An Act concerning water supplies, amending and supplementing P.L.1981, c.262, and amending R.S.48:2-23.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) As used in this act:

"Drought" means a condition of dryness due to lower than normal precipitation, resulting in reduced stream flows, reduced soil moisture or a lowering of the potentiometric surface in wells.

"Drought warning condition" means a declaration by the commissioner under the department's non-emergency powers prior to a state of water emergency declared by the Governor pursuant to section 4 of P.L.1981, c.262 (C.58:1A-4) calling for action to be taken to reduce the likelihood or impact of any impending drought emergency. Whenever such situations involve a relative lack of precipitation or a lower than normal storage of water supplies, the department may identify the affected region or the State as a whole as being in a "drought warning condition."

"Public water system" means a system for the provision to the public of water for human consumption through pipes or other constructed conveyances, if such system has at least 15 service connections or regularly serves an average of at least 25 individuals daily at least 60 days out of the year. "Public water system" shall include: (1) any collection, treatment, storage and distribution facilities under control of the operator of such system and used primarily in connection with such system; and (2) any collection or pre‑treatment storage facilities not under such control which are used primarily in connection with such system.

"Public water utility" means any investor-owned water company or small water company.

"Region" means any of the drought regions as previously defined by the department to include Central, Coastal North, Coastal South, Northeast, Northwest and Southwest.

"Small water company" means any company, purveyor or entity, other than a governmental agency, that provides water for human consumption and which regularly serves less than 1,000 customer connections, including nonprofit, noncommunity water systems.

"Water purveyor" means any public water utility that owns or operates a public water system.

2. (New section) a. Every water purveyor shall develop and implement a drought interconnection system.

b. Within 12 months of the effective date of this act, every

water purveyor shall prepare a plan, in conjunction with every proximate public water utility within the region wherein the water purveyor provides service, for the interconnection of their respective public water systems to facilitate the furnishing of water between systems and regions during a drought warning condition or state of water emergency as declared by the Governor within specific areas of the State pursuant to section 4 of P.L.1981, c.262 (C.58:1A-4), to balance demand with available water supplies and to assure that sufficient water is available throughout the State during such conditions.

c. Each drought interconnection plan developed by a water purveyor shall be subject to review and approval by the department.

d. Each water purveyor shall implement the drought interconnection system approved by the department within five years of the effective date of this act.

3. (New section) The commissioner shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as are necessary to effectuate the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

4. Section 9 of P.L.1981, c.262 (C.58:1A-9) is amended to read as follows:

9. The Board of [Regulatory Commissioners] Public Utilities shall fix just and reasonable rates for any public water [supply] system subject to its jurisdiction, as may be necessary for that system to comply with an order issued by the department or the terms and conditions of a permit issued pursuant to P.L.1981, c.262 (C.58:1A-1 et al.) or P.L.1993, c.202 (C.58:1A-7.3 et al.).

(cf: P.L.1993, c.202, s.8)

5. Section 15 of P.L.1981, c.262 (C.58:1A-15) is amended to read as follows:

15. The department may:

a. Perform any and all acts and issue such orders as are necessary to carry out the purposes and requirements of P.L.1981, c.262 (C.58:1A-1 et al.) or P.L.1993, c.202 (C.58:1A-7.3 et al.);

b. Administer and enforce the provisions of P.L.1981, c.262 (C.58:1A-1 et al.) or P.L.1993, c.202 (C.58:1A-7.3 et al.) and rules, regulations and orders adopted, issued or effective thereunder;

c. Present proper identification and then enter upon any land or water for the purpose of making any investigation, examination or survey contemplated by P.L.1981, c.262 (C.58:1A-1 et al.) or P.L.1993, c.202 (C.58:1A-7.3 et al.);

d. [Subpena] Subpoena and require the attendance of witnesses and the production by them of books and papers pertinent to the investigations and inquiries the department is authorized to make under P.L.1981, c.262 (C.58:1A-1 et al.) or P.L.1993, c.202 (C.58:1A-7.3 et al.), and examine them and those public records as shall be required in relation thereto;

e. Order the interconnection of public water [supply] systems, whether in public or private ownership, whenever the department determines that the public interest requires that this interconnection be made, and require the furnishing of water by means of that system to another system, but no order shall be issued before comments have been solicited at a public hearing, notice of which has been published at least 30 days before the hearing, in one newspaper circulating generally in the area served by each involved public water [supply] system, called for the purpose of soliciting comments on the proposed action. Nothing in this subsection shall be construed to alter or restrict the authority of the commissioner to order any person to make emergency interconnections between systems during a state of water emergency as provided in section 4 of P.L.1981, c.262 (C.58:1A-4).

f. Order any person diverting water to improve or repair its water supply facilities so that water loss is eliminated so far as practicable, safe yield is maintained, and the drinking water quality standards adopted pursuant to the "Safe Drinking Water Act," P.L.1977, c.224 (C.58:12A-1 et al.) are met;

g. Enter into agreements, contracts, or cooperative arrangements under such terms and conditions as the department deems appropriate with other states, other State agencies, federal agencies, municipalities, counties, educational institutions, investor-owned water companies, municipal utilities authorities, or other organizations or persons;

h. Receive financial and technical assistance from the federal government and other public or private agencies;

i. Participate in related programs of the federal government, other states, interstate agencies, or other public or private agencies or organizations;

j. Establish adequate fiscal controls and accounting procedures to assure proper disbursement of and accounting for funds appropriated or otherwise provided for the purpose of carrying out the provisions of P.L.1981, c.262 (C.58:1A-1 et al.) or P.L.1993, c.202 (C.58:1A-7.3 et al.);

k. Delegate those responsibilities and duties to personnel of the department as deemed appropriate for the purpose of administering the requirements of P.L.1981, c.262 (C.58:1A-1 et al.) or P.L.1993, c.202 (C.58:1A-7.3 et al.);

l. Combine permits issued pursuant to P.L.1981, c.262 (C.58:1A-1 et al.) or P.L.1993, c.202 (C.58:1A-7.3 et al.) with permits issued pursuant to any other act whatsoever whenever that action would improve the administration of those acts;

m. Evaluate and determine the adequacy of ground and surface

water supplies and develop methods to protect aquifer recharge areas.

(cf: P.L.1993, c.202, s.9)

6. R.S.48:2-23 is amended to read as follows:

48:2-23. a. The board may, after public hearing, upon notice, by order in writing, require any public utility to furnish safe, adequate and proper service, including furnishing and performance of service in a manner that tends to conserve and preserve the quality of the environment and prevent the pollution of the waters, land and air of this State, and including furnishing and performance of service in a manner which preserves and protects the water quality of a public water [supply] system, and to maintain its property and equipment in such condition as to enable it to do so.

The board may, pending any such proceeding, require any public utility to continue to furnish service and to maintain its property and equipment in such condition as to enable it to do so.

The board, in requiring any public water utility to furnish safe, adequate and proper service, may require the public water utility to retain in its rate base any property which the board determines is necessary to protect the water quality of a public water [supply] system.

b. Every public water utility shall provide the board with a copy of the drought interconnection plan submitted to and approved by the Department of Environmental Protection pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) for every area wherein the public water utility provides service.

(cf: P.L.1988, c.163, s.5)

7. This act shall take effect immediately.

STATEMENT

This bill would require the State's large water purveyors to develop and implement drought interconnection plans and systems.

Within 12 months of the bill's effective date, every water purveyor must prepare a plan, in conjunction with every proximate public water utility within the region wherein the water purveyor provides service, for the interconnection of their respective public water systems to facilitate the furnishing of water between systems and regions during a drought warning condition or state of water emergency as declared by the Governor within specific areas of the State pursuant to law, to balance demand with available water supplies and to assure that sufficient water is available throughout the State during such conditions.

Each drought interconnection plan developed by a water purveyor would be subject to review and approval by the Department of Environmental Protection.

Every water purveyor must implement the drought interconnection system approved by the department within five years of the bill's effective date.