PUC delivers check‑in on Act 18 ‘clean heat’ plan; legislators hear costs, equity risks

Montpelier — Lawmakers from the Senate Natural Resources and Energy Committee and the House Energy and Digital Infrastructure Committee met Jan. 16 to review the Public Utility Commission’s (PUC) check‑in on Act 18 of 2023, the Affordable Heat Act, and to hear reports from the PUC staff, the act’s Technical Advisory Group and its Equity Advisory Group.

The hearing focused on how the Clean Heat Standard established by Act 18 would work in practice and on the PUC’s findings after 18 months of implementing tasks directed by the statute. The PUC delivered draft rules and a check‑in report to the legislature the evening before the hearing; the PUC told legislators it cannot file final rules with the Secretary of State until the General Assembly enacts specific authorizing legislation.

Sen. Anne Watson, chair of the Senate Natural Resources and Energy Committee, opened the session by emphasizing process: “This is an opportunity for us to be receiving. . . . This is not a time for us to be opining. . . . We are just receiving, we are just learning, today,” she said, describing the day as a level‑setting briefing for both chambers.

Ellen Tchaikovsky of the Office of Legislative Counsel summarized the statutory framework in Act 18 and highlighted key design elements: the Clean Heat Standard creates tradable clean‑heat credits tied to measures that reduce lifecycle greenhouse gas emissions in Vermont’s thermal (residential, commercial and industrial fuel‑use) sector; obligated parties include the state’s regulated natural gas utility (Vermont Gas Systems) and entities that import or produce heating fuels for consumption in Vermont; and the PUC must establish rules, a system of credits, and a default delivery agent (DDA) to carry out statewide work.

Ed McNamara, chair of the Public Utility Commission, told the committees the PUC’s review produced…