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The Vermont Public Utility Commission (PUC) is now designing a “clean heat credit marketplace” in response to Act 18 of 2023, also known as the Affordable Heat Act. A "clean heat credit" is earned when something is done to reduce greenhouse gas emissions in the thermal sector. Nearly every fuel dealer in Vermont will need them, but it isn’t known how many they'll need and how much they’ll cost. While the work designing this policy is now underway, no payment is required by fuel dealers until the Vermont Legislature gives final approval in 2025. Oilheat and propane dealers can avoid making any payments if they buy, barter or earn credits for helping Vermonters reduce greenhouse gas emissions.


It's not clear what these credits are worth or how many will be needed until the Clean Heat Standard is fully designed, but they can be claimed now. The law allows credits to be earned retro-actively as of January 1, 2023. These credits could include sales of renewable liquid and solid fuels, weatherization, more efficient heating equipment, wood stoves and the installation of electric heat pumps.