File No. 455

Senate, April 17, 2003

The Committee on Environment reported through SEN. WILLIAMS of the 29th Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.

AN ACT CONCERNING WATER QUALITY AND THE UNIVERSITY OF CONNECTICUT.
Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 25-32a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2003) :
As used in this section, sections 25-32, 25-32b to 25-32m, inclusive, as amended by this act, 25-33 and 25-34, "consumer" means any private dwelling, hotel, motel, boardinghouse, apartment, store, office building, institution, mechanical or manufacturing establishment or other place of business or industry to which water is supplied by a water company; "water company" means any individual, partnership, association, corporation, municipality, The University of Connecticut at Storrs, or other entity, or the lessee thereof, who or which owns, maintains, operates, manages, controls or employs any pond, lake, reservoir, well, stream or distributing plant or system that supplies water to two or more consumers or to twenty-five or more persons on a regular basis provided if any individual, partnership, association, corporation, municipality or other entity or lessee owns or controls eighty per cent of the equity value of more than one such system or company, the number of consumers or persons supplied by all such systems so controlled shall be considered as owned by one company for the purposes of this definition.
Sec. 2. Subsection (a) of section 25-32d of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2003) :
(a) Each water company [, as defined in section 25-32a, and] supplying water to one thousand or more persons or two hundred fifty or more consumers and any other water company [as defined in said section] requested by the Commissioner of Public Health shall submit a water supply plan to the Commissioner of Public Health for approval with the concurrence of the Commissioner of Environmental Protection. The concurrence of the Public Utilities Control Authority shall be required for approval of a plan submitted by a water company regulated by the authority. The Commissioner of Public Health shall consider the comments of the Public Utilities Control Authority on any plan which may impact any water company regulated by the authority. The Commissioner of Public Health shall distribute a copy of the plan to the Commissioner of Environmental Protection and the Public Utilities Control Authority. A copy of the plan shall be sent to the Secretary of the Office of Policy and Management for information and comment. A plan shall be revised at such time as the water company filing the plan or the Commissioner of Public Health determines or at intervals of not less than three years nor more than five years after the date of initial approval.
Sec. 3. Subsection (a) of section 25-32k of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2003) :
(a) Each water company [, as defined in section 25-32a, ] serving one thousand or more persons or two hundred fifty or more consumers [, as defined in section 25-32a, ] shall, annually, provide to residential customers, without charge, educational materials or information on (1) water conservation, (2) water supply source protection methods, including methods to reduce contamination, and (3) on or before July 1, 2002, and annually thereafter, information developed by the Commissioner of Public Health, pursuant to subsection (b) of this section, on the health effects and sources of lead and copper. Every year each public water company shall provide a copy of these educational materials to the Commissioner of Public Health.
Sec. 4. Subsection (a) of section 25-32m of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2003) :
(a) Any water company [, as defined in section 25-32a, ] may engage in the sale of bottled water or establish an entity under chapter 601 for the purpose of engaging in the sale of bottled water within or outside of its franchise area. The costs and expenses of a water company associated with the sale of bottled water shall be exclusive of the costs and expenses associated with the establishment of rates and charges for the use of the waterworks system pursuant to section 7-239.
Sec. 5. Section 22a-354c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2003) :
(a) On or before July 1, 1990, each public or private water company serving one thousand or more persons, and The University of Connecticut at Storrs, shall map at level B all areas of contribution and recharge areas for its existing wells located in stratified drift aquifers. Not later than three years after the adoption by the Commissioner of Environmental Protection of a model municipal aquifer protection ordinance under section 22a-354l, each public and private water company serving ten thousand or more persons shall map at level A all areas of contribution and recharge areas for its existing wells located in stratified drift aquifers. The Commissioner of Environmental Protection may map at level A and at level B all areas of contribution and recharge areas for existing wells located in stratified drift aquifers that are used by any public or private water company serving less than one thousand persons.
(b) Each public or private water company serving ten thousand or more persons, and The University of Connecticut at Storrs, shall map all areas of contribution and recharge areas for potential wells that are located within stratified drift aquifers identified as future sources of water supply to meet their needs in accordance with the plan submitted pursuant to section 25-33h, (1) at level B two years after approval of such plan, and (2) at level A four years after approval of such plan. The Commissioner of Environmental Protection shall identify and make recommendations for mapping, or shall map, all remaining significant areas of contribution and recharge areas for potential wells located in stratified drift aquifers not identified by a public or private water company as a potential source of water supply within the region of an approved plan. Mapping of any other area of contribution and recharge areas for potential wells located in stratified drift aquifers by the commissioner shall be completed at a time determined by the commissioner.
Sec. 6. Section 25-37c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2003) :
The Department of Public Health shall adopt, in accordance with chapter 54, regulations establishing criteria and performance standards for the three following classes of water-company-owned land: [.]
[(a) ] (1) Class I land includes all land owned by a water company or acquired from a water company through foreclosure or other involuntary transfer of ownership or control which is either: [(1) ] (A) Within two hundred and fifty feet of high water of a reservoir or one hundred feet of all watercourses as defined in agency regulations adopted pursuant to this section; [(2) ] (B) within the areas along watercourses which are covered by any of the critical components of a stream belt; [(3) ] (C) land with slopes fifteen per cent or greater without significant interception by wetlands, swales and natural depressions between the slopes and the watercourses; [(4) ] (D) within two hundred feet of groundwater wells; [(5) ] (E) an identified direct recharge area or outcrop of aquifer now in use or available for future use, or [(6) ] (F) an area with shallow depth to bedrock, twenty inches or less, or poorly drained or very poorly drained soils as defined by the United States Soil Conservation Service that are contiguous to land described in [subdivision (3) or (4) of this subsection] subparagraph (C) or (D) of this subdivision and that extend to the top of the slope above the receiving watercourse.
[(b) ] (2) Class II land includes (A) all land owned by a water company or acquired from a water company through foreclosure or other involuntary transfer of ownership or control which is either [(1) ] (i) on a public drinking supply watershed which is not included in class I, or [(2) ] (ii) completely off a public drinking supply watershed and which is within one hundred and fifty feet of a distribution reservoir or a first-order stream tributary to a distribution reservoir, and (B) notwithstanding any provisions of the general statutes, for lands owned by The University of Connecticut, (i) all level A aquifer protection lands that are mapped, approved and regulated pursuant to chapter 446i that are within a public drinking supply watershed that is not a class I land, or (ii) all land that is completely outside public drinking supply watersheds and that is within one hundred fifty feet from a distribution reservoir or first-order stream tributary to a distribution reservoir.
[(c) ] (3) Class III land includes (A) all land owned by a water company or acquired from a water company through foreclosure or other involuntary transfer of ownership or control which is unimproved land off public drinking supply watersheds and beyond one hundred and fifty feet from a distribution reservoir or first-order stream tributary to a distribution reservoir, and (B) notwithstanding any provision of the general statutes, for lands owned by The University of Connecticut, (i) unimproved land outside public drinking water supply watersheds and beyond one hundred and fifty feet from a distribution reservoir or first-order stream tributary to a distribution reservoir, and (ii) any land that is neither class I nor class II land.
Sec. 7. Subsection (b) of section 25-32 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2003) :
(b) No water company shall sell, lease, assign or otherwise dispose of or change the use of any watershed lands, except as provided in section 25-43c, without a written permit from the Commissioner of Public Health. The commissioner shall not grant a permit for the sale, lease or assignment of class I land, except as provided in subsection (d) of this section, and shall not grant a permit for a change in use of class I land unless the applicant demonstrates that such change will not have a significant adverse impact upon the present and future purity and adequacy of the public drinking water supply and is consistent with any water supply plan filed and approved pursuant to section 25-32d. The commissioner may reclassify class I land only upon determination that such land no longer meets the criteria established by [subsection (a) ] subdivision (1) of section 25-37c, as amended by this act, because of abandonment of a water supply source or a physical change in the watershed boundary. Not more than fifteen days before filing an application for a permit under this section, the applicant shall provide notice of such intent, by certified mail, return receipt requested, to the chief executive officer and the chief elected official of each municipality in which the land is situated.

The following fiscal impact statement and bill analysis are prepared for the benefit of members of the General Assembly, solely for the purpose of information, summarization, and explanation, and do not represent the intent of the General Assembly or either House thereof for any purpose:
OFA Fiscal Note

State Impact:

Note: GF=General Fund
Municipal Impact: None
Explanation
This bill results in a cost of approximately $20, 000 to the University of Connecticut (UConn) as it requires them to perform duties above and beyond those currently required of them in the administration of the water supply located at the UConn. These costs involve the creation, printing, and dissemination of free educational materials regarding water conservation, water source protection methods and other water supply related information to its customers, which includes all 23, 000 resident students of the university. The funding for this cost is not included in the FY 04 or FY 05 budgets as recommended by the governor.
There is no anticipated fiscal impact upon the Department of Public Health or the Department of Environmental Protection due to this bill as they already have staff in place that administer the provisions contained within the bill.


OLR Bill Analysis
SB 1094

AN ACT CONCERNING WATER QUALITY AND THE UNIVERSITY OF CONNECTICUT

SUMMARY:
This bill makes the University of Connecticut (UConn) at Storrs a water company, restricting its ability to develop watershed land and making it subject to other laws affecting water companies.

Among other things, UConn must map its well fields by July 1, 1990 - a deadline that has already passed.

EFFECTIVE DATE: October 1, 2003

WATER COMPANY LAND

By law a water company is an individual, partnership, association, corporation, municipality or other entity, aside from state agencies, that supplies water from a water supply it owns, controls, or manages, to two or more premises or more than 25 individuals. Water company lands falls into three classes, and are subject to Department of Public Health (DPH) regulation. The bill makes UConn a water company and subjects its lands to those restrictions.

Class I land, within 250 feet of a reservoir, is the most highly protected land and is subject to the most regulation. Class II and class III land is less restricted. A DPH permit is needed to sell, lease or otherwise dispose of, or change the use of, class I or class II land. A permit is also required, with minor exceptions, to change the use of such land. A water company does not need a permit to sell or transfer class III land (off watershed) .

The bill makes UConn land class II and class III land, but does not appear to classify any UConn land as class I land. By law, class II land is land that is either on a public drinking supply watershed that is not included in class I, or completely off a watershed but within 150 feet of a reservoir. The bill specifically includes as UConn's class II land property the university owns, including (1) all level A aquifer protection land that is mapped, approved and regulated according to law and is within a public drinking water supply that is not a class I land; and (2) land completely outside public drinking supply watersheds that is within 150 feet of a reservoir or first-order stream tributary.

By law, class III land includes all unimproved land off watersheds and more than 150 feet from a reservoir or a stream that feeds it. The bill specifically includes as UConn's class III land all land the university owns that is (1) unimproved land outside public drinking water supply watersheds and more than 150 feet from a reservoir or first-order stream tributary and (2) neither class I nor class II land.

OTHER APPLICABLE WATER UTILITY LAWS

By law, utilities that serve 1, 000 or more people must map the areas that contribute to and recharge wells in stratified drift aquifers. Additional requirements apply to utilities serving more than 10, 000 people.

The bill requires UConn to map its well fields. By July 1, 1990, it must map all areas that contribute to and recharge wells in stratified drift aquifers. It requires UConn to map for potential wells it identifies as future water sources according to the coordinated water system plan prepared for its public water supply management area.

The bill requires UConn to submit a water supply plan to DEP for its approval with DEP's concurrence. The plan must evaluate the water supply needs in the area UConn serves and is subject to DPH regulations. If a utility (including UConn under the bill) submits a plan that involves the forecast of or actual land sales, abandonment or a supply source, or reclassification of its land, it must the notify the local municipality and various land conservation organizations. The plan must be revised when the university or the health commissioner determines, or every three to five years.

The bill requires the university annually to provide residential customers free educational material on (1) water conservation, (2) water supply source protection methods, including ways to reduce contamination, and (3) information developed by DPH on the health effects and sources of lead and copper. It must annually provide the health commissioner with copies of these materials.

It permits the university to sell bottled water, the costs and expenses for which must be kept separate from the water rates charged customers.

The bill subjects UConn to the law governing water supply emergencies. By law, the DPH commissioner, in consultation with the environmental protection commissioner and the department of public utility commissioners, can declare such an emergency. The DPH commissioner can order water companies, including UConn under the bill, to connect their water mains temporarily to permit the sale or transfer of water. By law, a violation of these orders is subject to a civil fine of up to $5, 000 a day, with each day considered a separate violation.

It also subjects the university to civil penalties for violating certain drinking laws and regulations and DPH orders to discontinue or correct immediate threats to the public water supply.

BACKGROUND

Attorney General's Opinion on DPH Regulation of UConn lands

In response to a UConn request, the attorney general held on November 29, 2000, that statutes including those governing water companies, do not apply to state agencies unless they are specifically included in them. He held that while some statutes, notably those regulating drinking water quality, refer and apply to state agencies, UConn and other agencies are not subject to the laws restricting land transactions.

UConn's Water Supply

According to the university, its water supply system serves 23, 000 users, about 90% of whom are from the university. It also serves the Mansfield Town Hall, E.O. Smith High School, a state prison, and about 15 commercial and more than 100 residential users.

Restrictions on Class I and Class II Land

A water company cannot assign or lease class I land, and can only sell it to the state, a municipality, or another water company. The buyer must agree to maintain the land subject to the restrictions in the law and those imposed by the DPH permit. The buyer cannot sell, lease, assign, or change the use of the land without a permit.

In addition, the utility can only change the land's use if it demonstrates that the change (1) will not harm the purity and adequacy of water supply, now or in the future, and (2) is consistent with a DPH- approved water supply plan filed by the utility. If DPH believes the proposal may significantly harm water supply, it may refer the application to an outside consultant for a detailed review, at the utility's expenses.

Somewhat less restrictive provisions apply to class II land. DPH cannot grant a permit for a transaction involving class II land or a change of its use unless the utility demonstrates that its proposal will not significantly harm the purity and adequacy of water supply and that any use restriction DPH imposes can be enforced against subsequent owners, lessees, and assignees. In considering the impact on water supply, DPH is not bound by its precedent.

In the case of the sale, lease, or transfer of land, DPH can only grant a permit if (1) the class II land is part of a larger parcel that includes class III land and (2) there are use restrictions that will prevent the class II land from being developed. In cases involving transactions with another water utility, municipality, or a land conservation organization, DPH can only grant a permit if there is a permanent conservation easement on the land. The easement must preserve the land in perpetuity, with most of it remaining in its natural condition. The easement must protect natural resources and water supply, while allowing for appropriate recreational uses and the development of improvements needed to provide for or protect water supply. The land cannot be developed for residential, commercial, or industrial purposes, or for specified recreational purposes such as golf courses. This last condition does not apply to class II land needed to provide access to class III land that is part of a sale. It appears that this exception applies only if the land is sold to an entity other than a water utility, municipality, or a land conservation organization.

In approving class II land transactions, DPH can subject the permit to conditions or restrictions it considers necessary to safeguard water supply. In doing so, DPH must consider the potential the proposal has for contaminating the water supply, the disturbance of vegetation, the utility's future ability to control the land through devices such as easements or use restrictions, and several other factors

DPH also can reclassify Class I or II land if it determines that the land no longer meets the statutory criteria because of the abandonment of a water supply source or a physical change in the watershed boundary.

COMMITTEE ACTION

Environment Committee

Joint Favorable Report