Vermont Senate Pushes to Expand Clean Heat Standard Amid Emissions Fight

MONTPELIER — The Vermont Senate passed legislation this week to expand the Clean Heat Standard, building on the 2023 Affordable Heat Act (S.5) that took effect May 11, 2023. The original act, sponsored by Sen. Christopher Bray, D-Addison, directed the Public Utility Commission to design a program requiring fossil fuel importers — defined as utilities or entities that import, produce or refine heating fuels in Vermont — to retire clean heat credits annually. These credits represent emissions reductions from measures like heat pump installations and home weatherization, aligning with the Global Warming Solutions Act's mandates to cut thermal sector emissions by specific targets through 2050.

Under the expanded bill, obligated parties must retire credits equivalent to a portion of their prior year's fossil fuel deliveries, with at least 16% sourced from low-income customers to ensure equitable access. The PUC, tasked with creating a credit marketplace and holding six public hearings, was set to deliver final rules by January 2025 for legislative approval and potential gubernatorial sign-off — or a two-thirds veto override. Vermont's thermal sector accounted for more than one-third of 2018 greenhouse gas emissions, mostly from imported oil, propane and gas used in homes and businesses statewide, from Burlington rowhouses to rural Addison County farms.

The push comes as the PUC nears completion of its rulemaking, with proposed details addressing cost impacts and safeguards against harmful outcomes. Noncompliance triggers payments to the Department of Disabilities, Aging and Independent Living, while the program incentivizes cleaner options without directly taxing residents. Lawmakers refined the initial two-year process launched in 2023, aiming to minimize customer costs and protect public health amid Vermont's harsh winters.