MONTPELIER, Vt. (AP) — A bill that would set Vermont on a path to a “clean heat standard” was approved by the Vermont Senate on Friday.

The proposal aims to regulate businesses that import fossil fuel heat. It would require the Public Utility Commission to create a marketplace where businesses that import fossil fuels for heat would have to buy or create “clean heat credits” based on how much their products emit.

Businesses would be able to create credits by taking steps to lower emissions from buildings, including switching to high-efficiency wood heat or hot water, installing cold-climate heat pumps and weatherizing homes. Companies could also earn credits by supplying green hydrogen, renewable natural gas and biofuels.

Businesses that import fossil fuel heat would be required to create or purchase a certain number of clean heat credits every year.

Some climate advocates have criticized the policy for including biofuels and renewable natural gas in the credit system, according to Vermont Public Radio.

The House passed a similar measure earlier in the session.

Both chambers must now agree on a single piece of legislation to ship to Republican Gov. Phil Scott for his signature.

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