Committee debates process for recovering canceled local project grant funds; committee asks parties to consult

Members of the House Transportation Committee discussed new draft language that would direct the Agency of Transportation to work with the Vermont League of Cities and Towns (VLCT), the Vermont Association of Planning and Development Agencies (VAPDA), regional planning commissions and other stakeholders to clarify the process under 19 VSA §309c for recovering grant funds when local projects are canceled.

Damien Leonard explained the draft directs the agency to clarify how the agency determines that a project was canceled for reasons wholly or partly within a local sponsor’s control, the local sponsor’s obligation to repay funds, potential process improvements, legislative changes needed, and to report findings to the committee by next January. Leonard said the language was drafted after testimony from regional planning commissions.

Michelle Blumhower of the Vermont Agency of Transportation told the committee the agency’s preference is to align the bill with the existing statutory appeals pathway that already allows an aggrieved local sponsor to seek review by the Transportation Board under 19 VSA §309c. AOT officials said the existing federal and state funding flows and the Transportation Board process already provide an adjudicative path; their suggested edits would preserve existing statute while adjusting timelines to give municipalities and the board adequate time to assemble records and review appeals (AOT cited the recent Enosburg matter as an example where timelines were tight).

Committee members, including Representative Corcoran, said smaller towns lack capacity to pursue Transportation Board proceedings and asked that the parties try to reach clearer agreement on process and checkpoints before filing appeals. Members agreed not to finalize the language at this meeting and to ask the agency and stakeholder groups to consult and return with agreed language or a report describing unresolved items.

Ending: The committee tabled final action on Section 4 to allow consultation between AOT, VLCT, regional planning commissions and other stakeholders; members signaled willingness to accept language that clarifies process without adding excessive administrative burden.