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Tariff investigation causes disruptions for Vermont solar companies

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Tariff investigation causes disruptions for Vermont solar companies


The photo voltaic array at Crossest Brook Center Faculty in Duxbury on Wednesday, August 25, 2021. Picture by Glenn Russell/VTDigger

Thomas Hand, co-founder of Manchester-based MHG Photo voltaic, is having hassle discovering panels to finish a photo voltaic mission that may energy a lot of the municipal buildings in Truthful Haven. 

Disruptions within the photo voltaic provide chain have created huge challenges that now stand in the best way of the 500-kilowatt mission’s completion, which is  greater than two-and-a-half years within the works. 

Hand isn’t alone: As a result of a brand new U.S. Division of Commerce investigation, many photo voltaic panels have evaporated from the market. Consequently, representatives from photo voltaic corporations across the state have stated their tasks have come to a standstill.  

Trade leaders say the affect from the potential new tariff may have an effect on jobs related to Vermont’s photo voltaic business and, throughout the nation, stymie progress towards assembly local weather and renewable power objectives.

The investigation “might be having an affect on everybody” in Vermont’s photo voltaic business, stated Jim Merriam, CEO of Norwich Photo voltaic, primarily based in White River Junction. 

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On the finish of March, the Biden administration introduced a brand new probe into whether or not China is avoiding tariffs that apply to photo voltaic panels by routing a few of its enterprise by way of producers in southeast Asia, which then promote to the U.S. 

Merriam has labored with corporations from southeast Asia that are actually being investigated, and one firm threatened to cancel an order, he stated. 

Norwich Photo voltaic builds tasks in Vermont, New Hampshire and Maine and employs round 35 folks and “dozens and dozens of subcontractors and their staff,” he stated.

“When you may have an injection of variability on what panel goes for use, it ripples by way of the entire design, and simply provides danger all over the place, as a result of the mission is so centered round what producer and mannequin or panel you are utilizing,” Merriam stated.  

Costs for out there panels are going up, Hand stated. As of early April, he stated the value of 1 445-watt panel elevated from round $175 to $225. 

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Hand, studying an electronic mail he obtained from Trina, a photo voltaic firm headquartered in China, stated the corporate is in a “holding sample” till the investigation is resolved.

China dominates the world’s photo voltaic market. In an effort to deal with commerce practices that place United States producers at an obstacle, the Trump administration first levied tariffs in opposition to photo voltaic merchandise coming from China. Biden prolonged the coverage earlier this 12 months, with some modifications. 

In February, Auxin Photo voltaic Inc., a California-based photo voltaic firm, filed a petition asking the U.S. Division of Commerce to research sure imports of photo voltaic cells and panels from southeast Asia. The inquiry applies to Cambodia, Malaysia, Thailand and Vietnam, in line with a discover from the Worldwide Commerce Administration, which is a part of the Division of Commerce. 

Heather Zichal, CEO of American Clear Energy Affiliation, and a former power and local weather change adviser to former President Barack Obama, informed The Related Press that the investigation may have an effect on as a lot as 80% of the photo voltaic panel provide to the US. 

In the course of the evaluation interval of the investigation, which she known as “egregious” in an op-ed on the group’s web site, tariffs of “as much as 250% are successfully utilized to the vast majority of America’s photo voltaic module provide — artificially elevating the whole value of home photo voltaic tasks to a degree that primarily freezes mission building,” she wrote.

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Concern of the expanded tariffs, which could possibly be retroactive, has prompted many corporations to cease delivering to the US, business leaders say.

In response to claims from photo voltaic corporations in regards to the dealing with of the investigation, Kevin Jones, director of the Institute for Power and the Surroundings at Vermont Legislation Faculty, objected to the concept that the administration shouldn’t “comply with the legislation and and truthfully examine claims which might be delivered to them legally.”

“To me, there’s nothing however belief we should always have within the Biden administration and the Commerce Division to have a look at this by way of following the legislation and the most effective pursuits of the U.S. within the clear power business,” he stated. 

Peter Sterling, government director of Renewable Power Vermont, an business group that represents photo voltaic and different renewable corporations, stated many within the business are searching for extra certainty in regards to the investigation and when a call may come. 

“If there’s an concept of what the scope of that ruling could be, that helps everybody plan,” he stated. 

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Paul Lesure, co-founder and president of Inexperienced Mountain Photo voltaic, primarily based in South Burlington, stated the investigation impacts the corporate not directly. Inexperienced Mountain Photo voltaic works totally on residential tasks, he stated, and usually buys panels from corporations in South Korea, or from U.S. corporations which have manufacturing amenities in Vietnam and Singapore — not these being investigated.

The investigation is squeezing the market, he stated. Those that can’t purchase panels from the businesses being investigated are turning to the remaining producers. 

“So these different individuals are shifting to the panels we’d truly be utilizing,” Lesure stated, “inflicting provide chain points and value hikes for us as nicely.”

Slightly than counting on a gentle stream of panels, the corporate might must take out a mortgage, for instance, to “attempt to purchase panels up once we can get them in order that we will proceed to ship for patrons,” he stated. 

Sterling is annoyed by the impacts of the investigation. Nonetheless, he stated he understands that the Biden administration was obligated to research Auxin Photo voltaic’s claims. 

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Lengthy-term insurance policies and “huge public funding” are wanted to assist a home manufacturing business in the US, he stated, and till these insurance policies are established, will probably be troublesome for photo voltaic corporations to proceed constructing out tasks with no regular movement of panels. 

“We’re, minimal, three — in all probability 5 years away from having a very viable home photo voltaic economic system that may meet our wants,” Sterling stated. 

“You may’t simply kneecap a whole business that is attempting to cease local weather change,” he added.

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Vermont

Vermont state police seek help locating 60-year-old Enosburg man – Newport Dispatch

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Vermont state police seek help locating 60-year-old Enosburg man – Newport Dispatch


ENOSBURG — Vermont State Police are seeking assistance in locating John Reynolds, 60, who has not been seen since Nov. 13.

Reynolds is believed to be in the Enosburg/Berkshire area.

While there are no signs that he is in immediate danger or that his absence is under suspicious circumstances, concerns have been raised regarding his welfare.

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Authorities are urging anyone who might have information about Reynolds’ whereabouts to reach out to the VSP St. Albans at (802) 524-5993.



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US Chamber, oil industry sue Vermont over law requiring companies to pay for climate change damage

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US Chamber, oil industry sue Vermont over law requiring companies to pay for climate change damage


The U.S. Chamber of Commerce and a top oil and gas industry trade group are suing Vermont over its new law requiring that fossil fuel companies pay a share of the damage caused over several decades by climate change.

The federal lawsuit filed Monday asks a state court to prevent Vermont from enforcing the law, which was passed last year. Vermont became the first state in the country to enact the law after it suffered catastrophic summer flooding and damage from other extreme weather. The state is working to estimate the cost of climate change dating back to Jan. 1, 1995.

The lawsuit argues the U.S. Constitution precludes the act and that the state law is preempted by the federal Clean Air Act. It also argues that the law violates domestic and foreign commerce clauses by discriminating “against the important interest of other states by targeting large energy companies located outside of Vermont.”

The Chamber and the other plaintiff in the lawsuit, the American Petroleum Institute, argue that the federal government is already addressing climate change. And because greenhouse gases come from billions of individual sources, they argue it is impossible to measure “accurately and fairly” the impact of emissions from a particular entity in a particular location over decades.

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“Vermont wants to impose massive retroactive penalties going back 30 years for lawful, out-of-state conduct that was regulated by Congress under the Clean Air Act,” said Tara Morrissey, senior vice president and deputy chief counsel of the Chamber’s litigation center. “That is unlawful and violates the structure of the U.S. Constitution — one state can’t try to regulate a global issue best left to the federal government. Vermont’s penalties will ultimately raise costs for consumers in Vermont and across the country.”

A spokesman for the state’s Agency of Natural Resources said it had not been formally served with this lawsuit.

Anthony Iarrapino, a Vermont-based lobbyist with the Conservation Law Foundation, said the lawsuit was the fossil fuel industry’s way of “trying to avoid accountability for the damage their products have caused in Vermont and beyond.”

“More states are following Vermont’s lead holding Big Oil accountable for the disaster recovery and cleanup costs from severe storms fueled by climate change, ensuring that families and businesses no longer have to foot the entire bill time and time again,” Iarrapino added.

Under the law, the Vermont state treasurer, in consultation with the Agency of Natural Resources, is to issue a report by Jan. 15, 2026, on the total cost to Vermonters and the state from the emission of greenhouse gases from Jan. 1, 1995, to Dec. 31, 2024. The assessment would look at the effects on public health, natural resources, agriculture, economic development, housing and other areas. The state would use federal data to determine the amount of covered greenhouse gas emissions attributed to a fossil fuel company.

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It’s a polluter-pays model affecting companies engaged in the trade or business of extracting fossil fuel or refining crude oil attributable to more than 1 billion metric tons of greenhouse gas emissions during the time period. The funds could be used by the state for such things as improving stormwater drainage systems; upgrading roads, bridges and railroads; relocating, elevating or retrofitting sewage treatment plants; and making energy efficient weatherization upgrades to public and private buildings. It’s modeled after the federal Superfund pollution cleanup program.

The approach taken by Vermont has drawn interest from other states, including New York, where Gov. Kathy Hochul signed into law a similar bill in December.

The New York law requires companies responsible for substantial greenhouse gas emissions to pay into a state fund for infrastructure projects meant to repair or avoid future damage from climate change. The biggest emitters of greenhouse gases between 2000 and 2018 would be subjected to the fines.



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With major changes to Act 250 underway, a new board takes the reins

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With major changes to Act 250 underway, a new board takes the reins


This story, by Report for America corps member Carly Berlin, was produced through a partnership between VTDigger and Vermont Public.

Gov. Phil Scott has appointed the members of a new board that will administer Act 250, Vermont’s statewide development review law.

The new Land Use Review Board replaces the old Natural Resources Board, a shift mandated under Act 181, a major land-use reform law passed last year. That law takes steps to relax Act 250’s reach in existing downtowns and village centers across the state, and also lays the groundwork for extending Act 250’s protections in areas deemed ecologically sensitive.

But the new law also changes how Act 250 is administered. The Land Use Review Board is made up of five full-time members with relevant professional experience — a significant change from the former citizen-board structure. The new members have backgrounds in municipal and regional planning, environmental law, and civil engineering. The review board will also play a key role in overseeing a years-long mapping process that will cement Act 250’s jurisdiction in the future. (Regional district offices still make permitting decisions on individual projects, however).

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“Vermont faces a significant housing crisis and the work of this board will play a very important role in helping us address it, while protecting our beautiful landscape and environment,” Scott said in a statement announcing the appointments earlier this week. “I’m confident this board has the diverse expertise, work ethic, and passion to tackle the work that’s required in Act 181 while also forwarding common sense improvements to the law to further our shared goals.”

The new board chair, Janet Hurley, currently serves as the assistant director and planning program manager for the Bennington County Regional Commission. Before that, she worked as a local planner throughout the state, in Manchester, South Burlington, Milton, and Westford, according to a press release from Scott’s office.

Since Act 250 was enacted in 1970, “it can certainly be credited with saving Vermont from rampant development,” Hurley said in an interview. “But it can also certainly be responsible for the depth of our housing crisis, because the burden of Act 250 permitting — often duplicative, especially in our town and village centers — just made housing development that’s affordable much more difficult to achieve for so many years.”

In the past, new housing projects would trigger Act 250 review based on how large they were, and how many homes a developer had already built in a given area during a given timeframe. That system could in fact lead to the sprawl it was trying to prevent, prompting developers to avoid bumping up against Act 250 permitting by building “smaller scale, single family home development dispersed around our towns and villages,” Hurley said.

Act 181 shifts the permitting program toward “location-based jurisdiction,” meaning some areas of the state that already have robust local zoning review and water and wastewater infrastructure could be exempt from Act 250 altogether. That new system will take years to implement, though, and the transition will be one of the board’s primary tasks.

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As that longer process plays out, lawmakers made temporary exemptions to Act 250 last year. They were designed to encourage dense housing in already-developed areas, and so far, the carve-outs appear to be working as intended. Hurley thinks loosening Act 250’s rules around housing will make a big difference.

“The market just can’t bear the cost of construction at this point, and so any relief to the financing of new housing development is going to be meaningful,” Hurley said.

More from Vermont Public: Vermont loosened Act 250 rules for housing. Here’s where developers are responding

Still, members of the board think Act 250 will continue to play an important role in years to come.

“The housing crisis requires us to act swiftly, and that means a lot more housing, period,” said Alex Weinhagen, current director of planning and zoning in Hinesburg and another new board member. “But larger projects have impacts, and the whole point of having a development review process is to make sure that we acknowledge those and that the projects, you know, do what they can to minimize them.”

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To Weinhagen, Act 181’s goals were to reform statewide development review so that “it’s smarter, it works better, it’s applied consistently across the state, and it’s only used when it’s needed — and not used in places where there’s adequate local level development review happening,” he said.

The board will study whether appeals of Act 250 permits should be heard by the board itself — or continue to be heard in state environmental court. Legislators and administration officials hotly debated the issue last session, arguing over which option would in fact speed up lengthy appeal timelines, and ultimately directed the new board to assess it further.

The other members of the new board include L. Brooke Dingledine, an environmental attorney in Randolph; Kirsten Sultan, an Act 250 district coordinator in the Northeast Kingdom with a background in engineering; and Sarah Hadd, a former local planner and current town manager for Fairfax, according to the press release.

The new board appointments took effect on Jan. 1, and the board will begin its work on Jan. 27.

Have questions, comments or tips? Send us a message.

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