All Politics is Local: Vermont Municipalities Can and Should Take the Lead in Driving Vermont to Achieve Energy Goals
By Aidan Sitler
The Vermont State legislature has made it easier for thermal energy networks to emerge as a viable option for clean heating and cooling in the State. The State set goals to lower energy costs and reduce greenhouse gas emissions in the Global Warming Solutions Act.[1] Currently, Vermont is expected to fall short of attaining these goals.[2] One of the best pathways for Vermont to achieve the target set in the Act is for towns to lead the efforts and establish municipally owned thermal energy networks.
Why Thermal Energy Networks?
Thermal energy networks “use a shared network of water-filled pipes that transfer heat in and out of buildings.”[3] Thermal heating and cooling systems work by exchanging heat with the constant temperature below Earth’s surface to regulate the temperature inside the buildings.[4] Thermal energy networks use a heat pump connected to the underground network of pipes. [5] The pipe’s water stores heat regulated by the in-building pumps.[6] The pumps regulate heat as a sink to absorb excess heat during the summer months, and act as a heat source during the colder winter months.[7] The more buildings connected to the same network, the more efficient the exchange and stronger the system.[8] Thermal energy networks can replace traditional heat methods that rely on fossil fuels, such as natural gas, and traditional cooling methods that rely on inefficient air conditioning.[9] In addition to replacing these methods entirely, thermal energy networks can co-exist with traditional heating and cooling methods as a way to supplement the majority of the energy needed to run them.[10] Local municipalities benefit from the build-to-scale model for outfitting neighborhoods and existing infrastructure with thermal energy networks.[11]
Why Local Municipalities?
The design and scale of thermal energy networks are what make them ideal for local municipalities to implement and control. Traditionally, in Vermont, any entity wanting to establish a thermal energy network would have to obtain a certificate of public good.[12] The Vermont Public Utility Commission requires a certificate of public good to begin construction.[13] Obtaining a certificate is a lengthy application process that requires many procedural obstacles, reducing a project’s chance of success.[14] Because thermal energy networks are a way of distributing heat among citizens, they would normally be subject to the control and regulations of the public utility commission.[15]
Recently, Vermont enacted Act 142, which changed regulations surrounding public utilities.[16] A major change in the Act is that local municipalities no longer require a certificate of public good or permission from the public utility commission to establish and operate a thermal energy network.[17] The Act now allows municipalities to “have the authority to construct, operate, set rates for, finance, and use eminent domain for thermal energy networks . . . .”[18] This change creates opportunities for municipalities in Vermont to greenlight construction on thermal energy networks. The benefits from the Act for the municipalities include foregoing the application process and regulation from the public utility commission. The benefits from the Act for the citizens come in the form of reduced rates, energy efficiency, and having a voice in their energy needs.
Rate decreases for users in a thermal energy network are reflected in the efficiency of the system. As the network becomes more efficient, the municipality will be able to save on energy costs. These savings can then be passed down as lower rates for every user of the network. Thermal energy networks can also ensure fixed rates for users as they are not subject to traditional fluctuations in cost.[19] These fluctuations occur from the natural gas global market, supply chain, or fuel transportation fees.[20] Instead, thermal energy networks rely on local resources to effectuate heating and cooling.[21]
Citizens will also have opportunities to go directly to the town with concerns and feedback on how their thermal energy network is functioning. This creates a more local, hands-on experience for users of the energy networks in voicing their needs. Inclusion is important for creating an equitable energy system, which is more difficult to do when citizens must navigate the public utility structure.[22] The local management of the thermal energy networks allows for a greater ease of access and accountability in the operations.
For Vermont to get back on track and achieve its goals of lowering energy costs and reducing its greenhouse gas emissions, there needs to be a greater push at the local level. Municipalities are in a unique position to be the best fit owners of a thermal energy network, both within the logistical and regulatory frameworks surrounding the networks. It is time for Vermont towns to take advantage of this new exemption and begin implementing thermal energy networks to address the energy concerns in the State.
[1] 10 V.S.A § 578(a).
[2] Austyn Gaffney, State concludes Vermont is failing to meet its carbon reduction targets, vtdigger, (July 22, 2025), https://vtdigger.org/2025/07/22/state-concludes-vermont-is-failing-to-meet-its-carbon-reduction-targets/.
[3] Thermal Energy Networks, BDC, (Sep. 15, 2025), https://buildingdecarb.org/resource-library/tens.
[4] Geothermal Heat Pumps, U.S. Dep’t of Energy, (Sept. 16, 2025), https://www.energy.gov/energysaver/geothermal-heat-pumps.
[5] Id.
[6] Id.
[7] Id.
[8] Reyna Cohen et al., Understanding Thermal Energy Networks, Cornell Univ. (2024), https://www.ilr.cornell.edu/sites/default/files-d8/2024-12/understanding-thermal-energy-networks.pdf.
[9] Id. at 16.
[10] Id. at 12.
[11] Id. at 15.
[12] 30 V.S.A. § 248(a)(2)(B).
[13] Certificate of Public Good, VEPP, (Sept. 15, 2025), https://vermontstandardoffer.com/standard-offer/request-for-proposals/certificate-of-public-good/.
[14] Id.
[15] Reyna Cohen et al., Understanding Thermal Energy Networks, Cornell Univ. (2024), https://www.ilr.cornell.edu/sites/default/files-d8/2024-12/understanding-thermal-energy-networks.pdf.
[16] 30 V.S.A. § 231(d).
[17] Id.
[18] Id.
[19] Cohen et al., supra note 15.
[20] Id. at 12.
[21] Id.
[22] Certificate of Public Good, supra note 13.