Bill S.174, introduced by Senator Watson, mandates the State Treasurer to conduct a comprehensive study of Green Bank models from other jurisdictions. The purpose of this study is to evaluate how elements of these models could be implemented in Vermont to enhance investment in climate mitigation infrastructure, agriculture, and farming. The study will be guided by recommendation five from the Treasurer's Climate Infrastructure Financing Report of 2024 and will explore the potential creation of a standalone Green Bank or the provision of Green Bank-like authority to existing state entities. The definition of a Green Bank includes financing for farming and agricultural projects, functioning as a loan or investment fund that utilizes various financial tools to support climate-related investments.

In conducting the study, the Treasurer is required to gather input from various stakeholders, including the Vermont Public Finance Climate Collaborative and the Vermont Climate Council, and to establish a mechanism for public comments. The Treasurer will also hold at least one public hearing to discuss draft findings before finalizing a report to the General Assembly, which is due by December 1, 2026. The bill stipulates that it will take effect upon passage.