S. J. Res. 38

One Hundred Fourth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Wednesday,

the third day of January, one thousand nine hundred and ninety-six

Joint Resolution

Granting the consent of Congress to the Vermont-New Hampshire Interstate Public

Water Supply Compact.

Resolved by the Senate and House of Representatives of the

United States of America in Congress assembled,

SECTION 1. CONGRESSIONAL CONSENT.

The Congress consents to the Vermont-New Hampshire Interstate Public Water Supply Compact entered into between the States

of Vermont and New Hampshire. The compact reads substantially

as follows:

‘‘Vermont-New Hampshire Interstate Public Water Supply

Compact

‘‘ARTICLE I

‘‘GENERAL PROVISIONS

‘‘(a) STATEMENT OF POLICY.—It is recognized that in certain

cases municipalities in Vermont and New Hampshire 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 Vermont and New Hampshire

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 United States

Congress. ‘‘(c) DEFINITIONS.— ‘‘(1) The term ‘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) The term ‘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 therefore by bonding

and taxation, which may legally impose and collect user charges

and impose and enforce regulatory control upon users of public

water supply facilities.

‘‘(3) The term ‘water supply agency’ shall mean the agencies

within Vermont and New Hampshire possessing regulating
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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) the term ‘governing body’ shall mean the legislative

body of the municipality, including, in the case of a town,

the selectmen or town meeting, and, in the case of a city,

the city council, or the board of mayor and aldermen or any

similar body in any community not inconsistent with the intent

of this definition.

‘‘ARTICLE II

‘‘PROCEDURES AND CONDITIONS GOVERNING INTERGOVERNMENTAL

AGREEMENTS

‘‘(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.
S. J. Res. 38—3

‘‘(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 ratio 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 modifica- tion 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.

‘‘CONSTRUCTION

‘‘Nothing in this compact shall be construed to authorize the establishment of interstate districts, authorities, or any other new

governmental or quasi-governmental entity.

‘‘ARTICLE III

‘‘EFFECTIVE DATE

‘‘This compact shall become effective when ratified by the States of Vermont and New Hampshire and approved by the United States

Congress.’’.

SEC. 2. RIGHT TO ALTER, AMEND, OR REPEAL.

The right to alter, amend, or repeal this joint resolution is hereby expressly reserved. The consent granted by this joint resolution shall not be construed as impairing or in any manner affecting

any right or jurisdiction of the United States in and over the

region which forms the subject of the compact.

SEC. 3. CONSTRUCTION AND SEVERABILITY.

It is intended that the provisions of this compact shall be

reasonably and liberally construed to effectuate the purposes

thereof. If any part or application of this compact, or legislation
S. J. Res. 38—4

enabling the compact, is held invalid, the remainder of the compact

or its application to other situations or persons shall not be affected.

SEC. 4. INCONSISTENCY OF LANGUAGE.

The validity of this compact shall not be affected by any

insubstantial difference in its form or language as adopted by

the two States.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.