Introduced by Representative Errecart of Shelburne
Subject: Municipal and county government; indebtedness; public service; regulation of corporations; taxation and finance; tax stabilization agreements
Statement of purpose: This bill proposes to provide municipalities several alternatives for financing electric transmission facilities.
AN ACT RELATING TO FINANCING ELECTRIC TRANSMISSION FACILITIES
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 24 V.S.A. § 1752b is added to read:
§ 1752b. ELECTRIC TRANSMISSION FACILITY
By a majority vote of those present and voting at an annual or special meeting warned for the purpose, a municipality may issue municipal bonds under this chapter for costs associated with an electric transmission facility in that municipality, and such facility shall be considered “improvements” for the purposes of this chapter. Bonds issued pursuant to this section shall be subject to the requirements of subsection 1759(a) of this title except the entire debt will be paid in not more than 40 years from the date of issue.
Sec. 2. 24 V.S.A. § 2741 is amended to read:
§ 2741. MUNICIPAL CORPORATIONS; PROPERTY VALUES FIXED BY
(a) A municipal corporation, as hereinafter provided, may enter into a contract with owners, lessees, bailees, or operators of agricultural, forest land, open space land, electric transmission facilities, industrial or commercial real and personal property, and alternate-energy generating plants for the purpose of:
* * *
(b) A municipal corporation, by vote of a majority of those present and voting at an annual or special meeting warned for that purpose for a contract relating to agricultural or forest property, open space land, electric transmission facilities, or to alternate-energy generating plants, or by a vote of two-thirds of those present and voting at annual or special meeting warned for that purpose for a contract relating to commercial or industrial property, may either:
* * *
(c) Any contract entered into pursuant to this section:
(1) shall not be for a period in excess of ten years except for a contract to stabilize taxes for an electric transmission facility or a contract to stabilize taxes for an alternate-energy generating plant, in which case the term shall not exceed the term of any license, permit, or other approval required to operate such a plant;
* * *
Sec. 3. 30 V.S.A. § 248a is added to read:
§ 248a. CUSTOMER ELECTRIC TRANSMISSION FACILITY PAYMENT
Upon petition of a municipality, the public service board may approve one or more electric transmission facility pricing programs for one or more electric utilities. For the purposes of this section, an “electric transmission facility pricing program” shall mean an optional service provided or contracted for by an electric company under which the company’s customers may voluntarily pay a contribution, determined by the customer, that will be deposited in a board-approved fund for that company’s electric transmission facilities. However, in the case of a municipal plant or department formed under a local charter or chapter 79 of this title or an electric cooperative formed under chapter 81 of this title, any electric transmission facility pricing program approved by the board 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.
Sec. 4. 32 V.S.A. § 5404a(c)(2) is amended to read:
tax stabilization agreement relating to agricultural property, forest land,
open space land, electric transmission facilities, or
energy alternate‑energy generating plants entered into after
July 1, 1997 by a municipality under section 2741 of Title 24.
Sec. 5. EFFECTIVE DATE
This act shall take effect upon passage.
The Vermont General Assembly
115 State Street