Act 250 Program & History

What is Act 250?

Act 250 (10 V.S.A. Chapter 151) is Vermont’s land use and development law, enacted in 1970 at a time when Vermont was undergoing significant development pressure. The law provides a public, quasi-judicial process for reviewing and managing the environmental, social and fiscal consequences of major subdivisions and developments in Vermont. It ensures that larger developments complement Vermont’s unique landscape, economy, and community needs. One of the strengths of Act 250 is the access it provides to neighbors and other interested parties to participate in the development review process. Applicants often work with neighbors, municipalities, state agencies and other interested groups to address concerns raised about proposed development, resolving issues and mitigating impacts before a permit application is filed.

The Natural Resources Board (the Board) is an independent entity in the Executive Branch of Vermont state government. The primary function of the Board is to administer Act 250. Nine District Environmental Commissions, supported by full-time staff located in five district offices issue Act 250 land use permits. The Act 250 program is served by a total of 28 full-time employees and approximately 60 citizen volunteer commissioners.

In addition to administering the Act 250 program in the district offices, the Board issues rules and policies related to Act 250 and provides training and legal assistance to district commissions and staff. The Board is responsible for enforcement of Act 250 and may participate as a party in appeals from Act 250 decisions to the Superior Court, Environmental Division. In July 2016, the Board assumed a new statutory function: hearing appeals of energy compliance determinations made by the Commissioner of the Department of Public Service.

How does the law work?

Each Act 250 permit applications is reviewed by one of nine district commissions, who are appointed by the Governor. Staff support is provided by full-time district coordinators and technicians, who are located in five district offices throughout the state. District coordinators also issue written jurisdictional opinions on whether an activity requires an Act 250 permit or permit amendment is required.

Specific program objectives of Act 250 include the following:

• thoroughly reviewing each Act 250 permit application for compliance with the statutory criteria;
• reviewing existing permit history and making determinations regarding Act 250 Jurisdiction as expeditiously as possible;
• assisting applicants and other parties in preparation for their participation in Act 250 proceedings;
• advising permittees in maintaining compliance with permit terms and conditions; and
• enforcing the requirements of Act 250 permits and the statute.  

History of Act 250

The late 1960s brought sudden and dramatic change to Vermont’s quiet countryside. The state had hardly grown in population or developed area since the start of the 20th Century. Now, almost all at once, new permanent and part-time residents began flooding in. The opening of the Interstate Highway System in Vermont between 1958 and 1965  brought the state at least an hour closer in driving time for residents of greater Boston and New York City.  At about the same time, IBM began creating a major facility in Essex Junction. Vermont was promoting tourism — and the southern Vermont towns of Wilmington and Dover, among others, had become very popular skiing destinations. Small towns were suddenly faced with the prospect of hundreds of new second homes and condominiums, often built on steep mountainsides with shallow soil.

Governor Deane Davis, a retired business executive and Vermont native, was deeply concerned, but at that time, there was little he could do. Although Vermont had encouraged local planning during the 60s, it had virtually no environmental regulations or land use controls. Gov. Davis responded by creating the Governor’s Commission on Environmental Control, chaired by State Representative Arthur Gibb, on May 18, 1969. After holding well-attended hearings throughout the state, in January 1970 the Gibb Commission recommended a number of environmental laws, chief among them a new state system for reviewing and controlling plans for large-scale and environmentally sensitive development.

Gov. Davis insisted that this system not be centered in Montpelier — that the power to review projects and grant permits be vested more locally, in a system of regional commissions. In the spring of 1970, the Vermont Legislature passed "Act No. 250 of the Acts of 1970, An Act to create an Environmental Board and District Commissions," since known simply as Act 250. It created nine District Environmental Commissions, whose members were (and still are) laypersons, not government officials. Their decision-making process, supported by a modest staff, would center on 10 criteria for reviewing development and subdivision plans that would involve significant environmental, aesthetic, and/or community impacts. This review of development by local Vermont citizens has, with the Act 250 criteria, been at the center of the Act 250 process ever since.

Act 250 also established the Vermont Environmental Board to review appeals of district commission rulings. Its original members included a natural-science professor, an architect, a realtor, a community leader and homemaker, a county extension agent, a ski area operator, an engineer, a businessman, and a county sheriff. This lay board heard district commission appeals for 35 years, until the general appeal function was transferred to the Superior Court, Environmental Division in February 2005. 

The district commissions are the focal point of the Act 250 process. While the number of applications in the early years of the law were modest, the district commissions today receive approximately 400 applications per year — and they approve more than 98 percent of those. Many plans are modified during the application process, and district commissions generally attach conditions to land use permits, to ensure that the Act 250 criteria remain satisfied in perpetuity.

The Act 250 criteria have changed little since the early 1970s; however, several criteria have been added or modified. In 2006, Criterion 9(B) was modified to incorporate a process for offsite mitigation of impacts to primary agricultural soils. In 2014, Criterion 9(L) was amended to address strip development. With each of these changes, the law incorporated incentives to guide new development into Vermont's downtowns, villages, and other growth centers designated by the state Downtown Board. In 2024, Criterion 8(C) was created (effective 12/31/2026) to prevent habitat fragmentation in the face of sprawl and to protect wildlife travel corridors between larger habitat blocks in the face of climate change. 

The organizational structure has also been modified over time. In 2004, the Environmental Board and Water Resources Board were combined into a single entity, the Natural Resources Board. As part of the 2004 amendments, all appeals of District Commission decisions, as well as permit decisions of the Agency of Natural Resources, are now heard by the Superior Court, Environmental Division. Act 181 of 2024 renamed and restructured the Board, creating a 5-member full-time professional Land Use Review Board to supervise staff, provide guidance to district commissions, transition the program to a new system of location-based jurisdiction, and to define natural resource areas for additional protections.

Because of the Act 250 process, the quality of development in Vermont is generally higher than in states without comprehensive land use laws. Act 250 was designed to achieve a balance between economic development and the legitimate interests of citizens, municipalities, and state agencies in protecting the environment. Innovative and bold at its inception, Act 250 is now part of the fabric of Vermont.