Week 14 of the 2021 Vermont Legislative Session – April 16, 2021
It became apparent this week that the General Assembly’s view of the pandemic is different from reality. Businesses and organizations are now trying to figure out how and if they can reopen for the spring and summer. The financial constraints have been tremendous and both businesses as well as families need to determine if they even have a shot of surviving the pandemic. A few controversial examples are expanding the bottle bill redemption system which would remove commodities like aluminum cans and plastic bottles from the recycling system and increasing the cost of products and recycling to Vermonters.
The second example was putatively taxing businesses that were encouraged to apply for the Payroll Protection Program which is fully forgiven and not taxable by the federal government. The Legislature decided that as we crawl out of the pandemic businesses would now have the sales and revenue to pay the Vermont income tax for loans provided in 2021. The economic impact on those that used the funds, as envisioned, was to pay employees instead of going on unemployment. Mixed signals at a time when all of Vermont is very fragile. The Chair of Senate Finance explained that “the loans given in 2020 are forgiven and not taxable. The ‘income’ occurred in 2020, not in 2021. If the business did not get it forgiven at all - regardless of when - then it isn’t income, it’s a loan and it doesn’t come in to play for this bill at all”. The Chair reiterated that the Committee wanted to be in-line (also known as linking up) with the Feds, including allowing the expense deductions for payments made using PPP funds.”
The adjournment date has begun slipping longer than first anticipated, pushing into the second weekend of May, and there are rumors it could slip beyond that. This, in some sense, gives Legislative Committees another full week to pass more bills that could be concerning and not helpful to the economy. The Legislature has pegged June 23rd & 24th for a “Veto Session” if needed. The Speaker of the House has indicated that bills passed late in the session will not make it through both chambers and bills like H.175 would likely not make it to the Governor’s desk. This could be viewed as a political move that would likely force a “veto session” in election year 2022 and make Governor Scott appear as unconcerned about the environment.
Federal Agricultural Issues Highlighted
The Vermont Congressional delegation met with the House Agriculture Committee to give an update about how agriculture in Vermont is fairing in Washington D.C. Congressman Welch, Senator Leahy & Senator Sanders are working to ensure smaller farms who have diversified, as well as larger farms, do not fall through the cracks of the federal government. The group informed the committee that the Dairy Pride Act will be reintroduced this week in D.C., where all members of the delegation will be taking a large role in ensuring the bill is brought to the finish line this year. They also mentioned that there is special care being taken to look at the food supply system to be strengthened with ARPA funds. The COVID-19 pandemic really highlighted the food supply chain gaps, and they want to ensure food is being delivered to those who most need it, regardless of the disaster.
H.434 - An act relating to establishing the Agricultural Innovation Board
The Vermont Dairy Producers Alliance testified before the Senate this week on H.434. The Alliance offered the following comments as well as clearly allocating a Board seat to a conventional dairy farmer.
The Committee reworked the composition of the Board but supported the larger board and will finalize those seats next week.
Grazing and Pasture Management
Heather Darby from UVM extension, spent time with the House Agriculture & Forestry Committee to educate them on Vermont transitioning conventional dairy to grazing farms. Darby explained the different ways in which a cow can feed, including organic, grass and grazing cows, which all have different requirements. Feeding cows more forage is proven to lead to less stress for the cows. And further pointed out that farms need the education on the benefits of grazing, including saving money on feed. It was acknowledged that not all farms have the land mass to accommodate this. There is a lack of technical assistance within the state to help farms move to grazing. The UVM Extension will continue to do more research and will have more information next year.
S.83 An act relating to the Dairy Industry Stabilization Program (consideration postponed to 2022)
This bill proposes to add a $0.05 tax on every retail package of dairy products sold by a distributor to a retailer. The bill would also establish the Dairy Industry Stabilization Program to provide financial assistance to dairy farmers in the State. The financial assistance would be provided in the form of a premium over the federal order price that the State shall pay each registered Vermont dairy farmer per hundredweight of milk sold in the State. When the product is delivered by the wholesaler to the retail outlet, the money is added to the invoice. It does not attempt to change the federal milk order but instead is in addition to.
H.172 An act relating to trapping and hunting (no action)
S.102 An act relating to the regulation of agricultural inputs for farming
A bill introduced by Senator Chris Pearson made its way through the Legislative process. The House Agriculture committee passed the bill out after much testimony and discussion around the registration requirements for animal health products. The premise of the bill was to address a 3-year effort to tackle compost foraging and food residuals.
The bill will:
here.
American Rescue Plan Act (ARPA)
The General Assembly is trying to better understand all the “funding” available through the recent ARPA funds. For environmental concerns in Vermont, the Department of Environmental Conservation (DEC) provided a report which details priorities and potential funding strategies for the following programs:
The goal of the proposal is to make transformative investments to protect public health and the environment with the immense one-time funds Vermont will receive from the American Rescue Plan Act (ARPA).
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
It became apparent this week that the General Assembly’s view of the pandemic is different from reality. Businesses and organizations are now trying to figure out how and if they can reopen for the spring and summer. The financial constraints have been tremendous and both businesses as well as families need to determine if they even have a shot of surviving the pandemic. A few controversial examples are expanding the bottle bill redemption system which would remove commodities like aluminum cans and plastic bottles from the recycling system and increasing the cost of products and recycling to Vermonters.
The second example was putatively taxing businesses that were encouraged to apply for the Payroll Protection Program which is fully forgiven and not taxable by the federal government. The Legislature decided that as we crawl out of the pandemic businesses would now have the sales and revenue to pay the Vermont income tax for loans provided in 2021. The economic impact on those that used the funds, as envisioned, was to pay employees instead of going on unemployment. Mixed signals at a time when all of Vermont is very fragile. The Chair of Senate Finance explained that “the loans given in 2020 are forgiven and not taxable. The ‘income’ occurred in 2020, not in 2021. If the business did not get it forgiven at all - regardless of when - then it isn’t income, it’s a loan and it doesn’t come in to play for this bill at all”. The Chair reiterated that the Committee wanted to be in-line (also known as linking up) with the Feds, including allowing the expense deductions for payments made using PPP funds.”
The adjournment date has begun slipping longer than first anticipated, pushing into the second weekend of May, and there are rumors it could slip beyond that. This, in some sense, gives Legislative Committees another full week to pass more bills that could be concerning and not helpful to the economy. The Legislature has pegged June 23rd & 24th for a “Veto Session” if needed. The Speaker of the House has indicated that bills passed late in the session will not make it through both chambers and bills like H.175 would likely not make it to the Governor’s desk. This could be viewed as a political move that would likely force a “veto session” in election year 2022 and make Governor Scott appear as unconcerned about the environment.
Federal Agricultural Issues Highlighted
The Vermont Congressional delegation met with the House Agriculture Committee to give an update about how agriculture in Vermont is fairing in Washington D.C. Congressman Welch, Senator Leahy & Senator Sanders are working to ensure smaller farms who have diversified, as well as larger farms, do not fall through the cracks of the federal government. The group informed the committee that the Dairy Pride Act will be reintroduced this week in D.C., where all members of the delegation will be taking a large role in ensuring the bill is brought to the finish line this year. They also mentioned that there is special care being taken to look at the food supply system to be strengthened with ARPA funds. The COVID-19 pandemic really highlighted the food supply chain gaps, and they want to ensure food is being delivered to those who most need it, regardless of the disaster.
H.434 - An act relating to establishing the Agricultural Innovation Board
The Vermont Dairy Producers Alliance testified before the Senate this week on H.434. The Alliance offered the following comments as well as clearly allocating a Board seat to a conventional dairy farmer.
The Committee reworked the composition of the Board but supported the larger board and will finalize those seats next week.
Grazing and Pasture Management
Heather Darby from UVM extension, spent time with the House Agriculture & Forestry Committee to educate them on Vermont transitioning conventional dairy to grazing farms. Darby explained the different ways in which a cow can feed, including organic, grass and grazing cows, which all have different requirements. Feeding cows more forage is proven to lead to less stress for the cows. And further pointed out that farms need the education on the benefits of grazing, including saving money on feed. It was acknowledged that not all farms have the land mass to accommodate this. There is a lack of technical assistance within the state to help farms move to grazing. The UVM Extension will continue to do more research and will have more information next year.
S.83 An act relating to the Dairy Industry Stabilization Program (consideration postponed to 2022)
This bill proposes to add a $0.05 tax on every retail package of dairy products sold by a distributor to a retailer. The bill would also establish the Dairy Industry Stabilization Program to provide financial assistance to dairy farmers in the State. The financial assistance would be provided in the form of a premium over the federal order price that the State shall pay each registered Vermont dairy farmer per hundredweight of milk sold in the State. When the product is delivered by the wholesaler to the retail outlet, the money is added to the invoice. It does not attempt to change the federal milk order but instead is in addition to.
H.172 An act relating to trapping and hunting (no action)
A bill introduced by Senator Chris Pearson made its way through the Legislative process. The House Agriculture committee passed the bill out after much testimony and discussion around the registration requirements for animal health products. The premise of the bill was to address a 3-year effort to tackle compost foraging and food residuals.
The bill will:
- require the Agency of Agriculture, Food and Markets (AAFM) to regulate compost foraging as farming;
- amend the definition of “farming” under Act 250 and the Required Agricultural Practices to include compost foraging;
- require the manufacturer or distributor of animal health products, feed supplements, biostimulants, soil amendments, and plant amendments sold or distributed in the State to register the products with AAFM
American Rescue Plan Act (ARPA)
The General Assembly is trying to better understand all the “funding” available through the recent ARPA funds. For environmental concerns in Vermont, the Department of Environmental Conservation (DEC) provided a report which details priorities and potential funding strategies for the following programs:
- Clean water – Clean Water Fund, Clean Water State Revolving Fund (loans)
- Safe drinking water – Drinking Water State Revolving Fund (loans)
- Climate change/Clean Air – State EV incentives, low-income weatherization program, Clean Energy Development Fund, and more
- Brownfield/contaminated site cleanup – Environmental Contingency Fund, EPA
- Universal recycling – Solid Waste Management Assistance Fund
The goal of the proposal is to make transformative investments to protect public health and the environment with the immense one-time funds Vermont will receive from the American Rescue Plan Act (ARPA).
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
Week 13 of the 2021 Vermont Legislative Session – April 9, 2021
The General Assembly is caught between having a flood of new funds flow into Vermont from the American Rescue Plan Act (ARPA) and not having enough time this session to figure out how to spend it. Again, Vermont received the small state minimum which per capita sets Vermont up very well. The plan also allows for three years to spend the money. However, with issues of healthcare affordability and access to broadband the need is today not 4 or 5 years from now.
Another big topic this session is workforce development as it is a frequent component of any piece of legislation. Being able to utilize the ARPA funds is one thing but trying to line up the workforce to build new housing stock or run new lines of fiber in Vermont is a huge barrier. The workforce development state director is focusing hard to “increase the number and skill level of available workers in Vermont.” For example, Vermont will need an increase in trained weatherization workers to meet the greenhouse gas emission reductions in the Global Warming Solutions Act. Vermont’s Workforce Development Division, a division of the Department of Labor, was created to provide employment services, training assistance, and job counseling to businesses and job seekers with a 21st century approach.
Governor’s Proposed Spending for ARPA funds:
Governor Phil Scott’s spending plan for anticipated funds from American Rescue Plan Act (ARPA) will allocate over $1 Billion rescue dollars as follows:
The Administration’s proposal is trying to be respectful of the work being done by the Vermont Climate Council and are holding $100M for additional needs once the Climate Action Plan is finalized.
The Vermont Climate Council, created by the Global Warming Solutions Act, is a 23-member council tasked with creating a first phase of the Climate Action Plan by December 1, 2021. The council divided into 5 subcommittees to complete necessary research, drafting and engage public input prior to the plan due date. The five subcommittees are:
Act 250 Update
Revisions to Act 250 failed to pass during the 2020 session after a 3-year process attempting to update the 50-year-old law. Three Act 250 bills are being considered by the House Natural Resources, Fish and Wildlife Committee this session. These bills did not make the crossover deadline this year. However, components could be included in bills already on the move.
H.278 An act relating to Act 250 municipal master plan permits
This bill proposes to allow a municipality to apply for an Act 250 master plan permit for its downtown village center, and neighborhood development areas.
H.400 An act relating to changes to the Natural Resources Board and Act 250
This bill proposes to make revisions to the State land use law known as Act 250, including but not limited to:
H.120 An act relating to updates to Act 250
This bill proposes to make multiple changes to the State land use laws, including Act 250, to incorporate strategies to address and mitigate climate change.
Some of the proposals in the bill:
H.434 - An act relating to establishing the Agricultural Innovation Board (House bill under review in Senate)
The Vermont Dairy Producers Alliance testified before the Senate this week on H.434. The Alliance offered the following comments as well as clearly allocating a Board seat to a conventional dairy farmer.
Support:
H.172 An act relating to trapping and hunting
This bill proposes to prohibit trapping of animals unless conducted by a licensed nuisance wildlife control operator. It establishes a nuisance wildlife trapping license. It also prohibits the use of dogs in hunting black bears. House Natural Resources heard testimony on this bill and other relevant bills under the same scope from several stakeholders.
There was no discussion on the next steps with the bill.
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
The General Assembly is caught between having a flood of new funds flow into Vermont from the American Rescue Plan Act (ARPA) and not having enough time this session to figure out how to spend it. Again, Vermont received the small state minimum which per capita sets Vermont up very well. The plan also allows for three years to spend the money. However, with issues of healthcare affordability and access to broadband the need is today not 4 or 5 years from now.
Another big topic this session is workforce development as it is a frequent component of any piece of legislation. Being able to utilize the ARPA funds is one thing but trying to line up the workforce to build new housing stock or run new lines of fiber in Vermont is a huge barrier. The workforce development state director is focusing hard to “increase the number and skill level of available workers in Vermont.” For example, Vermont will need an increase in trained weatherization workers to meet the greenhouse gas emission reductions in the Global Warming Solutions Act. Vermont’s Workforce Development Division, a division of the Department of Labor, was created to provide employment services, training assistance, and job counseling to businesses and job seekers with a 21st century approach.
Governor’s Proposed Spending for ARPA funds:
Governor Phil Scott’s spending plan for anticipated funds from American Rescue Plan Act (ARPA) will allocate over $1 Billion rescue dollars as follows:
- Economic Development - $143M
- Climate Change - $200M
- Water/Sewer Infrastructure - $170M
- Housing - $249M
- Connectivity - $250.5M
- Administration - $17M
The Administration’s proposal is trying to be respectful of the work being done by the Vermont Climate Council and are holding $100M for additional needs once the Climate Action Plan is finalized.
The Vermont Climate Council, created by the Global Warming Solutions Act, is a 23-member council tasked with creating a first phase of the Climate Action Plan by December 1, 2021. The council divided into 5 subcommittees to complete necessary research, drafting and engage public input prior to the plan due date. The five subcommittees are:
- Agriculture and ecosystems
- Rural resilience and adaptation
- Cross-sector mitigation
- Just transitions
- Science and date
Act 250 Update
Revisions to Act 250 failed to pass during the 2020 session after a 3-year process attempting to update the 50-year-old law. Three Act 250 bills are being considered by the House Natural Resources, Fish and Wildlife Committee this session. These bills did not make the crossover deadline this year. However, components could be included in bills already on the move.
H.278 An act relating to Act 250 municipal master plan permits
This bill proposes to allow a municipality to apply for an Act 250 master plan permit for its downtown village center, and neighborhood development areas.
H.400 An act relating to changes to the Natural Resources Board and Act 250
This bill proposes to make revisions to the State land use law known as Act 250, including but not limited to:
- Changing to the Natural Resources Board (NRB) to a professional board
- Changing the path of permit appeals by removing jurisdiction of the Environmental Division of the Superior Court; appeals would go straight to the Supreme Court
- Adding a preapplication scoping process for large projects, creating an enhanced designation process for village centers, and exempting development and subdivisions located within designated downtowns, enhanced village centers, and neighborhood development areas
- Allowing the NRB to release projects from Act 250 jurisdiction if the property would no longer trigger Act 250
- Excluding previously disturbed areas from the definition of development if they are transportation facilities
- Update certain criteria and add new criteria for climate adaptation
- Create new permit to address impacts on fish and wildlife habitat
- Exempting from the definition of development accessory on-farm businesses constructed on less than 1 acre.
H.120 An act relating to updates to Act 250
This bill proposes to make multiple changes to the State land use laws, including Act 250, to incorporate strategies to address and mitigate climate change.
Some of the proposals in the bill:
- Amending duties of the Natural Resources Board
- Amending conditions and criteria, adds Climate Change Mitigation, Environmental Justice, and Mitigation of Forest Blocks & Connecting Habitat
- Requires the Agency of Natural Resources to complete and maintain resource mapping
- Racial Equity Review of Act 250 processes, procedures, and language
- Permit fee review
H.434 - An act relating to establishing the Agricultural Innovation Board (House bill under review in Senate)
The Vermont Dairy Producers Alliance testified before the Senate this week on H.434. The Alliance offered the following comments as well as clearly allocating a Board seat to a conventional dairy farmer.
Support:
- the new Board envisioned in the House passed bill of H.434. The Bill allows for a broader perspective with more technical assistance across the industry
- policy development based on practical and realistic applications and the pros and cons of pesticide use and use of alternative methods
- a Board that looks to develop well thought out policy and engages the many industries that count on the use of new technology and new pesticides that have been developed and researched
- Pesticides have a practical use which leads to better water quality. As dairy producers, we can offer valid input on how and why they are being applied.
- Need to take a more expansive approach as agriculture practices and other sectors have dramatically changed over the last decade and take advantage of the new technologies and practices
H.172 An act relating to trapping and hunting
This bill proposes to prohibit trapping of animals unless conducted by a licensed nuisance wildlife control operator. It establishes a nuisance wildlife trapping license. It also prohibits the use of dogs in hunting black bears. House Natural Resources heard testimony on this bill and other relevant bills under the same scope from several stakeholders.
There was no discussion on the next steps with the bill.
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
Week 12 of the 2021 Vermont Legislative Session – April 2, 2021
With billions of dollars coming to help Vermont climb out of the pandemic and economic disaster, Legislators devoted time to non-essential bills. The House has taken one step closer to expanding the bottle bill. The expansion would increase costs to the recycling system by 11% and increases costs at retailers while potentially limiting the selection of products to purchase. With clear data on the antiquated bottle bill, the Democratic leadership in the House is making a political move. The end game on this Legislation is unknown but the debate on the floor is expected to be one of the most difficult this session.
During the weekly Party Caucus meetings, members heard Matthew Cunningham-Cook, a Brattleboro writer and researcher with expertise in health care, retirement policy, and capital markets, give his opinion on Vermont’s pension crisis. He first states that he pushes back on the idea that the current pension under-funding is a crisis. Cunningham-Cook tossed around lots of big finance words while he spoke and had nothing but criticism for Treasurer Pearce and the Vermont Pension Investment Committee. Cunningham-Cook’s March 24, 2021 op-ed on the topic can be found on VT Digger. He will have a second op-ed piece in an upcoming edition of VT Digger.
The drain on the pension system for state workers and teachers remained a hot topic. One thing everyone agrees on, is something must be done now. With each passing session the system gets a bit worse. The Legislature perennially uses millions of dollars of one-time funding to try to pay down the debt to the fund. There is no doubt this is a tough topic and workers’ voices are loud, but it might be another year of chasing their tail. The House Speaker has backed away from making changes to the pension fund this session. Her plan is that lawmakers would establish a task force to study the problem over the summer. The delay will grow the underfunded pension plan by another $600 million.
H.315 An act relating to COVID-19 relief
An infusion of cash to Vermont is anticipated from the American Rescue Plan Act (ARPA) and most committees in both chambers have started spending the not-yet-received funds. However, some legislators feel that there is a risk associated with distributing funds that have not arrived in Vermont and are certain to come with spending guidelines. The Feds are allowing for a longer timeline to spend ARPA funds, compared to previous stimulus packages, which means there is no rush to spend this session. This is economic stimulus bill relying on these federal funds was passed by both the House and Senate but with different funding amounts. Both bodies suggest substituting general fund dollars with ARPA funds when the money arrives. The House version allocates $41.9M, the Senate upped the ante and approved $62.6M and sent it back to the House for approval.
There is an urgency to pass the bill in order to distribute aid to Vermonters as soon as possible. However, that does not seem likely as the difference between the spending is so large. It is more likely this large spending bill will go to a Committee of Conference where end of session deals are made.
H.434 - An act relating to establishing the Agricultural Innovation Board (House bill under review in Senate)
This bill establishes the Agricultural Innovation Board to replace the Pesticide Advisory Council. The Agricultural Innovation Board would include 15 members and would make recommendations to the Governor and the General Assembly for prioritizing and coordinating the implementation of the recommendations of the Soil Health and Payment for Ecosystem Services Working Group, the Vermont Climate Council, and others they deem important. The Agricultural Innovation Board would also recommend practices that reduce the use of and exposure to pesticides and synthetic fertilizers to protect soil biology, human health, and environmental health.
The Agency of Natural Resources Secretary, Julie Moore, requested the Senate Committee change the composition of the committee and their charge. Under the ANR proposal the Board would be made up of:
The Board would advise the (AAFM) Secretary on policy re: pesticides, budget, and challenges, with the Secretary required to report to the legislature.
In addition, two advisory panels in the statute (with the authority for the Board to create additional advisory panels as needed to carry out its duties):
These two panels would be composed of:
On Friday, the Senate Ag Committee reviewed H.434 as well as the request from the ANR Secretary. Interested parties are encouraged to testify.
H.108 An act relating to Vermont standards for issuing a Clean Water Act section 401 certification
The bill passed the House in mid-March and is now being considered by the Senate Natural Resources and Energy Committee. The bill proposes to amend the Vermont Water Quality Standards (VWQS) to clarify that the standards apply to wetlands and discharges to wetlands. Throughout discussions of the changes proposed, a common theme has surfaced: protecting Vermont wetlands from future large projects, such as natural gas pipelines.
Per testimony by legislative counsel and Matt Chapin, General Counsel for the Agency of Natural Resources, H.108 will not have an effect on farms because existing exemptions under Section 401 for farms are not changing. The Committee will continue testimony next week.
Funding for Clean Water Projects Including Waste and Stormwater Infrastructure
Senate Natural Resource & Energy prioritized a list of water quality projects in anticipation of Vermont receiving federal funds from the American Rescue Plan Act of 2021 (ARPA). Federal officials have not released guidelines on how ARPA funds can be used, but early indications would allow use for water, sewer, and broadband projects. It is likely the Clean Water Fund will receive $100M of ARPA funds over the next five years in lieu of the estimated $60M in sales tax revenues the fund would normally receive during the same time. The FY21-22 Capital Bill, currently in the Senate, includes funding for water and sewer projects and proposals to substitute $10-$15M in general fund dollars for ARPA funds if available.
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
With billions of dollars coming to help Vermont climb out of the pandemic and economic disaster, Legislators devoted time to non-essential bills. The House has taken one step closer to expanding the bottle bill. The expansion would increase costs to the recycling system by 11% and increases costs at retailers while potentially limiting the selection of products to purchase. With clear data on the antiquated bottle bill, the Democratic leadership in the House is making a political move. The end game on this Legislation is unknown but the debate on the floor is expected to be one of the most difficult this session.
During the weekly Party Caucus meetings, members heard Matthew Cunningham-Cook, a Brattleboro writer and researcher with expertise in health care, retirement policy, and capital markets, give his opinion on Vermont’s pension crisis. He first states that he pushes back on the idea that the current pension under-funding is a crisis. Cunningham-Cook tossed around lots of big finance words while he spoke and had nothing but criticism for Treasurer Pearce and the Vermont Pension Investment Committee. Cunningham-Cook’s March 24, 2021 op-ed on the topic can be found on VT Digger. He will have a second op-ed piece in an upcoming edition of VT Digger.
The drain on the pension system for state workers and teachers remained a hot topic. One thing everyone agrees on, is something must be done now. With each passing session the system gets a bit worse. The Legislature perennially uses millions of dollars of one-time funding to try to pay down the debt to the fund. There is no doubt this is a tough topic and workers’ voices are loud, but it might be another year of chasing their tail. The House Speaker has backed away from making changes to the pension fund this session. Her plan is that lawmakers would establish a task force to study the problem over the summer. The delay will grow the underfunded pension plan by another $600 million.
H.315 An act relating to COVID-19 relief
An infusion of cash to Vermont is anticipated from the American Rescue Plan Act (ARPA) and most committees in both chambers have started spending the not-yet-received funds. However, some legislators feel that there is a risk associated with distributing funds that have not arrived in Vermont and are certain to come with spending guidelines. The Feds are allowing for a longer timeline to spend ARPA funds, compared to previous stimulus packages, which means there is no rush to spend this session. This is economic stimulus bill relying on these federal funds was passed by both the House and Senate but with different funding amounts. Both bodies suggest substituting general fund dollars with ARPA funds when the money arrives. The House version allocates $41.9M, the Senate upped the ante and approved $62.6M and sent it back to the House for approval.
There is an urgency to pass the bill in order to distribute aid to Vermonters as soon as possible. However, that does not seem likely as the difference between the spending is so large. It is more likely this large spending bill will go to a Committee of Conference where end of session deals are made.
H.434 - An act relating to establishing the Agricultural Innovation Board (House bill under review in Senate)
This bill establishes the Agricultural Innovation Board to replace the Pesticide Advisory Council. The Agricultural Innovation Board would include 15 members and would make recommendations to the Governor and the General Assembly for prioritizing and coordinating the implementation of the recommendations of the Soil Health and Payment for Ecosystem Services Working Group, the Vermont Climate Council, and others they deem important. The Agricultural Innovation Board would also recommend practices that reduce the use of and exposure to pesticides and synthetic fertilizers to protect soil biology, human health, and environmental health.
The Agency of Natural Resources Secretary, Julie Moore, requested the Senate Committee change the composition of the committee and their charge. Under the ANR proposal the Board would be made up of:
- the Secretary of Agriculture, Food and Markets or designee
- the Secretary of Natural Resources or designee
- a member from the University of Vermont Center for Sustainable Agriculture
- a representative from an environmental advocacy organization
- a member of the farming community and
- a member from UVM extension or a certified crop consultant
The Board would advise the (AAFM) Secretary on policy re: pesticides, budget, and challenges, with the Secretary required to report to the legislature.
In addition, two advisory panels in the statute (with the authority for the Board to create additional advisory panels as needed to carry out its duties):
- Pesticide advisory panel
- Clean water and ecosystem services advisory panel
These two panels would be composed of:
- the Secretary of Agriculture, Food and Markets or designees
- the Secretary of Natural Resources or designees
- a member of the public representing the dairy industry in Vermont
- a member of the public representing fruit and vegetable production in Vermont
- a member of the public representing grass-based, non-dairy livestock farming in Vermont
- a member of the public knowledgeable in agricultural water management and
- a representative from an organization involved in land conservation
- the Commissioner of DEC or designee
- the Commissioner of DFW or designee
- the Commissioner of Health or designee
- a member of the farming community who practices organic agriculture
- a member of the public representing the dairy industry in Vermont (or a certified applicator, or someone who represents pesticide users)
- a representative from an environmental advocacy organization
On Friday, the Senate Ag Committee reviewed H.434 as well as the request from the ANR Secretary. Interested parties are encouraged to testify.
H.108 An act relating to Vermont standards for issuing a Clean Water Act section 401 certification
The bill passed the House in mid-March and is now being considered by the Senate Natural Resources and Energy Committee. The bill proposes to amend the Vermont Water Quality Standards (VWQS) to clarify that the standards apply to wetlands and discharges to wetlands. Throughout discussions of the changes proposed, a common theme has surfaced: protecting Vermont wetlands from future large projects, such as natural gas pipelines.
Per testimony by legislative counsel and Matt Chapin, General Counsel for the Agency of Natural Resources, H.108 will not have an effect on farms because existing exemptions under Section 401 for farms are not changing. The Committee will continue testimony next week.
Funding for Clean Water Projects Including Waste and Stormwater Infrastructure
Senate Natural Resource & Energy prioritized a list of water quality projects in anticipation of Vermont receiving federal funds from the American Rescue Plan Act of 2021 (ARPA). Federal officials have not released guidelines on how ARPA funds can be used, but early indications would allow use for water, sewer, and broadband projects. It is likely the Clean Water Fund will receive $100M of ARPA funds over the next five years in lieu of the estimated $60M in sales tax revenues the fund would normally receive during the same time. The FY21-22 Capital Bill, currently in the Senate, includes funding for water and sewer projects and proposals to substitute $10-$15M in general fund dollars for ARPA funds if available.
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
Week 11 of the 2021 Vermont Legislative Session – March 26, 2021
The Vermont General Assembly spent hours upon hours in their virtual chambers passing legislation from the last ten weeks of committee work. Much of the time was spent on priorities like access to contractor registration requirements, childcare, facilitating the expansion of quality broadband access and clean water initiatives. With the infusion of cash on the way from the American Rescue Plan Act (ARPA), some bills that had contemplated the use of one time or unplanned revenue have been able to substitute with ARPA funds. There is a risk associated as the funds have not arrived in Vermont and the guidance for use of the funds has not been published.
Legislation, annually dubbed the Big Bill, also substituted general fund dollars with ARPA funding. The Big Bill, which funds the operation of state government, built a spending plan just under $7 billion. This includes:
This takes the pressure off the FY 22-23 budget bill, and with the use of ARPA funds, should make reconciling the differences from the House & Senate proposals less controversial and should mean that the money committees would not look at tax and fee increases. Time will tell…
H.439 An act relating to making appropriations for the support of government (passed House)
The House passed a $7 billion budget bill that spends General Fund dollars and federal Covid-19 relief dollars to make major investments in infrastructure, economic development, and the state’s pandemic response.
The bill deemed non-controversial was passed on a voice vote and will now be reviewed by the Senate.
S.10 An act relating to extending certain unemployment insurance provisions related to COVID-19
This bill proposes to extend certain provisions providing COVID-19 related unemployment insurance experience-rating relief and provisions allowing individuals who quit employment for certain COVID-19 related reasons to be eligible for unemployment insurance benefits.
Prior to hurricane-like weather and power outages in Montpelier, which caused an abrupt end to the floor session, the Senate Economic Development, Housing and Military Affairs committee presented a compromise amendment which offers benefits enhancements of $38M over a 5-year period and a tax reduction in the first year of $66M. Included in the amendment:
The rate relief, base contribution freeze, and the dependent benefit are all contingent on the UI Fund remaining above or projected to remain above $90M throughout 2021.
The Associated General Contractors hosted an Unemployment Insurance Forum on Thursday to discuss with legislators concerns the business community has with the proposals being considered in S.10. Almost 50 people attended the online forum and a lively debate ensued. The central issue discussed was getting people back to work. The construction industry is desperate to hire people for the upcoming season and believes providing more benefits to unemployed Vermonters will encourage workers to stay home. AGC/VT members urged legislators and the Commissioner of Labor to reinstate the work search requirement and asked them not to add more State benefits on top of all the additional federal benefits currently in play. The Senate will return on Tuesday, March 30, to take up S.10 at 9:30am.
America Rescue Plan Acy of 2021 (ARPA) Update
The Legislative Fiscal Office gave the Legislature a brief on what is to come with the America Rescue Plan of 2021, which was signed by President Biden on March 11th. In short, there is a lot of money coming to Vermonters in multiple different possible faucets and plenty of time to spend the money. Statewide, Vermont could likely see over $3 Billion dollars, $1 billion of those dollars coming straight to Vermonters via tax reductions, aid to businesses, and other individual payments like the previous stimulus checks. This money will differ from the Coronavirus Relief Funds (CRF) dollars in a few ways but most importantly, the availability and the timing to spend the money.
Congressional Call Small Blurb
In a meeting with the Vermont Congressional Delegation, they explained that they have a bill on the floor that will extend the Paycheck Protection Program (PPP) through the end of May. The bill is in the final stages, there are no policy changes within the bill, simply a deadline extension.
Also, the U.S. Small Business Administration is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Starting the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000. The pandemic has lasted longer than originally projected which is the reasoning for the extension of the program and larger loans. Those who have already received EIDL will hear from SBA via email with additional information.
Vermont Lake Champlain Citizen Action Committee
Senate Committees on Agriculture, Natural Resources & Energy, and Appropriations gathered to hear the 2021 Lake Champlain Action Plan presented by the Vermont Citizens Advisory Committee on Lake Champlain.
The report recommends:
The committees use the report to better allocate funds to Clean Water Act projects.
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
The Vermont General Assembly spent hours upon hours in their virtual chambers passing legislation from the last ten weeks of committee work. Much of the time was spent on priorities like access to contractor registration requirements, childcare, facilitating the expansion of quality broadband access and clean water initiatives. With the infusion of cash on the way from the American Rescue Plan Act (ARPA), some bills that had contemplated the use of one time or unplanned revenue have been able to substitute with ARPA funds. There is a risk associated as the funds have not arrived in Vermont and the guidance for use of the funds has not been published.
Legislation, annually dubbed the Big Bill, also substituted general fund dollars with ARPA funding. The Big Bill, which funds the operation of state government, built a spending plan just under $7 billion. This includes:
- $1.3 billion to operate state government
- $50 million of federal money to workforce development
- $150 million for broadband build out
- $80 million to stabilize the state’s higher education system
- $100 million on clean water funding projects over the next five years
- $100 million to upgrade outdated state IT infrastructure
- $150 million to pay an additional payment to the state pension fund debt
- $250 million in federal money to initiatives that would help Vermont “grow into the future”
- $300,000 for the Department of Mental Health
This takes the pressure off the FY 22-23 budget bill, and with the use of ARPA funds, should make reconciling the differences from the House & Senate proposals less controversial and should mean that the money committees would not look at tax and fee increases. Time will tell…
H.439 An act relating to making appropriations for the support of government (passed House)
The House passed a $7 billion budget bill that spends General Fund dollars and federal Covid-19 relief dollars to make major investments in infrastructure, economic development, and the state’s pandemic response.
The bill deemed non-controversial was passed on a voice vote and will now be reviewed by the Senate.
S.10 An act relating to extending certain unemployment insurance provisions related to COVID-19
This bill proposes to extend certain provisions providing COVID-19 related unemployment insurance experience-rating relief and provisions allowing individuals who quit employment for certain COVID-19 related reasons to be eligible for unemployment insurance benefits.
Prior to hurricane-like weather and power outages in Montpelier, which caused an abrupt end to the floor session, the Senate Economic Development, Housing and Military Affairs committee presented a compromise amendment which offers benefits enhancements of $38M over a 5-year period and a tax reduction in the first year of $66M. Included in the amendment:
- Experience rating relief for employers
- Freeze of rate schedule increase and base contribution increases
- Adds a Dependent Benefit of $50 per week for claimants with dependent children under 18 years old for next 5 years and will not begin until extra federal benefits have ended
- Extends provisions passed last session to provide benefits for individuals who quit work for certain COVID-19 related reasons
- Instructs the Department of Labor to reduce UI contributions by $66.5M during the next 10 years
- DOL will study solvency of UI Fund and recommend changes to calculation methods
The rate relief, base contribution freeze, and the dependent benefit are all contingent on the UI Fund remaining above or projected to remain above $90M throughout 2021.
The Associated General Contractors hosted an Unemployment Insurance Forum on Thursday to discuss with legislators concerns the business community has with the proposals being considered in S.10. Almost 50 people attended the online forum and a lively debate ensued. The central issue discussed was getting people back to work. The construction industry is desperate to hire people for the upcoming season and believes providing more benefits to unemployed Vermonters will encourage workers to stay home. AGC/VT members urged legislators and the Commissioner of Labor to reinstate the work search requirement and asked them not to add more State benefits on top of all the additional federal benefits currently in play. The Senate will return on Tuesday, March 30, to take up S.10 at 9:30am.
America Rescue Plan Acy of 2021 (ARPA) Update
The Legislative Fiscal Office gave the Legislature a brief on what is to come with the America Rescue Plan of 2021, which was signed by President Biden on March 11th. In short, there is a lot of money coming to Vermonters in multiple different possible faucets and plenty of time to spend the money. Statewide, Vermont could likely see over $3 Billion dollars, $1 billion of those dollars coming straight to Vermonters via tax reductions, aid to businesses, and other individual payments like the previous stimulus checks. This money will differ from the Coronavirus Relief Funds (CRF) dollars in a few ways but most importantly, the availability and the timing to spend the money.
- Some of this money is already available, the rest will be available sometime in May/June
- State and local funds have until December 2024
- School funds have until September 2023
Congressional Call Small Blurb
In a meeting with the Vermont Congressional Delegation, they explained that they have a bill on the floor that will extend the Paycheck Protection Program (PPP) through the end of May. The bill is in the final stages, there are no policy changes within the bill, simply a deadline extension.
Also, the U.S. Small Business Administration is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Starting the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000. The pandemic has lasted longer than originally projected which is the reasoning for the extension of the program and larger loans. Those who have already received EIDL will hear from SBA via email with additional information.
Vermont Lake Champlain Citizen Action Committee
Senate Committees on Agriculture, Natural Resources & Energy, and Appropriations gathered to hear the 2021 Lake Champlain Action Plan presented by the Vermont Citizens Advisory Committee on Lake Champlain.
The report recommends:
- Significant State funds be allocated to provide technical assistance to communities to better address urban and rural infrastructure water quality improvements
- State must increase and improve public access for non-motorized recreation on Lake Champlain
- State must increase support, grant resources and staffing for aquatic invasive species prevention and control programs
- Dairy farmers need better access to alternative models of agriculture and agriculture innovation
- Memorandum of Understanding between ANR and AAFM is not working. Recommend AAFM continue oversight and compliance but DEC should be handling enforcement.
- State needs to address next generation toxic pollution and increase screening to better respond before emerging pollutants become expensive problems
The committees use the report to better allocate funds to Clean Water Act projects.
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
Week 10 of the 2021 Vermont Legislative Session – March 19, 2021
Legislative Committees rushed through bills and amendments to meet the “crossover” deadline. By mid-week, the fate of several bills became even less clear. An attempt to expand the bottle redemption system stalled in House Ways & Means. However, some components have been included in other legislation that has a chance of making it through to the end. This type of political move generates opportunities for bills to be amended on the floor, creating more uncertainty, and adds the likelihood for long debates by the full House and Senate.
The Vermont Department of Labor proposed to delay the employer unemployment tax hike, expected to occur in July. This has become a contentious bill pitting the business community against the democrat-controlled legislature. The current bill, S.10, not only proposes employer rate relief, but it would increase maximum weekly benefits for unemployment insurance recipients by 20% for one year and permanently adds a $50 per week payment to recipients who have dependent children. The Federal “American Rescue Plan Act of 2021” signed recently, approved the continuation of an additional $300 payment per week to unemployed claimants.
Employers replenish the Unemployment Trust Fund through taxes paid on wages. Vermont’s trust fund was one of the healthiest in the nation at the start of the pandemic with a balance of $500M. One year later the fund has approximately $240M, still healthy considering a year of record claims being filed.
Employers argue postponing the tax hike would be a welcome reprieve for businesses trying desperately to stay afloat and recover from the impact of shutdowns during the pandemic. Many also believe the additional payments are incentivizing individuals to not seek work and they have asked the legislature to reconsider and remove the benefit increase and dependent benefit. The Legislative Joint Fiscal Office and the Department of Labor estimate the dependent benefit will draw approximately $40M from the unemployment trust fund over the next three fiscal years.
Legislators argue that if businesses are going to benefit from rate relief and tax hike delays, workers should benefit too. Senator Michael Sirotkin (D-Chittenden), Chair of the Economic Development, Housing and General Affairs Committee has taken a firm stance that he will only support rate relief as long as there is an increase in benefits for workers. Being unable to hash out an agreement with employers and the Committee, action was delayed until next week.
In addition to the crossover deadline, Legislators are anxious to understand the $1.25 billion relief package from Congress. Vermont use of funds is as follows:
H.315 An act relating to COVID-19 relief and Recovery
This bill proposes to provide COVID-19 relief to Vermont, including working families and small businesses. The bill spends or reserves one-time funds of just under $49 million in general funds and $13 million for new grants and support funding.
Senate Amendment Highlights:
S.112 - An act relating to proposed changes to Act 250
The bill was introduced to the Senate Natural Resources Committee by Senator Collamore, in part, on behalf of the Scott Administration.
DRAFT Committee bill: An act relating to miscellaneous natural resources and development subjects
The Department of Environmental Conservation proposed some technical changes to; Brownfield Program, Salvage Yard Program; Beverage Container Commingling, Clean Water Investment Report; Act 150 Changes; Permit Transfers – Wetlands Determinations – Lake Encroachment Permits, Drinking Water Revolving Fund as well as other technical changes.
H.420 - An act relating to miscellaneous agricultural subjects (passed the House)
The bill makes multiple miscellaneous amendments to agricultural subjects. The bill would repeal the sunset provision for personal and itinerant slaughter, clarify the definition of “livestock dealer,” and amend eligibility requirements for the veterinarian educational loan repayment program.
The bill will:
This bill establishes the Agricultural Innovation Board to replace the Pesticide Advisory Council. The Agricultural Innovation Board would include 14 members and would make recommendations to the Governor and the General Assembly for prioritizing and coordinating the implementation of the recommendations of the Soil Health and Payment for Ecosystem Services Working Group, the Vermont Climate Council, and others they deem important. The Agricultural Innovation Board would also recommend practices that reduce the use of and exposure to pesticides and synthetic fertilizers to protect soil biology, human health, and environmental health.
In addition, the Board would advise the Executive Branch and the General Assembly with respect to legislation concerning the use of agricultural pest control measures and integrated pest management.
The bill, at request, includes a dairy producer as a member of the Board. The bill was reviewed by House Appropriations and will be up for action next week.
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
Legislative Committees rushed through bills and amendments to meet the “crossover” deadline. By mid-week, the fate of several bills became even less clear. An attempt to expand the bottle redemption system stalled in House Ways & Means. However, some components have been included in other legislation that has a chance of making it through to the end. This type of political move generates opportunities for bills to be amended on the floor, creating more uncertainty, and adds the likelihood for long debates by the full House and Senate.
The Vermont Department of Labor proposed to delay the employer unemployment tax hike, expected to occur in July. This has become a contentious bill pitting the business community against the democrat-controlled legislature. The current bill, S.10, not only proposes employer rate relief, but it would increase maximum weekly benefits for unemployment insurance recipients by 20% for one year and permanently adds a $50 per week payment to recipients who have dependent children. The Federal “American Rescue Plan Act of 2021” signed recently, approved the continuation of an additional $300 payment per week to unemployed claimants.
Employers replenish the Unemployment Trust Fund through taxes paid on wages. Vermont’s trust fund was one of the healthiest in the nation at the start of the pandemic with a balance of $500M. One year later the fund has approximately $240M, still healthy considering a year of record claims being filed.
Employers argue postponing the tax hike would be a welcome reprieve for businesses trying desperately to stay afloat and recover from the impact of shutdowns during the pandemic. Many also believe the additional payments are incentivizing individuals to not seek work and they have asked the legislature to reconsider and remove the benefit increase and dependent benefit. The Legislative Joint Fiscal Office and the Department of Labor estimate the dependent benefit will draw approximately $40M from the unemployment trust fund over the next three fiscal years.
Legislators argue that if businesses are going to benefit from rate relief and tax hike delays, workers should benefit too. Senator Michael Sirotkin (D-Chittenden), Chair of the Economic Development, Housing and General Affairs Committee has taken a firm stance that he will only support rate relief as long as there is an increase in benefits for workers. Being unable to hash out an agreement with employers and the Committee, action was delayed until next week.
In addition to the crossover deadline, Legislators are anxious to understand the $1.25 billion relief package from Congress. Vermont use of funds is as follows:
- Respond to the COVID-19 public health emergency and cover costs related to it, including assistance to households, small businesses, non-profits, and affected industries such as tourism, travel, and hospitality
- Provide premium pay (up to $13 per hour in addition to base pay, up to a $25,000 cap) to state, territory, or tribal government workers who perform essential work during the public health emergency, or provide grants to employers with employees who perform essential work (defined as work needed to maintain continuity of operations of critical infrastructure and other sectors designated by the governor as critical to protect the health and well-being of residents)
- Provide government services to the extent of lost revenue from the public health emergency, relative to revenues in the fiscal year prior to the pandemic
- Make investments in water, sewer, or broadband infrastructure
H.315 An act relating to COVID-19 relief and Recovery
This bill proposes to provide COVID-19 relief to Vermont, including working families and small businesses. The bill spends or reserves one-time funds of just under $49 million in general funds and $13 million for new grants and support funding.
Senate Amendment Highlights:
- Economic Recovery Grants of $10 million general funds for Vermont businesses that experienced an economic loss due to the pandemic and did not meet the eligibility criteria for federal programs.
- $1,458,000 CRF to the Vermont Food Bank to reimburse the costs of the Vermont Farmers to Families Food Box Program
- $3,250,000 general funds to the Agency of Agriculture, Food and Markets for the Working Lands Program to allow early funding of projects, including money for slaughterhouse and processing and soil health
- $24 million general funds to the Agency of Natural Resources of which
- $14 million goes to DEC Brownfield Remediation
- $5 million is for the Department of Forests, Parks and Recreation for the Vermont Outdoor Recreation Collaborative (VOREC)
- $5 million is for the Central Office for investments to improve recreational infrastructure and access on State lands and Vermont’s trail network
- $700,000 for new Americans, refugees, and immigrants
- $1.3 million between general funds and CRF to the Department for Children and Families for families participating in the Reach Up program,
- $15 million reallocated CRF to continue a school indoor air quality grant program with Efficiency Vermont
- Reserves $20 million general funds to support future legislative action regarding pension funding initiatives
- $1,800,000 to Department of Public Service for the expansion of Broadband
- Over $5.8 million in mental health efforts
S.112 - An act relating to proposed changes to Act 250
The bill was introduced to the Senate Natural Resources Committee by Senator Collamore, in part, on behalf of the Scott Administration.
- Changing the Natural Resources Board (NRB) to a professional board with three full-time members who will hear major permit applications
- Give NRB authority to revoke Act 250 permits and may delegate authority to the District Commissions over determining the type of application and the ability to issue minors and amendments
- Adding ethical standards for the NRB and District Commissions that bar ex parte communications
- Changing the path of permit appeals by removing jurisdiction of the Environmental Division of the Superior Court, with appeals of the permit decisions going straight to the Supreme Court
- Adding a preapplication scoping process for large projects
- Creating an enhanced designation process for village centers
- Exempting development and subdivisions located within designated downtowns, enhanced village centers, and neighborhood development areas from Act 250
- Municipal panels will transfer Act 250 permit conditions to municipal land use permits
- Allowing the NRB to release projects from Act 250 jurisdiction if the property would no longer trigger Act 250 jurisdiction
- Excluding previously disturbed areas from the definition of development if they are transportation facilities
- Updating the water, transportation, and energy conservation criteria
- Adding a new criterion for climate adaptation and requiring rules to address how to meet the new criterion
- Creating a new permit to address impacts on fish and wildlife habitat. The new permit would be required for applicants of an Act 250 permit. The permit would be issued by the Commissioner of Fish and Wildlife. The permit fee would be $150.00 plus the cost of any Department resources spent on the permit.
- Specifying when permit conditions may be added to permits for forest-based enterprises
- Exempting from the definition of development accessory on-farm businesses constructed on less than one acre
- Requiring a municipality to respond to a request for information within 90 days.
The Department of Environmental Conservation proposed some technical changes to; Brownfield Program, Salvage Yard Program; Beverage Container Commingling, Clean Water Investment Report; Act 150 Changes; Permit Transfers – Wetlands Determinations – Lake Encroachment Permits, Drinking Water Revolving Fund as well as other technical changes.
- Increase bottle redemption handling fee from $0.04 to $0.05
- Expands authority for Brownfields that would provide a municipality with the same protection from liability as when involuntary action is taken. Liability has caused many Vermont Brownfields to remain contaminated.
- Removes the educational requirement for salvage yards
- Eliminates duplicate/outdated reporting requirements and reporting on completed initiatives for Clean Water
- Revises Act 150 (Underground storage tanks) so that the definition of administrative amendment includes a transfer of ownership if it is authorized by rule
- Moves wetland determinations notice requirements from Type 2 to Type 4 so that determinations can be noticed for a minimum of 14 days
- Make the lake encroachment permit effective date the same as other permits which become effective as soon as a permit is signed and issued
- Act 250
- Shifting the obligation to submit notice of a new Act 250 permit application from the applicant to the District Commission
- Extend existing deadlines under 11 days. This change (along with similar changes to the Act 250 Rules) will convert all deadlines to "calendar days" as opposed to "business days."
- Change existing statutory provision, regarding application requirements, so that it will be consistent with current practice and with future practice once the online application is rolled out
- Change/simplify language to require that septage transporters must pay $.01 per gallon of septage and portable toilet waste managed in Vermont
H.420 - An act relating to miscellaneous agricultural subjects (passed the House)
The bill makes multiple miscellaneous amendments to agricultural subjects. The bill would repeal the sunset provision for personal and itinerant slaughter, clarify the definition of “livestock dealer,” and amend eligibility requirements for the veterinarian educational loan repayment program.
The bill will:
- clarify the jurisdiction of the Agency of Agriculture, Food and Markets over weights and measures
- extend the payment for ecosystem services and soil health working group for one year
- clarify the agricultural records that are exempt from public inspection
- amend the hemp program to align it with evolving federal law
- update the Agriculture Annex to the State Emergency Operations Plan to improve the capacity of the State to maintain a sufficient food supply during times of emergency or other food insecurity
This bill establishes the Agricultural Innovation Board to replace the Pesticide Advisory Council. The Agricultural Innovation Board would include 14 members and would make recommendations to the Governor and the General Assembly for prioritizing and coordinating the implementation of the recommendations of the Soil Health and Payment for Ecosystem Services Working Group, the Vermont Climate Council, and others they deem important. The Agricultural Innovation Board would also recommend practices that reduce the use of and exposure to pesticides and synthetic fertilizers to protect soil biology, human health, and environmental health.
In addition, the Board would advise the Executive Branch and the General Assembly with respect to legislation concerning the use of agricultural pest control measures and integrated pest management.
The bill, at request, includes a dairy producer as a member of the Board. The bill was reviewed by House Appropriations and will be up for action next week.
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
Week 9 of the 2021 Vermont Legislative Session – March 12, 2021
Legislative Leadership is contemplating a timely adjournment for May 10th. The goal would be to finish the regular session and then begin reviewing the $1.3 billion relief package from Congress. This package will be utilized to respond to the pandemic and its economic impacts. Vermont will have until December 2024 to spend the money, a stark comparison to the rushed approach that the last stimulus package required, allowing just 7 months.
The package, dubbed the American Rescue Plan, will provide many Vermonters with $1,400 stimulus checks, child tax credits, expanded unemployment benefits, additional vaccine distribution, healthcare subsidies, and financial help to restaurants, nutrition and food stamp programs, housing assistance and more. More specifically the bill provides:
Next week, in theory, all bills must be passed out of committee and headed to either the House or Senate floor for debate and approval. In typical fashion, although many bills will not make the looming crossover deadline, folks will remain on alert for language from those bills to be inserted into similar themed bills that likely will make it to the floor for a vote. In a virtual Legislative process, this makes it difficult to review and respond to proposals. The Legislature can pass almost anything they desire which could once again put Governor Phil Scott in a position to use his veto power. However, hey may find himself powerless under the weight of the democratic majority in both Chambers.
As expected, during his weekly press conference, Governor Scott announced that on Monday he will be extending the state of emergency thru April 15th.
21-0900 An act relating to establishing the Agricultural Innovation Board
The House Committee on Agriculture and Forestry took extensive testimony this week regarding language surrounding the Agriculture Innovation Board. This bill would create a board that would replace the Pesticide Advisory Council, as well as take on more roles in the agriculture world. There would be more seats added to the Board with more diversity from the agriculture sector. The most recent draft of the bill lays out a plan for a board to meet four times a year to do the following:
H.88 An act relating to certification of agricultural use for purposes of the use value appraisal program
This bill makes changes to how property owners certify the agricultural use of land or buildings. The bill requires the Department of Taxes and the Agency of Agriculture to conduct a study on the possibility of using an online portal for the purposes of current use and to report findings to the General Assembly.
The bill passed the House without controversy and was referred to the Senate Agriculture Committee.
S.20 An act relating to restrictions on perfluoroalkyl and polyfluoroalkyl substances and other chemicals of concern in consumer products (Strike-all amendment)
The Senate Health & Welfare Committee heard testimony from numerous witnesses this week on S.20. Casella Waste Systems testified in support of the bill and stated over the past five years or so, the majority of materials contain PFAS at a variety of different levels. In 2019, Casella prepared and submitted a PFAS Waste Source Testing Report and highlighted that approximately 95% of the tested waste materials contained detections of PFAS;
Solid waste management facilities and wastewater treatment facilities are tasked with managing the solid and liquid waste streams that are directed to them. Restricting the use of PFAS by the upstream manufacturers, and encouraging the development of safe, effective alternatives to these compounds should be among our highest priorities and most effective solution.
The Committee passed the amended bill by a vote of 5-0.
The Commissioner of Health will adopt any rules necessary for the implementation, administration, and enforcement of S.20.
The bill would take effect on July 1, 2021, with the exception of class B firefighting foam and chemicals of high concern to children which would take effect on July 1, 2022 and food packaging, rugs and carpets, and ski wax will take effect on July 1, 2023.
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
Legislative Leadership is contemplating a timely adjournment for May 10th. The goal would be to finish the regular session and then begin reviewing the $1.3 billion relief package from Congress. This package will be utilized to respond to the pandemic and its economic impacts. Vermont will have until December 2024 to spend the money, a stark comparison to the rushed approach that the last stimulus package required, allowing just 7 months.
The package, dubbed the American Rescue Plan, will provide many Vermonters with $1,400 stimulus checks, child tax credits, expanded unemployment benefits, additional vaccine distribution, healthcare subsidies, and financial help to restaurants, nutrition and food stamp programs, housing assistance and more. More specifically the bill provides:
- $293 million for Vermont’s K-12 system
- $152 million for rental assistance
- $65 million for colleges and universities
- $47 million for childcare subsidies and support for childcare providers
- $57 million to support municipalities
Next week, in theory, all bills must be passed out of committee and headed to either the House or Senate floor for debate and approval. In typical fashion, although many bills will not make the looming crossover deadline, folks will remain on alert for language from those bills to be inserted into similar themed bills that likely will make it to the floor for a vote. In a virtual Legislative process, this makes it difficult to review and respond to proposals. The Legislature can pass almost anything they desire which could once again put Governor Phil Scott in a position to use his veto power. However, hey may find himself powerless under the weight of the democratic majority in both Chambers.
As expected, during his weekly press conference, Governor Scott announced that on Monday he will be extending the state of emergency thru April 15th.
21-0900 An act relating to establishing the Agricultural Innovation Board
The House Committee on Agriculture and Forestry took extensive testimony this week regarding language surrounding the Agriculture Innovation Board. This bill would create a board that would replace the Pesticide Advisory Council, as well as take on more roles in the agriculture world. There would be more seats added to the Board with more diversity from the agriculture sector. The most recent draft of the bill lays out a plan for a board to meet four times a year to do the following:
- prioritize and coordinate the implementation of the recommendations of the Soil Health and Payment for Ecosystem Services Working Group, the Vermont Climate Council;
- recommend practices that reduce the use of and exposure to pesticides and synthetic fertilizers in order to protect soil biology, human health, and environmental health;
- advise the Executive Branch and the General Assembly with respect to legislation concerning the use of agricultural pest control measures and integrated pest management.
H.88 An act relating to certification of agricultural use for purposes of the use value appraisal program
This bill makes changes to how property owners certify the agricultural use of land or buildings. The bill requires the Department of Taxes and the Agency of Agriculture to conduct a study on the possibility of using an online portal for the purposes of current use and to report findings to the General Assembly.
The bill passed the House without controversy and was referred to the Senate Agriculture Committee.
S.20 An act relating to restrictions on perfluoroalkyl and polyfluoroalkyl substances and other chemicals of concern in consumer products (Strike-all amendment)
The Senate Health & Welfare Committee heard testimony from numerous witnesses this week on S.20. Casella Waste Systems testified in support of the bill and stated over the past five years or so, the majority of materials contain PFAS at a variety of different levels. In 2019, Casella prepared and submitted a PFAS Waste Source Testing Report and highlighted that approximately 95% of the tested waste materials contained detections of PFAS;
- the highest levels of PFAS were detected in consumer products, primarily bulky items (furniture), textiles, and carpets;
- no single class of products or single source of waste that contained the majority of the PFAS – the detections were distributed widely among all of the sources of waste in our society.
Solid waste management facilities and wastewater treatment facilities are tasked with managing the solid and liquid waste streams that are directed to them. Restricting the use of PFAS by the upstream manufacturers, and encouraging the development of safe, effective alternatives to these compounds should be among our highest priorities and most effective solution.
The Committee passed the amended bill by a vote of 5-0.
- impose restrictions on the use, manufacture, sale, and distribution of class B firefighting foam containing perfluoroalkyl and polyfluoroalkyl substances
- impose restrictions on the manufacture, sale, and distribution of food packaging to which perfluoroalkyl and polyfluoroalkyl substances, phthalates, or bisphenols have been added
- impose restrictions on the manufacture, sale, and distribution of residential rugs, carpets, and aftermarket stain and water resistance treatments to which perfluoroalkyl and polyfluoroalkyl substances have been added
- impose restrictions on the manufacture, sale, and distribution of ski wax
- include perfluoroalkyl and polyfluoroalkyl substances on the list of chemicals of high concern to children.
The Commissioner of Health will adopt any rules necessary for the implementation, administration, and enforcement of S.20.
The bill would take effect on July 1, 2021, with the exception of class B firefighting foam and chemicals of high concern to children which would take effect on July 1, 2022 and food packaging, rugs and carpets, and ski wax will take effect on July 1, 2023.
Cheri L. L’Esperance
William Shouldice & Associates LLC
802.839.0006
www.wsavt.com
Week 6 of the Vermont Legislative Session-February 15, 2019
he Senate is a little slower than expected on passing their bill (S54) to regulate a cannabis market. A prediction by many was a “tax and regulate” cannabis market, increasing the minimum wage and water quality funding would sail through within the first month of the session. What is different this year? In most cases, circumstances have changed, legislators are new or are serving on a different committee, and with the power to legislate almost anything, time is less of an issue this session.
The Senate wrangled with whether to allow medical marijuana dispensaries a head start to sell and tax marijuana to the public. Sen. Richard Sears, the lead proponent for several years, is not interested in giving any one sector a leg up or delaying full implementation. The start-up without funding has created a bit of a quandary in terms of public safety, education, licensing, and quickly controlling this new market in Vermont. Throw in the issue that no banking institution can set up accounts for these new businesses apart from cash deposits. So, the financial regulation also presents a complexity that needs to be addressed as cash is rarely used in the retail market today.
Just a couple weeks ago the new market for Association Health Plans (AHP) looked like it wouldn’t survive the session say nothing about 2020 enrollment. The Administration unveiled a little more concern over the current issues within the Vermont Health Insurance Exchange, the small group market and the larger issue that the under 30 age group has a 10% uninsured rate. Vermont is only one of two states that doesn’t allow for age rating. The Administration is asking to work cooperatively with the Legislature on ways to offer more financial assistance for health care consumers, and they’re discussing development of a cheaper insurance plan that would generate savings. Little discussion around “under-insurance” has occurred, while it’s known that there is a problem, inaction only compounds the problem each year as premiums increase. Without fully understanding the issues within the Vermont health insurance market, Legislators may do more harm than good. So, is the AHP market safe for another year? Time will tell but perhaps Legislators, who know little about this market, will slow down and look at Vermont holistically before making assumptions.
A welcome and often undervalued discussion around work force development and technical education has become a priority in both the House and the Senate. Another issue where inaction compounds the problem every year, as Vermont has the oldest population in the country. Young, talented Vermonters who are being pushed into a traditional four-year curriculum often aren’t suited for either the educational setting or a curriculum that leads to a professional career. This is one area where the Legislative and Administrative Branch can work together. What does the plan look like? The Governor has budged $200,000 for start-up funding to explore the vision and put together a plan for regional tech-ed facilities that would be located around the state. The unanswered questions that need to be worked out over the next year would be; how to pay the program, how to satisfy accrediting standards, and what could be accomplished within the existing tech-ed infrastructure.
REGULATION
H.107 An act relating to paid family leave
This bill proposes to create a Paid Family Leave Insurance Program within the Departments of Labor and Taxes that will be funded by contributions from employers and employees. The bill also proposes to amend Vermont’s existing Parental and Family Leave Act to make it applicable to additional employees and to clarify certain provisions.
The House Committee on General, Housing, and Military Affairs voted out the bill by a vote of 8-1-1.
The following provisions are included in the bill:
- Paid Family Leave participation applies to all Vermont employers - no exemptions
- Family Leave Insurance will be funded by a .93% payroll tax; 1/2 paid by employee, 1/2 paid by employer
- Qualifying employees may take up to 12 weeks paid leave during a 12-month period for their own medical leave, maternity/paternity leave, or to care for a qualifying family member.
- Qualifying employees may take up to 2 weeks paid leave for bereavement
- Employees will receive 100% wage replacement up to double that of the livable wage in Vermont
- Employees who earn more than $150,000/year are exempt from program
- Amends the current Unpaid Family Leave program to include employers with 10 or more employees, instead of the current 15 or more employees
S.23 Minimum wage bill passes Senate Economic Development Committee
The Senate Economic Development, Housing and General Affairs Committee finalized S.23, a bill to increase the minimum wage to $15.00 by 2024. Current law would increase the minimum wage to $12.04 by 2024. The vote along party lines was 4-1, Senator Randy Brock (R-Franklin District) opposed.
Below is the proposed path to increase to $15.00:
2020 - $11.50
2021 - $12.25
2022 - $13.10
2023 - $14.05
2024 - $15.00
The bill carves out secondary school students and those under 18 years of age. The bill also includes a study to consider adjustments for inflation, due to the Legislature by January 15, 2023.
The report shall:
(1) identify and examine mechanisms that other jurisdictions use to index their minimum wages to inflation and the potential benefits and disadvantages of each mechanism; and
(2) identify and examine any alternative mechanisms to index the minimum wage to inflation, including alternative measures of inflation, and the potential benefits and disadvantages of each mechanism.
Another study included looking at “tipped” wage employees and students. The bill now heads to the Appropriations Committee for further consideration.
ENVIRONMENT & WATER QUALITY
S.96 Establishing a Clean Water Assessment to fund State water quality programs
This bill proposes to establish a Clean Water Assessment on all parcels in the State. Monies collected under the Clean Water Assessment would be deposited in the Clean Water Fund to fund water quality improvement projects in the State.
The Senate Natural Resources & Energy will try to close the $20M funding gap for clean water initiatives with existing tax/fee collection systems to reduce implementation costs and keep more dollars for clean water projects. Additional Funding possibilities discussed:
- Per Parcel Fee (as suggested in S.96) - $40/year per parcel
- Funds from the Estate Tax - approx. $8M/year
- Property Transfer Tax Surcharge Increase - Clean Water currently received $4M/year
- Impervious Surface fee
- Rooms & Meals Tax Surcharge
This bill will also create a Clean Water Board to administer the funds and oversee projects. Several environmental groups have asked the committee to consider the creation of regional clean water utilities to oversee the funds and projects.
The Committee will continue work next week prior to sending the bill to the money committees for consideration.
AGRICULTURE
Vermont Dairy Producers Alliance (VDPA) Requests expansion of cell service
The Alliance provided an overview of current agricultural practices, efforts, and projects taking aim at improving water quality. The Alliance expressed the need for reliable cell service to be able to map and plant, manage manure injection and soil samples, and ensure not only that time and resources aren't wasted but that the soil gets the nutrients it need to produce good crops. This will limit the amount of disruption of soils and limit phosphorus run-off, this is referred to as "Precision Agriculture". The cost of new technology as well as the need for cell service and funding are current barriers.
The Alliance requested that the House Energy & Technology work to address better cell service through expansion of towers or remote towers.
WETLANDS
The House Agriculture Committee heard clarifying testimony from Laura Lapierre, Agency of Natural Resources. Under the existing statute the statutory exemption is not elaborated on. However, in “rule” the exemption applies to areas in “ordinary rotation”. This is narrowly defined as growing food or crops. Construction of a building in a wetland is not growing food or crops.
The current wetland drafts under consideration clarifies and would codify this in law. ANR looks at the activity within a wetland not the percentage of impact. The issue of ordinary rotation is dealt with on a case by case basis but use a 5-year time period as a rule.
The committee has an issue with the need to allow and limit fees to install an access road which is better than not having an access road. Water quality projects are a big part of this, and farmers are feeling penalized for doing the right thing. However, the 5,000 sq. ft threshold for “non-reporting” and paying fees in most cases will still need to be evaluated by ANR.
The Committee will likely be looking at the 5,000 sq. ft trigger as well as fees and try to think of ways to incentivize rather than penalize. Click here for the Current Wetland Rule Farming Exemption, and here for the Landowner’s Guide to Wetlands.
Tile Drainage
House Committee on Agriculture & Forestry heard from Jeff Carter, UVM Extension and Laura DiPietro, Agency of Ag on the subsurface Tile Drain Sampling Projects who provided a report from data collected from 2018. The samples tested were for Total Phosphorus, Dissolved Phosphorus, Nitrates, Turbidity, and instantaneous flow. With 1 year of sampling, there were 408 samples from 136 sampling times collected.
The initial findings showed:
- Majority of values hover in the 20‐40 ug/L (ppb) range during non‐storm or thawing events.
- Nitrates: appears to be a clear connection to soil type and N (which we knew). Sand always has highest values while clay is always extremely low values.
- Clay sites most likely have highest TP and DP values because of particle size and shrink‐swell.
Both agreed more research needs to be done in order to fully understand the potential benefits, or harm, from tile drainage. Laura stated, there is not great science on a lot of this stuff. If you want to declare something good, you can find something to support it. If you want to declare something bad, you can find something to support it. They acknowledged that research is tricky, and they are getting mixed messages – you don’t write new rules for something that you don’t have answers to. Laura suggested they would need 5 years to really understand the science. “There is a lot going on and we are dedicated to looking at it and we will evolve.”
The committee heard from the Miner Institute on the three years of data tracking phosphorus and nitrogen through tile drains and without. The conclusions drawn from their work:
- Phosphorus losses driven by surface runoff events
- Nitrogen losses exported primarily through tile flow
- Majority of losses occur during non-growing season and from small number of events
- Promote/develop BMPs that address these high-risk periods
- Drainage water management
- Cover crops
- Tile drainage may reduce P export from snowmelt-driven runoff events
- Nutrient management is key:
- Maintaining fields at agronomically optimum phosphorus levels
- Avoiding nutrient applications prior to high risk events
Cheri L. L'Esperance
