Vermont

In June 2024, the Vermont State Legislature passed “Act 148 (the Transportation Bill)” which included a requirement for the Agency of Natural Resources and the Agency of Transportation to study a cap-and-invest program as a potential approach to help the State achieve its climate pollution reduction goals. Vermont participates in the Regional Greenhouse Gas Initiative (RGGI) for CO₂ emissions from the power sector. The cap-and-invest study will explore the advantages and disadvantages of covering additional sectors in a multi-jurisdictional program.

A cap-and-invest program was also presented in the 2023 “Vermont Transportation Carbon Reduction Strategy” as a potential policy to close the gap between actual and required GHG emissions levels in Vermont’s transportation sector.

The study legislated by Act 148 is guided by a Technical Advisory Committee that includes representatives from the Vermont Climate Council and the State Treasurer’s Office in addition to staff for the two agencies. After scenario analyses and stakeholder and public engagement meetings in October 2024 and January 2025, the study will culminate in a recommendation from the Treasurer’s Office to the legislature for a policy approach for consideration in the 2025 session.