Vermont backtracks on energy code amid housing crunch

By Adam Aton | 09/19/2025 06:18 AM EDT

Developers said returning to the 2020 energy code would shave $12,000 off the construction cost of an average home.

Vermont Gov. Phil Scott speaks to the press during a news conference.

Vermont Gov. Phil Scott (R) speaks to the press during a 2024 news conference. Charles Krupa/AP

Republican Gov. Phil Scott is rolling back Vermont’s ambitious energy code and relaxing other permitting rules in a bid to get more homes built.

Scott signed an executive order Wednesday that reinstates the 2020 version of Vermont’s building codes. The state had updated building codes in 2024 to add heavier insulation requirements, stricter energy efficiency standards and electric vehicle charging capacity.

Scott’s order also relaxes project reviews around wetlands, requires permits to be automatically approved if reviews exceed deadlines and begins an inventory of state land that could be sold for housing development. He also directed state agencies to give building permits top priority, and he asked the judiciary to do the same for housing cases.

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“I think everyone agrees we have a housing crisis,” Scott said Wednesday at a press conference with home developers. He added the state needs to build 40,000 houses over the next five years.

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