Bill H.746 seeks to amend Vermont's laws regarding potable water supply and wastewater system permitting to promote housing development while ensuring public health and environmental protections. Key provisions include allowing the repurposing of permitted potable water supplies for public benefits without the need for redesign or additional capacity, and establishing design standards for wastewater systems located under paved surfaces. The bill mandates a minimum horizontal isolation distance of 75 feet between wastewater systems and potable water supplies, with the Secretary of Natural Resources given the authority to adjust this distance based on specific site conditions. Additionally, it streamlines the permitting process by exempting certain construction projects from wetlands and Act 250 permits, particularly in village and downtown centers.

The bill also introduces amendments that require the Secretary to issue permits based on certifications from licensed designers without individual review, and allows for reduced design flows to support compact housing. It mandates consultation with a Technical Advisory Committee for rulemaking and sets a timeline for amending existing rules to align with the new requirements. Notably, it eliminates the need for wetlands permits for leachfields associated with permitted wastewater systems and clarifies the definition of "development" to exclude certain construction on enrolled land. Furthermore, the bill exempts specific transfers from the land use change tax related to potable water supply or wastewater system permitting, with an effective date of July 1, 2026. Overall, the bill aims to simplify the permitting process for essential infrastructure while clarifying development definitions and tax implications.

Statutes affected:
As Introduced: 10-1971, 10-1973, 10-1978, 10-913, 10-1263(f), 10-1263, 10-6081, 32-3752(5), 32-3752, 32-9603