S.5 - Heat Transitions

For more information regarding the check back language and implementation:

With the end of the legislative session in sight, many bills are making their way to the Floor for final votes after elaborate testimony, committee deliberation, and public input. In the near future S.5 will be presented to the House Floor. S.5, an act relating to affordably meeting greenhouse gas reductions for the thermal sector through efficiency, weatherization measures, electrification, and decarbonization has passed the Senate and is now working its way through the House. The bill recently left the House Environment and Energy Committee and will continue its journey through the Appropriations Committee and soon come to the House Floor for a vote. 

As passed by the Senate, and requested by the governor, the bill requires a check back to the legislature in 2025 before any changes can be implemented. The legislature’s upcoming vote on S.5 will be on whether the Public Utility Commission should further look into the details and design a plan for reducing greenhouse gas emissions in the thermal sector in Vermont. This would kick off a two-year review process that includes public hearings, written comments, legislative reports, Public Utility Commission rulemaking with all stakeholders (including fuel dealers), and another full round of legislative review and approval in 2025. Once all the information and potential plan return to the legislature for review, there will be an opportunity to amend or halt the program before it would begin its implementation in 2026. This addition of a legislative check back is one of the multiple changes that sets this bill a part from the clean heat standard bill from the 2021-2022 session.

Currently, there is information being circulated that S.5 would increase fuel prices. Simply put, we are unsure of the potential costs. The detailed studies and plan design required by the bill would provide a clear picture of any estimated impacts on fuel prices. If fuel prices are estimated to rise, requirements can be loosened and the plan be adjusted or stopped. The legislature hopes to receive a detailed plan that would help people efficiently weatherize their homes, transition to diverse renewable energy when ready, and overall pay less for heating fuel, which is one of the most expensive ways to heat a home.

Climate change is already apparent in Vermont, and the effects continue to grow. We need to consider how we stay warm during the winter months while continuously keeping affordability in mind. With over 34 percent of Vermont’s greenhouse gas emissions coming from the heating sector, the transition to diverse renewable energy must be considered. 

When it comes to energy, there is no one size fits all option or a perfect zero-emission choice. Fossil fuels are an option that our future cannot sustain, both financially and environmentally. Our current fuel market is unpredictable and continues to fluctuate due to forces outside of our control. Through careful and considerate plan design that meets the needs of all Vermonters, thoughtful investments in weatherization, climate mitigation, and transitions to diverse renewable energy can be made, which ultimately can serve to both increase heating affordability and decrease greenhouse gas emissions in Vermont. 

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2023 End of Session Report

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