Legislative Update: Where We Are Mid-Session

AIA Vermont Legislative Update

An Update from John Alden, AIAVT’s Public Policy Committee Chair: 

We are just past the halfway point for this year's legislative session. Montpelier is busy, even if challenged by difficult budget issues for construction and education. The PPC has been following bills related to the Statute of Repose, RBES/CBES, Building Codes, and Construction Funding for Education. Unfortunately, many of our key issues have stalled or are facing a disinterested legislature that is overwhelmed by larger concerns. I’ll give a quick summary, but please read Andrew's Legislative Update below for the full story.

Statute of Repose: We have taken advantage of a bill introduced this year to grow awareness and build support. We were able to testify in committee and speak proactively to legislators about the need for this protection for architects. Questions remain about how to word it, how long the time period would be, and other considerations. It failed to make it out of committee before crossover, but we have a sponsor and several others who are willing to reintroduce it next year.  It was expected to be an issue that would take a few years. We are very happy with the exposure and progress. This issue is consistently the highest priority on our member surveys. There will be more to do on this next year- please be ready to help when the time comes. 

RBES/CBES: While the AIAVT has an internal recommendation to design to 2024 Energy Codes even if the Governor ordered a return to the 2020 version, there is still much debate about what is technically correct and morally right. Activity this session was started after the Attorney General issued an opinion that the Governor likely did not have the authority to change the rules. A legislative "fix" is in the works to give the Governor's order legitimacy.  AIAVT continues to favor systemic changes to how the Energy Code is handled, but we are supportive of the administration's efforts to pause while the true impact of changes are studied and a functional project certification process is delivered along with the Code book. As this passes, it still leaves plenty of work ahead for us to land on a sustainable energy code program and support structure.

Residential Building Code (H.718): Also of importance to VT Architects, parts of this bill reflect elements of a progression from where we were several years ago (no contractor registry/no residential building code), to having all of those things. Many support this; the Governor has strongly opposed any further regulation or impediment to building housing. There is general support for the concepts, but the details and costs may prevent this from being successful.

School Construction Aid: There is general awareness that something must be done to help shore up the aging school infrastructure, but funding remains the issue. There are far too many other problems with school districting and overall funding for this to be able to get traction during this session. David Epstein, AIAVT continues to be on workgroups and provide guidance to legislators and others as this topic dominates the statehouse.

ACT250 and Act 181 changes: They sounded good when passed last year, but the devil is always in the details. Implementation of rules made last year regarding the proposed tier system, road length rules, and so on are being heavily scrutinized and possibly adjusted. It may simply take more time to get this right. See Andrew's review for more details.

Andrew Brewer of DRM Provided this Update: 

The Legislature has now moved past “crossover”—the point in the session when bills must advance out of their chamber of origin to remain active. From here, surviving bills head to the opposite chamber for further review and negotiation.

At this stage, two issues are dominating the State House: education/property taxes and Act 181 implementation. These conversations are shaping the broader policy and funding environment that ultimately drives development and the built environment.

Education Reform & Property Taxes – The Center of Gravity

This is the gravitational center of the session.

Lawmakers are balancing immediate pressure to moderate property tax increases with a broader recognition that Vermont’s education system is not sustainable in its current form.

The short-term approach is clear: use one-time funds to buy down the tax rate—but there are different views on how to do it. The House is proposing to use roughly $100+ million to smooth rates over two years, while the Governor has leaned toward a more front-loaded reduction this year.

Either approach helps in the moment, but neither is a long-term fix.

The structural conversation remains unsettled. The Senate is exploring more top-down approaches, while the House is advancing a regional shared-services model (CESAs). The key takeaway is that this work is just beginning and will extend beyond this session.

What’s notable—and relevant for AIA members—is that school infrastructure is not yet central to this debate. That creates both a risk and an opportunity: major decisions are being made without a parallel conversation about the buildings that support the system.

School Construction – Don’t Lose the Moment

There is increasing acknowledgment that many school buildings are aging, inefficient, and not aligned with modern needs. Vermont is widely understood to have one of the oldest school facility portfolios in the country, with estimated capital needs in the $5–6 billion range. And yet, there is still no consistent, forward-looking framework for planning and funding those investments.

Right now, that conversation is secondary to governance and finance—but it shouldn’t remain that way.

As policymakers redesign the education system, there is a clear opening to elevate the role of the built environment. AIA Vermont has been at the table in these discussions, and architects are well-positioned to help shape what comes next.

Act 181 & S.325 – Pressure Building

The other major storyline is Act 181 implementation—Vermont’s effort to shift Act 250 toward a more location-based system—particularly the road rule and Tier 3 mapping.

What was once a technical, inside-the-building process is now a public, politically charged issue. Attention has surged—especially in rural communities—driving strong reactions and increasing pressure on legislators.

S.325, which passed the Senate, would delay the road rule and Tier 3 implementation, extend interim exemptions, and allow more time for rulemaking and outreach.

There is general agreement that more time is needed, but not on how far to go. The House is expected to take a close look, and this will remain a closely watched land use issue.

H.718 – Energy Codes & Building Framework

H.718 has passed the House and is now in the Senate. The bill studies a potential residential building code, expands municipal energy code enforcement, and creates a contractor registry and training framework. Its path forward is uncertain, as funding was stripped and may not be restored.

While less prominent than other issues, it remains an important step toward a more consistent building code framework. AIA Vermont remains engaged and focused on ensuring the final result is clear and workable.

RBES / CBES Rules – LCAR Action

The updated RBES and CBES rules cleared their final hurdle this week, as LCAR—reviewing a rule tied to the Governor’s Executive Order allowing use of prior code standards during the transition—declined to take action, allowing the rules to proceed toward adoption.

The rules can now be finalized, with an effective date likely later this summer. However, questions around the transition and application of standards remain in the near term.

For architects and builders, the takeaway is straightforward: clarity is still catching up to policy. AIA Vermont has been engaged throughout, emphasizing the need for a system that is both high-performing and workable in practice.

Statute of Repose – Teed Up, Not Gone

The Statute of Repose proposal did not make crossover this year, but it also did not stall out.

There is now a much stronger level of understanding among legislators, and the issue is firmly on the radar. Committee engagement this year reflects the impact of sustained outreach by AIA Vermont and its members.

The path forward is to continue refining the proposal—particularly around manufacturing language—and return next year with broader alignment. This was a year of building momentum.

Closing

The final weeks of the session will be driven by education funding, Act 181, and a small number of remaining priority bills.

While adjournment typically lands in mid-May, the timeline this year is less predictable, with the Governor signaling he will not leave Montpelier without an education bill he can sign.

AIA Vermont will remain engaged through the finish and continue to keep members informed.