VT H0731

Codifies Vermont's antidegradation policy in statute to comply with federal Clean Water Act requirements under 40 C.F.R. § 131.12, citing the Agency of Natural Resources' repeated failure to adopt implementing rules

Establishes a three-tier protection system: Tier 1 protects existing uses of all waters; Tier 2 allows limited water quality reduction in high-quality waters only to prevent substantial adverse economic/social impacts; Tier 3 prohibits degradation of outstanding resource waters except for temporary discharges

Creates a new classification system for inland lakes and ponds with three categories: natural condition lakes (limited development/irrigation), moderate development lakes (some use allowed without degradation), and general development lakes (continued development with water quality protection)

Requires the Secretary of Natural Resources to review all permit applications for new discharges against the antidegradation policy, with mandatory public notice and 30-day comment periods for draft decisions

Takes effect July 1, 2026, with implementation decisions required by January 1, 2027; any lake not reclassified by January 1, 2028 automatically becomes a natural condition lake where development is prohibited