SB 0437

CHAPTER 141

SB 437-FN-LOCAL - FINAL VERSION

AN ACT relative to the protection of public water supplies during emergency conditions and establishing a committee to study the formation of regional water systems and the eligibility of such systems for state construction grants.

SPONSORS: Sen. Hollingworth, Dist 23; Sen. Pignatelli, Dist 13; Sen. Cohen, Dist 24; Rep. Blanchard, Rock 33; Rep. Konys, Hills 33; Rep. Wall, Straf 9; Rep. Norelli, Rock 31

I. Allows the governor, upon petition of a board of water commissioners or water supply owner, to declare a state of emergency for public water supplies. During the state of emergency, the governor may order emergency protections for the water supply. The emergency protections may become permanent.

II. Creates a mechanism for the department of environmental services to consider citizen complaints concerning public water systems.

III. Allows a municipal water system to charge rate premiums for customers outside of its municipal boundaries.

IV. Allows the public utilities commission to include certain costs related to the development of regional water supplies and new water supply sources in the rates of a utility.

V. Establishes a committee to study the formation of regional water systems and the eligibility of such systems for state construction aid.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

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

141:1 Petition to Protect Water Supplies; Emergency Conditions. Amend RSA 485:23 to read as follows:

I. Whenever any board of water commissioners, local board of health, local health officer or 10 or more citizens of any town or city have reason to believe that a public water or ice supply is being contaminated or is in danger of contamination, and that the local regulations are not sufficient or effective to prevent such pollution, they may petition the department to investigate the case, and to adopt rules under RSA 541-A as the department may deem necessary for the protection of the said supply against any pollution that in its judgment would endanger the public health. Citizens petitioning under this section shall designate a signatory of the petition as the person to whom the department shall send its response.

II. Whenever any board of water commissioners, local board of health, or other owner of a public water supply has reason to believe that a public water supply is in danger of being contaminated or is otherwise threatened and that an emergency condition exists such that a petition pursuant to paragraph I to the department and the adoption of rules would not adequately protect the water supply, the board or owner may petition the governor to declare a state of emergency for the public water supply. At the request of the governor, the department shall consult with the owner of the water supply and make a recommendation as to emergency protections that may be necessary. If the governor declares a state of emergency for a public water supply, those additional protections that the governor deems necessary shall be effective immediately and for the duration of the emergency. The declaration of a state of emergency for a public water supply shall not exceed 6 months. The governor may renew the declaration one time for up to 6 additional months upon further request by the original petitioner. At such time as any of the emergency protections are to become permanent, the department shall initiate rulemaking in accordance with RSA 485:24. Any protections in the governor's declaration shall be enforced in the same manner as rules adopted pursuant to RSA 485:24 or RSA 485:25 with violations of the protections subject to RSA 485:4 and RSA 485:58.

I. The department shall respond in writing to a petition filed under RSA [~~485:23~~] 485:23, I, after due investigation, but not later than 30 days after receipt of the petition, informing the petitioners of the department's intended action. In response to a petition, or upon its own motion, the department shall adopt such rules under RSA 541-A as it may deem best to protect the water or ice supply against any dangerous contamination. If requested by the department, the local board of water commissioners, the local board of health, or the local health officer, shall enforce such rules in cooperation with the department.

141:3 Power to Require Improvements; Citizen Complaint Procedure. Amend RSA 485:4 to read as follows:

I. The department is empowered to investigate the sanitary conditions and methods pertaining to the source, treatment, and distribution of all public water supplies for domestic use, and to require the application of any treatment or improvement in conditions and methods as it may deem necessary to insure fitness and safety and adequate protection of the public health. If the department determines that improvements are necessary, the municipality, corporation, or person shall be so notified in writing and the requirements so ordered shall be effected pursuant to RSA 38:25 within a reasonable time to be fixed by the department. Appeals of actions of the department may be made as provided in RSA 485:59. The department may set intermediate goals and time frames to assist municipalities, corporations, or persons to abide by an order of the department under this [~~section~~] paragraph.

II. Upon complaint of not less than 10 customers of an existing public water system or not less than 10 residents not currently served by a public water supply, the department shall make an investigation of conditions regarding water quality or quantity problems described in the complaint. If, as a result of any such investigation, the department concludes that a significant public health or safety problem exists due to water supply quality or quantity, it shall perform a preliminary analysis of alternatives which address the problem. The department may request additional information from the complainants and nearby public water supply system owners, such as data on water supply quality and quantity, well characteristics, and water distribution system characteristics, as is necessary to perform its investigation and analysis. If the department determines that an extension of water service from an existing public water supply system to the area of impaired water quality or quantity is the most feasible and cost-effective alternative, that the extension is consistent with municipal master planning, local water system policies and rules, RSA 9-B, and RSA 162-C:2, V, and that the existing public water system has adequate water supply and system capacity to serve the problem area, the municipality, corporation, or person who owns the public water system shall be ordered to allow connection to its water distribution system from the identified area, regardless of existing municipal or public water system service area boundaries. The connection so ordered shall be effected pursuant to RSA 38:25 within a reasonable time to be fixed by the department and may contain limitations on water system connections unrelated to the original petition in order to limit unintended land use impacts. Appeals of actions of the department may be made as provided in RSA 485:59. The department may set intermediate goals and time frames to assist municipalities, corporations, or persons to abide by an order of the department under this paragraph. The provisions of this paragraph or of any order issued under this paragraph shall not delegate any costs associated with a connection to the person receiving the order from the department.

141:4 Public Utilities; Municipal Corporations; Sewage Disposal. Amend RSA 362:4, III to read as follows:

III. A municipal corporation furnishing [~~water or~~] sewage disposal services shall not be considered a public utility under this title:

(a) If [~~serving~~] it serves customers outside its municipal boundaries, charging such customers a rate no higher than that charged to its customers within the municipality, and [~~serving~~] serves those customers a [~~quantity and quality of water or a~~] level of sewage disposal service equal to that served to customers within the municipality. Nothing in this section shall exempt a municipal corporation from the franchise application requirements of RSA 374.

(b) If [~~supplying bulk water or~~] it supplies bulk [~~sewer~~] sewage disposal services pursuant to a wholesale rate or contract to another municipality, village district, or water precinct. [~~This subparagraph shall not apply to bulk water contracts which were in effect before July 23, 1989, or renewal of said bulk water contracts.~~]

141:5 New Paragraph; Public Utilities; Municipal Corporations; Water Supply. Amend RSA 362:4 by inserting after paragraph III the following new paragraph:

III-a.(a) A municipal corporation furnishing water services shall not be considered a public utility under this title:

(1) If it serves new customers outside its municipal boundaries, charging such customers a rate no higher than 15 percent above that charged to its municipal customers, including current per-household debt service costs for water system improvements, within the municipality, and serves those customers a quantity and quality of water or a level of water service equal to that served to customers within the municipality. Nothing in this paragraph shall exempt a municipal corporation from the franchise application requirements of RSA 374.

(2) If it supplies bulk water pursuant to a wholesale rate or contract to another municipality, village district, or water precinct. This subparagraph shall not apply to bulk water contracts which were in effect before July 23, 1989, or to the renewal of said bulk water contracts.

(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.

(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 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.

141:6 New Section; Regional Technical Planning and New Source Development; Included in Rates. Amend RSA 378 by inserting after section 30-c the following new section:

378:30-d Regional Technical Planning and New Source Development; Included in Rates. Notwithstanding the provisions of RSA 378:30-a, the commission may include the cost or value of capital improvements or programs in the rates of a utility when the capital improvement or program is directly related to technical planning of regional water supply development or is directly related to development of new water supply sources.

141:7 Committee Established. There is established a committee to study the formation of regional water systems and the eligibility of such systems for state construction grant money under RSA 486-A.

(a) Three members of the house of representatives, appointed by the speaker of the house.

II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

141:9 Duties. The committee shall study the formation of regional water systems and the eligibility of such systems for state construction grant money under RSA 486-A.

141:10 Chairperson; Quorum. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named house member. The first meeting of the committee shall be held within 45 days of the effective date of this section.

141:11 Report. The committee shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the senate president, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2002.