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1992 New Hampshire Attorney General Reports and Opinions 1 (1992)

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February 18, 1992
Robert W. Varney, Commissioner
Department of Environmental Services
6 Hazen Drive, P.O. Box 95
Concord, New Hampshire 03302
Re: Eligibility For State Aid Funding Under RSA 486:1 and
RSA 486:14
Dear Comi...ssioner Varney:
The Department of Environmental Services has sought advice
from this office with respect to two questions arising under RSA
Chapter 486, Aid to Municipalities for Water Pollution Control.
The first is whether a municipality is eligible for state aid
funding under RSA 486:1,1, for a waste water treatment project,
where no federal grant monies are available and in the absence
of an administrative order from the Water Supply and Pollution
Control Division. The second is whether the State is obligated
under RSA 486:1,1 to pay 20% of the principal and interest of
the original cost of the construction of such facility when its
funding is provided through a state loan under the revolving
loan program established by RSA 486:14. As explained fully
below, it is our view that the Department's current practice of
limiting the State's 20% share under RSA 486:1,1 only to those
projects funded by federal grant monies is a reasonable
interpretation of, and supportable by, RSA Chapter 486.
As your questions revolve around a particular statute which
has been amended several times over the last decade or more, a
brief review of the current status of the statute and its
history is necessary. RSA 486:1,1, which was codified as RSA
149-B:l prior to the recodification of the State's water laws in
1989, provides in pertinent part as follows:
The State of New Hampshire shall, in
addition to any federal grant made
available under the provisions of the Clean
Water Act of 1977 (or subsequent amendments
thereof), pay annually 20% of the annual
amortization charges, meaning principal and
interest, on the original costs resulting

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