The Senate Natural Resources Committee got a first look at S.305 on Wednesday, which deals with changes to the Public Utilities Commission (PUC) as we have profiled in other reports. Senator Bray described the bill to the Committee as “things all PUC related rolled into one bill.” It re-ups a three-year Energy Efficiency pilot program (but removes all oversight), provides “consistent funding” to said program, and updates key deadlines in the Clean Heat Standard (CHS).

Senator Bray provided an overview of S.305 to the Senate floor on Wednesday afternoon. He described the bill as creating a number of fixes. He reminded Senators that they had passed the Energy Efficiency Modernization Act in 2020, which was a three-year pilot program allowing electrical efficiency utilities to use $2M of efficiency charge money for pilot projects focused on energy reduction. However, the climate crisis is being driven by the thermal sector and transportation so they asked them to see if they could find solutions in these areas.

On Tuesday, the Senate Natural Resources Committee began taking testimony from the Public Utilities Commission, department of Public Service, and Vermont Energy Investment Corporation beating (very carefully) around the bush regarding their worries about the June 1 statutory date to hire a Default Delivery Agent for Act 18 (the Clean Heat Standard). At first it was comments like “we’re just sharing others’ concerns” or “we’re neutral on the date, but….” However, by the end of the conversation the language had become “It’s unrealistic” and “it’s not going to work.”

The Senate Natural Resources Committee convened their first meeting of the session on Thursday. Chairman Bray went around the room asking each member of the Committee what their top priorities were.

The clean heat standard (which many have called a carbon tax) was undoubtedly the most controversial law passed during the 2023 legislative session. While its aim is a worthwhile reduction in carbon emissions from home heating, the mechanism employed raises the cost of heating fuels for households still using carbon-based fuels.

The House took up S.5 on Thursday to override the Governor’s veto of the bill.

The bill creating the Clean Heat Standard, S.5, made it back to the Senate Floor on Thursday. Senator Bray went through the differences between the House and Senate versions of the bill:

The bill creating a carbon-pricing scheme, known as the Clean Heat Standard (CHS), reached the House floor on Thursday. Representative Sibilia presented the bill on behalf of the Environment & Energy Committee.

She described the bill as having the Public Utility Commission (PUC) develop the marketplace and rules for implementing the CHS. They will provide the 2025 legislature and Governor with the rules to implement the CHS. That is “all we are voting on today,” she claimed. She continued that “a yes vote today will not increase the cost of Vermonter’s fuel or protect the cost. We are not voting on those things today. We are voting on those things in 2025.”

On Tuesday, Representative Sibilia gave the Committee the history leading up to the S.5.

• In 2016, Governor Scott joined other states in committing Vermont to meeting goals of the Paris Climate Accords.
• In 2020, Vermont passed Global Warming Solutions Act (GWSA). The GWSA sets the mandates for greenhouse gas reductions, established the Climate Council to come up with the Climate Action Plan (CAP). The Clean Heat Standard (CHS) is the primary thermal sector solution for the CAP.

Sibilia claimed that Vermonters wanted them to act on climate, citing a poll that says 76% support climate action.

Wednesday

The Committee began marking up S.5 on Wednesday. Chairwoman Sheldon asked if cooking was included in the definition of thermal sector and therefore covered under the bill. Legislative Counsel confirmed that it was included and transitioning from gas to thermal induction stoves in restaurants qualifies for credits.