HB 0738

CHAPTER 178

HB 738-FN-A-LOCAL - FINAL VERSION

AN ACT permitting aid to public water systems to be used for forming or improving regional water systems and making an appropriation therefor.

SPONSORS: Rep. R. Cooney, Rock 76; Rep. Patten, Carr 7; Rep. M. Blanchard, Rock 86; Sen. Johnson, Dist 2; Sen. Cohen, Dist 24; Sen. Kenney, Dist 3; Sen. Gallus, Dist 1

I. Adds regional water systems to the water systems eligible for state aid and adds the evaluation of the groundwater contributing area of public wells that have recorded levels of chemical contaminants, excluding MTBE, to projects eligible for state aid;

II. Defines the terms "eligible regional water system costs," "regional water system" and "groundwaters;"

III. Requires regional water systems to agree to participate in regional and statewide water supply planning initiatives as a condition for receiving aid;

IV. Adds criteria for prioritizing applications and evaluating regional water systems;

VI. Makes an appropriation to the department of environmental services to implement grants for regional water system projects.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT permitting aid to public water systems to be used for forming or improving regional water systems and making an appropriation therefor.

Be it Enacted by the Senate and House of Representatives in General Court convened:

178:1 Purpose; Regional Water Systems Added. Amend RSA 486-A:1 to read as follows:

486-A:1 Purpose. The purpose of this chapter is to provide a state contribution to aid all public water systems in achieving compliance with the requirements of the surface water treatment rules of the federal Safe Drinking Water Act, to provide a state contribution to aid public water systems in the formation or improvement of regional water systems that provide a benefit to public health, safety, and economic well-being, to provide a state contribution to aid public water systems in the evaluation of the groundwater contributing area of public wells that have recorded levels of chemical contaminants, excluding MTBE, and to protect sources of public drinking water that serve community or non-transient non-community water systems and associated natural resources through the acquisition of land or conservation easements within source water protection areas.

178:2 Definitions; Construction; Regional Water Systems Added. Amend RSA 486-A:2, I to read as follows:

(2) Filtration systems and associated pump stations, pump equipment, chemical treatment systems, telemetry and metering equipment, and storage tanks; and

(3) Distribution mains and valves needed to interconnect the new wells or filtration system to the existing system as may be required by the department and the EPA or to interconnect public water systems to form a regional water system.

(b) Altering, improving or adding to existing water treatment or water source, storage or transmission main facilities or regional water system interconnections in order to meet the requirements of the surface water treatment rules or to meet the water needs of a regional water system.

(c) Engineering services related to the activities identified under this paragraph, including the scientific evaluation of the groundwater contributing area of public wells with recorded levels of chemical contaminants, excluding MTBE, using a method approved by the department.

178:3 New Paragraphs; Definitions; Eligible Regional Water System Costs; Eligible Evaluation of the Groundwater Contribution Area of Public Wells That Have Recorded Levels of Chemical Contaminants Excluding MTBE. Amend RSA 486-A:2 by inserting after paragraph III-a the following new paragraphs:

III-b. "Eligible regional water system costs" means that portion of the costs of construction and related services attributable, as determined by the department, to the provision of water for domestic, commercial, or fire protection purposes, whether as routine supply or emergency reserve supply, through one or more of the interconnections that form a regional water system, but shall not include any of the following:

(a) Land acquisition, except for land which shall be an integral part of a well system or filtration system.

(c) Distribution systems and any improvement thereto not necessary for the municipality to achieve compliance with the surface water treatment rules.

III-c. "Eligible evaluation of the groundwater contribution area of public wells that have recorded levels of chemical contaminants excluding MTBE" means that portion of the actual costs of scientific evaluation of the contribution area of the sources of public drinking water, such as a well or surface water intake, through which water is likely to flow towards the source and related services attributable, as determined by the department, to the provisions of water for domestic, commercial, or fire protection purposes, whether as routine supply or emergency backup supply, through one or more interconnections that form a regional water system, but shall not include the following:

(a) Land acquisition, except for land which shall be an integral part of a well system or filtration system;

(c) Distribution systems and any improvement thereto not necessary for the municipality to achieve compliance with the surface water treatment rules; and

178:4 New Paragraphs; Definitions; Regional Water System; Groundwaters. Amend RSA 486-A:2 by inserting after paragraph V the following new paragraphs:

V-a. "Regional water system" means the system which results from the interconnection of 2 or more discrete public water systems to provide routine or emergency reserve supply.

V-b. "Groundwaters" means all areas below the top of the water table, including aquifers, wells, and other sources of groundwater.

178:5 Section Heading Changed. Amend the section heading of RSA 486-A:3 to read as follows:

486-A:3 State Contribution; Surface Water Treatment Costs; Water Supply Land Protection Costs; Regional Water System Costs.

178:6 New Paragraph; State Contribution; Eligible Regional Water System Costs Added. Amend RSA 486-A:3 by inserting after paragraph II the following new paragraph:

III. Any public water system which incurs eligible regional water system costs or eligible evaluation of contributing area of groundwaters contribution to public wells that have recorded levels of chemical contaminants costs, excluding MTBE, after the effective date of this paragraph shall be eligible for a state contribution in accordance with the provisions of this chapter. As its contribution, the state shall pay 25 percent of the annual amortization charges, meaning the principal and interest, on the bonded eligible regional water system costs, or 25 percent of non-bonded, eligible regional water system costs. Plans for construction shall be approved in accordance with the provisions of RSA 485:8.

178:7 Equitable Allocation of Costs; Regional Water Systems. Amend the introductory paragraph and paragraph I of RSA 486-A:5 to read as follows:

The department shall not approve any contribution for surface water treatment or for the formation or improvement of a regional water system or for evaluation of contribution of groundwaters to public wells that have record levels of chemical contaminants, excluding MTBE under this chapter unless it shall first have determined that the applicant:

I. Has adopted or will adopt a system of charges to assure that each recipient of water service within the applicant's jurisdiction, as determined by the department, will pay its proportionate share of the costs of operation and maintenance, including replacement, of water services provided by the applicant. For a regional water system project, the department must also determine that each public water system that is to make payments to the applicant for water service provided through area regional water system interconnection has adopted or will adopt a system of charges to assure that each recipient of water service within the public water system will pay its proportionate share of the such payments.

178:8 Application for Funding; Regional Water Systems Added. Amend RSA 486-A:6 to read as follows:

486-A:6 Application for Funding. Application for payments under the provisions of this chapter shall be made in accordance with rules adopted by the commissioner under RSA 541-A, and, for surface water treatment projects and regional water system projects and evaluation of groundwaters contributing area of public wells, shall be based upon reports filed with the commissioner prior to January 31, in the calendar year for which payment is being requested.

178:9 Applicant Agreement; Regional Water Systems. Amend RSA 486-A:7, I to read as follows:

I. Applications for state grants for surface water treatment and for regional water systems and evaluation of groundwaters contributing area of public wells with recorded levels of chemical contaminants shall contain an agreement that the applicant:

(a) Has installed or will install the water works facilities in accordance with the plans and specifications approved by the department;

(c) Agrees that failure to install the facilities in accordance with the approved plans and specifications or to provide proper and efficient operation and maintenance of such facilities shall result in loss of payments of the annual grant installment next following such failure. The loss of payment of the annual grant installment shall continue in effect until such time as the applicant has completed the steps necessary to install the facilities in accordance with plans and specifications approved by the department, or made provisions for proper and efficient operation and maintenance of the facilities in accordance with department instructions or both[.];

(d) For a grant to aid in the development of a regional water system and evaluation of groundwaters contributing area of public wells with recorded levels of chemical contaminants, agrees to participate in regional and statewide water supply planning initiatives and to consider the results of such initiatives for purposes of long-term water supply planning and infrastructure development.

178:10 New Paragraph; Priority of Applications; Regional Water Systems. Amend RSA 486-A:8 by inserting after paragraph II the following new paragraph:

III. For regional water system projects and evaluation of groundwaters contributing area of public wells with recorded levels of chemical contaminants, the department shall adopt prioritization factors by rule under RSA 541-A, to assist in determining which new projects to fund under this chapter. Prioritization factors shall include, but not be limited to:

(a) The population of the service area that would receive water through the regional water system interconnection.

(b) The degree to which the public's health, safety, and economic well-being will benefit.

(d) The consistency with land use master plans in the affected municipalities and with the provisions of RSA 9-B and RSA 162-C:2, V, to the extent that a proposed regional water system project may impact the municipality's growth and development patterns.

178:11 Public Notice; Regional Water Systems Added. Amend RSA 486-A:8-a, I to read as follows:

I. For surface water treatment projects, regional water system projects, and evaluation of groundwaters contributing area of public wells with recorded levels of chemical contaminants the commissioner of environmental services or designee shall hold an annual public hearing to receive testimony on the projects recommended by the department, in accordance with RSA 486-A:8, to receive grants in the next fiscal year. After considering the testimony offered at the hearing, the commissioner shall finalize the priority list for the next fiscal year, and project assistance shall be granted accordingly.

178:12 Administration; Regional Water Systems Added. Amend the introductory paragraph of RSA 486-A:9, I to read as follows:

I. The department shall perform the following functions related to the administration of the provisions of this chapter applicable to surface water treatment and to any regional water system and evaluation of groundwaters contributing area of public wells with recorded levels of chemical contaminants:

178:13 Administration; Review and Approval; Regional Water System Costs Added. Amend RSA 486-A:9, I(p) to read as follows:

(p) Based upon a satisfactory final project inspection, review and approve final eligible surface water treatment costs, regional water system project costs and evaluation costs of groundwaters contributing area of public wells with recorded levels of chemical contaminants, and authorize release of retainage.

178:14 New Subparagraphs; Regional Water Systems; Criteria for Evaluation. Amend RSA 486-A:9, I by inserting after subparagraph (p) the following new subparagraphs:

(q) Evaluate the defined project for consistency with municipal master planning, RSA 9-B, and RSA 162-C:2, V and require limitations on future water system connections where appropriate.

(r) For a regional water system project and evaluation of groundwaters contributing area of public wells with recorded levels of contaminants, evaluate the defined project to ensure that it is designed to provide an overall benefit to public health, safety, and economic well-being and that it is a cost-effective means of achieving these benefits.

178:15 Water Companies, When Public Utilities; Higher Rates for Existing Customers Limited. Amend RSA 362:4, III-a(b)-(d) to read as follows:

(b) The commission may exempt a municipal corporation from any and all provisions of this title except the franchise application requirements of RSA 374, and may authorize a municipal corporation to charge new [~~and existing~~] customers outside its municipal boundaries a rate higher than 15 percent above that charged to its municipal customers, if after notice and hearing, the commission finds such exemption and authorization to be consistent with the public good. The commission may not authorize a municipal corporation to charge existing customers outside its municipal boundaries a rate higher than 15 percent above that charged to its municipal customers until any rate agreements in effect for those customers on May 13, 2002 shall have expired.

(c) A municipal corporation's authority to charge higher rates for new customers outside of its municipal boundaries shall be applied prospectively to new customers taking water service provided by means of a main extension or an expansion of the municipal corporation's system after the effective date of this paragraph.

(d) A municipal corporation's authority to charge higher rates for existing customers outside of its municipal boundaries shall not become effective until any rate agreements in effect on May 13, 2002 have expired.

(e) A municipal corporation serving customers outside of its municipal boundaries and charging a rate no higher than 15 percent above that charged to its municipal customers prior to July 1, 2002, may also be exempted from regulation as a public utility, except for the franchise application requirements of RSA 374, if after notice and hearing, the commission finds such exemption and authorization to be consistent with the public good.

178:16 New Section; Repayment Responsibility. Amend RSA 486-A by inserting after section 14 the following new section:

486-A:15 Repayment Responsibility. Any party found, by means of a scientific or hydrogeological study, or other evaluation as approved by the department, of the groundwaters contributing area of public wells with recorded levels of contaminants, to be responsible for contaminating a wellhead area, shall be required to repay to the state, the amount the state contributed for the evaluation.

178:17 Appropriation. The sum of $1 is hereby appropriated to the department of environmental services for the fiscal year ending June 30, 2004 and the sum of $1 for the fiscal year ending June 30, 2005, for the purpose of providing grants for regional water system projects under RSA 486-A. The governor is authorized to draw a warrant for said sums out of any money in the treasury not otherwise appropriated.