H.863 Explainer

H.863 was proposed this legislative session by Representative Mollie Burke, leaders on the House Transportation Committee and representatives on other committees to “improve equity and infrastructure, increase resiliency, and reduce emissions” through Vermont’s transportation system. Below is a summary of the bill, with T4VT’s 2026 priorities highlighted.

One of T4VT’s key priorities over the past couple of years has been identifying long-term, sustainable funding for Vermont’s transportation fund - with particular urgency around funding for public transit. H.863 proposes two new sources of revenue: a retail delivery fee, and new local authority to raise funds through a local option tax.

Revenue & funding provisions

• Retail delivery fee: The bill creates a new $0.30 fee on retail deliveries of personal property (one fee per retail transaction). Collections are deposited into the Transportation Fund and explicitly directed to support town highway aid. The fee is administered using the sales tax reporting cadence and may be separately collected by vendors. 

• Local option fuel tax authority: H.863 amends local option tax statutes to allow municipalities to adopt a local option tax on gasoline and diesel fuel (among other existing local options), providing towns and cities an additional path to raise transportation revenue locally.

• Appropriations & program funding: The bill contains appropriations to support multiple transportation programs - including transit, EV incentives, and town highway aid - drawing on the new fee revenue and other State funds.

• Transportation Alternatives Program (TAP) changes: Re-aligns TAP grants to prioritize active transportation and Safe Routes to Schools projects.

Electric mobility & charging infrastructure provisions

• EVSE payment & transparency requirements: Publicly available electric vehicle supply equipment (EVSE) would be required to accept credit card payment and to make real-time status information available to third parties. These provisions aim to reduce access barriers and enable better user information and network integration.

• Right to install EVSE: Establishes legal mechanisms allowing property owners and tenants to install EV charging equipment, designed to reduce landlord/tenant and condo association barriers that can slow deployment of chargers at multifamily housing and workplaces.

• EV purchase supports & tax credits: Includes funding support for purchase incentives and creates an income tax credit for the purchase of qualifying electric vehicles. These measures are intended to accelerate EV adoption and help lower-income households access cleaner vehicles.

• E-bicycle safety study: Directs a study into whether legal or regulatory changes would improve safety for electric bicycles.

Program efficiency & planning

• VMT reductions study & method development: Directs AOT and ANR to develop a process for calculating a target for statewide reductions in vehicle miles traveled; this is aimed at measuring progress toward transportation, health and land use goals, and to inform policy choices.

• Transit / school transportation coordination: Requires annual meetings between public transit agencies and school districts/supervisory unions to explore opportunities to coordinate education-related transportation as an efficiency and service-integration measure that could reduce duplicative trips and expand non-automobile options for students.

• Pollinator habitat: Requires AOT to create pollinator habitat along state highways and to develop best management practices to support municipalities creating pollinator habitat on municipal roadsides. 

• Road-salt training: Requires ANR to update the Vermont Local Roads curriculum to include salt-spreading best practices, aimed at reducing environmental impacts of winter maintenance while maintaining safety.