Gov. Phil Scott followed through on Thursday on his promise to veto the bill meant to clean up how Vermonters heat their homes and businesses, but he probably can’t block the clean heat standard from becoming law through an override.
The bill, S.5, has become one of the most contentious pieces of legislation this session, sharply dividing lawmakers over whether it’s the right way to fight climate pollution from buildings in the state.
Democrats and Progressives have rallied behind the bill, calling it their top environmental priority this session and a crucial step toward reducing the state’s heavy reliance on fossil fuels that keep people warm in winter but whose emissions are warming the planet.
They say the program will require distributors of heating oil, natural gas, propane and kerosene to help Vermonters switch to greener heat sources such as cold-climate heat pumps and pellet stoves.
Republicans have lambasted the effort as one certain to result in higher fuel prices for residents and likely to drive some family-owned fuel dealers out of business. They also argue that too much of the program’s design is being left up to regulators; the credit trading system envisioned in the bill is overly complex; and Vermont is too small to have much effect on climate change.
In his veto message, Scott reiterated a litany of objections to the bill, including that it lacked the “check back” provision he requested as well as enough detail to know the impact on residents.
“When we pass laws, we must clearly communicate both the burdens and the benefits to Vermonters. From my perspective, S.5 conflicts with these principles, and I cannot support it,” he wrote.
Scott said he supports smart efforts to reduce emissions in the thermal and transportation sectors and has supported hundreds of millions of dollars in investments to do so. But he said S.5 was not the way to go about it.
“Here’s the bottom line: The risk to Vermonters and our economy throughout the state is too great; the confusion around the language and the unknowns are too numerous; and we are making real and measurable progress reducing emissions with a more thoughtful, strategic approach that is already in motion,” Scott said.
Democrats, however, have been pushing back hard. Emily Bowers, spokesperson for the Vermont Democratic Party, has accused Scott of “spreading disinformation” about the bill in the media. Scott has said he thinks the bill will “punish people who can’t afford to do anything different than they’re doing today.”
But in a statement, Bowers called that “fundamentally dishonest.” She stressed that the bill was designed to save low- and moderate-income residents thousands of dollars a year by shifting them off volatile fossil fuels. She stressed that if the world doesn’t start dramatically reducing carbon emissions in the next few years, the damage would be “irreversible and catastrophic.”
“Yes, Vermont is a small state, but we live on this planet just like everyone else,” she wrote.
The state needs to reduce greenhouse emissions 40 percent by 2030 and 80 percent by 2050, as required by the 2020 Global Warming Solutions Act. Heating is responsible for about a third of the state’s emissions, second only to transportation.
The bill would force fuel dealers to reduce the demand for fuel by weatherizing homes. Doing so would earn them “clean heat credits” that could be bought and sold in a marketplace not unlike the carbon credits used in cap-and-trade systems.
Exact details of the program would be determined during an 18-month process before the Public Utility Commission that is certain to be both complex and contentious.
That process should answer many outstanding questions and help residents better understand the costs and the benefits of the program, said
Johanna Miller, the Energy & Climate Program director for the Vermont Natural Resources Council.
“The long and short of it is that without significant policy actions, we are not on track to meet our obligations,” she said.
This article appears in May 3-9, 2023.
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