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No. 130. An act relating to testing of schools in Vermont for
polychlorinated biphenyls.
                                     (H.542)
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 2021 Acts and Resolves No. 74, Sec. E.709.1, as amended by 2022
Acts and Resolves No. 166, Sec. 8, and 2023 Acts and Resolves No. 78, Sec.
C.111, is further amended to read:
  Sec. E.709.1 ENVIRONMENTAL CONTINGENCY FUND;
                POLYCHLORINATED BIPHENYLS (PCBs) TESTING
                IN SCHOOLS
  (a) Notwithstanding 10 V.S.A. § 1283, of the funds transferred in
Sec. D.101(a) of this act to the Environmental Contingency Fund, the
Department of Environmental Conservation, in consultation with the
Department of Health and the Agency of Education, shall use up to $4,500,000
to complete air indoor quality testing for Polychlorinated Biphenyls (PCBs) in
public schools and approved and recognized independent schools that were
constructed or renovated before 1980. All schools subject to this subsection
shall test for PCBs on or before July 1, 2027 August 1, 2035.
Sec. 2. 10 V.S.A. § 6618a is added to read:
§ 6618a. SCHOOL POLYCHLORINATED BIPHENYL PROGRAM FUND
  (a) There is created the School Polychlorinated Biphenyl Program Fund to
be administered by the Secretary of Natural Resources to provide funding for
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the investigation, mitigation, and remediation of polychlorinated biphenyls
(PCBs) at schools in Vermont. The Fund shall consist of:
      (1) Reimbursements from a school for work related to a grant issued by
the State for PCB investigation, mitigation, and remediation when that school
recovers money from litigation or other awards. The reimbursement shall be
limited to the amount of the grant awarded to the school or the amount of the
recovery, whichever is less.
      (2) Any litigation recovery by the State for the costs of addressing PCB
contamination in schools, less attorney’s fees and costs.
      (3) Monies from time to time transferred to the Fund by the General
Assembly.
      (4) Other gifts, donations, or other monies received from any source,
public or private, dedicated for deposit into the Fund and approved by the
Secretary of Administration.
   (b)(1) The Secretary of Natural Resources shall administer a program to
issue grants to school districts to pay the costs, to the extent funds are
available, of the following activities in order of the priority listed:
          (A)(i) PCB investigations that are a part of a facilities master plan; or
             (ii) indoor air quality testing of a school initiated voluntarily by a
school district, provided that the school district notified the Secretary of
Natural Resources of the testing and the school district conducts the testing
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according to the Department of Environmental Conservation’s standards for
testing;
            (B) the development of PCB management plans;
            (C) the costs of mitigation when results exceed the immediate action
level;
            (D) the costs of implementing any approved corrective action plan
when, after mitigation efforts, the concentrations in the school exceed the
immediate action level; and
            (E) the costs of implementing a corrective action plan as a part of a
school construction project.
         (2) To the extent that funds are available, grants to school districts that
are required to conduct investigation, mitigation, or remediation of PCB
contamination in a school after Agency of Natural Resources testing shall be in
an amount sufficient to pay for 100 percent of the costs at the school of
investigation, remediation, or removal required by the Agency of Natural
Resources Investigation and Remediation of Contaminated Properties Rule.
   (c) Notwithstanding any contrary provisions of 32 V.S.A. chapter 7,
subchapter 5, unexpended balances and interest earned by the Fund shall be
retained in the Fund from year to year.
   (d) If a school district in the State recovers money from litigation or other
award for work covered under a grant issued under this section, the school
district shall reimburse the State the amount of the recovery or the amount of
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the grant awarded to the school district under subsection (b) of this section,
whichever amount is less.
   (e) In addition to any other remedy, the State may recover from a
manufacturer of PCBs monies expended or awarded by the State for PCB
investigation, testing, assessment, remediation, or removal of PCBs in a school
above the relevant action level.
Sec. 3. 16 V.S.A. § 3445 is amended to read:
§ 3445. APPROVAL AND FUNDING OF SCHOOL CONSTRUCTION
          PROJECTS
   (a) Construction aid.
      (1) Preliminary application for construction aid. A school district
eligible for assistance under section 3447 of this title that intends to construct
or purchase a new school, or make extensive additions or alterations to its
existing school, and desires to avail itself of State school construction aid shall
submit a written preliminary application to the Secretary. A preliminary
application shall include information required by the Agency by rule and shall
specify the need for and purpose of the project.
      (2) Approval of preliminary application.
          (A) When reviewing a preliminary application for approval, the
Secretary shall consider:
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            (i) regional educational opportunities and needs, including school
building capacities across school district boundaries, and available
infrastructure in neighboring communities;
            (ii) economic efficiencies;
            (iii) the suitability of an existing school building to continue to
meet educational needs; and
            (iv) statewide educational initiatives.
          (B) The Secretary may approve a preliminary application if:
            (i)(I) the project or part of the project fulfills a need occasioned
by:
                   (aa) conditions that threaten the health or safety of students
or employees;
                   (bb) facilities that are inadequate to provide programs
required by State or federal law or regulation;
                   (cc) excessive energy use resulting from the design of a
building or reliance on fossil fuels or electric space heat; or
                   (dd) deterioration of an existing building; or
                (II) the project results in consolidation of two or more school
buildings and will serve the educational needs of students in a more cost-
effective and educationally appropriate manner as compared to individual
projects constructed separately;
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             (ii) the need addressed by the project cannot reasonably be met by
another means;
             (iii) the proposed type, kind, quality, size, and estimated cost of
the project are suitable for the proposed curriculum and meet all legal
standards;
             (iv) the applicant achieves the level of “proficiency” in the school
district quality standards regarding facilities management adopted by rule by
the Agency; and
             (v) the applicant has completed a facilities master planning
process that:
                (I) engages robust community involvement;
                (II) considers regional solutions;
                (III) evaluates environmental contaminants; and
                (IV) produces a facilities master plan that unites the applicant’s
vision statement, educational needs, enrollment projections, renovation needs,
and construction projects; and
             (vi) if the applicant school district is applying for construction aid
for a school building that was constructed or renovated before 1980, the
applicant has completed indoor air quality testing for polychlorinated
biphenyls that was conducted according to the Department of Environmental
Conservation’s standards for testing.
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      (3) Priorities. Following approval of a preliminary application and
provided that the district has voted funds or authorized a bond for the total
estimated cost of a project, the Agency, with the advice of the State Aid for
School Construction Advisory Board, shall assign points to the project as
prescribed by rule of the Agency so that the project can be placed on a priority
list based on the number of points received.
                                      ***
Sec. 4. AGENCY OF NATURAL RESOURCES REPORT ON FUNDING
          FOR PCB TESTING OF SCHOOLS
   On or before January 15, 2027, the Agency of Natural Resources, in
consultation with the Agency of Education, shall submit to the Senate
Committee on Education and the House Committee on Education:
      (1) an estimate of the additional cost to the State to complete testing,
mitigation, and remediation for polychlorinated biphenyls at public schools
and approved and recognized independent schools that were constructed or
renovated before 1980; and
      (2) a plan to fund the costs estimated necessary to complete testing,
mitigation, and remediation.
Sec. 5. REPEAL
   2023 Acts and Resolves No. 78, Sec. C.112(b)(1) and (2) (State funding of
grants for investigation, remediation, and removal of PCB contamination at a
school) is repealed.
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Sec. 6. EFFECTIVE DATES
   This act shall take effect on passage, except that Sec. 3 (approval and
funding of school construction projects) shall take effect on July 2, 2026.
Date Governor signed bill: June 15, 2026
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