Historically, Vermont utilities have managed the process of environmental assessment and permitting for upgrades to existing distribution infrastructure when new renewable energy projects are interconnected. Increasingly, ANR is requiring developers to conduct an environmental assessment of the entire upgrade corridor as part of the CPG process and is attaching conditions related to these upgrades to the CPG.
This change in practice by ANR creates multiple problems in the permitting process without providing any additional environmental benefits and treats renewable energy projects less favorably than other types of development. Problems with the new ANR requirements include:
- Lack of Access to the Land that Must Be Assessed: Project developers do not own, lease, or have a right to access the land under existing distribution infrastructure. If the landowner of this property refuses access to it, conducting an environmental assessment becomes impossible
- Sequencing: Because ANR’s new procedure requires the environmental assessment to be conducted prior to the completion of permitting, it increases the burden on utility staff time and the risk for developers since time-consuming distribution upgrade studies must be completed for projects that may never be successfully permitted
- Legal uncertainty: Because ANR’s new procedure places conditions on the permit of the developer for work done by the utility, it creates a legal obligation for the developer for actions that the developer cannot control
REV is working to promote legislation to make it explicit that the environmental review for distribution upgrades for Section 248 projects should be left to the utilities, as is the case with other types of development. This legislation would:
- Reestablish parity between Act 250 and Section 248 project: Renewable energy development will face the same scrutiny as other forms of development rather than experiencing added hurdles
- Return to historical practices: While ANR cites an early Cow Power case as the precedent for these requirements, it has not been, and is not now, standard procedure for Section 248 projects
- Leave the financial responsibility of developers unchanged: Developers remain responsible for the full cost of the distribution upgrades performed by the utilities including all planning, study, materials, and labor costs
See more here.