Changes to Act 250: Tier 3 and the Road Rule
Act 181 was enacted in 2024 and included significant reforms to Act 250, Vermont’s statewide land development permitting process. Act 250 was originally created in 1970 to manage environmental and community impacts of large scale development projects. Two areas where there have been a lot of questions are around the new Tier 3 jurisdiction and the Road Rules in Act 181. The following is a summary of these two changes to Act 250 and upcoming opportunities for public review and comment.
Tier 3
Act 181 created a new “Tier” system within Act 250 with different levels of jurisdiction for each tier. Historically, an Act 250 permit has been required based on the size of a proposed development or subdivision. With the new tier system, permit requirements will be based more on the location of the project. Tier 1 areas are planned for growth in and around village and downtown centers and Act 250 jurisdiction would be reduced or eliminated. Tier 3 was established for areas with critical natural resources and would require Act 250 jurisdiction for projects. Tier 2 would cover remaining areas and Act 250 jurisdiction will mostly remain the same, except if a project is subject to the Road Rule.
The new Land Use Review Board (LURB) was tasked with developing the rules for Tier 3, including which resources areas to include and the types of projects that will require a permit. The LURB has created a page on their website with draft rules and mapping: https://act250.vermont.gov/tier-3-rulemaking-and-report. The next version of the draft Tier 3 rules and mapping is expected to be ready in February and there will be additional public engagement in March. It is anticipated the final rules will be presented to the Legislative Committee on Administrative Rules by September 30, 2026 and that Tier 3 jurisdiction will begin at the end of 2026.
Road Rule
Act 181 also created new jurisdiction under Act 250 for the construction of certain roads, commonly referred to as the Road Rule. The purpose was to encourage the clustering of development along existing roads and to reduce fragmentation of interior forests. Jurisdiction would apply to any single road greater than 800 feet, or the when the length of multiple roads and associated driveways is greater than 2,000 feet. The LURB is developing guidance on the rule that will be available in February or March for public comment. The Road Rule does not take effect until July 1, 2026. Additional information can be found here: https://act250.vermont.gov/road-construction-jurisdiction.