Montpelier, Vt., district heating plant awarded funding

By Lisa Gibson | May 03, 2012

The district heating project in Montpelier, Vt., has been awarded $1.75 million in grants and loans from the American Recovery and Reinvestment Act program.

The $20 million project will replace and old state-owned district heating plant with a new woody biomass facility, heating the state government complex, as well as city government buildings, schools and other downtown structures. In June, the city approved a $2.75 million bond issue for the project, Vermont lawmakers appropriated $7 million in the Capital Bill toward construction, the state provided $1.2 million of in-kind services through the Department of Buildings and General Services, and $8 million came from the federal Department of Energy. The most recent funding includes a $1 million grant and $750,000 loan from the Clean Energy Development Fund.

“This project is a great example of how federal, state and local cooperative efforts can promote clean, green energy programs that save taxpayers and ratepayers money, while also boosting development and economic growth,” said Governor Peter Shumlin.

 “The heating plant is a great example of a municipality, the state and the federal government working together to promote the use of renewable energy,” said Montpelier Mayor John Hollar. “Montpelier can become a showcase for other cities in the use of a renewable source to heat its business district.  Our downtown business owners could benefit for decades from the opportunity to rely on a reliable, low-cost source of renewable energy to heat their buildings.”