Affordable Heat Act Price Tag: Is the Cost Justified?
The Affordable Heat Act, also known as Act 18, passed by the Legislature, is essentially the Clean Heat Standard introduced two years ago. Its main aim is to reduce greenhouse gas emissions in the heating sector, administered by the Public Utilities Commission. They’ve allocated $800,000 plus two staff to run the system, along with $400,000 and two staff for the Public Service Department.
In 2018, it was found that half of Vermont’s greenhouse gas emissions were from the thermal sector. The goal of this bill is to move away from carbon-intensive heating practices to lower carbon alternatives. Any entity selling heating fuel in Vermont must register annually with the PUC, detailing the type and volume of fuel sold. This will help track emissions and ensure compliance with carbon reduction goals, with penalties for noncompliance.
The PUC must establish a system to monitor clean heat credits to measure progress towards the bill’s objectives. These credits have value, can be traded, generate revenue, and be retired, although the specifics are yet to be determined. While the governor initially vetoed the bill due to lack of clarity on logistics, revenue, and economic impact on Vermonters, it is expected to have a significant impact once fully implemented.
Overall, the Affordable Heat Act aims to transition Vermont towards cleaner heating practices, reduce greenhouse gas emissions in the thermal sector, and create a more sustainable future for the state.
