Green Mountain Times

Vermont is facing significant challenges in meeting the carbon reduction targets set by the Global Warming Solutions Act. The state needs to cut approximately 1.26 million metric tons of carbon dioxide, equivalent to 124 million gallons of heating oil, by 2025. A more ambitious target looms for 2030, requiring a reduction of 3.46 million metric tons of CO2, comparable to all gasoline and diesel fuel sold in Vermont in 2021.

Failure to meet these goals could result in legal action against the state, potentially leading to a ban on fossil fuel-burning equipment. To address this, Vermont has introduced the Clean Heat Standard (CHS), a comprehensive strategy developed by the Vermont Climate Council. The CHS mandates that fuel dealers pay others to reduce their sales if they cannot do so themselves. This measure has already passed the House with a vote of 96-44 and awaits Senate approval.

In addition to addressing heating fuels, Vermont plans to reduce motor fuel sales through incentives for electric vehicle purchases and increased charging infrastructure. By 2035, there is a proposal to ban new combustion engine car sales. However, some lawmakers and lobbyists express concerns about whether these measures will suffice under the Global Warming Solutions Act's timeline.

Separately, Vermont is considering omnibus legislation aimed at economic development and workforce revitalization. This includes increasing unemployment benefits and minimum wage hikes while introducing a $25 per child unemployment benefit and establishing a task force for paid leave insurance study.

The proposed increase in unemployment benefits would cost employers $100 million over several years, primarily sourced from Vermont’s UI Trust Fund. A $25 weekly increase on all UI benefits is planned initially funded by federal ARPA dollars before transitioning entirely to the UI Trust Fund.

Senator Michael Sirotkin has linked this legislation with a forgivable loan program managed by the Vermont Economic Development Authority (VEDA). Businesses must demonstrate at least a 25% reduction in adjusted net operating income during 2020-2021 compared to 2019 or another suitable baseline for eligibility.

NFIB/VT has expressed concern that the House-passed budget does not fully account for the envisioned $100 million appropriations nor adequately addresses capital investment grants.