JARED DUVAL

Mike Roy spoke with Jared Duval, a Vermont Climate Council appointee who chairs the Council’s Science and Data subcommittee, about the unsettled but important clean heat standard, which will be voted on by the state legislature in the upcoming legislative session.

Mike Roy: What is the Clean Heat Standard and how is it different from a carbon tax?

Jared Duval: A Clean Heat Standard is a requirement for importers of fossil heating fuels in Vermont to reduce climate pollution over time. It is revenue neutral, meaning the government will not collect revenue and any price increases on the fossil fuel side will go towards reducing prices on the clean side. Any costs fossil fuel corporations incur to reduce emissions are tied to making it more affordable for Vermonters (especially low- and middle-income ones) to access cleaner heating options.

There is speculation that fossil fuel corporations could pass on the cost of compliance to their customers. To the extent that happens, there will be a corresponding decrease in the cost of cleaner heating fuels to help Vermonters transition away from fossil fuels. Unlike a tax, the goal of the Clean Heat Standard is not to raise money, but rather to reduce emissions as cost-effectively as possible while holding fossil fuel corporations accountable for reducing pollution.

What are the objectives of the Clean Heat Standard?

The objectives are twofold. First, after transportation, the use of fossil fuels to heat buildings in Vermont is our second largest source of climate pollution. To meet science-based targets and our legal obligations, we must address pollution from fossil heating fuels.

Second, we must help Vermonters escape the high costs and price volatility of fossil fuels. Clean heat options often save people money in the long run, whether through weatherization or switching to heat pumps. These cleaner options tend to be cheaper and more stable in price.

In short, the Clean Heat Standard aims to reduce both pollution and costs.

Who does this affect and how?

The Clean Heat Standard sets requirements for corporations that import fossil fuels for heating into Vermont, no one else. For Vermonters, it offers more options and would help reduce the cost of choosing cleaner heating options. It is about reducing pollution and at the same time reducing heating costs.

How will fossil fuel importers be affected?

It depends on how they respond. If they act self-servingly, they will pass the cost of compliance onto their fossil fuel customers. However, that will be balanced by having to offer lower-cost clean heating options, especially for lower-income Vermonters. Included in the program design is a requirement that fossil fuel suppliers generate enough clean heat credits to reduce emissions, requiring them to reduce the costs of cleaner heating options enough to incentivize clean heat activity. enough. From a business perspective, the Clean Heat Standard opens new opportunities and revenue streams for fuel distributors who want to move from exclusively selling fossil fuels to offering cleaner heat services, such as air conditioning, biofuels, advanced wood heating or installations of heat pumps.

The current draft of the Clean Heat Standard allows biofuels and wood to qualify as clean energy. These definitions are hotly debated in certain environmental circles, who argue that none of them should be considered clean energy. Are these questions still up for debate about what is considered clean energy and, ultimately, how these questions will be answered?

This is not a simple definition of clean inside or outside. It’s about which options reduce greenhouse gas emissions on a life-cycle basis compared to fossil fuels for heating. Biofuels that generate lower emissions over their life cycle will be eligible for clean heat credits under the Clean Heat Standard, but only proportional to the amount of emissions reduction they achieve relative to fossil heating fuels. Biofuels that do not reduce emissions over their life cycle will simply not be eligible for Clean Heat credits. And those biofuels that marginally reduce emissions will only get a partial credit.

There are certainly disagreements about the life cycle emissions of various biofuels and wood heat. Those numbers will be determined by the Public Utilities Commission, informed by the Clean Heat Technical Advisory Group and as guided by the statutory language of the Affordable Heat Act.

There is conflicting information about how the Clean Heat Standard could affect consumers. Can you share what is known and what misinformation needs to be corrected?

At this time, no definitive figures are known because we do not have a fully developed rule. There will likely be some upward pressure on fossil fuel prices along with downward pressure on prices for cleaner heating options such as biofuels, electricity and heat pumps. A comprehensive study by the Natural Resources Agency estimated a potential increase of 1 to 2 cents per gallon per year in the price of fossil heating fuels. The fossil fuel industry’s claims of massive increases in fossil fuel prices are wildly exaggerated. Their figures are not based on anything real and are very dishonest and misleading.

You’ve said that “The Stone Age didn’t end because we ran out of stones.” Can you unpack that?

As humans, we tend to focus on the potential costs of change, but rarely consider the costs of the status quo. The climate crisis is real, and the cost of inaction is significant: extreme storms, high fuel prices, and more. Moving away from fossil fuels isn’t just about reducing climate pollution, it’s about a better energy future that lowers costs for Vermonters and keeps more money in the state. When we invest in HVAC, heat pumps, or advanced wood heating, the benefits stay much more within our communities, rather than flowing primarily out of state to multinational fossil fuel corporations.

Why should Vermonters care about the Clean Heat Standard? And how can the average Vermonter participate while the details are worked out?

Vermonters should care because it’s about making the transition to clean energy equitable. Currently, the wealthiest Vermonters are primarily those installing heat pumps and benefiting from the cost savings. If we don’t have policies like the Clean Heat Standard, we risk leaving low-income Vermonters behind.

As for getting involved, there are three forums where it is being developed. First, the Public Utilities Commission is drafting rules that will be delivered to the Legislature by Jan. 15. People can submit comments or attend workshops. After January, the Legislature will consider those rules, and Vermonters can participate in that process. Finally, the Vermont Climate Council is reviewing the Climate Action Plan and public input sessions are now underway.

Last word?

Getting public policy right is complex, but it is important to have honest and nuanced conversations. Vermonters should take the time to critically evaluate the information being presented and consider the interests behind it. The fossil fuel industry has invested heavily in spreading misinformation. For independent and reliable information, Vermonters can turn to resources such as the Clean Heat Standard FAQ in bit.ly/ean-cleanheat.