Clean Energy Development Fund (CEDF) (Vermont)

Last modified on February 12, 2015.

Rules Regulations Policies Program

Place	Vermont
Name	Clean Energy Development Fund (CEDF)
Incentive Type	Public Benefits Fund
Applicable Sector	Agricultural, Commercial, Industrial, Institutional, Nonprofit, Residential, Schools
Eligible Technologies	Comprehensive Measures/Whole Building, Anaerobic Digestion, Biomass, CHP/Cogeneration, Fuel Cells, Geothermal Electric, Geothermal Heat Pumps, Photovoltaics, Small Hydroelectric, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Solar Water Heat, Wind, Other Efficiency Measures (not specified), Emerging Energy-Efficient Technologies
Active Incentive	Yes
Implementing Sector	State/Territory
Energy Category	Energy Efficiency Incentive Programs, Renewable Energy Incentive Programs
Charge	Approximately 6 million - 7.2 million annually through 2009; 4.5 million in 2010 and an estimated 3.9M for 2011 and 2012 (through March 2012) Additional money through the American Recovery and Reinvestment Act
Types	Renewables, energy efficiency
Website	http://publicservicedept.vermont.gov/topics/renewable_energy/cedf
Date added to DSIRE	2006-07-27
Last DSIRE Review	2012-11-28
Last Substantive Modification to Summary by DSIRE	2012-06-04
References	DSIRE

Summary

NOTE: The Vermont Clean Energy Development Fund has issued its Five Year Strategic Plan. See the web site for details.

Vermont's Clean Energy Development Fund (CEDF) was established in 2005 to promote the development and deployment of cost-effective and environmentally sustainable electric power and thermal energy resources -- primarily renewable energy, combined heat and power (CHP), thermal, and geothermal energy.

From its establishment to 2012, the CEDF has been supported via annual payments from Entergy (which owns the Vermont Yankee nuclear power plant). In return, under terms of two memoranda of understanding between Entergy and the Vermont Department of Public Service (DPS) that expire in March 2012, Entergy is permitted to store its own spent nuclear fuel at the Vermont Yankee. Historically, the CEDF received approximately $7 million from Entergy annually. However, in 2010 the fund received only $4.5 million from Entergy and approximately $3.9 million in 2011 through the end of the fund (March 2012). Balances in the CEDF are carried forward and may not be used for general obligations of Vermont's government. In addition, the Vermont Recovery and Reinvestment Act mandated that all funding received from the State Energy Program (SEP) and the Energy Efficiency and Conservation Block Grant (EECBG) program from the Federal American Recovery and Reinvestment Act (ARRA) of 2009 be included in CEDF (approximately $31 million in total). Legislation enacted in 2012 authorized $3 million in appropriations from the Vermont general fund to the CEDF as long as the general fund is in the black. That transfer should take place after May 1, 2013.

The CEDF is authorized to support renewable-energy resources, and CHP systems. Eligible renewable-energy systems include photovoltaics; solar-thermal; wind; geothermal heat pumps; farm, landfill and sewer methane recovery; low-emission, advanced biomass; and CHP systems using biomass fuels such as wood, agricultural or food wastes, energy crops and organic refuse-derived waste. (Municipal solid waste is not eligible.) CHP systems must have a design system efficiency of at least 65% and must meet Vermont's air-quality standards in order to qualify. H.B. 781 (June, 2010) authorized the CEDF to support natural gas vehicles and/or fueling infrastructure as well, although no programs have been developed to do so.

The CEDF may be used to support projects that sell power in commercial quantities (especially those projects that sell electricity to Vermont utilities), projects to benefit publicly owned or leased buildings, renewable-energy projects on farms, small-scale renewable energy for homes and businesses, and "effective projects that are not likely to be established in the absence of funding." Super-efficient buildings were included until 2009. The CEDF has provided funding for the Vermont Solar and Small Wind Incentive Program, the CEDF Loan Program, the Business Solar Energy Tax Credits (since expired), the Grant in Lieu of Business Solar Energy Tax Credits (special provision, 2011 only) and the CEDF Grant Program.

The DPS, which originally managed the CEDF, issued a strategic plan for the fund in May 2007. Legislation in 2009 created the Clean Energy Development Board to manage the fund. Legislation in 2011 mandated that the DPS take back administration of the fund, but that Clean Energy Development Board maintans decision-making and approval powers for plans, budgets, and overall program designs and serve in an advisory role on the fund's administration.

The CEDF's 2011 Annual Report is a comprehensive review of the fund's history as well as 2011 activity.

Incentive Contact

Contact Name	Andrew Perchlik
Department	Vermont Department of Public Service
Division	Clean Energy Development Fund
Address	112 State Street, Drawer 20
Place	Montpelier, Vermont
Zip/Postal Code	05620-2601
Phone	(802) 828-4017
Email	Andrew.perchlik@state.vt.us
Website	http://www.state.vt.us/psd

Authorities (Please contact the if there are any file problems.)

Authority 1:	10 V.S.A. § 8015
Date Effective	2005-07-01
Date Enacted	6/21/2005 (subsequently amended)

Authority 2:	H.B. 781 (Act 162)
Date Effective	2013-05-01
Date Enacted	2012-05-17

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.