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Representative Logan advances option to fund thermal efficiency via a thermal benefits charge tied to unregulated fuels

2730239 · March 21, 2025
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Summary

As an alternative path to implementing the Clean Heat Standard, Representative Kate Logan presented a statutory option to establish a thermal efficiency benefits charge on unregulated heating fuels, directing the revenue to the state’s efficiency fund to finance thermal efficiency measures.

Representative Kate Logan told the committee she was presenting an option from the Public Utility Commission’s Clean Heat Standard check‑back report: a thermal efficiency benefits charge assessed on unregulated fuels to raise funds for thermal efficiency programs.

Logan explained the charge would be a volumetric fee (a per‑gallon or per‑unit charge) on non‑electric heating fuels, with revenue directed into the existing electric efficiency program or a renamed energy efficiency fund so that thermal efficiency incentives and programs could be financed in a coordinated way. “This would implement the recommendation of the PUC’s report and create a funding stream for thermal efficiency work,” Logan told members.

The sponsor said the provision mirrors language and structure the PUC identified as an alternate pathway to the Clean Heat Standard, and would be considered alongside other bills and PUC rulemaking this session. Legislative counsel and committee members discussed fund flow, the administrative structure, and the relationship between a thermal charge and existing electric/hybrid efficiency funding.

Ending: The committee asked Logan to coordinate with the PUC and Department of Public Service on technical details and fund administration if the committee moves the draft forward.