Vt. towns eligible for $1.8 million in energy grants
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By Peter Hirschfeld Vermont Press Bureau - Published: November 21, 2008
MONTPELIER – The state will use money from a court settlement to fund renewable energy grants in towns across the state.
Vermont won $1.8 million as part of an eight-state settlement with American Electrical Power Group. The state will disburse the funds, to arrive in five annual installments of $360,000, to municipalities pursuing energy projects that would result in a measurable reduction in greenhouse gas emissions.
Gov. James Douglas on Thursday said the initiative was in line with recommendations from his own Commission on Climate Change, which encouraged new financial incentives to combat global warming.
"These grants will help our own communities move forward with initiatives to save energy, save money and encourage the creation of good green jobs," Douglas said.
Douglas and the Legislature earlier this year cut $1.2 million from the state's Clean Energy Development Fund, a reserve funded by the owners of Vermont Yankee that is intended to promote the creation of renewable energy projects in the state.
Restrictions on the use of the settlement money, an administration official said, prevent the state from filling the hole in the Clean Energy Development Fund.
"The use of this money is governed by a consent decree which sets forth settlement terms between American Electrical Power Group and the state involved in the litigation," said Commissioner of Environmental Conservation Laura Pelosi. "It's a fairly narrow set of uses outlined in that agreement and this is the best way to ensure we were complying with the terms and conditions in that consent decree."
Towns are eligible for grants of up to $12,000 for projects that bolster energy efficiency in municipal buildings, vehicle fleets and other town infrastructure. The grants, which require a 10-percent local match, also can be applied toward power-generation projects such as biomass, solar and wind. Nonprofit organizations also are eligible for the funds.
The settlement was awarded after the American Electrical Power Group was found to have violated the federal Clean Air Act.
Requests for Proposal will be issued by the Agency of Natural Resources in December, and awards are expected to be announced by early March.
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