House committee reviews Vermont’s renewable energy standard and Act 179 updates

Legislative counsel Chipowski gave the House Energy and Digital Infrastructure Committee a statutory overview of Vermont’s Renewable Energy Standard (RES) and the changes made last year by Act 179, saying, “I’m going to give you an overview of the renewable energy standard, including the updates that the legislature made last year in Act 179.”

The presentation summarized where the RES appears in law (30 VSA, chapter 189), how retail electricity providers must comply (by owning renewable generation, buying renewable energy credits, or both), and several program details the committee asked to consider further, including REC banking, alternative compliance payments and how those payments are used. Chipowski noted that Act 179 modified several definitions and targets in the statute.

Why it matters: the RES sets multi-decade obligations that shape utilities’ procurement and customer programs. Changes in Act 179 affect which resources count as “new” renewables, how utilities of different sizes comply, and where penalty dollars must be directed.

Chipowski walked the committee through the RES definitions first. Under the statute the committee reviewed, “renewable energy” includes conventional resources such as solar, wind, and hydro, and explicitly excludes nuclear. Methane from landfill or wastewater and certain biomass fuels are counted as renewable; other solid waste is not. Act 179 moved the cutoff for “new” renewable energy back to facilities placed in service after Jan. 1, 2010 (it had previously been a later date), and it added that large hydroelectric facilities with 200 MW or greater capacity are excluded from the “new” category even though they remain renewable.

The counsel then described the five-tier compliance structure that determines how utilities meet the RES. Tier 1 covers total portfolio renewable percentage (the statute sets increasing targets, starting at 63% in 2025 and rising toward 100% over time). Tier 2 targets distributed generation (new, under-5 MW, distribution‑connected resources and certain utility-owned hydro under conditions), Tier 3 covers energy-transformation measures (electrification, weatherization and other fossil‑fuel reductions credited by an agency formula), Tier 4 requires additional new renewable resources (any size), and Tier 5 addresses load growth after a utility reaches 100% renewable.

Chipowski highlighted that the statute treats utilities differently based on type and size. Vermont has 18 distribution utilities referenced in the presentation: an investor‑owned utility (Green Mountain Power), two electric co‑ops (Vermont Electric Co‑op and Washington Electric Co‑op), 14 municipal utilities (11 of which participate in the Vermont Public Power Supply Authority), plus three municipal utilities not in that authority (Burlington Electric Department, Stowe Electric Department and the Village of Hyde Park Electric Department). He noted three utilities—Burlington Electric Department, Washington Electric Co‑op and Swanton—were already at 100% renewable under the statute’s accounting.

The presentation called out GlobalFoundries’ special status: it is recognized in statute as a utility with a single large customer and separate treatment under the RES; Act 179 clarified how requirements apply to that utility type. Chipowski also said the Public Utility Commission and the Department of Public Service track compliance details, REC prices and program implementation and will provide the committee with operational and price data in later panels.

On enforcement and payments, Chipowski said the RES provides an alternative compliance payment for utilities that miss annual obligations; those funds flow to the Clean Energy Development Fund and, per Act 179, must be spent on projects in a utility’s service territory when feasible. He told the committee that, historically, utilities have complied with annual requirements and there has been only one instance of an alternative compliance payment, characterized as a small rounding error.

The committee did not take votes on the statute during the walkthrough. Members asked clarifying questions—one asked what VPSA stands for and Chipowski responded that VPSA means the Vermont Public Power Supply Authority, a union of 11 municipal utilities—and the committee scheduled agency testimony and additional panels to explore implementation details, price impacts and utility‑specific compliance paths.

The session closed with committee members thanking counsel and noting the need for follow‑up briefings from the Department of Public Service and the PUC on operational details and REC pricing.