BILLASPASSEDBYTHEHOUSE H.481
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H.481
IntroducedbyCommitteeonEnvironment
Date:
Subject:Conservationanddevelopment;waterquality;stormwater;three-acre
permit
Statementofpurposeofbillasintroduced:Thisbillproposestoamend
requirementsrelatedtothepermittingofstormwatersystemsintheState.The
billwouldextendthedeadlinebywhichownersofimpervioussurfacesubject
tothethree-acreimpervioussurfacepermitmustcompletepermitting.Thebill
alsowouldallowmunicipalitiesthatassumefulllegalresponsibilityfora
stormwatersystemtoassessmunicipalimpactfeesonusersofthestormwater
system.Inaddition,thebillrepealsthesunsetofthecleanwatersurchargeon
thepropertytransfertax.ThebillalsowouldcreatetheStudyCommitteeon
theCreationofRegionalStormwaterUtilityDistrictstoreviewthefeasibility
andbenefitofcreatingregionalstormwaterutilitydistrictstofacilitate
implementationandcompliancewiththewaterqualitylawsoftheState.
Anactrelatingtostormwatermanagement
ItisherebyenactedbytheGeneralAssemblyoftheStateofVermont:
Sec.1.10V.S.A.§ 1264isamendedtoread:
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§1264.STORMWATER MANAGEMENT
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(d)Exemptions.
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(2)Nopermitisrequiredundersubdivision(c)(1),(5),or(7)ofthis
sectionandforwhichamunicipalityhasassumedfulllegalresponsibilityas
partofapermitissuedtothemunicipalitybytheSecretary.Asusedinthis
subdivision,“fulllegalresponsibility”meanslegalcontrolofthestormwater
system,includingalegalrighttoaccessthestormwatersystem,alegaldutyto
properlymaintainthestormwatersystem,andalegaldutytorepairandreplace
thestormwatersystemwhenitnolongeradequatelyprotectswatersofthe
State.Notwithstandingtheprovisionsof24V.S.A.§ 3254tothecontrary,
whenamunicipalityassumesfulllegalresponsibilityforastormwatersystem,
themunicipalitymayassessmunicipalimpactfeesonusersofthestormwater
systemprovidedthatamajorityofthepropertyownerssubjecttotheimpact
feeconsentedandtheimpactfeeassessedisafairapportionmenttotheuserof
thecostoftheimprovementinaccordancewiththebenefitstheuserreceived.
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(g)Generalpermits.
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(3)Within120daysaftertheadoptionbytheSecretaryoftherules
requiredundersubsection(f)ofthissection,theSecretaryshallissueageneral
permitunderthissectionfordischargesofstormwaterfromimpervioussurface
ofthreeormoreacresinsize,whenthestormwaterdischargepreviouslywas
notpermittedorwaspermittedunderanindividualpermitorgeneralpermit
thatdidnotincorporatetherequirementsofthe2002StormwaterManagement
ManualoranysubsequentlyadoptedStormwaterManagementManual.Under
thegeneralpermit,theSecretaryshall:
(A)Establishascheduleforimplementationofthegeneralpermitby
geographicareaoftheState.Thescheduleshallestablishthedatebywhichan
ownerofimpervioussurfaceshallapplyforcoverageunderthissubdivision
(3).ThescheduleestablishedbytheSecretaryshallrequireanownerof
impervioussurfacesubjecttopermittingunderthissubdivisiontoobtain
coveragebythefollowingdates:
(i)forimpervioussurfacelocatedwithintheLakeChamplain
watershed,theLakeMemphremagogwatershed,orthewatershedofa
stormwater-impairedwateronorbeforeOctober1,20232028;and
(ii)forimpervioussurfacelocatedwithinallotherwatershedsof
theState,nonotlaterthanOctober1,20332038ornotlaterthanfiveyears
afterabindingstormwater-specificwaste-loadallocationhasbeenestablished
forthatwatershed,whicheveroccursfirst.
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(B)Establishcriteriaandtechnicalstandards,suchasbest
managementpractices,forimplementationofstormwaterimprovementsfor
theretrofittingofimpervioussurfacesubjecttopermittingunderthis
subdivision(3).
(C)Requirethatadischargeofstormwaterfromimpervioussurface
subjecttotherequirementsofthissectioncomplywiththestandardsof
subsection(h)ofthissectionforredevelopmentoforrenewalofapermitfor
existingimpervioussurface.
(D)Allowtheuseofstormwaterimpactfees,offsets,andphosphorus
credittradingwithinthewatershedofthewatertowhichthestormwater
dischargesorrunsoff.
***
Sec.2.REPEALS;SUNSETOFPROPERTYTRANSFERTAXCLEAN
WATERSURCHARGE
(a)2017ActsandResolvesNo.85,Sec.I.10(sunsetofcleanwater
surcharge),asamendedby2024ActsandResolvesNo.181,isrepealed.
(b)2017ActsandResolvesNo.85,Sec.I.11(a)(5)(effectivedateofsunset
ofcleanwatersurcharge)isrepealed.
Sec.3.2017ActsandResolvesNo.85,Sec.I.1(b)isamendedtoread:
(b)Purposeandintent.
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(1)ThepurposeofSecs.I.1–I.12ofthisactistopromotethe
developmentandimprovementofhousingforVermonters.
(2)ItistheintentoftheGeneralAssembly:
(A)toextendthecleanwatersurchargetoprovideaninterima
sourceofrevenueforaddressingwaterqualityissuesthroughouttheState;and
(B)tocontinueitsworkonidentifyingalong-termfundingsourceor
sourcesthataresufficientinscopeandtargetedindesigntoaddressthese
waterqualityissues;and
(C)onceoneormorelong-termfundingsourcesareidentifiedand
enacted,butnotlaterthanJuly1,2027,toreducetheamountoftheclean
watersurchargeto0.04percent.
Sec.4.2017ActsandResolvesNo.85,Sec.I.12isamendedtoread:
Sec.I.12.EFFECTIVEDATES
(a)Secs.I.1–I.12shalltakeeffectonJuly1,2017,exceptthatSec.I.10
(allocatingcleanwatersurchargerevenuetoVermontHousingand
ConservationTrustFund)shalltakeeffectonJuly1,2027.
Sec.5.2017ActsandResolvesNo.85,Sec.I.7(d)isamendedtoread:
(d)Tocompensateforthisreductionofavailablepropertytransfertax
revenue,itistheintentoftheGeneralAssemblythroughthisacttoprovidefor
thetransferof$2,500,000.00totheVermontHousingandConservationTrust
Fund,asfollows:
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(1)Sec.D.100ofthisactappropriates$11,304,840.00infiscalyear
2018fromtheVermontHousingandConservationTrustFundtotheVermont
HousingandConservationBoard.Upontheeffectivedateofthisact,
$1,500,000.00shallreverttotheFund,resultinginafiscalyear2018total
appropriationtotheBoardof $9,804,840.00.Infiscalyear2018only,the
amountof$1,500,000.00fromtheVermontHousingandConservationTrust
FundshallbetransferredtotheGeneralFund.
(2)AsprovidedinSec.I.9ofthisact,fromJuly1,2017until
July 1, 2027,pursuantto32V.S.A.§9602a,thefirst$1,000,000.00inrevenue
generatedbythecleanwatersurchargeof0.20.22percentshallbetransferred
totheVermontHousingandConservationTrustFund.Infiscalyear2018
only,theCommissionershalltransfertheamountof$1,000,000.00fromthe
VermontHousingandConservationTrustFundtotheGeneralFund.
(3)AfterJuly1,2027,pursuantto32 V.S.A.§9602aasamendedin
Sec.I.10ofthisact,$1,000,000.00intotalrevenuegeneratedbytheclean
watersurchargeof0.04percentshallbetransferredtotheVermontHousing
andConservationTrustFund.[Repealed.]
(4)AsprovidedinSec.I.11ofthisact,thecleanwatersurchargewillbe
repealedinitsentiretyonJuly1,2039.[Repealed.]
Sec.6.10V.S.A.§§ 927and928areamendedtoread:
§927.DEVELOPEDLANDSIMPLEMENTATION GRANTPROGRAM
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TheSecretaryshalladministeraDevelopedLandsImplementationGrant
Programtoprovidegrantsorfinancingfinancialassistancetopersonswhoare
requiredtoobtainapermittoimplementregulatoryrequirementsthatare
necessarytoachievewaterqualitystandards.Thegrantorfinancingprogram
shallonlybeavailableinbasinswhereacleanwaterserviceproviderhasmet
itsannualgoalsorismakingsufficientprogress,asdeterminedbythe
Secretary,towardsthosegoals.Thisgrantprogramshallfundorprovide
financingforprojectsrelatedtothepermittingofimpervioussurfaceofthree
acresormoreundersubdivision1264(g)(3)ofthistitleandforapermit
renewalundersubdivision1264(h)(2)ofthistitleforadischargetoa
stormwater-impairedwaterthatwaspermittedunderanindividualpermitora
generalpermitthatdidnotincorporatetherequirementsofthe2002
StormwaterManagementManualoranysubsequentlyadoptedStormwater
ManagementManual.Notmorethan15percentofthetotalgrantamount
awardedshallbeusedforadministrativecosts.
§928.MUNICIPALSTORMWATERIMPLEMENTATION GRANT
PROGRAM
TheSecretaryshalladministeraMunicipalStormwaterImplementation
GrantProgramtoprovidegrantsfinancialassistancetoanymunicipality
requiredundersection1264ofthistitletoobtainorseekcoverageunderthe
municipalroadsgeneralpermit,themunicipalseparatestormsewersystems
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permit,apermitforimpervioussurfaceofthreeacresormore,orapermit
requiredbytheSecretarytoreducetheadverseimpactstowaterqualityofa
dischargeorstormwaterrunoff.Thegrantprogramshallonlybeavailablein
basinswhereacleanwaterserviceproviderhasmetitsannualgoalsoris
makingsufficientprogress,asdeterminedbytheSecretary,towardsthose
goals.Notmorethan15percentofthetotalgrantamountawardedshallbe
usedforadministrativecosts.Thisprogramshallbeavailabletoa
municipalitytocomplywithapermitforimpervioussurfaceofthreeacresor
moreforaresidentialsubdivisionwhenthemunicipalityassumesfulllegal
responsibilityforthestormwatersystemoftheresidentialsubdivisionunder
subsection1264(c)(7)ofthistitle.
Sec.7.10V.S.A.§ 1389(e)isamendedtoread:
(e)Priorities.Inmakingrecommendationsundersubsection(d)ofthis
sectionregardingtheappropriateallocationoffundsfromtheCleanWater
Fund,theBoardshallprioritizeasfollows:
(1)Asafirstpriority,makerecommendationsregardingfundingforthe
followinggrantsandprograms,whichshalleachbegivenequalpriority:
(A)grantstocleanwaterserviceproviderstofundthereasonable
costsassociatedwiththeinspection,verification,operation,andmaintenance
ofcleanwaterprojectsinabasin;
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(B)theWaterQualityRestorationFormulaGrantundersection925
ofthistitle;
(C)theAgencyofAgriculture,FoodandMarkets’agriculturalwater
qualityprograms;and
(D)theWaterQualityEnhancementGrantsundersection926ofthis
titleatafundinglevelofatleast20percentoftheannualbalanceoftheClean
WaterFund,providedthatthemaximumamountrecommendedunderthis
subdivision(D)inanyyearshallnotexceed$5,000,000.00;and
(E)fundingtopartnersforbasinplanning,basinwaterquality
councilparticipation,education,andoutreachasprovidedinsubdivision
1253(d)(3)ofthistitle,providedfundingshallbeatleast$500,000.00.
(2)Asthenextpriorityafterreviewingfundingrequestsforprograms
identifiedundersubdivision(1)ofthissubsection:
(A)fundingtoprogramsorprojectsthataddressorrepairriparian
conditionsthatincreasetheriskoffloodingorposeathreattolifeorproperty;
(B)fundingforeducationandoutreachregardingtheimplementation
ofwaterqualityrequirements,includingfundingforeducation,outreach,
demonstration,andaccesstotoolsfortheimplementationoftheAcceptable
ManagementPracticesforMaintainingWaterQualityonLoggingJobsin
Vermont,asadoptedbytheCommissionerofForests,ParksandRecreation;
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(C)fundingfortheMunicipalStormwaterImplementationGrant
Programasprovidedinsection928ofthistitle,includingatleast
$1,000,000.00annuallyforcostsofcomplyingwithpermittingrequirements
undersubdivision1264(c)(7)ofthistitle;
(D)fundingforinnovativeoralternativetechnologiesorpractices
designedtoimprovewaterqualityorreducesourcesofpollutiontosurface
waters,includingfundingforinnovativenutrientremovaltechnologiesand
community-basedmethanedigestersthatutilizemanure,wastewater,andfood
residualstoproduceenergy;and
(E)fundingtopurchaseagriculturallandinordertotakethatland
outofpracticewhentheStatewaterqualityrequirementscannotberemediated
throughagriculturalBestManagementPractices.
(3)Asthenextpriorityafterreviewingfundingrequestsunder
subdivisions(1)and(2)ofthissubsection,fundingfortheDevelopedLands
ImplementationGrantProgramasprovidedinsection927ofthistitle.
Sec.8.APPROPRIATION
Notwithstandinganyotherprovisionoflaw,theCleanWaterBoardshall
direct$5,000,000.00fromtheCleanWaterFundinfiscalyear2027tothe
MunicipalStormwaterImplementationProgramSection928ofthistitlefor
costsofcomplyingwithpermittingrequirementsundersubdivision1264(c)(7)
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ofthistitle,includingforresidentialsubdivisionswhenthemunicipality
assumesfulllegalresponsibilityforthestormwatersystem.
Sec.8.RECOMMENDED APPROPRIATION
Notwithstandinganyotherprovisionoflaw,theCleanWaterBoardshall
recommend$5,000,000.00fromtheCleanWaterFundinfiscalyear2027to
theMunicipalStormwaterImplementationProgramin10V.S.A.§ 928for
costsofcomplyingwithpermittingrequirementsunder10V.S.A.§ 1264(c)(7),
includingforresidentialsubdivisionswhenthemunicipalityassumesfulllegal
responsibilityforthestormwatersystem.
Sec.9.24V.S.A.§ 3616isamendedtoread:
§3616.RENTS;RATES
(a)Amunicipalcorporation,throughitsboardmayestablishrates,rents,or
chargestobepaidastheboardmayprescribe.Theboardmayestablishannual
chargesseparatelyforbondrepayment,fixedoperationsandmaintenancecosts
andvariableoperationsandmaintenancecostsdependentonflow.
(b)Therates,rents,orchargesmaybebasedupon:
(1)themeteredconsumptionofwateronpremisesconnectedwiththe
sewersystem,however,theboardmaydeterminenouserwillbebilledfor
fixedoperationsandmaintenancecostsandbondpaymentlessthanthe
averagesingle-familycharge;
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(2)thenumberofequivalentunitsconnectedwithorservedbythe
sewagesystembasedupontheirestimatedflowscomparedtotheestimated
flowsfromasingle-familydwelling,however,theboardmaydetermineno
userwillbebilledlessthantheminimumchargedeterminedforthesingle-
familydwellingchargeforfixedoperationsandmaintenancecostsandbond
payment;
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(6)forgroundwater,surface,orstormwateranequivalentresidential
unitbasedonanaverageormedianoftheareaofimpervioussurfaceon
residentialpropertywithinthemunicipality;or
(7)anycombinationofthesebases,providedthecombinationis
equitable.
***
Sec.10.STUDYCOMMITTEEONCREATIONOFREGIONAL
STORMWATER UTILITYDISTRICTS
(a)Creation.ThereiscreatedtheStudyCommitteeontheCreationof
RegionalStormwaterUtilityDistrictstoreviewthefeasibilityandbenefitof
creatingregionalstormwaterutilitydistrictstofacilitateimplementationand
compliancewiththewaterqualitylawsoftheState.
(b)Membership.TheStudyCommitteeshallbecomposedofthe
followingmembers:
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(1)theCommissionerofEnvironmentalConservationordesignee;
(2)arepresentativeoftheVermontLeagueofCitiesandTowns,
appointedbytheSpeakeroftheHouse;
(3)arepresentativeofamunicipalitysubjecttothemunicipalseparate
stormsewersystem(MS4)permit,appointedbytheCommitteeon
Committees;
(4)arepresentativeofamunicipalitywithapopulationunder2,500
persons,appointedbytheSpeakeroftheHouse;
(5)arepresentativeoftheGreenMountainWaterEnvironment
Association,appointedbytheSpeakeroftheHouse;
(6)acommercialorindustrialbusinessownersubjecttothethree-acre
stormwaterpermitorotherstormwaterrequirements,appointedbythe
CommitteeonCommittees;and
(7)arepresentativeofanenvironmentaladvocacyorganization,
appointedbytheSpeakeroftheHouse.
(c)Powersandduties.TheStudyCommitteeshallreviewthefeasibilityof
establishingregionalstormwaterutilitydistrictsintheState.TheStudy
Committeeshall:
(1)reviewcurrentstatutoryauthorityforthedevelopmentofregional
stormwaterutilitydistrictscomprisedofmultiplemunicipalities,including
identifyinganypotentialdisincentivesorobstaclestoutilityformation;
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(2)proposeanapproachtheStatecoulduseforimplementingaregional
stormwaterutilitythatwouldallowtheutilitiestoassumeliabilityand
responsibilityforcompliancewithwaterqualitylaws,includinghowautility
couldassumeresponsibilityfor:
(A)securingthepermittingofpropertiessubjecttothethree-acre
stormwaterpermit;and
(B)achievingthephosphorusreductiontargetsforthethree-acre
stormwaterpermittedpropertieswithintheutilitydistrict;
(3)reviewandrecommendcost-effectiveandequitableapproachesfor
regionallevelrevenueraisinganddistributionofprojectfundingforthe
purposeofstormwatercontrolstomeettotalmaximumdailyloadplans
(TMDLs)including:
(A)considerationofpriorrevenue-raisingrecommendationsmadein
the2017CleanWaterReportfromtheOfficeoftheStateTreasurer;
(B)recommendwhetherandhowtoauthorizearegionalstormwater
utilitytoassessfeesorchargestoalllandowners,residents,andbusinesses
withintheregionalstormwaterutilitydistrictforthepurposeofstormwater
controlstomeetTMDLs;
(C)proposehowaregionalstormwaterutilitydistrictcouldbe
eligibleforCleanWaterStateRevolvingLoanFundawardsandaccessState-
levelfinancialassistanceforthedesign,construction,andoperationand
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maintenanceofregulatoryandnon-regulatorystormwatersystems,including
fromtheCleanWaterStateRevolvingLoanFund;and
(D)recommendwhetherandhowaregionalstormwaterutilitycan
allocateresourcesandcost-effectivelyandequitablyachievepollutant
reductionmeasuresthatarenotfullyachievedbyregulatedsites,asmightbe
articulatedinaregionalstormwatermanagementplan;
(4)proposehowstatuteshouldbeamendedtoimplementanyofthe
recommendationsoftheStudyCommittee,includingstormwatermanagement
planningforpurposesofoverallregionalphosphoruspollutantreductions;and
(5)estimateacosttooperateproposedregionalstormwaterutility
districts.
(d)Assistance.TheStudyCommitteeshallhavetheadministrative,
technical,andlegalassistanceoftheDepartmentofEnvironmental
Conservation.
(e)Report.OnorbeforeJanuary15,2027,theStudyCommitteeshall
submitawrittenreporttotheHouseCommitteesonEnvironmentandon
GovernmentOperationsandMilitaryAffairsandtheSenateCommitteeson
NaturalResourcesandEnergyandonGovernmentOperationswithits
findingsandanyrecommendationsforlegislativeaction.
(f)Meetings.
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(1)TheCommissionerofEnvironmentalConservationordesigneeshall
callthefirstmeetingoftheStudyCommittee.
(2)TheCommissionerofEnvironmentalConservationordesigneeshall
betheChair.
(3)Amajorityofthemembershipshallconstituteaquorum.
(4)TheStudyCommitteeshallceasetoexistonMarch1,2027.
(g)Compensationandreimbursement.MembersoftheStudyCommittee
shallbeentitledtoperdiemcompensationandreimbursementofexpensesas
permittedunder32 V.S.A.§ 1010fornotmorethaneightmeetings.These
paymentsshallbemadefrommoniesappropriatedtotheAgencyofNatural
Resources.
Sec.11.EFFECTIVEDATE
ThisactshalltakeeffectonJuly1,2025.
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