Publisher’s Note: Vermonter Alison Despathy’s SUBSTACK is spot on. Clearly, Vermont’s elected leadership seems possessed by the religious ideology of “Climate Change” uber alles, so much so that Montpelier is contemplating passing legislation that will enrich Vermont business/nonprofit stakeholders promoting All Things Electric at the expense of Most Of Us. Madness.  Please contact your elected representatives and raise your voices. Read all the way down to see Senator Andrew Perchlik’s rationale for supporting S. 5, and Alison’s response. 

S.5- The Devil is in the Details

Wait- what details?- I have never been a fan of cliches but every now and then they are perfectly appropriate. No one is talking about the details of S.5-the UN-Affordable Heat Act. Any attempt is thwarted because it instantly reveals the unethical, highly detrimental, and unrealistic goals and costs. Forget throwing carrots or sticks- this is a bomb that sacrifices and further burdens small businesses, Vermonters and our economy.

Most of the time when I speak with a legislator at the statehouse who is currently supporting the UN-Affordable Heat Act- I hear buzzwords- enough buzzwords to be drunk on the floor- trust, equitable, guardrails, resilience, just energy transition, affordable, energy independence. My questions are:- What guardrails, Trust who? Equitable how? Who’s paying? The misconceptions and lack of details are actually appalling.

It reminds me of that horrible joke- How many _______ does it take to screw in a light bulb? How many people, organizations and evidence will it take for the legislators to amend a harmful bill or better yet kill it? Is it possible for ideological diehards to walk away from a toxic bill- so much money and time spent- will they choose Vermont or will we be sacrificed?

On February 14th, Ben Edgerly Walsh, VPIRG’s Climate and Energy Director sent out an email blast to Support the UN- Affordable Heat Act. Walsh stated, “This bill will finally require the fossil fuel industry to help fund the transition to cleaner, more climate-friendly heating solutions in an affordable, equitable way for Vermonters.”

This gross misunderstanding also permeates the statehouse. Representative Campbell wrote in a recent Caledonian Record article- “The only ‘obligated parties’ are the fossil fuel distributors, who until now have not been required to take responsibility for the climate altering effects of what they sell.”

These statements are false in that they do not account for the fact that the majority of the 150 or so small, local fuel dealers in our state ARE THE DISTRIBUTORS. Senator Bray is correct when he says the company that crosses the border owns the title and thus is the “obligated party” but he never mentions that 80% of the small, locally owned, family fuel dealers cross state lines to pick up fuel.  This effectively makes them the ‘obligated party’- now responsible for paying for this ‘just transition’. These local businesses cannot and should not carry this burden, they will have to pass it to their customers- Vermonters cannot and should not carry this burden either- we’re already struggling to pay basic expenses.

Many think S.5 is sticking it to Big Oil and Big Oil is paying for this ‘just transition’. This is how it is sold. In reality- proponents of S.5 are sticking it to their neighbors, friends, family, and local businesses. These small, local fuel dealers provide jobs, heat, payment plans for those struggling, and often the sports uniforms, playing fields and multiple other donations that make a difference in our communities. S.5- The UN-Affordable Heat Act is exactly how you destroy an economy and a community- this is a detail- a really important detail

Let’s look closer-

There are only two propane and three heating oil wholesale terminals in the state. Most fuel dealers, especially in rural areas, buy directly from several out of state wholesalers. Relying on only one means price gouging and a monopoly. With access to options, there is competitive pricing and local fuel dealers can get the best prices for their customers.

Continuing to engage in this practice would make small fuel dealers the ‘obligated party’ now responsible for purchasing or creating meaningless carbon credits to offset their fossil fuel sales which are necessary for their customers who need reliable heat.  One cannot solely rely on heat pumps – these are supplemental systems unless you are wealthy and can consider a full-on multiple heat pump install and depending on temperatures this often doesn’t work without backup. It also creates full dependence on the grid for heat which for most is a No-Go.

The largest fossil fuel sellers and utilities in VT support S.5 because in the world of bogus carbon credit trading they can weather the financial storm that this legislation brings and will actually benefit from playing the carbon market. Small fuel dealers will now be forced to decide if they need to stop the practice of price shopping and be bound to one of the few state terminals in order to avoid becoming an ‘obligated party’. Regardless- the price increase is real and will be passed to customers.

S.5 does exactly the opposite of what it promises– it promotes big business including Big Oil, creates monopolies, feeds the highly profitable, carbon trading market and sacrifices people and VT businesses on the altar of ideology and bogus environmental justice. Most of these small fuel dealers have already been working for decades to install heat pumps and efficient systems that reduce fossil fuel consumption, and promote weatherization plans and renewable options. S.5 and its proponents now want to make everyone pay- literally and figuratively – that is the bottom line and it will undoubtedly bring destruction. We must demand the details and see this for what it really is- a gut punch to Vermont.

SENATOR PERCHLIK/MS. DESPATHY’S RESPONSE:

Thank you for your response Senator Perchlik- it is very much appreciated.

This information offers deeper insight. I always knew how toxic and predatory this bill was but now I see how truly parasitic it actually is. Essentially this system must be put in place so that when the $59 million comes from the ironically named Inflation Reduction Act (IRA)- VT can be sure that everyone is counting carbon credits for these measures so more money can be made on the carbon credits for at least some companies to greatly benefit- like the electric utilities and big gas companies. If not- fees apply and in the meantime heating fuel will cost more even though it’s still a necessity for many in VT.

In theory S.5 sounds good and the ultimate goal and intention are coming from a virtuous place but the path towards the final goal is highly destructive to local businesses and Vermonters. This is the unethical and compromised nature of this bill.  This is the reality despite any long-term goals of being fossil fuel free and not bound by the volatility of fossil fuel markets-

S.5 crushes an entire industry and makes them essentially pay for this transition- which is not a just transition by any means. Would we do this to the farmers who grow genetically modified crops and spray glyphosate even those these are highly toxic and create environmental and human health problems?  Would we do this to grocery stores who sold margarines made with hydrogenated oils and are responsible for 100,000s of heart attacks and deaths.  Would we do this to doctors who prescribed medicine now banned for causing damage and death? This is not how we treat local businesses who have been essential to our communities for generations.

Ultimately it seems then that instead of being satisfied with $59 million  from IRA and working hard to ensure this gets used and taken advantage of as best possible for the sake of Vermonters, this bill ensures an opportunity to create carbon credits for this flood of money and is setting up the framework with the entire thermal sector to ensure that as many carbon credits as possible can be generated from this influx of money.  And there are penalties if you don’t comply or if you don’t create enough credits.  This is parasitic and predatory and completely takes advantages of these small. fuel dealers who have been doing this work for decades and transitioning Vermont as the technology is available and affordable.  Do you know how the credits are being handled? sold? or transferred into their worth for profit with some given to low- and moderate-income Vermonters after they have all paid for them to be generated by increased prices in fuel?  Pretty twisted logic and really greedy to use the fuel dealers to excel in the bogus carbon market this way.

Were you able to look at my other email- these small local fuel dealers are the obligated parties by definition at this time and they are now forced to buy fuel or propane from one wholesale terminal if they do not want to carry the weight of being an obligated party.  Really though this doesn’t matter because the cost will still be passed to them and thus the customers and many will struggle with further financial burdens.  And because the uptake of eligible measures is optional- now obligated parties can either not play the game and be fined or take a risk and try to accrue enough carbon credits to turn in so they are not fined a non-compliance fee.  So who really is paying for this transition- the people and the small fuel dealers- that’s who.

People want off fossil fuels and want reduced consumption and costs- this is in motion but forcing it on the people of Vermont through this legislation is unjust.  Inflation is rampant, people are trying to rebuild from covid and honestly the technology and the grid need to evolve more.  Do you trust full on eletrical heat?  People stll need a backup and unless you are loaded, paying for batteries or back up systems plus supplemental systems is simply not realistic for most Vermonters even with no interest, long term loans.

Have you talked to the people in Washington County about the details of this bill and the fact that it will indeed lead to increased costs in heating fuel but we cannot tell them how much yet? What will people think when they really understand how this will work? Will they ever know?  Even Senators McCormick and MacDonald- bless their hearts- had no clear understanding of this convoluted bill.

Isn’t $59 million enough to start with? If not, We could at least provide a short circuit. amendment based on detrimental costs to consumers.  A provision could be added that does not require small, local fuel dealers to have to buy out of state carbon credits if they cannot create enough on their own based on their community’s needs and desire to take part.  We can ensure protections that these small buinesses will not be forced to close if they cannot carry the financial burden. An eligible measure could be a fossil fuel system that reduces fuel by half.  There are many who will not install a heat pump because it is a supplemental system and not reliable or efficent at certain temperatures.  There are actual guardrails that could be put in place to ensure Vermonters are protected during this transition. Suggestions for these have all been ignored. Further – the grid deficiencies, increased energy burden and poverty in rural areas are also part of this conversation.

Equity does not stop at Vermont’s borders.  This transition demands a high increase in biofuels which cause massive deforestation and pesticide use and all the exisitng collateral damage from this not only in this country but also in South America- Brazil in particular- where lands and people are cleared and poisoned because of high increases in genetically modified sugar beet production to try and keep up wth the demand for “renewable” biofuel. This is a dangerous path and even with an eventual phase out- the damage will have been done and the demand will only increase.

The other aspect to all of this is the carbon market-  the entire design is essentially ensuring that carbon credits are produced so they can be transferred into money for the larger gas companies, default delivery agent  and ultilies to benefit.  This is one of the most appalling aspects of this bill.  It forces the global emissions trading market for larger companies to profit and the little guys to be sent scrambling to gather these credits in order to do business or be bound to a wholesale dealer in a monopolesque situation with extra fees passed to them.

Th Nature Conservancy has been engaged in buying meaningless carbon credits in order to sell them to companies like JP Morgan, Disney, Blackrock so they can offset their fossil fuel consumption and environmentally unfriendly practices-  now small businesses in Vermont are essentially forced to enter this game in order to make money for larger companies and pay for this transition.

This is destructive policy and regardess of how much we all love the environment and want off fossil fuels- destroyoing livelihoods, our economy and many Vermonters’ way of life does not serve.

As you know there are many layers to this conversation. I am so sorry for the length of this but it needed to be said. I am appalled at this bill and that it is being considered and moved through. It does not serve Vermonters and I see no real equity or affordability in this here. It is inherently parasitic.

Thank you so much for your time.

Please consider real guardrails

Please consider just using the $59 million as a starting point.

Please watch out for the people.

Please don’t rope us all into higher prices and bogus carbon markets.

Gratefully and Respectfully

Alison Despathy