This story, by Report for America corps member Carly Berlin, was produced through a partnership between VTDigger and Vermont Public.
The Vermont House voted to partially repeal Act 181 on Thursday, marking a reversal on land-use policy that would have been difficult to imagine earlier this spring. The pivot comes after the 2024 land-use law faced vehement blowback from rural landowners and local officials.
Lawmakers learned that the conservation measures they enacted in Act 181 “were alienating rural landowners and were not the right tool for the job,” Rep. Amy Sheldon, D-Middlebury, chair of the House Environment committee, told her colleagues on the House floor ahead of a vote on S.325, lawmakers’ vehicle to make changes to Act 181.
“It became apparent that it was time to step back and reconsider how to engage Vermonters in addressing the impacts of incremental fragmentation of our forests and farmlands,” Sheldon said.
Leadership in the Democrat-controlled House had already signaled plans last month to roll back the most contentious portions of Act 181 — the “road rule” and the conservation-focused “Tier 3.” The move was a dramatic about-face for some of the architects of the legislation, including Sheldon, who told Vermont Public/VTDigger in late March that she was not open to rolling back elements of the law, saying that some of the arguments raised by opponents were overstated and misguided.
Though those major decision points were all but settled heading into this week’s votes, House members found plenty to debate in the details, resulting in an hours-long floor session Wednesday before ultimately giving S.325 unanimous approval.
Much of that debate centered on whether lawmakers ought to grant permitting exemptions to “accessory on-farm businesses,” like education-based ventures or social events that take place on farm properties.
Rep. Greg Burtt, R-Cabot, brought forward an amendment to grant such exemptions from Act 250 scrutiny, arguing that these business ventures are critical revenue streams for farmers.
“This amendment makes it easier for Vermonters in every corner of the state, including our rural towns and counties, to responsibly grow their community, support economic development, and keep and attract working families,” Burtt said.
But Democrats like Sheldon countered that lawmakers ought to wait for a forthcoming study from the board that oversees Act 250 before changing the law. Large concerts and wedding venues can be disruptive to neighbors, she said. Yet in a ding to Democratic leadership, a slim majority of House members sided with Burtt and approved the amendment.
Act 181 as a whole is a transformation of Act 250, Vermont’s landmark development-review policy.
The Democratic-controlled Legislature passed the law over Republican Gov. Phil Scott’s objection; Scott argued the legislation amounted to a “conservation bill” that did little to boost housing in rural areas.
Act 181 sought to ease regulations in already-developed areas — “Tier 1” zones — to speed up housing construction amid the state’s acute home shortage. At the same time, Act 181 put in place a new “road rule” in much of the state — “Tier 2” areas — that would require a permit for private road construction longer than 800 feet, a measure meant to cut back on the fragmentation of forest blocks. Proposed “Tier 3” areas would bolster regulations over particularly sensitive ecosystems, like headwater streams and habitat connectors.
The House voted Thursday to scrap the road rule and the Tier 3 measures, which rural landowners had argued would infringe on private property rights and add costs. S.325 now includes a public engagement plan to consider how to protect natural resources in Vermont going forward.
In the Senate, which previously favored delaying rather than repealing parts of Act 181, leaders say they’re now ready to go along with the repeal advanced by the House.
“At this point, I feel fine about getting rid of the road rule and the Tier 3 provisions,” said Sen. Anne Watson, D/P-Washington, chair of the Senate Natural Resources and Energy committee.
Democratic leaders’ pivot on Act 181 comes in the leadup to election season. During the last election cycle, voters’ concerns about the costliness of the new clean heat standard helped fuel a wave of Republican victories in the House and Senate.
The Act 181 debate has been animated by a similar push-and-pull between environmental goals and affordability.
Vermont Public’s Peter Hirschfeld contributed reporting.
