H 940

No. 97  Page 1 of 10
2026
No. 97. An act relating to miscellaneous public utility subjects.
                                     (H.940)
It is hereby enacted by the General Assembly of the State of Vermont:
                        * * * Use of Thermal Funds * * *
Sec. 1. USE OF THERMAL ENERGY AND PROCESS FUEL FUNDS FOR
         GREENHOUSE GAS EMISSIONS REDUCTION PROGRAMS
   (a) Notwithstanding any provision of law or order of the Public Utility
Commission (PUC) to the contrary, the entity appointed under 30 V.S.A.
§ 209(d)(2)(A) that is also a retail electricity provider for the calendar years
2027–2029 may spend any amounts the entity has available to it through
annually budgeted thermal energy and process fuel funds and carryforward
thermal energy and process fuel funds from prior periods on programs,
measures, and services that reduce fossil fuel use and greenhouse gas
emissions in the thermal energy or transportation sector regardless of the
preexisting fuel source of the customer. The entity may also use thermal
energy and process fuel funds under this section to deliver thermal and
transportation measures or programs that enable fossil fuel and greenhouse gas
emissions reductions, such as geothermal test well funding, regardless of the
preexisting fuel source of the customer.
   (b) Under this section, the entity shall also prioritize weatherization and
thermal sector efficiency programs within its offerings pursuant to this section,
and shall budget at least 60 percent of the funds for programs under this
                                                                    VT LEG #389692 v.1
No. 97  Page 2 of 10
2026
section for weatherization and thermal sector efficiency programs, to be
offered to customers regardless of their preexisting fuel source, with a
minimum of 60 percent of those weatherization and thermal sector efficiency
program funds allocated for customers with low income and low-to-moderate
income and projects requiring electric panel or wiring upgrades or abatement
of other health- or building-related items to facilitate weatherization and
thermal efficiency.
   (c) The entity shall seek approval from the PUC for all planned
expenditures throughout the three-year performance period as part of the
triennial energy efficiency utility planning process in the Demand Resources
Plan proceeding, and report, to the PUC, annually on program participation,
including any customer survey data obtained that discuss how impactful
incentives offered under this section were for customer adoption.
   (d) Any funds spent on programs, measures, and services pursuant to this
section shall not be counted towards the calculation of funds used by the entity
for energy transformation projects pursuant to 30 V.S.A. § 8005(a)(3) and the
calculation of project costs pursuant to 30 V.S.A. § 8005(a)(3)(C)(iv).
                          * * * Energy Planning * * *
Sec. 2. 24 V.S.A. § 4348 is amended to read:
§ 4348. ADOPTION AND AMENDMENT OF REGIONAL PLAN
                                      ***
                                                                   VT LEG #389692 v.1
No. 97  Page 3 of 10
2026
   (b) 60 Sixty days prior to holding the first public hearing on a regional
plan, a regional planning commission shall submit a draft regional plan to the
Land Use Review Board for review and comments related to conformance of
the draft with sections 4302 and 4348a of this title and chapter 139 of this title
and, if it is seeking an optional determination of energy compliance, to the
Department of Public Service for review and comments related to conformance
of the draft plan with section 4352 of this title. The Board shall coordinate
with other State agencies and respond within 60 days unless more time is
granted by the regional planning commission.
                                       ***
   (d)(1) At least 30 days prior to the first hearing, a copy of the proposed
plan or amendment, a report documenting conformance with the goals
established in section 4302 of this chapter and the plan elements established in
section 4348a of this chapter, and a description of any changes to the Regional
Future Land Use Map with a request for general comments and for specific
comments with respect to the extent to which the plan or amendment is
consistent with the goals established in section 4302 of this title, shall be
delivered physically or electronically with proof of receipt or sent by certified
mail, return receipt requested, to each of the following:
                                       ***
      (2) At least 30 days prior to the first hearing, the regional planning
commission shall provide each of its member municipalities with a written
                                                                    VT LEG #389692 v.1
No. 97  Page 4 of 10
2026
description of map changes within the municipality, a municipality-wide map
showing old versus new areas with labels, and information about the new Tier
structure under 10 V.S.A. chapter 151, including how to obtain Tier 1A or 1B
status, and the process for updating designated area boundaries. The regional
planning commission shall, if it is seeking an optional determination of energy
compliance, solicit feedback on its enhanced energy plan, including
consistency with section 4352 of this chapter and the enhanced energy
planning standards.
                                      ***
   (h)(1) Within 15 days following adoption, a regional planning commission
shall submit its regionally adopted regional plan to the Land Use Review
Board for a determination of regional plan compliance with a report
documenting conformance with the goals established in section 4302 of this
chapter and the plan elements established in section 4348a of this chapter and a
description of any changes to the regional plan future land use map. The
regional planning commission shall also at this time, if it is seeking an optional
determination of energy compliance pursuant to section 4352 of this chapter,
submit the plan to the Department of Public Service for review with a
description of conformance with the enhanced energy planning standards and
with a summary of any comments received during the public hearings.
                                      ***
                                                                   VT LEG #389692 v.1
No. 97  Page 5 of 10
2026
Sec. 3. 24 V.S.A. § 4350 is amended to read:
§ 4350. REVIEW AND CONSULTATION REGARDING MUNICIPAL
         PLANNING EFFORT
                                       ***
   (b)(1) As part of the consultation process, the commission shall consider
whether a municipality has adopted a plan. In order to obtain or retain
confirmation of the planning process, a municipality must have an approved
plan. A regional planning commission shall review and approve plans of its
member municipalities, when approval is requested and warranted. Each
review shall include a public hearing which that is noticed at least 15 days in
advance by posting in the office of the municipal clerk and at least one public
place within the municipality and by publication in a newspaper or newspapers
of general publication in the region affected. The commission shall approve a
plan if it finds that the plan:
          (A) is consistent with the goals established in section 4302 of this
title;
          (B) is compatible with its regional plan;
          (C) is compatible with approved plans of other municipalities in the
region; and
          (D) contains all the elements included in subdivisions 4382(a)(1)–
(12) of this title; and
                                                                   VT LEG #389692 v.1
No. 97  Page 6 of 10
2026
         (E) if the municipality is seeking an optional determination of energy
compliance, is consistent with section 4352 of this title and the enhanced
energy planning standards.
                                      ***
Sec. 4. 24 V.S.A. § 4352 is amended to read:
§ 4352. OPTIONAL DETERMINATION OF ENERGY COMPLIANCE;
         ENHANCED ENERGY PLANNING
                                      ***
   (c) Enhanced energy planning; requirements. To obtain an affirmative
determination of energy compliance under this section, a plan must:
      (1) in the case of a regional plan, include the energy element as
described in subdivision 4348a(a)(3) of this title;
      (2) in the case of a municipal plan, include an energy element that has
the same components as described in subdivision 4348a(a)(3) of this title for a
regional plan and be confirmed under section 4350 of this title;
      (3) be consistent with the following, with consistency determined in the
manner described under subdivision 4302(f)(1) of this title:
         (A) Vermont’s greenhouse gas reduction goals requirements under
10 V.S.A. § 578(a);
         (B) Vermont’s 25 by 25 goal for renewable energy under 10 V.S.A. §
580 Renewable Energy Standard under 30 V.S.A. §§ 8004 and 8005;
         (C) Vermont’s building efficiency goals under 10 V.S.A. § 581; and
                                                                   VT LEG #389692 v.1
No. 97  Page 7 of 10
2026
         (D) State energy policy under 30 V.S.A. § 202a and the
recommendations for regional and municipal energy planning pertaining to the
efficient use of energy and the siting and development of renewable energy
resources contained in the State energy plans adopted pursuant to 30 V.S.A.
§§ 202 and 202b; and
         (E) the distributed renewable generation and energy transformation
categories of resources to meet the requirements of the Renewable Energy
Standard under 30 V.S.A. §§ 8004 and 8005; and
                                      ***
   (d) State energy plans; recommendations; standards.
      (1) The State energy plans Commissioner of Public Service shall include
the issue recommendations for regional and municipal energy planning and the
standards for issuing a determination of energy compliance described in
subdivision (c)(3) of this section within one year after adopting or readopting
the State Comprehensive Energy Plan adopted pursuant to 30 V.S.A. § 202b.
These recommendations and standards shall be consistent with the State
Comprehensive Energy Plan.
                                      ***
   (e) Process for issuing determinations of energy compliance. Review of
whether to issue a determination of energy compliance under this section shall
include a public hearing noticed at least 15 days in advance by direct mail or
electronically with proof of receipt to the requesting regional planning
                                                                  VT LEG #389692 v.1
No. 97  Page 8 of 10
2026
commission or municipal legislative body, posting on the website of the entity
from which the determination is requested, and publication in a newspaper of
general publication in the region or municipality affected consideration of
comments received by the regional planning commission or municipality
during the plan adoption process on consistency with this section, and with the
enhanced energy planning standards. The Commissioner or regional planning
commission shall issue the determination in writing within two months 60 days
after the receipt of a request for a determination. If the determination is
negative, the Commissioner or regional planning commission shall state the
reasons for denial in writing and, if appropriate, suggest acceptable
modifications. Submissions for a new determination that follow a negative
determination shall receive a new determination within 45 days.
                                      ***
   (g) Municipality; determination from DPS; time-limited option. Until July
1, 2018, a municipality whose plan has been confirmed under section 4350 of
this title may seek issuance of a determination of energy compliance from the
Commissioner of Public Service if it is a member of a regional planning
commission whose regional plan has not received such a determination.
      (1) The Commissioner shall issue an affirmative determination of energy
compliance for the municipal plan on finding that the plan meets the
requirements of subsection (c) of this section. The Commissioner’s review of
the municipal plan shall be for the purpose only of determining whether a
                                                                   VT LEG #389692 v.1
No. 97  Page 9 of 10
2026
determination of energy compliance should be issued because those
requirements are met.
      (2) A municipality aggrieved by an act or decision of the Commissioner
under this subsection may appeal in accordance with the procedures of
subsection (f) of this section.
   (h) Determination; time period. An affirmative determination of energy
compliance issued pursuant to this section shall remain in effect until the end
of the period for expiration or readoption of the plan to which it applies, with
the following exceptions:
      (1) The regional planning commission or municipal legislative body has
adopted a plan with an updated energy element and notified the appropriate
body of its intent to request a determination of energy compliance at least 30
days prior to the first public hearing on that plan. In this case, the
Commissioner of Public Service or regional planning commission may choose
to offer the requesting body a provisional affirmative determination of energy
compliance that shall remain in effect for two months following the adoption
of the new plan.
      (2) In the event a regional or municipal plan is readopted without
updates to the energy element or chapter that impact the plan’s existing
affirmative determination, the affirmative determination shall be extended to
the expiration date of the readopted plan. The regional planning commission
or municipality shall seek an opinion from the Department or regional planning
                                                                     VT LEG #389692 v.1
No. 97  Page 10 of 10
2026
commission that a new determination of energy compliance is not required,
and shall seek a new determination of energy compliance if determined
necessary by the Department or regional planning commission.
Notwithstanding the opinion, a new determination of energy compliance shall
be required if the standards for issuing a determination of energy compliance
have been revised since the last affirmative determination of energy
compliance was issued.
   (i)(h) Commissioner; consultation. In the discharge of the duties assigned
under this section, the Commissioner shall may consult with and solicit the
recommendations of the Secretaries of Agriculture, Food and Markets, of
Commerce and Community Development, of Natural Resources, and of
Transportation.
Sec. 5. REPEAL
   30 V.S.A. § 202f (establishing the Telecommunications and Connectivity
Advisory Board) is repealed.
                           * * * Effective Date * * *
Sec. 6. EFFECTIVE DATE
   This act shall take effect on passage.
Date Governor signed bill: May 13, 2026
                                                                 VT LEG #389692 v.1