Council extends hot‑water exemption for larger commercial and multifamily projects; schedules June 2 public hearing

South Burlington City Council voted unanimously May 5 to approve an ordinance at first reading that extends, for two years, a temporary exemption from a 2022 local rule requiring renewable service‑water heating systems in certain building types and set a public hearing and second reading for June 2 at 7 p.m.

Climate Action Manager Bettina Miggues summarized the staff recommendation and timeline, saying, “Our recommendations are to extend the exemption for two years for multi unit residential buildings, mixed use buildings and commercial buildings that are heavy water users.” The extension would apply to buildings whose service systems are sized so they use a 1‑inch (or larger) water‑meter connection, a threshold staff used to define large water users.

The 2022 ordinance requires that new buildings install renewable primary heating systems that cover 85 percent of heating load and renewable service‑water heating systems, but it included a temporary exemption for hot‑water systems in commercial, mixed‑use and multiunit residential construction that ran through Feb. 15, 2025. The council asked staff to compare local rules to New York City’s work on building electrification; Miggues told the council New York City’s Local Law 154 phases in fossil‑fuel prohibitions and delays certain service‑water restrictions until mid‑2027.

Migues explained options for developers who do not install renewable hot‑water systems. Projects may apply for a waiver on economic‑hardship grounds by demonstrating total cost differences (capital plus operating, accounting for the ordinance’s carbon cost factor). She said the city also proposed funding a study on available large‑scale hot‑water technologies during the two‑year extension so the city can make an informed decision when the exemption next comes up.

During public comment, resident Jerry Silverstein urged caution about claims connecting local electrification to immediate greenhouse‑gas reductions because New England’s grid remains tied to ISO New England. “When I turn on a light in my house, the electrons that energize the bulb … reflect the energy composition of ISO New England,” he said, adding that the grid in winter months has significant natural‑gas generation.

Councilors asked clarifying questions about definitions and the waiver formula. Councilor Andrew asked whether the original ordinance was “predicated on the New York City law.” Miggues replied, “Not that I’m aware of. No,” and said New York City was one example staff looked at at council request. Councilor Mike and Councilor Laurie Simanski expressed support for the two‑year study approach and for giving staff time to assemble technical guidance for larger projects.

The council’s vote at first reading set a public hearing and a second reading for June 2 at 7 p.m. City staff said the two‑year extension would align the city’s timeline for service‑water changes with other jurisdictions and allow a new report on technologies and costs to inform any later rulemaking.

If the council adopts the extension after the public hearing, the exemption would continue in effect while staff studies large‑scale hot‑water technologies and refines local definitions and waiver procedures.