Vermont’s Act 54 (2021) and Responsive Proceeding

In June, 2021, Vermont enacted Act 54, granting the Vermont Utility Commission the authority to adopt rules that integrate storage resources into the grid, where they can act as both sources and sinks of energy, smooth load curves, and facilitate the greater penetration of intermittent renewables. Specifically, Act 54 lowered the threshold for storage facilities seeking a certificate of public good (CPG) from 500 kW to 100 kW and directed the VCC to establish a simplified application process for energy storage facilities with a capacity of up to 1 MW. These provisions will tend to encourage energy storage devices to operate in the state and be well-integrated into transmission and distribution networks.

On September 17, 2021, the Vermont Utility Commission initiated a responsive proceeding. to develop rules governing the installation and operation of energy storage facilities. In this proceeding, the Commission plans to explore how to simplify the siting process for storage, how to treat aggregations and interplay between owners, operators, and utilities, how energy storage can help shift renewables to cover peak times, and how the benefits of energy storage can be shared equitably with disadvantaged communities.