Environment (Climate Change)

H 354 creates a new "thermal efficiency benefits charge" that Vermont utility customers using unregulated fuels (like oil or propane for heating) would pay as a separate line item on their bills starting July 1, 2025. The funds collected would go into an Electric Efficiency Fund to support programs, including a 25% incentive for installing high-efficiency biomass heating systems (without requiring other energy upgrades). The charge aims to fund societally cost-effective thermal efficiency programs that help meet greenhouse gas reduction goals under Vermont law. It directly affects residential and commercial customers of unregulated fuels, not electricity or natural gas utility customers.

This bill amends Vermont's State Energy Policy to explicitly prioritize economic equity and beneficial electrification. It requires the Public Utility Commission to evaluate energy resources using these principles, alongside reducing greenhouse gas emissions and cost-effectiveness. The policy now mandates that energy planning must align with Vermont's greenhouse gas reduction targets under 10 V.S.A. § 578 and the Climate Action Plan. These changes directly affect how Vermont's energy strategy is developed and implemented by state agencies. The bill takes effect July 1, 2025.