Bill McKibben from Third Act joined the House Government Operations Committee on Wednesday to discuss S.42. He noted divestment started here in Vermont years ago. Third Act was founded by McKibben, who wrote the "original book" about global warming. In LA Times and companies knew, all the way back in the 1980s, about the impact of fossil fuels and "lied about what fossil fuels can do to the environment," he claimed.

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.

Senator Clarkson presented S.42 to the House Government Operations Committee on Friday. She introduced the bill by saying that, "many of us wanted to have happen a long time ago" and that it was a "win for everyone." The bill was the result of negotiations between Third Act, the Treasurer's Office, the Vermont Pension Investment Committee (VPIC), the Senate Government Operations Committee, and other experts.

The House Environment & Energy Committee returned to discussion of the Clean Heat Standard (CHS) in S.5 on Friday after taking testimony during the week largely from environmental advocates.

Dear Representatives,

I am writing on behalf of Campaign for Vermont Prosperity, asking you to carefully weigh the value versus the potential harm that can be done by introducing a carbon pricing scheme on heating fuels. Every equity expert that has testified on S.5 has agreed that it will likely hurt low-income Vermonters, those on fixed incomes, rural Vermonters, and our historically marginalized. We share this belief. Carbon-pricing is a blunt instrument that is almost certain to do unintended harm to Vermont’s most vulnerable.

The House Environment & Committee returned on Friday morning to hear from TJ Poor (Director of Planning, Department of Public Service). He was following up on a question from his last time in the Committee regarding the Comprehensive Energy Plan (CEP). The CEP actually calls for a full evaluation of the Clean Heat Standard (CHS) in terms of cost, societal impact, and equity. This didn’t happen in the Climate Action Plan (CAP) process due to the tight timelines.

Thursday morning the House Environment & Energy Committee returned to testimony on S.5. Neale Lunderville (President & CEO, Vermont Gas Systems) was first to speak. Chairwoman Sheldon gave an introduction Lunderville’s terms as Transportation Secretary, Secretary of Administration (under Douglas), and General Manager of the Burlington Electric Department.

The House Environment & Energy Committee picked up S.5 again on Wednesday with testimony from Matt Cota (Lobbyist, Vermont Fuel Dealers), who shared that the “first misconception” being repeated is that this bill only affects large companies. Big companies are not the ones the bill obligates to buy credits, according to Cota. It is not size, but rather who owns title to the fuel when it crosses state lines that determines who is required to buy the credit; that could be a large company or a tiny company, a wholesaler or a dealer. Small dealers who are geographically located near borders are going to be disproportionately tagged as obligated parties.

Senator Clarkson presented S.42 to the Senate on Tuesday, positioning the bill as a "win-win." She listed a number of individuals that were involved for the bills development, including the Treasurer, the Vermont Pension Investment Committee (VPIC), and several other experts. She cast the bill as the result of "productive negotiations" lead by the Senate Government Operations Committee with with the intent of divesting fossil fuel investments while simultaneously protecting the state's pension funds and Actuarial-Defined Employer Contribution.