Telecommunications, Utilities & Infrastructure
Lawmakers focused on rising electric demand, ratepayer protection, renewable energy siting, data centers, broadband access, copper network retirement, and telecommunications taxes. Targeted energy measures advanced, but broader data center and telecom proposals largely failed, leaving many infrastructure questions for future sessions.
Regulated Utilities / Energy
S.202 – Plug-In Solar
S.202 establishes a framework for “plug-in solar” systems—small solar generation units that can be connected to a standard electrical outlet and used by homeowners and, in some cases, renters and apartment residents who may be unable to install traditional rooftop solar. The bill allows qualifying systems to be installed without a Certificate of Public Good from the Public Utility Commission, provided they comply with nationally recognized UL and IEEE safety and technical standards governing equipment performance, anti-islanding protections, and grid safety. Consistent with UL 3700 requirements, systems must be connected to a dedicated electrical circuit. Supporters argued the bill expands access to solar generation while relying on established standards to protect utility workers, customers, and the electric grid.
H.710 – Solar Siting and Decommissioning
H.710 addresses the siting and lifecycle management of solar projects by clarifying how the Public Utility Commission should determine when multiple installations constitute a single “plant” for permitting purposes and by establishing guidelines for project co-location. The bill seeks to prevent larger projects from being divided into smaller facilities to avoid regulatory requirements while providing greater certainty for developers, municipalities, and regulators. It also establishes new decommissioning funding requirements to ensure resources are available for facility removal and site restoration at the end of a project’s useful life and requires additional reporting on decommissioning practices. The Committee of Conference added a study examining the relationship between solar development and Vermont’s prime agricultural soils, reflecting ongoing concerns about balancing renewable energy development with farmland protection.
Regional Renewable Energy Market Report
The FY2027 budget directs the Public Utility Commission to report by January 2027 on projected regional renewable energy market conditions and the cost and availability of new renewable electric generation resources between 2027 and 2035. In preparing the report, the Commission will solicit input from utilities, renewable energy developers, regional transmission organizations, consumer advocates, and other stakeholders. The study reflects growing legislative interest in the availability and cost of future clean energy resources as electricity demand continues to increase.
Clean Heat Standard
The Clean Heat Standard effectively collapsed during the 2025-2026 biennium after becoming one of the most politically contentious policies enacted by the Legislature’s former supermajority. Originally adopted over Governor Scott’s veto in 2023, the program was intended to reduce emissions from fossil-fuel heating through a complex clean heat credit system. However, after the Public Utility Commission concluded the program was not well suited to Vermont and raised concerns about implementation challenges, costs, and impacts on fuel consumers, lawmakers abandoned efforts to move it forward. By 2026, the Senate voted to repeal the framework entirely, marking a dramatic reversal and signaling a broader shift away from complex regulatory mandates toward more practical and politically sustainable approaches to climate policy.
Data Centers
H.727 – Regulating Data Centers
H.727, the Sustainable Data Centers Act, was developed in response to growing concerns about the impacts of AI-driven data centers on electric grids, water resources, land use, and utility rates. As passed by the House, the bill established a regulatory framework for large data centers, generally those with loads of 20 megawatts or greater, requiring them to bear their own infrastructure costs and protecting existing ratepayers from subsidizing new development. The Senate retained those core provisions while adding environmental and energy planning requirements related to water use, energy procurement, and impacts on Vermont’s climate and clean-energy goals.
Governor Scott vetoed the bill, arguing Vermont already possessed adequate regulatory authority and that the Senate amendments could discourage future investment. The House failed to override the veto.
Telecommunications | Broadband
Several telecommunications proposals were considered during the 2026 session but did not advance.
These included legislation addressing broadband affordability (H.121), broadband consumer protections (H.11), and the retirement of legacy copper telephone networks as providers continue transitioning to fiber and other technologies (H.898). While none of these measures became law, the issues they sought to address—including internet affordability, consumer rights, and the modernization of Vermont’s communications infrastructure—are likely to remain topics of future legislative and regulatory discussion.
Telecommunications Property Tax
Telecommunications providers continued to raise concerns regarding Vermont’s new methodology for valuing and taxing communications infrastructure. Industry representatives argued that the transition away from the traditional net book value approach could increase tax burdens on broadband networks and potentially discourage future investment. Providers also expressed concerns about competitiveness with neighboring states and the long-term impact on network expansion. No significant legislative changes to the valuation system were enacted during the 2026 session.
