1 | 1 | | BILL AS INTRODUCED H.181 |
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2 | 2 | | 2025 Page 1 of 9 |
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4 | 4 | | |
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5 | 5 | | VT LEG #380156 v.2 |
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6 | 6 | | H.181 1 |
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7 | 7 | | Introduced by Representatives Campbell of St. Johnsbury, Austin of 2 |
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8 | 8 | | Colchester, Bluemle of Burlington, Burke of Brattleboro, 3 |
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9 | 9 | | Dodge of Essex, Goldman of Rockingham, Headrick of 4 |
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10 | 10 | | Burlington, Kleppner of Burlington, Krasnow of South 5 |
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11 | 11 | | Burlington, Lalley of Shelburne, Logan of Burlington, Masland 6 |
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12 | 12 | | of Thetford, Ode of Burlington, Pouech of Hinesburg, and 7 |
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13 | 13 | | Rachelson of Burlington 8 |
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14 | 14 | | Referred to Committee on 9 |
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15 | 15 | | Date: 10 |
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16 | 16 | | Subject: Public service; building energy; building energy codes; residential 11 |
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17 | 17 | | building energy standards; commercial building energy standards; 12 |
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18 | 18 | | climate change; residential builder registry 13 |
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19 | 19 | | Statement of purpose of bill as introduced: This bill proposes to extend the 14 |
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20 | 20 | | term of the Building Energy Code Working Group, to direct the Public Service 15 |
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21 | 21 | | Department to establish a framework to attribute savings to building energy 16 |
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22 | 22 | | code compliance, to require the Department Public Service to develop 17 |
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23 | 23 | | methodology for calculating and reporting greenhouse gas savings annually, 18 |
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24 | 24 | | and to make changes to the Residential Builder Registry. 19 |
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25 | 25 | | An act relating to Residential and Commercial Building Energy Standards 20 BILL AS INTRODUCED H.181 |
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26 | 26 | | 2025 Page 2 of 9 |
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28 | 28 | | |
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29 | 29 | | VT LEG #380156 v.2 |
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30 | 30 | | It is hereby enacted by the General Assembly of the State of Vermont: 1 |
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31 | 31 | | Sec. 1. FINDINGS AND INTENT 2 |
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32 | 32 | | The General Assembly finds: 3 |
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33 | 33 | | (1) It is in the public interest to foster standards for buildings fit for 4 |
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34 | 34 | | occupancy that are safe, healthful, comfortable, durable, energy efficient, 5 |
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35 | 35 | | sustainable, resilient, and practicable. 6 |
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36 | 36 | | (2) The five-year Housing Needs Assessment, released by Agency of 7 |
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37 | 37 | | Commerce and Community Development in June 2024, found that at least 8 |
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38 | 38 | | 24,000 and as many as 36,000 housing units must be brought online by 2029. 9 |
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39 | 39 | | In addition, the Assessment says about 20,000 existing homes have indications 10 |
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40 | 40 | | of housing quality concerns according to 2022 census data. 11 |
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41 | 41 | | (3) The Housing Needs Assessment also found that 32 percent of renters 12 |
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42 | 42 | | had the income needed to buy a median priced home in 2021; two years later, 13 |
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43 | 43 | | in 2023, house prices had risen to the extent that only six percent of renters 14 |
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44 | 44 | | could likewise afford to buy a home. 15 |
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45 | 45 | | (4) Buildings, whether single family owner-occupied, apartment houses, 16 |
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46 | 46 | | or commercial occupancies, typically remain in service for many decades 17 |
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47 | 47 | | without major renovation. 18 |
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48 | 48 | | (5) As the costs of building increase, the costs of remediating poor or 19 |
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49 | 49 | | energy inefficient construction exceed the capability or inclination of many 20 |
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50 | 50 | | owners to undertake. 21 BILL AS INTRODUCED H.181 |
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51 | 51 | | 2025 Page 3 of 9 |
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52 | 52 | | |
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53 | 53 | | |
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54 | 54 | | VT LEG #380156 v.2 |
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55 | 55 | | (6) Recent floods have further exacerbated Vermont’s housing crisis and 1 |
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56 | 56 | | demand for construction workers, and likely brought less experienced builders 2 |
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57 | 57 | | into the construction market. 3 |
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58 | 58 | | (7) Vermont established the Residential Building Energy Standards 4 |
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59 | 59 | | (RBES) in 1997 and the Commercial Building Energy Standards (CBES) in 5 |
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60 | 60 | | 2007, collectively referred to as “energy codes.” Both energy codes are 6 |
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61 | 61 | | mandatory, but studies in recent years show compliance with the RBES at 7 |
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62 | 62 | | about 54 percent and CBES at about 87 percent, with both rates declining. 8 |
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63 | 63 | | Both codes are scheduled to become more stringent with the goal of “net zero 9 |
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64 | 64 | | ready” by 2030. 10 |
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65 | 65 | | (8) There is no State agency or office designated to interpret, administer, 11 |
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66 | 66 | | and enforce energy codes. The Division of Fire Safety in the Department of 12 |
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67 | 67 | | Public Safety is responsible for fire and building safety code in “public 13 |
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68 | 68 | | buildings.” The Department of Public Service is responsible for promulgating 14 |
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69 | 69 | | and updating RBES and CBES. Neither office has the capacity to administer 15 |
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70 | 70 | | or enforce energy codes. 16 |
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71 | 71 | | (9) Applicability of energy codes and building codes in Vermont is 17 |
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72 | 72 | | inconsistent. The RBES apply to residential buildings up to three stories; the 18 |
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73 | 73 | | CBES apply to all other building types. The Division of Fire Safety 19 |
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74 | 74 | | jurisdiction encompasses all public buildings, including rented residential 20 |
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75 | 75 | | buildings covered by the RBES. However, its fire and building safety code is 21 BILL AS INTRODUCED H.181 |
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76 | 76 | | 2025 Page 4 of 9 |
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77 | 77 | | |
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78 | 78 | | |
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79 | 79 | | VT LEG #380156 v.2 |
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80 | 80 | | based on commercial codes; in residential buildings, it applies only to 1 |
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81 | 81 | | apartment buildings four stories and above. While as of late 2024 the Division 2 |
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82 | 82 | | of Fire Safety is in the process of considering adopting a residential building 3 |
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83 | 83 | | code, currently Vermont has no building code covering residential construction 4 |
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84 | 84 | | up to three stories in height. Further, the Department of Public Service has 5 |
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85 | 85 | | advised the General Assembly that RBES-enabling legislation does not provide 6 |
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86 | 86 | | clear authority for municipalities to administer and enforce the RBES at the 7 |
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87 | 87 | | local level. 8 |
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88 | 88 | | Sec. 2. 2024 Acts and Resolves No. 151, Sec. 2 is amended to read: 9 |
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89 | 89 | | Sec. 2. ENERGY CODE COMPLIANCE; WORKING GROUP 10 |
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90 | 90 | | * * * 11 |
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91 | 91 | | (f) Meetings. 12 |
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92 | 92 | | * * * 13 |
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93 | 93 | | (4) The Working Group shall cease to exist on July 1, 2026 30 days after 14 |
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94 | 94 | | the General Assembly enacts legislation giving authority to a State entity to 15 |
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95 | 95 | | enforce the building energy codes. 16 |
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96 | 96 | | * * * 17 |
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97 | 97 | | Sec. 3. 30 V.S.A. § 209(d) is amended to read: 18 |
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98 | 98 | | (d) Energy efficiency. 19 |
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99 | 99 | | * * * 20 |
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100 | 100 | | (2) Appointment of independent efficiency entities. 21 BILL AS INTRODUCED H.181 |
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101 | 101 | | 2025 Page 5 of 9 |
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102 | 102 | | |
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103 | 103 | | |
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104 | 104 | | VT LEG #380156 v.2 |
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105 | 105 | | (A) Electricity and natural gas. In place of utility-specific programs 1 |
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106 | 106 | | developed pursuant to this section and section 218c of this title, the 2 |
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107 | 107 | | Commission shall, after notice and opportunity for hearing, provide for the 3 |
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108 | 108 | | development, implementation, and monitoring of gas and electric energy 4 |
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109 | 109 | | efficiency and conservation programs and measures, including programs and 5 |
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110 | 110 | | measures delivered in multiple service territories, by one or more entities 6 |
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111 | 111 | | appointed by the Commission for these purposes. The Commission may 7 |
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112 | 112 | | include appropriate combined heat and power systems that result in the 8 |
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113 | 113 | | conservation and efficient use of energy and meet the applicable air quality 9 |
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114 | 114 | | standards of the Agency of Natural Resources. Except with regard to a 10 |
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115 | 115 | | transmission company, the Commission may specify that the appointment of 11 |
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116 | 116 | | an energy efficiency utility to deliver services within an electric utility’s 12 |
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117 | 117 | | service territory satisfies that electric utility’s corresponding obligations, in 13 |
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118 | 118 | | whole or in part, under section 218c of this title and under any prior orders of 14 |
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119 | 119 | | the Commission. The entities appointed under this subdivision (2) shall 15 |
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120 | 120 | | attribute energy savings to building energy code compliance. The Department 16 |
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121 | 121 | | of Public Service shall establish a procedure for calculating those building 17 |
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122 | 122 | | energy savings. 18 |
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123 | 123 | | * * * 19 BILL AS INTRODUCED H.181 |
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124 | 124 | | 2025 Page 6 of 9 |
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126 | 126 | | |
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127 | 127 | | VT LEG #380156 v.2 |
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128 | 128 | | Sec. 4. 30 V.S.A. § 51 is amended to read: 1 |
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129 | 129 | | § 51. RESIDENTIAL BUILDING ENERGY STANDARDS; STRETCH 2 |
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130 | 130 | | CODE 3 |
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131 | 131 | | * * * 4 |
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132 | 132 | | (c) Revision and interpretation of energy standards. The Commissioner of 5 |
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133 | 133 | | Public Service shall amend and update the RBES by means of administrative 6 |
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134 | 134 | | rules adopted in accordance with 3 V.S.A. chapter 25. On or before January 1, 7 |
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135 | 135 | | 2011, the Commissioner shall complete rulemaking to amend the energy 8 |
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136 | 136 | | standards to ensure that, to comply with the standards, residential construction 9 |
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137 | 137 | | must be designed and constructed in a manner that complies with the 2009 10 |
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138 | 138 | | edition of the IECC. After January 1, 2011, the Commissioner may direct the 11 |
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139 | 139 | | timely and appropriate revision of the RBES after the issuance of updated 12 |
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140 | 140 | | standards for residential construction under the IECC. The Department of 13 |
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141 | 141 | | Public Service shall provide technical assistance and expert advice to the 14 |
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142 | 142 | | Commissioner in the interpretation of the RBES and in the formulation of 15 |
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143 | 143 | | specific proposals for amending the RBES. Prior to final adoption of each 16 |
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144 | 144 | | required revision of the RBES, the Department of Public Service shall convene 17 |
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145 | 145 | | an Advisory Committee to include one or more mortgage lenders, builders, 18 |
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146 | 146 | | building designers, utility representatives, and other persons with experience 19 |
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147 | 147 | | and expertise, such as consumer advocates and energy conservation experts. 20 |
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148 | 148 | | The Advisory Committee may provide the Commissioner with additional 21 BILL AS INTRODUCED H.181 |
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149 | 149 | | 2025 Page 7 of 9 |
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150 | 150 | | |
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151 | 151 | | |
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152 | 152 | | VT LEG #380156 v.2 |
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153 | 153 | | recommendations for revision of the RBES after they review the associated 1 |
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154 | 154 | | software and handbook guidance for the update. 2 |
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155 | 155 | | (1) Any amendments to the RBES shall be: 3 |
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156 | 156 | | (A) consistent with duly adopted State energy policy, as specified in 4 |
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157 | 157 | | section 202a of this title, and consistent with duly adopted State housing 5 |
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158 | 158 | | policy; 6 |
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159 | 159 | | (B) evaluated relative to their technical applicability and reliability; 7 |
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160 | 160 | | and 8 |
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161 | 161 | | (C) cost-effective and affordable from the consumer’s perspective. 9 |
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162 | 162 | | (2) Each time the RBES are amended by the Commissioner, the 10 |
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163 | 163 | | amended RBES shall become effective upon a date specified in the adopted 11 |
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164 | 164 | | rule, a date that shall not be less than three six months after the date of 12 |
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165 | 165 | | adoption. Persons commencing residential construction before the effective 13 |
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166 | 166 | | date of the amended RBES shall have the option of complying with the 14 |
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167 | 167 | | applicable provisions of the earlier or the amended RBES. After the effective 15 |
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168 | 168 | | date of the original or the amended RBES, any person commencing residential 16 |
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169 | 169 | | construction shall comply with the most recent version of the RBES. 17 |
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170 | 170 | | * * * 18 |
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171 | 171 | | Sec. 5. 10 V.S.A. § 582 is amended to read: 19 |
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172 | 172 | | § 582. GREENHOUSE GAS INVENTORIES; REGISTRY 20 |
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173 | 173 | | * * * 21 BILL AS INTRODUCED H.181 |
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174 | 174 | | 2025 Page 8 of 9 |
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175 | 175 | | |
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176 | 176 | | |
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177 | 177 | | VT LEG #380156 v.2 |
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178 | 178 | | (g) Greenhouse gas accounting. 1 |
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179 | 179 | | (1) In consultation with the Department of Public Service created under 2 |
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180 | 180 | | 30 V.S.A. § 1, the Secretary shall research and adopt by rule greenhouse gas 3 |
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181 | 181 | | accounting protocols that achieve transparent and accurate life cycle 4 |
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182 | 182 | | accounting of greenhouse gas emissions, including emissions of such gases 5 |
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183 | 183 | | from the use of fossil fuels and from renewable fuels such as biomass. On 6 |
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184 | 184 | | adoption, such protocols shall be the official protocols to be used by any 7 |
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185 | 185 | | agency or political subdivision of the State in accounting for greenhouse gas 8 |
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186 | 186 | | emissions. 9 |
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187 | 187 | | (2) The Department of Public Service, in consultation with the energy 10 |
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188 | 188 | | efficiency utilities, the Office of Economic Opportunity’s Home 11 |
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189 | 189 | | Weatherization Assistance Program, and any other entities claiming energy or 12 |
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190 | 190 | | emissions savings, shall develop a methodology for calculating and reporting 13 |
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191 | 191 | | greenhouse gas reductions annually. 14 |
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192 | 192 | | Sec. 6. 26 V.S.A. § 5501 is amended to read: 15 |
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193 | 193 | | § 5501. REGISTRATION REQUIRED 16 |
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194 | 194 | | (a) A person shall register with the Office of Professional Regulation prior 17 |
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195 | 195 | | to contracting with a homeowner to perform residential construction in 18 |
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196 | 196 | | exchange for consideration of more than $10,000.00 $2,000.00, including labor 19 |
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197 | 197 | | and materials. 20 |
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198 | 198 | | * * * 21 BILL AS INTRODUCED H.181 |
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199 | 199 | | 2025 Page 9 of 9 |
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200 | 200 | | |
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201 | 201 | | |
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202 | 202 | | VT LEG #380156 v.2 |
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203 | 203 | | Sec. 7. 26 V.S.A. § 5509 is amended to read: 1 |
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204 | 204 | | § 5509. REQUIREMENTS OF REGISTRANTS 2 |
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205 | 205 | | (a) Insurance. A person registered under this chapter shall maintain 3 |
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206 | 206 | | minimum liability insurance coverage in the amount of $1,000,000.00 per 4 |
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207 | 207 | | occurrence and $2,000,000.00 aggregate, evidence of which may be required 5 |
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208 | 208 | | as a precondition to issuance or renewal of a registration if the estimated value 6 |
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209 | 209 | | of the labor and materials exceeds $10,000.00. 7 |
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210 | 210 | | * * * 8 |
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211 | 211 | | Sec. 8. EFFECTIVE DATE 9 |
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212 | 212 | | This act shall take effect on July 1, 2025. 10 |
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