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H 394

An act relating to renewable energy generation

2025-2026 Regular Session Introduced by Amy Sheldon

Creates a Public Energy Advocate to help applicants obtain a certificate of public good and narrows PUC review to core stability, reliability, and safety.

Read first time and referred to the Committee on Energy and Digital Infrastructure
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Bill Summary · H 394

Summary of H.394 (2025-2026) — An act relating to renewable energy generation (Vermont)

Purpose and overall intent

  • Introduces a set of reforms to energy planning, net metering, and the review process for energy generation facilities.
  • Aims to:
    • Ensure energy plans align with Vermont Conservation Design.
    • Narrow the Public Utility Commission’s (PUC) review of electric distribution upgrades to core concerns (stability, reliability, public health and safety).
    • Create a Public Energy Advocate in the Attorney General’s Office to assist project applicants in obtaining a certificate of public good (CPG) under 30 V.S.A. § 248.

Key provisions and changes

1) Enhanced energy planning and energy compliance (24 V.S.A. § 4352)
- Adds enhanced energy planning requirements for determining energy compliance.
- To obtain an affirmative determination, plans must:
- Include an energy element in regional and municipal plans (consistent with existing descriptions and confirmed under current planning law).
- Be consistent with multiple state goals and plans, including:
- Greenhouse gas reduction goals (10 V.S.A. § 578a)
- 25 by 25 renewable energy target (10 V.S.A. § 580)
- Building efficiency goals (10 V.S.A. § 581)
- State energy policy and recommendations on siting and efficient energy use (30 V.S.A. § 202a; sections 202/202b)
- Renewable Energy Standard categories (30 V.S.A. §§ 8004, 8005)
- Vermont Conservation Design
- Meet standards set in the state energy plans.

2) Net metering program rules and thresholds (30 V.S.A. § 8010)
- The Commission must adopt rules for net metering that:
- Promote goals of greenhouse gas reduction and renewable energy.
- Ensure deployment of at least 20 MW per year, aligned with the Electrical Energy and Comprehensive Energy Plans, unless conflicts with stated goals are found.
- Establish standards and procedures for net-metering project applications, including:
- For projects > 15 kW (increased to > 25 kW in some versions), certain procedural protections apply (e.g., requirement to notify specific agencies, DPW, planning bodies, etc.).
- Pre-application and other procedural requirements preserved to ensure thorough review.

3) Plant definitions and interconnection (30 V.S.A. § 8002)
- Clarifies when multiple facilities constitute a single “plant” for permitting and interconnection purposes.
- Sets that collocated independent facilities on the same parcel may still be separate plants if they use separate equipment and have separate interconnection points.
- For net metering eligibility, collocated independent facilities may not exceed a cumulative 500 kW nameplate capacity.

4) New CPG review provisions and scope (30 V.S.A. § 248)
- Limits the PUC’s jurisdiction to specific aspects of distribution upgrades (stability, reliability) and public health/safety, excluding broader consideration of actual or potential impacts from distribution upgrades themselves.
- Specifies party status and notice requirements align with this narrowed scope, with certain exceptions for affected utilities and the Department of Public Service.
- Sets timeframes for CPG decisions:
- Facilities ≤ 5 MW: decision within 12 months after complete application.
- Facilities > 5 MW: decision within 15 months after complete application.

5) Public Energy Advocate (3 V.S.A. § 153)
- Creates one full-time, exempt Public Energy Advocate within the Office of the Attorney General.
- The Public Energy Advocate will assist applicants in navigating the CPGB process and advocate for both the applicant and the public before the PUC, particularly for energy storage and generation projects.

6) Administrative provisions and reporting (Section 6, Sec. 7)
- Initial funding for the Public Energy Advocate: $120,000 in FY2026 from the General Fund.
- Requires a report by December 15, 2025, from the PUC on forest land conversion for renewable energy projects and mitigation measures.

Who or what would be affected

  • Public Utility Commission (PUC): Would implement enhanced planning reviews, narrowed scope for distribution upgrade reviews, and new CPG timelines.
  • Planning authorities (regional and municipal): Must develop or amend energy elements in plans to satisfy enhanced energy planning requirements.
  • Net metering participants and developers: Subject to revised net metering rules and thresholds; potential changes to application procedures and notification requirements.
  • Renewable energy project applicants: May receive assistance from the new Public Energy Advocate; more defined processes for CPG determinations and planning alignment.
  • Forests and forestry stakeholders: A new reporting requirement on forest land conversion associated with renewable energy projects.

Timelines and effective dates

  • Effective date: July 1, 2025.
  • Public Energy Advocate position funded for FY2026; initial appropriation of $120,000.
  • CPG timelines: 12 months (≤5 MW) or 15 months (>5 MW) after complete application.
  • Forest land conversion report due: December 15, 2025.

Notes

  • The bill emphasizes alignment with Vermont’s conservation design and broader climate/energy goals.
  • It introduces institutional support for applicants via the Public Energy Advocate, aiming to streamline processes while preserving oversight.
  • Some provisions modify how forest land impacts are considered and how forestry-related mitigation is tracked in the context of renewable energy development.

Compiled from official sources — confirm details with the bill’s official record.

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