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Introduced by   Committee on Agriculture


Subject:  Public service; regulation of corporations; net metering

Statement of purpose:  This bill proposes to amend the net metering requirements so that an application for a certificate of public good for net metering systems would not require notification of abutters whose property line is more than 1,000 feet from a farm system, and the cumulative capacity cap for net metering systems would apply to the amount assigned to net metering, not the generating capacity of the system.


It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  30 V.S.A. § 219a is amended to read:


(a)  As used in this section:

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(4)  “Farm system” means a facility of no more than 150 kilowatts (AC) output capacity, except as provided in subdivision (k)(5) of this section, that generates electric energy on a farm operated by a person principally engaged in the business of farming, as that term is defined in Regulation 1.175-3 of the Internal Revenue Code of 1986, from the anaerobic digestion of agricultural products, byproducts, or wastes, or other renewable sources as defined in subdivision (3)(E) of this subsection, intended to offset the meters designated under subdivision (g)(1)(A) of this section on the farm or has entered into a contract as specified in subsection (k) of this section.

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(c)  The board shall establish by rule or order 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. A net metering system shall be deemed to promote the public good of the state if it is in compliance with the criteria of this section, and board rules or orders. In developing such rules or orders, the board:

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(3)  shall not require notification of abutting property owners whose closest property line is more than 1,000 feet from a farm system;

(4)  shall seek to simplify the application and review process as appropriate; and

(4)(5)  shall find that such rules are consistent with state power plans.

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(h)(1)  An electric company:

(A)  Shall make net metering available to any customer using a net metering system or farm system on a first-come, first-served basis until the cumulative generating output capacity of net metering systems assigned to net metering equals 1.0 percent of the distribution company’s peak demand during 1996; or the peak demand during the most recent full calendar year, whichever is less; provided, however, an electric company and a farm system may jointly petition the board to exceed this capacity.  In determining whether to exceed the cap, the board shall consider the following:

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(k)  Notwithstanding the provisions of subsections (f) and (g) of this section, an electric company may contract to purchase all or a portion of the output products from a farm system, provided:

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(4)  any contract may permit all or a portion of the tradeable renewable energy credits for which the farm system is eligible to be transferred to the electric company;

(5)  the generation capacity of a system may exceed 150 kilowatts provided:

(A)  the contract assigns the amount of power to be net metered;

(B)  the net metered amount does not exceed 150 kilowatts; and

(C)  only the amount assigned to net metering is assessed to the cap provided in subdivision (h)(1)(A) of this section.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont