Bill Summary – FastDemocracy

BILL AS INTRODUCED                                                         H.586
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                                        H.586
 Introduced by Representatives Dolan of Waitsfield, Anthony of Barre City,
                  Bluemle of Burlington, Burrows of West Windsor, Chapin of
                  East Montpelier, Cole of Hartford, Holcombe of Norwich,
                  Hyman of South Burlington, Jerome of Brandon, Lalley of
                  Shelburne, Leavitt of Grand Isle, Masland of Thetford,
                  Mrowicki of Putney, Ode of Burlington, Patt of Worcester,
                  Pouech of Hinesburg, Priestley of Bradford, Rice of Dorset,
                  Squirrell of Underhill, Stebbins of Burlington, Stevens of
                  Waterbury, Stone of Burlington, Torre of Moretown, White of
                  Bethel, and Williams of Barre City
 Referred to Committee on
 Date:
 Subject: Conservation and development; climate resilience; water pollution
             control; Clean Water Fund; Water Quality Enhancement Grant
             Program; planning; disclosure of flood information
 Statement of purpose of bill as introduced: This bill proposes to amend or
 enact multiple provisions related to improved flood protection and climate
 resilience in the State. The bill would also establish or authorize additional
 activities for the financing of climate mitigation, adaptation, and resilience
 projects.
                                                                        VT LEG #365654 v.1
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    An act relating to flood protection and climate resilience infrastructure and
    financing
 It is hereby enacted by the General Assembly of the State of Vermont:
              * * * Climate Infrastructure and Resilience Fund * * *
 Sec. 1. 10 V.S.A. chapter 12, subchapter 15 is added to read:
           Subchapter 15. Climate Infrastructure and Resilience Fund
 § 280gg. CLIMATE INFRASTRUCTURE AND RESILIENCE FUND;
           CREATION; ADMINISTRATION; FUNDING
    (a) There is established within the Authority the Climate Infrastructure and
 Resilience Fund, the purpose of which shall be to enable the Authority to make
 loans and provide other forms of financing for climate change mitigation and
 resilience projects.
    (b) The Fund shall be administered by the Climate Infrastructure and
 Resilience Fund Board consisting of the State Treasurer or designee; the Chief
 Executive Officer of the Authority or designee; the Executive Director of the
 Vermont Housing and Conservation Board or designee; one person, appointed
 by the Governor; one person, appointed by the Speaker of the House; and one
 person, appointed by the Committee on Committees. The Climate
 Infrastructure and Resilience Fund Board shall develop a statewide strategy for
 the Authority to finance climate change mitigation and resilience projects. The
 Board shall have the authority to recommend as part of the strategy how to
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 leverage existing federal, State, municipal, or private resources to support
 investment in climate change mitigation and resilience projects in the State.
    (c) The Climate Infrastructure and Resilience Fund shall consist of:
       (1) two and one-half percent of the State’s cash balance;
       (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; and
       (3) other revenues dedicated for deposit into the Fund by the General
 Assembly.
    (d) Notwithstanding any contrary provisions of 32 V.S.A. chapter 7,
 subchapter 5, unexpended balances and any earnings shall remain in the
 Climate Infrastructure and Resilience Fund from year to year.
 Sec. 2. CLIMATE INFRASTRUTURE AND RESILIENCE POSITIONS
    (a) The positions funded under subsection (b) of this section are authorized
 as permanent positions.
    (b) In addition to other funds appropriated to the following State entities in
 fiscal year 2025, the following appropriations from the General Fund are
 appropriate to the following State entities for the purpose of staffing the
 administration and implementation of the Climate Infrastructure and Resilience
 Fund established under 10 V.S.A. § 280gg and the development, financing, or
 support of climate mitigation and resilience projects:
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        (1) $125,000.00 to the Vermont Development Authority;
        (2) $125,000.00 to the Office of the State Treasurer;
        (3) $125,000.00 to the Vermont Housing Conservation Board;
        (4) $125,000.00 to the Department of Public Service; and
        (5) $125,000.00 to the Agency of Natural Resources.
                           * * * Clean Water Fund * * *
 Sec. 3. 10 V.S.A. § 1389 is amended to read:
 § 1389. CLEAN WATER BOARD
                                       ***
    (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; and VT LEG #365654 v.1
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          (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 $8,000,000.00; 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.
                                        ***
 Sec. 4. 10 V.S.A. § 924 is amended to read:
 § 924. CLEAN WATER SERVICE PROVIDER; RESPONSIBILITY FOR
        CLEAN WATER PROJECTS
    (a) Clean water service providers; establishment.
                                        ***
       (5) When selecting clean water projects for implementation or funding,
 a clean water service provider shall prioritize projects identified in the basin
 plan for the area where the project is located and, shall consider the pollutant
 targets provided by the Secretary and the recommendations of the basin water
 quality council, and shall prioritize projects that achieve one or more of the
 following public values: protection or improvement of water quality, creation
 or improvement of climate resilient watersheds and communities, and support
 of ecological health of the State’s waters.
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    (b) Project identification, prioritization, selection. When identifying,
 prioritizing, and selecting a clean water project to meet a pollutant reduction
 value, the clean water service provider shall consider the pollution reduction
 value associated with the clean water project, one or more of the following
 public values: maintenance or improvement of water quality, creation or
 improvement of climate resilient watersheds and communities, and support of
 ecological health of the State’s waters. Additional considerations include the
 co-benefits provided by the project, qualitative values of natural resources
 protection and restoration projects, operation, and maintenance of the project,
 and conformance with the tactical basin plan, and other water quality benefits
 beyond pollution reduction associated with that clean water project. All
 selected projects shall be entered into the watershed projects database.
                                       ***
 Sec. 5. 10 V.S.A. § 926 is amended to read:
 § 926. WATER QUALITY ENHANCEMENT GRANT PROGRAM
    The Secretary shall administer a Water Quality Enhancement Grant
 Program. This program shall be a competitive grant program to fund projects
 that protect high quality waters, maintain or improve achieve one or more of
 the following public values: protection or improvement of water quality in all
 waters, restore degraded or stressed waters, create; creation or improvement of
 climate resilient watersheds and communities,; and support of the ecological VT LEG #365654 v.1
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 health of the State’s waters. Other secondary benefits that support the public’s
 use and enjoyment of the State’s waters may also be considered. When
 making awards under this program, the Secretary shall consider the geographic
 distribution of these funds. Not more than 15 percent of the total grant amount
 awarded shall be used for administrative costs.
                            * * * VHCB Authority * * *
 Sec. 6. 10 V.S.A. § 302 is amended to read:
 § 302. POLICY, FINDINGS, AND PURPOSE
    (a) The dual goals of creating affordable housing for Vermonters, and
 conserving and protecting Vermont’s agricultural land, forestland, historic
 properties, important natural areas, and recreational lands are of primary
 importance to the economic vitality and quality of life of the State.
    (b) In the best interests of all of its citizens and in order to improve the
 quality of life for Vermonters and to maintain for the benefit of future
 generations the essential characteristics of the Vermont countryside, and to
 support farm, forest, and related enterprises, Vermont should encourage and
 assist in creating affordable housing and in preserving the State’s agricultural
 land, forestland, historic properties, important natural areas and recreational
 lands, planning for climate impacts and improving climate resiliency, and in
 keeping conserved agricultural land in production and affordable for future
 generations of farmers.
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    (c) It is the purpose of this chapter to create the Vermont Housing and
 Conservation Trust Fund to be administered by the Vermont Housing and
 Conservation Board to further the policies established by subsections (a) and
 (b) of this section.
 Sec. 7. VERMONT HOUSING AND CONSERVATION BOARD;
          FUNDING
    Notwithstanding any law to the contrary, in fiscal year 2025, the Vermont
 Housing and Conservation Trust Fund shall, as required under 10 V.S.A.
 § 312, receive in appropriations from the State at least 50 percent of the
 revenue from the property transfer tax under 32 V.S.A. chapter 23. The
 Vermont Housing and Conservation Board (VHCB) shall use funding that
 exceeds its proposed fiscal year 2025 budget for the following climate change
 mitigation and resilience activities:
       (1) continuation of VHCB’s work to achieve more efficient, weatherized
 and climate resilient affordable housing;
       (2) expansion of VHCB’s support for environmental infrastructure
 investments to improve climate resilience;
       (3) expansion of VHCB’s support for working lands businesses to
 achieve climate mitigation and improvement of soil health; and
       (4) the use of at least $5,000,000.00 to be made available to leverage
 existing and new federal, State, municipal, private, and philanthropic resources VT LEG #365654 v.1
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 and employ innovative financing mechanisms to support Vermont investments
 in nature-based climate resilience projects.
                            * * * Basin Planning * * *
 Sec. 8. 10 V.S.A. § 1253(d) is amended to read:
    (d)(1) Through the process of basin planning, the Secretary shall determine
 what degree of water quality and classification should be obtained and
 maintained for those waters not classified by the Board before 1981 following
 the procedures in sections 1254 and 1258 of this title. Those waters shall be
 classified in the public interest. The Secretary shall prepare and maintain an
 overall surface water management plan to assure that the State water quality
 standards are met in all State waters. The surface water management plan shall
 include a schedule for updating the basin plans. The Secretary, in consultation
 with regional planning commissions and the Natural Resources Conservation
 Council, shall revise all 15 basin plans and update the basin plans on a five-
 year rotating basis. On or before January 15 of each year, the Secretary shall
 report to the House Committees on Agriculture, Food Resiliency, and Forestry
 and on Natural Resources, Fish, and Wildlife Environment and Energy and to
 the Senate Committees on Agriculture and on Natural Resources and Energy
 regarding the progress made and difficulties encountered in revising basin
 plans. The report shall include a summary of basin planning activities in the
 previous calendar year, a schedule for the production of basin plans in the VT LEG #365654 v.1
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 subsequent calendar year, and a summary of actions to be taken over the
 subsequent three years. The provisions of 2 V.S.A. § 20(d) (expiration of
 required reports) shall not apply to the report to be made under this subsection.
        (2) In developing a basin plan under this subsection, the Secretary shall:
               (A) identify waters that should be reclassified outstanding resource
 waters or that should have one or more uses reclassified under section 1252 of
 this title;
               (B) identify wetlands that should be reclassified as Class I wetlands;
               (C) identify projects or activities within a basin that will result in the
 protection and enhancement of water quality;
               (D) review the evaluations performed by the Secretary under
 subdivisions 922(a)(1) and (2) of this title and update those findings based on
 any new data collected as part of a basin plan;
               (E) for projects in the basin that will result in enhancement of
 resources, including those that protect high quality high-quality waters of
 significant natural resources, the Secretary shall identify the funding needs
 beyond those currently funded by the Clean Water Fund;
               (F) ensure that municipal officials, citizens, natural resources
 conservation districts, regional planning commissions, watershed groups, and
 other interested groups and individuals are involved in the basin planning
 process;
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          (G) ensure regional and local input in State water quality policy
 development and planning processes;
          (H) provide education to municipal officials and citizens regarding
 the basin planning process;
          (I) develop, in consultation with the regional planning commission,
 an analysis and formal recommendation on conformance with the goals and
 objectives of applicable regional plans;
          (J) provide for public notice of a draft basin plan; and
          (K) provide for the opportunity of public comment on a draft basin
 plan; and
          (L) identify beneficial flood mitigation projects or practices that will
 store flood waters and mitigate impacts to communities from severe weather.
                                       ***
                               * * * Mapping * * *
 Sec. 9. MAPPING OF FLOOD RISKS AND FLOODPLAINS
    (a) The Vermont Center for Geographic Infor