Commentary

Roper: Clean Heat Standard exploding on the launch pad

A perfect storm of legislative incompetence and bureaucratic bumbling

Screenshot of rooftop solar panels ablaze
KTVU FOX 2 San Francisco via Youtube

by Rob Roper

The Public Utilities Commission (PUC) is the state entity charged with writing the rules for and overseeing the Clean Heat Standard (S.5/Act 18). Their first main task in this role was to create a registry of all fuel dealers in Vermont, collecting data on exactly how much fossil fuel is used in the thermal sector, where it comes from, and where it ends up. The deadline for fuel dealers to register with the PUC was set in law as January 31, 2024.

Problem #1: The PUC, which had six months to develop the registry, didn’t make it available until January 17, 2024, giving dealers — whom the PUC also has no way of notifying that they have to comply because the PUC doesn’t know who they are — two weeks to gather twelve months’ worth of minute data on their businesses. At, not for nothing, the absolute busiest time of the year for heating fuel suppliers.

As one fuel dealer, identified on the call as Casey C., put it, “You’re essentially giving us two weeks to fill everything out for all of 2023. Which, of course this is coming out at a time where we’re also at deadlines with the state for tax filings, monthly, quarterly, annual reports, and, it happens to be the busiest time for the industry in taking care of our customers and keeping people warm when it’s cold out. So, I’m just wondering a two-week notice? Is there any way to file for an extension if we can’t get all that information in that short period of time?”

That would be no. There is no provision in the law legally allowing for an extension (although the PUC did, in the end, jury-rig a compromise by getting the Attorney General to agree not to prosecute anyone who filed after January 31 and before February 29, 2024 because, ya know, February is so much less busy for people who deliver heating fuels in Vermont.)

But remember, this little helping of pure meanness is not a bug in the law, but a feature. When fuel dealers explained to legislators the complications a January deadline would cause and asked for a July deadline instead, Senator Dick McCormack (D-Windsor) infamously quipped, “They want to be making deliveries to their customers during their peak season. We want less dependence on fossil fuels. Make it so they can’t deliver. That’s a dirty trick!” (See the video.) Yes, it is dirty. And still the unworkable – for everybody, including the PUC – dirty January deadline went into the final law.

Problem #2: The information the fuel dealers are required by law to provide is, admitted Tom Knauer, an attorney for the PUC, “unknowable.” He sheepishly explained, “We are implementing that statute and collecting the information required by the statute.”

As Judy Taranovich of Proctor Gas explained, “You want us to register thermal gallons. I have homes that have heating, hot water, cooking stoves, generators, dryers all on the same system. There is no possible way – it is a question that cannot be answered how much goes to just the thermal sector versus a cook stove, a generator. When the generator comes on, what portion of that is going to the thermal sector versus the cooking sector or a dryer? How many people in the house? How long were they out of power? You are asking us an impossible question. We can’t possibly be fair to either side to answer that question…. I don’t know how we can fill this out and be honest or fair either to myself as the gas company or the customer.”

But if the fuel dealers don’t supply “unknowable” information, they can be held legally liable. It’s a Catch 22. Thank you, incompetent lawmakers.

Problem #3. The PUC is itself clueless about how to accurately gather this information and can offer no advice to dealers on how to comply with the law they are charged with overseeing the compliance thereof. (Really, it would be funny at this point if the consequences of this insanity were not so dire.)

Lisa Shaddok of Proctor Gas followed up on Taranovich’s observation about unknowable information by asking, “How can we be accurate when you don’t have a formula that we can use? I can make up my own formula but are you going to come and tell me it’s wrong? Because it’s a guestimate….  I can come up with a guestimate, but are you going to tell me it’s wrong because you don’t agree? Is there going to be a formula in place to help us do this correctly? 

After a long, awkward pause, one of the PUC experts chirped, “We don’t have a formula at this time.”

Taranovich pressed, “So what do we put down?” Which only elicited another long awkward pause followed by another useless response of, “I see your frustration.” No answer. Clueless.

Over and over again the PUC team stated that they could not offer “legal advice” on how to comply with the law. But fuel dealers can’t get private council — if they could afford it in the first place — because the legal rules governing the CHS have not yet been written for a lawyer to read. If this is a joke, it’s a cruel one.

Problem #4: The PUC has no way of knowing/validating if the information provided by the fuel dealers is correct – or even who provided the information!

Casey C. asked, once the form is submitted, “How do you validate the legitimacy of it? I ask out of the security concern that right now the forms are open to anybody, and anybody can fill them out and claim to be anyone. So, I’m just wondering about how you validate the forms once they’re submitted that the person who submitted them actually has authorization to submit them on behalf of the company.”

Another one of those long awkward pauses.

One of the PUC spokespeople responded, “I believe that the department [of public service] is going to be helping us do that validation. And I would add that the attestation on that signature page is kind of certifying that the information that’s being put in there is true and correct.”

“Yeah, but it’s not really a signature,” Casey C. points out. “I mean, you can draw whatever. It’s not really a signature that can you can validate as someone’s real signature.”

Awkward pause… “We are not at this time asking for anything other than the attestation.” So, I guess the Public Service Department is NOT going to help the PUC do that validation. Just no validation.

Which begs the question, how is the PUC, which can’t even validate the information its requesting from potentially a couple hundred fuel dealers, going to ultimately validate the information regarding literally hundreds of thousands of “clean heat measures” – the actions such as installing heat pumps and weatherizing homes etc. that generate valuable “clean heat credits” base on the real, calculated amount of CO2 such actions remove from the atmosphere — happening all over the state? Are they just going to accept some “signature” from any unverified anyone as attestation to the validity of a clean heat measure and its value? And pay that unverified anyone in credits just for filling out a form? Because, folks, that is a guaranteed recipe for massive fraud.

This total imbroglio is the fault of incompetent legislators signing onto a law that they did not understand – didn’t even bother to try to understand – and a bumbling bureaucracy that lied on its resume when they testified multiple times that they would be able to implement a law of this magnitude, filled with so much minutia, and so many contradictory and “unknowable” mandates. And, this is only just beginning.

Rob Roper is a freelance writer who has been involved with Vermont politics and policy for over 20 years. This article reprinted with permission from Behind the Lines: Rob Roper on Vermont Politics, robertroper.substack.com


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Categories: Commentary, Energy, Environment

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30 replies »

  1. I will be looking forward to the Legislatures explanation as to why they pass such bumbling legislation. Not well thought out and costing taxpayers $$$$. So the publics retribution to such inane antics is to vote the fools out! Act soon!

    • It just keeps getting worse.
      Unfortunately we can’t vote them all out at the same time!

    • Were I a resident of Windsor county, dick mccormack would be a target for removal from office. His arrogance coupled with his self will to trample both the Vermont constitution and the oath of office renders him incompetent to serve. Likewise ms. rebecca white seems to share equal contempt for the voters of Windsor county. These two make a fine pair, if Vermont had a politbureau instead of a constitutional representative republic.
      Every election is touted as “critical”, perhaps this Nov. 4th is one of the most critical of our lifetimes- with the short answer being that there isn’t enough to tax in Vermont to sate the needs of this current elitist legislature.
      As the “unintended consequences” unfold with S.5 (as with every radical bill and act for the last several decades) Mr. Roper’s warnings will come true- that the smaller independent fuel dealers will be forced out- sell out and close up shop. I am aware of one fuel dealer that has already sold to a larger out-of state jobber-
      taking jobs and tax revenue out of state- but still delivering fuel to Vermont’s homes and farms at a significantly higher cost. Vermont can not develop the infrastructure required for S.5 in a generation- let alone by 2030. Need proof?
      The PUC cannot even produce a required form and formulas to comply with this foolish law.

  2. Thank you Rob Roper for shining a light on this. The legislature is keeping quiet about S.5 this session because it is already the law and the final vote does not happen until the next biennium, so your reporting is crucial. It’s not like the PUC didn’t try to prepare for this nightmare by requesting a ton of money to build this rocket. Alas, they are only human. Then again, so are the taxpayers.

    The fiscal note on S.5 from the Joint Fiscal Office of the Legislature:
    “Fiscal Impact
    JFO estimates the bill would have a $1.725 million fiscal impact on the General Fund for fiscal year 2024.
    The fiscal impact of the bill would likely be greater in future years because of increased investments over time. The bill contains two appropriations from the General Fund for fiscal year 2024:
    • $825,000 for the Public Utility Commission to pay for three new full-time employees (FTEs),
    consultants, per diems for members of the two advisory groups, marketing and public outreach, and
    translation services; and
    • $900,000 for the Department of Public Service to pay for three new FTEs, consultants, and funding
    to complete the potential study and economic modeling. This appropriation reflects a recent request from the Department of Public Service.”

    • This spending to results ratio is giving me a stroke. Can we sue for emotional distress, and abuse? Didn’t slavery become unconstitutional this year? How is this not a jailable offense?

  3. “incompetent legislators signing onto a law that they did not understand – didn’t even bother to try to understand – and a bumbling bureaucracy.” Incompetent ? bumbling ? The Dickens’ you say ! Whoda thunk it !!!

    • “we have to pass the law, to see what’s in the law”…or something to that effect…isn’t that what Pelosi once said?!

    • I am almost tired of reposting Thos. Sowell’s quote on apparently, Vermont’s legislature…

      “The most fundamental fact about the ideas of the political left is that they do not work. Therefore, we should not be surprised to find the left concentrated in institutions where ideas do not need to work in order to survive”

  4. just ordered another load of fire wood for next year/// keep your hands off my wood stove/// or the judge will rule the day///

  5. This is where virtue signaling legislation gets you. Doesn’t matter if it’s “clean heat”, DEI, environmental or racial justice….none of it holds up to any critical inquiry. Thank you for publishing this. Sadly, it will not make larger media coverage because it exposes truth and the utter incompetence of our law makers.

  6. The fear mongering by the supporters of this epic disaster will soon be drowned out by the economic reality a.k.a. THE TRUTH. Expect the crowd in Montpelier to trot out Sebilia from Dover for some pathetic mumbo jumbo and wordsmithing on how we will all die if we don’t stop keeping our houses warm in the winter.

    Government truly does screw up everything it touches.

    Thanks Rob we appreciate your hard work.

  7. Once the PUC “fulfills” its obligations anyone can sue them for supplying erroneous, false, and misleading information to the legislature. Is that a felony?

  8. “We the unwilling, LED BY THE UNKNOWING, are doing the impossible, for the ungrateful, we’ve come so far, done so much, with so little, we’re now able to do anything, with nothing at all, we the unwilling”

  9. The good news it is all blowing up in their faces – just like the EV bikes exploding into flames, EV vehicles dead on the road, EV buses parked dead in lots, and the EU farmers blowing manure onto government buildings. I wonder how the insurance brokers like paying out property and liability claims above and beyond their premium hikes? It is getting extremely hot under many a collars these days! Hallelujah!

  10. If a Texas Ranger kills a Border Patrol agent, would he or Ayatollah Abbott or both be eligible for the Federal death penalty?

    • I’m pretty sure in that case, just you would be.

      See? STILL can’t outwit anyone. Try employment.

  11. Hello Guy.
    Just to let you know that in answer to your question that you e-mailed me last night. I am not a “bot”.
    I’m a human with a pulse, unlike your hero the Dotard.

    • Makes no sense whatsoever, therefore no wit attained. Irrational & disordered thought. Yet again…..

      But do try that whole employment thing I mentioned.

    • There are bots, and there are trolls. Both are programmed to distract, get an emotional rise out of you and degrade the quality of dialogue. Best to just ignore and move on.

  12. What about the out of state dealers that deliver to Vermont? How will they be affected??

  13. Waiting for Sibilia to chime in to scold Rob for misinformation, out of context etc. Hmmm, is that crickets chirping???

  14. Rob Roper is performing a great public service by documenting this madness. Not that documenting it will change anything. But when the lawsuits start flying because mom and pop dealers and their customers are assessed (taxed) for excess CO2 based on made up numbers and imaginary ‘benefits’, Rob’s files might provide some amusing exhibits for the court to consider.

  15. But we do know the one thing the left hates is shining a light on their stupidity. Keep up the good work Rob!!

  16. Yes Rob – you are a treasure. I sent this article to every single senator and house member with a few choice words of my own. Please everyone – write them. I told them to focus on crime and housing so our youth can have a chance to get a decent place to live. In Burlington the Memorial Auditorium and the YMCA should be sold with the condition of making them into apartments and create some tax revenue and housing!