FIRST STATE F-I-T

Vermont FITs Become Law: The Mouse That Roared; First North American Jurisdiction with Small Wind Tariff
Paul Gipe, May 28, 2009 (Wind-Works)

"Vermont's feed-in tariff legislation became law… May 27, 2009…H. 446 is the first legislation calling for a full system of advanced renewable tariffs in the US to pass the legislature and become law. The bill includes changes to Vermont's Sustainably Priced Energy Enterprise Development Program (SPEED) that would implement a pilot feed-in tariff policy.

"Vermont's action follows closely on that of the Ontario provincial legislature's groundbreaking Green Energy Act and with several states considering similar legislation, the Green Mountain state could be the tipping point for a rapid succession of feed-in tariff policies across the continent."

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"It may be small states, such as Vermont, and municipalities, such as Gainesville, Florida, that could drive new renewable energy policy in the US and not the big states of California or Florida that are hopelessly embroiled in partisan stalemates…Unlike the policy in Washington State and the crude feed-in tariff in California, Vermont's legislation bases the tariffs on the cost of generation plus a reasonable profit…Costs of the program in Vermont are borne by ratepayers, not taxpayers…

"One unique feature in the Vermont program not found in Ontario is a specific tariff for small wind turbines, those less than 15 kW. Though several bills have contained proposed tariffs for small wind turbines, Vermont's legislation is the first to become law with long term contracts. The tariff of $0.20/kWh is the highest in North America...Though it has a low program cap of only 50 MW, Vermont's feed-in tariff policy is a serious commitment by a state of its size. Vermont has a population of little more than 600,000…"

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"As the technology progresses, Vermont renewable energy advocates expect the tariffs will decrease. The bill directs the Vermont Public Service Board to review and reset the tariffs every two years. The first review begins September 15, 2009…

"Under Vermont law [Republican Governor James Douglas] had the choice to sign the legislation into law, veto the bill, or to let it become law without his signature. He chose the latter course…The effort now shifts to the Public Service Board to ensure that the hard won progress on tariff setting is not lost in the regulatory fog."