H 944

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2026
No. 168. An act relating to the fiscal year 2027 Transportation Program
and miscellaneous changes to laws related to transportation.
                                    (H.944)
It is hereby enacted by the General Assembly of the State of Vermont:
                        * * * Legislative Findings * * *
Sec. 1. LEGISLATIVE FINDINGS
   The General Assembly finds that:
      (1) State fiscal year 2025 Transportation Fund revenues came in nearly
$7,400,000.00 below the revenue forecast.
      (2) In July 2025, the revenue forecast for the Transportation Fund was
downgraded for State fiscal years 2026–2030 because of reductions in the
projected revenues from the purchase and use tax and Department of Motor
Vehicles fees.
      (3) Revenues from the taxes on gasoline and diesel fuel are projected to
gradually decrease in State fiscal years 2026–2030. That trend is expected to
continue because of improving vehicle fuel efficiency among all vehicles and
increasing adoption of electric vehicles.
      (4) The July 2025 consensus revenue forecast estimates a 1.33 percent
compound annual growth rate in Transportation Fund revenues between 2026
and 2030, which is far below recent inflation levels.
      (5) In contrast with the slow growth in Transportation Fund revenues,
the National Highway Construction Cost Index increased by approximately
62 percent between 2020 and 2025.
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      (6) In addition to rising construction costs, salaries and benefits have
also increased significantly in recent years, creating significant ongoing cost
pressure on the Transportation Fund.
      (7) To address budget shortfalls in the past year, the Agency has been
forced to eliminate 62 permanent positions.
      (8) Continuing deficits in the Transportation Fund threaten the State’s
ability to provide the required match for federal funds, which make up more
than half of the State’s annual transportation budget.
      (9) Municipalities face the same cost pressures as the State. However,
State aid for town highways has only increased by 2.7 percent, which places
increasing pressure on chronically underfunded town highway programs and
puts pressure on the property tax.
      (10) If Vermont is unable to keep up with the maintenance and capital
needs of its transportation system, the infrastructure will continue to
deteriorate, and restoring the system to a state of good repair will cost
significantly more.
      (11) Prompt legislative action is necessary to ensure the future health
and stability of the Transportation Fund and to enable the Agency of
Transportation to keep Vermont’s transportation system in a state of good
repair.
     * * * Transportation Program Adopted as Amended; Definitions * * *
Sec. 2. TRANSPORTATION PROGRAM ADOPTED; DEFINITIONS
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   (a) Adoption. The Agency of Transportation’s Proposed Fiscal Year 2027
Transportation Program appended to the Agency of Transportation’s proposed
fiscal year 2027 budget, as amended by this act, is adopted to the extent
federal, State, and local funds are available.
   (b) Definitions. As used in this act, unless otherwise indicated:
      (1) “Agency” means the Agency of Transportation.
      (2) “Candidate project” means a project approved by the General
Assembly that is not anticipated to have significant preliminary engineering
expenditures or right-of-way expenditures, or both, during the budget year and
for which construction funding is not anticipated within a predictable time
frame.
      (3) “Development and evaluation (D&E) project” means a project
approved by the General Assembly that is anticipated to have preliminary
engineering expenditures or right-of-way expenditures, or both, during the
budget year and that the Agency is committed to delivering to construction on
a timeline driven by priority and available funding.
      (4) “Electric vehicle supply equipment (EVSE)” and “electric vehicle
supply equipment available to the public” have the same meanings as in
30 V.S.A. § 201.
      (5) “Front-of-book project” means a project approved by the General
Assembly that is anticipated to have construction expenditures during the
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budget year or the following three years, or both, with expected expenditures
shown over four years.
      (6) “Plug-in electric vehicle (PEV),” “plug-in hybrid electric vehicle
(PHEV),” and “battery electric vehicle (BEV)” have the same meanings as in
23 V.S.A. § 4(85).
      (7) “Secretary” means the Secretary of Transportation.
      (8) “TIB funds” means monies deposited in the Transportation
Infrastructure Bond Fund in accordance with 19 V.S.A. § 11f.
      (9) The table heading “As Proposed” means the Proposed
Transportation Program referenced in subsection (a) of this section; the table
heading “As Amended” means the amendments as made by this act; the table
heading “Change” means the difference obtained by subtracting the “As
Proposed” figure from the “As Amended” figure; the term “change” or
“changes” in the text refer to the project- and program-specific amendments,
the aggregate sum of which equals the net “Change” in the applicable table
heading; and “State” in any tables amending authorizations indicates that the
source of funds is State monies in the Transportation Fund, unless otherwise
specified.
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              * * * Summary of Transportation Investments * * *
Sec. 3. FISCAL YEAR 2027 TRANSPORTATION INVESTMENTS
          INTENDED TO REDUCE TRANSPORTATION-RELATED
          GREENHOUSE GAS EMISSIONS, REDUCE FOSSIL FUEL
          USE, AND SAVE VERMONT HOUSEHOLDS MONEY
   This act includes the State’s fiscal year 2027 transportation investments
intended to reduce transportation-related greenhouse gas emissions, reduce
fossil fuel use, and save Vermont households money in furtherance of the
policies articulated in 19 V.S.A. § 10b and the goals of the Comprehensive
Energy Plan and the Vermont Climate Action Plan and to satisfy the Executive
and Legislative Branches’ commitments to the Paris Agreement climate goals.
In fiscal year 2027, these efforts will include the following:
      (1) Park and Ride Program. This act provides for a fiscal year
expenditure of $1,976,211.00, which will fund three park and ride projects.
      (2) Bike and Pedestrian Facilities Program. This act provides for a
fiscal year expenditure, including local match, of $24,576,873.00, which will
fund 34 bike and pedestrian construction projects; 18 bike and pedestrian
design, right-of-way, or design and right-of way projects for construction in
future fiscal years; and eight scoping studies. The construction projects
include the creation, improvement, and rehabilitation of walkways, sidewalks,
shared-use paths, bike paths, and cycling lanes. Projects are funded in
Arlington, Bennington, Bethel, Brattleboro, Burke, Burlington, Castleton,
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Chester, Danville, Essex Town, Fairfax, Greensboro, Guilford, Hartford,
Huntington, Hyde Park, Irasburg, Jamaica, Johnson, Lunenburg, Middlebury,
Montpelier, Moretown, Morristown, Newfane, Newport City, Northfield,
Pownal, Royalton, Rutland City, Rutland Town, Sheldon, South Burlington,
Springfield, St. Albans City, Swanton, Wallingford, Warren, Waterbury, West
Rutland, Williston, Wilmington, and Wolcott. This act also provides funding
for:
          (A) some of Local Motion’s operation costs to run the bike ferry on
the Colchester Causeway, which is part of the Island Line Trail;
          (B) grant awards for State-aid construction projects;
          (C) projects funded through the Safe Routes to School Program; and
          (D) community grants along the Lamoille Valley Rail Trail (LVRT).
       (3) Transportation Alternatives Program. This act provides for a fiscal
year expenditure of $4,514,362.00, including local funds, which will fund 22
transportation alternatives construction projects; 28 transportation alternatives
design, right-of-way, or design and right-of-way projects; and one scoping
study. Of these 51 projects, 18 involve environmental mitigation related to
clean water or stormwater concerns, or both clean water and stormwater
concerns, and 30 involve bicycle and pedestrian facilities. Projects are funded
in Athens, Bennington, Bethel, Brandon, Brattleboro, Bristol, Burke,
Burlington, Derby, Enosburg Falls, Fairlee, Ferrisburgh, Glover, Guilford,
Hinesburg, Hyde Park, Jericho, Londonderry, Ludlow, Lyndon, Montgomery,
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Newark, Putney, Rockingham, Rutland City, Shoreham, South Burlington,
Springfield, Swanton, Warren, Weathersfield, Williston, Wilmington, and
Windham.
      (4) Public Transit Program. This act provides for a fiscal year
expenditure of $57,855,144.00 for public transit uses throughout the State.
Included in the authorization are:
          (A) Go! Vermont, with an authorization of $380,000.00. This
authorization supports transportation demand management (TDM) strategies,
including the State’s Trip Planner and commuter services, to promote the use
of carpools and vanpools.
          (B) Mobility and Transportation Innovations (MTI) Grant Program,
with an authorization of $315,000.00 in federal funds. This authorization
continues to support projects that improve both mobility and access to services
for transit-dependent Vermonters, reduce the use of single-occupancy vehicles,
and reduce greenhouse gas emissions.
      (5) Rail Program. This act provides for a fiscal year expenditure of
$60,289,410.00, including local funds and $34,688,907.00 in federal funds, for
intercity passenger rail service, including funding for the Ethan Allen Express
and Vermonter Amtrak services, and rail infrastructure that supports freight
rail as well. Moving freight by rail instead of trucks lowers greenhouse gas
emissions by up to 75 percent, on average.
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                             * * * Paving * * *
Sec. 4. PAVING; STATEWIDE DISTRICT LEVELING
  (a) Within the Agency of Transportation’s Proposed Fiscal Year 2027
Transportation Program for Paving, authorized spending is amended as
follows:
  FY27  As Proposed       As Amended  Change
     Other  1,150,000  1,150,000  0
     PE  2,183,194  2,183,194  0
     Const.  144,812,226       146,512,226  1,700,000
     Total  148,145,420       149,845,420  1,700,000
  Sources of funds
     State  24,400,007        25,100,007  1,700,000
     Federal  123,732,179       123,732,179  0
     Local  13,235  13,235  0
     Total  148,145,420       149,845,420  1,700,000
  (b) Within the Agency of Transportation’s Proposed Fiscal Year 2027
Transportation Program for Paving, authorized spending for STATEWIDE
District Leveling TBD is amended as follows:
  FY27  As Proposed       As Amended  Change
     Const.  7,000,000  8,700,000        1,700,000
     Total  7,000,000  8,700,000        1,700,000
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   Sources of funds
      State  7,000,000  8,700,000  1,700,000
      Total  7,000,000  8,700,000  1,700,000
   (c) It is the intent of the General Assembly to direct the maximum amount
of funding to the State highway system. Consistent with this intent, within the
Agency of Transportation’s Proposed Fiscal Year 2027 Transportation
Program for Paving, any unobligated amounts or carryforward resulting from
project delays or cost overruns or underruns shall be directed to State highway
paving projects.
                       * * * State Highway Bridges * * *
Sec. 5. STATE HIGHWAY BRIDGES
   (a) Within the Agency of Transportation’s Proposed Fiscal Year 2027
Transportation Program for State Highway Bridges, authorized spending is
amended as follows:
   FY27  As Proposed        As Amended  Change
      PE  4,143,897  4,143,897  0
      ROW  414,000  414,000  0
      Const.  78,935,408  78,935,408  0
      Other  1,400,000  1,400,000  0
      Total  84,893,305  84,893,305  0
   Sources of funds
      State  2,873,295  1,123,295        -1,750,000
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     TIB  6,180,851  7,930,851        1,750,000
     Federal  67,312,444        67,312,444  0
     Local/Other       1,247,049  1,247,049  0
     Inter Unit        7,279,666  7,279,666  0
     Total  84,893,305        84,893,305  0
  (b) Within the Agency of Transportation’s Proposed Fiscal Year 2027
Transportation Program for State Highway Bridges, authorized spending for
SHAFTSBURY STP 014-1(6) is amended as follows:
  FY27  As Proposed       As Amended  Change
     PE  14,678  14,678  0
     Const.  2,600,000  2,600,000  0
     Total  2,614,678  2,614,678  0
  Sources of funds
     State  521,000  0  -521,000
     TIB  1,936  522,936  521,000
     Federal  2,091,742  2,091,742  0
     Total  2,614,678  2,614,678  0
  (c) Within the Agency of Transportation’s Proposed Fiscal Year 2027
Transportation Program for State Highway Bridges, authorized spending for
SUNDERLAND BM20102 is amended as follows:
  FY27  As Proposed       As Amended  Change
     PE  85,287  85,287  0
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     Const.  2,000,000  2,000,000  0
     Total  2,085,287  2,085,287  0
  Sources of funds
     State  415,057  0  -415,057
     TIB  2,000  417,057  415,057
     Federal  1,668,230  1,668,230  0
     Total  2,085,287  2,085,287  0
  (d) Within the Agency of Transportation’s Proposed Fiscal Year 2027
Transportation Program for State Highway Bridges, authorized spending for
SUNDERLAND NH CULV 122 is amended as follows:
  FY27  As Proposed       As Amended  Change
     PE  53,182  53,182  0
     Const.  2,000,000  2,000,000  0
     Total  2,053,182  2,053,182  0
  Sources of funds
     State  408,636  141,686  -266,950
     TIB  2,000  268,950  266,950
     Federal  1,642,546  1,642,546  0
     Total  2,053,182  2,053,182  0
  (e) Within the Agency of Transportation’s Proposed Fiscal Year 2027
Transportation Program for State Highway Bridges, authorized spending for
TOPSHAM BF 031-1(13) is amended as follows:
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   FY27  As Proposed  As Amended  Change
      PE  10,000  10,000  0
      ROW  1,000  1,000  0
      Const.  2,733,967  2,733,967  0
      Total  2,744,967  2,744,967  0
   Sources of funds
      State  546,993  0  -546,993
      TIB  2,000  548,993  546,993
      Federal  2,195,974  2,195,974  0
      Total  2,744,967  2,744,967  0
                * * * Transportation Infrastructure Bonds * * *
Sec. 6. FISCAL YEAR 2028 PROPOSED TRANSPORTATION
          PROGRAM; TRANSPORTATION INFRASTRUCTURE BOND;
          REPORT
   (a) The Agency of Transportation shall report to the House and Senate
Committees on Transportation, on or before February 1, 2027, regarding
projects that are not proposed for the State fiscal year 2028 Transportation
Program that:
      (1) are priority projects that are eligible to be funded with the proceeds
from the issuance of transportation infrastructure bonds pursuant to the
provisions of 32 V.S.A. § 972(d); and
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         (2) could be advanced to construction in the fiscal year 2028 or 2029
Transportation Program if the General Assembly authorized the issuance of
transportation infrastructure bonds.
   (b) Information presented as part of the report shall include:
         (1) an analysis comparing the present value of the estimated cost to pay
for the identified projects using transportation infrastructure bond proceeds to
the cost to pay for the projects on a pay-as-you-go basis;
         (2) a comparison of the projects’ schedules if funded with transportation
infrastructure bonds to the projects’ schedules if funded on a pay-as-you-go
basis;
         (3) a review of historic transportation infrastructure bond usage in
Vermont, including debt service costs; and
         (4) a projection of future debt service costs and of the revenues
necessary to pay the debt service.
                         * * * Mileage-Based User Fee * * *
Sec. 7. FINDINGS AND INTENT
   (a) Findings. The General Assembly finds that:
         (1) Vermont adopted its first tax on gasoline in 1923.
         (2) In 1923, the most common motor vehicle in the Unites States was
the Ford Model T, whose annual production peaked at more than 2,000,000
new vehicles that year.
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      (3) Because of the limited variety of mass-produced vehicles available
when it was adopted, the gasoline tax, and the later-adopted diesel fuel tax,
served as use fees that required drivers of light-duty motor vehicles to
contribute to the State’s Transportation Fund in an amount that reflected the
number of miles that each vehicle was driven on Vermont’s surface
transportation system.
      (4) Since 1923, the variety of mass-produced light-duty motor vehicles
available to consumers has expanded greatly, resulting in a wide variety of
internal combustion engine and vehicle types and designs with significant
differences in vehicle fuel efficiency.
      (5) Improvements in fuel efficiency among light-duty motor vehicles
and the increasing adoption of hybrid, plug-in hybrid, and battery electric
vehicles (BEVs) is leading to reduced fuel consumption among newer vehicles.
      (6) BEVs do not require gasoline and diesel fuel, and the $89.00 annual
infrastructure fee paid by owners and lessees of BEVs registered in Vermont is
less than the average amount of fuel taxes collected in relation to a light-duty
motor vehicle with an internal combustion engine.
      (7) As a result of differences in fuel consumption between different
types and ages of light-duty motor vehicles, the current system for funding
Vermont’s surface transportation system through fuel taxes has become
inequitable when the impacts of each vehicle on the transportation system are
considered.
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        (8) In contrast to the current system, a mileage-based user fee imposes a
per-mile fee for usage of the State’s highways and ensures that owners and
lessees of motor vehicles contribute to the Transportation Fund in an equitable
manner.
        (9) Vermont’s taxes on gasoline and on diesel fuel were last increased in
2014, and the federal taxes on gasoline and on diesel fuel were last increased in
1993.
        (10) Reduced fuel consumption and unchanged gasoline and diesel tax
rates have resulted in stagnant fuel tax revenues that have not kept pace with
inflation or the needs of Vermont’s transportation system.
        (11) In addition to Vermont’s stagnant fuel tax revenues, Vermont’s
demographic constraints and changes in vehicle ownership and usage have
limited the growth of fee revenues to the Transportation Fund.
        (12) Reductions in registration and license renewals and decreased
compliance with annual inspection requirements, combined with reduced
enforcement, has led to further diminished Transportation Fund revenues.
        (13) The July 2025 consensus revenue forecast estimates a 1.33 percent
compound annual growth rate in Transportation Fund revenues between 2026
and 2030.
        (14) In comparison, highway construction costs, as measured by the
National Highway Construction Cost Index, have increased by 62 percent,
nationally, since 2020.
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   (b) Intent. It is the intent of the General Assembly to implement a mileage-
based user fee for BEVs, which will replace the existing infrastructure fee
beginning on January 1, 2027, to ensure that owners and lessees of BEVs
contribute to the Transportation Fund in an amount that reflects the annual
miles traveled by each vehicle.
Sec. 8. 23 V.S.A. chapter 43 is added to read:
                CHAPTER 43. MILEAGE-BASED USER FEE
§ 4301. DEFINITIONS
   As used in this chapter:
      (1) “Account manager” means a person that the Agency of
Transportation or Department of Motor Vehicles contracts with to administer
and manage the mileage-based user fee.
      (2) “Annual vehicle miles traveled” means the total number of miles that
a covered vehicle is driven during a mileage reporting period.
      (3) “Covered vehicle” means a battery electric vehicle pleasure car.
      (4) “Mileage-based user fee” or “MBUF” means the fee charged for the
annual vehicle miles traveled by a covered vehicle pursuant to section 4302 of
this chapter.
      (5) “Mileage-based user fee rate” means the per-mile usage fee charged
to the owner or lessee of a covered vehicle pursuant to section 4302 of this
chapter.
      (6) “Mileage reporting period” means:
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          (A) the time period between required annual inspections;
          (B) the time period between the initial registration of a vehicle and an
annual inspection; or
          (C) the time period between the most recent annual inspection and a
terminating event.
      (7) “Terminating event” means any of the following:
          (A) the registration of a covered vehicle that had been registered in
Vermont in a different state;
          (B) a change in ownership or lesseeship of a covered vehicle; or
          (C) the termination of a covered vehicle’s registration in Vermont.
§ 4302. MILEAGE-BASED USER FEE; ASSESSMENT; CALCULATION;
          PAYMENT; EXEMPTIONS
   (a) Assessment and payment of mileage-based user fee (MBUF).
      (1) Options for payment of MBUF. The owner or lessee of a covered
vehicle may elect to pay the MBUF according to one of the following options:
          (A) annual payment of the MBUF as a lump sum following the
conclusion of each mileage reporting period as set forth in subdivision (2) of
this subsection (a);
          (B) pay-as-you-go installment payments of the MBUF during a
mileage reporting period as set forth in subdivision (3) of this subsection (a),
provided that the Commissioner, in the Commissioner’s sole discretion, elects
to make a pay-as-you-go option available; and
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          (C) a flat rate of $178.00 as set forth in subdivision (5) of this
subsection (a).
      (2) Annual mileage-based user fee payment option.
          (A) For an owner or lessee who opts to pay the MBUF as a lump sum
at the end of each mileage reporting period, the Commissioner shall, within 14
days after the conclusion of the covered vehicle’s mileage reporting period,
calculate the amount of the MBUF pursuant to subsection (d) of this section
and mail an assessment of the amount to the owner or lessee.
          (B) The owner or lessee shall remit the amount due to the
Commissioner on or before the earlier of:
             (i) the next required registration renewal for the covered vehicle;
             (ii) the termination of the covered vehicle’s Vermont registration;
or
             (iii) the sale of the covered vehicle or termination of the lease of
the covered vehicle, as appropriate.
      (3) Pay-as-you-go option.
          (A) Owners and lessees who opt into the pay-as-you-go mileage-
based user fee option shall report the mileage shown on the odometer of the
owner’s or lessee’s covered vehicle at times and in a manner required by the
Commissioner.
          (B) As soon as practicable after receiving each report, the
Commissioner shall calculate pursuant to subsection (d) of this section the
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applicable MBUF due for the covered vehicle and mail to the owner or lessee a
statement of the amount of the mileage-based user fee assessed.
          (C) The owner or lessee of the covered vehicle shall remit the full
amount due to the Commissioner within not more than 30 days after the
assessment is mailed.
          (D) At the end of each mileage reporting period, the amount paid by
the owner or lessee shall be reconciled against the actual mileage driven as set
forth in subdivision (4) of this subsection (a).
      (4) Reconciliation of mileage for pay-as-you-go option.
          (A) At the conclusion of each mileage reporting period for a covered
vehicle whose owner or lessee has elected the pay-as-you-go payment option,
the Commissioner shall determine if the amount of the MBUF for the actual
miles traveled by the covered vehicle during the mileage reporting period is
greater than or less than the amount of the payments made by the owner or
lessee during that period.
          (B) If the actual MBUF is less than the amount paid, the owner or
lessee of the covered vehicle shall receive a credit equal to the difference
between the amount paid and the actual amount, which shall be applied to
reduce the amount of future fees due from the owner or lessee for the covered
vehicle pursuant to this subsection (a).
          (C) If the actual MBUF is more than the amount paid, the owner or
lessee of the covered vehicle shall be assessed an amount equal to the
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difference between the actual MBUF and the amount paid, which shall be
added to the next amount due from the owner or lessee pursuant to this
subsection (a).
      (5) Flat-rate option.
          (A) The Commissioner shall send an owner or lessee who elects the
flat-rate option an assessment for the flat fee due at the beginning of each
mileage reporting period. The owner or lessee shall remit the amount due to
the Commissioner on or before the earlier of:
               (i) the next required registration renewal for the covered vehicle;
               (ii) the termination of the covered vehicle’s Vermont registration;
or
               (iii) the sale of the covered vehicle or termination of the lease of
the covered vehicle, as appropriate.
          (B) An owner or lessee enrolled in the flat-rate option shall not be
required to report vehicle mileage to the Commissioner pursuant to the
provisions of this chapter. Nothing in this subdivision (5)(B) shall be
construed to exempt an owner or lessee enrolled in the flat-rate option from
any other requirements in State law related to vehicle inspections or odometer
disclosures.
      (6) Payment dates for mileage reporting periods ending within 60 days
of registration renewal. Notwithstanding any provision of this subsection to
the contrary, the owner or lessee of a covered vehicle with a mileage reporting
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period that ends 60 or fewer days prior to the next required registration renewal
for the vehicle shall be permitted to remit the amount due to the Commissioner
on or before the earlier of:
          (A) the next subsequent registration renewal of the vehicle;
          (B) the termination of the vehicle’s registration; or
          (C) the sale of the vehicle or the termination of the vehicle’s lease, as
applicable.
   (b) Newly registered vehicles. The owner or lessee of a newly registered
covered vehicle shall pay the MBUF during the initial year of registration
pursuant to:
      (1) the pay-as-you-go option set forth in subdivision (a)(3) of this
section; or
      (2) the flat-rate option set forth in subdivision (a)(5) of this section.
   (c) Election of different payment option. An owner or lessee of a covered
vehicle may select a different option for payment of the MBUF pursuant to
subsection (a) of this section by providing notice to the Commissioner in the
time and manner prescribed by the Commissioner.
   (d) Calculation of the mileage-based user fee.
      (1) The Commissioner shall calculate the mileage-based user fee of each
covered vehicle by multiplying the miles traveled by the covered vehicle
during the applicable period by the rate established pursuant to subsection (e)
of this section. The number of miles traveled shall be equal to:
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          (A) for a mileage reporting period, the difference between the
mileage shown on the covered vehicle’s odometer at the end of the mileage
reporting period and the mileage shown on the covered vehicle’s odometer at
the beginning of the mileage reporting period; and
          (B) for a report filed by an owner or lessee as part of the pay-as-you-
go mileage-based user fee program pursuant to subdivision (a)(3) of this
section, the difference between the mileage reported by the owner or lessee and
the most recent prior mileage reported for the covered vehicle.
      (2) Notwithstanding any provision of subdivision (1) of this subsection
to the contrary, the mileage-based user fee assessed for a mileage reporting
period shall not exceed $178.00.
   (e) Mileage-based user fee rate. The mileage-based user fee rate shall be
$0.014 per mile traveled by a covered vehicle during its mileage reporting
period.
   (f) Exemptions. The mileage-based user fee assessed pursuant to this
section shall not apply to:
      (1) covered vehicles owned or operated by the government of the United
States;
      (2) covered vehicles owned or operated by the State of Vermont; or
      (3) covered vehicles that are used for short-term rentals.
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   (g) Fee in addition to other fees and taxes. A mileage-based user fee
assessed pursuant to this section shall be in addition to any other fees and taxes
imposed by this title.
   (h) Review of amount assessed. A person may, within 45 days after an
assessment is mailed pursuant to subsection (a) of this section, appeal the
amount of the assessment to the Commissioner. The Commissioner shall
establish procedures for filing and hearing appeals pursuant to this subsection
that are consistent with the provisions of sections 105–107 of this title. The
procedures shall include a process by which an appellant can resolve the
dispute prior to the issuance of a final administrative decision on the appeal.
   (i) Refunds. Notwithstanding subdivision (a)(5)(B) of this section, upon
occurrence of a terminating event, the Commissioner shall issue a refund to the
owner or lessee of a covered vehicle for any amounts paid by the owner or
lessee that are in excess of the amount due pursuant to this chapter.
§ 4303. REPORTS
   (a) Upon completion of an inspection of a covered vehicle pursuant to
section 1222 of this title, an inspection mechanic shall report the mileage
shown on the covered vehicle’s odometer to the Department in the manner
required by the Commissioner.
   (b) Upon the occurrence of a terminating event, the owner or lessee of a
covered vehicle shall report the mileage shown on the covered vehicle’s
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odometer at the time of the terminating event to the Department in the time and
manner required by the Commissioner.
§ 4304. FAILURE TO FILE REPORT OR OBTAIN INSPECTION;
          DEFAULT RATE
     (a) The Commissioner shall charge the owner or lessee of a covered vehicle
a default rate of $178.00 if the Commissioner is unable to determine the annual
vehicle miles traveled for the owner’s or lessee’s covered vehicle because the
owner or lessee:
        (1) failed to file a report required by section 4303 of this chapter within
a reasonable period of time after the report is due;
        (2) failed to have the covered vehicle inspected as required pursuant to
section 1222 of this title within a reasonable period of time after the inspection
is due at either the commencement or conclusion of a mileage reporting period;
or
        (3) failed to have the covered vehicle inspected at any time during or
within a reasonable time after the conclusion of a mileage reporting period.
     (b)(1) The default amount required pursuant to subsection (a) of this
section shall be assessed when the owner or lessee of the covered vehicle next
renews the vehicle’s registration following the mileage reporting period.
        (2) After being assessed the default amount pursuant to this subsection,
the owner or lessee of the covered vehicle may obtain an inspection within 60
days after the date on which the vehicle’s registration is renewed. If the
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covered vehicle’s mileage is such that the mileage-based user fee would have
been less than the default amount, the owner or lessee shall receive a credit for
the difference that is applied to reduce the amount of the next mileage-based
user fee due for the covered vehicle, provided that the Commissioner has
sufficient odometer data to determine the mileage traveled since the beginning
of the mileage reporting period.
§ 4305. REGISTRATION; SUSPENSION OR REFUSAL
   (a) Suspension of registration. The Commissioner may suspend or refuse
to renew the registration of a covered vehicle if the Commissioner determines,
following notice and an opportunity for a hearing as provided pursuant to
subsection (b) of this section, that the owner or lessee of the covered vehicle:
      (1) failed to file a report required pursuant to section 4303 of this
chapter;
      (2) filed a report containing an intentional misrepresentation,
misstatement, or omission of material information required by this chapter; or
      (3) is delinquent at the time of renewal in the payment of any amount
due pursuant to the provisions of this chapter.
   (b) Notice and opportunity for hearing. The Commissioner shall provide
the owner or lessee of a covered vehicle with not less than 15 days’ notice of
the intent to suspend or not to renew the registration of the covered vehicle
pursuant to the provisions of this section. The owner or lessee shall be
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provided with the opportunity for a hearing and shall be permitted to be
represented by counsel at the hearing.
§ 4306. POWERS OF THE COMMISSIONER
   (a) General authority. The Commissioner shall have the authority to
administer and enforce the provisions of this chapter.
   (b) Additional powers. In addition to any powers or authority specifically
granted to the Commissioner pursuant to the provisions of this chapter, the
Commissioner may do the following:
      (1) adopt rules pursuant to 3 V.S.A. chapter 25 as the Commissioner
determines necessary to administer and enforce the provisions of this chapter;
      (2) prescribe forms appropriate to the purposes of this chapter; and
      (3) contract with an account manager to administer and manage the
mileage-based user fee.
§ 4307. APPEALS; JUDICIAL REVIEW
   (a) Administrative appeal. An aggrieved person may appeal any final
decision, order, or finding of the Commissioner under this chapter within not
more than 45 days after the decision is issued or the order or finding is made.
The Commissioner shall establish procedures for filing and hearing appeals
pursuant to this subsection that are consistent with the provisions of sections
105–107 of this title.
   (b) Appeal to Superior Court. Following a final decision on an appeal
pursuant to subsection (a) of this section or subsection 4302(h) of this chapter,
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the appellant may appeal the decision pursuant to Rule 74 of the Vermont
Rules of Civil Procedure. The appeal shall be to the Washington Superior
Court or, in the discretion of the appellant, to the Superior Court in the county
where the appellant resides or has a principal place of business.
   (c) Exclusivity of remedies. The appeals provided by this section and
subsection 4302(h) of this chapter shall be the exclusive remedies available to
any person for review of an assessment, decision, or order or finding of the
Commissioner under this chapter.
Sec. 9. 23 V.S.A. § 361 is amended to read:
§ 361. PLEASURE CARS
                                       ***
   (c) In addition to the registration fee set forth in subsection (a) of this
section, there shall be an annual EV infrastructure fee for a pleasure car that is
a plug-in hybrid electric vehicle, as defined in subdivision 4(85)(B) of this
title, equal to one-half the amount of the annual fee collected in subsection (a)
of this section, or a biennial EV infrastructure fee equal to the annual fee
collected in subsection (a) of this section.
   (d) The annual and biennial EV infrastructure fees collected in subsection
(c) of this section shall be allocated to deposited in the Transportation Fund for
programs administered by the Agency of Commerce and Community
Development to increase Vermonters’ access to level 1 and 2 electric vehicle
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supply equipment (EVSE) charging ports at workplaces or multiunit dwellings,
or both.
Sec. 10. MILEAGE-BASED USER FEE; INITIAL TRANSITION
   (a) Notwithstanding any provision of 23 V.S.A. § 4302 to the contrary,
during calendar years 2027 and 2028, the owner or lessee of a covered vehicle
shall pay the mileage-based user fee for the covered vehicle’s first mileage
reporting period as provided pursuant to the provisions of subsection (b) of this
section.
   (b)(1)(A) For a covered vehicle that has a valid Vermont registration on
December 31, 2026, the vehicle’s initial mileage reporting period shall
commence with its first annual inspection occurring on or after January 1,
2027.
           (B) For a covered vehicle that is newly registered in Vermont on or
after January 1, 2027, the vehicle’s initial mileage reporting period shall
commence on the date of registration.
        (2) For an initial registration or a registration renewal of a covered
vehicle that occurs on or after January 1, 2027, and prior to the completion of
the initial mileage reporting period, the owner or lessee of the covered vehicle
shall pay a one-time road usage charge of $89.00 for a one-year registration or
$178.00 for a two-year registration.
        (3) At the conclusion of a covered vehicle’s initial mileage reporting
period, the mileage-based user fee for the vehicle shall be calculated as
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provided pursuant to the annual mileage-based user fee payment option set
forth in 23 V.S.A. § 4302(a)(2).
      (4)(A) Provided that all required annual safety inspections under
23 V.S.A. § 1222 have been obtained, the amount of the covered vehicle’s
mileage-based user fee calculated pursuant to subdivision (3) of this subsection
(b) shall be reduced by:
             (i) the amount of any road usage charge paid pursuant to
subdivision (2) of this subsection (b); or
             (ii) for a covered vehicle whose owner or lessee did not pay the
road usage charge pursuant to subdivision (2) of this subsection (b) but paid
the EV infrastructure fee required pursuant to 23 V.S.A. § 361 at the most
recent registration or registration renewal of the vehicle prior to January 1,
2027, an amount equal to the amount of the EV infrastructure fee paid at the
most recent registration.
           (B) Any amounts remaining after the initial mileage-based user fee
has been paid shall be carried forward and applied as a credit to reduce the
amount of future mileage-based user fees due in relation to the covered
vehicle.
   (c) As used in this section, “covered vehicle” has the same meaning as in
23 V.S.A. § 4301.
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Sec. 11. OUTREACH AND EDUCATION; USER EXPERIENCE; REPORT
   (a) The Agency of Transportation and the Department of Motor Vehicles
shall develop and implement a public outreach, education, and
communications strategy regarding the mileage-based user fee program
established pursuant to 23 V.S.A. chapter 43 to build public awareness and
understanding of the program and to solicit public feedback regarding the
program. The strategy shall include the following:
      (1) printed materials, web-based materials, mailings, and local media
outreach that describes the purpose of the mileage-based user fee, the
transportation funding challenges that the mileage-based user fee is intended to
help address, and how the mileage-based user fee will be implemented with
respect to battery electric vehicles and, later, other light-duty vehicles;
      (2) prior to implementation, direct mailing of informational materials to
owners and lessees of battery electric vehicles that are currently registered in
Vermont that:
            (A) outline the goals and design of the mileage-based user fee;
            (B) set forth the timeline for implementation of the mileage-based
user fee;
            (C) provide information regarding compliance with the mileage-
based user fee, including the options that will be available to each owner and
lessee; and
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          (D) provide information on how to obtain additional information
regarding the mileage-based user fee, including how to obtain informational
resources provided by the Agency, the availability of user support resources,
and how to determine how the mileage-based user fee may apply to a user’s
specific circumstances;
      (3) prior to initial implementation of the mileage-based user fee in
January 2027, Agency engagement with owners and lessees of various types of
light-duty motor vehicles registered in Vermont to obtain feedback on the
design of the user experience for the mileage-based user fee, with particular
attention to universal accessibility and specific needs for translated materials
and services;
      (4) survey and focus group work prior to and following implementation
of the mileage-based user fee with owners and lessees whose vehicles are
subject to the mileage-based user fee to aid in evaluating the implementation of
the initial phase of the mileage-based user fee and in developing recommended
programmatic and statutory changes; and
      (5) ongoing engagement and collaboration with relevant stakeholders,
including the Vermont Vehicle and Automotive Distributors Association and
Drive Electric Vermont, to obtain feedback on the mileage-based user fee
program and to educate members of the public about the mileage-based user
fee and program design.
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   (b) The Agency and Department shall, on or before September 15, 2026,
submit to the Joint Transportation Oversight Committee a report summarizing
the public outreach, education, and communications strategy required pursuant
to subsection (a) of this section.
Sec. 12. MILEAGE-BASED USER FEE TRANSITION PLAN;
          REPORT
   (a)(1) The Agency of Transportation and the Department of Motor
Vehicles, in consultation with the Agency of Digital Services, shall design and
submit for approval by the General Assembly a plan and proposed legislation
to expand the mileage-based user fee (MBUF) program to plug-in hybrid
electric pleasure cars to ensure that all plug-in electric vehicles contribute an
amount that bears a direct relation to the estimated demands and impacts that
the vehicle places upon public infrastructure, as determined on the basis of
vehicle miles traveled.
      (2) The plan shall provide that plug-in hybrid electric pleasure cars shall
begin participating in the MBUF program on or before January 1, 2029.
      (3) The plan shall provide methods for ensuring that contributions to the
Transportation Fund are proportionate to the number of miles traveled in
Vermont by each vehicle, including:
          (A) additional payment and mileage tracking options for vehicle
owners or lessees to select from, including methods for differentiating between
miles traveled in Vermont and miles traveled outside Vermont; and
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          (B) a system to provide fuel tax credits for vehicles that use gasoline
or diesel fuel based on the vehicle’s fuel economy as estimated by the U.S.
Environmental Protection Agency that are automatically applied to reduce the
MBUF for the vehicle to ensure that all covered vehicles contribute to
Vermont’s transportation system in an equitable manner.
   (b) In developing the plan, the Agency and the Department shall:
      (1) analyze the amounts paid by vehicles of different engine-fuel types
and classifications with respect to the diesel fuel tax pursuant to 23 V.S.A.
chapter 27, the gasoline tax pursuant to 23 V.S.A. chapter 28, and the
infrastructure fee imposed pursuant to 23 V.S.A. § 361(c), as applicable;
      (2) develop a proposed schedule for the inclusion of plug-in hybrid
electric pleasure cars in the MBUF program on or before January 1, 2029;
      (3) consider possible methods to account for and differentiate between
in-state and out-of-state vehicle miles traveled by vehicles registered in
Vermont and vehicles registered in another state;
      (4) examine the potential for integrating alternative mileage reporting
methods into the mileage-based user fee program and related costs;
      (5) evaluate the potential to include medium- and heavy-duty electric
vehicles in the mileage-based user fee program and potential rate designs based
on vehicle weights; and
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      (6) examine the relationship between expansion of the mileage-based
user fee program and fuel tax rates, Transportation Fund revenue
sustainability, and Vermont’s carbon reduction targets.
   (c) The Agency and Department shall also track the implementation costs
and operating expenses of and revenues generated by the mileage-based user
fee for State fiscal years 2027–2031. The Agency and Department shall
submit an annual report of these amounts to the House Committees on
Transportation and on Ways and Means and the Senate Committees on
Transportation and on Finance on or before each December 31 beginning on
December 31, 2027, and continuing until December 31, 2031.
   (d)(1) On or before January 31, 2027, the Agency of Transportation and the
Department of Motor Vehicles shall submit to the House Committees on
Transportation and on Ways and Means and the Senate Committees on
Transportation and on Finance an initial plan and recommendation for
legislative action to:
          (A) incorporate plug-in hybrid electric pleasure cars into the MBUF
program;
          (B)(i) provide at least two additional options for determining the
number of vehicle miles traveled by a covered vehicle, including:
                (I) an option that would utilize vehicle systems or an
aftermarket device to track vehicle miles traveled; and
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               (II) an option that would enable vehicle owners and lessees to
track and differentiate between miles traveled in Vermont and miles traveled
outside Vermont, with the MBUF only applying to miles traveled in Vermont;
and
            (ii) identify data privacy protections and best practices that should
be implemented to protect data obtained from owners and lessees who elect to
utilize the options identified pursuant to this subdivision (B);
          (C)(i) recommend whether to retain a flat-rate option for the MBUF
and, if so, recommend the appropriate amount of the flat fee; and
            (ii) recommend how to apply the flat fee to plug-in hybrid electric
pleasure cars, including whether to provide different flat fees based on vehicle
type or to provide credits against the amount of the flat fee based on vehicle
fuel efficiency; and
          (D) provide at least one option to enable vehicle owners and lessees
to track and differentiate between miles traveled in Vermont and miles traveled
outside Vermont, with the MBUF only applying to miles traveled in Vermont.
      (2) On or before July 30, 2028, the Agency shall submit to the Joint
Transportation Oversight Committee and the House and Senate Committees on
Transportation a draft copy of the final report required to be submitted to the
Federal Highway Administration pursuant to the terms of the Agency’s federal
Strategic Innovation for Revenue Collection grant.
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      (3) On or before September 15, 2028, the Agency of Transportation and
the Department of Motor Vehicles shall submit to the House Committees on
Transportation and on Ways and Means and the Senate Committees on
Transportation and on Finance:
           (A) a final plan and proposal for legislative action necessary to
expand the MBUF program to all plug-in electric vehicles on or before January
1, 2029;
           (B) a report of all findings made pursuant to subsection (b) of this
section; and
           (C) any additional recommendations for legislative action.
Sec. 13. EVALUATION OF FEE ON PUBLIC ELECTRIC VEHICLE
           CHARGING; REPORT
   (a) The Commissioner of Taxes, in consultation with the Secretary of
Transportation, the Commissioner of Public Service, and the Public Utility
Commission, shall examine the potential of generating revenue for the
Transportation Fund through a charge on the retail sale of electricity sold
through electric vehicle supply equipment (EVSE) available to the public. In
particular, the Commissioner shall:
      (1) examine potential options for generating revenue from the retail sale
of electricity through EVSE available to the public, including:
           (A) a per kilowatt hour fee on the retail sale of electricity in lieu of
the sales tax charged pursuant to 32 V.S.A. chapter 233;
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          (B) a tax on the retail sale of electricity in lieu of the sales tax
charged pursuant to 32 V.S.A. chapter 233; and
          (C) other options, in the discretion of the Commissioner in
consultation with the Secretary of Transportation;
      (2) with respect to all of the options examined pursuant to subdivision
(1) of this subsection:
          (A) investigate the potential ease of implementation, including
anticipated administrative costs and any potential challenges;
          (B) examine and compare the benefits and drawbacks; and
          (C) develop a projection for potential revenue that could be generated
at different rates; and
      (3) identify examples of other states that have implemented the options
examined pursuant to subdivision (1) of this subsection.
   (b) On or before January 15, 2027, the Commissioner shall submit a written
report to the House Committees on Transportation and on Ways and Means
and the Senate Committees on Finance and on Transportation, regarding any
findings pursuant to subsection (a) of this section and a recommendation for
legislative action to generate revenue for the Transportation Fund from the
retail sale of electricity through EVSE available to the public.
   (c) As used in this section:
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     (1) “Electric vehicle supply equipment (EVSE)” and “electric vehicle
supply equipment available to the public” have the same meanings as in
30 V.S.A. § 201.
     (2) “Retail sale” has the same meaning as in 32 V.S.A. § 9701.
  * * * Repeal of Municipal Equipment and Vehicle Loan Fund Rules * * *
Sec. 14. RULES REGARDING MUNICIPAL HEAVY EQUIPMENT LOAN
          FUND; REPEAL
  The Rules Regarding Municipal Heavy Equipment Loan Fund (CVR 14-
053-002) are repealed. The Municipal Equipment and Vehicle Loan Fund, as
the successor to the Municipal Heavy Equipment Loan Fund, shall be
administered as provided pursuant to 29 V.S.A. § 1601.
            * * * Statement of Policy; Highways and Bridges * * *
Sec. 15. 19 V.S.A. § 10c is amended to read:
§ 10c. STATEMENT OF POLICY; HIGHWAYS AND BRIDGES
                                    ***
  (b) For projects that are not on the National Highway System, the Agency
shall develop and implement maintain State standards and guidance for
geometric design. Design speeds may be lower than legal speeds. Design
speeds lower than legal speeds may be used without the requirement of a
formal design exception, provided appropriate warnings are posted if
appropriate warning signs, signals, and markings are used as provided pursuant
to 23 V.S.A. § 1025.
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                                       ***
                  * * * Agency of Transportation Duties * * *
Sec. 16. 19 V.S.A. § 10 is amended to read:
§ 10. DUTIES
   The Agency shall, except where otherwise specifically provided by law:
                                       ***
      (8)(A) Require any contractor or contractors employed in any project of
the Agency for construction of a transportation improvement to file in the
office of the Secretary a good and sufficient surety bond to the State of
Vermont, executed by a surety company authorized to transact business in this
State in such the sum as required by the Agency shall direct, conditioned for
the compliance by the contractor or contractors and their agents and servants,
with all matters and things set forth and specified to be by the principal kept,
done, and performed at the time and in the manner in the contract between the
Agency and the contractor or contractors specified and to pay over, make
good, and reimburse the State of Vermont for all loss or losses and damage or
damages that the State of Vermont may sustain by reason of failure or default
on the part of the contractor or contractors. The Agency is authorized to
require any other condition in the bond that may from time to time be
necessary. The Secretary at his or her discretion as to may, if the Secretary
determines that it is in the best interest interests of the State, accept other good
and sufficient surety in lieu of a bond and, in cases involving contracts for
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$100,000.00 $250,000.00 or less, may waive the requirement of a performance
bond.
          (B) During an emergency event, the Secretary may, in the Secretary’s
discretion, waive the bonding requirements of this subdivision (8) for
immediate, temporary stabilization work related to public safety or State
infrastructure. Permanent work shall be subject to the requirements of
subdivision (A) of this subdivision (8).
        (9)(A) Require any contractor or contractors employed in any project of
the Agency for construction of a transportation improvement to file an
additional surety bond to the Secretary and the Secretary’s successor in office,
for the benefit of labor, materialmen, and others, executed by a surety company
authorized to transact business in this State. The surety bond shall be in such
the sum as required by the Agency shall direct, conditioned for the payment,
settlement, liquidation, and discharge of the claims of all creditors for
material,; merchandise,; labor,; rent,; hire of vehicles, power shovels, rollers,
concrete mixers, tools, and other appliances,; professional services,;
premiums,; and other services used or employed in carrying out the terms of
the contract between the contractor and the State and. The surety bond shall be
further conditioned for the following accruing during the term of performance
of the contract: the payment of taxes, both State and municipal, and the
payment of unemployment insurance contributions to the Vermont
Commissioner of Labor; provided, however, in.
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          (B) In order to obtain the benefit of the security, the claimant shall
file with the Secretary a sworn statement of the claimant’s claim, within 90
days after the final acceptance of the project by the State or within 90 days
from the time the taxes or unemployment contributions to the Vermont
Commissioner of Labor are due and payable, and, within one year after the
filing of the claim, shall bring a petition in the Superior Court in the name of
the Secretary, with notice and summons to the principal, surety, and the
Secretary, to enforce the claim or intervene in a petition already filed. The
Secretary may, if the Secretary determines that it is in the best interests of the
State, accept other good and sufficient surety in lieu of a bond and, in cases
involving contracts for $100,000.00 $250,000.00 or less, may waive the
requirement of a surety bond.
          (C) During an emergency event, the Secretary may, in the Secretary’s
discretion, waive the requirements of this subdivision (9) for immediate
emergency stabilization work related to public safety or State infrastructure.
Permanent work shall be subject to the requirements of subdivision (A) of this
subdivision (9).
                                        ***
                   * * * Bridge Inspections; Posting; Closure * * *
Sec. 17. 19 V.S.A. § 1514 is added to read:
§ 1514. BRIDGE INSPECTION; POSTING; CLOSURE
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   (a) Definition. As used in this section, “bridge” means a structure to which
the National Bridge Inspection Standards apply pursuant to 23 C.F.R.
§ 650.303.
   (b) Bridge inspections. The Agency shall inspect bridges on State
highways and town highways in accordance with the requirements of the
National Bridge Inspection Standards.
   (c) Municipally maintained bridges.
      (1) For a bridge for which a municipality has maintenance
responsibility, the Agency shall advise the municipality of its inspection
findings and any noted deficiencies.
      (2) The Agency shall notify a municipality if a bridge for which the
municipality has maintenance responsibility requires posting or closure and,
upon receiving notification, the municipality shall post or close the bridge, as
appropriate.
      (3) If necessary to protect the public from an imminent hazard, the
Agency may post or close a bridge for which a municipality has maintenance
responsibility.
      (4) A municipality shall be responsible for all costs and expenses related
to the posting or closure of a bridge for which it has maintenance
responsibility, including the costs of any required notifications, procedures,
signage or traffic control devices, and barricades.
   (d) Agency-maintained bridges.
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      (1) For any bridge for which the Agency has maintenance responsibility,
the Agency shall have the sole responsibility and authority to determine
whether the bridge shall be posted or closed, except that a municipality may
close an Agency-maintained bridge during an emergency.
      (2) If a municipality becomes aware of any deficiencies or structural
conditions that could impact the Agency’s determination of whether to post or
close a bridge, the municipality shall promptly notify the Agency.
      (3) The Agency shall be responsible for all costs and expenses
associated with posting or closing an Agency-maintained bridge, including any
required notifications, procedures, signage or traffic control devices, and
barricades.
   (e) Enforcement and penalties. In addition to any other penalties provided
by law, a person that violates a bridge posting or closure by a municipality or
the Agency shall be subject to a civil penalty of not more than $1,000.00.
Sec. 18. 23 V.S.A. § 2302 is amended to read:
§ 2302. TRAFFIC VIOLATION DEFINED
   (a) As used in this chapter, “traffic violation” means:
                                        ***
      (11) a violation of subsection 1006b(b) of this title, relating to operation
of a prohibited vehicle in Smugglers’ Notch; section 1006c of this title, relating
to requirements for use of tire chains; or subsections 4120(a) and (b) of this
title, relating to violations of an out-of-service order; or
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      (12) a violation of section 4123 of this title, relating to authorizing
railroad crossing violations; or
      (13) a violation of 19 V.S.A. § 1514, relating to use of a bridge in
violation of a posting or closure.
                                       ***
                  * * * Public Transit Advisory Council * * *
Sec. 19. 24 V.S.A. § 5084 is amended to read:
§ 5084. PUBLIC TRANSIT ADVISORY COUNCIL
   (a) The Public Transit Advisory Council shall be created by the Secretary
of Transportation under 19 V.S.A. § 7(f)(5), to and shall consist of the
following members:
                                       ***
      (8) a representative of the Community of Vermont Elders AARP
Vermont;
      (9) a representative of private bus operators and taxi services;
[Repealed.]
      (10) a representative of Vermont intercity private bus operators;
                                       ***
                 * * * Green Mountain Transit Authority * * *
Sec. 20. 24 App. V.S.A. ch. 801, § 7 is amended to read:
§ 7. ANNUAL BUDGET AND ASSESSMENTS
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   (a) On or before February 15 in each year, the Board of Commissioners
shall prepare a budget for the Authority for the next fiscal year, which shall
include an estimate of the revenue of the Authority from fares and other
sources, except membership assessments, and the expenses for the next fiscal
year, including debt service, and at such time the Board of Commissioners
shall call a meeting of the residents of its members for the purpose of
presenting the proposed budget and inviting discussion thereon. The meeting
shall be held at a place within the County and shall be warned by a notice
published in a newspaper of general circulation in the County at least 15 days
prior to the meeting. The notice shall contain a copy of the proposed budget,
and members of the legislative body of each member municipality shall be
notified of the meeting by certified mail. The proposed budget may include, in
addition to revenues from fares and other sources, anticipated voluntary local
match contributions, grants, donations, and other nonassessment revenues that
may be offered by a member municipality or another public or private source.
                                      ***
   (f)(1) The Authority shall be permitted to seek and accept voluntary local
match contributions.
      (2) Notwithstanding the formula for apportionment, the Authority may
accept voluntary local match contributions from a member municipality or
another public or private source for the purposes of:
          (A) meeting federal, State, or other grant matching requirements; and
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          (B) supporting Authority programs, capital projects, and operations.
      (3) A voluntary local match contribution accepted pursuant to this
subsection shall be in addition to any assessment required pursuant to this
section and shall not reduce, offset, or otherwise modify the assessment
apportioned to any member municipality pursuant to the formula for
apportionment unless the formula is amended in accordance with the
provisions of this section.
            * * * Public-Private Partnership Sunset Extension * * *
Sec. 21. 2018 Acts and Resolves No. 158, Sec. 21 as amended by 2023 Acts
and Resolves No. 62, Sec. 41 is further amended to read:
   Sec. 21. REPEAL OF TRANSPORTATION P3 AUTHORITY
   19 V.S.A. chapter 26, subchapter 2 shall be repealed on July 1, 2026 2029.
                        * * * Transportation Board * * *
Sec. 22. 19 V.S.A. § 5 is amended to read:
§ 5. TRANSPORTATION BOARD; POWERS AND DUTIES
                                       ***
   (d) Specific duties and responsibilities. The Board shall:
                                       ***
      (7) provide appellate review, when requested in writing by an applicant
or permittee, of Agency decisions and rulings regarding private and
commercial access to State highway rights-of-way pursuant to the permit
process established in section 1111 of this title;
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                                      ***
             * * * Transportation Alternatives Grant Program * * *
Sec. 23. 19 V.S.A. § 38 is amended to read:
§ 38. TRANSPORTATION ALTERNATIVES GRANT PROGRAM
   (a), (b) [Repealed.]
   (c) The Transportation Alternatives Grant Program is created. The Grant
Program shall be administered by the Agency and shall be funded in the
amount provided for in 23 U.S.C. § 133(h), less the funds set aside for the
Recreational Trails Program. Awards shall be made to eligible entities as
defined under 23 U.S.C. § 133(h), and awards under the Grant Program shall
be limited to the activities authorized under federal law and shall not exceed
$300,000.00 $600,000.00 per grant allocation.
                                      ***
   (f)(1) In fiscal year 2024 2027 and thereafter, 50 percent of Grant Program
funds, or such lesser sum if all eligible applications amount to less than 50
percent of Grant Program funds, shall be reserved for municipalities for
environmental mitigation projects relating to stormwater and highways,
including eligible salt and sand shed projects, and the balance of Grant
Program funds shall be awarded for any eligible activity, including
environmental mitigation projects relating to stormwater and highways, such
as eligible salt and sand shed projects, and infrastructure-related projects and
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systems that will provide safe routes for nondrivers, and in accordance with the
priorities established in subdivision (2) of this subsection.
      (2) In evaluating applications for Transportation Alternatives grants, the
Agency shall give preferential weighting to sand and salt shed projects and
projects involving as a primary feature a bicycle or pedestrian facility. The
degree of preferential weighting and the circumstantial factors sufficient to
overcome the weighting shall be in the complete discretion of the Agency.
                                       ***
Sec. 24. 2023 Acts and Resolves No. 62, Sec. 11 is amended to read:
   Sec. 11. TRANSPORTATION ALTERNATIVES GRANT PROGRAM
             AWARDS IN STATE FISCAL YEARS 2024 TO 2027
   Notwithstanding 19 V.S.A. § 38(c), Transportation Alternatives Grant
Program awards in State fiscal years 2024 to 2027 2026 shall not exceed
$600,000.00 per grant allocation. Notwithstanding 19 V.S.A. § 38(c),
Transportation Alternatives Grant Program awards in State fiscal year 2027
shall not exceed $1,200,000.00 per grant allocation.
            * * * Consultation Regarding Municipal Programs * * *
Sec. 25. MUNICIPAL TRANSPORTATION PROGRAMS; ONGOING
          EVALUATION; IDENTIFICATION OF IMPROVEMENTS
   (a) In addition to ongoing work pursuant to 2025 Acts and Resolves No.
43, Sec. 15, the Agency of Transportation, in consultation with the Vermont
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League of Cities and Towns and the Vermont Association of Planning and
Development Agencies, shall:
      (1) continue examining the requirements of 19 V.S.A. § 309c,
cancellation of locally managed projects, as set forth in 2025 Acts and
Resolves No. 43, Sec. 14, to evaluate the obligations, risks, and benefits
imposed by the provisions of that section on the State and the local sponsor of
a locally managed project and to identify potential changes to the provisions of
that section to ensure that State and federal transportation funding resources
are appropriately administered;
      (2) continue evaluating the State’s Town Highway Aid and municipal
grant programs administered by the Agency, as set forth in 2025 Acts and
Resolves No. 43, Sec. 16, to identify potential efficiencies and improvements
related to the administration of Town Highway Aid and municipal grant
programs; and
      (3)(A) examine the provisions in the Vermont statutes related to the
procedures for establishing speed limits; and
          (B) identify potential opportunities to simplify and clarify those
provisions to assist municipalities in meeting local needs, including safety and
context sensitivity.
   (b) The Agency shall, on or before January 15, 2027, submit to the House
and Senate Committees on Transportation any recommendations for legislative
action.
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                      * * * Drive Electric Vermont * * *
Sec. 26. DRIVE ELECTRIC VERMONT; APPROPRIATION
   In State fiscal year 2027, the sum of $242,000.00 is appropriated from the
Transportation Fund to the Agency of Transportation to support the
continuation of the Agency’s partnership with Drive Electric Vermont. The
monies shall be used for programs and activities that support increased
ownership and use of plug-in electric vehicles in the State through:
      (1) stakeholder coordination;
      (2) consumer education and outreach;
      (3) infrastructure development; and
      (4) the provision of technical assistance and support to Vermont
municipalities and Vermont businesses desiring to electrify their vehicle fleets.
                  * * * Caledonia County State Airport * * *
Sec. 27. 2023 Acts and Resolves No. 62, Sec. 8 is amended to read:
   Sec. 8. SALE OR LEASE OF CALEDONIA COUNTY STATE
           AIRPORT
                                      ***
   (c) Any such conveyance shall:
                                      ***
      (4) ensure that the Airport continues to be identified as a public-use
airport within the National Plan of Integrated Airport Systems until at least
2050, subject to federal determination;
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      (5) include, if the Airport is conveyed through a purchase and sale
agreement, a six-month right of first refusal, running from the date that the
owner of the Airport provides notice to the State of an intent to sell the Airport,
for the State to repurchase the Airport at fair market value before the Airport is
resold or transferred to a new owner; and
      (6)(5) include, if the Airport is leased, that the lease cannot be either
assigned or the lessor cannot sub-lease all or substantially all of the Airport
without the written approval of the Vermont Secretary of Transportation.
                                       ***
Sec. 28. 2023 Acts and Resolves No. 62, Sec. 9 is amended to read:
   Sec. 9. REPEAL OF AUTHORITY FOR SALE OR LEASE OF
           CALEDONIA COUNTY STATE AIRPORT
   Sec. 8 of this act shall be repealed on May 1, 2026 November 1, 2027.
                         * * * Medical Transports * * *
Sec. 29. PUBLIC TRANSIT DEMAND RESPONSE MEDICAL
          TRANSPORTS; VOLUNTEER DRIVERS; MOBILITY
          MANAGEMENT; GRANTS
   The Agency of Transportation is authorized to utilize amounts appropriated
for supplemental nonemergency medical transportation funding in fiscal year
2027 for the purpose of providing competitive grants to public transit agencies
to support the recruitment and retention of volunteer drivers and mobility
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management activities intended to reduce costs related to nonemergency
medical transports.
                 * * * Real-Time Status of Public EVSE * * *
Sec. 29a. 19 V.S.A. § 2901 is amended to read:
§ 2901. DEFINITIONS
   As used in this chapter:
                                     ***
      (2) “Charging network provider” means a person that operates the
digital communication network that remotely manages the EVSE at a charging
station.
      (3) “Charging station” means the area in the immediate vicinity of one
or more EVSE and includes the EVSE, supporting equipment, parking areas
adjacent to the EVSE, and lanes for vehicle ingress and egress. A charging
station may comprise only a portion of the property on which it is located.
      (4) “Charging station operator” means a person that owns or provides
the EVSE and the supporting equipment and facilities at one or more charging
stations and is responsible for operating and maintaining the EVSE, supporting
equipment, and facilities. A charging station operator may delegate to another
person or contract with another person for charging station operation and
maintenance.
      (5) “Connector” means a device that attaches EVSE to a PEV to transfer
electricity from the EVSE to the PEV.
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      (6) “Direct current fast charger” or “DCFC” means EVSE that enables
charging through the delivery of direct current electricity to a PEV’s battery.
      (7) “Electric bicycle” has the same meaning as in 23 V.S.A. § 4(46)(A).
      (3)(8) “Electric cargo bicycle” means a motor-assisted bicycle, as
defined in 23 V.S.A. § 4(45)(B)(i), with an electric motor, as defined under
23 V.S.A. § 4(45)(B)(i)(II), that is specifically designed and constructed for
transporting loads, including at least one or more of the following: goods, one
or more individuals in addition to the operator, or one or more animals. A
motor-assisted bicycle that is not specifically designed and constructed for
transporting loads, including a motor-assisted bicycle that is only capable of
transporting loads because an accessory rear or front bicycle rack has been
installed, is not an electric cargo bicycle.
      (4)(9) “Electric vehicle supply equipment (EVSE)” and “electric
vehicle supply equipment available to the public” have the same meanings as
in 30 V.S.A. § 201.
      (10) “Level 2 EVSE” means EVSE with a single-phase input voltage
range from 208 to 277 volts of alternating current (AC) and maximum output
current of not more than 80 amperes AC.
      (5)(11) “Plug-in electric vehicle (PEV),” “battery electric vehicle
(BEV),” and “plug-in hybrid electric vehicle (PHEV)” have the same meanings
as in 23 V.S.A. § 4(85).
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       (12) “Port” means a system or connecting outlet on EVSE that provides
power to charge a PEV, provided that a port may be equipped with more than
one connector but shall only use one connector at a time to provide power to a
PEV.
       (13) “Publicly funded and available charging station” means a charging
station that has received, or expects to receive, a grant, loan, or other incentive
from a federal or State government source or from funds provided by Vermont
retail electricity providers and that is publicly available.
Sec. 30. 19 V.S.A. § 2908 is added to read:
§ 2908. PUBLIC EVSE; REAL-TIME STATUS; AVAILABILITY
   (a) Except as provided in subsection (b) of this section, a charging network
provider shall, for any networked publicly funded and available charging
station in Vermont that is installed or reconditioned on or after September 30,
2026, ensure that the following data fields are made available, free of charge,
to third-party software developers via an application programming interface:
       (1) a unique charging station name or identifier;
       (2) the address of the property where the charging station is located,
including street address, city, and ZIP code;
       (3) the geographic coordinates in decimal degrees of the exact charging
station location;
       (4) the charging station operator name;
       (5) the charging network provider name;
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        (6) the charging station status, including whether the station is
operational, under construction, planned, or decommissioned;
        (7) charging station access information, including:
           (A) the charging station access type, such as whether it may be used
by the public or is limited to use by commercial vehicles; and
           (B) the charging station access days and times, including the hours of
operation for the charging station;
        (8) charging port information, including:
           (A) the number of charging ports;
           (B) the unique port identifier for each port;
           (C) the connector types available by port;
           (D) the charging level by port, such as DCFC or AC Level 2;
           (E) the maximum power delivery rating in kilowatts by charging
port;
           (F) the maximum output voltage by charging port;
           (G) accessibility by a vehicle with a trailer by port (yes/no); and
           (H) the real-time status by port in terms defined by Open Charge
Point Interface 2.2.1; and
        (9) pricing and payment information, including:
           (A) the pricing structure;
           (B) the real-time price to charge at each charging port, in terms
defined by Open Charge Point Interface 2.2.1; and
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           (C) the payment methods accepted at the charging station, including
whether credit, debit, or contactless forms of payment are accepted.
   (b) The provisions of this section shall apply to a publicly funded and
available charging station at all times that a member of the public may use the
associated EVSE to charge a PEV.
   (c) The provisions of this section may be enforced by:
      (1) any State agency or department that provides or administers grants,
loans, or other incentives to support the construction or operation of publicly
funded and available charging stations; and
      (2) the Department of Public Service for publicly funded and available
charging stations that have received a grant, loan, or other incentive provided
by one or more Vermont retail electricity providers.
   (d) A charging network provider may attach reasonable conditions to data
use that are designed to protect confidential business information, provided
that the conditions do not prevent third-party software developers from
accessing the real-time information required pursuant to subsection (a) of this
section.
   (e)(1) A State agency or department that provides a grant, loan, or other
incentive for the construction or operation of a charging station that is installed
or reconditioned on or after September 30, 2026, shall require the recipient to
notify the relevant charging network provider that the provisions of this section
apply to a charging station.
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      (2) A retail electricity provider, if it provides a grant, loan, or other
incentive for the construction or operation of a charging station that is installed
or reconditioned on or after September 30, 2026, shall require the recipient to
notify the relevant charging network provider that the provisions of this section
apply to the charging station.
   (f) As used in this section:
      (1) “Real-time” means that the applicable data field must be updated
within one minute following a change in the charging port’s status.
      (2) “Retail electricity provider” has the same meaning as in 30 V.S.A.
§ 8002.
          * * * EVSE Installation in Common Interest Communities * * *
Sec. 31. 27A V.S.A. § 1-204 is amended to read:
§ 1-204. PREEXISTING COMMON INTEREST COMMUNITIES
   (a)(1) Unless excepted under section 1-203 of this title, the following
sections and subdivisions of this title apply to a common interest community
created in this State before January 1, 1999: sections 1-103, 1-105, 1-106, 1-
107, 2-103, 2-104, and 2-121, subdivisions 3-102(a)(1) through (6) 3-
102(a)(1)–(6) and (11) through (16) (11)–(16), and sections 3-111, 3-116, 3-
118, 4-109, and 4-117 to the extent necessary to construe the applicable
sections. The sections and subdivisions described in this subdivision apply
only to events and circumstances occurring after December 31, 1998, and do
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not invalidate existing provisions of the declarations, bylaws, plats, or plans of
those common interest communities.
                                      ***
      (3) Unless excepted under section 1-203 of this title, section 3-125 of
this title shall apply to all common interest communities that contain 12 or
more units that may be used for residential purposes created in this State on or
before January 1, 2011. Section 3-125 applies only to events and
circumstances occurring after June 30, 2026, and does not invalidate existing
provisions of the declarations, bylaws, plats, or plans of those common interest
communities.
                                      ***
Sec. 32. 27A V.S.A. § 3-125 is added to read:
§ 3-125. ELECTRIC VEHICLE SUPPLY EQUIPMENT
   (a) As used in this section:
      (1) “Electric vehicle supply equipment (EVSE)” means a device or
system designed and used specifically to transfer electrical energy to a plug-in
electric vehicle.
      (2) “EVSE owner” means the unit owner who applies to install an EVSE
and each successive unit owner associated with the initial application to install
the EVSE unless there is a specific change in ownership of the EVSE, in which
case the EVSE owner shall be the owner specified in a conveying document
memorializing the change in ownership of the EVSE.
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      (3) “Plug-in electric vehicle” has the same meaning as in 23 V.S.A.
§ 4(85).
      (4) “Reasonable restriction” is a restriction that does not significantly
increase the cost of the EVSE or significantly decrease the efficiency or
specified performance of the EVSE.
   (b)(1) Any covenant, restriction, or condition contained in any deed,
contract, security instrument, or other instrument affecting the transfer or sale
of any interest in a common interest community, and any provision of a
governing document associated with a common interest community, such as a
declaration, bylaw, or rule, that either effectively prohibits or unreasonably
restricts the installation of EVSE within the boundaries of a unit owner’s unit
or limited common element or the unit owner’s exclusively designated parking
space or the use of such EVSE for noncommercial purposes by a unit owner or
the occupants of the unit owner’s unit or is in conflict with this section is void
and unenforceable.
      (2) This subsection shall not apply to provisions that impose reasonable
restrictions on EVSE. However, it is the policy of the State to promote,
encourage, and remove obstacles to the use of plug-in electric vehicles,
including access to EVSE at home.
      (3) Installation of EVSE shall not be deemed a division or reallocation
of a common element and shall not alter the allocated interests of any unit
owner.
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   (c) The association may require the unit owner to:
      (1) comply with federal, State, and local health and safety laws,
including any applicable building codes or safety standards;
      (2) comply with reasonable architectural standards adopted by the
association that govern the dimensions, placement, or external appearance of
the EVSE, provided that such standards shall not prohibit the installation of
such EVSE or substantially increase the costs thereof;
      (3) engage the services of a licensed electrician to install the EVSE;
      (4) if the EVSE is installed in a common element or limited common
element, reimburse the association for the actual costs of any increased
insurance premium amount attributable to the EVSE within 14 days after
receiving the association’s insurance premium invoice; and
      (5) comply with any other reasonable restrictions the association may
impose.
   (d) Notwithstanding any provision to the contrary in the association’s
governing documents, if the executive board of the association determines that
the cumulative or additional use of electricity due to the installation and use of
EVSE requires infrastructure improvements to provide a sufficient supply of
electricity for the EVSE, the association may assess the cost of the required
improvements against the unit of each unit owner that has installed, or will
install, EVSE.
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   (e) If approval is required for the installation or use of EVSE, the
application for approval shall be processed and approved by the association in
the same manner as an application for approval of an architectural modification
to the common interest community and shall not be intentionally avoided or
delayed. The approval or denial of an application shall be in writing. If an
application is not denied in writing within 90 days from the date of receipt of
the application, the application shall be deemed approved, unless that delay is
the result of a reasonable request for additional information.
   (f) The unit owner and each successive owner of the EVSE shall be
responsible for all of the following:
      (1) costs for damage to the EVSE, common element, or limited common
element resulting from the installation, maintenance, repair, removal, or
replacement of the EVSE;
      (2) costs for the installation, maintenance, repair, and replacement of the
EVSE until the EVSE has been removed and for the restoration of the common
element or limited common element after removal;
      (3) the cost of electricity associated with the EVSE; and
      (4) unless the successor owner of the unit agrees in writing to undertake
and comply with the unit owner’s responsibilities with respect to the EVSE,
removing the EVSE prior to the sale and restoring any affected common
element or limited common element.
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                    * * * Intelligent Speed Assistance * * *
Sec. 33. INTELLIGENT SPEED ASSISTANCE; IMPLEMENTATION AND
          COST EVALUATION; REPORT
   (a) The Department of Motor Vehicles shall examine the potential to
implement and administer an intelligent speed assistance program, including
the following issues:
      (1) intelligent speed assistance programs that have been or will be
implemented in other states and the District of Columbia;
      (2) costs for the State to implement an intelligent speed assistance
program; and
      (3) potential costs to drivers who choose to participate in an intelligent
speed assistance program.
   (b) On or before January 15, 2027, the Department shall submit a written
report to the House and Senate Committees on Transportation regarding its
findings and any recommendations for legislative action.
                        * * * Repeals; Log Drives * * *
Sec. 34. REPEALS; LOG DRIVES
   The following sections are repealed:
      (1) 25 V.S.A. § 241 (application of provisions);
      (2) 25 V.S.A. § 242 (petition to Public Utility Commission);
      (3) 25 V.S.A. § 243 (notice and hearing; decision);
      (4) 25 V.S.A. § 244 (judgment on decision); and
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        (5) 25 V.S.A. § 245 (bond of foreign corporation).
                           * * * Effective Dates * * *
Sec. 35. EFFECTIVE DATES
   (a) Secs. 8 (mileage-based user fee), 9 (infrastructure fee for plug-in
hybrids), 10 (initial transition for mileage-based user fee), and 30 (real-time
status requirements for public EVSE) shall take effect on January 1, 2027.
   (b) Notwithstanding 1 V.S.A. § 214, Sec. 28 (extension of authority to sell
Caledonia County State Airport) shall take effect retroactively on April 30,
2026.
   (c) The remaining sections shall take effect on July 1, 2026.
Date Governor signed bill: June 18, 2026
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