Bills, news rules impact cost of fuel, fuel storage, overtime pay, credit card usage
by Matt Cota
Later this afternoon, Governor Phil Scott will deliver his annual budget address to the Legislature and release his proposed spending plan, as state lawmakers prepare for what is expected to be the tightest budget year in recent memory. On Friday, state economists reported that revenues remain largely unchanged from July—steady, but barely keeping pace with inflation as costs continue to rise much faster.
Transportation revenues are projected to grow by less than 2%, even as construction costs have jumped roughly 60% over five years. Education fund revenues are expected to increase by about 3%, well below anticipated growth in school spending. At the same time, Vermont is losing federal funds and faces potential Medicaid-related reductions that could increase state healthcare costs.
Demographics compound these financial pressures. By 2030, one in three Vermonters will be over 65, contributing to fewer students, higher healthcare costs, and mounting housing demand.
Tank Rules
Changes could be coming to Vermont’s Petroleum Cleanup Fund, including updates to deductibles, definitions, and loan terms. One proposal would create a new category of gasoline dealer called a “Small Underground Storage Tank Owner.” If enacted, the provision would apply to owners of five or fewer Category One tanks. For purposes of this definition, each manifolded tank and each individual compartment would be counted separately.
The goal is to increase representation of small dealers on the Petroleum Cleanup Fund Advisory Committee and to keep deductibles for smaller dealers at $10,000. Larger gasoline distributors would see their deductible increase from $10,000 to $25,000. The deductible for underground heating oil tanks and aboveground bulk storage of heating or motor fuels would increase from $10,000 to $17,500.
Other proposed changes would clarify the interest rate for the Underground Storage Tank Loan Assistance Program and reaffirm that residential aboveground storage tanks must be fully removed before receiving financial assistance for a wood or electric heating appliance.
The combined federal and state tax on gasoline sols in Vermont is 50-cents per gallon in the first quarter of 2026. Most of the money goes directly to maintaining and improving our roads, bridges, and transportation infrastructure. There are also fees on electric vehicles that pay for EV infrastructure. Learn more about the Vermont gas tax, diesel tax, and EV Infrastructure fee here.
Montpelier Notebook
Lawmakers are considering letting Vermonters skip a year when it comes to getting their vehicle inspected. Proposed legislation would require that motor vehicles be inspected every two years, instead of annually. Another bill would eliminate them entirely. That’s what New Hampshire and about a dozen other states have already done. The topic was discussed in depth with the Morning Drive Team on WVMT last week. Listen to the segment here.
New legislation (S.171) proposes the creation of a Clean Fuels Program aimed at reducing greenhouse gas emissions from transportation fuels. On paper, the bill sets a target of reducing emissions by at least 10% below 2018 levels by 2030. While it doesn’t directly impose a tax or fee, it would raise money indirectly through a credit and trading system—similar to cap-and-trade models in other jurisdictions.
A handful of labor laws, loaded with unintended consequences for Vermont businesses, are on the agenda in Montpelier. One proposal (H.570) would require employers to pay time and a half for any hours worked past 8 hours in a day and double time for any hours worked over 12 hours.
