Vermont Recognizes Value of Renewable Propane

Over the past 18 months the Vermont Public Utility Commission has been designing a Clean Heat Standard (CHS), which seeks to financially penalize the use of traditional fossil heating sources, such as propane, and transition customers to other thermal options, including electric heat pumps and wood stoves. Proponents of the CHS see it as a core part of the state’s plan to reduce greenhouse gas emissions.

While many legislators and state officials have been focused on the CHS’ electrification component, the propane industry has continued to make the case that clean, non-electric alternatives should not be financially penalized under the Standard’s programmatic structure.

To that end, Vermont’s propane industry recently secured an important win as state regulators approved the use of renewable propane as a “clean heat measure,” which means that the delivery of renewable propane will be a credit generating activity and, as such, will be financially incentivized. Leslie Anderson, Executive Director of the Propane Gas Association of New England (PGANE), has been engaging state officials on the Clean Heat Standard since it was originally proposed. “I am not surprised that our state where we had our first innovative renewable propane marketer event, is now the first state to formally recognize renewable propane as a credit generating clean heat measure,” Anderson said. “This win demonstrates the importance of promoting renewable propane, and shows the power of small marketer engagement and advocacy!”  

State lawmakers still must take a final authorizing vote in January 2025 for the CHS to have legal effect. As of the 2023 industry sales report, Vermont was 33^rd largest propane market in the country, with 95 million gallons sold. For more information, contact NPGA’s Director of State Affairs, Jacob Peterson.