An act relating to potable water supply and wastewater system connections

Section 4a requiring the Secretary's Technical Advisory Committee to report by January 15, 2027 on overshadowing of property by potable water supplies and wastewater systems (isolation distances extending onto neighboring property) is removed entirely.

Section 3(k)(2) through (k)(5), which authorized specific general permits for subdivisions with no buildings, boundary line adjustments, potable water systems under 1,000 gpd without variance or yield testing, and wastewater systems under 1,000 gpd without innovative technologies, are replaced by a single provision allowing the Secretary to adopt general permitting programs for activities determined to be 'low risk, low impact, and low complexity.'

The flat $500 fee for projects permitted under a municipal connection general permit is replaced with tiered fees based on design flow: $250 for flows below 2,000 gpd, $2,500 for flows between 2,000 and 6,500 gpd, and $5,000 for flows above 6,500 gpd.

A new Section 6 adds an implementation schedule: the Secretary must publish the general permit and manual by December 1, 2027; acceptance of certifications under the general permit begins January 1, 2028; and specific provisions of the DEC Wastewater System and Potable Water Supply Rules (subdivisions 1-304(15)-(16), 1-603(b)(2), and 1-603(b)(8)-(10)) are repealed on January 1, 2028.

In the delegation section (Section 4), the requirement that delegated municipalities 'submit required documentation of the permitted project as determined by the Secretary' is removed from the conditions for delegation of technical review authority. The language also changes from 'shall only issue permits' to 'will only issue permits' and broadens the technical review delegation from 'proposed projects that include both municipal potable water supply and municipal wastewater system connections' to simply 'municipal potable water supply and wastewater system connections.'

The mandatory general permit under 10 V.S.A. section 1973(k)(1) is narrowed from covering 'both potable water supply and wastewater system connections that require a permit under this chapter' to only 'municipal potable water supply and wastewater system connections that are reviewed by municipalities with authority delegated to them pursuant to section 1976.' This limits the general permit to projects handled by delegated municipalities rather than all connection projects statewide.

In the fee schedule at subsection (j)(4)(A), the qualifier 'that is not a potable water supply or wastewater system connection' is removed from the description of projects subject to the standard application fee tiers. This means connection projects are no longer explicitly excluded from those fee categories.

Subsection (k)(2) previously required the Secretary to determine that additional general permitting programs be 'low risk, low impact, and low complexity.' The official version removes this qualifier and instead requires the Secretary to adopt such programs 'by rule' for 'other activities permitted under this section,' giving the Agency broader discretion without a statutory risk threshold.

The delegation section title changes from 'DELEGATION OF CONNECTION PERMITTING AUTHORITY TO MUNICIPALITIES' to 'DELEGATION OF CONNECTION AUTHORITY TO MUNICIPALITIES,' and the technical review delegation language is simplified by removing the requirement that delegated municipalities incorporate the Secretary's general permit requirements into their municipal connection approval process, including deference to licensed designer certifications.

The fee for general permit connection applications is changed from a tiered structure ($250 for flows below 2,000 gpd, $2,500 for 2,000-6,500 gpd, and $5,000 for above 6,500 gpd) to a flat $500 fee. The fee also now covers projects permitted under both section 1973(k)(1) and (k)(2).

Section 5 now amends only subsection (j) of 3 V.S.A. section 2822 (the fee schedule) rather than the entire section, which previously included the fee exemption and municipal cost-recovery provisions in subsection (i). The implementation and rule repeal provisions are restructured into the full enacted text portion of the official version rather than appearing as a standalone amendment section.

The general permit under 10 V.S.A. 1973(k)(1) was expanded from applying only to connections reviewed by delegated municipalities to applying to ALL potable water supply and wastewater system connections that require a permit under the chapter.

New general permit categories added: (k)(2) for subdivision of land with no existing or proposed building; (k)(3) for boundary line adjustments on improved or unimproved lots; (k)(4) for potable water systems under 1,000 gpd not requiring variance, hydrogeologic analysis, or yield testing; and (k)(5) for wastewater systems under 1,000 gpd not requiring variance, hydrogeologic analysis, or innovative technologies.

Entirely new Section 7 (10 V.S.A. 1263(k)) authorizes the Secretary to enter agreements with publicly owned treatment works owners to delegate pretreatment discharge regulation authority, including setting fees and establishing civil, criminal, or administrative penalties.

New Section 4a requires the Technical Advisory Committee to report by January 15, 2027 on overshadowing of neighboring property by potable water supplies and wastewater systems, including scientific basis, alternatives, frequency data, and recommendations for ANR action.

Delegated municipalities now have an additional requirement (E) to submit required documentation of permitted projects as determined by the Secretary, and the capacity requirement was strengthened from 'will only issue' to 'shall only issue' permits when adequate capacity exists.

New Section 8 makes the municipal pretreatment authority in Section 7 contingent on EPA notifying ANR that it is authorized to enter such agreements under the NPDES Memorandum of Agreement.

The simple July 1, 2026 effective date was replaced with a phased implementation: general permit and manual due December 1, 2027; acceptance of certifications begins January 1, 2028; certain rule exemptions repealed January 1, 2028; the act otherwise takes effect on passage.

The flat $500 fee for general permit connections was replaced with tiered fees: $250 for design flows below 2,000 gpd, $2,500 for 2,000 to 6,500 gpd, and $5,000 for greater than 6,500 gpd.

The $50 fee cap for projects in designated Vermont neighborhoods (3 V.S.A. 2822(j)(4)(D)) was repealed, effective July 1, 2026.

Municipalities conducting technical review of connections under delegated authority may charge fees for municipal services but must pay a $100 administrative processing fee to the Secretary for documentation submission.

The definition of 'potable water supply' was clarified to remove the prior reference to chapter 56 permitting and instead state it does not include supplies subject to regulation under chapter 56. The wastewater system definition was also slightly reworded for clarity regarding internal piping exclusions.

The general permit under section 1973(k)(1) was expanded from covering only connections reviewed by delegated municipalities to covering all potable water supply and wastewater system connections that require a permit under the chapter. The Secretary may now give deference to applications certified by a licensed designer under this broader general permit.

The definition of 'potable water supply' was broadened by removing the qualifier that a service connection to a public water system must not require a permit under chapter 56. It now simply includes any service connection to a public water system of any size.

The standard fee schedule in subsection (j)(4)(A) now explicitly excludes potable water supply and wastewater system connections, which are instead covered by the new tiered general permit fees in subsection (j)(4)(E).

The Secretary is now required to publish a manual providing guidance to licensed designers implementing the general permit, including guidance for determining or defining the capacity of a public water system or pollution abatement facility for approving connections.

The criteria for additional general permitting programs under section 1973(k)(2) were tightened: the Secretary may now only adopt them for activities determined to be 'low risk, low impact, and low complexity,' and the requirement to adopt them 'by rule' was removed.

Delegated municipalities are now explicitly required to incorporate the requirements of the Secretary's general permit into their municipal connection approval process, including deference to applications certified by a licensed designer.

A new subsection (i) was added to 3 V.S.A. section 2822 establishing that municipalities are exempt from most ANR fees, may charge user fees for certain services, and must pay a $100 administrative processing fee when submitting documentation of municipally permitted projects to the Secretary.

The general permit fee was changed from a flat $500 per application to a tiered structure: $250 for design flows below 2,000 gpd, $2,500 for flows between 2,000 and 6,500 gpd, and $5,000 for flows greater than 6,500 gpd.

A new Section 6 establishes an implementation timeline: the Secretary must publish the general permit and manual by December 1, 2027; acceptance of certifications under the general permit begins January 1, 2028; and specific provisions of the DEC's Wastewater System and Potable Water Supply Rules (subdivisions 1-304(15)-(16), 1-603(b)(2), and 1-603(b)(8)-(10)) are repealed on January 1, 2028.

The purpose statement in section 1971 was changed to describe delegation as being 'pursuant to general permits adopted under this chapter' rather than 'pursuant to the rules of the Agency adopted under this chapter,' aligning the statutory language with the expanded general permit approach.