Vermont Government Affairs Update- April 1, 2025

As we roll into the second half of the 2025 legislative session its become clear that this is a unique year in terms of policy. The election November which gave more power to Governor Scott and the Republicans is truly forcing legislators to work hard towards compromise bills. Although compromise is the goal, it’s clear that there are still power struggles going on even within party lines. Today marks April 1, which many know to be April Fools Day, but there is very little joking to be had at the state house.

The “Clean Heat Standard” also known as the “Affordable Heat Act” was passed last biennium by a supermajority of Democrats seeking ways to reduce fossil fuel usage in Vermont. The policy would have required fuel dealers to encourage and assist their customers to move away from fossil fuels to heat their homes. If the dealer is not able or willing to report reductions by their customers, they would then be forced to apply a surcharge (some call a carbon tax) which was estimated to be between $2-5/gallon of fuel. With broad public opposition and recent political losses, the legislature seems to have heeded the public’s interest in cancelling the policy.

The heat act was passed with the caveat that the Public Utility Commission (PUC) begins designing the program and identifying fuel dealers in the state, but the reduction requirements would not begin until the 2025-2026 legislature approves the policy again by vote. This has been known as the “look back” policy within the bill that would allow legislators to find out exact cost estimates before enacting the regulations. A report from the PUC in the fall of 2024 prior to legislative session stated that the program would be overtly expensive and that the commission recommends scrapping the proposal.

This opposition was celebrated by opponents to the policy and has caused environmental advocates and Vermont’s Climate Commission to scramble to figure out next steps.

With several bills in play to repeal the heat standard, opponents are hopeful. However, that hope comes with concern as plans are being made to add another component to the bill which would give Vermont’s energy regulator Efficiency Vermont more authority to increase and spend ratepayer taxes on driving electrification goals. This “poison pill” may satisfy removal of the heat standard but will trigger possibly more costly additions to Vermonters electric bills.

In addition to the “poison pill” possibility, Vermont’s Climate Commission is preparing for a lawsuit against Vermont for not complying with Vermont’s Global Warming Solutions act which requires the state to reduce carbon emissions by preset requirements. The lawsuit plans to ask a judge to enact the “Clean Heat Standard” and a carbon “cap and trade” program without having to go through the legislature allowing them to push policy that a majority of voters oppose…..

I wish this was an April Fools joke, but unfortunately it is not.