Report, A Comparison of Clean Heat Standards: Current Progress and Key Elements

This February 2024 report surveys the emerging field of Clean Heat Standards (CHS) across the United States, including two enacted programs and several pieces of proposed legislation. It offers a comparative analysis as well as insight from policymakers in the field, considering the design parameters of CHS programs.

A Clean Heat Standard (CHS) aims to reduce the thermal sector’s greenhouse gas emissions is gaining traction in multiple jurisdictions. At least ten states in the United States are considering the policy, with Colorado and Vermont having enacted legislation and Massachusetts and Maryland considering CHS regulation. A CHS is a performance standard that requires thermal fossil fuel suppliers to deliver a steadily increasing percentage of low-emission heating services to customers. Its compliance is demonstrated through a “bottom up” tallying of estimated emission reductions from various individual clean heat measures. CHS structures can vary in the range of clean heat measures that are eligible, as well as the extent to which clean heat activities can be generated by different market actors and then traded and/or sold. Of the four states whose CHS policies are highlighted in this paper, Colorado does not allow credit trading while Vermont does. Massachusetts and Maryland are also considering credit trading CHS structures.