"Great Strides" Claimed in Vermont's Clean Water Report—But Closer Inspection Raises Questions
On the surface, the report tells a story of robust success but. while money is being spent, the methods used to count “progress” may be overstating the health of Vermont’s watersheds.
When Vermont released its Clean Water Initiative 2025 Performance Report on January 15, 2026, the headline numbers were striking: more than $755 million invested, 644,335 acres of agricultural land treated, and “over one-third” of the work completed to clean up Lake Champlain.
At first glance, the report reads like a major success story.
But a closer examination — including direct clarification from state officials — reveals a crucial distinction: the report is primarily an accounting of effort and spending, not a measurement of physical land protected or water actually cleaned. In effect, it functions less like a medical scan of the lake’s health and more like a ledger of receipts showing where public money has gone.
Understanding that distinction is essential for interpreting what the report does — and does not — tell Vermonters about progress toward cleaner water.
Why This Report Exists
The Performance Report is not a marketing document. It is Vermont’s primary accountability tool to the U.S. Environmental Protection Agency (EPA), intended to demonstrate that the state is making steady progress toward reducing phosphorus pollution in Lake Champlain and Lake Memphremagog.
Excess phosphorus fuels toxic algae blooms, degrades drinking water, harms recreation, and damages ecosystems. Under federal Clean Water Act requirements, Vermont must meet strict phosphorus reduction targets by 2036.
The stakes are high because this system exists in response to a past failure.
Vermont’s original 2002 Lake Champlain cleanup plan relied largely on voluntary compliance by landowners and farmers, with little verification. By 2011, the EPA concluded that approach was inadequate and revoked approval of the plan — an extraordinary step that effectively said Vermont’s promises were not credible without proof.
The Legislature responded with Act 64 (2015), the Vermont Clean Water Act, which imposed enforceable requirements and created a funding structure to support them. The Performance Report is how Vermont shows the EPA that work is happening — and that federal regulators do not need to step in.
If the EPA loses confidence, it has the authority to impose much stricter controls, including limits on sewer connections, development freezes, or tighter regulation of farms.
This context explains why how progress is counted matters. These numbers are not abstract. They are evidence in an ongoing negotiation over whether Vermont retains control of its own environmental programs.
The Headline Claims — and the First Red Flag
Among the report’s most prominent claims is that 644,335 acres of agricultural land are now covered by phosphorus-reducing practices. That figure jumped 41% in a single year, from 456,615 acres in 2024.
That raised an obvious question: Vermont has roughly 500,000 to 600,000 acres of active farmland. How could the state suddenly exceed the physical amount of land available?
The answer reveals how the report works.
What “644,335 Acres” Actually Means
In response to follow-up questions, state officials confirmed that the agricultural acreage figure represents a “cumulative level of effort”, not distinct land area.
In plain terms, the state is counting contract-acres, not physical acres.
If a farmer plants cover crops on 10 acres for three consecutive years, the report records that as 30 acres of progress. The same land is counted again each year because the practice must be repeated annually.
A simple analogy helps:
If you mow the same lawn ten times, the accounting records ten lawns mowed — not one lawn maintained.
This method is legitimate for tracking spending and program participation. But it does not mean that 644,335 acres of Vermont farmland are currently protected, nor that the footprint of protected land is expanding at that pace.
Many agricultural practices — especially cover cropping — are seasonal and temporary. If funding stops, the practice stops, and the pollution reduction disappears. The protection is effectively rented, not built.
State officials acknowledged this distinction directly, explaining that the report is designed as “a fiscal accounting of administrative effort,” rather than a holistic assessment of land use or water quality outcomes.
Wastewater Infrastructure: Mostly Septic Tanks
A similar issue appears in the report’s claim that 233 wastewater systems were constructed, upgraded, or refurbished.
That sounds like major infrastructure investment — until the breakdown is examined.
According to state data:
172 systems (74%) were private, on-site septic systems for individual homes
Most were funded through the Healthy Homes program using federal pandemic relief (ARPA) money
Only 12 were upgrades to municipal wastewater treatment plants
Another 13 involved repairs to existing municipal plants
In other words, the vast majority of “wastewater systems” were private household repairs, not the large public facilities that handle most of Vermont’s sewage.
Bundling these together creates an impression of sweeping infrastructure modernization that obscures how slowly the biggest, most consequential municipal upgrades are occurring.
What the Report Leaves Out
Equally important is what the Performance Report does not include.
It omits information about major enforcement actions, including more than 140 wastewater permit violations in 2024 and 2025 by industrial facilities such as Ben & Jerry’s and Agri-Mark. These violations place additional strain on municipal treatment plants and increase pollution risk.
State officials said enforcement is “out of scope” for the report, which focuses solely on funded projects.
The report also does not assess whether cleanup projects were damaged or destroyed by the severe flooding of 2023 and 2024, even though floodwaters can undo years of work in a single event. Officials again said that analysis falls outside the report’s scope.
The result is a siloed view of success:
One set of books tracks spending, contracts, and modeled reductions
Another tracks violations, flood impacts, and real-world water quality
They are not reconciled in one place
Are We On Track?
According to the Lake Champlain Committee, Vermont has achieved roughly 35% of the required phosphorus reductions.
That progress took ten years (2016–2025).
With the EPA deadline set for 2036, Vermont has used half its time to complete about one-third of the work — and the remaining reductions will be harder and more expensive.
Much of the “low-hanging fruit” has already been picked. What remains involves retrofitting roads, parking lots, and developed areas, and reaching farms that have not yet participated.
The Elephant in the Room: The 2026 Fiscal Cliff
The largest unresolved issue is funding.
Recent progress was heavily driven by one-time federal pandemic aid under the American Rescue Plan Act (ARPA). Those funds must be spent by December 31, 2026.
Once they expire, Vermont faces an estimated $62 million annual shortfall between what its Clean Water Fund generates and what is required to meet Act 64 obligations.
The investment charts in the report show a dramatic spike in spending during 2023–2025 — followed by a steep drop-off beginning in 2027 unless new revenue is found.
This creates particular risk for agriculture. Many of the phosphorus reductions the state counts come from annual “subscription” practices like cover cropping. If funding lapses, those reductions can vanish in a single growing season, wiping out years of reported progress.
What This Means for Property Owners
The implications extend beyond farms.
Under Vermont’s 3-Acre General Permit, owners of properties with three or more acres of pavement or roof area must install stormwater controls such as rain gardens or detention systems. These retrofits often cost $30,000 or more per acre.
Federal funds have helped soften those costs. After 2026, property owners may face the same mandates with far less financial assistance — raising the likelihood of sticker shock, disputes, or legal challenges.
Renting vs. Owning Clean Water
The report highlights agriculture as the most cost-effective sector, citing an average cost of $102 per kilogram of phosphorus reduced.
What the report does not emphasize is that this is an annual cost.
A practice that costs $102 per kilogram each year costs more than $2,000 over 20 years, before inflation. By contrast, a stormwater pond that costs $4,000 per kilogram upfront may function for decades.
The report compares these approaches without fully distinguishing between temporary practices and permanent infrastructure — between renting pollution reduction and owning it.
What Happens Next
The next phase unfolds on several fronts:
The EPA will issue its own evaluations to determine whether Vermont’s reported progress provides “reasonable assurance” that cleanup goals will be met
The Vermont Legislature must decide whether to replace expiring federal funds — likely requiring new taxes or fees
The Lake Champlain Basin Program will continue measuring actual phosphorus levels in the lake, which ultimately matter more than models or spreadsheets
As the 2036 deadline approaches and the remaining work becomes more difficult and expensive, the gap between what gets counted and what actually happens in the watershed will matter more — not less.
For Vermonters weighing the costs ahead, understanding that gap is essential.