The affordable heat act (s.5)
In 2020, Vermont passed the Global Warming Solutions Act and committed Vermont to 80% emissions reductions by 2050. We need to make serious efforts to meet these goals and, for the future of our planet and children, we need to transition to 100% renewable energy as soon as possible in order to be able to responsibly reduce emissions across our electricity, thermal, and transportation sectors. We must boost Vermont’s energy independence and economy through in-state wind and solar. Additionally, a large portion of Vermont’s emissions come from the thermal sector. S.5, referred to as the Affordable Heat Act (AHA), provides a pathway to reducing emission in the thermal sector by establishing a “Clean Heat Standard,” similar to our Renewable Energy Standard. S.5 has recently passed the Senate and landed in the House Committee on Environment and Energy.
S.5 would regulate emissions that result from heating of our homes, businesses, and other buildings. The AHA would require fossil fuel dealers to earn clean heat credits by switching their fuel supply (over time) from fossil fuels to approved alternatives within the “Clean Heat Standard”. These standards are defined within the bill. Fossil fuel dealers would be required to reduce pollution over time through a combination of switching to energy alternatives and weatherization that would be implemented over time through incentives. These incentives would be subsidized by federal and state funding, our energy efficiency utilities, and heating fuel providers that would allow property owners to make the switch to heat pumps, biofuels, and to weatherize their homes. The Clean Heat Standard, which was referenced to create S.5, passed both chambers during the last biennium, but was vetoed by the governor.
The Progressive Caucus does not yet have a decided stance on S.5. Nonetheless, we hope to shed some light on this complicated piece of legislation. At our public caucus next week, we will learn more about the bill from the folks who have been actively advising the creation of S.5. Our meeting will provide a platform for these advocates who represent a diverse range of stances on the bill. You can learn more about how to tune in below. We are looking forward to broadening our understanding of the bill on Monday and invite you to do the same!
PROS OF S.5
Transition Pathway: S.5 sets up a necessary pathway to transition away from fossil fuels and, alongside amendments that are currently being considered to our Renewable Energy Standard, will be considerably more equitable than last year’s Clean Heat Standard.
Improvements from Clean Heat Standard: S.5 has improved upon last year’s Clean Heat Standard substantially — offering an improved timeline and new calculating mechanism for tracking life-cycle emissions that come from extraction, production, fugitive emissions, as well as methane emissions for fuel sources.
In an earlier version of the Affordable Heat Act, the Public Utilities Commission (PUC) was not required to consider the global impact of fuel sources on food systems, indigenous communities, or deforestation. Thanks to an internal push led by Progressive Senator Tanya Vyhovsky, the PUC is required to consider the global impact of different fuel sources over time as we become aware of the impact on ecosystems, food systems, and our global community. A Clean Heat Rating Scale will determine the relative cleanliness of fuel sources, incorporating many of these factors into scores. Over time, dirtier fuel sources (biofuels, Renewable Natural Gas) will necessarily phase out as liquid and gas fuels with high “carbon intensity scores” become ineligible as clean heat measures.
Improvements for tenants: The S.5 rule-making process will ensure that the Public Utility Commission design the program to be as accessible to tenants and their landlords as possible. Additionally, with renters making up the large majority of low-income households, and with the additional requirement to prioritize and frontload clean heat measures for low-income households, renters and other low- and moderate-income households will be first in line to receive clean heat incentives.
Energy cost savings: The Affordable Heat Act is estimated to save Vermonters $6.4 billion through energy efficiency measures that incentivize the switch to cleaner heat sources.
Low- and moderate-income Vermonters are prioritized for updated heating systems under S.5. In an earlier version of the bill, “low- and moderate-income” would have been defined by utility commissions. Representative Logan and Senator Vyhovsky worked to implement a definition for low- and moderate-income households. S.5 now uses HUD guidelines for “Area Median Income,” or the state’s “Median Household Income,” whichever is highest in the case of an individual household to define these households.
Equity: The policy requires that the majority of clean heat services at the residential level are delivered to lower- and middle-income households. The prices of fossil fuels are incredibly volatile. Shifts in the market can unpredictably affect Vermonters who can least afford a sharp spike in fuel costs. Moving Vermonters off of fossil fuels is in the best interest of ensuring economic justice.
CONS OF S.5
Biofuels: S.5 would support heating fuel alternatives like biofuels and hydrogen that are ineffective at reducing GHGs. Biofuels are often generated from palm oil, a cooking oil that is responsible for significant deforestation in the Amazon and decimation of orangutan populations. The carbon emissions lifecycle analysis that is required by S.5 will disadvantage biofuels and prevent the development of a market for particularly environmentally destructive biofuels over the long-term. While some especially dirty fuel sources would not be allowed, the transition away from biofuels would need to happen by 2050–which is not enough time given the urgency of our climate crisis. In order for us to effectively and more quickly transition off of all combustible liquid and gas heating fuels, Vermont will need to expand its access to renewable electricity at a pace faster than currently planned.
Energy independence: Unlike all other fuels that would count for clean heat credits, “‘Renewable’ Natural Gas” would not be required to be burned in Vermont to be awarded clean heat credits. Money spent on alternative energy sources out-of-state will not encourage energy independence to bring Vermont towards permanent switches to renewable energy sources.
Definition of low- and moderate-income: We are grateful for Senator Vyhovsky and Representative Logan for solidifying a definition of low and moderate income. Low income is calculated at 60% of Area Median Income or the Household Median Income, whichever is higher, and moderate-income Vermonters are defined at 120% of the Area Median Income or Median Household Income, whichever is higher. We hope that all of the benefits of this program can be expanded to benefit more Vermonters.
Lapse in the calculating mechanism: Although there will be a greenhouse gas emissions calculation mechanism for energy sources that are allowed within the transition laid out in S.5, this mechanism does not account for the totality of emissions and land-use impacts for biofuels.
This bill is complicated, and we look forward to learning more about it on Tuesday. Our guests at our public caucus will include Representative Mollie Burke, Scot Zens from the 350 Vermont Thermal Sector Policy Working Group, and Ben Edgerly-Walsh, VPIRG’s Climate and Energy Program Director. Guests will explain their stances on the bill and answer questions. You can watch the caucus at the Legislative Caucus Youtube Channel on Tuesday at noon, or come join us at Pavillion 270 next to the State House. We are grateful for Representative Kate Logan’s work in the House to improve this bill and Senator Tanya Vyhovsky’s in the Senate.
Senate update
Senator Tanya Vyhovsky introduced a bill last week to prohibit hospitals from having a lien on a patient’s recovery for damages based on injuries suffered in an accident. A “lien” refers to a right to keep possession of property belonging to a victim until a debt is paid. This disproportionately impacts the poorest Vermonters in a time of crisis, and this bill would eliminate an unnecessary step in the process of treatment.
Vermont hit another record in 2022 with a record number of overdose deaths. Representative Taylor Small and Senator Vyhovsky worked together across chambers on a drug decriminalization effort. Rep. Small introduced H.72, enabling communities to open Overdose Prevention Sites, and H.423, seeking to decriminalize drugs and implement services that may help to reduce future use. Senator Vyhovsky has been working on these initiatives in the Senate, with S.119 — switching penalties for personal possession of illicit drugs to a small $50 fine as opposed to arrest. The bill also includes a pilot program for Drug Checking Sites, to test drugs for contaminants, granting immunity to anyone using such sites.
Learn more about the press conference in VTDigger, and from Rep. Small on our social media via instagram, twitter, and facebook.
Progs in the Press
WCAX: Trans Vermonters spotlight International Trans Day of Visibility
Last week’s Trans Day of Visibility was hosted by over 250 youths from across the state. Rep. Taylor Small, Vermont’s first out transgender lawmaker, gives us the following thoughtful reflection,
“Visibility allows us to know that trans people exist, and that then pushes us to start thinking about the rights and protections that are being taken away in so many states but should really be afforded and where we’re moving in the state of Vermont to ensure those protections (. . .) We are your neighbors, we are your friends, we are your loved ones. And I think what folks don’t necessarily understand about trans identities is that it isn’t about anyone other than ourselves and being able to feel that love and authenticity.”
VTDigger: To address overdose crisis, advocates and state lawmakers call for decriminalizing opioids
At a press conference last week, the message was clear — decriminalizing drugs and implementing common sense drug laws will benefit Vermonters and folks suffering from substance abuse disorder. Sen. Vyhovsky is quoted,
“These rates of overdose deaths will not change unless we change how we are responding to them (. . .) Continuing to do the same thing that we have done while expecting a different result is not only ridiculous, it is cruel.”
