January 1, 2025
The First of Three: Vermont’s GWSA Mandates and What’s Ahead
The start of the new year marks a key milestone under the Vermont Global Warming Solutions Act (GWSA), a landmark law passed in 2020. The GWSA mandates that Vermont reduce its greenhouse gas emissions by 26% from 2005 levels by 2025, setting the stage for even more ambitious goals in the future. By 2030, emissions must be reduced by 40% compared to 1990 levels and by 80% by 2050. While we just passed the first deadline, the state is already being sued for non-compliance. An environmental organization has filed a lawsuit that claims not enough has been done. If a state Superior Court judge rules against Vermont, the Agency of Natural Resources could be required to implement the “Vermont Climate Action Plan.” This plan includes key regulations like the Clean Heat Standard and the Advanced Clean Car and Truck Rule, which mandates that fuel dealers sell less fuel and that vehicle manufacturers sell fewer gas-powered cars and trucks.
In response, newly elected Republican leaders in the Vermont House and Senate are pushing to limit the state’s legal exposure by making it harder to sue over non-compliance. They argue that these mandates, if enforced, could cause “undue damage” to Vermont families and the state’s economy. Auto manufacturers have expressed skepticism as well, with some saying it would take a “miracle” to comply with Vermont’s Clean Car Regulation, especially now that state funding for EV incentives has run out. Learn more about why it will take "a miracle." Complying with the truck mandate will take much more than a miracle. Half of all new Class 2b-8 trucks sold in Vermont must have zero emissions by the end of the decade. Less than 1% of commercial vehicle sales are ZEVs. New electric trucks cost two to three times more than comparable diesel vehicles and do not offer comparative performance and range capabilities. Additionally, there is no commercial vehicle charging network, which makes customer adoption of heavy-duty ZEVs and their day-to-day use impractical until the charging network is built.
The push to reduce gasoline and diesel consumption goes beyond vehicle mandates. The Climate Action Plan, which will be updated in June 2025, is expected to propose Vermont’s participation in a regional Cap and Invest program that would further limit the sale of motor fuels— or increase the cost. Unless the GWSA is amended, these policies could be enforced by court order at a significant expense to Vermonters.
Cleaning Up the Clean Heat Standard
The Vermont Legislature could decide this year to enact a Clean Heat Standard. While the results of the November election make that increasingly unlikely, parts of the law will remain in place even if no action is taken. This includes the Fuel Dealer Registry. Failure to register could be considered a violation of the Vermont Consumer Protection Act, which is enforceable by the Vermont Attorney General and carries a fine of up to $10,000. This is required of all fuel sellers, including small retail stores that fill or exchange propane BBQ tanks. Or sell kerosene from a stationary pump.
New Fees for EVs
As of January 1, 2025, registered electric vehicle (EV) owners in Vermont will pay a new annual fee. Battery electric vehicles will incur an additional $89 registration fee, while plug-in hybrids will be charged $44.50. With the growing number of EVs on the road, this change is expected to raise approximately $1.7 million by 2026. The revenue from these fees will be used to expand Vermont’s EV charging infrastructure. None goes to fix Vermont’s roads. At least not until the state creates a Mileage-Based User Fee (MBUF), which won’t happen until at least 2026.
Click here to watch an overieview of Vermont's Clean Heat Standard and EV Mandates from Matt Cota of Meadow Hill.
Counting Gallons and Taxes
Vermont’s gasoline tax is down slightly in Q1 2025 by about half a penny a gallon. That's because the average price per gallon has gone down. Sales are up slightly compared to the six-year average and where we were last year. For more information on taxes and sales of gasoline and diesel, go to the Motor Fuel Index. Information on heating fuel sales in Vermont an be found on Heating Fuel Index.
Time to Split
The Split the Ticket Fund has delivered over 100,000 gallons of free heating fuel in Vermont since it was founded in 2007. Check out ticketsplit.org and find out how you can donate dollars or gallons this winter. Thanks to Senator Peter Welch for showcasing how Vermont energy companies are helping their Neighbors in need. Watch the MeadowHill Media report here.
