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Clean Heat Standard Passed by Vermont Senate Committee

February 24, 2023

On 2/17, the Senate Committee on Natural Resources and Energy unanimously passed S.5 out of committee.

Clean Heat Standard Passed by Vermont Senate Committee

The bill will effectively create a cap-and-trade system in which all heating fuels in the state, with the exception of transportation fuels, would need to participate. Under this program, those who import heating fuels into the state are defined as “obligated parties” and are required to reduce greenhouse gas emissions attributable to the Vermont thermal sector by retiring required amounts of tradeable clean heat credits. They can either purchase or deliver eligible clean heat measures to meet the thermal sector portion of the greenhouse gas emission reduction obligations of the Global Warming Solutions Act. The legislation is seen as necessary by many due to the previous passage of the Global Warming Solutions Act, which created a statutory obligation for the state to meet greenhouse gas reduction goals or face potential legal consequences of this heating act. The fallout of missing these goals would be that state agencies would have emergency rulemaking authority and might resort to draconian measures to meet the statutory obligations. Still, many are disappointed in the program marching forward under the banner of “heating” and “thermal” use while, through its definitions, pulling in all fuels, including “process fuels,” which will add cost to sectors such as farming, construction, and manufacturing. How much will it cost? If it costs too much, will you stop it from going forward? Those are the questions plaguing the Clean Heat Standard, or as it’s been renamed, the Affordable Heating Act (AHA). This week, the Senate Committee on Appropriations considered the bill passed out of the Senate Natural Resources and Energy Committee on Feb. 17.

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Clean Heat Standard Passed by Vermont Senate Committee

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