This post was from a while ago, but as I'm currently dealing with this exact issue I thought I'd update it.
The state does control the permitting process. As stated previously, I also would have expected Vermont to be a more liberal and forward thinking state. I've found that to be not so. They are bogged down in bureaucracy, burdensome processes, and antiquated thinking. "If you're looking to setup some modern new eco septic then I'm not your guy." I've heard this from so many designers. None of them want to step outside what they've been doing for too many years. It's unfortunate.
Grey water is still considered a pathogen, and as such must be treated in the same fashion as all other sewage. So there's no such thing as a separate "non hazardous" grey water system to Vermont.
Composting toilets are acceptable, but have to meet certain criteria, and need a permit. Composted human waste must be buried in an approved septic site, under 6" of ground, and the land can't be used for pretty much anything after that. Composting toilets do reduce septic system sizes by 25%, but a septic system is still required(because grey water is still a pathogen, and must be handled appropriately).
Poo composting(other that the above toilet method) isn't legal as a resident without proper permitting, which is $1000\yr. This is actually a commercial permit, not intended for "regular people", but is applicable if anyone were so interested. This permit in conjunction with the above approved and permitted composting toilet is the way to actually compost and use human waste in an agricultural application.
Permit after permit on top of regulations and restrictions. It's ridiculous. Yes, poop needs to be managed appropriately. But there need to be better, easier, more affordable ways.
** That's what I've been running up against for the past couple weeks. Regulations, permits, and expense. So here's what I'm discovering since pushing back on the state crew. **
There are alternative systems available for grey water treatment. There is only 1 plant based alternative true "green" system currently active in a residential capacity. That's setup for a 10 home community. The issue is the permitting, engineering, construction cost, and mandatory testing make it financially restrictive. Most of the off grid folks don't have the financial wherewithal to create one of these systems simply due to all the regulatory and professional services costs. The systems are actually quite inexpensive.
I currently have a small plant based system filtering my grey water, and 5gal solid waste buckets being taken out to compost. It's been a great system so far. Unfortunately I have a nosy neighbor that i found out has already sent emails to the local zoning office asking about what I'm doing(snitches get stitches). I'm expecting someone from the state to show up some time soon. So I've been tearing through the research, and contacting a ton of people. That way it appears that I'm working on the process. The property is already totally perked, designed, and permitted for a $20,000 3 bedroom system. But there's no way in hell I'm paying that much for a 600sq.ft. cabin to live in the woods. I should have spent a little more money on more land. Or more trees between me & the neighbor. I guess 10 acres isn't enough to get people to mind their own business.
I'm going to continue to push back and see what I can change. Maybe make this a greener, more sensible planet.
http://dec.vermont.gov/water/ww-systems
