On January 8, the Vermont House and Senate began the 2025 legislative session. Although Democrats still hold control over both chambers, their supermajorities have ended. Governor Phil Scott is now joined by many new Republican lawmakers in Montpelier.
The loss of supermajorities enhances Governor Scott’s veto power. His campaign emphasized managing property taxes, education funding, and energy costs. In his inaugural address, he highlighted the need for changes in school administration, state funding structures, and incentives that may encourage increased spending.
Democrats also recognize the necessity for significant reform. Further details are expected in the upcoming weeks.
Republicans have introduced a bill to repeal the Clean Heat Act (H. 16), sponsored by Representative James Harrison of Chittenden. The bill faces challenges in a legislature still dominated by liberal and progressive members who supported it two years ago.
Former Senator Chris Bray from Addison County, who lost re-election in 2024, acknowledged that the Clean Heat Act could raise heating fuel prices by at least $1.70 per gallon. The act tasked the Vermont Public Utilities Commission with developing a plan for implementing the Clean Heat Standard, with a final report due mid-January. For progress on this standard, adoption by the General Assembly is necessary.
Last fall, VT PUC suggested that the standard was unworkable and recommended replacing it with a direct per-gallon tax on fossil heating fuels.
NFIB VT will monitor property tax reform plans and developments related to the Clean Heat Standard closely alongside other legislation affecting small businesses.
For inquiries or feedback on these matters or other happenings in Montpelier, NFIB VT State Director John Reynolds can be contacted at John.Reynolds@NFIB.org.
