TITLE L
WATER MANAGEMENT AND PROTECTION

Chapter 485-H
PER AND POLYFLUOROALKYL SUBSTANCES (PFAS) FUND AND PROGRAMS

Section 485-H:1

    485-H:1 Purpose Statement. – Communities across the state have been impacted by perfluorochemical contamination, largely through no fault of their own. Perfluorochemicals are a class of chemicals that are part of a larger group of chemicals called per and polyfluoroalkyl substances (PFAS). The cost of remediating this contamination for many communities would result in dramatically higher water and sewer rates for end users. The existence of these man-made chemicals, some of which are occurring at unhealthy levels in New Hampshire's drinking water, require a strategy to protect, preserve, and enhance the water that New Hampshire citizens and environment rely upon.

Source. 2020, 30:4, eff. July 23, 2020. 2021, 223:4, eff. Aug. 24, 2021.

Section 485-H:2

    485-H:2 Definitions. –
In this chapter:
I. "Community water system" means "community water system" as defined in RSA 485:1-a.
II. "Department" means the department of environmental services.
III. "Drinking water standard" means the maximum contaminant levels established pursuant to RSA 485:16-e.
IV. "PFAS response fund" means the PFAS response fund established in RSA 485-H:10.
V. "Non-transient non-community water system" means "non-transient non-community water system as defined in RSA 485:1-a.
VI. "Wastewater residuals" means septage, sludge, or biosolids.

Source. 2020, 30:4, eff. July 23, 2020. 2021, 223:5, eff. Aug. 24, 2021. 2023, 79:358, eff. June 20, 2023.

Section 485-H:3

    485-H:3 Implementation of Drinking Water Protection Program. –
I. The department shall provide low-interest loans and grants for the purpose of addressing exceedances of PFAS drinking water standards to:
(a) Municipalities for municipal use;
(b) Municipalities for use in assisting private well users including funds necessary to address the reasonable administrative costs of the municipality;
(c) Community water systems for use on an existing system or to expand a system to assist additional water users; and
(d) Non-profit, non-transient non-community water systems.
Such loans and grants shall be provided for the projects described below begun after September 30, 2019.
II. The department shall provide the loans and grants described in paragraph I for projects needed to meet a PFAS drinking water standard if the applicant demonstrates, and the department agrees, that the project is the most cost-effective way to meet PFAS drinking water standards and if the project meets the other provisions of this chapter and department rules adopted pursuant to this chapter.
II-a. The department may establish rebate programs to assist impacted private well users with water treatment or connection to public water systems.
III. The department shall adopt rules, and include conditions in loan and grant documents, to ensure that the applicant has made and will make reasonable efforts to obtain and use funds from any liable or potentially liable third party prior to and after taking a loan from the PFAS response fund or receiving a grant, and that any money received from a liable or potentially liable third party after the loan is provided is applied to early repayment of such loan to the extent reasonable. In addition, the department shall adopt rules establishing criteria to ensure that an applicant shall not be eligible for loans or grants for any project or portion of a project to the extent the negligence of the applicant caused the contamination that resulted in the exceedance of a PFAS drinking water standard.
IV. If the department forgives any part of a loan or provides a grant related to costs for a project for which a third party might otherwise be liable, the right to recover payment from such third party shall be subrogated to the department to the extent of such forgiveness or grant. Any money recovered by the department from such third party shall be deposited in the PFAS response fund.
V. Loans may be made for up to the total cost of the project minus any contribution from a liable or potentially liable third party or any other portion deemed ineligible under this chapter and department rules.
VI. Municipalities may assist private well users impacted by PFAS contamination in a manner consistent with this chapter, may accept and expend grants and loans provided by the department pursuant to subparagraphs I(a) and (b), and may apply for and receive funds from the department necessary to cover reasonable administrative costs related to implementation of subparagraph I(b).

Source. 2020, 30:4, eff. July 23, 2020. 2021, 223:6, eff. Aug. 24, 2021. 2022, 326:9, eff. July 8, 2022. 2023, 79:359, eff. June 20, 2023.

Section 485-H:4

    485-H:4 Implementation of Groundwater, Surface Water and Aquatic Life Protection. –
I. The department shall provide low interest loans and grants to publicly-owned and non-profit wastewater and/or wastewater residual treatment or storage facilities that are required to treat effluent and residuals to achieve applicable PFAS standards prior to discharge or disposal.
II. The department shall provide the loans and grants described in paragraph I if the applicant demonstrates, and the department agrees, that the project is the most cost-effective way to meet applicable PFAS standards and if the project meets the other provisions of this chapter and department rules adopted pursuant to this chapter. The applicant shall provide evidence in the application for funding that there is not a more cost-effective way to meet applicable PFAS standards.
III. The department shall adopt rules, and include conditions in loan and grant documents, to ensure that the applicant has made reasonable efforts to obtain and use funds from any liable or potentially liable third party prior to and after taking a loan from the PFAS response fund or receiving a grant, and that any money received from a liable or potentially liable third party at a later time is applied to early repayment of the loan from the PFAS response fund to the extent reasonable. In addition, the department shall adopt rules establishing criteria to ensure that an applicant shall not be eligible for loans or grants for any project or portion of a project to the extent the negligence of the applicant caused the contamination that resulted in the exceedance of an applicable PFAS standard.
IV. If the department forgives any part of a loan or provides a grant related to costs for a project for which a third party might otherwise be liable, the right to recover payment from such third party shall be subrogated to the department to the extent of such forgiveness. Any money recovered by the department from such third party shall be deposited in the PFAS response fund.
V. Loans may be made for up to the total cost of the project minus any contribution from a liable or potentially liable third party or any other portion deemed ineligible under this chapter and department rules.

Source. 2020, 30:4, eff. July 23, 2020. 2021, 223:6, eff. Aug. 24, 2021. 2023, 79:360, eff. June 20, 2023.

Section 485-H:5

    485-H:5 Loan Principal Forgiveness Based Upon Need. –
I. The department shall forgive up to 10 percent of the loan principal to municipalities, community water systems and non-profit, non-transient non-community water systems using the same qualifying standards for forgiveness used in the drinking water state revolving loan program established under RSA 486:14.
II. The department shall forgive up to 10 percent of the loan principal for publicly-owned and non-profit wastewater treatment facilities using the same qualifying standards for forgiveness used in the clean water state revolving loan program established under RSA 486:14.
III. Total loan forgiveness under this section shall not exceed $5 million.

Source. 2020, 30:4, eff. July 23, 2020. 2021, 223:7, eff. Aug. 24, 2021.

Section 485-H:6

    485-H:6 Contingent Reimbursement. –
I. Following the reimbursement of the department of justice for legal expenses related to relevant litigation; the transfer of funds to the revenue stabilization reserve account pursuant to RSA 7:6-e; the redemption of bonds issued or debt incurred pursuant to RSA 6:13-e, III(a); and reimbursement of the general fund for any debt principal or interest payments made to support bonds issued or debt incurred pursuant to RSA 6:13-e, III(a), any remaining funds from judgments or settlements received by the state resulting from lawsuits against the manufacturers of PFAS shall be deposited into the drinking water and groundwater trust fund established in RSA 6-D:1.
II. In addition to the loan forgiveness described in RSA 485-H:5, the department, upon certification by the state treasurer that funds from judgments or settlements have been received and used to redeem the bonds issued under RSA 6:13-e in full and the general fund has been reimbursed for all interest and principal payments charged against it to support said bond, shall grant partial loan forgiveness to the loan recipients, up to 50 percent of the loan principal.
(a) If insufficient funds are received by the state to cover 50 percent of the principal, the reimbursements shall be prorated. In no instance shall the loan reimbursement exceed 50 percent of the total loan amount, unless it received loan forgiveness under RSA 485-H:5, in which case the combined maximum shall be 60 percent.
(b) In the event a loan recipient receives compensation from a responsible party, the department shall not grant partial loan forgiveness that in combination with any compensation would exceed 100 percent of the total cost of the remediation.

Source. 2020, 30:4, eff. July 23, 2020.

Section 485-H:7

    485-H:7 Drinking Water and Groundwater Trust Fund Exception. – Notwithstanding any law to the contrary, any funds deposited into the drinking water and groundwater trust fund established in RSA 6-D:1 as a result of this chapter may be transferred to the department to be used for funding PFAS remediation projects, including those at wastewater treatment facilities, at the discretion of the drinking water and groundwater trust fund's advisory commission.

Source. 2020, 30:4, eff. July 23, 2020. 2021, 223:8, eff. Aug. 24, 2021.

Section 485-H:8

    485-H:8 Duties of the Department. –
I. The department shall perform the following duties to the limit of available funding:
(a) Establishing and administrating the PFAS remediation loan and grant program to assist municipalities; community and non-profit, non-transient non-community water systems; and publicly owned and non-profit wastewater treatment facilities with the cost of complying with PFAS drinking water standards or other applicable PFAS standards.
(b) Establishing and administering a loan forgiveness program to assist disadvantaged communities with loan repayment.
(c) Awarding loan funds to projects that meet the provisions of this chapter including the following criteria:
(1) The project is or was necessary to comply with a PFAS drinking water standard or other applicable PFAS standard and the applicant for funding is a municipality, a community water system, or a non-profit, non-transient public water system, or a publicly-owned or non-profit wastewater and/or wastewater residual treatment or storage facility.
(2) The applicant has demonstrated, to the satisfaction of the department, that the project is the most cost-effective way to meet PFAS drinking water standards and other applicable PFAS standards.
(d) Awarding reimbursements to projects from the fund in a manner consistent with this chapter.
(e) Investigating, testing, and monitoring PFAS in soil, groundwater, surface water, wastewater, air, biota, and other media.
(f) Conducting scientific investigation to support development of appropriate regulatory standards for PFAS, and development and implementation of treatment and remediation methods for PFAS in air, water, soil and other media.
II. Every year beginning December 1, 2020, the department shall prepare and file a report with the general court evaluating the progress made relative to PFAS contamination, the efficiency of the program established under this chapter, and whether it continues to provide the maximum benefit to New Hampshire citizens, and providing any recommendations on potential additional tasks for which the fund could be used to address PFAS contamination.

Source. 2020, 30:4, eff. July 23, 2020. 2021, 223:8, eff. Aug. 24, 2021. 2023, 79:361, eff. June 20, 2023.

Section 485-H:9

    485-H:9 Rules. – The department shall adopt rules, under RSA 541-A, relative to administering this chapter.

Source. 2020, 30:4, eff. July 23, 2020. 2021, 223:8, eff. Aug. 24, 2021.

Section 485-H:10

    485-H:10 PFAS Response Fund Established. – There is hereby established in the department the PFAS response fund which shall be maintained as distinct and separate from all other funds. The PFAS response fund shall be invested in accordance with RSA 6:8. Any earnings on PFAS response fund moneys shall be added to the PFAS response fund. All moneys in the PFAS response fund shall be non-lapsing and shall be continually appropriated to the department. The PFAS response fund shall be used to fund departmental duties as outlined in RSA 485-H:8, including loans, grants, and reimbursements in accordance with this chapter. Funds from any bond proceeds, grants, loan repayments, legislative appropriations, donations, and other funds related to the PFAS response fund shall be credited to the PFAS response fund.

Source. 2020, 30:4, eff. July 23, 2020. 2021, 223:8, eff. Aug. 24, 2021. 2023, 79:362, eff. June 20, 2023.

Section 485-H:11

    485-H:11 Grants. –
I. The department, to the limit of the funds appropriated to the department for this purpose through the actions of the fiscal committee established under RSA 14:30-a or by the general court, shall provide grants to entities meeting the eligibility requirements of RSA 485-H:3 and RSA 485-H:4 for up to the greater of $1,500,000 or 30 percent of the total eligible cost of the project or as provided for in rebate programs established by the department under RSA 485-H:3, II-a.
II. In no instance shall the grant exceed the total eligible costs.
III. In no instance shall the sum of all department administered funding of the project, to include loans and grants, exceed the total eligible costs.
IV. If department administered funding had been secured prior to this grant being available, such that the addition of the grant would cause the sum of the funding to exceed the total eligible costs, then the department administered loan amounts shall be reduced on a prorated basis to the extent required to bring the sum of the funding equal to total eligible costs.

Source. 2021, 223:9, eff. Aug. 24, 2021. 2022, 326:8, eff. July 8, 2022.

Section 485-H:12

    485-H:12 Statute of Limitations; Civil Actions; PFAS Exposure. – A civil action arising out of any harm or injury caused by a person or entity found legally responsible for or an action for any damages resulting from a PFAS exposure may be brought within the 6 years after the date the plaintiff discovers, or in the exercise of reasonable diligence should have discovered, such harm, injury, or damages and the causal relationship of an act or omission to such harm, injury or damages. Nothing in this section shall be construed as limiting any action brought by the state.

Source. 2021, 133:1, eff. Sept. 21, 2021.

Section 485-H:13

    485-H:13 PFAS Rulemaking and Soil Remediation Standards. – By November 1, 2023, the commissioner shall initiate rulemaking in accordance with RSA 541-A to adopt rules specific to the application of RSA 485, RSA 485-C, RSA 147-A, and RSA 147-B to PFAS contamination and may update such rules thereafter. Such rules shall include soil remediation standards for perfluorooctanoic acid (PFOA), perfluoroctanesulfonic acid (PFOS), perfluorononanoic acid (PFNA), and perfluorohexanesulfonic acid (PFHxS). Such rules may include a requirement for testing for PFAS other than those for which the state currently has an AGQS.

Source. 2022, 326:1, eff. July 8, 2022.