[House Report 104-485]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-485
_______________________________________________________________________


                GRANTING THE CONSENT OF CONGRESS TO THE
 
     VERMONT-NEW HAMPSHIRE INTERSTATE PUBLIC WATER SUPPLY COMPACT
_______________________________________________________________________


   March 18, 1996.--Referred to the House Calendar and ordered to be 
                                printed

                                _______


 Mr. Hyde, from the Committee on the Judiciary, submitted the following

                              R E P O R T

                      [To accompany H.J. Res. 129]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on the Judiciary, to whom was referred the 
joint resolution (H.J. Res. 129) granting the consent of 
Congress to the Vermont-New Hampshire Interstate Public Water 
Supply Compact, having considered the same, report favorably 
thereon without amendment and recommend that the joint 
resolution do pass.

                          SUMMARY AND PURPOSE

    H.J. Res. 129 grants congressional consent to an interstate 
compact adopted by Vermont and New Hampshire that would enable 
municipalities in one of the States to enter into agreements 
with neighboring cross-border municipalities in the other to 
erect and maintain joint public water supply facilities.

                BACKGROUND AND NEED FOR THE LEGISLATION

    Article I, Section 10, Clause 3 of the United States 
Constitution provides that: ``No State shall without the 
Consent of Congress * * * enter into any Agreement or Compact 
with another State, or with a foreign power. * * *''
    Congressional consent is required for such agreements and 
compacts in order to determine whether they work to the 
detriment of another State and to ensure that they do not 
conflict with Federal law or Federal interests.
    The Vermont-New Hampshire Interstate Public Water Supply 
Compact was entered into by the State of Vermont through 
enactment of House Bill 519 on April 17, 1995 and by the State 
of New Hampshire through enactment of House Bill 494 on June 
12, 1995. According to testimony received by the Subcommittee 
on Commercial and Administrative Law during a hearing on 
February 29, 1996, the compact was developed in response to the 
situation which confronted Guildhall, Vermont and 
Northumberland (commonly referred to as Groveton), New 
Hampshire.
    Some residents of Guildhall have been receiving water from 
a spring located in Northumberland for generations. Although 
Guildhall owns the spring, the water is sent through 
transmission lines owned by New Hampshire.
    The Surface Water Treatment Rule issued pursuant to the 
Safe Drinking Water Act of 1986 (P.L. 99-339) requires that 
water from the spring (because it is surface water) be 
refiltered or that the water system be converted to a 
groundwater system. Guildhall determined that a groundwater 
system on its side of the border was too expensive and has 
joined with Northumberland's plans for an upgraded groundwater 
system.
    Guildhall reportedly owes Northumberland $75,200 for its 
proportionate share of developing the groundwater system and it 
plans to upgrade the water transmission lines on the Vermont 
side of the border so that the village has enough water for 
fire protection and necessary infrastructure. However, 
Guildhall cannot afford to make payment to Northumberland or 
upgrade its transmission lines without Federal assistance. In 
order to be eligible for the federal assistance Guildhall 
seeks, there must be in effect an interstate water compact.

                                HEARINGS

    The Committee's Subcommittee on Commercial and 
Administrative Law held a hearing on H.J. Res. 129 on February 
29, 1996. Testimony was received from Congressmen Charles F. 
Bass of New Hampshire and Bernard Sanders of Vermont.

                        COMMITTEE CONSIDERATION

    On February 29, 1996, the Subcommittee on Commercial and 
Administrative Law met in open session and ordered reported 
H.J. Res. 129 by voice vote, a quorum being present. On March 
12, 1996, the Committee met in open session and ordered 
reported H.J. Res. 129 without amendment by voice vote, a 
quorum being present.

                      COMMITTEE OVERSIGHT FINDINGS

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) or rule X of the 
Rules of the House of Representatives are incorporated in the 
descriptive portions of this report.

         COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT FINDINGS

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives.

               NEW BUDGET AUTHORITY AND TAX EXPENDITURES

    Clause 2(l)(3)(B) of House rule XI is inapplicable because 
this legislation does not provide new budgetary authority or 
increased expenditures.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    In compliance with clause 2(l)(C)(3) or rule XI of Rules of 
the House of Representatives, the Committee sets forth, with 
respect to H.J. Res. 129, the following estimate and comparison 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 15, 1996.
Hon. Henry J. Hyde,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.J. Res. 129, a joint resolution granting the consent 
of Congress to the Vermont-New Hampshire Interstate Public 
Water Supply Compact, as ordered reported by the House 
Committee on the Judiciary on March 12, 1996. CBO estimates 
that enacting this legislation would result in no cost to the 
federal government. The bill contains no new intergovernmental 
or private sector mandates, as defined in Public Law 104-4, and 
would impose no new direct costs on state, local or tribal 
governments.
    The joint resolution would permit municipalities in Vermont 
and New Hampshire to enter into agreements to erect and 
maintain joint public water supply facilities. Enacting H.J. 
Res. 129 would not affect direct spending or receipts. 
Therefore, pay-as-you-go procedures would not apply to this 
legislation.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                         June E. O'Neill, Director.

                     INFLATIONARY IMPACT STATEMENT

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that H.J. 
Res. 129 will have no significant inflationary impact on prices 
and costs in the national economy.

                      SECTION-BY-SECTION ANALYSIS

Section 1

    This section grants the consent of Congress to the Vermont-
New Hampshire Interstate Water Supply Compact, the text of 
which is set out in the section.
    Article I of the compact contains the statement of policy 
and definitions. Furthermore, it notes that the compact does 
not become effective until approved by the United States 
Congress.
    Article II sets out the procedures and conditions governing 
intergovernmental agreements. Section (a) authorizes 
municipalities from Vermont and New Hampshire to enter into 
cooperative agreements with cross-border municipalities for the 
construction, maintenance, and operation of public water supply 
facilities serving all municipalities which are parties to the 
agreement. Section (b) provides that agreements entered into 
under the authority of the compact shall be approved by the 
water supply agency of each State, and shall be in a form 
established jointly by the water supply agencies of both 
States. Section (c) requires agreements to 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. However, before a 
Vermont municipality may enter into an agreement, the proposed 
agreement must be approved by the voters.
    Section (d) provides that the water supply agency of the 
State in which any part of the public water supply facility is 
proposed to be or is located shall review and approve all 
reports, designs, plans and other engineering documents 
required for Federal or State grants-in-aid and shall supervise 
and regulate the planning, design, construction, maintenance, 
and operation of that part of the facility.
    Section (e)(1) provides that applications 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 within its boundaries. Section (e)(2) authorizes 
municipalities to raise and appropriate revenue for the purpose 
of contributing pro rata for the planning, design and 
construction costs of public water supply facilities 
constructed and operated as joint facilities pursuant to the 
compact.
    Section (f) establishes eight minimum elements that 
agreements shall contain, including: 1. a system of charges; 2. 
a uniform set of standards for users; 3. a provision for the 
pro rata sharing of operating and maintenance costs based upon 
the ratio of actual usage; 4. a provision establishing a 
procedure for arbitration and resolution of disputes; 5. a 
provision establishing a procedure for carriage of liability 
insurance, if such insurance is necessary under the laws of 
either State; 6. a provision establishing a procedure to modify 
the agreement; 7. a provision establishing a procedure for the 
adoption of regulations for the use, operation and maintenance 
of the facilities; and, 8. a provision establishing the means 
by which municipalities that do not own the joint water 
facility will pay the other municipalities its share of the 
maintenance and operating costs of the facility.
    Section (g) provides that agreements shall be consistent 
with and not supersede the laws of the State in which the 
municipality is located. Actions taken by a municipality 
pursuant to the compact, or agreements entered into thereunder, 
shall be valid only if taken in accordance with the laws of the 
State in which the municipality is located. The article 
declares that nothing in the compact shall be construed to 
authorize establishment of interstate districts, authorities or 
new governmental or quasi-governmental authorities.
    Article III provides that the compact will become effective 
when ratified by the States of Vermont and New Hampshire and 
approved by the United States Congress.

Section 2

    This section provides that the right to alter, amend or 
repeal the resolution is reserved. Consent granted by it shall 
not be construed as impairing or affecting rights or 
jurisdiction of the United States in Vermont or New Hampshire.

Section 3

    This section provides that the compact shall be reasonably 
and liberally construed to effectuate its purposes. It further 
provides that if any part or application of it is held invalid 
the remainder shall not be affected.

Section 4

    This section provides that the validity of the compact 
shall not be affected by insubstantial differences in form or 
language as adopted by the two States.

         changes in existing law made by the bill, as reported

  Clause 3 of rule XIII of the Rules of the House of 
Representatives requires that changes in existing law made by 
the bill, as reported, be included in the report.
  This bill makes no direct amendments to any Act.

                                
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