Lawmakers Debate New Mandates, Fees and Spending Across Committees — May 12
Committees across the legislature on May 12 held hearings that featured multiple proposals with mandates, spending impacts and regulatory changes. Top items discussed included energy-related payments and virtual power plant requirements for large data centers, proposed school governance and education funding changes tied to Act 73, a mix of housing and zoning reform approaches, stewardship rules for a proposed beverage container producer responsibility organization, and several appropriations requests for emergency communications infrastructure.
Senate Finance — data center requirements, education changes, and fees
The Senate Finance Committee considered language affecting data centers that would require them to make annual “energy transformation payments” to electric companies’ managed funds to finance energy transformation projects eligible under the renewable energy standards. Committee discussion described the payment amount as equal to 60% of a data center’s prior calendar year electricity usage multiplied by the alternative compliance payment rate under the Renewable Energy Standards. Members also discussed a separate estimate that such payments would total roughly $6 million to $7 million annually, with testimony noting those payments would be made by data centers to electric companies and would not represent state funds.
Finance members reviewed draft provisions that would require data centers to participate in a utility-managed virtual power plant where available and, if not, to design and operate a self-managed virtual power plant in coordination with the electric company. The committee’s draft also specified that funds used to build those virtual power plant assets could not come from the required energy transformation payments nor rely on ratepayer- or state-funded programs.
The committee discussed definitions that would treat multiple non-adjacent sites under central management as a single facility for the 20-megawatt threshold, and contractual provisions for large-load service equity contracts addressing allocation of costs and contributions to embedded system costs, stability, efficiency and resiliency.
On education, Finance reviewed many provisions tied to Act 73. Members discussed changes to small‑school support grant eligibility based on average grade size rather than total pupil count, study committee participation requirements including a good‑faith participation mandate and associated reporting timelines, and provisions that would pause enforcement of class-size minimums for public and approved independent schools until the foundation formula provisions take effect.
House General & Housing and General & Housing (afternoon) — zoning, housing supply, and cost drivers
House General & Housing received testimony on housing supply and zoning reforms from national policy groups and researchers. Witnesses described supply constraints, permitting delays and construction cost pressures, noting long permitting timelines and developer pipeline issues. Committee members reviewed jurisdictional approaches used by other states, including mixed‑finance projects, reduced lot size requirements, accessory dwelling unit allowances, and administrative approvals for certain nonprofit or religious-sponsored affordable housing.
Speakers discussed conditioning state funding on measurable local performance and use of state preemption of zoning in several states. Committee discussion addressed equity and local authority, and steps states have taken to streamline third‑party reviews, inspections, and financing tools to accelerate multiunit development.
House Energy & Digital Infrastructure — nuclear issues and bills H.710 and H.73
The House Energy & Digital Infrastructure Committee heard lengthy testimony on nuclear power from advocates and opponents, focusing on relicensing, small modular reactor proposals, decommissioning and oversight by the Nuclear Regulatory Commission and the Department of Energy. Witnesses raised concerns about licensing timeframes, environmental review, safety questions tied to aging plant components, and cost escalation in past nuclear projects.
Committee members noted H.710 and H.73 as bills under consideration; H.710 was identified as returning to the committee with potential amended language, and H.73 was mentioned as active in the Senate with anticipated changes.
House Human Services — S.206 professional licensure and funding clarification
The House Human Services Committee reviewed S.206, a bill addressing professional licensure for early childhood education. Testimony outlined a Sunrise review that found potential harm from the profession being unregulated and that licensure could balance public protection with workforce retention. Committee members addressed a $150,000 appropriation question: appropriations had proposed reverting $150,000 from the Office of Racial Equity back to the bill, but agency memos indicated the Office of Racial Equity funds could be used for the intended purpose, leading appropriations to plan to withdraw its amendment and leave the funds in place.
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Senate and House Education — governance, technology pause, teacher pathways
Education committees in both chambers took up several items. Senate Education considered amendments and a draft amendment process related to H.95/H.955 and raised questions about the Finance Committee’s handling of education funding and tax aspects of those bills. The Senate education panel reviewed a proposed two‑year pause on use of chatbots in schools, replacing an earlier prohibition with a “pause” and providing principals or heads of school authority to exempt specific chatbots deemed educationally warranted. The committee also discussed modifications to provisions governing law enforcement access under certain warrants.
House Education held testimony on absenteeism policy, school prevention advisory council changes and school workforce initiatives. Witnesses from Vermont State University and community colleges described a new online elementary education bachelor’s program with dual licensure and apprenticeship pathways intended to address teacher workforce needs.
House Appropriations and Senate Appropriations — emergency communications, ARPA oversight, and other spending
Appropriations committees examined proposed spending items and carryforward balances. House Appropriations members reviewed a $4.8 million regional emergency communications project budget submitted from Central Vermont entities, noting prior RFIs and vendor pricing tied to equipment, microwave links and other infrastructure. Committee members discussed task force recommendations from the emergency management bill and federal grant coordination. Witnesses said additional grant support and local capital had been identified and that the full statewide land mobile radio upgrade was projected at a substantially higher multi‑million dollar figure.
Appropriations panels also discussed state ARPA and general fund conversions, reporting that about $1.049 billion had been allocated under state and local fiscal recovery funds and that remaining expenditure deadlines and subaward timelines required monitoring. Committees reviewed a range of converted and ongoing programs with unspent balances and the administrative complications of multiagency invoicing and closeouts.
House Environment and Environment committee sessions — producer responsibility, PFAS, and wildlife rule changes
Environment committees considered extended producer responsibility and a proposed producer responsibility organization (PRO) for beverage containers. Committee discussion focused on plan approval by the Agency of Natural Resources, plan content, redemption center requirements and flexibility for redemption locations, and reporting obligations for redemption centers and PROs. Members debated retailer participation, use of reverse vending machines, and metrics for underserved areas; the Senate version would delay some exemptions until 2029 after a PRO plan is in place.
Legislative counsel and department staff also reviewed an amended bill (draft 6.1) covering multiple topics: changes to hunting and wildlife violation classifications for deer and bear seasons, amendments to Champion Lands provisions, and added enforcement authority and alignment for PFAS consumer product rules. The committee considered moving some infractions between 10‑ and 20‑violation categories and aligning statutory text with agency rules and appendices. House Environment also heard student testimony urging dedicated climate funding mechanisms and expanded EPR approaches.
Other notable items
Several committees referenced named bills and acts in discussion. Senate Finance and other panels repeatedly referenced Act 73 in conversations about education funding and related implementation timelines. The Energy panel signaled forthcoming testimony on H.710. Appropriations discussion noted H.935 and S.243 in relation to task force recommendations and language adjustments.
Conclusion
This report covers committee activity on May 12, 2026, across the Senate and House committees identified, including Senate Finance, House General & Housing, House Energy & Digital Infrastructure, House Human Services, House and Senate Education, House and Senate Appropriations, and House and Senate Environment. Committee deliberations addressed mandates for data centers and energy payments, education governance and funding tied to Act 73, housing and zoning reforms, proposed producer responsibility and PFAS regulatory alignments, and multiple spending and appropriations matters including emergency communications and ARPA program closeouts.
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