One of the priorities in the 2025 Vermont Climate Action Plan is for the state to join a “cap and invest” program. This policy sets limits on greenhouse gas emissions that decline over time.
How is the cap set?
A low-carbon fuel standard (LCFS) would set a declining limit on the rate of greenhouse gas emissions from fuels. The state would auction “allowances” up to the cap's limit. Fuel distributors would be required to reduce the carbon intensity of the products they deliver by blending or substituting renewable fuels for conventional fuels or providing other low-emitting technologies to consumers.
How is money raised and spent?
The state auctions allowances to fuel dealers up to the cap limit and then invests the revenue in measures and programs to encourage Vermonters to use less fuel.
How much will this cost?
The Vermont Treasurer’s office published a report in February 2025 that estimated it would cost Vermonters an extra 30 cents per gallon in year one, increasing to 80 cents over the next decade.
Read the Assessment from Cambridge Systematics