by Dave Soulia, for FYIVT.com

As of Tuesday, January 13, 2026 PM

Vermont lawmakers returned to committee rooms Tuesday afternoon to advance and preview legislation with potential long-term consequences for energy policy, local control, insurance regulation, and transportation funding. While much of the work remained technical or exploratory, several proposals raised broader questions about cost, authority, and whether existing policy frameworks are keeping pace with economic and infrastructure realities.

Energy Policy: Nuclear Returns to the Conversation

House Energy and Digital Infrastructure devoted significant time to an administration-backed proposal that would restructure Vermont’s Renewable Energy Standard (RES) by converting it into a broader “Clean Energy Standard.” Under the proposal, electricity generated by nuclear power would explicitly qualify toward compliance.

Supporters described the change as a cost-saving measure, noting that Vermont utilities already purchase nuclear power but must also buy renewable energy credits to meet current statutory requirements. By counting nuclear toward compliance, witnesses said utilities could avoid those additional purchases, producing projected savings in the tens of millions of dollars over the next decade.

Committee discussion, however, made clear that the proposal extends beyond simple accounting. Members flagged that redefining the standard could reopen long-standing policy debates around nuclear power in Vermont, including the treatment of nuclear waste, long-term decommissioning responsibilities, and whether statutory barriers to new nuclear development are being softened indirectly.

Several questions centered on whether the bill could create new siting pathways for future nuclear facilities, including emerging technologies such as small modular reactors. Members also raised concerns about transparency, noting that the proposal could shift the state’s energy trajectory without a broader public debate about the tradeoffs between renewable-only goals and cost containment.

While no votes were taken, the discussion signaled that energy affordability is increasingly being weighed against prior commitments to renewable exclusivity.

Telecommunications: Local Control Versus Statewide Infrastructure

The same committee also began formal consideration of extending a telecommunications siting statute scheduled to sunset in mid-2026. The law allows certain wireless facilities to bypass local zoning and Act 250 review in favor of approval by the Public Utility Commission.

Legislative counsel walked members through the existing framework, explaining that municipal plans receive “substantial deference,” but that final authority rests with the PUC. Projects approved under this process are exempt from local zoning, and the statute includes expedited timelines intended to accelerate broadband and wireless deployment.

The proposal would extend the law for an additional three years. Committee discussion highlighted a familiar tension: the state’s desire to speed infrastructure build-out versus local governments’ concerns about siting, aesthetics, and public input. Members noted that the law limits notice requirements in certain cases and compresses opportunities for appeal.

If extended, the statute would continue to centralize decision-making authority at the state level at a time when demand for wireless infrastructure is growing. Several members suggested the issue could merit broader attention beyond the committee, particularly from legislators representing towns affected by tower siting decisions.

Insurance Regulation: Technical Changes With Structural Importance

In House Commerce and Economic Development, lawmakers advanced a bill related to captive insurance and risk retention groups, an area where Vermont remains a national leader.

The bill makes technical statutory updates clarifying ownership structures and tightening disclosure requirements made under oath. While framed as cleanup, committee discussion emphasized the importance of maintaining clarity and predictability for an industry that contributes significantly to the state’s economy.

Members stressed that the goal is to preserve Vermont’s reputation as a stable and well-regulated domicile without expanding regulatory burdens or increasing oversight costs. The bill moved forward with little opposition, marking one of the first committee actions of the session to formally advance legislation.

Transportation: Revenue Signals Raise Long-Term Questions

The House Transportation Committee spent the afternoon reviewing vehicle registration and fuel consumption data, painting a mixed picture for future transportation funding.

Testimony showed that gasoline and diesel sales have largely flattened, while new and used vehicle registrations declined during 2025. Of particular note, electric vehicle sales fell for the first time in several years following the expiration of federal incentives.

Members openly discussed the implications for the Transportation Fund, which remains heavily reliant on fuel taxes. Several questioned how long-term infrastructure funding will be sustained if fuel consumption stagnates while electric vehicle adoption slows.

The conversation also touched on the gap between statutory clean transportation mandates and consumer behavior. Committee members acknowledged that policy targets assume steady growth in EV adoption that current market data may not support, raising questions about whether timelines or funding mechanisms need to be revisited.

Human Services: Governance Updates Move Forward

House Human Services began advancing a bill updating statutes governing community action agencies. The proposal modernizes terminology, updates planning references, and allows agency boards to set their own term limits rather than adhering to rigid statutory caps.

While largely described as noncontroversial, discussion highlighted how state law intersects with federal requirements and the increasing demands placed on agencies providing social services. Members emphasized the importance of flexibility as agencies respond to changing needs, particularly amid funding uncertainty and rising caseloads.

What to Watch

Tuesday afternoon’s committee work surfaced several issues likely to gain traction as the session progresses:

• Energy cost pressures are pushing lawmakers to reconsider long-settled policy boundaries, including nuclear power’s role in Vermont’s energy mix.
• Telecommunications siting continues to test the balance between statewide infrastructure goals and local land-use authority.
• Transportation funding assumptions may no longer align with market realities as fuel sales flatten and EV growth slows.
• Technical regulatory bills, particularly in insurance and human services, continue to quietly shape governance and cost structures.

As committees reconvene later this week, these topics are expected to move from exploratory discussion toward more concrete legislative action. Legislators not directly involved in these committees may want to take note, as the implications extend well beyond the panels where the conversations began.