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Senate Calendar

wednesday, february 23, 2005

50th DAY OF BIENNIAL SESSION

TABLE OF CONTENTS

                                                                                                                Page No.

Action Calendar

Third Reading

S. 15       Relating to voyeurism........................................................................ 170

                        Sen. Sears amendment............................................................. 170

                        Sen. Leddy amendment........................................................... 172

                        Sen. Illuzzi amendment............................................................. 173

Second Reading

Favorable with Recommendation of Amendment

S. 52       Renewable energy/appliance efficiency/distributed electricity.............. 173

                        Natural Resources and Energy Committee Report.................... 173

                        Finance Committee Report...................................................... 192

                        Sen. Shepard, Mullin and Starr Amendment............................. 212

                        Sen. Mullin, Maynard & Shepard Amendment......................... 212

Favorable with Proposal of Amendment

H. 6        Relating to clinical trials for cancer patients........................................ 212

                        Health & Welfare Committee Report....................................... 212




 

ORDERS OF THE DAY

ACTION CALENDAR

Third Reading

S. 15

An act relating to voyeurism.

AMENDMENT TO S. 15 TO BE OFFERED BY SENATOR SEARS ON BEHALF OF THE COMMITTEE ON JUDICIARY

Senator Sears, on behalf of the Committee on Judiciary, moves to amend the bill by striking out all after the enacting clause and inserting in lieu thereof the following:

Sec. 1.  13 V.S.A. § 2638 is added to read:

§ 2638.  VOYEURISM

(a)  As used in this section:

(1)  “Circumstances in which a person has a reasonable expectation of privacy” means circumstances in which a reasonable person would believe that his or her intimate areas would not be visible to the public, regardless of whether that person is in a public or private area.

(2)  “Female breast” means any portion of the female breast below the top of the areola;

(3)  “Intimate areas” means the naked or undergarment-clad genitals, pubic area, buttocks, or female breast of a person.

(4)  “Place where a person has a reasonable expectation of privacy” means:

(A)  a place in which a reasonable person would believe that he or she could disrobe in privacy, without his or her undressing being viewed by another; or

(B)  a place in which a reasonable person would expect to be safe from unwanted intrusion or surveillance.

(5)  “Surveillance” means secret observation of the activities of another person for the purpose of spying upon and invading the privacy of the person.

(6)  “View” means the intentional looking upon of another person for more than a brief period of time, in other than a casual or cursory manner, with the unaided eye or a device designed or intended to improve visual acuity.

(b)  No person shall knowingly and intentionally view, photograph, film, or record in any format:

(1)  The intimate areas of another person without that person’s knowledge and consent while the person being viewed, photographed, filmed, or recorded is in a place where he or she would have a reasonable expectation of privacy; or

(2)  The intimate areas of another person without that person’s knowledge and consent and under circumstances in which the person has a reasonable expectation of privacy.

(c)  No person shall disseminate any image recorded in violation of subsection (b) of this section. 

(d)  A person may view, photograph, film, or record the intimate areas of a person, except in a restroom, as part of a security or theft prevention policy or program at a bona fide place of business if the business has posted public notice of the activity in a prominent and accessible location which can be seen easily by a person entering an area in which he or she may disrobe.  Notice shall be posted on a sign with dimensions of at least 8 1/2 inches by 11 inches and be of a typeface that is easily read.  Any recorded image shall not be disseminated unless authorized by a court order, as discovery in a pending administrative, civil, or criminal action, or in connection with any employment‑related action, and when so disseminated, it shall be under seal and shall not be redisseminated for any other unrelated purpose.

(e)  This section shall not apply to:

(1)  A law enforcement officer conducting official law enforcement activities in accordance with state and federal law.

(2)  Official activities of the department of corrections, a law enforcement agency, the agency of human services, or a court for security purposes or during the investigation of alleged misconduct by a person in the custody of the department of corrections, a law enforcement agency, the agency of human services, or a court.

(f)  This section is not intended to infringe upon the freedom of the press to gather and disseminate news as guaranteed by the First Amendment to the U.S. Constitution.

(g)  It shall be an affirmative defense to a violation of subsection (b) of this section that the defendant was a private investigator or security guard conducting surveillance in the ordinary course of business, and the violation was unintentional and incidental.  However, an unintentional or incidental violation of subsection (b) of this section shall not be a defense to a violation of subsection (c).

(h)  For a first offense, a person who violates subsection (b) of this section shall be imprisoned not more than two years or fined not more than $1,000.00, or both.  For a second or subsequent offense, a person who violates subsection (b) of this section shall be imprisoned not more than three years or fined not more than $5,000.00, or both.  A person who violates subsection (c) of this section shall be imprisoned not more than five years or fined not more than $5,000.00, or both. 

(i)  A person who violates subsection (d) of this section by failure to properly post notice of surveillance shall be fined not more than $1,000.00.  A person who violates subsection (d) of this section by conducting surveillance in a restroom shall be fined not more than $10,000.00.

Sec. 2.  13 V.S.A. § 5401(10) is amended to read:

(10)  “Sex offender” means:

(A)  A person who is convicted in any jurisdiction of the United States, including a state, territory, commonwealth, the District of Columbia, or military, federal, or tribal court of any of the following offenses:

(i)  sexual assault as defined in 13 V.S.A. § 3252;

(ii)  aggravated sexual assault as defined in 13 V.S.A. § 3253;

(iii)  lewd and lascivious conduct as defined in 13 V.S.A. § 2601;

(iv)  sexual activity by a caregiver as defined in 33 V.S.A. § 6913(d);

(v)  second or subsequent conviction for voyeurism as defined in 13 V.S.A. § 2638(b) or (c); and

(vi)  an attempt to commit any offense listed in this subdivision.

* * *

AMENDMENT TO S. 15 TO BE OFFERED BY SENATOR LEDDY BEFORE THIRD READING

Senator Leddy moves to amend the bill by adding a new Sec. 2 to read as follows:

Sec. 2.  13 V.S.A. § 2639 is added to read:

§ 2639.  DISTRIBUTION OF IMAGES WITHOUT CONSENT

(a)  As used in this section:

(1)  “Circumstances under which a person has a reasonable expectation that a recorded image would not be made public” means circumstances in which a reasonable person would believe that a recorded image of his or her intimate areas would not be viewed by a person who was not present during the recording of the image.

(2)  “Female breast” means any portion of the female breast below the top of the areola;

(3)  “Intimate areas” means the naked or undergarment-clad genitals, pubic area, buttocks, or female breast of a person.

(b)  No person shall knowingly disseminate an image of another person’s intimate areas that was recorded under circumstances under which the person has a reasonable expectation that the recorded image would not be made public, without that person’s written consent to the initial dissemination of that image, regardless of whether the person consented to the recording of the image.  This subsection shall not apply to secondary or subsequent dissemination of the image.  Viewing images disseminated in violation of this subsection shall not be a crime under this section. 

(c)  A person who violates subsection (b) of this section shall be imprisoned not more than two years or fined not more than $1,000.00, or both.

And by renumbering the remaining section to be Sec. 3.

AMENDMENT TO S. 15 TO BE OFFERED BY SENATOR ILLUZZI BEFORE THIRD READING

     Senator Illuzzi moves to amend the bill in Sec. 1, 13 V.S.A. §2638, by striking out subsection (g) [affirmative defense] in its entirety and by relettering the remaining subsections to be alphabetically correct.

Second Reading

Favorable with Recommendation of Amendment

S. 52

An act relating to renewable energy portfolio standards, appliance efficiency standards, distributed electricity, and a customer petition for independent status.

Reported favorably with recommendation of amendment by Senator Virginia Lyons for the Committee on Natural Resources and Energy upon commitment.

The Committee recommends that the bill be amended by striking out all after the enacting clause and inserting in lieu thereof the following:

Sec. 1.  FINDINGS

The general assembly finds that:

     (1)  As Vermont’s economy continues to grow, Vermont’s future energy needs also continue to grow.

     (2)  While many other states have chosen to meet their energy needs by investing large amounts of money in building coal-burning power plants, which increase air pollution and contribute to greenhouse gas emissions, Vermonters can save money and help the environment with an energy plan that focuses on renewable energy sources and conservation.

(3)  Vermont has an interest in diversifying its energy portfolio to ensure maximum delivery and price stability for current and future ratepayers.

(4)  While 10 percent of the energy Vermont generates currently comes from nonhydropower renewable sources, only eight percent of Vermont’s energy mix comes from nonhydropower renewable sources.

(5)  Investing in a renewable energy infrastructure today provides Vermont with flexibility and cost containment for its energy needs tomorrow.

(6)  According to a 2002 study done for the department of public service, Vermont’s maximum achievable statewide efficiency savings are more than 30 percent of the state’s current energy needs.

(7)  Low-cost efficiency measures are currently available. 

(8)  These low-cost efficiency measures are cost-effective:  every dollar invested in efficiency yields more than a dollar in savings to the overall power system costs.

     (9)  Conservation efforts that increase efficiency also increase productivity.  Because productivity is the engine of growth in the economy, making Vermont more efficient is an excellent way to improve the economy.  

     (10)  By lightening the load on Vermont’s electrical utility lines, conservation efforts that increase efficiency also increase the reliability of the power supply.  As a result, Vermonters will experience fewer blackouts and brownouts. 

     (11)  Efficiency measures will decrease the monthly power bills of Vermonters.

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 80 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 as provided for in subdivision 8004(b)(1) of this title.  For purposes of meeting the existing renewable energy requirements of this chapter, energy provided by the public service board rule 4.100 purchasing agent as the result of contracts entered into on or before January 1, 1995, shall be deemed “existing renewable energy.”

(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.  For the purposes of this chapter, renewable energy refers to either “existing renewable energy” or “new renewable energy.”

(5)  “Tradeable renewable energy credits” means all of the environmental attributes associated with a single unit of energy generated by a renewable energy source where:

* * *

Sec. 3.  30 V.S.A. § 8004 is amended to read:

§ 8004.  RENEWABLE PORTFOLIO STANDARDS FOR SALES OF ELECTRIC ENERGY

(a)  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 standard:

(1)  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.

(b)  The standard shall include a two-part portfolio requirement that shall be applicable to all providers of electricity to retail consumers in this state, unless the electricity provider demonstrates in its integrated resource plan review under section 218c of this title, and the public service board determines that the electricity provider’s acquisition of efficiency or nonrenewable resources is a strategy that results in a more reliable and cost‑effective portfolio than would be the case if the electricity provider were required to meet the standard.

(1)  The first part of the standard requires that each retail electricity provider in Vermont maintain a certain amount of existing renewable resources in its portfolio. Each electricity provider shall provide its retail customers in each calendar year the same annual amount of renewable energy as sold by that provider on average during calendar years 1995 through 1997.  No electricity provider during any calendar year shall be required to sell an amount of electricity generated from existing renewable resources exceeding 25 percent of the total annual average company sales during that period.

(2)  The second part of 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 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.  The standard in this subsection shall not apply to an electricity provider that annually supplies over 50 percent of its sales as determined in subdivision (1) of this subsection with existing 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.

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 two parts of 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 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, and including programs and measures delivered in multiple service territories, by one or more entities appointed by the board for these purposes.  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.

* * *

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.

(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.

(7)  Furnaces.

(8)  Boilers.

(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.

(17)  Torchieres.

(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:

Product Type

Minimum Efficiency Level

Natural gas- and propane-fired furnaces

90% AFUE

Oil-fired furnaces

83% AFUE

Natural gas- and propane- fired hot water boilers

84% AFUE

Oil-fired hot water boilers

84% AFUE

Natural gas- and propane- fired steam boilers

82% AFUE

Oil-fired steam boilers

82% AFUE

(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 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 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.

§ 2796.  Implementation

(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 any combination of the northeast states with an aggregate population of at least eight million people.  For the purposes of this section, northeastern states shall include the New England states, Pennsylvania, New York, and New Jersey

§ 2797.  revised standards

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. 6.  STANDARDS FOR INTERCONNECTION OF DISTRIBUTED GENERATION

On or before September 1, 2005, 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. 7.  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 lowest-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 lowest 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. 

Sec. 8.  30 V.S.A. § 209(g) is added to read:

(g)  The department of public service shall develop and the public service board shall review and adopt a comprehensive, long-term evaluation and plan of Vermont’s transmission system’s future reliability needs and alternative distributed resource solutions.

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 to ensure 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 December 1, 2005.

(Committee vote: 4-1-1)

Reported favorably with recommendation of amendment by Senator Cummings for the Committee on Finance upon commitment.

The Committee recommends that the bill be amended by striking out all after the enacting clause and inserting in lieu thereof the following:

Sec. 1.  30 V.S.A. § 8001(a) is amended to read:

§ 8001. RENEWABLE ENERGY GOALS

(a) The 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 80 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:

* * *

Sec. 3.  30 V.S.A. § 8004 is amended to read:

§ 8004.  RENEWABLE PORTFOLIO STANDARDS FOR SALES OF ELECTRIC ENERGY

(a)  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 standard:

(1)  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.

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.

* * *

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.

(7)  Furnaces.

(8)  Boilers.

(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.

(17)  Torchieres.

(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:

Product Type

Minimum Efficiency Level

Natural gas- and propane-fired furnaces

90% AFUE

Oil-fired furnaces

83% AFUE

Natural gas- and propane- fired hot water boilers

84% AFUE

Oil-fired hot water boilers

84% AFUE

Natural gas- and propane- fired steam boilers

82% AFUE

Oil-fired steam boilers

82% AFUE

(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.

§ 2796.  Implementation

(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.

§ 2797.  revised standards

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. 6.  STANDARDS FOR INTERCONNECTION OF DISTRIBUTED GENERATION

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. 7.  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. 8.  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.

(Committee vote: 4-2-1)

AMENDMENT TO S. 52 TO BE OFFERED BY SENATORS SHEPARD, MULLIN AND STARR

Senators Shepard, Mullin and Starr move to amend the proposal of amendment of the Committee on Finance in Sec. 2, 30 V.S.A. §8002(2) by striking out subdivision (C) in its entirety and inserting in lieu thereof a new subdivision (C) to read as follows:

(C)  For purposes of this chapter, the only energy produced by a hydroelectric facility to be is considered renewable shall be from a hydroelectric facility with a generating capacity of 80 megawatts or less.

AMENDMENT TO S. 52 TO BE OFFERED BY SENATORS MULLIN, MAYNARD AND SHEPARD BEFORE THIRD READING

Senators Mullin, Maynard and Shepard move to amend the recommendation of amendment of the Committee on Finance as follows:

First:  In Sec. 3, 30 V.S.A. § 8004, by adding a new subsection to be designated subsection (e) to read as follows:

(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 eliminate that impact, including possible repeal of this section.  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.

Second:  By striking out Sec. 6 [relating to standards for appliances] in its entirety.

Third:  By striking out Sec. 7 [relating to an electricity reliability policy] in its entirety.

Fourth:  By striking out Sec. 8 [amending 30 V.S.A.§218d] in its entirety.

Favorable with Proposal of Amendment

H. 6

An act relating to clinical trials for cancer patients.

Reported favorably with recommendation of proposal of amendment by Senator White for the Committee on Health and Welfare.

The Committee recommends that the Senate propose to the House to amend the bill by striking out all after the enacting clause and inserting in lieu thereof the following:

Sec. 1.  8 V.S.A. § 4088b is amended to read:

§ 4088b.  CLINICAL TRIALS FOR CANCER PATIENTS

(a)  The commissioner shall, after notice and hearing, issue adopt rules and regulations requiring that all health benefit plans issued in this state provide coverage for routine costs for patients who participate in cancer clinical trials.  Any rules or regulations adopted under this section shall:

(1)  be effective for a three-year period commencing March 1 after the effective date of this section;

(2)  Any rules adopted under this section shall be limited to the coverage of routine costs for patients who participate in a cancer clinical trial;.

(3)(2)  Any rules adopted under this section shall be restricted to approved cancer clinical trials conducted under the auspices of the following cancer care providers ("cancer care providers"): Vermont Cancer Center at Fletcher Allen Health Care, the Norris Cotton Cancer Center at Dartmouth-Hitchcock Medical Center, and approved clinical trials being administered by a Vermont hospital and its affiliated, qualified Vermont cancer care providers; and.

(3)  For participation in clinical trials located outside Vermont, coverage under this section shall be required only if the patient provides notice to the health benefit plan prior to participation in the clinical trial and:

(A)  no clinical trial is available at the Vermont or New Hampshire cancer care providers described in subdivision (2) of this subsection;

(B)  the patient already has completed a clinical trial under subdivision (3)(A) of this subsection and the patient’s cancer care provider determines that a subsequent clinical trial related to the original diagnosis is available outside of the health benefit plan’s network and determines participation in that clinical trial would be in the best interest of the patient, even if a comparable clinical trial is available at that time under subdivision (2) of this subsection; or

(C)  the health benefit plan already has approved a referral of the patient to an out-of-network cancer care provider and an out-of-network clinical trial becomes available and the patient’s cancer care provider determines participation in that clinical trial would be in the best interest of the patient, even if a comparable clinical trial is available under subdivision (2) of this subsection.  

(4)  require the cancer care providers and the four largest health insurers, as measured by covered lives in Vermont, to participate in an analysis of cost data at the conclusion of the second full calendar year after enactment to determine the financial impact of the clinical trial pilot program on health care insurance premiums If a patient participates in a clinical trial administered by a cancer care provider that is not in the health benefit plan’s provider network, the health plan may require that routine follow-up care be provided within the health benefit plan’s network, unless the cancer care provider determines this would not be in the best interest of the patient.

 (b)  The commissioner shall present these findings in a report to the general assembly by October 1, 2004.

(c)  As used in this section, "health benefit plan" means any health insurance policy or health benefit plan offered by a health insurer as defined in 18 V.S.A. § 9402(7) subdivision 9402(9) of Title 18.

(d)(c)  The Vermont agency of human services through its Vermont Medicaid program shall participate in the provisions of this section in the same manner as insurers as defined in 18 V.S.A. § 9402(7) subdivision 9402(9) of Title 18.

(d)  Notwithstanding chapter 25 of Title 3, the commissioner shall amend rules adopted under this section for the sole purpose of eliminating any sunset provision in the rule by filing a new adopted rule with the secretary of state and the legislative committee on administrative rules.  The new adopted rule shall be effective when filed.

(Committee Vote: 6-0-0)

(For House amendments, see House Journal for January 20, 2005, page 81.)

CONFIRMATIONS

     The following appointments will be considered by the Senate, as a group, under suspension of the Rules, as moved by the President pro tempore, for confirmation together and without debate, by consent thereby given by the Senate.  However, upon request of any senator, any appointment may be singled out and acted upon separately by the Senate, with consideration given to the report of the Committee to which the appointment was referred, and with full debate; and further, all appointments for the positions of Secretaries of Agencies, Commissioners of Departments, Judges, Magistrates, and members of the Public Service Board shall be fully and separately acted upon.

Lindy E. Caslin of Bennington – Member of the State Board of Education – By Senator Wilton for the Committee on Education.  (1/20)

John Hashagen, Jr. of Brattleboro – Member of the Vermont Economic Development Authority – By Senator Maynard for the Committee on Finance.  (2/9)

Edward T. Ogorzalek of Rutland – Member of the Vermont Educational and Health Buildings Financing Agency – By Senator Maynard for the Committee on Finance.  (2/9)

Leon C. Graves of Fairfield – Member of the Vermont Economic Development Authority – By Senator MacDonald for the Committee on Finance.  (2/16)

Laurie A. Rowell of Brattleboro – Chair of the Valuation Appeals Board – By Senator MacDonald for the Committee on Finance.  (2/16)

Fred Tiballi of Shelburne – Member of the Vermont Hydro-Electric Power Authority – By Senator Ayer for the Committee on Finance.  (2/16)

Nancy Brock of Waterbury Center – Member of the Vermont Hydro-Electric Power Authority – By Senator Ayer for the Committee on Finance.  (2/23)

Richard Mallary of Brookfield – Member of the Vermont Hydro-Electric Power Authority – By Senator Shepard for the Committee on Finance.  (2/23)

Brad Aldrich of Montpelier – Member of the Vermont Hydro-Electric Power Authority – By Sen. Ayer for the Committee on Finance.  (2/24)

David Coates of Colchester – Member of the Vermont Municipal Bond Bank – By Sen. Ayer for the Committee on Finance.  (2/24)

PUBLIC HEARINGS

HOUSE APPROPRIATIONS COMMITTEE

Fiscal Year 2006 Budget Testimony

(1)  Public and advocates:  On  Wednesday, February 23, 2005 from 1:30 p.m. to 4:30 p.m. in Room 11 at the State House, the  House Appropriations Committee will hear from Vermont citizens, including representatives of advocacy groups and other organizations, on the subject of fiscal year 2006 appropriations.  Testimony will be scheduled in advance for 5-minute intervals.  To reserve a time slot, please call the Committee office at 802/828-2251.

Individual Representatives:  The Committee invites all members of the House of Representatives to provide input about the FY 2006 budget on Wednesday morning, February 23.  Please talk to Virginia Catone to schedule a time.

Thursday, February 24, 2005 – House Chamber – 6:00–8:30 P.M.Re:  H. 91 and H. 241, Prohibiting Smoking in all Public Places – Joint Hearing with House General Housing and Military Affairs and House Human Services Committees.

Thursday, March 10, 2005House Chamber – 7-10 P.M. – Re:  Health care system - challenges and solutions – House Committee on Health Care.

REPORTS ON FILE

Pursuant to the provisions of 2 V.S.A. §20(c), one (1) copy of the following reports is on file in the office of the Secretary of the Senate:

95.          Jurisdiction and Duties of Assistant Judges Report of the Legislative Study Committee.  (February 2005).

96.          Lottery Commission Annual Report.  (February 2005).

97.          Program Development-Structures Section.  (Agency of Transportation, Structures Section/Bridge Management Unit).  (February 2005).

98.          Medicaid Enrollment and Adverse Selection Report/Disenrollment Report.  (Agency of Human Services, Department for Children and Families, Economic Services Division).  (February 2005).

99.          “An Independent Study of the Administration of Involuntary Medications Under Act 114 During 2004”.  (Flint Springs Associates).  (February 2005).

100.        Connecticut River Bridge Advisory Commission Annual Report.  (Agency of Transportation, Program Development Division).  (February 2005).

101.        Implementation of Act 114 at the Vermont State Hospital in 2004.  (Department of Health, Division of Mental Health).  (February 2005).

102.        2005 Strategic Plan for AHS Re-organization.  (Agency of Human Services).  (February 2005).

103.        Progress Report on Basin Planning During 2004.  (Agency of Natural Resources, Department of Environmental Conservation).  (February 2005).



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