§ 1232. General provisions—Article I
A. Statement of policy. It is recognized that in certain cases municipalities in New Hampshire and Vermont
may, in order to avoid duplication of cost and effort, and in order to take advantage
of economies of scale, find it necessary or advisable to enter into agreements whereby
joint public water supply facilities are erected and maintained. The states of New
Hampshire and Vermont recognize the value of and need for such agreements, and adopt
this compact in order to authorize their establishment.
B. Requirement of congressional approval. This compact shall not become effective until approved by the U.S. Congress.
C. Definitions.
1. “Public water supply facilities” shall mean publicly owned water supply sources, storage,
treatment, transmission, and distribution facilities and ancillary facilities regardless
of whether or not the same qualify for federal or state construction grants-in-aid.
2. “Municipalities” shall mean cities, towns, village districts, or other incorporated
units of local government possessing authority to construct, maintain, and operate
public water supply facilities and to raise revenue therefor by bonding and taxation,
that may legally impose and collect user charges and impose and enforce regulatory
control upon users of public water supply facilities.
3. “Water supply agency” shall mean the agencies within New Hampshire and Vermont possessing
regulating authority over the construction, maintenance, and operation of public water
supply facilities and the administration of grants-in-aid from their respective state
for the construction of such facilities.
4. “Governing body” shall mean the legislative body of the municipality. (Added 1995, No. 37, § 1.)
§ 1233. Procedures and conditions governing intergovernmental agreements—Article II
A. Cooperative Agreements Authorized. Any two or more municipalities, one or more located in New Hampshire and one or more
located in Vermont, may enter into cooperative agreements for the construction, maintenance,
and operation of public water supply facilities serving all the municipalities who
are parties thereto.
B. Approval of Agreements. Any agreement entered into under this compact shall, prior to becoming effective,
be approved by the water supply agency of each state, and shall be in a form established
jointly by said agencies of both states.
C. Method of Adopting Agreements. Agreements shall be adopted by the governing body of each municipality in accordance
with statutory procedures for the adoption of interlocal agreements between municipalities
within each state; provided that before a Vermont municipality may enter into such
agreement, the proposed agreement shall be approved by the voters.
D. Review and Approval of Plans. The water supply agency of the state in which any part of a public water supply facility
which is proposed under an agreement pursuant to this compact is proposed to be or
is located, is hereby authorized and required, to the extent such authority exists
under its state law, to review and approve or disapprove all reports, designs, plans,
and other engineering documents required to apply for federal grants-in-aid or grants-in-aid
from said agency’s state, and to supervise and regulate the planning, design, construction,
maintenance, and operation of said part of the facility.
E. Federal Grants and Financing.
1. Application for federal grants-in-aid for the planning, design, and construction of
public water supply facilities other than distribution facilities shall be made jointly
by the agreeing municipalities, with the amount of the grant attributable to each
state’s allotment to be based upon the relative total capacity reserves allocated
to the municipalities in the respective states determined jointly by the respective
state water supply agencies. Each municipality shall be responsible for applying for
federal and state grants for distribution facilities to be located within the municipal
boundaries.
2. Municipalities are hereby authorized to raise and appropriate revenue for the purpose
of contributing pro rata to the planning, design, and construction cost of public
water supply facilities constructed and operated as joint facilities pursuant to this
compact.
F. Contents of Agreements. Agreements entered into pursuant to this compact shall contain at least the following:
1. A system of charges for users of the joint public water supply facilities.
2. A uniform set of standards for users of the joint public water supply facilities.
3. A provision for the pro rata sharing of operating and maintenance costs based upon
the ration of actual usage as measured by devices installed to gauge such usage with
reasonable accuracy.
4. A provision establishing a procedure for the arbitration and resolution of disputes.
5. A provision establishing a procedure for the carriage of liability insurance, if such
insurance is necessary under the laws of either state.
6. A provision establishing a procedure for the modification of the agreement.
7. A provision establishing a procedure for the adoption of regulations for the use,
operation, and maintenance of the public water supply facilities.
8. A provision setting forth the means by which the municipality that does not own the
joint public water supply facility will pay the other municipality its share of the
maintenance and operating costs of said facility.
G. Applicability of State Laws. Cooperative agreements entered into by municipalities under this compact shall be
consistent with, and shall not supersede, the laws of the state in which each municipality
is located. Notwithstanding any provision of this compact, actions taken by a municipality
pursuant to this compact, or pursuant to an agreement entered into under this compact,
including the incurring of obligations or the raising and appropriating of revenue,
shall be valid only if taken in accordance with the laws of the state in which such
municipality is located. (Added 1995, No. 37, § 1.)