Written on: August 1, 2026 by Joe Uglietto
Price increases and demand increases are a powerful combination in an environment where affordability has become the top issue for most people. By extension, it’s become a top issue for our elected officials as well. Higher energy prices, combined with increased energy demand from a colder than normal Winter, has put serious pressure on policy makers to avoid legislation or regulations that would increase costs for their constituents. Adding to that, skyrocketing electric prices have further squeezed homeowners. As a result, States have been scrambling to provide relief. In places where there are no easy solutions, legislators are applying a doctor’s first rule to decarbonization programs: Do No Harm.
We shouldn’t expect this dynamic to last forever, but it has altered the landscape. A few years ago, 2026 would have been viewed as Year One in the implementation of certain programs. Now, we’re likely 18 months away from initial program roll-outs. However, that doesn’t mean all is quiet in New England and Mid-Atlantic State houses—far from it. Here’s where State renewable energy programs stand around New England and the Northeast.
Update on Market-based Decarbonization Programs
Maryland
In perhaps the biggest news, Maryland is aggressively moving towards implementation of a Clean Heat Standard (CHS) in 2028. The stakeholder process has begun and the Maryland Dept. of the Environment (MDE) has started to form a CHS. Multiple stakeholder sessions have been held by MDE, providing guidance on the CHS and a public comment period is currently open, requiring stakeholder comments to be submitted by July 31. Where it seemed like Massachusetts or Vermont would have been the first States to adopt a CHS until this year, it’s now most likely that Maryland will be the first State out of the gate.
Massachusetts
The Massachusetts Dept. of Environmental Protection (MassDEP) planned to implement its CHS on Jan. 1, 2026. However, a formal announcement was made by MassDEP earlier this year that the CHS has been delayed and will be phased in no earlier than 2028. The reasons cited for the delay were three-fold. First, MassDEP wanted to gather more information from the greenhouse gas (GHG) reporting program, 310 CMR 7.71, and the Massachusetts Dept. of Energy Resources’ (DOER) Large Building Energy Reporting program. Second, the DOER wanted to analyze affordability trends, citing the new reduced electricity rates for heat pumps that have been implemented in Massachusetts, along with changes to Federal tax incentives for heat pumps. Lastly, the DOER wanted to monitor heat pump adoption, which the CHS framework based on the Mass Save rebate program that has changed significantly due to reduced funding.
We now have certainty that the CHS will be implemented no earlier than 2028 and there is no indication that any other program is being considered for heating fuels. While we haven’t seen a draft regulation, we do have the draft framework and have a good idea of what the CHS will look like when implemented.
Vermont
The Vermont Legislature voted a CHS into law, only to then eliminate it at the recommendation of the Vermont Climate Council during the check-back provision included within the law. Vermont is now considering an economy-wide Cap-and-Invest program and the rulemaking process has already begun. It is likely that Vermont will move forward with a Cap-and-Invest program, but likely not for a few years.
New York
The New York Cap-and-Invest program (NYCI) is in development. This economy-wide cap on emissions will impact all fuel dealers. Cost concerns and significant consumer pushback has delayed its development, but it appears that the Empire State will move forward with the program in spite of the opposition. Despite the intention of moving forward, the delays have allowed New York to adopt the 100-year lifecycle analysis for GHG emissions, joining nearly every other State in the country. The GHG accounting methodology was included in the recently passed budget, along with a provision that rules and regulations for a Cap-and-Invest program be promulgated no later than Dec. 31, 2028. In addition to the Cap-and-Invest program, New York is considering a Clean Fuel Standard for transportation fuels.
Other States
There has been talk of CHS in other States as well, and we will likely see Connecticut, Rhode Island, New Jersey and even Pennsylvania consider them, but time will tell.
After a cold Winter and high home heating costs, States trying to adopt wide-ranging decarbonization programs have delayed implementation. However, 2028 isn’t very far away, and in the Northeast, the long arc of policy-making remains bent towards decarbonization. ICM
Renewable Energy Insights is a regular column by Joe Uglietto, President of Diversified Energy Specialists, with a focus on emissions reductions & renewable energy innovation. DiversifiedEnergySpecialists.com
