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:

Dear Senate Appropriations Committee,

While we may differ on whether or not the Clean Heat Standard is the best path forward at this time, it is clear that this is the intention of the legislature. We would like to offer some constructive feedback on aspects of the bill that we believe are problematic to the stated goals of accountability, affordability, and carbon-reduction.

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.

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.