By Guy Page
In 2023, the supermajority Democrat Legislature passed the Clean Heat Standard (AKA ‘Affordable Heat Act’) to transition home and commercial building heat from fossil fuels to electrification. Simultaneously and with less fanfare, the Legislature upgraded renewable building codes making it harder to get a building permit without installing heat pumps.
Yesterday, Gov. Phil Scott signed an executive order to, in effect, set the clock back to 2020 and less electrification-stringent building codes.
Vermont’s first Renewable Building Energy Standards passed in 2017 and took effect in 2020. They didn’t push hard for electric heat as a condition for building permit approval. By contrast, the newer (2024) RBES put their thumb on the scale for heat pumps and other carbon-reducing measures more important for regulatory approval, an Efficiency Vermont powerpoint explanation (pg. 33) states:
• Emphasis on whole-house electrification – high points value associated with using airsource, ground-source, and air-to-water whole-house heat pump systems
• Heat pump water heaters and water conservation are also emphasized.
• Many points options for increasing thermal shell performance and windows.
• Insulation Embodied Carbon – Points available now for considering Global Warming
Potential impact of insulation material choice.
Scott’s September 17 executive order doesn’t waive the 2024 RBES. Nor does it invalidate the Clean Heat Standard, which successfully withstood a Senate repeal this year but appears to have little chance to take effect due to predicted high costs and commensurate second thoughts, even among Democrat lawmakers.
What the EO does – among other things – is give builders the choice to follow either 2020 or 2024 versions.
Scott took executive action because “we desperately need” more housing, he said.
“For years, I’ve been sounding the alarm about the housing shortage in Vermont. And despite many agreeing, we haven’t done anywhere near enough to make a real dent in the number of homes we need in Vermont,” said Scott at the EO signing at the State House yesterday. “This executive order addresses many of the challenges we’re seeing, to help developers and homebuilders, so we can make a dent in the number of homes we desperately need.”
Permitting isn’t the only barrier to new home construction, but it’s significant and one that government can address directly, he said in his EO:
“Regulatory barriers, lengthy and costly multi-tiered permitting processes, unpredictable appeal processes, and unaffordable and technically challenging energy standards significantly increase construction costs, delay timelines, impair economic opportunity, and exacerbate Vermont’s demographic and affordability crises.”
Currently, a quarter of Vermont renters spend more than 50% of their income on housing costs, which will continue to trend in the wrong direction if action isn’t taken, a Scott spokesperson said.
Professing the same spirit of urgency, House Democrats pledge to evaluate his EO.
“While the Governor did not communicate with us prior to today’s executive order, we are encouraged to see the Governor join us in recognizing the need for urgent action,” Mary-Katherine Stone, spokesman for House Democrats, said in a written statement. “In the days ahead, we will carefully review the order to ensure it reflects Vermonters’ values and priorities while protecting our environment.
“Our work during the last session laid important groundwork, but it was by no means the end of the road. Legislators remain focused–inside and outside of the session– on identifying practical, meaningful steps to increase the availability of housing that is affordable, accessible, and appropriate for communities across our state.
“If elements of the Governor’s executive order fall short of those goals and our shared values, we will work with him to find common ground and keep progress moving forward. Vermonters can’t afford delay, and neither can we.”
The entire EO can be read here.