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Is the MA Clean Heat Standard a Hidden Tax?

Last fall, MassDEP released a draft framework of the Clean Heat Standard that is set to take effect in the near future. Since our customers are heating fuel users in Massachusetts, we are taking it upon ourselves here at PayLessForOil.com to be as transparent as possible about what this new policy will mean for you. Although nowhere in the CHS policy are these initiatives referred to as an outright “tax” from the MassDEP, the new standard will place increasing financial pressure on local fuel providers resulting in massive fines. These fines (labeled as “purchasing credits” within the framework) will trickle down to heating oil customers with rising heating fuel costs statewide. Keep reading this blog post from PayLessForOil.com to learn more about the other hidden costs of the Clean Heat Standard for heating oil customers in MA.

The Hidden Costs of CHS for Heating Fuel Users in Massachusetts

man holding magnifying glass examining documents

Heating oil, propane, natural gas, and electricity providers alike will be obligated by the new CHS policy to comply with the proposed Emissions Reduction Standard and Full Electrification Standard. This means that regardless of your preferred fuel type here in MA, the CHS will end up costing everyone more in annual energy costs. Due to providers being tasked with performing full electric conversions on Massachusetts homes at an increasing rate to avoid penalty fees, this will result in staggering prices for homeowners.

Related Post: What’s Up with the Massachusetts Clean Heat Standard?

The Potential Impact of the CHS Carbon Tax for MA Residents

Even though the proposed CHS does not claim to be a tax outright, the program will function as a carbon tax by increasing the cost of heating energy in the following ways:

  • With the Emissions Reduction Standard and Full Electrification Standard fines, the average PayLessforOil.com customer will see an increase of about $425.50 to heat their home in a single year.
  • By 2030 the price per gallon “tax” on heating oil will be around 75 cents per gallon.
  • Additionally, if the CHS is enacted as stated in the proposed in the draft framework, renewable energy costs, including renewable biodiesel fuel costs, will increase. This would take effect even if companies like PayLessForOil.com were able to mitigate some of the Emissions Reduction Standard fine by incorporating more biodiesel into our home heating oil blends.
  • Residents with electric heat pumps will also see a rise in electricity costs and be subject to the drawbacks of widespread electrification in the state. This may include greater labor costs, shortage of appointment availability, and more frequent power interruptions.
  • Finally, if deciding to convert your home to an electric heat pump, you will face conversion costs upwards of $10,000.

At PayLessForOil.com, we have no intention of firing our loyal heating fuel customers or forcing them to convert to electric heat to comply with CHS. But as local MA heating fuel providers fight to prevent this policy from being enacted, we are calling on heating oil customers across the state to speak out against the Clean Heat Standard.


Related Post: Update on the Massachusetts Clean Heat Standard

ACT NOW to Voice Your Stance Against the MA Clean Heat Standard

As the residents of Massachusetts, YOU have the power to help change this proposed policy. If you have yet to contact your representative, we have an easy-to-use form to do this located on our website. In addition, feel free to contact MassDEP directly to voice your displeasure with the CHS framework. We need the help from as many MA residents as possible to help prevent this new policy from being enacted and costing homeowners more each year to heat their homes.