Vt. Stat. Ann. tit. 10, § 1653

For the purposes of this subchapter, the Department, when acting on behalf of a municipality, is an eligible applicant for funds available under this chapter. Eligible planning and construction costs shall include the cost to the Department of undertaking these services on behalf of the municipality; however, in no case shall the Department administration charges exceed two percent of the project cost. Nothing in this subchapter shall relieve a municipality of its duty to provide the land required for the project or to contribute funds toward the cost of the project as otherwise required by law.