If the Vermont Legislators overrides the governor’s veto of S.5 this week, then the creation of the Vermont Clean Heat Standard in statute and the development of the Clean Heat Standard Rules will proceed. These rules will be presented in bill form to the 2025 legislature and Governor to be debated so both can decide whether or not to proceed.

The legislature and the governor agree that Vermonters, legislators and the governor should be able to track and weigh in on the implementation of S.5. That is going to happen through regular public proceedings and meetings at the Public Utility Commission, through actions taken during the legislative session in 2024, and in 2025, and by the Governor’s administration throughout the process.

Here is a summary of the timeline for implementation at the PUC – Items in bold are specifically seeking public, legislative and administrative input and comment, but anyone can comment on any of the steps (see below for how).

PUC

1. January 1, 2023 Actions taken are eligible to be registered as clean heat credits once system is created (early action credits)
2. Between May-July 2023 S.5 enacted; takes effect on passage funding and positions available to PUC and DPS
3. July 1, 2023 PUC opens a proceeding to establish default delivery agent credit costs; DPS conducts potential study
4. August 31, 2023 PUC commences proceeding to write CHS rules
5. PUC shall hire 3rd party consultant/facilitator for public engagement
6. PUC holds 6 public hearings and workshops on CHS rules
7. PUC appoints up to 15 members to the TAG
8. January 15, 2024 PUC hires 3rd party consultant to establish clean heat credit registry
9. January 31, 2024 Entities that sell heating fuel in VT must register with the PUC
10. February 15, 2024 PUC reports to Leg on status update on development of CHS rules including economic analysis; PUC reports to Leg on suggested funding source for CHS program administration
11. PUC hires consultant to develop emissions schedule for clean heat credits; appoints TAG
12. June 1, 2024 PUC appoints/contracts with DDA (multiple DDAs may be appointed)
13. September 1, 2024 DPS finishes potential study
14. PUC issues draft rules for public comment
15. January 1, 2025 PUC establishes rate of decrease of the acceptable carbon intensity value of clean heat measures for 2025-2030
16. January 15, 2025 PUC submits proposed final rules to Leg which shall include the annual amount of credits required; rules cannot take effect until the Leg enacts via bill authorization for the PUC to adopt the rules PUC reports to Leg on status update on development of CHS rules including economic analysis
17. January 15, 2025 Equity Advisory Group issues report on how equity issues have been addressed in development of CHS rules
18. could be May-July 2025 Legislature enacts law authorizing PUC to file final rules
19. When rules approved by the Leg PUC submits final proposed rules to Secretary of State and LCAR
    LCAR reviews final CHS rules During which they will review whether the rules are: beyond the PUC’s authority, within the legislative intent, arbitrary, stylistically sound. It will also review the required environmental analysis and economic analysis.
20. When rules approved by the Leg Equity Advisory Group ceases to exist
21. When rules approved by the Leg dictate CHS goes into effect
22. January 15 after rules adopted PUC reports to Leg on any new rules adopted
23. January 15 every year after Annual report to committees of jurisdiction on CHS program
24. January 1, 2030 PUC establishes rate of decrease of the acceptable carbon intensity value of clean heat measures for 2031-2050

During the 2024 and 2025 legislative session, there are multiple currently scheduled places for the legislator and the governor to discuss and debate through regular bill and committee proceedings: