Stakeholders urge delay in Vermont’s Act 181 implementation, warn of regulatory gaps

Regional planning officials, municipal representatives and conservation groups urged Vermont’s Natural Resources & Energy committee to delay parts of Act 181 implementation, saying rushed rollouts of Tier designations and the so-called road rule could create regulatory gaps that slow housing production.

At a joint hearing, witnesses asked lawmakers to extend interim Act 250 exemptions while rulemaking finishes and communities adapt. "If interim Act 250 extensions expire before these issues are resolved, Vermont risks creating an immediate regulatory gap," an early witness told the committee (opening testimony). That uncertainty, multiple witnesses said, is prompting some towns not to pursue Tier 1A or opt into Tier 1B—decisions that could reinstate Act 250 jurisdiction for projects already counted under exemptions and in turn slow development.

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