Deconstructing Gov. Scott's Housing Order, Part 3: Environmental Review Streamlining
Cutting red tape while protecting resources: what Vermont’s environmental review streamlining really means
Vermont’s housing shortage has collided with one of the state’s most complex challenges—balancing development with strong environmental protections. Governor Phil Scott’s latest Executive Order attempts to make it faster and easier to build homes while still maintaining compliance with state and federal rules. Section III of the order focuses specifically on how Vermont will streamline environmental reviews and permitting.
Wetlands Rules Loosened — But Federal Standards Still Apply
According to the order, some of the biggest changes involve wetlands, which are areas of land saturated with water that play a key role in filtering pollution and protecting against flooding.
What changes?
For housing projects built in certain “designated areas”—like downtowns, village centers, growth centers, and places with sewer service—developers will face looser state wetland restrictions. Specifically:State rules will only apply to wetlands that are already mapped as “Class II” wetlands. If a wetland isn’t on the official Vermont Significant Wetlands Inventory map, it won’t trigger state wetland permitting requirements.
The protective buffer around these Class II wetlands will shrink from the usual 50 feet to 25 feet.
What doesn’t change?
Federal wetlands protections still apply. Developers must still follow U.S. Environmental Protection Agency and Army Corps of Engineers rules.Why this matters:
A downtown infill project that previously might have required months of study and permitting for a small unmapped wetland could now proceed without those hurdles—though still needing to meet federal requirements.What’s next:
By February 1, 2026, the Agency of Natural Resources must begin formal rulemaking to write these changes into regulation before the Executive Order expires.
Speeding Up Housing Appeals in Court
Legal appeals can stall housing projects for months or years. According to the order, the Governor is asking Vermont’s Judiciary to prioritize and expedite residential housing appeals.
What this means:
If someone challenges a housing project permit in court, the case could be placed on a faster track—similar to how family or emergency cases sometimes get priority.Important caveat:
The Judiciary is independent, so this isn’t a mandate. The courts will decide how much they can or want to participate.
Streamlined Permitting Across Agencies
One of the biggest frustrations developers face in Vermont is juggling permits across multiple state agencies. According to the order, the Governor is pushing for a more “Vermonter-focused” system that emphasizes coordination and plain-language guidance.
Key Components:
Modernizing Permitting
Agencies that handle agriculture, commerce, digital services, natural resources, transportation, and public safety, plus the Land Use Review Board, must meet regularly—at least monthly—starting October 1, 2025.
The goal is to reduce duplication, improve communication, and align timelines so applicants aren’t stuck in a bureaucratic maze.
Dedicated Project Manager
The Agency of Digital Services will assign a project manager to keep this initiative on track.
Multi-Disciplinary Team (MDT)
A special team will be created to focus on multi-family housing projects with 10 or more units, especially in counties that have lost significant working-age populations.
This team will meet weekly, with the Commerce Secretary (or a designee) leading, to keep projects moving through the system quickly.
Accountability Through Reporting
The Secretary of Commerce must include weekly status updates to the Governor. These reports will use Key Performance Indicators (KPIs) to measure how quickly and effectively permits are being processed, and where new housing is being built.
Building a Common Entry System
Right now, each state agency uses different databases. The Secretary of Digital Services will evaluate how to connect these systems into one common entry portal for housing permits.
A cost and feasibility report is due to the Governor by December 1, 2025.
Plain Language Guidance
The Secretary of Natural Resources must review and update guidance for high-volume housing-related permits (wetlands, stormwater, drinking water, wastewater).
The guidance must be rewritten in plain English and made more accessible to the public.
Timeline: publish a schedule by November 1, 2025, and complete updates by July 1, 2026.
Sidebar: How a 20-Unit Village Center Project Could Move Faster
Imagine a developer proposing 20 new apartments above shops in a Vermont village center:
Under current rules:
If a small unmapped wetland sits near the back of the lot, the developer might need a state wetland permit, triggering months of studies and review.
The project could also get stuck in multiple permitting tracks—stormwater with one agency, traffic with another, wastewater with another—each on its own timeline.
If appealed, the project might sit in court for over a year before a decision.
Under the new order:
That unmapped wetland would not require a state permit, as long as federal rules are met.
The buffer around any mapped Class II wetland would be 25 feet instead of 50, leaving more buildable space.
A multi-disciplinary team would help move the 20-unit project through stormwater, wastewater, and traffic reviews together, meeting weekly to avoid delays.
If appealed, the case could move more quickly if the Judiciary agrees to prioritize housing appeals.
Result: The project could break ground months—or even a year—sooner than under the old system.
What This Means for Vermonters
For Developers: Projects—especially larger housing complexes—should move through permitting faster and with fewer surprises.
For Towns: More clarity and predictability in how state rules apply, which could help local planning.
For Residents Concerned About the Environment: Some protections, particularly around wetlands, are being scaled back at the state level, but federal safeguards remain in place.
Glossary of Key Terms
Class II Wetlands: Wetlands that are considered significant under Vermont law and generally protected with buffer zones. They are mapped on the Vermont Significant Wetlands Inventory (VSWI).
Designated Areas: Places identified in Vermont planning law as suitable for development, such as downtowns, village centers, and growth centers.
Buffer Zone: The strip of land around a wetland where development is limited to protect the wetland.
Multi-Disciplinary Team (MDT): A group made up of staff from multiple state agencies working together on one project to speed up reviews.
Key Performance Indicators (KPIs): Measurable goals—like how many permits are issued each month or how long the average review takes—used to track progress.
The Bottom Line
Section III of Governor Scott’s Executive Order tries to strike a balance between Vermont’s reputation for environmental stewardship and its urgent need for more housing. By loosening some wetlands rules, asking courts to move housing cases faster, and overhauling the permitting process, the state hopes to remove roadblocks that have slowed housing development for decades.
Whether these changes will deliver enough new housing, while still protecting Vermont’s natural resources, remains to be seen.