the number of unserved or underserved locations, or any other metric deemed appropriate by the Board. In addition, the Board may develop standards for the disbursement of grant funds in a manner that both supports the efficient and timely use of funds and also ensures accountability.
(Added 2021, No. 71, § 2, eff. June 8, 2021.)
§ 8086 Broadband Construction Grant Program
(a) There is established the Broadband Construction Grant Program to finance the broadband projects of eligible providers that are part of a universal service plan.
(b) In evaluating grant proposals under this chapter, the Board shall give priority to broadband projects that:
(1) leverage existing private resources and assets, with a high priority given to partnerships between a communications union district and a distribution utility;
(2) demonstrate project readiness;
(3) provide broadband service that complies with the consumer protection and net neutrality standards established in 3 V.S.A. § 348;
(4) support low-income or disadvantaged communities;
(5) promote geographic diversity of fund allocations;
(6) provide consumers with affordable service options; and
(7) include public broadband assets that can be shared by multiple service providers and that can support a variety of public purposes.
(c) The Board shall establish policies and standard grant terms and conditions that:
(1) reflect payment schedules that ensure maximum accountability;
(2) adopt an industry-accepted engineering standard that promotes network reliability, resiliency, and interoperability;
(3) establish standards for recouping grant funds and transferring ownership of grant-funded network assets if a grantee materially fails to comply with the terms and conditions of a grant;
(4) establish a continuity of operations plan applicable to a network owned by a communications union district that, among other things, contemplates the Board assuming operational control of a network if necessary to maintain uninterrupted broadband service;
(5) prohibit the sale or transfer of grant-funded network assets without the prior written approval of the Board;
(6) allow an applicant to seek reconsideration of an adverse Board decision;
(7) ensure project completion within a reasonable period of time and consistent with applicable federal law and guidance; and
(8) comply with Administrative Bulletin No. 5, the Agency of Administration’s policy for grant issuance and monitoring, and Administrative Bulletin 3.5, the Agency of Administration’s policy for procurement and contracting procedures, as appropriate, and any other requirements of federal law and guidance, if applicable.
(d) Before the Board awards a grant under this section, it shall determine that the applicant has produced a viable business plan for its proposed broadband project, which takes into consideration network engineering and design, labor needs and availability, supply-chain contingencies for equipment and materials, make-ready work, and any other relevant capital and operational expenses.
(e) The Board shall not award a grant to an eligible provider who is not a communications union district unless the Board determines that the provider’s universal service plan does not conflict with or undermine the universal service plan of an existing communications union district.
(f) The Board may provide a grant to an eligible provider that enables the provision of broadband service in a geographic area currently served, provided that:
(1) the proposed project is a cost-effective method for providing broadband service to nearby unserved and underserved locations that is capable of speeds of at least 100 Mbps download and 100 Mbps upload;
(2) any overbuild is incidental to the overall objectives of the universal service plan required for funding under this Program; and
(3) before awarding the grant, the Board makes a reasonable effort to distinguish served and unserved or underserved locations within the geographic area, including recognition and consideration of known or probable service extensions or upgrades.
(g) It is the intent of the General Assembly that a broadband project financed under this Program demonstrates an economically sustainable business model that ultimately will be eligible for financing in the private or municipal bond market.
(h)(1) The Board shall require a communications union district that borrows funds for the purpose of financing a broadband project to immediately provide written notice to the Board in the event the communications union district becomes aware that it is at risk of financial insolvency or of defaulting on the payment of principal or interest on a loan when due. The Board, in turn, shall promptly provide written notice to the Governor, the Treasurer, and the Joint Fiscal Committee of such risk of insolvency or default and shall include in its notification a description of any potential ramifications of the insolvency or default under the terms and conditions of the applicable loan.
(2) If a communications union district defaults on the payment of principal or interest on a loan secured by grant-funded network assets, such assets may not be transferred or sold for a period of 180 calendar days commencing on the day the loan became past due. To the extent reasonably practicable, it is the intent of the General Assembly that publicly owned network assets remain publicly owned assets.
(Added 2021, No. 71, § 2, eff. June 8, 2021; amended 2021, No. 179 (Adj. Sess.), §§ 19, 20, eff. July 1, 2022.)
§ 8087 Centralized resources for communications union districts
(a) The Board shall provide centralized resources and technical and administrative support to communications union districts with respect to the planning, development, and implementation of broadband projects.
(b) In carrying out the purpose of this section, the Board shall:
(1) develop standardized forms, contracts, network business and design models, and templates for use by any communications union district;
(2) assist communications union districts with identifying and negotiating with potential partners, including with respect to the development of a memorandum of understanding or other form of legally-binding commitment pertaining to a broadband project;
(3) when authorized by one or more communications union districts, apply for grants, loans, permits, licenses, certificates, or approvals, or enter into contractual arrangements for goods or services on behalf of or jointly with a communications union district or districts;
(4) assist communications union districts with pursuing route identification for fiber-optic infrastructure and with obtaining pole surveys and negotiating pole attachments;
(5) assist communications union districts with completing grant and loan applications for funding opportunities that exist outside this chapter; and
(6) assist communications union districts with obtaining access to fiber-optic networks owned by the State or by an electric distribution utility, where appropriate.
(Added 2021, No. 71, § 2, eff. June 8, 2021.)
§ 8088 Interagency cooperation and assistance
Other departments and agencies of the State government, including the E-911 Board, shall assist and cooperate with the Board and shall make available to it information and data as needed to assist the Board in carrying out its duties. The Secretary of Administration shall establish protocols and agreements among the Board and departments and agencies of the State for this purpose. Nothing in this section shall be construed to waive any privilege or protection otherwise afforded to the data and information under exemption to the Public Records Act or under other laws due solely to the fact that the information or data is shared with the Board pursuant to this section.
(Added 2021, No. 71, § 2, eff. June 8, 2021.)
§ 8089 Annual report
(a) Notwithstanding 2 V.S.A. § 20(d), on or before January 15 of each year, the Board shall submit a report of its activities pursuant to this chapter for the preceding year to the Senate Committees on Finance and on Natural Resources and Energy, the House Committee on Environment and Energy, and the Joint Information Technology Oversight Committee. The report shall include an operating and financial statement covering the Board’s operations during the year, including a summary of all grant awards and contracts and agreements entered into by the Board. In addition, the report shall include a description of the progress each start-up communications union district has made in achieving long-term financial sustainability that is not dependent upon public funding, an update on its efforts to secure additional federal funds for broadband deployment, and progress made towards meeting the State’s goal of ensuring every E-911 location has access to broadband capable of delivering a minimum of 100 Mbps symmetrical service as required in subdivision 202c(b)(10) of this title.
(b) As part of its first annual report, the Board shall include recommended legislation for policies and programs not authorized under this chapter but consistent with its purpose or for any other policies and programs it deems appropriate. The report shall include recommendations concerning increased access to and use of fiber-optic networks owned by the State or by an electric distribution utility in furtherance of the goals of this chapter. In addition, and with input from relevant stakeholders, the Board shall make recommendations on whether and to what extent authorized expenditures under the Fund should be expanded to include:
(1) funding for equipment replacement in the Department of Libraries’ FiberConnect Network;
(2) funding for building-wide Wi-Fi installations at multi-unit affordable housing owned by nonprofits and housing authorities for the purpose of providing free broadband service to the residents thereof;
(3) funding for digital inclusion efforts, such as subsidized customer equipment installations and broadband service, grants for long-term affordability planning, and outreach and digital literacy training;
(4) funding for co-worker spaces;
(5) additional funding for communications workforce development initiatives; and
(6) funding for any other broadband programs or initiatives.
(Added 2021, No. 71, § 2, eff. June 8, 2021.)
§ 8089a Sunset; transfer plan
(a) The Fund and Board shall cease to exist on July 1, 2029.
(b) As part of its annual report submitted on or before January 15, 2029, the Board shall develop a plan for transferring its assets, liabilities, and legal and contractual obligations to another appropriate State entity. The Board may include in its report a recommendation regarding the continued existence of the Board beyond its statutory sunset date.
(Added 2021, No. 71, § 2, eff. June 8, 2021.)
Chapter 92 Electric and Gas Companies; Providing Access for Communications Facilities
§ 8090 Definitions
For the purposes of this chapter:
(1) “Communications facilities” shall mean facilities that are used to send and receive audio, images, data, or other information via any electromagnetic media, including wires, cables, microwaves, radio waves, light waves, or any combination of these or similar media.
(2) “Communications service provider” shall mean the Vermont Telecommunications Authority, a company subject to the jurisdiction of the Public Utility Commission under subdivision 203(5) or section 502 of this title, or a broadband service provider who is considered to be an “attaching entity” pursuant to subsection 209(g) of this title.
(3) “Company” or “companies” shall mean an electric or gas utility subject to the jurisdiction of the Public Utility Commission.
(Added 2007, No. 131 (Adj. Sess.), § 2.)
§ 8091 Access to facilities
(a) Any company shall allow and enable access to its plant and equipment where possible for the installation and maintenance of communications facilities by communications service providers.
(b) When constructing or substantially reconstructing lines or structures used for electric or gas transmission or electric distribution, a company shall allow for the construction and maintenance of communications facilities if requested by a communications service provider.
(c) Access and services required by this section shall be subject to regulation by the Public Utility Commission and the Department of Public Service and shall be offered on rates, terms, and conditions, including terms of ownership of facilities, established in section 8092 of this chapter, except that services under tariffs developed pursuant to Public Utility Commission rules regarding pole attachments shall be governed by those rules.
(d) Owners of self-generation facilities, those not connected to the electric grid and net-metered generators, shall not be obligated to comply with this section.
(e) If a communications service provider requests services from a company pursuant to this title, then the communications service provider shall be responsible for all of the costs the company incurs to obtain any easements or limited rights in property necessary to provide those services to the communications service provider, including compensation, legal fees, and the administrative costs of the utility.
(Added 2007, No. 131 (Adj. Sess.), § 2; amended 2023, No. 85 (Adj. Sess.), § 458, eff. July 1, 2024.)
§ 8092 Rates; terms; conditions
(a) Any company providing electric or gas service under Public Utility Commission jurisdiction pursuant to this title shall prepare and file with the Public Utility Commission, with a copy provided to the Commissioner of Public Service and the Director for Public Advocacy, a statement of generally available rates, terms, and conditions for attachments and installations required under section 8091 of this chapter. The nature and specificity of such statement may take into account the nature and size of the company, an assessment of the types of communications facilities for which requests are most likely, and such other factors as necessary to ensure that the rates, terms, and conditions set forth in the statement are sufficiently flexible to meet the capacities of the company, the interests of the company’s ratepayers, and the goal of facilitating broadband and wireless service.
(b) The Department and the Commission shall review the statement of generally available rates, terms, and conditions filed by each company. In the event that the Commission or the Department has grounds to believe that the rates, terms, or conditions are not just and reasonable, the Commission may open an investigation into the statement. In the absence of an investigation, or while such an investigation is pending, the company’s filed statement of rates, terms, and conditions shall take effect or shall remain in effect without requiring the approval of the Commission. Changes to any company’s filed statement of rates, terms, and conditions shall not take effect until 45 days after the statement has been filed with the Commission and the Department.
(c) In the event of a Commission investigation into a company’s statement of rates, terms, and conditions pursuant to this chapter, the Commission may alter or change the rates, terms, or conditions in effect for attachments and installations after notice and hearing, upon a finding that the company’s rates, terms, or conditions are not just and reasonable. In making its determination, the Commission shall consider evidence that may be presented regarding the commercial reasonableness of the rates given the local market and the public interest in reasonable rates for electric or gas service and availability of communications services in the State. Any change in rates, terms, and conditions required as a result of a Commission investigation shall be effective as of the date of the Commission’s order without any refund.
(d) The statement shall include rates, terms, and conditions for services for which the company may reasonably expect to receive requests, including at a minimum:
(1) For wireline communications facilities:
(A) Attachment of communications facilities to electric transmission facilities and maintenance of these communications facilities.
(B) Contribution to construction for communications facilities installed concurrently with the construction or reconstruction of electric and gas company facilities when requested by a communications service provider.
(2) For wireless communication facilities:
(A) Attachment of communications facilities to electric transmission and generation facilities and maintenance of these communications facilities.
(B) Contribution to construction for communications facilities installed concurrently with the construction or reconstruction of electric company facilities when requested by a communications service provider.
(e) Rates, terms, and conditions for contributions to construction and for maintenance of communications facilities installed concurrently when companies are constructing or substantially reconstructing electric transmission or distribution lines or structures or gas transmission lines shall be based on the incremental cost of adding the communications facility to the project, as long as the communications facilities will provide service in the municipality in which they are located and surrounding municipalities.
(f) The company may negotiate rates, terms, and conditions of service that deviate from the statement of rates, terms, and conditions on file, but the company may not refuse a request to provide service in accordance with the rates, terms, and conditions on file. Section 229 of this title does not apply to deviations from the statement of rates, terms, and conditions, unless a company provides service pursuant to this chapter to an affiliate of the company that is not an electric or gas utility.
(g) Companies with facilities meeting the requirements of this section shall submit their statement of rates, terms, and conditions within 150 days of the date of the enactment of this legislation.
(h)(1) A company may limit wireline attachments on electric transmission structures exclusively carrying voltages of 110 kV or higher to fiber-optic facilities attached and maintained by the company, if the company allows communications service providers to use fiber-optic facilities installed and maintained by the company and offers to install such fiber-optic facilities on such electric transmission structures where there are not sufficient facilities for use by communications service providers. Rates, terms, and conditions for access to such company-attached and company-maintained facilities shall be made available consistent with the requirements of this section.
(2) Notwithstanding any law or rule to the contrary, a company may not enter into a contract with a communications service provider that provides exclusive access to its company-attached and company-maintained fiber-optic facilities by including terms that expressly prohibit any other communications service provider from leasing or purchasing unused strands of fiber. The terms and conditions of any contract entered into under this section shall include a provision specifying that, if a communications service provider leases fiber-optic capacity but fails to use that capacity within one year from the date the contract is entered into, the communications service provider shall report such nonuse to the Department of Public Service. The Commissioner of Public Service shall determine if such nonuse constitutes anticompetitive behavior that unreasonably precludes another communications service provider from leasing fiber-optic capacity. If the Commissioner determines that such nonuse constitutes anticompetitive behavior, he or she shall commence an investigation with the Public Utility Commission. The Commission is authorized to impose a remedy it deems appropriate under the circumstances. Such remedy may include termination of the lease with respect to the unused portion of the leased fiber-optic capacity.
(i) The Public Utility Commission may establish rules to implement this chapter. Such rules may include default rates, terms, and conditions to implement subsections (c) and (h) of this section. As part of the implementation of this chapter, the Commission shall establish rules to require, to the extent the Commission is not preempted, communications providers to extend their facilities as far as the Commission’s authority permits.
(j) A company having electric transmission or distribution structures carrying voltages of 110 kV or lower may not enter into a contract with a communications service provider that provides exclusive access to its company-attached and company-maintained fiber-optic facilities by including terms that expressly prohibit any other communications service provider from leasing or purchasing unused strands of fiber. The terms and conditions of any contract entered into under this section shall include a provision specifying that, if a communications service provider leases fiber-optic capacity but fails to use that capacity within one year from the date the contract is entered into, the communications service provider shall report such nonuse to the Department of Public Service. The Commissioner of Public Service shall determine if such nonuse constitutes anticompetitive behavior that unreasonably precludes another communications service provider from leasing fiber-optic capacity. If the Commissioner determines that such nonuse constitutes anticompetitive behavior, he or she shall commence an investigation with the Public Utility Commission. The Commission is authorized to impose a remedy it deems appropriate under the circumstances. Such remedy may include termination of the lease with respect to the unused portion of the leased fiber-optic capacity.
(Added 2007, No. 131 (Adj. Sess.), § 2; amended 2011, No. 53, § 10, eff. May 27, 2011.)
§ 8093 Notification
(a) For cases of gas transmission projects, and for projects involving electric transmission lines requiring approval pursuant to section 248 of this title, companies shall provide notice to the Vermont Telecommunications Authority at the same time that they provide notice pursuant to subdivision 248(a)(4)(C) of this title.
(b) In cases of projects involving electric transmission or distribution lines that do not require approval pursuant to section 248 of this title, and that are greater than 2,500 feet, companies under the jurisdiction of the Public Utility Commission shall notify the Vermont Telecommunications Authority of the project at least 90 days prior to planned commencement of construction for company-initiated projects, or as soon as possible for customer-initiated projects or projects required for urgent reasons of service quality or reliability.
(c) The notice shall include:
(1) the location of the project, including the town and a description of the route to be followed;
(2) the nature of the project;
(3) the date the project is planned to commence; and
(4) the contact person for the project and his or her contact information.
(d) For good cause shown by a company, the Public Utility Commission may shorten or eliminate the notice period required under this section.
(e) In the alternative to filing notice under subsection (b) of this section, a company may file with the Public Utility Commission, the Department of Public Service, and the Vermont Telecommunications Authority its capital plan or construction work plan, describing the location of linear projects that do not require approval pursuant to section 248 of this title, and in the case of a multiyear plan, the year in which a linear project is scheduled to commence. No construction called for under the capital plan or construction work plan shall commence until the plan has been on file for at least 90 days, unless the construction is required for customer-initiated projects or for urgent reasons of service quality or reliability.
(f) A company may specify in its statement of rates, terms, and conditions a deadline or procedure for requests to attach or add communications facilities to a project. Unless otherwise specified by the company in its statement of rates, terms, and conditions, a company shall provide a period for responses of not less than either 45 days after notice is provided, if the company provides notice pursuant to subsection (b) of this section, or 45 days before the planned construction commences, if the company provides notice pursuant to subsection (e) of this section. If a company does not receive a response by the deadline or according to the procedure established for responding to the notice required by this section, it may commence construction of a project prior to the end of the notice period required under subsection (b) or (e) of this section.
(Added 2007, No. 131 (Adj. Sess.), § 2.)
§ 8094 Evaluation of commercial wireless networks
(a) No company subject to Public Utility Commission jurisdiction and providing electric service shall begin construction of a two-way point-to-multipoint mobile wireless communication network for the purpose of communication between its facilities for its own personnel unless:
(1) the company has solicited proposals from commercial wireless service providers; and
(2) for solicitations issued after July 1, 2008, the company has provided notice prior to the solicitation to the Vermont Telecommunications Authority and to the Commissioner of Public Service and the Director for Public Advocacy.
(b) Nothing in this section shall be construed to authorize or disallow the costs of such a network for the purpose of a rate proceeding for the company.
(Added 2007, No. 131 (Adj. Sess.), § 2.)
§ 8095 Limitation
Nothing in this chapter limits the existing rights and obligations of entities currently authorized to attach to poles and other facilities pursuant to Commission Rule 3.700.
(Added 2007, No. 131 (Adj. Sess.), § 2.)
§ 8096 Legislative intent
The General Assembly intends that this chapter will result in improved and increased access to mobile telecommunications and broadband services for all underserved Vermont households and businesses.
(Added 2007, No. 131 (Adj. Sess.), § 2.)
Chapter 93 Vermont Village Green Pilot Program
§ 8100 Definitions
In this chapter:
(1) “Commission” means the Public Utility Commission created under section 3 of this title.
(2) “Certification” or “certified,” except when part of the phrase “third party certified,” refers to certification of a Vermont village green renewable project by the Department under subsection 8101(b) of this title.
(3) “Combined heat and power” or “CHP” shall have the meaning stated in section 8015(b) of this title, except that:
(A) CHP excludes facilities using fossil fuel.
(B) CHP using woody biomass as a fuel must achieve, for that fuel, no less than a 50-percent net annual efficiency of energy utilized and, during the heating season, a minimum energy conversion efficiency of 70 percent considering all energy inputs and outputs at normal load.
(4) “Department” means the Department of Public Service created under section 1 of this title.
(5) “District heating” means a system for distributing heat generated in a centralized location within a host community to multiple residential, commercial, or industrial uses within that community or a combination of such uses. The source of heat may be a dedicated heat-only facility using renewable energy as a fuel or waste heat from electrical generation that uses renewable energy as a fuel to form a CHP system.
(6) “District power” means a system for distributing electricity generated in a centralized location within a host community to multiple residential, commercial, or industrial uses in that community or a combination of such uses. The electricity must be produced using renewable energy as a fuel source and may include CHP.
(7) “Host community” means the municipality in which a Vermont village green renewable project is to be located.
(8) “Renewable energy” shall have the meaning stated in subsection 8015(b) of this title, except that renewable energy using woody biomass as a fuel must achieve, for that fuel, no less than a 50-percent net annual efficiency of energy utilized and, during the heating season, a minimum energy conversion efficiency of 70 percent considering all energy inputs and outputs at normal load.
(9) “Vermont village green renewable project” means district heating, either with or without district power, to serve a downtown development district designated as such pursuant to 24 V.S.A. § 2793 or a growth center designated as such pursuant to 24 V.S.A. § 2793c. As long as the end uses served by the project are within such a district or center, the generation of heat and power may be outside the district or center.
(Added 2009, No. 45, § 15a, eff. May 27, 2009; 2009, No. 54, § 67, eff. June 1, 2009.)
§ 8101 Pilot Program; certification
(a) The Vermont Village Green Renewable Pilot Program is created to consist of no more than two Vermont village green renewable projects, one each in the City of Montpelier and in the Town of Randolph. Another municipality may seek certification under this chapter in the event either the City of Montpelier or the Town of Randolph, or both, decline to seek or are denied certification.
(b) On application of a host community, the Department may certify a Vermont village green renewable project under this chapter on finding each of the following:
(1) The host community proposes a Vermont village green renewable project.
(2) The host community has submitted an application to the Commission that includes each of the following:
(A) A description and map of the proposed Vermont village green renewable project, showing its location within the host community.
(B) A complete description of the existing industrial, commercial, or residential uses to be served by the Vermont village green renewable project; of how the project will serve those uses; and of the billing, payment, and customer service arrangements.
(C) A letter submitted by the host community in support of the application and, if the host community has a town plan, the letter shall confirm that the proposed project is consistent with that plan.
(D) A letter issued by the appropriate regional planning commission indicating that the regional impacts of the proposed project and selected site have been considered and that the project conforms with the applicable regional plan.
(E) A letter from the Vermont Downtown Development Board, as described under 24 V.S.A. § 2792, that the Development Board has been notified of the Vermont village green renewable project.
(3) The Vermont village green renewable project is consistent with the purposes of the Clean Energy Development Fund as established in section 8015 of this title.
(4) The host community will invest in the Vermont village green renewable project the incentive created under section 8102 of this title and has provided a plan that demonstrates that such investment will be made.
(5) The Vermont village green renewable project, if it uses woody biomass as a fuel, will use procurement standards, management practices, and a supply chain that are third party certified using a performance-based audit.
(6) The Vermont village green renewable project will comply with all applicable national ambient air quality standards and air pollution control rules of the Agency of Natural Resources. If, during 2009, the U.S. Environmental Protection Agency proposes updated emissions standards applicable to wood-fueled boilers to be used in connection with the project, the project shall comply with the proposed standards.
(7) The Vermont village green renewable project meets all applicable requirements of this chapter.
(c) Notwithstanding any other provision of law, certification under this section shall not be subject to the provisions of 3 V.S.A. chapter 25 and shall not be subject to appeal.
(d) A host community does not need to obtain certification unless it seeks its Vermont village green renewable project to be eligible for incentives under section 8102 of this title or rates for electricity as provided under subsection 8104(b) of this title. Certification shall not be required to qualify for net metering under section 219a of this title.
(Added 2009, No. 45, § 15a, eff. May 27, 2009; 2009, No. 54, § 67, eff. June 1, 2009; amended 2023, No. 85 (Adj. Sess.), § 459, eff. July 1, 2024.)
§ 8102 Incentives
(a) The Clean Energy Development Fund created under section 8015 of this title shall provide at least $100,000.00 in incentives to customers who will connect to a certified Vermont village green renewable project. Any such incentive shall be applied by the customer to the cost of constructing the customer’s connection to the project.
(b) Notwithstanding the provisions of subsection (a) of this section or any other law, on and after April 1, 2012, the Clean Energy Development Fund shall make up to $100,000.00 of funds that would otherwise have been available to customers connecting to Vermont village green renewable projects under this section available to other district heating on a competitive basis. The use of such funds shall not be limited to customer connections. For the purpose of this subsection, it shall not be necessary that the district heating be proposed by a municipality, serve a downtown development district or growth center under 24 V.S.A. § 2793 or 2793c, or obtain certification under this chapter.
(Added 2009, No. 45, § 15a, eff. May 27, 2009; amended 2009, No. 54, § 67, eff. June 1, 2009; 2011, No. 155 (Adj. Sess.), § 22, eff. May 16, 2012.)
§ 8103 Heat availability
All of the heat generated by a Vermont village green renewable project shall be made available to the commercial, industrial, and residential users identified in the host community’s application to the Commission under subsection 8101(b) of this title.
(Added 2009, No. 45, § 15a, eff. May 27, 2009; 2009, No. 54, § 67, eff. June 1, 2009.)
§ 8104 Rates for electricity
(a) All or a portion of the electricity generated by a Vermont village green renewable project, if it includes district power, shall be made available to the commercial, industrial, and residential users identified in the host community’s application to the Commission under subsection 8101(b) of this title.
(b) If a Vermont village green renewable project includes district power and does not qualify or opt for treatment as a net metering system under section 8010 of this title:
(1) On petition of the host community, the Commission after notice and opportunity for hearing shall create a rate class for the commercial, industrial, and residential uses served by the project, the rates for which class at a minimum shall be consistent with the following principle: An end user shall pay the same share of the distribution utility’s fixed costs as a similar end user not served by the project.
(2) Excess electricity may be sold to the distribution utility at the market rate or by contract.
(Added 2009, No. 45, § 15a, eff. May 27, 2009; amended 2009, No. 54, § 67, eff. June 1, 2009; 2013, No. 99 (Adj. Sess.), § 7, eff. Jan. 1, 2017.)
§ 8105 Repealed
[Repealed]
2019, No. 31, § 3.
Chapter 94 Clean Heat Standard
§ 8121 Intent
Pursuant to 2 V.S.A. § 205(a), it is the intent of the General Assembly that the Clean Heat Standard be designed and implemented in a manner that achieves Vermont’s thermal sector greenhouse gas emissions reductions necessary to meet the requirements of 10 V.S.A. § 578(a)(2) and (3), minimizes costs to customers, protects public health, and recognizes that affordable heating is essential for Vermonters. It shall enhance social equity by prioritizing customers with low income and moderate income and those households with the highest energy burdens. The Clean Heat Standard shall, to the greatest extent possible, maximize the use of available federal funds to deliver clean heat measures.
(Added 2023, No. 18, § 3, eff. May 12, 2023.)
§ 8122 Clean Heat Standard
(a) The Clean Heat Standard is established. Under this program, obligated parties shall reduce greenhouse gas emissions attributable to the Vermont thermal sector by retiring required amounts of clean heat credits to meet the thermal sector portion of the greenhouse gas emission reduction obligations of the Global Warming Solutions Act.
(b) By rule or order, the Commission shall establish or adopt a system of tradeable clean heat credits earned from the delivery of clean heat measures that reduce greenhouse gas emissions.
(c) An obligated party shall obtain the required amount of clean heat credits through delivery of eligible clean heat measures by a default delivery agent, unless the obligated party receives prior approval from the Commission to use another method as described in section 8125 of this title.
(d) The Commission shall adopt rules and may issue orders to implement and enforce the Clean Heat Standard program.
(Added 2023, No. 18, § 3, eff. May 12, 2023.)
§ 8123 Definitions
As used in this chapter:
(1) “Carbon intensity value” means the amount of lifecycle greenhouse gas emissions per unit of energy of fuel expressed in grams of carbon dioxide equivalent per megajoule (gCO2e/MJ).
(2) “Clean heat credit” means a tradeable, nontangible commodity that represents the amount of greenhouse gas reduction attributable to a clean heat measure. The Commission shall establish a system of management for clean heat credits pursuant to this chapter.
(3) “Clean heat measure” means fuel delivered and technologies installed to end-use customers in Vermont that reduce greenhouse gas emissions from the thermal sector. Clean heat measures shall not include switching from one fossil fuel use to another fossil fuel use. The Commission may adopt a list of acceptable actions that qualify as clean heat measures.
(4) “Commission” means the Public Utility Commission.
(5) “Customer with low income” means a customer with a household income of up to 60 percent of the area or statewide median income, whichever is greater, as published annually by the U.S. Department of Housing and Urban Development or a customer who qualifies for a government-sponsored, low-income energy subsidy.
(6) “Customer with moderate income” means a customer with a household income between 60 percent and 120 percent of the area or statewide median income, whichever is greater, as published annually by the U.S. Department of Housing and Urban Development.
(7) “Default delivery agent” means an entity designated by the Commission to provide services that generate clean heat measures.
(8) “Energy burden” means the annual spending on thermal energy as a percentage of household income.
(9) “Entity” means any individual, trustee, agency, partnership, association, corporation, company, municipality, political subdivision, or any other form of organization.
(10) “Fuel pathway” means a detailed description of all stages of fuel production and use for any particular fuel, including feedstock generation or extraction, production, transportation, distribution, and combustion of the fuel by the consumer. The fuel pathway is used in the calculation of the carbon intensity value and lifecycle greenhouse gas emissions of each fuel.
(11) “Heating fuel” means fossil-based heating fuel, including oil, propane, natural gas, coal, and kerosene.
(12) “Obligated party” means:
(A) A regulated natural gas utility serving customers in Vermont.
(B) For other heating fuels, the entity that imports heating fuel for ultimate consumption within the State, or the entity that produces, refines, manufactures, or compounds heating fuel within the State for ultimate consumption within the State. For the purpose of this section, the entity that imports heating fuel is the entity that has ownership title to the heating fuel at the time it is brought into Vermont.
(13) “Thermal sector” has the same meaning as the “Residential, Commercial and Industrial Fuel Use” sector as used in the Vermont Greenhouse Gas Emissions Inventory and Forecast and does not include nonroad diesel or any other transportation or other fuel use categorized elsewhere in the Vermont Greenhouse Gas Emissions Inventory and Forecast.
(Added 2023, No. 18, § 3, eff. May 12, 2023.)
§ 8124 Clean Heat Standard compliance
(a) Required amounts.
(1) The Commission shall establish the number of clean heat credits that each obligated party is required to retire each calendar year. The size of the annual requirement shall be set at a pace sufficient for Vermont’s thermal sector to achieve lifecycle carbon dioxide equivalent (CO2e) emission reductions consistent with the requirements of 10 V.S.A. § 578(a)(2) and (3) expressed as lifecycle greenhouse gas emissions pursuant to subsection 8127(g) of this title.
(2) Annual requirements shall be expressed as a percent of each obligated party’s contribution to the thermal sector’s lifecycle CO2e emissions in the previous year. The annual percentage reduction shall be the same for all obligated parties. To ensure understanding among obligated parties, the Commission shall publicly provide a description of the annual requirements in plain terms.
(3) To support the ability of the obligated parties to plan for the future, the Commission shall establish and update annual clean heat credit requirements for the next 10 years. Every three years, the Commission shall extend the requirements three years; shall assess emission reductions actually achieved in the thermal sector; and, if necessary, revise the pace of clean heat credit requirements for future years to ensure that the thermal sector portion of the emission reduction requirements of 10 V.S.A. § 578(a)(2) and (3) for 2030 and 2050 will be achieved.
(4) The Commission may temporarily, for a period not to exceed 36 months, adjust the annual requirements for good cause after notice and opportunity for public process. Good cause may include a shortage of clean heat credits, market conditions as identified by the Department’s potential study conducted pursuant to section 8125 of this title, or undue adverse financial impacts on particular customers or demographic segments. The Commission shall ensure that any downward adjustment has the minimum impact possible on the State’s ability to comply with the thermal sector portion of the requirements of 10 V.S.A. § 578(a)(2) and (3).
(b) Annual registration.
(1) Each entity that sells heating fuel into or in Vermont shall register annually with the Commission by an annual deadline established by the Commission. The first registration deadline is January 31, 2024, and the annual deadline shall be June 30 of each year after. The form and information required in the registration shall be determined by the Commission and shall include all data necessary to establish annual requirements under this chapter. The Commission shall use the information provided in the registration to determine whether the entity shall be considered an obligated party and the amount of its annual requirement.
(2) At a minimum, the Commission shall require registration information to include legal name; doing business as name, if applicable; municipality; state; types of heating fuel sold; and the exact amount of gallons of each type of heating fuels sold into or in the State for final sale or consumption in the State in the calendar year immediately preceding the calendar year in which the entity is registering with the Commission, separated by type, that was purchased by the submitting entity and the name and location of the entity from which it was purchased.
(3) Each year, and not later than 30 days following the annual registration deadline established by the Commission, the Commission shall share complete registration information of obligated parties with the Agency of Natural Resources and the Department of Public Service for purposes of updating the Vermont Greenhouse Gas Emissions Inventory and Forecast and meeting the requirements of 10 V.S.A. § 591(b)(3).
(4) The Commission shall maintain, and update annually, a list of registered entities on its website.
(5) For any entity not registered on or before January 31, 2024, the first registration form shall be due 30 days after the first sale of heating fuel to a location in Vermont.
(6) Clean heat requirements shall transfer to entities that acquire an obligated party.
(7) Entities that cease to operate shall retain their clean heat requirement for their final year of operation.
(c) Early action credits. Beginning on January 1, 2023, clean heat measures that are installed and provide emission reductions are creditable. Upon the establishment of the clean heat credit system, entities may register credits for actions taken starting in 2023.
(d) Equitable distribution of clean heat measures.
(1) The Clean Heat Standard shall be designed and implemented to enhance social equity by prioritizing customers with low income, moderate income, those households with the highest energy burdens, residents of manufactured homes, and renter households with tenant-paid energy bills. The design shall ensure all customers have an equitable opportunity to participate in, and benefit from, clean heat measures regardless of heating fuel used, income level, geographic location, residential building type, or homeownership status.
(2) Of their annual requirement, each obligated party shall retire at least 16 percent from customers with low income and an additional 16 percent from customers with low or moderate income. For each of these groups, at least one-half of these credits shall be from installed clean heat measures that require capital investments in homes, have measure lives of 10 years or more, and are estimated by the Technical Advisory Group to lower annual energy bills. Examples shall include weatherization improvements and installation of heat pumps, heat pump water heaters, and advanced wood heating systems. The Commission may identify additional measures that qualify as installed measures.
(3) The Commission shall, to the extent reasonably possible, frontload the credit requirements for customers with low income and moderate income so that the greatest proportion of clean heat measures reach Vermonters with low income and moderate income in the earlier years.
(4) With consideration to how to best serve customers with low income and moderate income, the Commission shall have authority to change the percentages established in subdivision (2) of this subsection for good cause after notice and opportunity for public process. Good cause may include a shortage of clean heat credits or undue adverse financial impacts on particular customers or demographic segments.
(5) In determining whether to exceed the minimum percentages of clean heat measures that must be delivered to customers with low income and moderate income, the Commission shall take into account participation in other government-sponsored low-income and moderate-income weatherization programs. Participation in other government-sponsored low-income and moderate-income weatherization programs shall not limit the ability of those households to participate in programs under this chapter.
(6) A clean heat measure delivered to a customer qualifying for a government-sponsored, low-income energy subsidy shall qualify for clean heat credits required by subdivision (2) of this subsection.
(7) Customer income data collected shall be kept confidential by the Commission, the Department of Public Service, the obligated parties, and any entity that delivers clean heat measures.
(e) Credit banking. The Commission shall allow an obligated party that has met its annual requirement in a given year to retain clean heat credits in excess of that amount for future sale or application to the obligated party’s annual requirements in future compliance periods, as determined by the Commission.
(f) Enforcement.
(1) The Commission shall have the authority to enforce the requirements of this chapter and any rules or orders adopted to implement the provisions of this chapter. The Commission may use its existing authority under this title. As part of an enforcement order, the Commission may order penalties and injunctive relief.
(2) The Commission shall order an obligated party that fails to retire the number of clean heat credits required in a given year, including the required amounts from customers with low income and moderate income, to make a noncompliance payment to the default delivery agent for the number of credits deficient. The per-credit amount of the noncompliance payment shall be two times the amount established by the Commission for timely per-credit payments to the default delivery agent.
(3) However, the Commission may waive the noncompliance payment required by subdivision (2) of this subsection for an obligated party if the Commission:
(A) finds that the obligated party made a good faith effort to acquire the required amount and its failure resulted from market factors beyond its control; and
(B) directs the obligated party to add the number of credits deficient to one or more future years.
(4) False or misleading statements or other representations made to the Commission by obligated parties related to compliance with the Clean Heat Standard are subject to the Commission’s enforcement authority, including the power to investigate and assess penalties, under this title.
(5) The Commission’s enforcement authority does not in any way impede the enforcement authority of other entities such as the Attorney General’s office.
(6) Failure to register with the Commission as required by this section is a violation of the Consumer Protection Act in 9 V.S.A. chapter 63.
(g) Records. The Commission shall establish requirements for the types of records to be submitted by obligated parties, a record retention schedule for required records, and a process for verification of records and data submitted in compliance with the requirements of this chapter.
(h) Reports.
(1) As used in this subsection, “standing committees” means the House Committee on Environment and Energy and the Senate Committees on Finance and on Natural Resources and Energy.
(2) After the adoption of the rules implementing this chapter, the Commission shall submit a written report to the standing committees detailing the efforts undertaken to establish the Clean Heat Standard pursuant to this chapter.
(3) On or before January 15 of each year following the year in which the rules are first adopted under this chapter, the Commission shall submit to the standing committees a written report detailing the implementation and operation of the Clean Heat Standard. This report shall include an assessment on the equitable adoption of clean heat measures required by subsection (d) of this section, along with recommendations to increase participation for the households with the highest energy burdens. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.
(i) LIHEAP pricing. The Margin Over Rack pricing program for fuel assistance shall reflect the default delivery agent credit cost established by the Commission.
(Added 2023, No. 18, § 3, eff. May 12, 2023; amended 2023, No. 142 (Adj. Sess.), § 8, eff. May 30, 2024.)
§ 8125 Default delivery agent
(a) Default delivery agent designated. In place of obligated-party specific programs, the Commission shall provide for the development and implementation of statewide clean heat programs and measures by one or more default delivery agents appointed by the Commission for these purposes. The Commission may specify that appointment of a default delivery agent to deliver clean heat services, on behalf of obligated entities who pay the per-credit fee to the default delivery agent, satisfies those entities’ corresponding obligations under this chapter.
(b) Appointment. The default delivery agent shall be one or more statewide entities capable of providing a variety of clean heat measures. The designation of an entity under this subsection may be by order of appointment or contract. A designation, whether by order of appointment or by contract, may only be issued after notice and opportunity for hearing. An existing order of appointment issued by the Commission under section 209 of this title may be amended to include the responsibilities of the default delivery agent. An order of appointment shall be for a limited duration not to exceed 12 years, although an entity may be reappointed by order or contract. An order of appointment may include any conditions and requirements that the Commission deems appropriate to promote the public good. For good cause, after notice and opportunity for hearing, the Commission may amend or revoke an order of appointment.
(c) Supervision. Any entity appointed by order of appointment under this section that is not an electric or gas utility already regulated under this title shall not be considered to be a company as defined under section 201 of this title but shall be subject to the provisions of sections 18–21, 30–32, 205–208; subsection 209(a); sections 219 and 221; and subsection 231(b) of this title, to the same extent as a company as defined under section 201 of this title. The Commission and the Department of Public Service shall have jurisdiction under those sections over the entity, its directors, receivers, trustees, lessees, or other persons or companies owning or operating the entity and of all plants, equipment, and property of that entity used in or about the business carried on by it in this State as covered and included in this section. This jurisdiction shall be exercised by the Commission and the Department so far as may be necessary to enable them to perform the duties and exercise the powers conferred upon them by law. The Commission and the Department each may, when they deem the public good requires, examine the plants, equipment, and property of any entity appointed by order of appointment to serve as a default delivery agent.
(d) Use of default delivery agent.
(1) An obligated party shall meet its annual requirement through a designated default delivery agent appointed by the Commission. However, the obligated party may seek to meet its requirement, in whole or in part, through one or more of the following ways: by delivering eligible clean heat measures, by contracting for delivery of eligible clean heat measures, or through the market purchase of clean heat credits. An obligated party shall be approved by the Commission to meet its annual requirement using a method other than the default delivery agent if it provides sufficient details on the party’s capacity and resources to achieve the emissions reductions. This approval shall not be unreasonably withheld.
(2) The Commission shall provide a form for an obligated party to indicate how it intends to meet its requirement. The form shall require sufficient information to determine the nature of the credits that the default delivery agent will be responsible to deliver on behalf of the obligated party. If the Commission approves of a plan for an obligated party to meet its obligation through a mechanism other than payment to a designated default delivery agent, then the Commission shall make such approvals known to the default delivery agent as soon as practicable.
(3) The Commission shall by rule or order establish a standard timeline under which the default delivery agent credit cost or costs are established and by which an obligated party must file its form. The default delivery agent’s schedule of costs shall include sufficient costs to deliver installed measures and shall specify separately the costs to deliver measures to customers with low income and customers with moderate income as required by subsection 8124(d) of this title. The Commission shall provide not less than 90 days’ notice of default delivery agent credit cost or costs prior to the deadline for an obligated party to file its election form so an obligated party can assess options and inform the Commission of its intent to procure credits in whole or in part as fulfillment of its requirement.
(4) The default delivery agent shall deliver creditable clean heat measures either directly or indirectly to end-use customer locations in Vermont sufficient to meet the total aggregated annual requirement assigned to it, along with any additional amount achievable through noncompliance payments as described in subdivision 8124(f)(2) of this title. Clean heat credits generated through installed measures delivered by the default delivery agent on behalf of an obligated party are creditable in future years. Those credits not required to meet the obligated party’s existing obligations shall be owned by the obligated party.
(e) Budget.
(1) The Commission shall open a proceeding on or before July 1, 2023 and at least every three years thereafter to establish the default delivery agent credit cost or costs and the quantity of credits to be generated for the subsequent three-year period. That proceeding shall include:
(A) a potential study conducted by the Department of Public Service, the first of which shall be completed not later than September 1, 2024, to include an assessment and quantification of technically available, maximum achievable, and program achievable thermal resources. The results shall include a comparison to the legal obligations of the thermal sector portion of the requirements of 10 V.S.A. § 578(a)(2) and (3). The potential study shall consider and evaluate market conditions for delivery of clean heat measures within the State, including an assessment of workforce characteristics capable of meeting consumer demand and meeting the obligations of 10 V.S.A. § 578(a)(2) and (3);
(B) the development of a three-year plan and associated proposed budget by the default delivery agent to be informed by the final results of the Department’s potential study. The default delivery agent may propose a portion of its budget towards promotion and market uplift, workforce development, and trainings for clean heat measures. The Commission shall approve the first three-year plan and associated budget by no later than September 1, 2025; and
(C) opportunity for public participation.
(2) Once the Commission provides the default delivery agent with the obligated parties’ plan to meet the requirements, the default delivery agent shall be granted the opportunity to amend its plan and budget before the Commission.
(f) Compliance funds. All funds received from noncompliance payments pursuant to subdivision 8124(f)(2) of this title shall be used by the default delivery agent to provide clean heat measures to customers with low income.
(g) Specific programs. The default delivery agent shall create specific programs for multiunit dwellings, condominiums, rental properties, commercial and industrial buildings, and manufactured homes.
(Added 2023, No. 18, § 3, eff. May 12, 2023; amended 2023, No. 142 (Adj. Sess.), § 9, eff. May 30, 2024.)
§ 8126 Rulemaking
(a) The Commission shall adopt rules and may issue orders to implement and enforce the Clean Heat Standard program.
(b) The requirements to adopt rules and any requirements regarding the need for legislative approval before any part of the Clean Heat Standard goes into effect do not in any way impair the Commission’s authority to issue orders or take any other actions, both before and after final rules take effect, to implement and enforce the Clean Heat Standard.
(c) The Commission’s rules may include a provision that allows the Commission to revise its Clean Heat Standard rules by order of the Commission without the revisions being subject to the rulemaking requirements of 3 V.S.A. chapter 25, provided the Commission:
(1) provides notice of any proposed changes;
(2) allows for a 30-day comment period;
(3) responds to all comments received on the proposed change;
(4) provides a notice of language assistance services on all public outreach materials; and
(5) arranges for language assistance to be provided to members of the public as requested using professional language services companies.
(d) Any order issued under subsection (c) of this section shall be subject to appeal to the Vermont Supreme Court under section 12 of this title, and the Commission must immediately file any orders, a redline, and clean version of the revised rules with the Secretary of State, with notice simultaneously provided to the House Committee on Environment and Energy and the Senate Committees on Finance and on Natural Resources and Energy.
(Added 2023, No. 18, § 3, eff. May 12, 2023; amended 2023, No. 142 (Adj. Sess.), § 10, eff. May 30, 2024.)
§ 8127 Tradeable clean heat credits
(a) Credits established. By rule or order, the Commission shall establish or adopt a system of tradeable clean heat credits that are earned by reducing greenhouse gas emissions through the delivery of clean heat measures. While credit denominations may be in simple terms for public understanding and ease of use, the underlying value shall be based on units of carbon dioxide equivalent (CO2e). The system shall provide a process for the recognition, approval, and monitoring of the clean heat credits. The Department of Public Service shall perform the verification of clean heat credit claims and submit results of the verification and evaluation to the Commission annually.
(b) Credit ownership. The Commission, in consultation with the Technical Advisory Group, shall establish a standard methodology for determining what party or parties shall be the owner of a clean heat credit upon its creation. The owner or owners may transfer those credits to a third party or to an obligated party.
(c) Credit values. Clean heat credits shall be based on the accurate and verifiable lifecycle CO2e emission reductions in Vermont’s thermal sector that result from the delivery of eligible clean heat measures to existing or new end-use customer locations into or in Vermont.
(1) For clean heat measures that are installed, credits will be created for each year of the expected life of the installed measure. The annual value of the clean heat credits for installed measures in each year shall be equal to the lifecycle CO2e emissions of the fuel use that is avoided in a given year because of the installation of the measure, minus the lifecycle emissions of the fuel that is used instead in that year.
(2) For clean heat measures that are fuels, clean heat credits will be created only for the year the fuel is delivered to the end-use customer. The value of the clean heat credits for fuels shall be the lifecycle CO2e emissions of the fuel use that is avoided, minus the lifecycle CO2e emissions of the fuel that is used instead.
(d) List of eligible measures. Eligible clean heat measures delivered to or installed in residential, commercial, and industrial buildings in Vermont shall include:
(1) thermal energy efficiency improvements and weatherization;
(2) cold-climate air, ground source, and other heat pumps, including district, network, grid, microgrid, and building geothermal systems;
(3) heat pump water heaters;
(4) utility-controlled electric water heaters;
(5) solar hot water systems;
(6) electric appliances providing thermal end uses;
(7) advanced wood heating;
(8) noncombustion or renewable energy-based district heating services;
(9) the supply of sustainably sourced biofuels;
(10) the supply of green hydrogen;
(11) the replacement of a manufactured home with a high efficiency manufactured home and weatherization or other efficiency or electrification measures in manufactured homes; and
(12) line extensions that connect facilities with thermal loads to the grid.
(e) Renewable natural gas. For pipeline renewable natural gas and other renewably generated natural gas substitutes to be eligible, an obligated party shall purchase renewable natural gas and its associated renewable attributes and demonstrate that it has secured a contractual pathway for the physical delivery of the gas from the point of injection into the pipeline to the obligated party’s delivery system.
(f) Carbon intensity of fuels.
(1) To be eligible as a clean heat measure, a liquid or gaseous clean heat measure shall have a carbon intensity value as follows:
(A) below 80 in 2025;
(B) below 60 in 2030; and
(C) below 20 in 2050, provided the Commission may allow liquid and gaseous clean heat measures with a carbon intensity value greater than 20 if excluding them would be impracticable based on the characteristics of Vermont’s buildings, the workforce available in Vermont to deliver lower carbon intensity clean heat measures, cost, or the effective administration of the Clean Heat Standard.
(2) The Commission shall establish and publish the rate at which carbon intensity values shall decrease annually for liquid and gaseous clean heat measures consistent with subdivision (1) of this subsection as follows:
(A) on or before January 1, 2025 for 2025 to 2030; and
(B) on or before January 1, 2030 for 2031 to 2050.
(3) For the purpose of this section, the carbon intensity values shall be understood relative to No. 2 fuel oil delivered into or in Vermont in 2023 having a carbon intensity value of 100. Carbon intensity values shall be measured based on fuel pathways.
(g) Emissions schedule.
(1) To promote certainty for obligated parties and clean heat providers, the Commission shall, by rule or order, establish a schedule of lifecycle emission rates for heating fuels and any fuel that is used in a clean heat measure, including electricity, or is itself a clean heat measure, including biofuels. The schedule shall be based on transparent, verifiable, and accurate emissions accounting adapting the Argonne National Laboratory GREET Model, Intergovernmental Panel on Climate Change (IPCC) modeling, or an alternative of comparable analytical rigor to fit the Vermont thermal sector context, and the requirements of 10 V.S.A. § 578(a)(2) and (3).
(2) For each fuel pathway, the schedule shall account for greenhouse gas emissions from biogenic and geologic sources, including fugitive emissions and loss of stored carbon. In determining the baseline emission rates for clean heat measures that are fuels, emissions baselines shall fully account for methane emissions reductions or captures already occurring, or expected to occur, for each fuel pathway as a result of local, State, or federal legal requirements that have been enacted or adopted that reduce greenhouse gas emissions.
(3) The schedule may be amended based upon changes in technology or evidence on emissions, but clean heat credits previously awarded or already under contract to be produced shall not be adjusted retroactively.
(h) Review of consequences. The Commission shall biennially assess harmful consequences that may arise in Vermont or elsewhere from the implementation of specific types of clean heat measures and shall set standards or limits to prevent those consequences. Such consequences shall include environmental burdens as defined in 3 V.S.A. § 6002, public health, deforestation or forest degradation, conversion of grasslands, increased emissions of criteria pollutants, damage to watersheds, or the creation of new methane to meet fuel demand.
(i) Time stamp. Clean heat credits shall be “time stamped” for the year in which the clean heat measure delivered emission reductions. For each subsequent year during which the measure produces emission reductions, credits shall be generated for that year. Only clean heat credits that have not been retired shall be eligible to satisfy the current year obligation.
(j) Delivery in Vermont. Clean heat credits shall be earned only in proportion to the deemed or measured thermal sector greenhouse gas emission reductions achieved by a clean heat measure delivered in Vermont. Other emissions offsets, wherever located, shall not be eligible measures.
(k) Credit eligibility.
(1) All eligible clean heat measures that are delivered in Vermont beginning on January 1, 2023 shall be eligible for clean heat credits and may be retired and count towards an obligated party’s emission reduction obligations, regardless of who creates or delivers them and regardless of whether their creation or delivery was required or funded in whole or in part by other federal or State policies and programs. This includes individual initiatives, emission reductions resulting from the State’s energy efficiency programs, the low-income weatherization program, and the Renewable Energy Standard Tier 3 program. Clean heat measures delivered or installed pursuant to any local, State, or federal program or policy may count both towards goals or requirements of such programs and policies and be eligible clean heat measures that count towards the emission reduction obligations of this chapter.
(2) The owner or owners of a clean heat credit are not required to sell the credit.
(3) Regardless of the programs or pathways contributing to clean heat credits being earned, an individual credit may be counted only once towards satisfying an obligated party’s emission reduction obligation.
(l) Credit registration.
(1) The Commission shall create an administrative system to register, sell, transfer, and trade credits to obligated parties. The Commission may hire a third-party consultant to evaluate, develop, implement, maintain, and support a database or other means for tracking clean heat credits and compliance with the annual requirements of obligated parties.
(2) The system shall require entities to submit the following information to receive the credit: the location of the clean heat measure, whether the customer or tenant has a low or moderate income, the type of property where the clean heat measure was installed or sold, the type of clean heat measure, and any other information as required by the Commission. Customer income data collected shall be kept confidential by the Commission, the Department of Public Service, the obligated parties, and any entity that delivers clean heat measures.
(m) Greenhouse Gas Emissions Inventory and Forecast. Nothing in this chapter shall limit the authority of the Secretary of Natural Resources to compile and publish the Vermont Greenhouse Gas Emissions Inventory and Forecast in accordance with 10 V.S.A. § 582.
(Added 2023, No. 18, § 3, eff. May 12, 2023.)
§ 8128 Clean Heat Standard Technical Advisory Group
(a) The Commission shall establish the Clean Heat Standard Technical Advisory Group (TAG) to assist the Commission in the ongoing management of the Clean Heat Standard. Its duties shall include:
(1) establishing and revising the lifecycle carbon dioxide equivalent (CO2e) emissions accounting methodology to be used to determine each obligated party’s annual requirement pursuant to subdivision 8124(a)(2) of this chapter;
(2) establishing and revising the clean heat credit value for different clean heat measures;
(3) periodically assessing and reporting to the Commission on the sustainability of the production of clean heat measures by considering factors including greenhouse gas emissions; carbon sequestration and storage; human health impacts; land use changes; ecological and biodiversity impacts; groundwater and surface water impacts; air, water, and soil pollution; and impacts on food costs;
(4) setting the expected life length of clean heat measures for the purpose of calculating credit amounts;
(5) establishing credit values for each year over a clean heat measure’s expected life, including adjustments to account for increasing interactions between clean heat measures over time so as to not double-count emission reductions;
(6) facilitating the program’s coordination with other energy programs;
(7) calculating the impact of the cost of clean heat credits and the cost savings associated with delivered clean heat measures on per-unit heating fuel prices;
(8) calculating the savings associated with public health benefits due to clean heat measures;
(9) coordinating with the Agency of Natural Resources to ensure that greenhouse gas emissions reductions achieved in another sector through the implementation of the Clean Heat Standard are not double-counted in the Vermont Greenhouse Gas Emissions Inventory and Forecast;
(10) advising the Commission on the periodic assessment and revision requirement established in subdivision 8124(a)(3) of this chapter; and
(11) any other matters referred to the TAG by the Commission.
(b) The Clean Heat Standard Technical Advisory Group shall consist of up to 15 members appointed by the Commission. The Commission shall establish the procedure for the TAG, including member term lengths and meeting procedures. Members of the TAG shall be appointed by the Commission and shall include the Department of Public Service, the Agency of Natural Resources, the Department of Health, and parties who have, or whose representatives have, expertise in one or more of the following areas: technical and analytical expertise in measuring lifecycle greenhouse gas emissions, energy modeling and data analysis, clean heat measures and energy technologies, sustainability and non-greenhouse gas emissions strategies designed to reduce and avoid impacts to the environment, mitigating environmental burdens as defined in 3 V.S.A. § 6002, public health impacts of air quality and climate change, delivery of heating fuels, land use changes, deforestation and forest degradation, and climate change mitigation policy and law. The Commission shall accept and review motions to join the TAG from interested parties who have, or whose representatives have, expertise in one or more of the areas listed in this subsection. Members who are not otherwise compensated by their employer shall be entitled to per diem compensation and reimbursement for expenses under 32 V.S.A. § 1010.
(c) The Commission shall hire a third-party consultant responsible for developing clean heat measure characterizations and relevant assumptions, including CO2e lifecycle emissions analyses. The TAG shall provide input and feedback on the consultant’s work. The Commission may use appropriated funds to hire the consultant.
(d) Emission analyses and associated assumptions developed by the consultant shall be reviewed and approved annually by the Commission. In reviewing the consultant’s work, the Commission shall provide a public comment period on the work. The Commission may approve or adjust the consultant’s work as it deems necessary based on its review and the public comments received.
(Added 2023, No. 18, § 3, eff. May 12, 2023.)
§ 8129 Clean Heat Standard Equity Advisory Group
(a) The Commission shall establish the Clean Heat Standard Equity Advisory Group to assist the Commission in developing and implementing the Clean Heat Standard in a manner that ensures an equitable share of clean heat measures are delivered to Vermonters with low income and moderate income and that Vermonters with low income and moderate income who are not early participants in clean heat measures are not negatively impacted in their ability to afford heating fuel. Its duties shall include:
(1) providing feedback to the Commission on strategies for engaging Vermonters with low income and moderate income in the public process for developing the Clean Heat Standard program;
(2) supporting the Commission in assessing whether customers are equitably served by clean heat measures and how to increase equity;
(3) identifying actions needed to provide customers with low income and moderate income with better service and to mitigate the fuel price impacts calculated in section 8128 of this title;
(4) recommending any additional programs, incentives, or funding needed to support customers with low income and moderate income and organizations that provide social services to Vermonters in affording heating fuel and other heating expenses;
(5) providing feedback to the Commission on the impact of the Clean Heat Standard on the experience of Vermonters with low income and moderate income; and
(6) providing information to the Commission on the challenges renters and residents of manufactured homes face in equitably accessing clean heat measures and recommendations to ensure that renters and residents of manufactured homes have equitable access to clean heat measures.
(b) The Clean Heat Standard Equity Advisory Group shall consist of up to 10 members appointed by the Commission and at a minimum shall include at least one representative from each of the following groups: the Department of Public Service; the Department for Children and Families’ Office of Economic Opportunity; a community action agency with expertise in low-income weatherization; a community action agency with expertise in serving residents of manufactured homes; Efficiency Vermont; the Vermont Association of Area Agencies on Aging; individuals with socioeconomically, racially, and geographically diverse backgrounds; renters; rental property owners; the Vermont Housing Finance Agency; and a member of the Vermont Fuel Dealers Association. Members who are not otherwise compensated by their employer shall be entitled to per diem compensation and reimbursement for expenses under 32 V.S.A. § 1010.
(c) The Equity Advisory Group shall cease to exist when the initial Clean Heat Standard rules are adopted. Thereafter, the issues described in subsection (a) of this section shall be reviewed by the Commission, in compliance with 3 V.S.A. chapter 72.
(Added 2023, No. 18, § 3, eff. May 12, 2023.)
§ 8130 Severability
If any provision of this chapter or its application to any person or circumstance is held invalid or in violation of the Constitution or laws of the United States or in violation of the Constitution or laws of Vermont, the invalidity or the violation shall not affect other provisions of this chapter that can be given effect without the invalid provision or application, and to this end, the provisions of this chapter are severable.
(Added 2023, No. 18, § 3, eff. May 12, 2023.)
§ 8131 Rulemaking authority
Notwithstanding any other provision of law to the contrary, the Commission shall not file proposed rules with the Secretary of State implementing the Clean Heat Standard without specific authorization enacted by the General Assembly.
(Added 2023, No. 18, § 3, eff. May 12, 2023.)
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