Update from Governor Phil Scott on the Consequential Clean Heat Standard Process

Montpelier, Vt. - Tonight at 6:30 p.m., Vermonters can make their views known about the proposed Clean Heat Standard (CHS) by attending the public hearing the Vermont Public Utility Commission will be holding online.

The Clean Heat Standard, which was put into motion by the Legislature in 2023 when the supermajority overrode the Governor's veto of S.5, is the legislature's proposed mechanism to reduce the use of fossil fuels for home heating. The Governor objected to implementing a policy that could have significant financial impact on Vermonters, with early estimates ranging from $2 to $10 billion or an additional $0.70 per gallon of heating fuel up to $4 per gallon.

The law also requires the Legislature to act on a Clean Heat Standard recommendation from the Public Utility Commission, which will be put forward in January 2025.

"The legislators seated in January will be making this decision, so it is critical for Vermonters to add their perspective to the record through this public engagement process," said Governor Scott.

Vermonters can participate in the following ways:

Public Hearing on Clean Heat Standard Draft Rule

Event Date: Wednesday, October 30, 2024 - 6:30 pm

PUC #23-2220-RULE

How to participate: Join online via https://meet.goto.com/773432045, or call in by telephone using the following information: phone number: +1 (571) 317-3116 access code: 773-432-045.

Submitting Public Comments:

• Submitted in writing, online, through ePUC

• Submitted by mail to: Holly R. Anderson, Clerk of the Commission, 112 State Street, Montpelier, VT 05620-2701

• Submitted by phone at (802) 828-2358

• "It is so important for Vermonters to weigh in with their views on this policy, which, if it becomes law in January 2025, will transform how Vermonters heat their homes, businesses, and public spaces in order to reduce carbon emissions to address climate change - a transformation that will be expensive, requiring significant upfront investments from Vermonters now for potential long-term savings and abstract societal benefit," said June Tierney, the commissioner of the Department of Public Service, which oversees policies and regulations impacting electric, gas and telecom utilities.

  When voicing his objections to S.5 in 2023, the Governor committed to keeping the public updated on this process and what it means for them. Below is the Administration's latest update on the Clean Heat Standard, how the process is moving forward, and what that means for Vermonters.

  UPDATE:

  By law, the Public Utility Commission (PUC) is responsible for providing an estimate of these economic impacts for the next Legislature to consider in January of 2025, but as of this late date, the PUC's work on estimates is not done, and so the exact costs of the Clean Heat Standard still remain unclear. But there will be a cost, and it's been estimated to be in billions of dollars.

  The Scott Administration has consistently expressed deep concerns about the costs of the Clean Heat Standard and how the Legislature set Vermont on this course with so many unknowns left to others to figure out - things that elected officials should know before passing and imposing such a consequential law, however commendable the objective may be.

  On October 1, the PUC issued a Draft CHS Rule for public comment that proposes some of the mechanics and processes that would govern the Clean Heat Standard. But there are still many unanswered questions and unresolved concerns in this Draft CHS Rule - including the very things that will determine who pays, how much now, and what fines or penalties there will be as Vermonters adapt to life under the Clean Heat Standard.

  The PUC has clearly stated that items not included in the Draft CHS Rule in January 2025 will be developed through subsequent PUC orders. This means much of the "meat on the bones" work for designing the Clean Heat Standard will happen only AFTER the Draft CHS Rule is delivered to the Legislature in January. In short, there are a lot of consequential details of the Draft CHS Rule will not be settled and known to Vermonters before the Legislature votes on whether to pass it into law in January.

  On October 15, the PUC kicked off an economic modeling process to understand the level of effort required for various CHS implementation scenarios and what those scenarios will likely cost Vermonters. The Commission asked that stakeholders come to the table with ideas for model structures and assumptions that can inform this effort. The PUC explained that this workshop process - including future avenues for providing input into the modeling effort - is meant to provide transparency regarding the modeling to facilitate useful dialogue during the legislative discussions regarding the Clean Heat Standard. The October 15th workshop was held via Go To Meeting video conference. There is a recording that is available for viewing, but no transcript. The PUC has not set a deadline for when it will next report publicly on this economic modeling exercise, so it is not known whether Vermonters will receive a firm determination as to the PUC's estimated economic impacts of the Draft CHS Rule before January of 2025.

  Finally, November 1, 2024, is the deadline for filing comments on the PUC's Draft CHS Rule. Stakeholders and members of the public alike are welcome to provide written feedback to the PUC, which will be reviewed and duly considered as the PUC finalizes the Draft CHS Rule. Comments can be submitted in writing, online, through ePUC; by email to [email protected]; by mail to Holly R. Anderson, Clerk of the Commission, 112 State Street, Montpelier, VT  05620-2701; or by phone at (802) 828-2358.

  ###

Public link

Please use the above public link if you want to share this noodl on another website.