HB674: relative to eliminating the water resources council, relative to dams, and authorizing the Connecticut lakes headwaters citizens committee to advise the department of environmental services on the management of Lake Francis and associated property.

CHAPTER 112

HB 674-FN-A – FINAL VERSION

2009 SESSION

09-0930

08/03

HOUSE BILL 674-FN-A

AN ACT relative to eliminating the water resources council, relative to dams, and authorizing the Connecticut lakes headwaters citizens committee to advise the department of environmental services on the management of Lake Francis and associated property.

SPONSORS: Rep. Stohl, Coos 1; Sen. Merrill, Dist 21; Sen. Gallus, Dist 1

COMMITTEE: Resources, Recreation and Development

ANALYSIS

This bill:

I. Eliminates the water resources council and authorizes the Connecticut lakes headwaters citizens committee to advise the department of environmental services on the management of Lake Francis and associated property.

II. Transfers title of certain dams to the department of environmental services.

III. Transfers contractual obligations of the water resources council to the department of environmental services.

IV. Modifies the department of environmental services’ obligation to make payments in lieu of taxes to certain municipalities where certain dams are located.

This bill is a request of the department of environmental services.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09-0930

08/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT relative to eliminating the water resources council, relative to dams, and authorizing the Connecticut lakes headwaters citizens committee to advise the department of environmental services on the management of Lake Francis and associated property.

Be it Enacted by the Senate and House of Representatives in General Court convened:

112:1 Custodial and Escrow Accounts. Amend RSA 6:12-d, XII to read as follows:

XII. The water resources [council] project accounts of the department of environmental services.

112:2 New Subparagraph; Connecticut Lakes Headwaters Citizens Committee; Membership. Amend RSA 12-A:9-b, I by inserting after subparagraph (l) the following new subparagraph:

(m) The commissioner of the department of environmental services, or designee.

112:3 New Subparagraph; Connecticut Lakes and Headwaters Citizens Committee; Duties. Amend RSA 12-A:9-b, V by inserting after subparagraph (g) the following new subparagraph:

(h) Providing advice to the department of environmental services on the management of Lake Francis and approximately 2,676 upland acres of state-owned land known as the Lake Francis impoundment property, including the lease program for the property established under RSA 481:3-a and administered by the department of environmental services.

112:4 Natural Areas Council; Definitions. Amend RSA 217-A:3, XIII(e) to read as follows:

(e) The [water resources council] department of environmental services.

112:5 Water Conservation Projects; Cost of Project. Amend RSA 481:2, III to read as follows:

III. “Cost of project” shall mean the cost of construction; the cost of all lands, property, rights, easements, and franchises acquired which are deemed necessary for construction; the cost of all machinery and equipment; financing charges; interest prior to and during construction; cost of engineering and legal expense, plans, specifications, surveys, estimates of costs, and other expenses necessary or incident to determining the feasibility or practicability of any project; all costs to operate, maintain, and repair the project; the proportionate administrative expense properly allocable to a project as determined by the department; and other expenses as may be necessary or incident to [the financing authorized in this chapter,] the construction, operation, maintenance, and repair of the project[, and the placing of the project in operation].

112:6 Lease Program for Lake Francis. Amend RSA 481:3-a to read as follows:

481:3-a Lease Program for Lake Francis. It is the intent of the legislature to authorize a [new] property leasing program, [to replace that program now administered by the water resources council] upon those lands under [its jurisdiction] the jurisdiction of the department on the Lake Francis impoundment property. The goal of the property leasing program is to make a solid contribution to the economic vitality of the Pittsburg-Clarksville region. This policy is further designed to engender an appreciation for the appeal of northern New Hampshire for the people of New Hampshire. To accomplish these goals the [water resources council] department shall establish and administer, upon the property of the Lake Francis impoundment area, a property leasing program as a responsibility secondary in priority to the ongoing water resource project of Lake Francis. The [water resources council] department shall have the full authority, as is required, to organize a property leasing program which is compatible with its primary on-site water resource project. The administration of the property leasing program shall be accomplished subject to the following conditions:

I. The present lessees shall be given first priority in leasing their present property under the new program.

II. The term of the leases, subject to appropriate behavior as determined by the [water resources council] department, shall be 25 years and shall be renewable at the option of the lessee. The rental payment shall be recalculated and adjusted no later than 5 years following its last determination.

112:7 Contracts. Amend RSA 481:8 to read as follows:

481:8 Contracts.

I. [Upon receipt of the written order specified in RSA 481:7,] The department, in order to make the project so far as possible self-liquidating and self-supporting, shall make contracts in the name of the department with persons or corporations as may be specially benefited by the project, including users of water in and outside the state for power or other purposes, covering the terms under which the persons or corporations shall pay for the benefits. No contract shall extend for more than 50 years from the completion of the project. The compensation for the use of stored water or other benefits created by the projects shall be made equitable as among different users. All contracts shall benefit and bind the contracting users and their successors in title to the dams, water and flowage rights, generating plants, mills, or other real estate constituting the property on account of whose benefit the compensation is payable. All contracts entered into by the department for the construction of a project or for the use of stored water must be approved by the governor and council.

II. If [the written order specified in RSA 481:7 directs the department to proceed with] the department undertakes a project in which the electricity is to be generated at the dam or reservoir site, the department, for the purpose of making the project so far as possible self-liquidating and self-supporting [and in accordance with the order], shall make contracts [in the name of the department] with developers or operators of the hydro-energy production facility as the department may determine to be best qualified or with such users or distributors of the mechanical or electrical power generated by the facility as the department may determine to best serve the interests of the state. The contracts shall include terms under which the persons shall make full and proper restitution to the state. No contract with an operator, user, or distributor of electrical or mechanical power shall extend for more than 50 years from the completion of the project. All contracts with an operator, user, or distributor of mechanical or electrical power shall benefit and bind their successors in interest. All contracts entered into by the department under this paragraph shall be subject to the approval of the governor and council.

III. Notwithstanding paragraphs I and II, all contracts shall provide that in the event of a shortage crisis, as determined by the governor and council, in either the water resources of the state or the capacity to fulfill the electrical requirements of the state, the governor and council may suspend the terms of contracts which provide services outside of the state to fulfill the needs and requirements of the citizens of New Hampshire.

112:8 Tax Exemption. Amend RSA 481:14 to read as follows:

481:14 Tax Exemption. All property and rights acquired by the department shall be exempt from all taxation, but the department shall continue to make payments in lieu of taxes, on or before December 1 [in] of each year, to each town or city [in] to which [property or rights acquired by the department are located] the department made such payments as of December 31, 2008. Such sums shall be based on the tax rate then current in each town or city and on the average assessed valuation for a period of 5 years prior to the acquisition by the department; provided that when [a town or city in which department land is located] those towns or cities shall have made a general revaluation of property for tax assessment purposes, then the new values shall be used for the determination of the sums as would have been assessed against the property and rights in such town or city if the same had been included in the tax invoice for such year. Betterments, changes in land use or new structures are exempted and shall not be used for the determination of such sums to be paid in lieu of taxes. Provided, however, that the provisions of this section shall not apply to the dam and any appurtenances thereto owned by the department and located in the towns of Pittsburg and Clarksville, and there shall be paid annually to said towns the sum of $40,000 in lieu of taxes, said sum to be apportioned between the towns in the same ratio that the value of that portion of the dam and any appurtenances thereto located in each town bears to the total value of the dam and any appurtenances thereto as determined by the tax assessors of the towns.

112:9 Acquisition Authorized. Amend RSA 482:48 to read as follows:

482:48 Acquisition Authorized.

I. For a consideration of $1, unless otherwise noted, the department is authorized to accept conveyance from the property owners the following described property for the purpose of improving and controlling certain water rights for the benefit of the state. The department shall own all property and interest held by the former water resources council. The department after acquisition shall, from time to time, make repairs and modifications to the dams so acquired or rebuild them if required to best serve the interests of the state. The properties the department is authorized to acquire for the benefit of the state shall be exempt from taxation as long as the properties are held by the state.

(a) The dam, water rights, and lands used in connection with Mirror Lake dam on a tributary of Hubbard Brook and Pemigewasset River in the town of Woodstock in Grafton county.

(b) From the towns of Barrington, Northwood, and Nottingham, the dam on North River Pond situated in the town of Nottingham, water rights, land, and other connected facilities.

(c) The dam at the outlet of Angle Pond in the town of Sandown, water rights, land, and other connected facilities.

(d) The dam on Pine River Pond in the town of Wakefield, water rights, land, and other connected facilities. The department shall place a suitable plaque at the dam with such detail as the department deems appropriate.

(e) The dam, dikes, and appurtenances containing and controlling the waters of Hubbard Pond in the town of Rindge, including flumes, sluiceways, equipment, and apparatus connected with or appurtenant to said dam and dikes including the right to pass or repass to said dam and dikes for the operation, maintenance, repair, reconstruction, and construction of said dam, dikes, and appurtenances. The grantor’s right, title, and interest in the lands above the highwater level of the aforesaid pond, including all islands, which have been previously conveyed to them are hereby reserved.

(f) The dam, dikes, and appurtenances containing and controlling the waters of Pratt Pond in the town of Mason, including flumes, sluiceways, equipment, and apparatus connected with or appurtenant to said dam and dikes including the right to pass or repass to said dam and dikes for the operation, maintenance, repair, reconstruction, and construction of said dam, dikes and appurtenances. The grantor’s right, title, and interest in the lands above the highwater level of the aforesaid pond, including all islands, which have been conveyed to them are reserved.

(g) The dam, dikes, and appurtenances containing and controlling the waters of Ballard Pond in the town of Derry, including flumes, sluiceways, equipment, and apparatus connected with or appurtenant to said dam and dikes, including the right to pass or repass to said dam and dikes for the operation, maintenance, repair, reconstruction, and construction of said dam, dikes, and appurtenances. The grantor’s right, title, and interest in the lands above the highwater level of the aforesaid pond, including all islands, which have been conveyed to them are reserved. The ownership, use, and maintenance of the Taylor Mill, near the dam on Ballard Pond in the town of Derry, including all necessary machinery and controls, is not conveyed by this paragraph.

(h) The dam, dikes, and appurtenances containing and controlling the waters of the Black reservoir in the town of Jaffrey, known as number 124.06, including flumes, sluiceways, equipment, and apparatus connected with or appurtenant to said dam and dikes, including the right to pass and repass to said dam and dikes for the operation, maintenance, repair, reconstruction, and construction of said dam, dikes, and appurtenances. The grantor’s right, title, and interest in the lands above the highwater level of the aforesaid reservoir, including all islands, which have been previously conveyed to them are reserved. The department is authorized to rebuild, repair, and maintain the reservoir to best serve the interests of the state, utilizing moneys from the dam maintenance fund established under RSA 482:55.

(i) The dam known as Shell Camp Pond dam or Jones Mill dam on Shell Camp Pond situated in the town of Gilmanton, water rights, land, and other connected facilities. Any land or facilities acquired by the department as a result of the acquisition authorized by this paragraph which the department, with the approval of the governor and council, determines not to be necessary to retain in order to achieve the purposes of this paragraph and any salvageable material similarly acquired shall be sold and the proceeds from such sale returned to the special fund established by RSA 270-E:5, II(a).

(j) Dams and water rights controlling Pawtuckaway Pond and Mendum Pond in the towns of Nottingham and Barrington with approximately 700 acres of land bordering said waters in said towns.

(k) The dam, water rights, and lands used in connection with the Bunker Pond in Epping.

(l) The dam, water rights, and lands used in connection with Chandler Pond in Landaff.

(m) The dam, water rights, and land use permits used in connection with the Oliverian Dam in the United States National Forest in Benton.

(n) The dam known as Waumbek Dam and as number 161.07, in the town of Milton, water rights, land, and other connected facilities.

(o) The dam known as Rowe Dam and as number 161.11, in the town of Milton, water rights, land, and other connected facilities.

(p) The dam, water rights, and lands used in connection with Hawkins Pond in the town of Center Harbor.

[II. For the consideration of $1, unless otherwise noted, the water resources council is authorized to accept conveyance from the property owners of the following described property for the purpose of improving and controlling certain water rights for the benefit of the state. The council after acquisition shall, from time to time, make repairs and modifications to the dams so acquired or rebuild them if required to best serve the interests of the state. The properties the council is authorized to acquire for the benefit of the state shall be exempt from taxation as long as the properties are held by the state.

(a)] (q) The Buck Street dam, on the Suncook River at the junction of Glass Street and Buck Street in the towns of Pembroke and Allenstown in Merrimack county, and the water rights, land, and other connected facilities.

[(b)] (r) The dam, water rights, land, and any connected buildings at Mascoma Lake in the towns of Lebanon and Enfield.

[(c)] (s) The dam, water rights, and connected land on the Goose Pond brook in the towns of Canaan and Hanover.

[(d)] (t) The dam, water rights, and connected land on Crystal Lake Brook in the town of Enfield.

[(e)] (u) The dam, water rights, and connected land at Grafton Pond in the town of Grafton.

[(f)] (v) The Newfound Lake dam on Newfound Lake in the town of Bristol in Grafton county, and the water rights, land, and other connected facilities.

[(g)] (w) The Kelley Falls dam on the Piscataquog River in the immediate vicinity of the Nazaire Biron Bridge in the city of Manchester in Hillsborough county, and the water rights, land, and other connected facilities. The grantor shall provide a suitable public access to the site of the conveyance and to the impoundment above the dam if none exists.

[(h)] (x) For a sum of $25,000 paid to the [council] department by the Avery Dam corporation, [said council] the department is authorized to accept conveyance from the owners of the following described property for the purpose of improving and controlling certain water rights for the benefit of the state: The dam, water, easements, and connected lands known as Avery dam on the Winnipesaukee River in the city of Laconia. [Said council] The department is further authorized to enter into an agreement with the Avery Dam corporation for the use of stored water from Lake Opeechee in the city of Laconia, said agreement for a term of 10 years to guarantee the grantor the right of water usage from said lake at the now existing rate. The money received under this paragraph and any other revenue received for the same purposes shall be paid to the [council] department and held in a special fund to be used exclusively for the repair and maintenance of the Avery dam in Laconia.

[(i)] (y) The Pittsfield dam on the Suncook River in the town of Pittsfield, as a gift in the name of the state of New Hampshire from the town of Pittsfield.

[(j)] (z) Dams and water rights on and in the Suncook River extending from the town of Barnstead through Gilmanton to the town of Alton.

[(k)] (aa) Dams, water rights, and lands connected therewith at Contoocook River park dam in the city of Concord and town of Hopkinton; Suncook River dam in Barnstead; Steele Pond in Antrim; and at Winnisquam Lake in Tilton, Sanbornton, Belmont, and Laconia.

[(l)] (bb) The so-called Contoocook River park dam, water rights, land, and other connected facilities in the city of Concord.

[(m)] (cc) The so-called outlet canal dam, water rights, land, and other connected facilities in the city of Concord.

[(n)] (dd) Dam, water rights, and connected lands at Lovell Lake in the town of Wakefield.

[(o)] (ee) Dam, water rights, and connected land at Great East Pond, Horn Pond, and Union Meadows Pond in the town of Wakefield.

[(p)] (ff) Dam, water rights, and connected lands at Milton Three Ponds in the town of Milton and Kingswood Lake in the town of Brookfield and Wilsons Pond in the town of Acton, Maine.

[(q)] (gg)(1) For a sum of $10,000 paid to the [water resources council] department by the [Concord Electric Company] Unitil, the [water resources council] department is authorized to accept conveyances from the owners of the following described properties for the purpose of improving and controlling certain water rights for the benefit of the state: Dam, water rights, and connected lands known as the Sewalls Falls dam on the Merrimack river in the City of Concord.

(2) The money received under RSA [482:48, II(q)(1)] 482:48, I(gg)(1) and any other revenue received for the same purposes shall be paid to the [water resources council] department and held in a special fund to be used exclusively for the repair and maintenance of the Sewalls Falls dam in Concord. Expenditures from this fund may be made for the purposes of this paragraph by the [water resources council] department with the prior approval of the governor and council.

[(r)] (hh) The Ossipee Lake dam, land, and other rights located in Effingham, New Hampshire from the Central Maine Power Co. of Augusta, Maine provided, however, that the towns of Ossipee, Freedom, and Effingham shall enter into an agreement with the department, which agreement provides that the said towns of Ossipee, Freedom, and Effingham shall accept the responsibility for the operation and maintenance of the Ossipee Lake dam under the supervision of the department.

[III.] II.(a) Governor and council approval having been granted, legislative approval is hereby given to the land conservation investment program to accept the following dams and assign to the department of fish and game for management purposes, including but not limited to operation and minor maintenance of said structures, as follows:

(1) Little Bog Pond dam, Odell, dam #185.03.

(2) Trio Ponds dam, Odell, dam #185.02.

(b) The governor and council shall authorize the acceptance of Meadow Lake dam in Northwood, dam #183.16, by the land conservation investment program only after all repairs have been completed, and the dam is deemed satisfactory through an inspection by the department. Upon acceptance, the land conservation investment program shall assign the dam and any contiguous property to the department of resources and economic development for management purposes, including but not limited to operation and minor maintenance of said structures.

(c) The land conservation investment program shall transfer $60,000 to the dam maintenance fund under RSA 482:55 to offset future repairs for the dams listed in subparagraph (a).

(d) Any property that the state is authorized to acquire under this subdivision shall be exempt from taxation as long as the property is held by the state.

[IV.] III. Notwithstanding any of the above provisions, the New Hampshire fish and game department is authorized to accept Garland Pond dam, Ossipee dam #188.19 in its current state of disrepair, for the purpose and intent of future dam construction for wildlife management.

[V.] IV. Notwithstanding any of the above provisions, the fish and game department is authorized to accept approximately 77 acres abutting Morrill Pond and Morrill Pond dam, No. 38.21 in its current state of disrepair, for the purpose and intent of future dam construction for wildlife management.

[VI.] V. For a consideration of $1, the department of resources and economic development, division of parks and recreation, is authorized to accept the Jericho Lake dam and dike in the city of Berlin.

[VII.] VI. For a consideration of $1, the fish and game department is authorized to accept conveyance from the property owners of all water and property rights necessary to repair, maintain, and operate Big Brook Bog dam in the town of Pittsburg, known as number 194.14, for the purpose of improving and controlling the water rights for the benefit of the state. The property rights the fish and game department is authorized to acquire for the benefit of the state shall be exempt from taxation as long as the properties are held by the state. The rights to be acquired shall include the right to maintain Big Brook Bog dam in its historic configuration as it existed prior to February 1, 2003, or any other configuration beneficial to the state. The fish and game department may transfer rights in Big Brook Bog dam under RSA 482:51 to the department for purposes of repair and maintenance.

112:10 Jointly Sponsored Projects; Reference Removed. Amend RSA 482:75 to read as follows:

482:75 Jointly Sponsored Projects. In order for the state of New Hampshire to cooperate fully with federal agencies in watershed management as provided for under Public Law 566, as amended, all jointly sponsored soil conservation districts projects for watershed protection, flood prevention, and water management are declared to be projects under the provisions of this chapter except that compliance with the provisions of RSA [481:7 and] 481:8 shall not be required.

112:11 Department of Environmental Services; Transfer of Title of Dams. Title of all dams acquired by the water resources council pursuant to RSA 481:9 shall be transferred to the department of environmental services.

112:12 Department of Environmental Services; Transfer of Contractual Obligations. All contractual rights and obligations undertaken by the water resources council shall be transferred to the department of environmental services.

112:13 Repeal. The following are repealed:

I. RSA 21-O:5, relative to relative to the water resources council.

II. RSA 481:3, VII, relative to agreements with bondholders.

III. RSA 481:3, IX, relative to the commissioner of the department of environmental services’ authority to borrow money.

IV. RSA 481:4, relative to the establishment of the corporation of the water resources council.

V. RSA 481:6-a, relative to relative to the bylaws, records, and personnel of the department of environmental services.

VI. RSA 481:6-b, relative to the department of environmental services’ liability.

VII. RSA 481:7, relative to water conservation project reports, hearing, and order.

VIII. RSA 481:15, relative to bonds authorized.

IX. RSA 481:16, relative to interim receipts.

X. RSA 481:17, relative to the remedies of bondholders.

XI. RSA 481:19, relative to bonds guaranteed by the governor and council.

112:14 Effective Date. This act shall take effect 60 days after its passage.

Approved: June 15, 2009

Effective Date: August 14, 2009