A joint resolution granting the consent of Congress to the Vermont-New Hampshire Interstate Public Water Supply Compact.
PL 104-126 (S.J.Res.38), enacted 04/01/1996

110 STAT. 884 
PUBLIC LAW 104-126—APR. 1, 1996 
Public Law 104-126 
104th Congress 
Joint Resolution 
Apr. 1, 1996 
Granting the consent of Congress to the Vermont-New Hampshire Interstate Public 
[S.J. Res. 38] 
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 Inter-
state Public Water Supply Compact entered into between the States 
of Vermont and New Hampshire. The compact reads substantially 
as follows: 
•*Verinont-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 advan-
tage 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 com-
pact 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, trans-
mission 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 
PUBLIC LAW 104-126—APR. 1, 1996 
110 STAT. 885 
authority over the construction, maintenance, and operation 
of pubhc 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 pro-
posed 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 super-
vise and regulate the planning, design, construction, maintenance, 
and operation of said part of the facility. 
"(e) FEDERAL GRANTS AND FINANCING.—(1) Application for Fed-
eral 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 municipali-
ties 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 appro-
priate revenue for the purpose of contributing pro rata to the 
planning, design, and construction cost of public water supply facili-
ties constructed and operated as joint facilities pursuant to this 
compact. 
110 STAT. 886 
PUBLIC LAW 104-126—APR. 1, 1996 
"(f) Co^^^ENTS 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 reason-
able 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 mainte-
nance and operating costs of said facility. 
"(g) APPLICABILITY OF STATE LAWS.—Cooperative agreements 
entered into by municipalities under this compact shall be consist-
ent 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 appropriat-
ing 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 resolu-
tion 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 
PUBLIC LAW 104-126—APR. 1, 1996 
110 STAT. 887 
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. 
Approved April 1, 1996. 
LEGISLATIVE HISTORY-g.J. Res. 38 (H.J. Res. 129): 
HOUSE REPORTS: No. 104-485 accompanying H.J. Res. 129 (Comm. on the Judici-
ary). 
CONGRESSIONAL RECORD: 
VoL 141 (1995): Dec. 18, considered and passed Senate. 
Vol. 142 (1996): Mar. 19, H.J. Res. 129 and S.J. Res. 38 considered and 
passed House.