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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.
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Categories: Housing, State Government
Doesn’t this say it all?
“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.”
In short, Scott is calling out regulatory capture promoted by our varioous elected officials and the constituents who support and profit by their actions at the expense of everyone else.
Importantly, Scott is not directing his version of regulatory capture. Rather, implicitly at least, he is letting the free market function as it should for a change. That, in itself, is a welcome change – ironically consistent with the Pilgrims economic epiphany 400 years ago brought on by the starvation of half their number in three short years.
: https://drive.google.com/file/d/13TxNjuY9IBuaIl4Th5pbvb83PLuW7LvJ/view?usp=sharing
“Setting back the clock” is a step in the right direction IMO, but personally, I don’t believe that it is government’s place to force the people to pick winners and lossers in what should be their choice as to what form of energy they choose to heat their homes, or power their vehicles. Let personal budgetary management, and natural progress decide that not politicians that could profit from decisions which are made.
While I may be misinterpreting Governor Scott’s EO, it appears to me that he is not picking winners and losers but instead allowing the free market to work its proven magic.
Again, I may be wrong in this regard. And, if so, I caution the Governor to: “Beware that, when fighting monsters, you yourself do not become a monster… for when you gaze long into the abyss, the abyss gazes also into you.”
The EO may not have picked winners and losers, but in ‘affordable housing’ the only real winners are not those who need the housing, but the engineers and attorneys pocketing the cash to wade through the regulations to make it happen
When Irene hit Vermont devasted all the infrastructure, they declared an emergency and all permits required were waived, we rebuilt within 1 year to a functioning infrastructure, it was massive, Vermont did not collapse because of this, the fish did not leave, the wildlife is still here, and the Atlantic Ocean did not submerge Vermont.
If we allowed the same for homes under 1200 sq. ft, we’d have nice homes, in every town. No taxpayer money needed.
Instead, Vermont makes Costco go through a permitting process for 10 years to get a few gas pumps and lets Drug Dealers and Thieves operate with abandon, they foster the activity, aid and abet them with the cover of restorative justice.
Some people are noticing that the restoration never happened. They are just letting criminals out! They forgot the most important part of restorative justice, that he person was going to not deal drugs or steal.
Yeah, some people are noticing.
But if you are “connected” to Montpelier, we’ve got a billion dollars for you, easy permitting, special permitting so you can build your taxpayer funded, taxpayer rent supported grift……cronyism is the first cousin to communism.
This housing scam has been going on for way too long, people are getting rich off of keeping Vermonter’s poor and renting from the state/large corporations. It needs to be exposed. Instead, the Governor and Vermont Digger cover for their friends in high places.
Back from 2019, trying to get commentary published….
Hi Cate,
Are you guys going to expose what’s going on in the name of affordable housing? Are you going to print my letter for commentary?
Thanks. Neil
Here is the cover story in Vermont Digger….
https://vtdigger.org/2025/09/18/vermont-poured-hundreds-of-millions-of-dollars-into-housing-during-the-pandemic-what-has-it-built/
It’s not a coincidence this is all happening at the same time…….have to coordinate your grifting with the “press”.
STOP Communist taxpayer subsidized “affordable”, i.e.: “workforce”, i.e.: Low Income Housing in Vermont!!!!!!!!!!!!!!!!!!!
Want a house?
Save up & PURCHASE one, like the successive generations of Americans did before YOU!
I know at least 4 or 5 people around here in Central VT that bought heat pumps, and now have buyer’s remorse. They are expensive, even after the “incentives”. And they don’t work as promised, at least not here in VT. We are too cold and too humid.
The writing appears on the wall, highlighted in a glaring red alert. The numbers don’t lie – people do, especially bureaucrats and politicians. As those in the high echelon seats easily afford the comforts and more, on our dimes, the economic calamity for the rest is unfolding and accelerating. But hey, everything is great – America is hot (meaning our house of cards is ablaze!) The figures reported are likely worse than what they want to admit, but a bellringer nonetheless.
Lending Tree June 17, 2025: “5.1% of Americans with auto loans are delinquent on at least one account. The rate of consumers with a past-due account as of the first quarter of 2025 varies significantly by state, ranging from 3.2% to 9.8%.”
“In the first half of 2025, U.S. mortgage delinquency rates showed mixed results. The Mortgage Bankers Association (MBA) reported a slight decrease to 3.93% for the second quarter of 2025, down from 4.04% in the first quarter, though this is slightly higher than a year ago. However, the Federal Reserve Bank of New York’s data for the first quarter indicated an increase in overall delinquencies to 4.3% of outstanding debt, while the Cotality survey noted a slight annual increase in serious delinquencies. FHA and VA loans, often used by first-time homebuyers, have shown increasing delinquency rates compared to conventional loans. ”
“The student loan delinquency rate has risen sharply since September 2023, when COVID-19 related payment pauses ended, with nearly one in four borrowers in repayment now behind on payments and ~10.2% of total student debt seriously delinquent (90+ days past due) as of Q2 2025, according to the Federal Reserve Bank of New York. Older borrowers are experiencing particularly high rates, with 18% of those aged 50+ seriously delinquent in Q2 2025, while young borrowers (18-29) show the lowest rate of severe delinquency. ”
“Credit card delinquency rates, which measure how many balances are 30 or more days past due, have been rising, with the rate for all credit cards at 3.05% in the second quarter of 2025, according to LendingTree. The Federal Reserve Bank of New York reported a serious delinquency rate (90+ days past due) of 7.18% for credit card debt in the fourth quarter of 2024. Rates are significantly higher for younger age groups, with a rate of 9.36% for individuals aged 18-29 in early 2025, and lower for older groups. ”
CPA Practice Adviser August 12, 2025: “The average total household debt in the US was approximately $152,653 in the second quarter of 2025, with the total household debt standing at a record $18.39 trillion. This figure is a composite of various types of debt, including mortgages, student loans, auto loans, and credit card debt, with mortgage debt being the largest component. “
Local permitting is still a huge obstacle. There needs to be statewide uniformity on certain elements of local zoning.