Climate Matters: Jared Duval, the Clean Heat Standard and Vermont’s transition away from fossil fuels

JARED DUVAL

Mike Roy spoke with Jared Duval, an appointed member of the Vermont Climate Council who chairs the Council’s Science and Data subcommittee, about the risky 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: The Clean Heat Standard is a requirement for fossil heating fuel importers into Vermont to reduce climate pollution over time. It is revenue neutral, meaning no revenue will be collected by the government and any price increase on the fossil fuel side will lead to lower prices on the clean side. Any costs fossil fuel companies incur to reduce emissions are tied to making it more affordable for Vermonters, especially low- and middle-income Vermonters, to have access to cleaner heating options.

There is speculation that fossil fuel companies may pass the cost of compliance on to their customers. To the extent this happens, there will be a corresponding decrease in the cost of cleaner heating fuels that will help Vermonters transition off fossil fuels. Unlike a tax, the goal of the Clean Heat Standard is not to raise money but to reduce emissions in the most cost-effective way possible while holding fossil fuel companies accountable for reducing pollution.

What are the objectives of the Clean Heat Standard?

The goals are twofold. First, after transportation, using fossil fuels to heat buildings is the second largest source of climate pollution in Vermont. We need to tackle pollution from fossil heating fuels to meet science-based targets and our legal obligations.

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

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

Who is affected by this situation and how?

The Clean Heat Standard sets requirements for companies importing fossil heating fuels into Vermont; not for anyone else. It gives Vermonters more choices and helps reduce the cost of choosing cleaner heating options. It’s about reducing pollution while lowering heating costs.

How will fossil fuel importers be affected?

It depends on how they react. If they act in their own interests, they will pass on the cost of compliance to their fossil fuel customers. But this will be offset by the necessity of providing clean heat options at lower cost, especially for low-income Vermonters. The design of the program includes a requirement that fossil fuel providers generate enough clean heat credits to reduce emissions, thereby reducing the costs of clean heating options enough to encourage sufficient clean heat activity. From a business perspective, the Clean Heat Standard opens up new opportunities and revenue streams for fuel sellers who want to transition from selling only fossil fuels to offering cleaner heat services such as weatherization, biofuels, advanced wood heating or heat pump installations.

The current draft of the Clean Heat Standard allows biofuels and wood to qualify as clean energy. These definitions are hotly contested by some environmental groups who argue that neither of these should count as clean energy. Are these questions about what counts as clean energy still being debated, and how will these questions ultimately be answered?

It’s not about a simple definition of cleanliness in or out. It’s about which options reduce greenhouse gas emissions on a life-cycle basis relative to fossil heating fuels. Biofuels with lower emissions over their life cycle will be eligible to earn clean heat credits under the Clean Heat Standard, but only in proportion to the amount of emissions reductions they achieve compared to fossil heating fuels. Biofuels that do not reduce emissions on a life cycle basis will not be eligible for Clean Heat credits. And biofuels that marginally reduce emissions will receive only partial credit.

There is certainly disagreement about the life cycle emissions of various biofuels and wood heat. These figures will be determined by the Public Utilities Commission, informed by the Clean Heat Technical Advisory Group and guided by the statutory language in the Affordable Heat Act.

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

An exact number is unknown at the moment because we don’t really have a detailed rule. There is likely to be upward price pressure on fossil fuels, as well as downward price pressure on cleaner heating options such as biofuels, electricity and heat pumps. A comprehensive study by the Agency of Natural Resources estimates a potential increase in the price of fossil heating fuels of 1-2 cents per gallon per year. The fossil fuel industry’s claims about massive increases in fossil fuel prices are greatly exaggerated. Their numbers are not based on anything real and are extremely dishonest and misleading.

You said, “The Stone Age did not end because we ran out of stones.” Can you open this?

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

Why should Vermonters care about the Clean Heat Standard? So how can the average Vermonter get involved while the details are being worked out?

Vermonters should care about this because it’s about making the transition to clean energy equitable. Currently, it is primarily wealthier Vermonters who install heat pumps and benefit from the cost savings. Without policies like the Clean Heat Standard, we risk leaving low-income Vermonters behind.

As for joining, there are three forums where this is developed. First, the Civil Service Commission is drafting rules to be presented to the Legislature by Jan. 15. People can submit comments or attend workshops. After January, the Legislature will consider these rules and Vermonters will be able to participate in that process. Finally, the Vermont Climate Council is revising its Climate Action Plan and public engagement sessions are currently taking place.

Your last words?

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