Vermont Clean Water Fund

V.S.A. tit. 10, ch. 47, subch. 7

in effect

10 V.S.A. § 1387 Findings; purpose; Clean Water Initiative

1387. Findings; purpose; Clean Water Initiative (a)(1) The State has committed to implementing a long-term Clean Water Initiative to provide mechanisms, staffing, and financing necessary to achieve and maintain compliance with the Vermont Water Quality Standards for all State waters. (2) Success in implementing the Clean Water Initiative will depend largely on providing sustained and adequate funding to support the implementation of all of the following: (A) the requirements of 2015 Acts and Resolves No. 64; (B) federal or State required cleanup plans for individual waters or water segments, such as total maximum daily load plans; (C) the Agency of Natural Resources’ Combined Sewer Overflow Rule; (D) the operations of clean water service providers under chapter 37, subchapter 5 of this title; and (E) the permanent protection of land and waters from future development and impairment through conservation and water quality projects funded by the Vermont Housing and Conservation Trust Fund authorized by chapter 15 of this title. (3) To ensure success in implementing the Clean Water Initiative, the State should commit to funding the Clean Water Initiative in a manner that ensures the maintenance of effort and that provides an annual appropriation for clean water programs in a range of $50 million to $60 million as adjusted for inflation over the duration of the Initiative. (4) To avoid the future impairment and degradation of the State’s waters, the State should commit to continued funding for the protection of land and waters through agricultural and natural resource conservation, including through permanent easements and fee acquisition. (b) The General Assembly establishes in this subchapter a Vermont Clean Water Fund as a mechanism for financing the improvement of water quality in the State. The Clean Water Fund shall be used to: (1) assist the State in the implementation of the Clean Water Initiative; (2) fund staff positions at the Agency of Natural Resources, Agency of Agriculture, Food and Markets, or Agency of Transportation when the positions are necessary to achieve or maintain compliance with water quality requirements and existing revenue sources are inadequate to fund the necessary positions; and (3) provide funding to clean water service providers to meet the obligations of chapter 37, subchapter 5 of this title. Added 2015, No. 64, § 37, eff. June 16, 2015; amended 2019, No. 76, § 3.

10 V.S.A. § 1388 Clean Water Fund

1388. Clean Water Fund (a) There is created a special fund to be known as the Clean Water Fund to be administered by the Secretary of Administration. The Fund shall consist of: (1) revenues from the property transfer tax surcharge established under 32 V.S.A. § 9602a; (2) other gifts, donations, and impact fees received from any source, public or private, dedicated for deposit into the Fund and approved by the Secretary of Administration; (3) the unclaimed beverage container deposits (escheats) remitted to the State under chapter 53 of this title, except as follows: (A) in State fiscal year 2030, the Secretary may transfer up to $1,000,000.00 to the Solid Waste Management Assistance Account of the fund created pursuant to section 6618 of this title for grants pursuant to subdivision 6618(b)(11) of this title; (B) in State fiscal year 2031, the Secretary may transfer up to $1,000,000.00 to the Solid Waste Management Assistance Account of the fund created pursuant to section 6618 of this title for grants pursuant to subdivision 6618(b)(11) of this title; (C) in State fiscal year 2032, the Secretary may transfer up to $750,000.00 to the Solid Waste Management Assistance Account of the fund created pursuant to section 6618 of this title for grants pursuant to subdivision 6618(b)(11) of this title; and (D) in State fiscal year 2033, the Secretary may transfer up to $750,000.00 to the Solid Waste Management Assistance Account of the fund created pursuant to section 6618 of this title for grants pursuant to subdivision 6618(b)(11) of this title; (4) six percent of the revenues from the meals and rooms taxes imposed under 32 V.S.A. chapter 225; and (5) other revenues dedicated for deposit into the Fund by the General Assembly. (b) Notwithstanding any contrary provisions of 32 V.S.A. chapter 7, subchapter 5, unexpended balances and any earnings shall remain in the Fund from year to year. Added 2015, No. 64, § 37, eff. June 16, 2015; amended 2017, No. 208 (Adj. Sess.), § 4b, eff. May 30, 2018; 2019, No. 76, § 3a, eff. Oct. 1, 2019; 2025, No. 158 (Adj. Sess.), § 4, eff. July 1, 2026.

10 V.S.A. § 1389 Clean Water Board

1389. Clean Water Board (a) Creation. (1) There is created the Clean Water Board that shall: (A) be responsible and accountable for planning, coordinating, and financing of the remediation, improvement, and protection of the quality of State waters; and (B) recommend to the Secretary of Administration expenditures: (i) appropriations from the Clean Water Fund according to the priorities established under subsection (e) of this section; and (ii) water quality programs or projects that provide water quality benefits, reduce pollution, protect natural areas, enhance water quality protections on agricultural land, enhance flood and climate resilience, provide wildlife habitat, or promote and enhance outdoor recreation in support of rural community vitality to be funded by capital appropriations. (2) The Clean Water Board shall be attached to the Agency of Administration for administrative purposes. (b) Organization of the Board. The Clean Water Board shall be composed of: (1) the Secretary of Administration or designee; (2) the Secretary of Natural Resources or designee; (3) the Secretary of Agriculture, Food and Markets or designee; (4) the Secretary of Commerce and Community Development or designee; (5) the Secretary of Transportation or designee; and (6) four members of the public, who are not legislators, with expertise in one or more of the following subject matters: public management, civil engineering, agriculture, ecology, wetlands, stormwater system management, forestry, transportation, law, banking, finance, and investment, to be appointed by the Governor. (c) Officers; committees; rules; compensation; term. (1) The Secretary of Administration shall serve as the Chair of the Board. The Clean Water Board may elect additional officers from its members, establish committees or subcommittees, and adopt procedural rules as necessary and appropriate to perform its work. (2) Members of the Board who are not employees of the State of Vermont and who are not otherwise compensated or reimbursed for their attendance shall be entitled to per diem compensation and reimbursement of expenses pursuant to 32 V.S.A. § 1010 paid from the budget of the Agency of Administration for attendance of meetings of the Board. (3) Members who are appointed to the Clean Water Board shall be appointed for terms of four years, except initial appointments shall be made such that two members appointed by the Governor shall be appointed for a term of two years. Vacancies on the Board shall be filled for the remaining period of the term in the same manner as initial appointments. (d) Powers and duties of the Clean Water Board. The Clean Water Board shall have the following powers and authority: (1) The Clean Water Board shall recommend to the Secretary of Administration the appropriate allocation of funds from the Clean Water Fund for the purposes of developing the State budget required to be submitted to the General Assembly under 32 V.S.A. § 306. All recommendations from the Board should be intended to achieve the greatest water quality gain for the investment. The recommendations of the Clean Water Board shall be open to inspection and copying under the Public Records Act, and the Clean Water Board shall submit to the Senate Committees on Appropriations, on Finance, on Agriculture, and on Natural Resources and Energy and the House Committees on Appropriations, on Ways and Means, on Agriculture and Forestry, and on Natural Resources, Fish, and Wildlife a copy of any recommendations provided to the Governor. (2) The Clean Water Board may pursue and accept grants, gifts, donations, or other funding from any public or private source and may administer such grants, gifts, donations, or funding consistent with the terms of the grant, gift, or donation. (3) The Clean Water Board shall: (A) develop an annual revenue estimate and proposed budget for the Clean Water Fund; (B) establish measures for determining progress and effectiveness of expenditures for clean water restoration efforts; (C) if the Board determines that there are insufficient funds in the Clean Water Fund to issue all grants or financing required by sections 925-928 of this title, conduct all of the following: (i) Direct the Secretary of Natural Resources to prioritize the work needed in every basin, adjust pollution allocations assigned to clean water service providers, and issue grants based on available funding. (ii) Make recommendations to the Governor and General Assembly on additional revenue to address unmet needs. (iii) Notify the Secretary of Natural Resources that there are insufficient funds in the Fund. The Secretary of Natural Resources shall consider additional regulatory controls to address water quality improvements that could not be funded. (D) issue the annual Clean Water Investment Report required under section 1389a of this title; (E) solicit, consult with, and accept public comment from organizations interested in improving water quality in Vermont regarding recommendations under this subsection (d) for the allocation of funds from the Clean Water Fund; and (F) recommend capital appropriations for the permanent protection of land and waters from future development through conservation and water quality projects. (e) Priorities. In making recommendations under subsection (d) of this section regarding the appropriate allocation of funds from the Clean Water Fund, the Board shall prioritize as follows: (1) As a first priority, make recommendations regarding funding for the following grants and programs, which shall each be given equal priority: (A) grants to clean water service providers to fund the reasonable costs associated with the inspection, verification, operation, and maintenance of clean water projects in a basin; (B) the Water Quality Restoration Formula Grant under section 925 of this title; (C) the Agency of Agriculture, Food and Markets’ agricultural water quality programs; (D) the Water Quality Enhancement Grants under section 926 of this title at a funding level of at least 20 percent of the annual balance of the Clean Water Fund, provided that the maximum amount recommended under this subdivision (D) in any year shall not exceed $5,000,000.00; and (E) funding to partners for basin planning, basin water quality council participation, education, and outreach as provided in subdivision 1253(d)(3) of this title, provided funding shall be at least $500,000.00. (2) As the next priority after reviewing funding requests for programs identified under subdivision (1) of this subsection: (A) funding to programs or projects that address or repair riparian conditions that increase the risk of flooding or pose a threat to life or property; (B) funding for education and outreach regarding the implementation of water quality requirements, including funding for education, outreach, demonstration, and access to tools for the implementation of the Acceptable Management Practices for Maintaining Water Quality on Logging Jobs in Vermont, as adopted by the Commissioner of Forests, Parks and Recreation; (C) funding for the Municipal Stormwater Implementation Program as provided in section 928 of this title, including at least $1,000,000.00 annually for costs of complying with permitting requirements under subdivision 1264(c)(7) of this title; (C) funding for the Municipal Stormwater Implementation Program as provided in section 928 of this title; (D) funding for innovative or alternative technologies or practices designed to improve water quality or reduce sources of pollution to surface waters, including funding for innovative nutrient removal technologies and community-based methane digesters that utilize manure, wastewater, and food residuals to produce energy; and (E) funding to purchase agricultural land in order to take that land out of practice when the State water quality requirements cannot be remediated through agricultural Best Management Practices. (3) As the next priority after reviewing funding requests under subdivisions (1) and (2) of this subsection, funding for the Developed Lands Implementation Program as provided in section 927 of this title. (f) Assistance. The Clean Water Board shall have the administrative, technical, and legal assistance of the Agency of Administration, the Agency of Natural Resources, the Agency of Agriculture, Food and Markets, the Agency of Transportation, and the Agency of Commerce and Community Development for those issues or services within the jurisdiction of the respective agency. The cost of the services provided by agency staff shall be paid from the budget of the agency providing the staff services. Added 2015, No. 64, § 37, eff. June 16, 2015; amended 2015, No. 158 (Adj. Sess.), § 33, eff. June 2, 2016; 2017, No. 74, § 16a; 2017, No. 168 (Adj. Sess.), § 1, eff. May 22, 2018; 2019, No. 76, § 4; 2025, No. 37, § 7, eff. July 1, 2025; 2025, No. 37, § 10, eff. Oct. 1, 2032.

10 V.S.A. § 1389a Clean Water Investment Report

1389a. Clean Water Investment Report (a) Beginning on January 15, 2017, and annually thereafter, the Secretary of Administration shall publish the Clean Water Investment Report. The Report shall summarize all investments, including their cost-effectiveness, made by the Clean Water Board and other State agencies for clean water restoration over the prior fiscal year. The Report shall include expenditures from the Clean Water Fund, the General Fund, the Transportation Fund, and any other State expenditures for clean water restoration, regardless of funding source. (b) The Report shall include: (1) Documentation of progress or shortcomings in meeting established indicators for clean water restoration. (2) [Repealed.] (3) A summary of water quality problems or concerns in each watershed basin of the State, a list of water quality projects identified as necessary in each basin of the State, and how identified projects have been prioritized for implementation. The water quality problems and projects identified under this subdivision shall include programs or projects identified across State government and shall not be limited to projects listed by the Agency of Natural Resources in its watershed projects database. (4) A summary of any changes to applicable federal law or policy related to the State’s water quality improvement efforts, including any changes to requirements to implement total maximum daily load plans in the State. (5) [Repealed.] (6) Beginning on January 2024, a summary of the administration of the grant programs established under sections 925–928 of this title, including whether these grant programs are adequately funding implementation of the Clean Water Initiative and whether the funding limits for the Water Quality Enhancement Grants under subdivision 1389(e)(1)(D) of this title should be amended to improve State implementation of the Clean Water Initiative. (7) Beginning in January 2028 and every four years thereafter, a review of the sufficiency of the Clean Water Surcharge to the property transfer tax under 32 V.S.A. § 9602a, including an assessment of whether the revenue generated by the surcharge remains necessary to fulfill the State’s clean water initiatives. The review shall include an assessment of whether the Clean Water Surcharge should be continued, whether the amount of the surcharge should be adjusted, and whether the surcharge should be repealed at a specified date. (c) The Report may also provide an overview of additional funding necessary to meet objectives established for clean water restoration and recommendations for additional revenue to meet those restoration objectives. The provisions of 2 V.S.A. § 20(d), expiration of required reports, shall not apply to the report required by this section. (d)(1) The Secretary of Administration shall develop and use a results-based accountability process in publishing the annual report required by subsection (a) of this section. (2) The Secretary of Administration shall develop user-friendly issue briefs, tables, or executive summaries that make the information required under subdivision (b)(3) of this section available to the public separately from the report required by this section. (3) On or before September 1 of each year, the Secretary of Administration shall submit to the Joint Fiscal Committee a summary of available federal funding related to or for water quality efforts in the State. Added 2015, No. 64, § 37, eff. June 16, 2015; amended 2017, No. 85, § E.700.1; 2017, No. 168 (Adj. Sess.), § 2, eff. May 22, 2018; 2019, No. 76, § 10; 2021, No. 170 (Adj. Sess.), § 3, eff. July 1, 2022; 2023, No. 79, § 9, eff. July 1, 2023; 2025, No. 37, § 7a, eff. July 1, 2025.

10 V.S.A. § 1389b Clean Water Fund audit

1389b. Clean Water Fund audit (a) On or before January 15, 2023, the Secretary of Administration shall submit to the House and Senate Committees on Appropriations, the Senate Committee on Finance, the House Committee on Ways and Means, the Senate Committee on Agriculture, the House Committee on Agriculture, Food Resiliency, and Forestry, the Senate Committee on Natural Resources and Energy, and the House Committee on Environment a program audit of the Clean Water Fund. The audit shall include: (1) a summary of the expenditures from the Clean Water Fund, including the water quality projects and programs that received funding; (2) an analysis and summary of the efficacy of the water quality projects and programs funded from the Clean Water Fund or implemented by the State; (3) an evaluation of whether water quality projects and programs funded or implemented by the State are achieving the intended water quality benefits; (4) an assessment of the capacity of the Agency of Agriculture, Food and Markets to effectively administer and enforce agricultural water quality requirements on farms in the State; (5) an assessment of the capacity of the Department of Environmental Conservation to effectively administer and enforce agricultural water quality requirements on farms in the State; and (6) a recommendation of whether the General Assembly should authorize the continuation of the Clean Water Fund and, if so, at what funding level. (b) The audit required by this section shall be conducted by a qualified, independent environmental consultant or organization with knowledge of the federal Clean Water Act, State water quality requirements and programs, the Lake Champlain Total Maximum Daily Load plan, and the program elements of the State Clean Water Initiative. (c) Notwithstanding provisions of section 1389 of this title to the contrary, the Secretary of Administration shall pay for the costs of the audit required under this section from the Clean Water Fund, established under section 1388 of this title. Added 2015, No. 64, § 37, eff. June 16, 2015; amended 2015, No. 97 (Adj. Sess.), § 20; 2019, No. 64, § 19; 2019, No. 154 (Adj. Sess.), § E.100.1, eff. Oct. 2, 2020.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/10/047Fetched: 10/21/2026