A bill introduced in the Vermont Senate would significantly restructure how the state administers its three-acre stormwater discharge permit, a regulatory program that has quietly affected hundreds of property owners since its creation under Act 64 of 2015.

The proposal, introduced by Sen. Terry Williams, targets long-standing complaints about how the Agency of Natural Resources (ANR) has identified properties subject to the permit, how compliance has been scheduled, and how the designation has affected property sales and financing. Supporters say the bill is intended to correct administrative flaws without repealing the underlying stormwater protections.

What the three-acre rule is

Under current law, properties with three or more acres of impervious surface—such as roofs, parking lots, and driveways—may be required to obtain a stormwater discharge permit, even if that development occurred decades ago. The program was designed to address runoff from older development that predates modern stormwater standards, particularly runoff contributing phosphorus to Vermont’s lakes and rivers.

ANR has relied heavily on geographic information system (GIS) data to identify parcels believed to meet the three-acre threshold. Once identified, property owners may be required to apply for permit coverage and install stormwater treatment systems, often at substantial cost.

What the bill would change

The proposed legislation would overhaul how that process works.

First, it would require ANR to conduct an on-site visit of every parcel identified by GIS data before confirming that a property is actually subject to the three-acre permit. Lawmakers cite cases where properties were flagged incorrectly, including parcels where impervious surface was overestimated or public roads were counted against private landowners.

Second, the bill would require ANR to rank all qualifying parcels statewide according to their actual impact on water quality. Factors would include proximity to surface waters, slope, soil type, drainage characteristics, and existing stormwater controls.

Only parcels ranked in the top 10 percent of water-quality impact would be required to obtain a permit immediately. The remaining parcels would be permitted on a schedule determined by severity of impact, rather than a fixed, statewide timeline.

Municipal and State roads would explicitly be excluded from impervious surface calculations for private property, addressing a recurring complaint from landowners whose properties crossed the three-acre threshold largely because of adjacent public infrastructure.

A pause and reset

The bill would also pause enforcement of the existing three-acre permitting program while ANR develops new rules and a revised general permit consistent with the legislation. Properties previously identified as requiring a permit—including those with pending applications—would be placed on hold until the new framework is adopted.

Property owners who voluntarily wish to proceed with stormwater improvements during the pause could still do so under an individual permit.

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Title and real estate impacts

One of the most consequential provisions for property owners lies outside environmental law entirely.

The bill would amend Vermont’s property statutes to clarify that failure to obtain or comply with a three-acre stormwater discharge permit does not create an encumbrance on title and does not affect the marketability of real estate. Lawmakers note that, in practice, the designation has been treated as a cloud on title, complicating or halting property sales and financing even though the permit was never intended to function as a lien.

Sellers would still be required to disclose the permit status of a property prior to sale, but failure to do so would not invalidate title.

Why it matters to people who don’t think it applies to them

Although the three-acre rule applies to a relatively small subset of parcels, its effects often surface unexpectedly—during refinancing, property transfers, or commercial redevelopment. Many affected properties were built long before stormwater regulation existed, and owners report learning about the requirement only when a transaction is underway.

The costs associated with compliance can range from tens of thousands to hundreds of thousands of dollars, depending on site conditions and treatment requirements. Critics argue that imposing those costs uniformly, without regard to actual water-quality impact, has strained small businesses, family-owned properties, and nonprofit organizations.

By shifting the program toward site verification and impact-based prioritization, the bill attempts to focus limited public and private resources on the parcels that contribute the most pollution, while deferring or reducing burdens on lower-impact sites.

Public outreach requirement

The proposal would also require ANR to conduct at least one public hearing in each county within 120 days of the bill’s effective date. At those hearings, the agency would be required to explain the history and purpose of the three-acre rule, outline changes made by the legislation, and take public questions and testimony.

Supporters say this provision reflects widespread confusion about the program and aims to rebuild public trust.

What happens next

If enacted, the bill would not eliminate the three-acre stormwater permit, but it would substantially change how and when it applies. ANR would be required to submit its proposed rules and general permit to legislative committees for review before final adoption.

The bill is now before legislative committees, where lawmakers are expected to hear testimony from ANR, municipal officials, property owners, and environmental groups in the coming weeks.

For many Vermonters, the measure represents an attempt to reconcile water-quality goals with administrative accuracy, property rights, and economic reality—without abandoning the state’s broader clean-water commitments.

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Dave Soulia | FYIVT

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