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Energy Bill Powers Through Committee Hearings

April 7, 2009 — After stalling in committee last year, a comprehensive 28-page renewable energy bill aimed at cutting the territory's dependence on fossil fuel is making a fresh run through the Legislature with hearings on all three islands.
The first two meetings of the Senate's Economic Development, Energy and Technology Committee were held last week and will wrap up Wednesday with a final hearing on St. Croix. The bill, sponsored by Sen. Louis P. Hill, spent three solid years in the drafting and review process before hitting the Senate floor last June. Since then, it has been amended to include suggestions provided by the V.I. Water and Power Authority, the V.I. Energy Office and local renewable energy experts such as Onaje Jackson, who spoke at one of the committee meetings held last week on St. John.
Collaboration with the federal government has also resulted in a memorandum of understanding that could directly tie into Hill's proposal. During one of last week's hearings, Hill announced that the U.S. Energy Department has chosen the Virgin Islands as a pilot project participant in its Energy Development in Island Nations program, which advocates the advancement of "clean energy development and deployment in specific regions and islands," according to the program's website.
Federal economic stimulus money can also be used to finance rebates — and cover up to 100 percent of the cost — for residents installing solar water heaters or other renewable energy systems, Hill said recently. The bill contains a mandate for energy efficient construction, which includes using solar water heaters to meet 70 percent of the energy needs for newly built government, residential and commercial structures.
A proposed lease-to-own program through WAPA developed last year by the V.I. Renewable Energy Organization was also discussed during last week's hearing on St. John. Through the program, local residents can purchase, with no money down, a solar water heating system that would be paid off each month by a portion of the savings on their electric bill, according to Jackson, the organization's president.
While the financing component still needs to be worked out, the bill does lay out a rebate structure for residents and businesses installing a solar water heating system, a photovoltaic system, wind energy or other renewable energy system. Renewable energy equipment shipped into the territory will also be exempt from customs duties and excise tax, according to the bill.
The bill also sets up an interagency advisory committee within the V.I. Energy Office whose members will give input on the development of energy-related programs, the use of solar or other renewable energy resources and how energy-related federal or local funds should be used.
The bill also has a training component, with the creation of a program under the V.I. Career and Technical Education system for the construction of solar water systems.
The installation of solar water heaters in government buildings, the creation of energy-efficient leases for government office space and the establishment of a plan to put more energy-efficient government vehicles on the roads are also components of the bill.
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