AN ACT RELATING TO RENEWABLE ENERGY PORTFOLIO STANDARDS, APPLIANCE EFFICIENCY STANDARDS, AND DISTRIBUTED ELECTRICITY
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 30 V.S.A. § 8001(a) is amended to read:
§ 8001. RENEWABLE ENERGY GOALS
renewable energy programs authorized under this chapter shall be designed and
implemented to achieve the following goals: (1) Air
and water quality shall be protected and promoted in renewable energy programs. (2) The
continued acquisition of cost-effective end-use energy efficiency measures
shall be preserved and enhanced in renewable energy programs. (3) Programs
shall, to the extent practicable, support development of renewable energy and
energy efficiency industries and infrastructure in Vermont , while
still sustaining existing renewable energy infrastructure. (4) Programs
shall, to the extent practicable, be designed and implemented in a manner that
balances program benefits and costs, and rates.
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, 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 and related energy service industries while retaining and supporting existing renewable energy infrastructure.
(3) Providing an incentive for the state’s utilities to enter into affordable, long-term, stably priced contracts that mitigate market price fluctuation for Vermonters.
(4) Developing viable markets for the development of renewable energy and energy efficiency projects.
(5) Protecting and promoting air and water quality by means of renewable energy programs.
(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.
Sec. 2. 30 V.S.A. § 8002 is amended to read:
§ 8002. DEFINITIONS
For purposes of this chapter:
(1)(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) which 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, but are not limited to:
(i) contribution-based programs in which participating customers can determine the amount of a contribution, monthly or otherwise, that will be deposited in a board-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.
(2) “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 (2), 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 shall be considered renewable energy resources, but no form of solid waste, other than agricultural or silvicultural waste, shall be considered renewable.
(B) For purposes of this subdivision (2), no form of nuclear fuel shall be considered renewable.
(C) For purposes of this chapter, the only energy produced by a hydroelectric facility to be considered renewable shall be from a hydroelectric facility with a generating capacity of 200 megawatts or less.
(D) After conducting administrative proceedings, the board 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.
(3) “Existing renewable energy” means all types of renewable energy sold from the supply portfolio of a Vermont electricity provider that is not considered to be from a new renewable energy source.
(4) “New renewable energy” means renewable energy produced by a generating resource coming into service after December 31, 2004. This may include the additional energy from an existing renewable facility retrofitted with advanced technologies or otherwise modified or expanded to increase the kwh output of the facility. If the production of energy involves combustion of the resource, the system must result in a high level of energy conversion efficiency or significantly reduced emissions. For the purposes of this chapter, renewable energy refers to either “existing renewable energy” or “new renewable energy.”
(5) “Energy conversion efficiency” means the effective use of energy and heat from a combustion process.
(6) “Tradeable renewable energy credits” means all of the environmental attributes associated with a single unit of energy generated by a renewable energy source where:
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Sec. 3. 30 V.S.A. § 8004 is amended to read:
§ 8004. RENEWABLE PORTFOLIO STANDARDS FOR SALES OF
The public service board shall design a proposed renewable portfolio standard
in the form of draft legislation. The standard shall be developed with the aid
of a renewable portfolio standard collaborative. The renewable portfolio
standard collaborative, composed of representatives from the electric
utilities, industry, renewable energy industry, ratepayers, environmental and
consumer groups, the department of public service, and other stakeholders
identified by the board, shall aid in the development of a renewable portfolio
standard for renewable energy resources, as well as requirements for
implementation of and compliance with that standard. The proposed renewable
portfolio standard shall be applicable to all providers of electricity to
retail consumers in this state. The proposed renewable portfolio standard
developed by the board will be presented to the house committee on commerce,
the house and senate committees on natural resources and energy, and the senate
committee on finance in the form of draft legislation for consideration in
January 2004. (b) In
developing the renewable portfolio standard, the board shall consider the
following goals, which shall be afforded equal weight in formulating the
increase the use of renewable energy in Vermont in
order to capture the benefits of renewable energy generation for Vermont
ratepayers and citizens. (2)
maintain or reduce the rates of electricity being paid by Vermont
ratepayers and lessen the price risk and volatility for future ratepayers.
(a) In order for Vermont utilities to achieve the goals established in section 8001 of this title, no company shall sell or otherwise provide or offer to sell or provide electricity in the state of Vermont without ownership of sufficient energy produced by renewable resources as described in this chapter, or sufficient tradeable renewable energy credits that reflect the required renewable energy as provided for in subsection (b) of this section. In the case of members of the Vermont Public Power Supply Authority, the requirements of subsection (b) of this section may be met in the aggregate through all requirements contracts pursuant to section 4002a of this title, or in the aggregate otherwise as approved by the board.
(b) The standard shall include a portfolio requirement that shall be applicable to all providers of electricity to retail consumers in this state, unless the electricity provider demonstrates and the public service board determines that compliance with the standard would impair its ability to meet 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. The standard requires that each retail electricity provider in Vermont provide a certain amount of new renewable resources in its portfolio. By January 1, 2013, each retail electricity provider in Vermont shall supply an amount of any combination of eligible new renewable energy credits and new renewable energy resources with renewable energy credits still attached equal to its total incremental energy growth between January 1, 2005 and January 1, 2013 through the use of electricity generated by new renewable resources. No electricity provider shall be required to provide in excess of a total of 10 percent of its calendar year 2005 retail electric sales with electricity generated by new renewable resources.
(c) The public service board shall provide, by order or rule, the regulations and procedures that are necessary to allow the public service board and the department of public service to implement and supervise further the implementation and maintenance of a renewable portfolio standard.
(d) In lieu of, or in addition to purchasing tradable renewable energy credits to satisfy the portfolio requirements of this section, a provider of electricity to retail customers in this state may pay to a renewable energy fund established by the public service board an amount per kilowatt hour as established by the board. As an alternative, the board may require any proportion of this amount to be paid to the energy conservation fund established under subsection 209(d) of this title.
(e) The public service board shall report to the general assembly on or before December 30, 2010 on the projected retail rate impact of the standard established in subsection (b) of this section. The report shall include recommendations on statutory changes that will alleviate that impact, if any. The report shall be filed with the Senate Committees on Finance and on Natural Resources and Energy and the House Committees on Commerce and on Natural Resources and Energy.
Sec. 4. 30 V.S.A. § 8005 is added to read:
§ 8005. TRADEABLE CREDITS
(a) The public service board shall establish or adopt a system of tradeable renewable energy credits for renewable resources that may be earned by electric generation qualifying for the renewables portfolio standard.
(b) The public service board 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 public service board shall ensure that providers disclose the types of generation used and whether the energy is Vermont‑based, and shall clearly distinguish between energy or tradeable energy credits provided from renewable and nonrenewable sources and existing and new sources.
Sec. 5. 30 V.S.A. § 209(d) is amended to read:
(d)(1) The public service department, any entity appointed by the board under subdivision (2) of this subsection, all gas and electric utility companies, and the board 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 agency of natural resources’ air quality standards. Such programs and measures, and their implementation, may be approved by the board if it determines they will be beneficial to the ratepayers of the companies after such notice and hearings as the board may require by order or by rule.
(2) In place of utility-specific programs developed pursuant to section 218c of this title, the board may, 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 board for these purposes. The board may include appropriate combined heat and power systems that result in the conservation and efficient use of energy and meet the applicable agency of natural resources’ air quality standards. The board may specify that the implementation of these programs and measures satisfies a utility’s corresponding obligations, in whole or in part, under section 218c of this title and under any prior orders of the board.
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Sec. 6. 9 V.S.A. chapter 74 is added to read:
Chapter 74. Energy Efficiency Standards
for Appliances and Equipment
§ 2791. GENERAL PURPOSE
This chapter establishes minimum efficiency standards for certain products sold or installed in the state.
§ 2792. Findings
The general assembly finds that:
(1) Efficiency standards for certain products sold or installed in the state assure consumers and businesses that those products meet minimum efficiency performance levels, thus saving money on utility bills.
(2) These efficiency standards save energy and thus reduce pollution and other environmental impacts associated with the production, distribution, and use of electricity and natural gas.
(3) These efficiency standards can make electricity systems more reliable by reducing the strain on the electricity grid during peak demand periods. Furthermore, improved energy efficiency can reduce or delay the need for new power plants, power transmission lines, and power distribution system upgrades.
(4) Energy efficiency standards contribute to the economy of this state by enabling consumers and business owners to spend less on energy, leaving more for the purchase of local goods and services.
(5) Energy efficiency standards will be easy to adopt and implement because identical standards are already adopted or proposed elsewhere – either as another state’s standard or a national voluntary standard (e.g., Energy Star®).
§ 2793. Definitions
As used in this chapter:
(1) “Automatic commercial ice-maker,” means a factory-made assembly that is shipped in one or more packages that consists of a condensing unit and ice-making section operating as an integrated unit, that makes and harvests ice cubes, and that may store or dispense ice. This term includes machines with capacities between and including 50 and 2,500 pounds per 24 hours;
(2) “Ballast” means a device used with an electric discharge lamp to obtain necessary circuit conditions (voltage, current, and waveform) for starting and operating the lamp.
(3) “Boiler” means a space heater that is a self-contained appliance for supplying steam or hot water primarily intended for space-heating. “Boiler” does not include hot water supply boilers and utilizes only single-phase electric current, or DC current in conjunction with natural gas, propane, or home heating oil, and which:
(A) is designed to be the principal heating source for the living space of a residence;
(B) has a heat input rate of less than 300,000 Btu per hour; and
(C) is not an appliance designed for the primary purpose of supplying hot water for purposes other than heating.
(4) “Ceiling fan” means a nonportable device that is suspended from a ceiling for circulating air via the rotation of fan blades.
(5) “Central furnace” means a self-contained space heater designed to supply heated air through ducts of more than 10 inches in length and which utilizes only single-phase electric current, or single-phase electric current or DC current in conjunction with natural gas, propane, or home heating oil, and which:
(A) is designed to be the principle heating source for the living space of a residence;
(B) is not contained within the same cabinet with a central air conditioner whose rated cooling capacity is above 65,000 Btu per hour; and
(C) has a heat input rate of less than 225,000 Btu per hour.
(6) “Commercial clothes washer” means a soft mount horizontal- or vertical-axis clothes washer that:
(A) has a clothes container compartment no greater than 3.5 cubic feet in the case of a horizontal-axis product or no greater than 4.0 cubic feet in the case of a vertical-axis product; and
(B) is designed for use by more than one household, such as in multifamily housing, apartments, or coin laundries.
(7) “Commercial pre-rinse spray valve,” means a hand-held device designed and marketed for use with commercial dishwashing and ware washing equipment and which sprays water on dishes, flatware, and other food service items for the purpose of removing food residue prior to their cleaning.
(8)(A) “Commercial refrigerator, freezer, and refrigerator-freezer” means self-contained refrigeration equipment that:
(i) is not a consumer product as regulated pursuant to 42 U.S.C. § 6291 and subsequent sections;
(ii) operates at a chilled, frozen, combination chilled and frozen or variable temperature for the purpose of storing or merchandising, or storing and merchandising any combination of food, beverages, and ice;
(iii) may have transparent or solid hinged doors, or both, or a combination of hinged and sliding doors; and
(iv) incorporates in a single cabinet most components involved in the vapor compression cycle and the refrigerated compartment.
(B) This term does not include:
(i) products with 85 cubic feet or more of internal volume;
(ii) walk-in refrigerators or freezers; or
(iii) consumer products that are federally regulated pursuant to 42 U.S.C. § 6291 et seq.
(9) “Commissioner” means the commissioner of the department of public service.
(10) “Digital television adapter” means an electronic product for which the sole purpose is the conversion of digital video terrestrial broadcast signals to analog NTSC video signals for use by an analog device such as a television. This term does not include cable or satellite television set-top boxes.
(11) “Electricity ratio (ER)” is the ratio of furnace electricity use to total furnace energy use. ER = 3.412*EAE/(1000*EF + 3.412 EAE) where EAE and EF are defined in 10 C.F.R. Part 430, Subpart B, Appendix N.
(13) “Furnace air handler” means the section of the furnace that includes the fan, blower, and housing, usually accompanied by a filter, all of which are located generally upstream of the burners and heat exchanger. In many residential applications, the air handler includes a cooling coil.
(14) “Illuminated exit sign” means an internally illuminated sign that is designed to be permanently fixed in place to identify an exit; consists of an electrically powered integral light source that illuminates the legend “EXIT” and any directional indicators; and provides contrast between the legend, any directional indicators, and the background.
(15) “Large packaged air-conditioning equipment” means packaged air‑conditioning equipment that has 240,000 Btu/hour or more of cooling capacity and that is built as a package and shipped as a whole to end-user sites.
(16)(A) “Low voltage dry-type distribution transformer” means a distribution transformer that:
(i) has an input voltage of 600 volts or less;
(ii) is air-cooled;
(iii) does not use oil as a coolant; and
(iv) is rated for operation at a frequency of 60 Hertz.
(B) “Low voltage dry-type distribution transformer” does not include:
(i) transformers with multiple voltage taps, with the highest voltage tap equaling at least 20 percent more than the lowest voltage tap; or
(ii) transformers, such as those commonly known as drive transformers, rectifier transformers, auto-transformers, uninterruptible power system transformers, impedance transformers, harmonic transformers, regulating transformers, sealed and nonventilating transformers, machine tool transformers, welding transformers, grounding transformers, or testing transformers, that are designed to be used in a special purpose application and are unlikely to be used in general purpose applications.
(17) “Medium voltage dry-type distribution transformer” means a transformer that:
(A) has an input voltage of more than 600 volts but 34,500 volts or less;
(B) is air-cooled;
(C) does not use oil as a coolant; and
(D) is rated for operation at a frequency of 60 Hertz.
(18) “Metal halide lamp” means a high intensity discharge lamp in which the major portion of the light is produced by radiation of metal halides and their products of dissociation, possibly in combination with metallic vapors.
(19) “Metal halide lamp fixture” means a light fixture designed to be operated with a metal halide lamp and a ballast for a metal halide lamp. Metal halide light fixtures are commonly used in industrial buildings and high-ceiling commercial applications, such as gymnasiums and big-box retail stores.
(20) “Probe-start metal halide ballast” means a ballast used to operate metal halide lamps which does not contain an ignitor and which instead starts lamps by using a third starting electrode “probe” in the arc tube.
(21) “Pulldown refrigerator” means a commercial refrigerator specifically designed to rapidly reduce all integrated product temperatures from 90 degrees F to 38 degrees F over a 12 hour period (i.e., reduction of 4.3 degrees F per hour) when fully loaded with beverage containers.
(22) “Single-voltage external AC to DC power supply” means a device that:
(A) is designed to convert line voltage AC input into lower voltage DC output;
(B) is able to convert to only one DC output voltage at a time;
(C) is sold with, or intended to be used with, a separate end-use product that constitutes the primary power load;
(D) is contained within a separate physical enclosure from the end‑use product;
(E) is connected to the end-use product via a removable or hard‑wired male or female electrical connection, cable, cord, or other wiring;
(F) does not have batteries or battery packs, including those that are removable, that physically attach directly to the power supply unit;
(G) does not have a battery chemistry or type selector switch and indicator light; or does not have a battery chemistry or type selector switch and a state of charge meter; and
(H) has a nameplate output power less than or equal to 250 watts.
(23) “State regulated reflector lamp” means a lamp that is not colored or designed for rough or vibration service applications, that has an inner reflective coating on the outer bulb to direct the light, an E26 medium screw base, and a rated voltage or voltage range that lies at least partially within 115 to 130 volts, and that falls into either of the following categories:
(A) a bulged reflector (BR) or elliptical reflector (ER) bulb shape, with a diameter which equals or exceeds 2.25 inches;
(B) a reflector (R), parabolic aluminized reflector (PAR), bulged reflector (BR), or similar bulb shape with a diameter of 2.25 to 2.75 inches.
(24) “Torchiere” means a portable electric lamp with a reflective bowl that directs light upward onto a ceiling so as to produce indirect illumination on the surfaces below.
(25) “Traffic signal module” means a standard eight‑inch (200 mm) or
12‑inch (300 mm) traffic signal indication, consisting of a light source, a lens, and all other parts necessary for operation.
(26)(A) “Transformer” means a device that consists of two or more coils of insulated wire and that is designed to transfer alternating current by electromagnetic induction from one coil to another, in order to change the original voltage or current value.
(B) The term “transformer” does not include:
(i) transformers with multiple voltage tap; or
(ii) transformers, such as those commonly known as drive transformers, rectifier transformers, auto transformers, uninterruptible power system transformers, impedance transformers, regulating transformers, sealed and nonventilating transformers, machine tool transformers, welding transformers, grounding transformers, or testing transformers, that are designed to be used in a special purpose application and are unlikely to be used in general purpose applications.
(27) “Unit heater” means a self-contained, vented fan-type commercial space heater that uses natural gas, propane, or fuel oil and that is designed to be installed without ducts within a heated space; except that “unit heater” does not include direct vent, sealed combustion burner, force flue heaters, or any products covered by federal standards pursuant to 42 U.S.C. §§ 6291 et seq. or any product that is a direct vent, forced flue heater with a sealed combustion burner.
§ 2794. Scope
(a) The provisions of this chapter apply to the following types of new products sold, offered for sale, or installed in the state:
(1) Automatic commercial ice makers.
(2) Ceiling fans.
(3) Commercial clothes washers.
(4) Commercial pre-rinse spray valves.
(5) Commercial refrigerators and freezers.
(6) Digital television adapters.
(9) Furnace air handlers.
(10) Illuminated exit signs.
(11) Large packaged air-conditioning equipment.
(12) Low voltage dry-type distribution transformers.
(13) Medium voltage dry-type transformers.
(14) Metal halide lamp fixtures.
(15) Single-voltage external AC to DC power supply.
(16) State regulated reflector lamps.
(18) Traffic signal modules.
(19) Unit heaters.
(b) The provisions of this chapter do not apply to:
(1) New products manufactured in the state and sold outside the state.
(2) New products manufactured outside the state and sold at wholesale inside the state for final retail sale and installation outside the state.
(3) Products installed in mobile manufactured homes at the time of construction.
(4) Products designed expressly for installation and use in recreational vehicles.
§ 2795. Efficiency standards
Commencing immediately after establishing an effective date for provisions of this chapter as they pertain to a particular new product that is set forth in section 2794 of this title, the commissioner shall adopt rules in accordance with the provisions of 3 V.S.A. chapter 25 establishing minimum efficiency standards for that type of new product. The rules shall provide for the following minimum efficiency standards:
(1) Automatic commercial ice-makers shall meet the energy efficiency requirements of section 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations.
(2) Ceiling fans shall have:
(A) lighting controls separate from fan speed controls;
(B) adjustable speed controls (either more than one speed or variable speeds); and
(C) the capability of reversible fan action, except fans designed for applications where safety standards would be violated by use of the reversible mode.
(3) Commercial clothes washers shall meet the requirements shown in Table P-3 of section 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4 (Appliance Efficiency Regulations that took effect on November 27, 2002).
(4) Commercial pre-rinse spray valves shall have a flow rate equal to or less than 1.6 gallons per minute.
(5) Commercial refrigerators, freezers, and refrigerator-freezers shall meet the minimum efficiency requirements shown in Table A-6 of section 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations as adopted on December 15, 2004 except that pulldown refrigerators with transparent doors shall meet a requirement five percent less stringent than shown in the California regulations.
(6) Digital television adapters shall not use more than one watt in standby‑passive mode and shall not use more than eight watts in “on” mode.
(7)(A) Furnaces and boilers shall meet or exceed the following Annual Fuel Utilization Efficiency (AFUE) values:
Minimum Efficiency Level
Natural gas- and propane-fired furnaces
Natural gas- and propane- fired hot water boilers
Oil-fired hot water boilers
Natural gas- and propane- fired steam boilers
Oil-fired steam boilers
(B) The commissioner may adopt rules to exempt compliance with these furnace or boiler standards at any building, site, or location where complying with these standards would be in conflict with any local zoning ordinance, building or plumbing code, or other rule regarding installation and venting of boilers or furnaces.
(8) Furnace air handlers shall have an ER of 2.0 percent or less, except air handlers for oil-fired furnaces with a capacity of less than 94,000 Btu per hour shall have an ER of 2.3 percent or less.
(9) Illuminated exit signs shall meet the Version 2.0 Energy Star Program performance requirements for illuminated exit signs prescribed by the U.S. Environmental Protection Agency.
(10) Large packaged air-conditioning equipment shall meet the Tier 2 efficiency levels of the “Minimum Equipment Efficiencies for Unitary Commercial Air Conditioners” or “Minimum Equipment Efficiencies for Heat Pumps,” as appropriate, developed by the Consortium for Energy Efficiency, Boston, MA, as in effect on January 1, 2002.
(11) Low voltage dry-type distribution transformers shall meet the Class 1 efficiency levels for distribution transformers specified in Table 4-2 of the “Guide for Determining Energy Efficiency for Distribution Transformers” published by the National Electrical Manufacturers Association (NEMA Standard TP-1-2002).
(12) Medium voltage dry-type distribution transformers shall meet minimum efficiency levels three-tenths of a percentage point higher than the Class 1 efficiency levels for medium voltage distribution transformers specified in Table 4-2 of the “Guide for Determining Energy Efficiency for Distribution Transformers” published by the National Electrical Manufacturers Association (NEMA Standard TP-1-2002).
(13) Metal halide lamp fixtures designed to be operated with lamps rated greater than or equal to 150 watts but less than or equal to 500 watts shall not contain a probe-start metal halide lamp ballast.
(14) Single-voltage external AC to DC power supplies shall meet the tier one energy efficiency requirements shown in Table U-1 of section 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations as adopted on December 15, 2004. This standard applies to single voltage AC to DC power supplies that are sold individually and to those that are sold as a component of or in conjunction with another product.
(15) State-regulated incandescent reflector lamps shall meet the minimum average lamp efficacy requirements for federally regulated incandescent reflector lamps contained in 42 U.S.C. § 6295 (i)(1)(A). Fifty (50) watt elliptical reflector (ER) lamps are exempted from these requirements.
(16) Torchieres shall consume not more than 190 watts and shall not be capable of operating with lamps that total more than 190 watts.
(17) Red and green traffic signal modules shall meet the product specification of the “Energy Star Program Requirements for Traffic Signals” developed by the U.S. Environmental Protection Agency that took effect in February 2001 and shall be installed with compatible, electrically connected signal control interface devices and conflict monitoring systems. The commissioner, in consultation with the secretary of transportation, may exempt specific traffic signals from this requirement upon a determination that Energy Star compliant traffic signal modules would compromise safe signal operation.
(18) Unit heaters shall be equipped with an intermittent ignition device and shall have either power venting or an automatic flue damper.
(a) Within two years of the date that this chapter takes effect with respect to it, no new ceiling fan, commercial clothes washer, commercial pre-rinse spray valve, digital television adapter, high-intensity discharge lamp ballast, illuminated exit sign, low voltage dry-type distribution transformer, single‑voltage external AC to DC power supply, state regulated incandescent reflector lamp, torchiere, traffic signal module, or unit heater may be sold or offered for sale in the state unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the rules adopted pursuant to section 2795 of this title. Within three years of the date that this chapter takes effect with respect to it, no new automatic commercial ice maker, medium voltage dry-type distribution transformer or metal halide lamp fixture may be sold or offered for sale in the state unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the rules adopted pursuant to section 2795 of this title. Within five years of the date that this chapter takes effect with respect to it, no new commercial refrigerator or freezer or large packaged air conditioning equipment may be sold or offered for sale in the state unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the rules adopted pursuant to section 2795 of this title.
(b) Within 18 months after the standard established under this chapter takes effect with respect to furnaces or furnace air handlers, or both, the commissioner, in consultation with the attorney general, shall determine if implementation of state standards for furnaces or furnace air handlers, or both, requires a waiver from federal preemption. If the commissioner determines that a waiver from federal preemption is not needed for furnaces, furnace air handlers, or both, those state standards shall go into effect within three years after their respective effective dates, as established under this section. If the commissioner determines that a waiver from federal preemption is required for furnaces, furnace air handlers, or both, the commissioner shall apply for that waiver within one year of that determination, and the applicable standards shall go into effect at the earliest date permitted by federal law.
(c) One year after the date upon which sale or offering for sale of certain products is limited pursuant to subsection (a) or (b) of this section, no new products may be installed for compensation in the state unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the rules adopted pursuant to section 2795 of this title.
(d) This chapter shall take effect with respect to an individual product of a type set forth in section 2794 of this title, upon the date the commissioner determines that a law or administrative rule that requires equivalent or higher standards for that product has been adopted by one or more New England states in addition to Vermont and by at least one of the following states: New York, Pennsylvania, or New Jersey.
(e) Owners and operators of commercial and industrial facilities shall be allowed to utilize appliances and equipment that do not meet the requirements of section 2795 of this title for the repair or replacement of existing equipment, provided that these appliances or this equipment was acquired before the last sales date determined according to the provisions of this section. These appliances and equipment may be used at any time before or after the effective date of those requirements, at the discretion of the owners and operators.
The commissioner may establish increased efficiency standards on the products listed in section 2794 of this title. In considering increased standards, the commissioner shall set efficiency standards upon a determination that increased efficiency standards would serve to promote energy conservation in the state and would be cost-effective for consumers who purchase and use those products, provided no increased efficiency standards shall become effective within one year following the adoption of any amended rules providing for those increased efficiency standards. The commissioner may apply for a waiver of federal preemption in accordance with federal procedures (42 U.S.C. § 6297(d)) for those products regulated by the federal government.
§ 2798. Testing, certification, labeling, and enforcement
(a) The commissioner shall adopt a process for testing the energy efficiency of the new products covered by section 2794 of this title if those processes are not provided for in the residential building energy standards adopted under 21 V.S.A. § 266. The commissioner shall use U.S. Department of Energy approved test methods, or in the absence of those test methods, other appropriate nationally recognized test methods. The manufacturers of these products shall cause samples of their products to be tested in accordance with the test procedures adopted pursuant to this chapter or those specified in the residential building energy standards.
(b) Manufacturers of new products covered by section 2794 of this title shall certify to the commissioner that these products are in compliance with the provisions of this chapter. The commissioner shall adopt rules governing the certification of those products and may coordinate with the certification programs of other states with similar standards.
(c) Manufacturers of new products covered by section 2794 of this title shall identify each product offered for sale or installation in the state as being in compliance with the provisions of this chapter by means of a mark, label, or tag on the product and packaging at the time of sale or installation. The commissioner shall adopt rules governing the identification of these products and packaging which shall be coordinated to the greatest practical extent with the labeling programs of other states and federal agencies with equivalent efficiency standards.
(d) The commissioner may test products covered by section 2794 of this title. If any product so tested is found not to be in compliance with the minimum efficiency standards established under section 2795 of this title, the commissioner shall:
(1) Charge the manufacturer of that product for the cost of product purchase and testing.
(2) Make information available to the public on products found not to be in compliance with the standards.
(e) The commissioner may cause periodic inspections to be made of distributors or retailers of new products covered by section 2794 of this title in order to determine compliance with the provisions of this chapter. The commissioner shall also coordinate with the residential buildings energy standard program regarding inspections for new products that are also covered by that program.
(f) The commissioner shall investigate complaints received concerning violations of this chapter and shall report the results of such investigations to the attorney general. The attorney general may institute proceedings to enforce the provisions of this chapter. Any manufacturer, distributor, or retailer who violates any provision of this chapter shall be issued a warning by the commissioner for any first violation. Repeat violations shall be subject to a civil penalty of not more than $250.00. Each violation shall constitute a separate offense, and each day that such violation continues shall constitute a separate offense. Penalties assessed under this subsection are in addition to costs assessed under subsection (d) of this section.
(g) The commissioner is hereby granted the authority to adopt further rules as necessary to ensure the proper implementation and enforcement of the provisions of this chapter.
Sec. 7. STANDARDS FOR INTERCONNECTION OF DISTRIBUTED
On or before September 1, 2006, the public service board shall establish by rule or order standard provisions, including applicable fees that are required to cover the total cost of interconnection to be paid by the qualified distributed generator, for agreements providing for interconnection between the facilities of an electric company under the jurisdiction of the board and the facilities of a qualified distributed generator. The applicable safety, power quality, and interconnection requirement rules adopted by the board pursuant to section 219a of Title 30 shall be utilized in addition to any other requirements necessary to protect public safety and system reliability. The board may provide that such interconnection agreements may be conditioned in instances where interconnection would cause electric instability on the facilities of the local distribution grid. For the purposes of this section, “qualified distributed generator” means an electrical generator that has a capacity of less than 50 megawatts, and that is either:
(1) a renewable generator as defined in section 8002 of Title 30; or
(2) a generator that is part of a combined heat and power application providing an overall conversion efficiency of 65 percent or greater.
Sec. 8. ELECTRICITY RELIABILITY POLICY
It shall be the policy of the state of Vermont, in negotiations and
policy-making at the New England Independent System Operator, in proceedings before the Federal Energy Regulatory Commission, and in all other relevant venues, to support an efficient reliability policy, as follows:
(1) When cost recovery is sought through regionwide regulated rates or uplift tariffs for power system reliability improvements, all available resources – transmission, strategic generation, targeted energy efficiency, and demand response resources – should be treated comparably in analysis, planning, and access to funding.
(2) A principal criterion for approving and selecting a solution should be whether it is the least-cost solution to a system need on a total cost basis.
(3) Ratepayers should not be required to pay for system upgrades in other states that do not meet these least-cost and resource-neutral standards.
(4) For reliability-related projects in Vermont, subject to the review of the public service board, regional financial support should be sought and made available for transmission or distributed resource alternatives to transmission on a resource-neutral basis.
(5) The public service department, public service board, and attorney general shall advocate for these policies in negotiations and appropriate proceedings before the New England Independent System Operator, the New England Regional Transmission Operator, the Federal Energy Regulatory Commission, and all other appropriate regional and national forums. This subdivision shall not be construed to compel litigation.
(6) In addressing reliability problems for the state’s electric system, Vermont distribution utilities and transmission companies shall seek regional cost support for the least cost solution with equal consideration and treatment of all available resources, including transmission, strategic distributed generation, targeted energy efficiency, and demand response resources on a total cost basis. This subdivision shall not be construed to compel litigation.
Sec. 9. 30 V.S.A. § 218d(n) is added to read:
(n) The public service board shall by rule or general order establish standards and procedures for revising the rate designs of distribution electric companies in a manner that will assist the companies in implementing the energy policy established in section 202a of this title and in complying with the integrated planning requirements of section 218c of this title while ensuring that the financial success of distribution utilities between rate cases is not linked to increased sales to end-use customers and is not harmed by decreases in such sales, especially decreases due to improvements in end-use energy efficiency by Vermont customers. The board shall issue a proposed rule or general order to implement this section by June 1, 2006.
The Vermont General Assembly
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