Revision: May 10, 2024, 2:20 p.m.
SB 539-FN-A-LOCAL - AS AMENDED BY THE HOUSE
04/11/2024 1462s
2May2024... 1638h
2024 SESSION
24-2854
10/05
SENATE BILL 539-FN-A-LOCAL
SPONSORS: Sen. Murphy, Dist 16; Sen. Bradley, Dist 3; Sen. Birdsell, Dist 19; Sen. D'Allesandro, Dist 20; Sen. Carson, Dist 14; Sen. Innis, Dist 7; Sen. Watters, Dist 4; Sen. Pearl, Dist 17; Rep. Osborne, Rock. 2; Rep. Alexander Jr., Hills. 29; Rep. Mazur, Hills. 44; Rep. C. McGuire, Merr. 27
COMMITTEE: Energy and Natural Resources
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AMENDED ANALYSIS
This bill establishes a procedure for the department of environmental services to transfer ownership of a dam and associated property, easements, and water rights to the town or towns in which the dam is located, or to other associations or parties.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
04/11/2024 1462s
2May2024... 1638h 24-2854
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Department of Environmental Services; Dams; Transfer Procedures. Amend RSA 482 by inserting after section 51 the following new section:
482:51-a Dams; Transfer to Municipality or Association.
I. In this section "state-owned dam" means any dam owned exclusively by the department.
II. At least one year prior to removing any state-owned dam, the department shall offer to transfer ownership of the dam and associated property, including associated easements and water rights, to the municipality in which the dam and impoundment created by it are located. Upon notice by the department, the governing body shall cause the legislative body to answer the question of whether the legislative body wants to accept the transfer of ownership of the dam. At the same meeting, the legislative body shall consider the issuance of any long-term debt necessary to effectuate the transfer and address any deficiencies. If the legislative body votes to accept the transfer, but denies issuance of the debt, the department shall consider that to be a rejection of the offer. Upon rejection of the offer by the municipality, the department shall offer to transfer ownership of the dam and impoundment created by it to any association of landowners or any interested parties, registered as a public entity in good standing and capable of assessing local property taxes or issuing debt which have an interest in perpetuating the dam and its impoundment. Those interested parties shall have 90 days to consider whether to accept the transfer of ownership. After those 90 days have elapsed with no accepted offers for a transfer of ownership, the department may proceed with removal of the dam.
III. The procedure in paragraph II shall not apply if, upon receipt of information reasonably believed to be valid, the commissioner of environmental services believes the dam to be in imminent danger of failure and a threat to the lives and property downstream, or unless there is a compelling environmental interest in removal.
IV. When offering a transfer of a dam under paragraph II, the department shall provide to the offerees any existing documentation regarding the dam's condition, a good faith estimate of costs of necessary repairs, a list of ongoing maintenance, inspection, or licensing needed, and all other relevant information regarding the costs of taking ownership of the dam with associated property, easements, and water rights.
2 Effective Date. This act shall take effect July 1, 2024.
24-2854
Amended 5/10/24
SB 539-FN-A-LOCAL- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2024-1638h)
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) |
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Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable | ||
Funding Source(s) | General Fund
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Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A • Does this bill authorize new positions to implement this bill? [X] No | ||||||
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Estimated Political Subdivision Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Local Revenue | $0 | $0 | $0 | $0 | ||
Local Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable | ||
METHODOLOGY:
This bill establishes a procedure for the Department of Environmental Services to transfer ownership of a dam and associated property, easements, and water rights to the town or towns in which the dam is located, or to other associations or parties.
The Department of Environmental Services owns 111 dams located throughout the State. This bill would require the Department to offer ownership of a dam owned by the Department along with associated easements and water rights, to a town in which the dam and impoundment are located at least one year prior to removing the dam. If the legislative body of the town decides not to take ownership, the Department shall offer ownership of the dam to any qualified interested association of landowners or parties. If after 90 days those parties decide not to take over ownership, the Department may proceed with removal of the dam. The Department states these requirements and time lines would be part of the decision making process prior to removing a dam, unless there is a condition requiring immediate removal due to an imminent failure of the dam or if there is compelling environmental interest in the removal of the dam.
When offering to transfer ownership of the dam, the Department shall provide any documentation relating to the dam and a cost estimate for repairing and maintaining the dam. The Department indicates there may be costs to the Department to assess the condition of the dam, gather the required documentation and allocate staff time to facilitate the transfer. To properly determine the costs of needed repairs and maintenance, it would likely be necessary to engage an engineering consultant to determine those costs based on current pricing in the construction industry. The costs of contracting with a consultant are unknown and would depend on the repair needs at the dam, the type of dam, age, condition assessment and hazard classification of the dam. Consulting contract costs would also depend on the number of dams offered for transfer, therefore, those costs cannot be determined in advance.
The Department indicates the impact on local expenditures and revenues cannot be determined. Should a municipality decide to take over ownership of a dam it would become responsible for the repair and maintenance of the dam. The Department has found the costs of repairing and maintaining dams to meet current regulatory standards can range from tens of thousands of dollars to millions of dollars, therefore, the costs for a municipality to take over ownership of a dam are unknown.
The New Hampshire Municipal Association states this bill creates a local option and enables a municipality to take ownership of a state-owned dam and have it transferred to their jurisdiction. The Association indicates, because this is a local option, the bill would have no fiscal impact
AGENCIES CONTACTED:
Department of Environmental Services and New Hampshire Municipal Association