30 V.S.A. § 8002-8005 establish a renewable energy standard (RES) that Vermont electric distribution utilities are required to meet. Under the RES, Vermont’s distribution utilities must procure a defined percentage of their annual load from renewable energy. The RES has been in place since 2017 and was updated in 2024 by Act 179. The requirements of the RES are broken into five categories, or tiers, as follows:
Tier I
Tier I requires that Vermont electric distribution utilities procure a defined percentage of their annual load from renewable energy. In 2025, a minimum of 63% of a utility's energy supply must consist of renewable energy. This amount increases each year until reaching 100% in 2030 for all utilities, except for GF Power (Global Foundries' utility) and the municipal electric utilities, for which the requirement reaches 100% in 2035. To satisfy this requirement, a utility may use tradeable renewable energy credits generated by any renewable energy plant whose energy is capable of delivery in New England.
Tier II
Tier II requires a defined percentage of the renewable energy that electric distribution utilities use to satisfy Tier I be from distributed renewable generation. For purposes of the RES, distributed renewable generation is defined as electric generation facilities that have a plant capacity of 5 MW or less and are directly connected to an electric utility's subtransmission or distribution system, or have been identified in an approved plan to defer transmission upgrades, or are net-metering systems, provided the utility owns the renewable energy credits associated with the system. Additionally, to qualify under this Tier of the RES, facilities must have commenced operation on or after January 1, 2010 (excluding certain hydroelectric facilities owned and operated by electric distribution utilities). In 2025, a minimum of 5.8% of a utility's renewable energy must come from Tier II sources. This amount increases each year until reaching 20% in 2032 for all utilities, except for GF Power (Global Foundries' utility) and the municipal electric utilities, for which the requirement reaches 20% in 2035
Tier III
Tier III requires that electric distribution utilities either procure additional new distributed renewable energy consistent with the requirements of Tier II, above, or acquire fossil-fuel savings through energy transformation projects. Energy transformation projects are those that reduce the fossil-fuel consumption of a utility's customers and the greenhouse gas emissions associated with that consumption. In 2025, utilities, except for certain municipal electric utilities, must procure either the amount of distributed renewable energy or fossil-fuel savings equivalent to 7.33% of their annual load, increasing by two-thirds of a percent each year until reaching 12% in 2032. For municipal electric utilities serving not more than 7,000 customers, the requirement is 6% in 2025, increasing by two-thirds of a percent each year until reaching 10 2/3% in 2032.
Tier IV
Tier IV requires that a defined percentage of the renewable energy that electric distribution utilities use to satisfy Tier I be from new regional renewable energy; the percentage varies by utility. For purposes of the RES, new regional renewable energy means renewable energy from a plant that came into service after January 1, 2010, and whose energy is capable of delivery in New England.
- The utilities that are "100% renewable", as defied in 30 V.S.A. § 8005(b)(1), are exempt from this requirement,
- For Green Mountain Power Corporation, the requirement is 4% in 2027 and ultimately reaches 20% in 2035, and
- For all other utilities, the requirement is 5% beginning in 2030 and increases to 10% in 2035.
Tier V
Tier V requires certain utilities to satisfy their load growth above a particular year with energy from facilities that qualify under Tier II or Tier IV - that is, distributed renewable energy or new regional renewable energy. The requirements are:
- For the 100% renewable utilities, the requirement in 2025 is 50% of a utility's load growth above its 2024 calendar year load and gradually increases through 2035.
- For Green Mountain Power Corporation and the member utilities of VPPSA (excluding any utility that is a 100% renewable utility), the requirement begins in 2036 and is 100% of a utility's load growth above its 2035 calendar-year load.
RES Implementation and Tiers I, II, and IV Qualification Registration Form
The Commission implements the RES using Rule 4.400, the Renewable Energy Standard Rule, and the Order Regarding Updated Processes for Qualifying Facilities for the Vermont RES. Note, some aspects of Rule 4.400 may be outdated due to the changes to the RES made under Act 179. Until the Rule is updated, the RES statute controls in those situations in which a provision of the Rule is inconsistent with the statute.
Facilities seeking to be qualified under Tiers I, II, or IV of the RES may seek a statement of qualification by filing a RES Qualification case in ePUC. For more about qualifying as a Tier I, II, or IV facility, see Section 4.406 of Rule 4.400 and the Order Regarding Processes for Qualifying Facilities for the Vermont RES (linked to above).