BILL AS INTRODUCED H.354
2025 Page 1 of 4
VT LEG #380960 v.1
H.354 1
Introduced by Representative Logan of Burlington 2
Referred to Committee on 3
Date: 4
Subject: Public service; energy; thermal energy; thermal efficiency benefits 5
charge 6
Statement of purpose of bill as introduced: This bill proposes to direct the 7
Public Utility Commission to establish a thermal efficiency benefits charge. 8
An act relating to a thermal efficiency benefits charge 9
It is hereby enacted by the General Assembly of the State of Vermont: 10
Sec. 1. 30 V.S.A. § 209(e) is amended to read: 11
(e) Thermal energy and process fuel efficiency funding. 12
(1) Each of the following shall be used to deliver thermal energy and 13
process fuel energy efficiency services in accordance with this section for 14
unregulated fuels to Vermont consumers of such fuels. In addition, the 15
Commission may authorize an entity appointed to deliver such services under 16
subdivision (d)(2)(B) of this section to use monies subject to this subsection 17
for the engineering, design, and construction of facilities for the conversion of 18
thermal energy customers using fossil fuels to district heat if the majority of 19 BILL AS INTRODUCED H.354
2025 Page 2 of 4
VT LEG #380960 v.1
the district’s energy is from biomass sources, the district’s distribution system 1
is highly energy efficient, and such conversion is cost effective. 2
(A) Capacity savings. Net revenues above costs associated with 3
payments from the New England Independent System Operator (ISO-NE) for 4
capacity savings resulting from the activities of the energy efficiency utility 5
designated under subdivision (2)(A) of this subsection (e) that are not 6
transferred to the State PACE Reserve Fund under 24 V.S.A. § 3270(c). These 7
revenues shall be deposited into the Electric Efficiency Fund established by 8
this section. In delivering services with respect to heating systems using the 9
revenues subject to this subdivision (A), the entity shall give priority to 10
incentives for the installation of high efficiency biomass heating systems and 11
shall have a goal of offering an incentive that is equal to 25 percent of the 12
installed cost of such a system. Provision of an incentive under this 13
subdivision (A) for a biomass heating system shall not be contingent on the 14
making of other energy efficiency improvements at the property on which the 15
system will be installed. 16
(B) RGGI. Net revenues above costs from the sale of carbon credits 17
under the cap and trade program established under section 255 of this title, 18
which shall be deposited into the Electric Efficiency Fund established by this 19
section. 20 BILL AS INTRODUCED H.354
2025 Page 3 of 4
VT LEG #380960 v.1
(C) Other funds. Any other monies that are appropriated to or 1
deposited in the Electric Efficiency Fund for the delivery of thermal energy 2
and process fuel energy efficiency services. 3
(D) Thermal efficiency benefits charge; unregulated fuels. The 4
Commission may establish by order or rule a volumetric charge to customers 5
for the support of thermal efficiency programs that are societally cost-effective 6
to implement and support the greenhouse gas reduction requirements under 10 7
V.S.A. § 578. The charge shall be known as the thermal efficiency benefits 8
charge, shall be shown separately on each customer’s bill, and shall be paid to 9
a fund administrator appointed by the Commission and deposited into the 10
Electric Efficiency Fund. 11
(2) If a program combines regulated fuel efficiency services with 12
unregulated fuel efficiency services supported by funds under this section, the 13
Commission shall allocate the costs of the program among the funding sources 14
for the regulated and unregulated fuel sectors in proportion to the benefits 15
provided to each sector. 16
(3) In As used in this subsection: 17
(A) “Biomass” means organic nonfossil material constituting a 18
source of renewable energy within the meaning of section 8002 of this title. 19 BILL AS INTRODUCED H.354
2025 Page 4 of 4
VT LEG #380960 v.1
(B) “District heat” means a system through which steam or hot water 1
from a central plant is piped into buildings to be used as a source of thermal 2
energy. 3
(C) “Efficiency services” includes the establishment of a statewide 4
information clearinghouse under subsection (g) of this section. 5
(D) “Fossil fuel” means an energy source formed in the earth’s crust 6
from decayed organic material. The common fossil fuels are petroleum, coal, 7
and natural gas. A fossil fuel may be a regulated or unregulated fuel. 8
(E) “Regulated fuels” means electricity and natural gas delivered by a 9
regulated utility. 10
(F) “Unregulated fuels” means fuels used by thermal energy and 11
process fuel customers other than electricity and natural gas delivered by a 12
regulated utility. 13
Sec. 2. EFFECTIVE DATE 14
This act shall take effect on July 1, 2025. 15