ENERGY AND CLIMATE
H.289 would turn Vermont's greenhouse gas emissions mandates back into goals. The existing Renewable Energy Standard would be replaced by a Clean Energy Standard (CES), changing the scope of clean energy sources and renewable energy targets. It ensures the Climate Council plays an advisory role, and does not have the authority to implement regulations. The bill mandates annual reporting on energy consumption and clean energy deployment while assessing costs, benefits, and affordability impacts. The bill increases incentives for electric vehicles and energy efficiency by directing funds from carbon credit sales and the energy efficiency charge to transportation electrification and weatherization initiatives.
H.277 increases the tax on heating oil, propane, kerosene and dyed diesel, using the extra money to expand Vermont’s Home Weatherization Assistance Program. The bill also funds workforce recruitment and training, offering salary increases for weatherization staff. The fuel tax doubles from the current $2-cents per gallon to 4-cents in 2026. It would double again to 8-cents per gallon by 2028.
H.62 seeks to repeal the Global Warming Solutions Act and shift Vermont’s legally binding greenhouse gas (GHG) reduction requirements to non-binding goals. The legislation also eliminates the Vermont Climate Council. Existing energy planning policies and frameworks are revised to align with the new goal-oriented approach. The legislation also repels Vermont’s Zero Emission Vehicle (ZEV) mandates. The act would take effect on July 1, 2025.
H.52 proposes changing Vermont's legally binding greenhouse gas (GHG) emission reduction requirements to non-binding goals. The act repeals the provision allowing legal action for non-compliance with reduction requirements and takes effect upon passage.
H.16 seeks to eliminate Vermont's Clean Heat Standard, repealing the Affordable Heat Act and its related regulations. It removes associated tax record disclosure provisions and terminates positions tied to the program within state agencies. The bill would take effect immediately upon passage.
H.125 proposes that the Vermont Department of Public Service, in collaboration with relevant state agencies, publish an annual report detailing the economic impacts of the state's “transition to clean energy.” The report, due by January 15 each year, would cover the number of gas stations, heating fuel sellers, and electric vehicle chargers.
H.159 seeks to repeal the Renewable Energy Standard (RES), eliminating mandates for utilities to procure renewable energy. It removes related requirements for net metering, the Standard Offer Program, baseload renewable power, and energy planning compliance. The bill also ends annual reporting on RES impacts and modifies clean heat credit eligibility. Effective July 1, 2025, this repeal would deregulate renewable energy procurement, potentially reducing incentives for in-state renewable projects and altering Vermont’s climate and energy policies.
S.65 expands the authority of Efficiency Vermont and directs it to prioritize greenhouse gas reduction over traditional cost-effective energy savings. The bill directs substantial funds toward electrification, transportation incentives, and efficiency upgrades. Large energy consumers can self-administer these funds, but strict restrictions prevent investments in fossil fuel-based solutions, regardless of cost-effectiveness.
H.181 seeks to extend the Building Energy Code Working Group and assign the Public Service Department the task of attributing energy savings to compliance while requiring annual greenhouse gas reduction reporting. Vermont faces a significant housing shortage, yet compliance with energy codes remains low, with no state agency designated for enforcement. The bill acknowledges inconsistent code applicability and lack of municipal enforcement authority. It lowers the threshold for mandatory residential contractor registration from $10,000 to $2,000 and increases liability insurance requirements. Additionally, it mandates that revisions to Residential Building Energy Standards align with state policies. With stricter energy codes set for 2030, the bill attempts to address oversight gaps but does not establish a clear enforcement mechanism.
CARS AND TRUCKS
H.285 creates a study committee to explore ways to make motor vehicle inspections more affordable without compromising safety. The committee will examine repair costs, potential cost reductions, financial assistance for low-income residents, and the feasibility of switching to biennial inspections. It will consist of representatives from the Treasurer’s Office, the Department of Motor Vehicles, insurance and automotive associations, and community action agencies. A report with findings and recommendations will be submitted to the legislature by December 30, 2025.
S.75 is an expansive transportation bill focused on vehicle incentives, emissions reduction, and infrastructure changes. It funds programs for electric vehicles (EVs), eBikes, and public transit while imposing new fees, including a retail delivery tax and a feebate system penalizing low-efficiency vehicles. The bill would impose a fee of up to $750 on less fuel-efficient new vehicles while giving rebates to more efficient nones.The bill mandates reduced vehicle miles traveled in project planning, supports right-to-charge laws for EV owners, and expands municipal transportation aid. It also promotes bicycle and pedestrian infrastructure but increases costs for fuel users and vehicle buyers. The bill disproportionately burdens consumers and businesses while prioritizing state-directed environmental policies.
H.161 would force manufacturers to provide independent repair providers and equipment owners with the same parts, tools, and documentation as authorized repair providers, including access to security-related functions. While it claims to promote fairness in equipment repair, this mandate could undermine manufacturers' ability to protect proprietary technology and ensure repairs are conducted safely and correctly. By restricting manufacturers from setting reasonable conditions, such as requiring repair providers to be authorized or registering parts and tools, the bill opens the door to substandard repairs that could compromise safety, reliability, and even emissions compliance. Although it excludes motor vehicles, medical devices, and federally preempted areas, it still imposes unnecessary regulatory burdens on equipment manufacturers while shielding them from liability for negligent repairs—unless the manufacturer supplied faulty parts or tools. Additionally, it hands broad enforcement power to the Attorney General, treating violations as unfair and deceptive trade practices, which could lead to excessive litigation and compliance costs. If enacted, this legislation, set to take effect on January 1, 2026, would create more harm than good by eroding quality control, increasing risks for consumers, and discouraging innovation in the equipment industry.
H.65 seeks to revoke Vermont’s adoption of California's Clean Air Act waiver, which allows states to implement stricter motor vehicle emission standards than federal regulations. This bill would effectively repeal Vermont's electric car and truck mandates. The bill prevents Vermont's Secretary of Natural Resources from adopting California’s motor vehicle emission rules authorized under the Clean Air Act (§7507). Vermont’s existing Low Emission Vehicle (LEV) and Zero Emission Vehicle (ZEV) rules are repealed, aligning state emission regulations with federal standards. The legislation would take effect on July 1, 2025.
S.47 proposes the creation of a study committee to examine the feasibility of allowing consumers in Vermont to cancel or rescind the purchase of a motor vehicle under certain conditions. It establishes a "Motor Vehicle Purchase Cancellation Study Committee" to assess potential amendments to Vermont’s laws regarding vehicle purchase cancellations. The committee will examine whether consumers should have the legal right to return a purchased vehicle after taking possession. The study will also examine whether consumers should have the right to cancel a purchase contract before vehicle delivery. If enacted, this bill could lead to future legislation providing consumers with limited rights to cancel or return vehicle purchases, potentially affecting dealership policies and consumer protection laws in Vermont.
H.48 prohibits the modification of motor vehicles to enhance their ability to emit soot, smoke, or particulates and bans the operation of vehicles with such modifications. It also prohibits intentionally releasing excessive soot or smoke from vehicles. Violators face civil penalties ranging from $500 for a first offense to up to $1,000 for subsequent offenses. Additionally, vehicles violating these provisions may have their registrations suspended or canceled until repairs restore compliance. The law is set to take effect on July 1, 2025.
H.111 proposes waiving motor vehicle registration fees for volunteer firefighters who have written authorization to use their personal vehicles for emergency fire or rescue activities. Currently, vehicles owned by volunteer fire departments or rescue organizations pay a reduced $15 registration fee. This bill extends the benefit by eliminating registration fees entirely for volunteer firefighters’ personal vehicles that are equipped with sirens and red or red-and-white signal lamps, as permitted under Vermont law. The bill aims to support volunteer firefighters by reducing financial burdens associated with their service. The act takes effect on July 1, 2025.
S.66 seeks to limit motor vehicle noise and the use of engine compression brakes, also known as “Jake brakes.” Compression brakes are used on steep descents to prevent failure. This critical safety tool would be limited under the law unless a muffler is installed. This unnecessary cost could reduce the effectiveness of the braking system. The bill includes penalties for violations, with fines increasing for repeated offenses, and mandates that non-compliant vehicles fail state inspections. It also directs the Agency of Transportation to establish a citizen reporting system for subjective noise complaints rather than objective safety concerns, allowing individuals to report potentially non-compliant vehicles to law enforcement for investigation.
S.103, an act relating to updating the Periodic Inspection Manual, was introduced by Senator Douglas and sponsored by 18 other Senators. This bill aims to distinguish between cosmetic flaws and safety hazards (such as rust, corrosion, or torn metal on a motor vehicle body, frame, component, or part that is cosmetic in nature), prevent vehicles from failing inspections due to purely aesthetic issues, and to focus inspection efforts on critical safety components.
More about Vermont's Transportation Budget here.
ECONOMIC DEVELOPMENT/WORKFORCE/ HOUSING
As Vermont lawmakers tackle the state’s housing and infrastructure challenges, several financing tools are under discussion. Click here for details.
Lawmakers in Montpelier have introduced several bills imposing new regulations on businesses.
"Good Cause" Termination—Employers would need to justify terminations after 90 days, undermining Vermont’s at-will employment system. This would increase litigation risks, raise legal costs, and discourage hiring.
Ban on Noncompete Agreements – The bill prohibits noncompete clauses, except in business sales. While it aims to assist workers, it undermines businesses’ capacity to safeguard proprietary knowledge and client relationships. Although nondisclosure agreements remain legal, enforcing trade secrets can be expensive and uncertain.
Right to Sit in the Workplace – A broadly worded provision grants workers the right to sit unless standing is explicitly required. This creates ambiguity regarding enforcement, which could lead to disputes over what constitutes a "suitable seat" or a "reasonable" standing requirement.
32-Hour Workweek – This bill mandates overtime pay for work beyond 32 hours per week, altering employment laws, including sick time accrual and child labor rules. It exempts certain healthcare workers and allows employers to limit sick time accrual accordingly.
Right to Disconnect – Employees gain the right to ignore employer communications outside work hours, except in emergencies. Employers must establish policies ensuring compliance, with repeated violations subject to penalties.
Extreme Temps – This bill claims to protect workers from heat- and cold-related illnesses, injuries, and deaths by mandating that employers develop plans to "evaluate and control" temperature-related hazards.
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H.37 proposes consolidating Vermont’s school districts to align with career and technical education (CTE) service regions. The bill aims to streamline the organization of school districts to better integrate and support CTE programs within the state's educational system
H.34 reorganizes Vermont’s workforce leadership by designating the Commissioner of Labor and the Executive Director of the Office of Workforce Strategy and Development as co-leaders of workforce education, training, and employment activities. The bill emphasizes coordination across agencies, inventorying existing workforce programs, using data to align programs with labor market needs, and ensuring accountability through reporting. It aims to integrate public and private sector efforts, address regional workforce needs, and improve communication among businesses, educators, and the government. The bill mandates a biennial workforce report and takes effect on July 1, 2025.
S.24 proposes amendments to Vermont’s stormwater permitting regulations. The bill extends the compliance deadline for the three-acre impervious surface permit and authorizes municipalities to assess impact fees on users of municipal stormwater systems. It prolongs the 0.22% clean water surcharge on the property transfer tax from 2027 to 2036. Additionally, it establishes the Local Community Implementation Special Fund, providing grants to municipalities for stormwater permitting of residential subdivisions and orphan systems. The bill mandates new rulemaking for stormwater management, including allowing municipal governments to assume full legal responsibility for stormwater systems. A $5 million appropriation from the Clean Water Fund will support local implementation. The bill also amends municipal authority to set stormwater fees based on impervious surface coverage. These changes aim to improve water quality, facilitate compliance with stormwater regulations, and provide financial assistance for municipalities managing stormwater infrastructure. It takes effect on July 1, 2025.
WAYS AND MEANS
H.77 aims to introduce a new marginal income tax bracket in Vermont to generate additional revenue for three key areas: education, transportation, and higher education endowments. Key provisions of the bill include updates to income tax rates and thresholds for all filing categories (e.g., married individuals, heads of households, estates, trusts). Tax brackets are adjusted to include a new highest marginal tax rate of 12.75% for inviduals with incomes above certain thresholds. 2% of taxable income taxed at the highest marginal rate is allocated to the Education Fund for educational initiatives. 1% is directed to the Transportation Fund to support road and bridge maintenance and public transportation. 1% is deposited into the Vermont Higher Education Endowment Trust Fund to support higher education. The legislation is set to take effect retroactively from January 1, 2025, applying to all taxable income earned from this date forward.
S.37 proposes changes to Vermont's unemployment insurance system. The bill aims to exclude wages earned from non-qualifying work when calculating an individual's weekly unemployment benefit amount. Additionally, it seeks to make individuals employed by educational institutions in roles other than instructional, research, or principal administrative capacities eligible for unemployment benefits between academic terms. The legislation also addresses the definition of "partially unemployed" and proposes amendments to existing statutes to align with these changes.
H.24 mandates that retail businesses in Vermont must accept cash payments for goods or services. A violation of this rule would be considered an unfair business practice under state law. The law would take effect on July 1, 2025.
H.119 proposes an expansion and modification of Vermont’s beverage container redemption system. The bill adds cider, hard kombucha, noncarbonated water, and noncarbonated soft drinks to the list of redeemable containers. It also increases the deposit from 5 cents to 10 cents per container, except for liquor bottles over 50ml, which will remain at 15 cents. The bill maintains manufacturer reimbursement for retailers and redemption centers at 3.5 cents per container for commingled brands and 4 cents for non-commingled brands. The expansion aims to enhance recycling participation and reduce environmental waste. The act is set to take effect on January 1, 2026.
S.7 amends Vermont’s automobile insurance laws to enhance protections for policyholders. It prohibits insurers from deducting payments received from an at-fault driver’s liability insurance when calculating the underinsured motorist coverage available to the policyholder. Additionally, it limits insurers' subrogation rights, preventing them from seeking reimbursement for medical costs paid under medical payments coverage. These changes aim to ensure greater financial recovery for insured individuals following motor vehicle accidents. The act applies to automobile insurance policies offered, issued, or renewed on or after January 1, 2026, and takes effect upon passage.
H.233 seeks to enhance the efficiency and fairness of Vermont’s state-funded grant system, particularly for nonprofit organizations. It mandates updates to Administrative Bulletin 5 by July 1, 2025, allowing nonprofits to apply for higher indirect rates. The bill also requires state agencies to execute grant agreements and process payments within 30 days, with public reporting of delays. Additionally, it establishes a working group to assess and improve grant administration, focusing on funding levels, delayed reimbursements, and the feasibility of upfront funding. The group will submit a final report by September 1, 2026, before dissolving on December 31, 2026. By streamlining processes, increasing transparency, and ensuring nonprofits receive timely payments, H.233 aims to reduce financial strain on organizations that rely on state grants while fostering a more effective grant management system.
H.306 proposes to prohibit deed restrictions or covenants on property zoned for commercial or industrial uses if the restriction or covenant prohibits or has the effect of prohibiting use of the property for commercial or industrial purposes.
H.308 would exempt the sale of all building materials and supplies from sales and use tax. The exemption sunsets after three years and reverts back to a limited exemption for manufacturing facilities.
BROADBAND AND TELECOM
H.121, the Affordable Broadband Service Act, requires Vermont ISPs to offer low-income households affordable broadband by October 1, 2025. The bill mandates a Basic Plan (25 Mbps for $15/month) and an Enhanced Plan (200 Mbps for $20/month), including taxes and fees. Eligible households include those in federal Lifeline programs or Vermont’s Home Heating Fuel Assistance Program. The Public Utility Commission will oversee compliance, allowing annual price adjustments (capped at 2%), waivers for speed requirements, and exemptions for small ISPs (under 20,000 customers) facing financial hardship. ISPs must report subscriber data, advertising efforts, and pricing annually to the Department of Public Service, which will review standards every five years. Non-compliance is an unfair and deceptive act, with fines up to $1,000 per violation. ISPs must actively promote these plans. The bill takes effect immediately upon passage.
H.11 aims to promote fair broadband and VoIP services in Vermont by preventing deceptive practices and encouraging competition. It includes provisions such as ensuring net neutrality, prohibiting unfair fees, and requiring transparency from providers. The bill also mandates consumer complaint tracking, market monitoring by the Attorney General, and protection against service disconnections during emergencies. Additionally, it establishes a program to monitor the safety and reliability of VoIP services, including backup power requirements and consumer education.
H.208 introduces strict data collection limits, advertising restrictions, an authorized agent provision, and a private right of action (PRA), creating challenges for Vermont businesses and consumers. The bill’s data minimization requirement restricts businesses from collecting consumer data unless “strictly necessary,” potentially reducing personalized services, increasing compliance costs, and limiting economic opportunities. Vermont businesses may face competitive disadvantages compared to neighboring states with more flexible privacy laws. The advertising restrictions limit targeted digital marketing, raising costs for local businesses while reducing their ability to reach consumers effectively. Small businesses may struggle with compliance, and ad-supported local content could suffer revenue losses. H.208’s authorized agent provisions risk identity fraud due to unclear authentication requirements, leaving businesses vulnerable to fraudulent data requests. The PRA may further burden businesses with increased litigation risks, potentially leading to higher consumer prices, reduced services, and an increase in frivolous lawsuits. The rigid framework could unintentionally hinder Vermont’s digital economy, raise costs for small businesses, and limit consumer benefits without clear improvements in privacy protections compared to existing regulations in other New England states.