Specifications include, but are not limited to: Under the Clean Heat Standard created under Act 18, obligated entities are required to reduce greenhouse gas emissions attributable to the Vermont thermal sector by retiring required amounts of clean heat credits to meet the thermal sector portion of the greenhouse gas emission reduction obligations of the Global Warming Solutions Act. Obligated parties include one regulated natural gas utility and, for other heating fuels, the entity that imports heating fuel (has ownership title to the heating fuel at the time it is brought into Vermont) for ultimate consumption within the State, or the entity that produces, refines, manufactures, or compounds heating fuel within the State for ultimate consumption within the State. A clean heat credit is defined by Act 18 as “a tradeable, nontangible commodity that represents the amount of greenhouse gas reduction attributable to a clean heat measure.” Clean heat measures are fuel delivered and technologies installed to end-use customers in Vermont that reduce greenhouse gas emissions from the thermal sector. Section 8125(e)(1)(A) of Act 18 calls for the Department to conduct and complete a potential study no later than September 1, 2024. The primary objective of the potential study is the assessment and quantification of technical and economic potential as well as two types of achievable potential (maximum and program achievable) thermal sector resources. The results shall include a comparison to the legal obligations of the thermal sector portion of the requirements of the Global Warming Solutions Act (GWSA”)3 . The potential study shall also consider and evaluate market conditions for delivery of clean heat measures within the State, including an assessment of current workforce characteristics, a business-as-usual forecast of capacity, and an assessment quantifying any anticipated gaps in meeting consumer demand as well as meeting the obligations of the GWSA. The results of the potential study will be used in the context of the Commission’s Case 23-2221- INV4 . This proceeding was opened July 1, 2023, pursuant to 30 V.S.A. § 8125(e)(1) to “establish the default delivery agent credit cost or costs and the quantity of credits to be generated for the subsequent three-year period” and directly related matters. Obligated entities can earn clean heat credits by delivering clean heat measures, contracting for the delivery of clean heat measures, or purchasing/trading clean heat credits to satisfy their obligation as determined by the PUC. However, prior approval from the Commission is required for any entity that wishes to meet its annual requirement using a method other than the default delivery agent. Among other things, the PUC proceeding will determine and establish clean heat measures, clean heat credits and their cost, and one or more default delivery agents. Note, Act 18 allows for inclusion of retroactive actions taken starting January 1, 2023.
