United States EPA 816-R-01-018
Environmental Protection July 2001
Agency
Office of Water(4606)
State Programs to Ensure
Demonstration of
Technical, Managerial,
and Financial Capacity of
New Water Systems
A Comprehensive Summary of State
Responses to Section 1420(a) of the Safe
Drinking Water Act
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Contents
Executive Summary iii
Alabama 1
Alaska 3
Arizona 6
Arkansas 8
California 10
Colorado 13
Connecticut 16
Delaware 19
Florida 21
Georgia 23
Hawaii 25
Idaho 28
Illinois 31
Indiana 33
Iowa 36
Kansas 38
Kentucky 40
Louisiana 43
Maine 45
Maryland 47
Massachusetts 49
Michigan 51
Minnesota 54
Mississippi 57
Missouri 59
Montana 62
Nebraska 65
Nevada 67
New Hampshire 69
New Jersey 71
New Mexico 73
New York 75
North Carolina 78
North Dakota 80
Ohio 82
Oklahoma 85
Oregon 88
Pennsylvania 90
Puerto Rico 93
Rhode Island 95
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South Carolina 97
South Dakota 99
Tennessee 101
Texas 103
Utah 106
Vermont 108
Virginia 110
Washington 112
West Virginia 115
Wisconsin 117
Wyoming 119
Appendix A 121
Table 1. Summary of Control Points and Factors Used to Assess Technical, Managerial, and
Financial Capacity 122
Table 2. Technical, Managerial, and Financial Capacity Assessment Comparison 129
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Executive Summary
By October 1, 1999, EPA Headquarters and the EPA Regions had approved programs for
ensuring technical, managerial, and financial (IMF) capacity in new community water systems
(CWSs) and new nontransient, noncommunity water systems (NTNCWSs) for the 50 States and
Puerto Rico. The States, and Puerto Rico, developed these programs in response to Section
1420(a) of the 1996 Amendments to the Safe Drinking Water Act (SDWA) which requires the
EPA Administrator to withhold a portion of a State's Drinking Water State Revolving Fund
(DWSRF) monies if that State does not have,
"the legal authority or other means to ensure that all new CWSs and new NTNCWSs
commencing operation after October 1, 1999, demonstrate TMF capacity with respect to
each national primary drinking water regulation in effect, or likely to be in effect, on the
date of commencement of operation."
This document summarizes each State's response to this provision of the SDWA. It is a
reference tool for making comparisons among State programs for ensuring capacity in new
systems, and includes:
The statutory and regulatory authorities used to ensure that all new CWSs and NTNCWSs
demonstrate adequate TMF capacity,
The identification of the State agency primarily responsible for developing and
administering the program,
A description of the State's control points,
A list of the documentation required to demonstrate adequate TMF capacity, and
A description of how the State plans to implement and measure the success of the
program.
The tables that appear in Appendix A at the end of this document serve as a quick reference, and
allow for easy comparison among the programs.
Table 1 provides a summary of each State's control points and the documentation used to assess
TMF capacity.1 For example: in Arkansas, during the permit to construct approval process, the
State will assess the technical capacity of a system by reviewing preliminary plans, source water
and infrastructure information, a facilities inspection report, and plans and specifications.
Special note: In some cases a State may require the submission of managerial and financial information as part of
another document such as an Engineering Report. Because the specific items required for these documents are not listed in the
table it may appear that some States do not require the submission of detailed managerial and financial information. Please
reference the individual state summary for a complete list of the documentation required for a demonstration of capacity.
in
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Table 2 cites the statutory and regulatory authority for each State and shows when a new CWS or
new NTNCWS is required to demonstrate IMF capacity. For example, a new CWS in Alabama
is required to submit TMF documentation both prior to being granted approval to construct and
prior to being granted approval to operate. In contrast, Idaho only requires a new system to
submit TMF documentation prior to receiving an approval to construct.
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Alabama
I. Basis of Authority
A) Statutory Authority
The Code of Alabama Act 1977, No. 805, p. 1389, §17, requires all persons to obtain a permit
before constructing facilities for new public water system (PWS):
"No person shall construct or make major modification of any public water system, or portion
thereof, without having first obtained a permit from the board2 as provided in this article."
http://www.legislature.state.al.us/codeofalabama/1975/coatoc.htm
B) Implementing Authority
The Alabama Administrative Code §335-7-4-.06 requires proposed systems to demonstrate TMF
capabilities before receiving a permit:
"Existing and proposed systems must demonstrate financial, managerial, and technical
capabilities to reliably meet performance requirements on a long term basis and be self
sustaining."
http://www.adem.state.al.us/rdiv7c4.doc
C) Responsible Agencies
Alabama Department of Environmental Management (ADEM), Water Supply Branch.
II. Control Points
A) Water Supply Permit
All PWSs must secure a current Water Supply Permit authorizing the furnishing of water for
potable use prior to beginning operation. Applicants for a permit must demonstrate a need
(problem or shortage) for the construction of a new system or an addition to an existing system.
The permit application materials must include an explanation of the need, a description of all the
available options to meet the need, and the reasoning behind the option that was selected. The
reasoning must address the financial and managerial aspects of the proposed solution.
ADEM evaluates the TMF capacity of a proposed system through the submission of:
A completed application signed by the responsible party or owner
A preliminary engineering report, including:
2The Board of Health was delegated the authority to regulate water systems. In 1982, the authority was
transferred to the newly created Alabama Department of Environmental Management.
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Estimated costs of construction, estimated annual costs of O & M, a
demonstration that water rates and connection fees will be adequate to cover all O
& M costs and mortgage payments, and proposed methods of financing
A description of the proposed service area, proposed sources of water, and a
description of the treatment processes to be employed
Plans and specifications
B) Completed Project Approval
Each applicant must also submit a written request for a final inspection prior to placing the
system into operation. ADEM can deny a permit application for water quality deficiencies,
design problems, or operational inadequacies.
III. Program Evaluation
ADEM has set up a separate tracking system for those water systems permitted after January
1999, to be able to compare their compliance rates to the compliance rates for those systems
permitted before January 1999.
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Alaska
I. Basis of Authority
A) Statutory Authority
1) Alaska Statutes §46.03.020(10)(C) gives the Alaska Department of Environmental
Conservation (ADEC) broad authority over the safety of public water supplies:
"The department may...(10) adopt...regulations providing for...(C) protection of public water
supplies by establishing minimum drinking water standards, and standards for the construction,
improvement, and maintenance of public water supply systems."
http://www.legis. state.ak.us/cgi-bin/folioisa.dll/stattx99/query=*/doc/ltl 73 871?
2) Alaska Statutes §46.03.720(b) prohibits the construction or operation of a PWS without
ADEC approval:
"A person may not construct, extend, install, or operate a public water supply system, or any part
of a public water supply system, until plans for it are submitted to the department for review and
the department approves them in writing."
http://www.legis. state.ak.us/cgi-bin/folioisa.dll/stattx99/query=*/doc/ltl 73 871?
B) Implementing Authority
The Alaska Administrative Code §18 AAC 80.207(a) lays out the capacity requirements for new
CWSs and NTNCWSs applying for construction approval:
"The department will not issue an approval to construct a new Class A3 public water system
under 18 AAC 80.210 unless the department determines, based on the information provided
under (b)-(d) of this section, that the Class A public water system has the managerial, financial,
and technical capacity to operate in compliance with 40 C.F.R. 141 and this chapter."
http://www.state.ak.us/dec/titlel8/aac80ndx.htm
C) Responsible Agencies
ADEC is authorized to implement the capacity development program for new systems. ADEC
and the Regulatory Commission of Alaska (RCA) have developed a Memorandum of
Understanding (MOU) that has reduced the overlap of responsibilities between the two State
agencies. If the proposed system is either exempt from the RCA statutes or is not a public utility
due to size or ownership, ADEC reviews all three components. Although the MOU is finalized,
3As defined in 18 AAC 80.1990 (12), a Class A water system is a system that serves at least 25 individuals
or 15 service connections year-round, or regularly serves the same 25 or more individuals for at least six months of
the year (CWSs and NTNCWSs).
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ADEC and RCA are continuing to communicate informally on ways reduce the overlap of
responsibilities between the two State agencies.
II. Control Points
A) Construction Approval
New CWSs and NTNCWSs may not begin to construct until they have demonstrated IMF
capacity and ADEC has issued an approval to construct. As described in §18 AAC 80.207,
determinations of capacity proceed as follows:
Technical Capacity
Source quality adequacy, including source water protection
Physical infrastructure of the system
Ability of system personnel to adequately operate and maintain the system and otherwise
implement technical knowledge (including operator certification)
Submission of engineering plans, including a plan for operation and maintenance of all
components of the system, data showing the capability of the water system's source to
meet the expected water demand
Data showing that a minimum of 20 psi water pressure can be maintained at the highest
point in the system, and any other information ADEC considers necessary
Managerial Capacity
System's ownership accountability
Staffing and organization
Means of communication with customers
Professional service providers
Copy of its application for a certificate of public convenience and necessity (CPCN)
(Systems that do not have to apply for a certificate must provide a description of the
management structure of the proposed system, including the duties of each position.
These systems must also provide a description of the training, experience, certification or
licensing of the proposed staff, and an explanation of how the system will maintain
effective external relationships.)
Emergency response plan
Documentation of legal ownership and any plans to transfer ownership after construction
Financial Capacity
Owner or operator's revenue sufficiency
Credit worthiness
Fiscal controls
Financial plan and budgets for operations, capital improvements, and emergencies
Proof that application of CPCN has been submitted (public utilities)
Financial Capability Assessment (non-public utilities)
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B) Operational Approval
ADEC reviews the technical capacity of new systems after construction, but before the systems
begin providing water to the public. If ownership has changed since the issuance of the
construction approval, the new owners must submit revised managerial and financial information
to RCA. (As part of the construction approval process, the system is required to notify ADEC of
plans to transfer of ownership after construction.)
III. Program Evaluation
ADEC will evaluate the program by monitoring and tracking the compliance records of PWSs
that receive operation approval through the capacity development program. Program staff will
collect, review, and evaluate the number of systems that are issued approval under the program
and track their compliance rates.
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Arizona
I. Basis of Authority
A) Statutory Authority
Section 49-3 53. A. of the Arizona Revised Statutes (ARS) gives the Arizona Department of
Environmental Quality (ADEQ) broad authority to promulgate rules concerning the technical
components of a system and requires the rules to demand a demonstration of managerial and
financial capacity from new PWSs:
"The director shall:...2. Prescribe rules regarding the production, treatment, distribution and
testing of potable water by public water systems...The rules shall:...(i) Require that a new public
water systems demonstrate that the system possess adequate managerial and financial capacity to
operate in compliance with this article and the rules adopted pursuant to this article."
http://www.azleg.state.az.us/ars/49/353.htm
B) Implementing Authority
Section Rl 8-4-602 of the Arizona Administrative Code (AAC) requires new systems to submit
to ADEQ, a business plan describing TMF capacity:
"To become a new public water system, an owner shall file an elementary business plan for
review and approval by the Department, on a form provided by the Department. The elementary
business plan shall meet the requirements of, and contain all information required in §R18-4-603
[Technical Capacity Requirements], Rl 8-4-604 [Managerial Capacity Requirements], and §R18-
4-605 [Financial Capacity Requirements]."
http://www.sosaz.com/public_services/Title_l 8/18-04.htm
C) Responsible Agencies
The Water Supply Division of ADEQ coordinates the capacity review process for new systems
and reviews the technical and managerial capacity of all new CWSs and NCWSs. Financial
capacity is reviewed by the Arizona Corporation Commission (ACC), the Arizona Department of
Water Resources (ADWR), or the Water Infrastructure Finance Authority (WIFA). ACC holds
hearings to review the fee and tariff structures of investor owned utilities; ADWR reviews the
financial capabilities of systems that are within ADWR's "Active Management Areas," as well as
those requiring a 100-year water adequacy through its Assured Water Supply certification
program; and WIFA performs financial reviews of systems that are not under the jurisdiction of
either of these two agencies. The system must communicate the results of the financial review to
ADEQ.
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II. Control Points
A) Approval to Construct
Before beginning construction, new water systems must submit to ADEQ, a Capacity
Development Application and 5-year Elementary Business Plan. In order to demonstrate
capacity, proposed systems are required to submit the following information:
Technical Capacity
Documentation showing that the system's source, treatment, design, and infrastructure are
adequate and that the system has an appropriately certified operator on staff
Managerial Capacity
Future infrastructure needs estimates and a capital improvement plan
Operation and maintenance plan
Emergency operation plan
Ownership information
Organizational chart
Staff job descriptions and responsibilities
Financial Capacity
Systems under ACC jurisdiction must participate in rate and tariff hearings and must
submit an annual income and expenses report
Systems reviewed by ADWR must obtain an Assured Water Supply Certification
Systems reviewed by WIFA are required to demonstrate through a detailed 5-year
financial projection that they will collect sufficient revenues to meet all of their projected
expenses, that they will generate reserves, and that their proposed rates are reasonable
compared to the median household income of the area to be served
ADEQ can require the system to make modifications to the design and proposed operation of the
system. ADEQ will re-review the managerial and financial information with these modifications
in mind.
III. Program Evaluation
Arizona did not mention an evaluation plan for determining the success of their capacity
development program in available documents.
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Arkansas
I. Basis of Authority
A) Statutory Authority
Arkansas Annotated Code §20-7-109 gives the Arkansas Department of Health (ADH) broad
authority to promulgate rules and regulations pertaining to the protection of public health:
"Power is conferred on the State Board of Health to make all necessary and reasonable rules and
regulations of a general nature for the protection of the public health and safety."
http://www.arkleg.state.ar.us/lpbin/lpext.dll?f=file[fbrowse-h.htm
B) Implementing Authority
Section XX-Preliminary Reports of Arkansas Rules and Regulations Pertaining to PWSs,
requires all new systems to submit a preliminary report that demonstrates TMF capacity:
"The Department shall not approve the construction of any new Community Public Water
System or Non-Transient Non-Community Public Water System unless the [preliminary]
report demonstrates the system's technical, financial, and managerial capacity to comply with the
requirements of the Safe Drinking Water Act."
http://health.state.ar.us/eng/PWSregs99.htm
C) Responsible Agencies
The ADH Division of Engineering (DOE) has jurisdiction over all matters concerning the Rules
and Regulations Pertaining to Public Water Systems. DOE also has a verbal agreement with the
Arkansas Soil and Water Conservation Commission (ASWCC) to provide as-needed assistance
in the evaluation of the financial and managerial capacity of new systems.
II. Control Points
A) Preliminary Report
Systems must submit a preliminary report to ADH that contains enough information to give
ADH a "complete understanding of the proposed system." The Recommended Standards for
Waterworks/Ten State Standards is suggested as a guide for developing the Preliminary Report
which should include, but is not limited to:
The results of an ADH inspection of the proposed source of supply.
A long-range plan that includes a 10-year projection of source, treatment, storage and
distribution needs, and a demonstration of TMF capacity.
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B) Plans and Specifications
Once ADH approves the preliminary report, the system must submit plans and specifications and
other documentation including an Engineers Report. The district engineer will review the
information and if the system meets all criteria, the documentation will be forwarded to the
engineering supervisor and the chief engineer for concurrence and approval. If the system has
demonstrated adequate TMF capacity, ADH will allow the system to be constructed.
C) Approval to Operate
After completing the construction of the new public water system, the water system owner is
required to notify ADH that construction was completed in accordance with the approved plans
and specifications. If the construction meets the approval of ADH, the Department will issue
written approval to operate the system.
III. Program Evaluation
ADH will track compliance rates to measure the success of their new system capacity
development program. If new system compliance rates are low, ADH will assess the causes of
the violations and take appropriate action to address common causes. For example, if violations
appear to be caused by financial deficiencies, ADH will investigate whether the water system
merely did not follow their long-range financial plan or whether the financial review criteria
should be changed.
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California
I. Basis of Authority
A) Statutory Authority
The California Health and Safety Code (CHSC) §116540(a) requires all water suppliers of PWSs
not already in existence on January 1, 1998, to demonstrate adequate IMF capabilities to the
State Department of Health Services (the Department) in order to receive a permit:
"No public water system that was not in existence on January 1, 1998, shall be granted a permit
unless the system demonstrates to the department that the water supplier possesses adequate
financial, managerial, and technical capability to assure the deliverance of pure, wholesome, and
potable drinking water. This section shall also apply to any change of ownership of a public
water system that occurs after January 1, 1998. "
http://www.dhs.ca.gov/ps/ddwem/publications/lawbook.htm
B) Implementing Authority
California Code §22.12.63026-28 gives the department specific authority to govern the IMF
capacity assessment process. CHSC §116540 gives the department the authority to impose permit
conditions as it deems necessary. The Department will impose these permit conditions through
their Policies and Procedures manuals.
C) Responsible Agencies
The Department is authorized to administer the California Safe Drinking Water Act. The
Department can delegate authority to implement the drinking water program for systems serving
less than 200 people to Local County Health Departments. If the Local County Health
Department agrees to implement a program that is no less stringent then what is specified in the
CHSC and regulations, the County is designated as a Local Primacy Agency (LPA).
II. Control Points
A) Operating Permit
The Department uses an operating permit process to evaluate the TMF capacity of a proposed
system. Proposed systems are required to submit an application and a technical report. The
technical report may include, but is not limited to, detailed plans and specifications, water quality
information, a physical description, and financial assurance information. The Department has
developed two TMF Capacity Criteria guidance documents (one for CWSs and one for both
NTNCWSs and non community water systems (NCWSs) that list additional required
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documentation. To allow the Department to evaluate the system's capacity, new systems must
submit4:
Technical Capacity
A system map that shows proposed service area and location of facilities (CWSs must
also submit as-built plans)
A 10-year growth projection of the system and a 10-year projection of water demand
(CWSs only)
A source capacity assessment, including both quantity and quality considerations
A technical evaluation including a characterization of water quality, and an evaluation of
the feasibility of consolidation
Operational plans, including a plan for how the system will comply with all applicable
current and proposed drinking water standards (CWSs and NTNCWSs that are providing
treatment only)*
Evidence of the system's ability to accurately and continuously measure the quantity of
water produced from each water source
Operator certification information*
A plan for continuing education of system management and system operators (CWSs
only)*
Managerial Capacity
A description of the type of system ownership
An organizational chart and a complete description of reporting relationships and primary
responsibilities of all key personnel
A description of the training and experience of management personnel
A description of how legal, engineering, and other professional services are provided
If the system contracts for services, a copy of the contract
A description of the legal basis and authority for the diversion or the extraction of water
Information that demonstrates that the water system has complied with local land and
water use plans
An emergency/disaster response plan*
Financial Capacity
A five-year budget proj ection
A capital improvement/equipment replacement plan (CWSs only)
A description of the water system's budget control and reporting procedures (CWSs
only)*
A description of reserve accounts (CWSs only)*
4Elements marked with an asterisk (*) are not necessary at the time of the permit application but must be
developed by the water system within an agreed upon time frame. A schedule is included in the permit when it is
issued by the Department.
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The Department may conduct an on-site visit. Once the Department has determined that the
system has the capacity to reliably deliver safe water, the Department will grant the system a
permit to operate. The permit often contains special conditions appropriate to the water system.
III. Program Evaluation
At the end of every year, the Department will review all permits issued to new water systems to
ensure that proper TMF review procedures were followed. The Department will also conduct
periodic compliance assessments of new systems to determine if the TMF capacity criteria were
effective.
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Colorado
I. Basis of Authority
A) Statutory Authority
Colorado Revised Statutes §25-l-107(l)(x) gives the Department of Public Health and
Environment (DPHE) broad authority to enforce the Safe Drinking Water Act for new
waterworks:5
"The department has,... the following powers and duties: ... Review and approval by the
department, prior to initiation of construction, of the technical plans and specifications, long-term
financial plans, and operations and management plans for any new waterworks or technical plans
and specifications for substantial modifications to existing waterworks...."
http://www.leg.state.co.us/inetcrs.nsf/caff08b8aOe34035872565e8006d65f8/78ecel2faabfd39087
2567df005b3 lfe?OpenDocument
B) Implementing Authority
1) The Colorado Primary Drinking Water Regulations (CPDWRs) §2.1.4 prohibit the
construction of new waterworks unless DPHE has given approval:
"No person shall commence construction of any new waterworks, or make improvements to or
modify the treatment process of an existing waterworks, or initiate use of a new source, until
plans and specifications for such construction, improvements, modifications or use have been
submitted to, and approved by the Department... The Department shall grant such approval when
it finds that the proposed facilities are capable of complying, on a continuous basis, with all
applicable laws, standards, rules and regulations."
http://www.cdphe.state.co.us/regs/nl00301.pdf
C) Responsible Agency
DPHE is authorized to implement the SDWA and the Colorado Drinking Water Program. The
Water Resources Division of the Department of Natural Resources (DNR) provides water rights
certification to new systems. Systems must submit a valid water rights certificate as a component
of technical capacity.
5New waterworks means any newly constructed public water system, or existing system that becomes, by
definition, a public water system by virtue of increasing the number of connections, the number of individuals
served, or the number of days of service. CPDWR 2.1.2(3).
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II. Control Points
A) Construction Approval
A system must submit the following documentation to DPHE to be considered for a construction
approval:
A water system construction approval application
Detailed plans and specifications including blueprints
A project summary
Design calculations
Well construction details
County and Local Health and Planning Department approvals
A flood plain certificate
An inventory form
Chemical analysis of the raw water
A lead and copper assessment
A managerial plan
A financial plan
A water rights certification and a well permit
Once all the required documentation has been submitted, DPHE uses the materials to assess the
capacity of the proposed waterworks. A demonstration of adequate capacity includes:
Technical Capacity
Finished water that meets all required drinking water standards
Personnel that are able to operate the system effectively
Delineation of operator and staff responsibilities
A valid water rights certification from the DNR showing sufficient water supply to meet
the needs of the projected population to be served
Managerial Capacity
Identification of the system owner, manager, and operator on an organizational chart
Satisfaction of operator certification requirements
A system to maintain all required records, distribution system histories/maps, and
compliance information
An O & M manual that includes a description of the facilities, explanations of startup and
normal operation procedures, sampling schedules, staffing requirements, potential water
supply risks, a safety program, plans for tracking unaccounted water, available external
resources, an emergency management plan, manufacturer's manuals, budget
development, rate structure, cross-connection control policy, public education policies,
customer complaint policies, and policy for notification of a water quality violation
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Financial Capacity
A 5-year budget
Itemization of projected expenses and revenues
Comparisons of anticipated revenues and expenditures for 5 years
Identification of reserve accounts for emergencies and O & M funds
Access to public/private financial capital
Revenues that are greater than costs
Periodic financial audits
An annual budget
Rates that are less than 1.5% of the county's average annual median household income
An operating ratio greater than 1.0
A coverage ratio greater than 1.0
An emergency reserve that is funded
Development of a capital improvement plan
Metered service connections
After review of the submitted documentation, DPHE will notify an applicant whether the
application was approved, conditionally approved, or denied. If the proposed waterworks failed
to demonstrate capacity, DPHE will send a list of deficiencies along with names of assistance
providers that can help the system improve capacity. If the deficiencies are not addressed, DPHE
will deny the construction approval application.
III. Program Evaluation
Colorado does not mention an evaluation plan for determining the success of their capacity
development program in available documents.
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Connecticut
I. Basis of Authority
A) Statutory Authority
1) Connecticut General Statutes (CGS) §16-262m requires all new water companies6 to apply to
the Department of Public Health (DPH) and the Department of Public Utility Control (DPUC)
for a Certificate of Public Convenience and Necessity (CPCN) prior to construction, and
specifies that DPH and DPUC will base their decisions, in part, on a system's financial,
technical, and managerial resources:
"No water company may begin the construction of a water supply system ... without having first
obtained a CPCN from the DPUC and the DPH ...The departments shall issue a certificate to an
applicant upon determining, to their satisfaction, that ...(3) the applicant has the financial,
technical, and managerial resources to operate the proposed water supply system in a reliable and
efficient manner and to provide continuous adequate service to consumers served by the system."
http://www.cga.state.ct.us/ps99/pubstat/16000262mk.doc
2) CGS §25-33(b) prohibits water companies from constructing water systems without DPH
approval:
"No system of water supply owned or used by a water company shall be constructed or expanded
or a new additional source of water supply utilized until the plans therefor have been submitted
to and approved by said department."
http://www.cga.state.ct.us/ps99/pubstat/25-00-0033k.doc
B) Implementing Authority
1) DPUC Regulation 16-262m outlines the requirements a new water company must meet to
obtain a CPCN.
httpy/www.dpuc.state.ct.us/DPUCINFO.nsf/rSSBv+Water^OpenView
2) Public Health Code (PHC) Regulation 19-13-B102(d)(2) requires new PWSs to notify DPH of
plans to construct a new water system and obtain approval from DPH before any construction
begins:
6"Water company' means a corporation, company, association, joint stock association, partnership,
municipality, other entity or person, or lessee thereof, owning, leasing, maintaining, operating, managing or
controlling any pond, lake reservoir, stream, well or distributing plant or system employed for the purpose of
supplying water to fifteen or more service connections or twenty-five or more persons on a regular basis." Public
Act No. 98-250
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"The state health department must be notified before entering into a financial commitment for a
new public water system or increasing the capacity of an existing public water system, and the
approval of the state health department must be obtained before any construction is begun."
http ://www. state. st.us/dhp/phc2K/phc2K%20search.htm
C) Responsible Agencies
DPH has jurisdiction over all matters concerning the purity and adequacy of drinking water in
Connecticut. DPH and DPUC work collaboratively to issue CPCNs to new water companies.
DPH reviews the technical and managerial aspects of the application, and DPUC reviews the
managerial and financial information in the application.
II. Control Points
A) CPCN
A CPCN is required for all new water companies. The application process occurs in three
phases: I-A, I-B, and Phase II:
During Phase I-A, a proposed system must demonstrate to DPH:
The feasibility of interconnection to an existing system
The location and proposed construction of any source of supply
The possible duplication of service and water facilities caused by the installation of the
proposed system
The name of an existing regulated or municipal water utility or regional water authority
which will own, operate, and maintain the final constructed water supply facilities if they
are to remain as a non-connected satellite system
A proposed system can develop the source of supply upon approval of the Phase I-A
documentation.
Phase I-B requires the proposed system to submit well yield data and water quality data for each
well. Upon approval of Phase I-B documentation, the proposed system can secure building
permits, if required.
During Phase II, the proposed water company must submit:
Technical Capacity
A description of the technical background and experience of the proposed operator and a
signed agreement or contract to guarantee continuous long-term operation
Plans for conducting cross-connection investigations; conducting required sampling,
testing and reporting; maintenance of the system; maintenance of required records;
operator safely; leak detection; long-range water conservation; and action and proper
notification of authorities in an emergency
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Managerial Capacity
The names and addresses of the person(s) or company responsible for routine operations,
budget preparation and administration, and for filing tax returns and annual audit reports
A description of the planning process and the assignment of responsibilities to meet
future customer needs
A description of the applicant's business organization
The qualifications of a business manager if one is employed
A description of the governing board, its background in utility business governance, and
the decision making process of the management entity
A list of operator and manager responsibilities
Financial Capacity
A current 12-month balance sheet and income statement and copy of the current income
tax return of the proposed owner of the system
A description of the financial resources to continuously provide adequate and safe water
in routine and emergency situations, including a cash flow statement for the year after
construction is completed
A description of fiscal controls
An estimated itemized cost of water facilities to be constructed or expanded
If both DPH and DPUC approve the Phase I-A, Phase I-B, and Phase II documentation, they will
issue a CPCN. If the system cannot provide any of the required items or cannot demonstrate
capacity, the Departments may advise the applicant of changes that must be made before a CPCN
can be issued.
B) DPH Approval of Construction, Treatment, and Source Water
DPH must approve the construction, expansion, or addition of new sources of supply. The
department consults with, and advises the water company as to proposed sources of water supply
and methods of assuring their purity and adequacy.
III. Program Evaluation
To track the progress of the new system capacity development program and refine it for the
future, DPH will consult with a number of forums to review current processes, take comments on
needed improvements, and develop regulatory revisions. The forums include:
The DPUC docket
DPH and DPUC Regulatory Work Group, in cooperation with other involved State
agencies (e.g., Department of Environmental Protection and the Office of Policy and
Management)
Performance Partnership Agreement Advisory Committee and Internal Committee
Water Utility Regulation Coordination Group
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Delaware
I. Basis of Authority
A) Statutory Authority
Delaware House Bill 427 (Delaware Annotated Code Title 16.01.122(5)) provides the Delaware
Health and Social Services (DHSS) with specific authority to ensure capacity in all new water
systems in the State:
"The Department shall ensure that all new community and noncommunity public water systems
commencing operation after October 1, 1999, demonstrate technical, managerial, and financial
capacity..."
http://www.lexislawpublishing.com
B) Implementing Authority
1) State of Delaware Regulations Governing Public Drinking Water §22.211A require all new
water systems to obtain a certification of approval from the Department prior to construction:
"No person shall construct a new public water system... without a Certificate of Approval for
Construction."
2) State of Delaware Regulations Governing Public Drinking Water §22.21 IB require all new
systems to submit an application for Capacity Development Review:
"All new community and nontransient noncommunity systems must comply with §22.211A and
in addition, submit an Application for Capacity Development Review."
3) State of Delaware Regulations Governing Public Drinking Water §22.212A and B require new
systems to apply for a Certificate of Approval to Operate:
" (A)No person shall operate a newly constructed water system without a Certificate of Approval
to Operate. A Certificate of Approval to Operate shall be issued by the Division to water systems
which meet the following requirements....(B) a certification by a professional engineer that the
system was built in accordance with approved plans and specifications,... managerial and
financial information as required by the Division to demonstrate compliance with Capacity
Development..."
C) Responsible Agency
The DHHS issues Certificates of Approval to Construct and Operate and otherwise implements
the Delaware Drinking Water Program.
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II. Control Points
A) Certificate of Approval to Construct
Systems may not commence construction without first securing a Certificate of Approval to
Construct from DHHS. In order for DHHS to process a system's application of an Approval to
Construct, the system must submit:
A completed application
A description of the nature and extent of the water supply system
An engineering description
Plans and specifications
An annual budget
An emergency plan
A cross connection control plan
An organizational chart
A water conservation plan
A long-term plan
B) Certificate of Approval to Operate
Systems may not begin to operate without obtaining a Certificate of Approval to Operate from
DHHS. Additional information must be submitted by the system and DHHS must determine that
the system has adequate technical, managerial, and financial capacity:
Notice of Completion signed by an engineer certifying that the system was built in
accordance with approved plans
Certification that the system will use the services of a certified drinking water operator
Water quality sampling results
O & M manual
A CPCN or water allocation permits, if required
User rate schedules
DHHS will review the documentation and notice of Completion and issue a Certificate of
Approval to Operate if the systems has met all DHHS criteria.
III. Program Evaluation
To track the progress of the new system capacity development program and refine it for the
future, the DHHS will track new system's monitoring and compliance rates using the SDWIS
database and maintain records of the numbers of Certificate of Approval applications and
approvals and annually review those approvals.
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Florida
I. Basis of Authority
A) Statutory Authority
Florida Statutes §403.8615(1) requires the Florida Department of Environmental Protection
(FDEP) to require new CWSs and new NTNCWSs seeking to commence operations after
October 1, 1999, to demonstrate capacity:
"The department shall require all new community water systems and new nontransient,
noncommunity water systems seeking to commence operation after October 1, 1999, to
demonstrate the technical, managerial, and financial capabilities to comply with national primary
drinking water regulations as required by the federal Safe Drinking Water Act, as amended. The
department shall establish by rule. . . the criteria for determining technical, managerial, and
financial capabilities."
http://www.dep. state .fl .us/ogc/documents/statutes/text/ch403. rtf
B) Implementing Authority
Florida Administrative Code Section 62-555.525(2) requires systems to demonstrate capacity (as
set forth in the section) in order to receive a construction permit:
"To receive a construction permit, all new community and non-transient noncommunity water
systems must demonstrate the technical, managerial, and financial capacity to comply with the
requirements."
http://www.dep.state.fl.us/ogc/documents/rules/drinkingwater/62-555.doc
C) Responsible Agencies
FDEP has the primary role of regulating PWSs in Florida. For systems subject to new systems
CD requirements, FDEP will not issue a construction permit unless it receives an acceptable
capacity demonstration and the system satisfies all other FDEP requirements, except as follows.
The Florida Public Service Commission (FPSC) regulates the financial capacity for those
systems under the Commission's jurisdiction. Systems under the FPSC's jurisdiction are not
required to demonstrate financial capacity, because the FPSC implements financial requirements
for its systems.
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II. Control Points
A) Construction Permit
New systems must secure a construction permit from FDEP prior to commencing construction.
To receive a construction permit, all new systems must:
Submit an application that includes an engineering report, plans and specifications,
Employ, contract for the services of, or have the system owner be a certified operator
Demonstrate the capabilities to conduct monitoring and reporting programs and maintain
required records
Demonstrate the capabilities to meet O & M requirements
Provide projected or actual income sources and funds; projected and actual expenses for a
five-year planning period; names and contact information for owners, operators, and
employees responsible for making decisions; planning documents; and a description of
the alternate means of supplying water considered by the system (including the TMF
reasons for the selected option)
Receive notification from FDEP concerning which planning documents will be due and
when
Meet FPSC financial and managerial requirements, if applicable
B) Letter of Clearance
After construction but prior to the commencement of operation, the system must submit an
engineer's certification of completion and satisfactory water quality results, and pass a FDEP
inspection. When the system passes inspection and FDEP is satisfied that the system has
adequate technical, managerial, and financial capacity, FDEP will issue a Letter of Clearance and
the system may begin operating.
FDEP can deny a permit application, request additional information, and deny the issuance of the
Letter of Clearance if the Department determines that the system will not be able to operate in
compliance with all applicable rules.
III. Program Evaluation
FDEP uses a spreadsheet program to track the status of the systems subject to the new systems
capacity development program. Implementation data is collected, including the number of
construction permit applications, the number denied, the reasons for denial, and the number of
revised based on Department comment. Compliance rates for new systems will be evaluated
using record data and results of onsite inspections. FDEP will periodically reevaluate the
program and make changes as necessary.
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Georgia
I. Basis of Authority
A) Statutory Authority
Ga. Code Ann. §12-5-179(b) requires new systems to secure a permit prior to the commencement
of operation and gives the director of the Department of Natural Resources (DNR) the broad
authority to require the submission of information:
"Any person who desires to own or operate a public water system. . . must obtain such permit
prior to the operation of the same. The director, under the conditions he prescribes, may require
the submission of such plans, specifications, and other information as he deems relevant in
connection with the issuance of such permits."
http://www.ganet.org/services/ocode/ocgsearch.htm
B) Implementing Authority
Georgia DNR, Environmental Protection Division (EPD), Rules for Safe Drinking Water
Paragraph 391-3-5-.17(3) allows the director to require a demonstration of capacity prior to
issuing a permit:
"Any applicant for a permit whose application is pending final consideration shall upon the
request of the Director provide such additional information as may be necessary to enable the
Director to properly pass upon the application. Such additional information may include . . .
documentation to demonstrate system's financial, technical, and managerial capacity with respect
to drinking water regulations in effect or likely to be in effect."
http ://www. ganet. org/dnr/environ/
C) Responsible Agencies
The Georgia DNR EPD, Drinking Water Permitting and Engineering Program (DWPEP) and
Drinking Water Compliance Program (DWCP) are primarily responsible for the implementation
of the Georgia Safe Drinking Water Act.
II. Control Points
A) Approval to Construct
Prior to applying for approval to construct, all proposed PWSs evaluate the feasibility of
connection to an existing governmentally owned water system. (Rules for Safe Drinking Water
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Paragraph 391-3-5-.04(3)). If connection to a governmentally owned system is not available or
feasible, then the applicant must submit to DWPEP:
An application for approval to construct signed by the owner
An engineering report which contains among other things, a business plan demonstrating
that the system has the financial, technical, and managerial capability to comply with
federal and State drinking water regulations
Plans and specifications
Written certification by the owner outlining why the proposed system cannot connect to
an existing local governmentally owned water system
An executed trust indenture in which a trustee (preferably the local government authority)
agrees to ensure proper operation and maintenance of the system (for all non-
governmentally owned systems)
Privately owned water systems must also submit:
Written certification from the local government concurring with the development of the
system
A mulit-year business plan which adequately demonstrates a water system's managerial
and financial capacity.
B) Operating Permit
After construction, a system must submit:
An application for a permit to operate signed by the owner and clearly identifying the
name and contact information for the system's certified operator
Engineers certification that construction was competed in accordance with approved
plans and specifications
If the system meets all State and local requirements, DWPEP will issue a permit to operate.
III. Program Evaluation
EPD will evaluate program success by comparing the compliance records of new PWSs with the
compliance records of systems constructed before the capacity requirements went into effect.
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Hawaii
I. Basis of Authority
A) Statutory Authority
§340E-2.5 of the Hawaii Revised Statutes (HRS) gives the Department of Health (DOH) specific
authority to adopt rules to ensure that new systems demonstrate adequate capacity prior to the
commencement of operation:
"The director may adopt rules to ensure that public water systems demonstrate technical,
managerial, and financial capacity with respect to each state primary drinking water regulation in
effect, or likely to be in effect, when the systems supply drinking water or commence
operations."
http://capitol.hawaii. gov/hrscurrent/Vol06/hrs340e/HRS 340E-2 5.htm
B) Implementing Authority
1) Hawaii Administrative Rule (HAR) Section 1 l-20-29(e) requires that the new water systems
with a new source of raw water, demonstrate capacity before the DOH approves the new source
of water. The approval for the use of the water is processed concurrently with the approval to
construct with the DOH approval to use the system.
"(e) Before the director approves the use of a new source of raw water to supply a new
community public water system or a new non-transient non-community water system, the
proposed supplier of water shall demonstrate the new public water system to be supplied by the
new source of raw water has adequate capacity under section 11-20-29.5. Approvals for the use
of a new water source of raw water to supply a proposed public water system subject to Section
1 l-20-30(d) shall be processed concurrently with the director's approval to construct...and be
granted concurrently with the director's approval to use the public water system."
2) Hawaii Administrative Rules (HAR) Section 1 l-20-30(a) requires that new or modified PWSs
obtain approval from the DOH before construction or operation:
"(a) No new public water system shall be constructed or used to deliver water to any user..until
the new public water system...has been approved by the director..."
3) HAR Section 1 l-20-30(d) requires new or modified systems to demonstrate capacity in order
to obtain the approval required under HAR Section 11-20-30(a):
"(d) For approval of a new community public water system or new non-transient non-community
public water system, required under subsection (a),...the proposed supplier of water... shall...
demonstrate to the director's satisfaction that the proposed system has adequate capacity as
described in §11-20-29.5."
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http://www.state.hi.us/doh/rules/etnd/ll-20.pdf
C) Responsible Authority
DOH's Safe Drinking Water Branch (SDWB) is responsible for implementing the new water
system capacity development requirements. On a case by case basis, DOH will request the
assistance of the Wastewater Branch or the Public Utilities Commission.
II. Control Points
A) Interim Approval for New Water Source and Approval to Start Construction
New systems will need to obtain a review that the new water source is satisfactory for potable
water use and selected IMF capacity attributes must be demonstrated before approval to
construct is granted. The construction plans for the water system must also be DOH approved.
To apply for approval to construct, the system must submit:
Documentation and information requested by the SDWB's Interim Capacity Approval for
New Community and New Non-transient Non-community Water Systems. The owner
must demonstrate that selected TMF capacity attributes prior to construction are
satisfactory
An engineer's report, including information on chemical and pesticide analysis and
quality of the water, and other information needed to obtain interim approval, to provide
assurance that the new water source will be satisfactory
Construction plans for DOH review and approval
B) Preuse Approval
To obtain approval to operate the new water system, the owner must submit the documentation
and information requested by the SBWD's Evaluating Capacity Of New Community and New
Non-transient Non-community Water Systems. The SDWB evaluates the following:
Technical Capacity
Certification that the system has been built in accordance with the approved construction
plans and specifications
The source water is satisfactory and adequate source of supply
Operators are certified and operating procedures are available
Water quality monitoring plans are available
An adequate infrastructure replacement plan
An adequate O & M plan
An adequate operator training program
A cross-connection and backflow prevention program
A system to maintain and update plans
Managerial Capacity
Clear organizational structure and communications
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Clear identification of ownership
An adequate information management system
Qualified management and a management training program
An adequate emergency response plan
Adequate internal policies, covering customer service, communications with regulatory
officials, and budget and rate development
Financial Capacity
An adequate budget
Adequate budget controls
Credit worthiness
Points are assigned for each attribute, and each component of capacity is ranked as "satisfactory"
or "needs assistance" depending on the total number of points earned. A system must be
evaluated as "satisfactory" in each capacity component (TMF) to demonstrate adequate capacity.
A system evaluated as "needs assistance" may request a capacity reevaulation after correcting the
problems which caused the "needs assistance" capacity rating.
III. Program Evaluation
Hawaii will evaluate capacity development program two years after the program is adopted and
every three years thereafter. Te evaluation will be included in the report to the Governor.
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Idaho
I. Basis of Authority
A) Statutory Authority
Idaho Code §39-105(3)(e) gives the Idaho Department of Health and Welfare specific authority
to implement a capacity development strategy:
"The powers and duties of the director shall include...implementation of a capacity development
strategy to ensure public drinking water systems have the technical, managerial, and financial
capability to comply with the national primary drinking water regulations."
http ://www3. state.id.us/cgi-bin/newidst?sctid=3 90010005 .K
B) Implementing Authority
Idaho Administrative Code (IDAPA) Section 16.01.08.549 requires a demonstration of capacity
before commencing construction of a new CWS or new NTNCWS:
"No person shall proceed, or cause to proceed, with construction of a new community or
nontransient, noncommunity drinking water system until it has been demonstrated to the
Department that the water system will have adequate technical, financial, and managerial
capacity."
http://www2.state.id.us/adm/adminrules/rules/idapal6/0108.pdf
C) Responsible Authority
The Idaho Division of Environmental Quality (DEQ), within the Department of Health and
Welfare, is responsible for implementing Idaho's new system capacity assurance program. The
Idaho Public Utilities Commission (IPUC) is responsible for regulating privately owned water
utilities that are operated for profit. These systems are subject to evaluation of TMF capacity that
is no less stringent than the assessment performed by DEQ. An IPUC certificate of public
convenience and necessity is equivalent to the approval to proceed with construction issued by
DEQ.
DEQ also works with State Health Districts which are responsible for implementing and
enforcing sanitary requirements applicable to private residential developments, and the Idaho
Water Resources Board (IWRB) which has established requirements for permitting and
construction of water wells. IWRB and DEQ are working toward a joint policy which will
standardize the approach to public water supply regulatory oversight throughout the State.
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II. Control Points
A) Construction Approval
Before new or expanding PWSs can begin construction, they must receive written approval from
DEQ. To obtain this approval, systems must submit:
System ownership and management information
A service area/facilities map
A component inventory and assessment
Water usage projections
Proof of water rights and initial monitoring
Monitoring and compliance plans
A capital replacement plan
An O & M manual
A cross-connection control plan
An emergency response plan
A source water protection plan
A five-year budget
A satisfactory demonstration of capacity also requires the owner of the proposed new system to
investigate the feasibility of obtaining water service from an established PWS. If consolidating
with an existing system is a feasible option the owner must justify the decision to proceed with a
stand-alone system.
B) Sanitary Restrictions
Private residential developments must secure approval for sewage and water facilities. If the
Health District finds that a public water system will be created in the development, it refers the
application to DEQ. The State Health District will not remove sanitary restrictions until the
developer secures construction approval for a new system from DEQ.
C) Well Construction Permit
IWRB reviews well permit applications and alerts DEQ if the well will be a source of supply for
a public water system. IWRB will not issue a well drilling permit until DEQ issues a letter of
approval for the well site.
III. Program Evaluation
DEQ intends to keep a log of all new systems that receive construction approval after June 1,
1999. The compliance records of these systems will be manually tracked to determine if their
compliance records reflect a consistent and sustained ability to deliver safe water. (Eventually
the tracking system will be computerized.) In addition to compliance data, DEQ will also
examine sanitary survey results, wellhead protection plans, operator certification, and
communications with regulatory agencies. Feedback from the tracking process will be used to
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make improvements to the guidance document, How to Demonstrate Financial, Technical, and
Managerial Capacity in New Public Water Systems, and to the new system capacity program.
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Illinois
I. Basis of Authority
A) Statutory Authority
Illinois Compiled Statutes (ILCS) §415 ILCS 5/15 requires new systems to demonstrate capacity
as a condition of receiving a construction or operation permit:
"... (b) All new public water supplies established after October 1, 1999 shall demonstrate
technical, financial, and managerial capacity as a condition for issuance of a construction or
operation permit by the Agency or its designee."
http://www.legis.state.il.us/ilcs/ch415/ch415act5articles/ch415act5Sub4.htm
B) Implementing Authority
Illinois Administrative Code (IAC), Subtitle F, Subpart G, §652.701 requires systems to
demonstrate capacity:
"Beginning after October 1, 1999, all new public water supplies must demonstrate technical,
financial, and managerial capacity to ensure compliance with the applicable federal and State
drinking water standards ..."
http://www.ipcb.state.il.us/title35/download/F652.doc
C) Responsible Agency
The Illinois Environmental Protection Agency (IEPA) is the primacy agency for the Illinois
Drinking Water Program.
II. Control Points
A) Construction Permit
A system must secure a construction permit from IEPA before construction of a PWS can begin.
The proposed system must demonstrate TMF capacity before IEPA will issue the permit. The
system must submit:
Technical Capacity
Documentation of compliance with standards for design, construction, and operation of
public water supplies
The selection of a source that is economical, reliable, and adequate
Documentation of compliance with ownership, certified operator, and responsible
operator rules
Documentation of compliance with federal and State drinking water standards
A summary of design basis and general layout information
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A list of operational requirements
A professional seal from a person qualified under the Illinois Architecture Practice Act,
the Illinois Professional Engineering Practice Act, or the Illinois Structural Engineering
Licensing Act
Detailed plans and specifications
Managerial Capacity
An organizational chart of system responsibilities
An operational management plan with operating procedures, personnel responsibilities, a
description of how changes will be made, and how these changes will be reported and
implemented
An emergency management plan with potential risks to system, personnel responsible for
responding, notifying the public, and press relations, and measures for avoiding
emergencies
A plan for on-going training participation by staff
Financial Capacity
A five-year budget with revenue, expenses, reserves, capital improvements, and an
emergency reserve fund
A description of income, investment, and disbursement procedures with fiscal
management reports
A plan for financial growth, potable water demands, and regulatory compliance
B) Operating Permit
A system must secure an Operating Permit from IEPA before operation of a PWS can begin. The
system must submit:
Name and certificate number of the certified operator or name and registration number of
the registered person in charge of supplies
Name and location of water supply
Construction permit number for the water supply
III. Program Evaluation
Illinois does not mention an evaluation plan for determining the success of their capacity
development program in available documents.
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Indiana
I. Basis of Authority
A) Statutory Authority
Indiana Code § 13-18-2 l-3(d) gives the Indiana Department of Environmental Management
(IDEM) broad authority to ensure that new systems demonstrate capacity:
"... This is all the legal authority required by the State for the budget agency and the department
to ensure that all new community water systems and new nontransient, noncommunity water
systems... commencing operations after October 1, 1999, demonstrate technical, managerial, and
financial capacity with respect to each federal primary drinking water regulation... The
department has primary responsibility to carry out this sub section."
http://www.state.in.us/legislative/ic/code/titlel3/arl8/ch21.html
B) Implementing Authority
Section 327 Indiana Administrative Code (IAC) 8-3-1.1 requires new systems to demonstrate
capacity in order to receive a permit to construct:
"(a) A new community public water supply system and a new nontransient noncommunity public
water supply system that will commence operation after October 1, 1999, must fulfill the
requirements of §327 IAC 8-3.6 prior to making a submission to the commissioner for a permit
to construct as described in sections 2 and 3 of this rule."
http://www.ai.org/legislative/iac/.
C) Responsible Agencies
IDEM has been delegated the authority to administer Indiana's capacity development program.
The Indiana Office of the Utility Consumer Counsel (IOUCC) and the Indiana Utility Regulatory
Commission (IURC) assist with the review of a system's financial capabilities.
II. Control Points
A) Water System Management Plan (WSMP) Approval
New systems must submit a WSMP to IDEM that includes:
Technical Capacity
A description of the type of system, the planned service area, and the public water supply
system by county, section, township, and range
A site plan
A description of the design basis and anticipated useful life for treatment and
transmission facilities
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Identification of interconnections with other systems
A description of the fire protection demand on the system
A description of a plan for metering water production and use
A description of plans to manage treatment waste
A description of the highest flood elevation at the site of sources and facilities
Details of source adequacy including: a site map; a summary of water quality; proposed
protection activities; methods to provide for operation, maintenance, inspection, testing,
repair, replacement, and associated record keeping for source and pumping facilities;
water meters; an infrastructure replacement plan; and information on providing a certified
operator
Managerial Capacity
A description of the organization and its ownership
A chart showing chain of command; an assessment of job responsibilities for each
management position
A description of ability to respond to emergency situations including risks, responsible
staff, response actions, notification procedures, alternate water supply, and
existence/limits of insurance
An assessment of consolidation or interconnection with other systems including a cost
and benefit comparison
An assessment of authority and responsibility considering each policy, ordinance, rule,
and regulation
A summary of existing requirements pertaining to the proposed water system
A description of required staff qualifications
A proposal for continued training
Financial Capacity:
A five year budget plan that includes: a statement of retained earnings and cash flows for
each of the five years; an account of operating revenues; and an account of expenses for
operation, maintenance, and administration expenses
A twenty year financial plan that includes projected growth and how this growth can be
met, an infrastructure replacement plan including funding, and an account for funding
needed repairs to meet drinking water standards and growth
B) Construction Permit
Once the WSMP has been approved by IDEM, the system must submit plans and specifications
and a Construction Permit application including:
Contact information
A description of the project including funding sources
A list of all parties requiring notification of granting, renewing, restoring, transferring, or
denying a license
A seal from a professional engineer certifying that by following the plans and
specifications drinking water will be of satisfactory quality
A proposed schedule for construction
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IDEM will review the application and information and issue a Construction Permit if the system
has met all the requirements.
III. Program Evaluation
IDEM will evaluate the compliance status of systems that begin operation after October 1, 1999
to determine whether the Water System Management Plan approach is successful in lowering
violation rates.
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Iowa
I. Basis of Authority
A) Statutory Authority
1) Iowa Code Chapter 455B. 173(3) delegates broad statutory authority to the Iowa Department of
Natural Resources (IDNR) to implement rules and regulations pertaining to PWSs:
"The commission shall, establish...rules relating to the location, construction, operation, and
maintenance of...public water supply systems...and specifying the conditions, including the
viability of a system."
http://www.legis.state.ia.us/IACODE/1999SUPPLEMENT/455B/173.html
2) Iowa Code Chapter 455B.174(4a) requires that all new PWSs must obtain written permit
approval from IDNR prior to commencing construction and operation of a PWS:
"The Director shall approve or disprove the plans and specifications for the construction of
public water systems... The director shall issue...permits for the operation, construction....of any
public water supply system..."
http://www.legis.state.ia.us/IACODE/Codel999SUPPLEMENT.pl
B)Implementing Authority
The Iowa Administrative Code (IAC) Rule 567 Chapter 43.8(4)a, requires new systems to submit
a viability7 assessment as part of the construction permit process:
"New public water supply system (including community, nontransient noncommunity systems,
and transient noncommunity systems) commencing operation ... are required to submit a
completed system viability assessment for review by the department, prior to obtaining a
construction permit."
http://www.legis.state.ia.us/Rules/2000/iac/567iac/56743/56743125.pdf
C) Responsible Agencies
The IDNR is the primacy agency for Iowa water supply programs and is responsible for
implementing the Capacity Development Program for new systems.
A viable system means a system with the technical, financial and managerial ability to comply with applicable
drinking water standards. IAC Rule 567 Chapter 43.8(1)
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II. Control Points
A) Construction Permit
All new systems are required to secure a construction permit. The system is required to submit:
An application
An engineering report
Plans and specifications
Source approval and monitoring results
A complete viability assessment (i.e. a self assessment) that includes
A facilities plan (a description of supply sources and facilities, treatment, and
infrastructure)
A management plan (O & M, and management and administration information)
A financial plan (capital and operating costs, identification of revenue sources,
and a contingency plan)
The system is asked to forecast viability for a 20-year period. IDNR can require the submission
of additional information and can deny a permit application for lack of viability.
B) Operation Permit
Once a system completes construction, it must submit an application for an Operation Permit.
IDNR will inspect the system and issue an operation permit to a PWS that is viable, has
submitted an "as-built" certification from a registered professional engineer, and has obtained a
construction permit.
III. Program Evaluation
To track the progress of the new system capacity development program and refine it for the
future, IDNR will compare the compliance rates of systems undergoing the viability assessment
to those that received permits prior to the implementation of the capacity program. If IDNR
determines that the violation could have been prevented through changes to the new systems'
viability determination process, appropriate changes will be incorporated.
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Kansas
I. Basis of Authority
A) Statutory Authority
1) Kansas Statute Annotated (KSA) §65-163(a)(l) requires PWSs to secure a permit from the
Kansas Department of Health and Environment (KDHE) prior to construction and operation of a
PWS:
"(a)(l) No person shall operate a public water supply system within the State without a public
water supply system permit from the Secretary. An application for a public water supply system
permit shall be submitted for review and approval prior to construction and shall include: (A) a
copy of the plans and specifications. . . and (D) such other data and information as required by
the secretary of health and environment."
http://www.ink. org/public/legislative/display_bill.cgi
B) Implementing Authority
Kansas Administrative Regulation §28-15-16(a)(l) requires a proposed system to secure a permit
prior to construction and operation:
"(a)All public water supply systems shall be required to have a permit issued by the secretary.
(l)An application for the public water supply permit shall be submitted for review and approval
before the use of a source of water supply or construction [of a public water supply]."
C) Responsible Agencies
The KDHE has primary implementation, enforcement, and administrative responsibility over all
matters concerning drinking water in Kansas. The KDHE has entered into a MOU with the
Kansas Department of Agriculture, Division of Water Resources (DWR) since the DWR is
responsible for issuing water rights permits. DWR has agreed to notify the KDHE of all
applications for new PWS sources.
II. Control Points
A) Public Water Supply Permit: Authorizing Construction
Water systems must receive approval to construct in order to commence construction of a new
water system. KDHE has developed a two part application. Part one consists of general
questions concerning the source of supply, proposed treatment processes, pumping, and
distribution, and requires the system to submit plans, specifications and maps. Part two is the
TMF capacity assessment. KDHE recognizes that certain managerial and financial information
will be prepared during construction and, therefore, part two contains a list of "capacity elements
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required at the time of application," and "elements of capacity to be developed." A system will
not be granted a Permit to Construct unless it submits:
A five year projection of anticipated revenues and expenditures
A description of the revenue determination process
A description of the system's proposed schedule and process for reviewing water system
revenue requirements
A description of the system's reserve accounts
The establishment, and description, of a debt service reserve fund
An organizational chart
The name, position, and title of those responsible for making decisions
A description of the duties and responsibilities of key personnel
Description of system ownership with contact information of all owners
A copy of all water rights and plan and schedule to obtain additional rights to serve
planned growth
The "elements of capacity to be developed" include:
An operations plan
Provision of a certified operator
Documentation of the relevant training for management and a plan for on-going training
A capital improvement/equipment replacement plan
A description of the budget control and accounting procedures
A water conservation plan
An emergency/disaster response plan
Customer service, personnel, and record keeping policies
A governing body education plan
The permit will contain a condition requiring the submission and approval of any missing
information.
B) Public Water Supply Permit: Initiating Operation
Approval for the PWSs to initiate operation will not be issued until all "elements of capacity to
be developed" listed above have been submitted, reviewed, and approved and a final construction
inspection has been performed by KDHE.
III. Program Evaluation
To track the progress of the new system capacity development program and refine it for the
future, KDHE will use SNC data. KDHE will determine if the system is appearing on the SNC
list because of a short-coming in the new water supply system permit application, review, and
approval process; or whether the appearance on the SNC list is due to a short-coming in the
system's operation and management (e.g. failing to follow the proposed budget). Since the
requirements of the water supply system permit application have not been formally adopted
through the rule making process, KDHE can quickly adjust the new system approval process.
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Kentucky
I. Basis of Authority
A) Statutory Authority
1) Section XII Kentucky Revised Statues (KRS) 151.630 requires the Natural Resources and
Environmental Protection Cabinet (the Cabinet) to administer a capacity program:
"The cabinet shall administer a system capacity program for pubic water systems consistent with
federal law. . . 'System capacity' means the technical, financial, and managerial capacity to
operate a public water system in compliance with the Federal Safe Drinking Water Act. . . .The
cabinet may promulgate administrative regulation as necessary to administer [the program]."
http://162.114.4.13/krs/15 l%2DOO/chapter.htm
2) Section XII KRS 151.634 requires new systems to demonstrate capacity:
"After October 1, 1999, new community or nontransient, noncommunity public water system, as
defined by federal law, shall not be created unless they have system capacity."
http://162.114.4.13/krs/15 l%2DOO/chapter.htm
B) Implementing Authority
Section 401 KAR 8:100 of the proposed draft regulations outlines the procedures that an
applicant must follow for obtaining approval to construct a water system:
"(1)...Before a supplier or potential supplier of water may enter into a financial commitment for
or initiate construction of a new public water system, or increase the capacity of an existing
public water system, he shall submit the preliminary plans to the cabinet...(5) Final plans and
specifications...(a)...shall be prepared and submitted to the cabinet by a professional engineer."
http://www.lrc.state.kv.us/kar/TITLE401.HTM
C) Responsible Authorities
The Cabinet's Division of Water (DOW) is responsible for administering the capacity assurance
program. The Public Service Commission (PSC) issues Certificates of Convenience and
Necessity (CCNs) to new water utilities (i.e. a water system that is not owned by a city) that
demonstrate sufficient TMF capacity.
II. Control Points
A) Plans Approval
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Before entering into a financial commitment or beginning construction, all new PWSs must
submit preliminary plans to DOW in accordance with Kentucky's statutory requirements. The
following information is required to demonstrate capacity:
Technical Capacity
The name of the applicant and owner and the location of the proposed facility
The proposed source of water, quantity available, and the specific location of the intake
or wellhead
A certified laboratory's analysis of the water from the proposed source
An operation plan, including anticipated load, hours of operation, area served, and the
name of the plant operator
Financial and Managerial Capacity
The rates the system intends to charge, or, if the system is not charging rates, how the
system intends to raise sufficient revenue to operate the system
Identification of the cost and financing of the project
A list of outstanding debts and obligations the PWS may have at completion of the
project
The median household income of the area to be served
An estimate of the annual cost to operate the system, and an estimate of annual treatment
and monitoring costs to comply with the SDWA
A description of the proposed day-to-day O & M
An explanation of the water system's management structure
DOW may also request that the system submit further information relating to the management or
financing of the system, including a business plan. DOW's engineering staff reviews the
preliminary plans to ensure that systems are in compliance with DOW's Recommended
Standards and General Design Criteria, which are incorporated by reference into §401 KAR
8:100. Staff with business and management experience assist the engineers, as needed, in
reviewing the financial and managerial capacity of a proposed system. Before construction, the
water system must also submit final plans and specifications. The final plans must be certified
by a professional engineer.
If DOW finds that the system lacks technical, managerial, or financial capacity during either the
preliminary plan review or the final plan review, DOW will not permit the system to begin
construction. DOW instructs PWSs that lack capacity to cooperate with the appropriate water
supply planning council to develop and incorporate a capacity development strategy into the
county water supply plan.
B) Certificate of Convenience and Necessity
New systems that are not owned by a city are required to apply for a certification from the PSC
prior to construction. Approval from the PSC is also required for acquisition or transfer of
ownership of a utility in the PSC's jurisdiction. The Commission grants approval for acquisition
only if the person acquiring the utility has the "financial, technical, and managerial abilities to
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provide reasonable service." Without certification from the PSC, public utilities cannot begin
construction or commence providing services.
III. Program Evaluation
Kentucky implemented its capacity development program for new systems in July of 1998.
Kentucky intends to use the compliance status of the new systems approved after July 1998 as an
indicator of the success of its program.
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Louisiana
I. Basis of Authority
A) Statutory Authority
Louisiana Regular Session Statutes §40:4(A) and 40:5 require the Louisiana Department of
Health and Hospitals (DHH), Office of Public Health (OPH) to ensure that all new systems make
a demonstration of capacity prior to commencement of operation:
"The State Health Officer.... shall include a requirement that all new community water systems
and non-transient noncommunity water systems commencing operation after January 1, 1999,
demonstrate technical, managerial, and financial capacity as defined in such rules and
regulations, to comply with state drinking water regulations in effect on the date of
commencement of operations."
B) Implementing Authority
1) Louisiana Administrative Code §48:V.7713 outlines the requirements a new system must meet
to obtain approval to commence construction and operation:
"All new CWSs and NTNCWSs.... (a) shall be required to submit a business plan... (b) have a
certified operator who holds a certificate in the appropriate class(es) for the population served...
(d) must make arrangements to attend managerial training sessions ... (e) a financial audit will be
conducted to determine the financial capacity of the public water system...."
2) Chapter 12 of the State Sanitary Code Section 12:002-2 requires that any new system wanting
to commence operation must first submit plans and specifications.
C) Responsible Agencies
OPH is the primacy agency for the SDWA in Louisiana. The OPH has jurisdiction over all
matter concerning the SDWA with the exception of the Wellhead Protection and Source Water
Assessment Programs, which are implemented by the Louisiana Department of Environmental
Quality (DEQ). The OPH Drinking Water Revolving Loan Fund (DWRLF) staff review the
financial documentation in the Capacity Program.
II. Control Points
A) Permit to Construct
New systems must submit, and OPH must approve:
Plans and specifications
A business plan that
Identifies the water supply needs of the area
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Identifies alternatives to address those needs
Evaluates the alternatives
Recommends a specific alternative
Identifies how the organization which will implement the alternative will
be structured and operated
Demonstrates that the operation of the proposed alternative will be
fmically viable for at least 5 years.
OPH will issue a permit to construct once it has been determined that the plans and specifications
for a new system are in conformity with all requirements, the business plan has been approved,
and DWRLF has conducted a financial audit.
C) Approval for Operation
Systems must secure written approval to commence operation from OPH. OPH will issue
approval after OPH is satisfied with the TMF capabilities of the system.
III. Program Evaluation
To track the progress of the new system capacity development program and refine it for the
future, OPH will review updated business plans; conduct on-site inspections (sanitary survey)
one year after commencement of operation; review operator certification and management
training; conduct annual reviews and compliance rate monitoring using a database program; and
evaluate monthly reports from Louisiana Rural Water Association (LRWA), technical assistance
providers, circuit riders, and stakeholders.
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Maine
I. Basis of Authority
A) Statutory Authority
22 M.R.S.A. §2612-A gives the Department of Human Services (DHS) specific authority to
ensure new system capacity:
"The commissioner shall adopt rules to ensure that all new community water systems and new
nontransient, noncommunity water systems commencing operation after October 1, 1999,
demonstrate technical, managerial, and financial capacity..."
http://janus.state.me.us/legis/statutes/22/title22sec2612.html
B) Implementing Authority
Maine Drinking Water Rules, 10-144 Chapter 231, §3.E requires all new systems to demonstrate
capacity prior to commencing operation:
"All new community water systems and new non-transient, noncommunity water systems
commencing operation after October 1, 1999, must demonstrate technical, managerial, and
financial capacity with respect to each national primary drinking water regulation in effect, or
likely to be in effect, on the date of commencement of operations."
ftp://ftp.state.me.us/pub/sos/cec/rcn/apa/10/144/144c231 .doc
C) Responsible Agencies
DHS's Drinking Water Program will implement Maine's capacity development program. DHS
has advised the Public Utilities Commission, the Maine Manufactured Housing Board, and the
Department of Education as to the scope of the new system capacity program. These agencies
will thus be attuned to DHS's capacity demonstration requirements in their own reviews of
proposed systems.
II. Control Points
A) General Operations Permit
New systems are required to secure a general operations permit before commencing operations.
Required documentation varies depending on whether the source of supply is a ground water or
surface water source. Generally, proposed systems must submit:
Technical Capacity
Source and infrastructure plans and specifications
Information on potential contamination sources
Water quality and quantity data
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Demonstration of compliance with State operator certification requirements
Managerial Capacity
A management plan identifying ownership, contractors, responsibilities of staff members,
decision-making processes, record keeping procedures, and other relevant information
Training and education of the superintendent, general manager, governing board,
commission, and selectmen
Financial Capacity
A water system financial plan, including a 3-year budget, a description of resources and
reserve accounts, and identification of financial decision-making procedures. (Systems
may use rate case filings from Maine's Public Utilities Commission)
DHS will not issue a general operation permit until new water system applicants demonstrate
sufficient capacity to operate their systems in compliance with applicable State and federal
regulations on a sustained basis.
III. Program Evaluation
During the first year of Maine's new system capacity demonstration program, the following
information will be monitored: the number of new system applicants; source and system data;
completeness of submissions/requests for additional information; turnaround time for capacity
review; capacity review findings; compliance rates; and, applicant feedback, observations,
comments, etc. DHS will revise the new system capacity development program as necessary.
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Maryland
I. Basis of Authority
A) Statutory Authority
Maryland Annotated Code, Environment Article §9-417 requires new systems to demonstrate
TMF capacity to the Maryland Department of Environment (MDE) prior to commencing
operation:
"Each new community and nontransient noncommunity water supply system that commences
operation after October 1, 1999, shall demonstrate to the Department that it has technical,
managerial, and financial capacity to operate the proposed water system..."
http://mgasearch.state.md.us/
B) Implementing Authority
The Code of Maryland Regulations (COMAR) §26.04.01.36(C) requires new water supplies to
demonstrate TMF capacity before MDE will issue a permit:
"Before a permit may be issued... any new major water supply system permit applicant shall
demonstrate that it has the technical, financial, and managerial capacity to operate the system as
required by COMAR §26.04.01.36."
http://209.15.49.5/newsearch.htm
C) Responsible Agency
The MDE has been delegated the authority to develop, implement, and enforce a program to
ensure capacity in new CWSs and new NTNCWSs.
II. Control Points
A) Permit to Construct
Prior to commencing construction, a water system must secure a permit to construct from MDE.
The permit process requires systems to submit:
A Technical Plan that includes the submission of plans and specifications prepared by a
Maryland certified Professional Engineer, and a description of water sources and
treatment capabilities
A Managerial Plan that includes identification of a person(s) responsible for management
of the system and operators certified by the Maryland Board of Waterworks; the
submission of standard operating procedures; and, an Emergency Plan of Operation
A Financial Management Plan that includes an identification of O & M costs, future
capital improvements, revenues, rate structure, potential emergency capital expenses and
sources of funding.
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B) As-Constructed Plans
After completion of construction, systems are required to submit a copy of as-built plans or a
certification satisfactory to the Department that the work was built in accordance with the
original plans approved by the Department.
III. Program Evaluation
To track the progress of the new system capacity development program and refine it for the
future, the MDE will track new system's monitoring compliance rates using the SDWIS
database; and, annually review the construction permit application records to ensure that all
requirements of the capacity development plan are being implemented.
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Massachusetts
I. Basis of Authority
A) Statutory Authority
Massachusetts General Law (MGL).c. 111, s. 160 gives the Massachusetts Department of
Environmental Protection (DEP) broad authority to ensure the delivery of safe water to all PWS
consumers:
"The department...may make rules and regulations and issue such orders as...may be necessary to
...ensure the delivery of a fit and pure water supply to all consumers."
http://www.magnet.state.ma.us/legis/laws/mgl/l 1 l-160.htm
B) Implementing Authority
Section 310 Code of Massachusetts 22.04 requires systems to secure written approval for
construction and operation through the demonstration of TMF capacity:
"No person shall construct, substantially modify, or operate a public water system without the
prior written approval of the Department. The Department will not grant such approval
unless:...(c) the person(s) who will own and operate the system demonstrates...it has the
technical, managerial, and financial resources to operate and maintain the system in a reliable
manner and provide continuous adequate service to consumers."
C) Responsible Agency
DEP is responsible for implementing and enforcing the State's drinking water program including
the program to ensure capacity in new CWSs and new NTNCWSs.
II. Control Points
A) Source Approval Process
New systems must apply to DEP for source approval. The system must secure a series of siting,
pumping, and withdrawal permits and submit a Water Supply Business Plan (WSBP) to DEP.
DEP uses the information provided in the WSBP to evaluate a system's TMF capacity. The
WSBP must address:
Administration including ownership and management, system name and background, and
management structure and policies
Basic planning such as water use, projected land use, future population, and water
demand
Source, treatment, storage, distribution, and possible interconnections to other PWSs
Source water protection
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O & M including evidence of a certified operator, system operations and control,
monitoring program, emergency response plan, cross-connection control program, water
conservation plan, customer complaint response program, and record keeping and
reporting
Finances including rate structure, debt service, operating expenses, revenues, and a
capital improvement plan
DEP's regional capacity development staff person reviews and comments on the system's
proposed WSBP and may request more information. If the WSBP meets all applicable
requirements, DEP will review the more specific technical information required for each of the
source approval permits. Once DEP has issued the system a complete set of source approval
permits, the system may begin construction.
III. Program Evaluation
DEP's will begin its annual evaluation of its capacity development program for new systems by
comparing the number of new systems that obtain DEP approval to the total number of systems
that applied for approval. DEP will verify individual systems' capacity through its
Comprehensive Compliance Evaluation (CCE ) (sanitary survey) inspection and enforcement
process.
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Michigan
I. Basis of Authority
A) Statutory Authority
The Michigan Compiled Law (Michigan Safe Drinking Water Act, 1976 PA 399, as amended
(Act 399)) §325.1003b allows the department to conduct a capacity assessment at a community
supply, a nontransient noncommunity water supply, or a public water supply applying to the
Department of Environmental Quality (MDEQ) for assistance. The Michigan Safe Drinking
Water Act, Act 399, §325.325.1004 requires the Michigan Department of Environmental Quality
(MDEQ) to conduct capacity assessments:
"(2) The department shall conduct a capacity assessment for a proposed community supply or
nontransient noncommunity water supply and determine if the system has the technical, financial,
and managerial capacity to meet all requirements of this act and the rules promulgated under this
act, on the date of commencement of operations... The Department may deny a permit... if the
capacity assessment shows that the proposed system does not have adequate technical, financial
or managerial capacity.."
http://www.deq.state.mi.us/dwr/FOS/Topics%20&%20Documents/Rules%20&%20Regulations/
Act%20399/act%20399.html#325.1004
B) Implementing Authority
Michigan Administrative Code (MAC) R 325.11305 describes the plans and specification
requirements and allows MDEQ to request additional information.
"If the department determines that plans and specification or other pertinent information are
incomplete or inadequate, it. . . may request the submission of revised plans and specifications or
other pertinent information."
http ://www. state, mi .us/orr/
C) Responsible Agency
MDEQ implements and enforces the program for ensuring capacity in new CWSs and new
NTNCWSs in the State of Michigan. The MDEQ has delegated authority as authorized in MAC
R325.11305(3) to the 43 local health departments across the State to conduct the drinking water
program including capacity development for noncommunity water systems in Michigan's 83
counties.
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II. Control Points
A) Construction Permit
Before commencing operation, a system must submist a capacity plan. A capacity plan may
include plans and specifications, a financial plan with a 5-year budget, and an operations plan
that demonstrates adequate IMF capacity. Proposed systems8 are required to secure a
construction permit from MDEQ or from the local health department for noncommunity water
systems. Michigan issues construction permits after approval of plans and specifications, but
allows systems to begin construction before submitting the financial plan or the operations plan;
however, these two components must be submitted at or before a final inspection. Approval to
commence operation is given within 30 days of satisfactory final inspection and approval of
financial and operations plans.
The Capacity Plan must include:
Technical Capacity (must submit prior to receiving a permit to construct)
A project summary
Plans and specifications
Design calculations
Chemical analyses
A site plan
A study of hydrogeologic conditions for groundwater sources or a sanitary survey (Source
Water Quality Report)
An analysis of reliability
Managerial Capacity (must submit at or prior to final inspection)
A description of the ownership and its organization
A commitment to complete a contingency plan
A description of the bacteriological monitoring program (sampling site plan)
An acknowledgment of monitoring costs and requirements
A plan for providing legal doctrines, including policies, ordinances, rules, resolutions or
practices
A cross connection control program
A copy of standard specifications
Financial Capacity
An acknowledgment of the annual water supply fee
An annual budget plan for a minimum of 5 years
Documentation of funding
Comparison of alternatives to developing the new system
MDEQ has developed policies and procedures regarding "New System Capacity Assessment" for both
CWSs and NTNCWSs. A proposed NTNCWS has to secure a construction permit and final approval but can
submit fewer documents to demonstrate adequate TMF capacity.
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Privately owned systems must also obtain a resolution from a local government unit indicating
their refusal to own or operate the proposed system, submit documentation of a cash escrow fund
for emergency repairs, and obtain all necessary easements.
When MDEQ has reviewed all of the information submitted to demonstrate adequate technical
capacity, and is satisfied with the proposal, the Department may issue a construction permit.
Managerial and financial capacity information may be submitted with the plans and
specifications, or may be completed and compiled during construction and submitted at final
inspection prior to receiving approval to commence operation. MDEQ can deny a permit
application or request additional information if the plans and specifications or the Capacity Plan
are incomplete or inadequate.
B) Final Inspection and Approval to Commence Operation
Prior to commencing operation, systems must schedule a Final Inspection with MDEQ. The
Final Inspection consists of:
An on-site inspection of facilities to see if they have been constructed in accordance with
the approved plans and specifications
A review of any leases or easements necessary for the operation and maintenance of the
system
A review of additional information that was not submitted with the plans and
specifications, including an operations plan (sampling site plan, a contingency plan, cross
connection control program, etc.), and a five-year budget plan
The system is prohibited from operating until MDEQ has conducted the Final Inspection and has
issued an approval to commence operation.
III. Program Evaluation
Success of the capacity development program is measure by compliance with Act 399. Before a
system commences operation, MDEQ tracks the submission of documents and information
needed to demonstrate TMF capacity in a New System Tracking Database. After the new system
commences operation, compliance with Act 399 is tracked in various compliance information
systems. Comparing compliance rates of new systems to systems that began operations before
October 1, 1999 will be one indicator of the success of capacity development.
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Minnesota
I. Basis of Authority
A) Statutory Authority
Minnesota Statutes §144.383 gives the Department of Health (DOH) specific authority to
approve documentation demonstrating capacity in proposed CWSs and NTNCWSs:
"In order to insure safe drinking water in all public water supplies, the commissioner has the
following powers: (a) To approve the site, design, and construction and alteration of all public
water supplies and, for community and nontransient noncommunity water systems... to approve
documentation that demonstrates the technical, managerial, and financial capacity of those
systems to comply with rules adopted under this section;..."
http://www.revisor.leg.state.mn.us/stats/144/383.html
B) Implementing Authority
Minnesota Rule 4720.0012 Subpart 1 prohibits the operation of water systems until the DOH has
approved documentation demonstrating TMF capacity:
"New water systems shall not commence operation until the commissioner approves plans and
specifications ... and approves documentation submitted under this part that demonstrates a
system's technical, managerial, and financial capacities."
http://www.revisor.leg.state.mn.us/arule/4720/0012.html
C) Responsible Agency
The DOH implements the capacity development program for the State of Minnesota.
Responsibility is assigned to the Drinking Water Protection Section.
NTNCWSs proposing to use groundwater as a source of supply are not required to submit
engineering plans and specifications as part of the plan approval process. Instead, DOH requires
these systems to submit well inspection reports to the Well Management Section (WM) of DOH.
The Drinking Water Protection (DWP) and the Well Management (WM) sections have an
Memorandum of Agreement (MO A) by which DWP receives inspection reports from WM for all
new wells in Minnesota that serve public water systems.
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II. Control Points
A) Plan Approval
New systems must secure Plan Approval before any construction, installation, alteration,
extension, or use of a new water system or existing system. Documentation required for the Plan
Approval includes:
Technical Capacity
Plans and specifications (except NCWSs)
Plumbing plans and specifications review
A well inspection report
Source water/wellhead protection plans
A well construction report
Managerial Capacity
Identification of system owner and operator
A certified operator agreement
Contact information for the system owner, manager, and chief executive officer
Financial Capacity
Financial certification of ability to meet costs
Certification by the owner, chief financial officer, or chief executive officer that actual
and potential costs of operating and maintaining a PWS have been reviewed
B) Exception for NTNCWSs
NTNCWSs proposing to use groundwater as a source of supply are not required to submit
engineering plans and specifications as part of the plan approval process. Instead, DOH requires
these systems to submit well inspection reports to the Well Management Section (WM) of DOH.
The Drinking Water Protection (DWP) and the Well Management (WM) sections have an
Memorandum of Agreement (MO A) by which DWP receives inspection reports from WM for all
new wells in Minnesota that serve public water systems.
III. Program Evaluation
Minnesota will evaluate their program for ensuring capacity in new systems through the
Minnesota Drinking Water Inventory System (MDWIS) database. MDWIS tracks general
system, source, and facility information, microbiological data, turbidity/enhanced surface water
treatment rule information, violations, chemical data, lead and copper data, laboratory
certification information, and operator certification. MDWIS is linked to databases in DOH's
Source Water Protection and Engineering Information Units, and can be queried for information
on source water assessment, wellhead protection, date when the capacity review was completed,
capacity review findings, construction inspection date and findings, date of approval issue, and
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date of system start-up. To evaluate success, the database will be queried for compliance. If any
violations occur, DOH will consider changes to the new system capacity program.
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Mississippi
I. Basis of Authority
A) Statutory Authority
Mississippi Code Section 41-26-8(2) prohibits the construction of a CWS or NTNCWS until the
Mississippi State Department of Health (MSDH) approves the system's plans and receives
certification of the systems' managerial and financial capacity from the Public Utilities Staff
(PUS):
"(a) No person shall construct or change any community public water system or non-transient
non-community public water system until the plans for that construction or change have been
submitted to and approved by the director... (f) ...the executive director of the public utilities staff
shall certify in writing to the director the financial and managerial viability of the system... The
director [of MSDH] shall not approve the construction until that certification is received."
B) Implementing Authority
The Mississippi State Board of Health, Environmental Regulations.
C) Responsible Agencies
MSDH retains the authority to implement and enforce the program for ensuring capacity in new
CWSs and new NTNCWSs. Before MSDH can approve a new system's construction, the
director must receive certification from the PUS that the system has managerial and financial
capacity.
II. Control Points
1) Certificate of Public Convenience and Necessity
Prior to construction, new water systems must submit a "Petition for CPCN to Provide Initial
Water Service" to PUS. This document consists of 11 pages of information detailing the
system's managerial and financial capacity, including an Income, Expense, and Cash Flow form;
a balance sheet; a Sources and Uses of Funds form; and a Cost Justification for Connection Fees
form.
If PUS determines that the system has adequate managerial and financial capacity, the director
certifies this in writing to the director of the MSDH. MSDH cannot issue a construction
approval for a new system until it has received this certification, and thus, systems without
managerial or financial capacity will not be permitted to begin construction.
2) Construction Approval
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Systems are required to submit plans and specifications and an O & M plan. The system's
technical specifications for sources, treatment facilities, storage facilities, and distribution
systems must adhere to MSDH's Minimum Engineering Design Guidelines for Public Water
Systems. If MDSH staff engineers are satisfied, and PUS has issued a CPCN, MDSH will issue a
construction approval.
III. Program Evaluation
MSDH tracks the compliance rate of the CWSs and NTNCWSs that began operation after
August 8, 1998. This rate is compared to the compliance rate of the same types of systems
permitted prior to August 8, 1998.
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Missouri
I. Basis of Authority
A) Statutory Authority
Missouri Revised Statutes §640.115.3 requires systems to show a continuing operating authority
that has TMF capacity in order to receive a Construction Authorization from the Department of
Natural Resources (DNR) Safe Drinking Water Commission (SDWC):
"Permit applicants shall show, as part of their application, that permanent organization exists
which will serve as the continuing operating authority for the management, operation,
replacement, maintenance and modernization of the facility. Such continuing operating authority
for all community water systems and nontransient, noncommunity water systems commencing
operation after October 1, 1999, shall be required to have and maintain the managerial, technical,
and financial capacity."
http://www.moga. state.mo.us/statutes/C600-699/6400115 .htm
B)Implementing Authority
The 'Rules of the Department of Natural Resources Public Drinking Water Program' (§10 CSR
60-3.030(2)(b)) establish minimum TMF capacity requirements and prohibit the construction of
systems without written authorization from DNR/SDWC:
"Public water systems commencing operation after October 1, 1999, shall show as part of their
application that the public water system will meet the minimum technical, managerial, and
financial requirements of this rule. The department will not issue a written construction
authorization until it determines that the proposed water system will meet the requirements of
this rule."
http://mosl.sos.state.mo.us/csr/10csr/10c60-3.pdf
C) Responsible Agencies
The Missouri DNR/SDWC has primary implementation, enforcement, and administrative
jurisdiction over all matters concerning PWSs. The Divsion of Geology and Land Survey
(DGLS) implements and enforces will driller regulations and notifies SDWC of all new well
construction.
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II. Control Points
A) Construction Authorization
A system must secure a Construction Authorization from MDNR prior to construction. The
systems must submit:
An application
Engineering report approval
Plans and Specifications approval
Documentation showing compliance with Continuing Operating Authority (COA) and
TMF requirements, and the Well Driller regulations
MDNR will conduct an on-site survey and the Division of Geology with evaluate all new wells.
TMF requirements consist of the following items, which are reviewed by the MDNR before
issuing a Construction Authorization:
Technical Capacity
Description of proposed service areas
Extent of the water system, including maps, provisions for extending system, and
appraisal of future service requirements
Assessment of alternatives to construction
Description of proposed source quality, capacity, protection, and production
Description of treatment process proposal and waste disposal
Description of project site, including considerations, potential pollution sources, and
location with respect to other establishments
Water use data
Future extensions for needs
Flow requirements
Proper operator certification
The existence of a permanent organization for the continuous operation, management,
and maintenance of the facility
Updated distribution map
Planning for future regulatory impacts
Managerial Capacity
Organizational charts
Designated customer complaint person
Written rate structure and service fees
Public meetings with advanced notice to customers
Designated compliance person
Planning for future regulatory impacts
Financial Capacity
Standard accounting principles and practices
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System for fee collection
Annual budget with revenues and expenditures
5-year budget and capital plan, with future regulatory impacts, and estimated annual cost
of operation
Annual revenues must cover costs
Operating reserve = 1/10 of annual O & M budget
Emergency equipment replacement reserve equal or greater than the most expensive
mechanical equipment item
Debt reserve equal to or greater than that required in bonding agreement
Planning for future regulatory impacts
B) Permit to Dispense Water to the Public
A Permit to Dispense Water to the Public is required before a system can begin operation. The
system must submit the following items to receive this permit:
Application for Permit to Dispense
Completed IMF Assessment Tool (re-evaluates the capacity items that were reviewed
during the Authorization to Construct phase) and proof of compliance with TMF
requirements
Emergency operating plan
Proof of ability to meet applicable Maximum Contaminant Levels (MCLs)
Provide reliable water system operation
Proof of COA and proof of compliance with COA requirements
Final Construction Approval, including a letter signed by professional engineer when
construction is completed, certifying that all activity was carried out in accordance with
approved plans and specifications
With the issuance of a Permit to Dispense Water to the Public, a system may begin operation.
III. Program Evaluation
DNR will incorporate the compliance status of new CWSs and new NTNCWSs into an already
existing electronic tracking system. The system will track inspection dates, compliance status,
and the number and type of violations. From this system and inspection reports, DNR will
determine the reason for a system's non-compliance and to the extent practicable and necessary,
will make changes to the capacity development program.
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Montana
I. Basis of Authority
A) Statutory Authority
Montana Code Annotated (MCA) §75-6-103 gives the Board of Environmental Review (BER)
broad statutory authority to supervise all waters used as PWSs:
"(1) The board has general supervision over all State waters that are directly or indirectly being
used by a person for a public water supply system or domestic purposes or as a source of ice. (2)
The board shall, subject to the provisions of §75-6-103, adopt rules and standards concerning: ...
(e) the siting, construction, operation, and modification of a public water supply system ...; (f) the
review of financial viability of a proposed public water supply system ..., as necessary to ensure
the capability of the system to meet the requirements of this part; ... (k) any other requirement
necessary for the protection of public health as described in this part."
http://statedocs.msl.state.mt.us/cgi-bin/om_isapi.dll?clientID=510&infobase=mca_99.nfo&softp
age=Browse_Frame_Pg
B) Implementing Authority
Administrative Rules of Montana (ARM) §17.38.101(4) prohibits construction of PWSs without
Montana Department of Environmental Quality (MDEQ) approval:
"Before commencing the construction, alteration or extension of a public water supply system or
wastewater system, the applicant shall submit a design report along with the necessary plans and
specifications for the system to the department or a delegated division of local government for its
review and written approval..."
http://www.deq.state.mt.us/dir/legal/titlel7.htm
Montana uses DEQs, or design circulars, to provide specific standards for new system design
criteria, including capacity. These circulars are referenced by ARM Title 17, Chapter 38, Sub-
Chapter 1. DEQ 1 includes the standards for CWSs and DEQ 3 includes the standards for
NCWSs.
C) Responsible Agencies
The BER is authorized to adopt rules and standards for PWSs in the state. The MDEQ acts as
the administrative arm of the BER and implements and enforces the rules that the Board adopts.
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II. Control Points
A) Design Report Approval
Systems must submit, and MDEQ must approve, plans and specifications and a Design Report
before construction of the new system may begin. The Design Report must include:
Managerial Capacity:
Documentation of an owner that is responsible for ownership, O & M, and perpetuation
of the system
Organizational charts
Plans for hiring a certified operator
System or plan for maintaining records
Copies of legal documents (such as By-Laws, Articles of Incorporation, etc.)
Copies of documents describing responsibilities and duties
Policies on addressing problems such as customer complaints or violations
An O & M Manual explaining procedures, staffing requirements, safety and emergency
program documentation, and manufacturer's manuals
Financial Capacity:
5 year system budget
O & M rates and capital improvement/replacement rates
Documentation that customers will be metered
Development fee
Description of owner's access to capital
Budgetary controls and audit schedule
Financial plan showing how improvements will follow submitted plans and specifications
To evaluate capacity, MDEQ will consider whether the system:
Maintains compliance with drinking water standards
Allows effective operation of the system in accordance with approved plans and
specifications
Supplies adequate water, both in terms of quantity and quality
Complies with operating conditions presented in the engineer's report
Efficient operation of the system
Adequate control of and accountability for the system by the owner, manager, and
operator
Adequate resources and accountability for regulatory compliance by the owner, manager,
and operator
Dissemination of appropriate information to all customers and regulatory agencies
Revenues match or exceed expenses
Adequate funds will be maintained for replacement of equipment
Appropriate reserve accounts will be maintained
The budget will be controlled, preferably by audits every 3 to 5 years
The 5-year cash flow is sufficient to properly operate the system
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All proposed improvements will be constructed completely and in accordance with the
approved plans and specifications
If ownership or the plans and specifications change after approval, the MDEQ must be notified.
MDEQ may set conditions of approval. Plans and Specifications must be prepared by a
professional engineer, and must be designed to protect public health, in compliance with the
Montana Public Water Supplies, Distribution and Treatment Act, Title 75 (6) and ARM Title 17
B) Letter of Accordance
Before a new system can begin operation, applicants must send a letter to MDEQ saying that the
system was constructed in accordance with approved plans and specifications submitted with the
Design Report. As-built drawings must be sent to the MDEQ within 90 days of commencement
of operation.
III. Program Evaluation
MDEQ will track new water systems throughout the approval process and during operation. An
existing database can track contact information and characteristics of a system as well as
sampling results and historical information. The database will also include records of
certification and assessments (i.e. source and groundwater assessments). The database will be
routinely queried to ensure that each system has met all capacity development requirements.
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Nebraska
I. Basis of Authority
A) Statutory Authority
Nebraska Statute §71-5305.01 delegates specific authority to the Department of Health and
Human Services Regulation and Licensure Divsion (DHH), to implement rules and regulations
that will ensure all new CWSs and NTNCWSs demonstrate IMF capacity as defined by the
Nebraska Safe Drinking Water Act:
"All new community water systems and new nontransient noncommunity water systems
commencing operation after October 1, 1999, shall demonstrate technical, managerial, and
financial capacity to operate under the Nebraska Safe Drinking Water Act. The Director of
Regulation and Licensure may adopt and promulgate rules and regulations to determine
demonstration requirements for technical, managerial, and financial capacity of community water
systems."
http://statutes.unicam. state.ne.us/lpBin20/lpext.dll?f=templates&fn=main-j.htm&2.0
B)Implementing Authority
Nebraska Administrative Code §179 NAC 2(015.04D) requires all new CWSs and NTNCWSs to
demonstrate technical, financial, and managerial capacity prior to obtaining a permit to operate
from DHH:
"New public water systems applying for a permit to operate the system after October 1, 1999,
shall show, as part of their application that the public water supply system will meet the
minimum technical, managerial, and financial capacity requirements of this rule. No permit to
operate the system will be issued until the requirements of this section and section 009, Permit
for Operating a Public Water System, are met."
http://www.hhs.state.ne.us/reg/tl79.htm
C) Responsible Agencies
The Nebraska DHH has primary implementation, enforcement, and administrative authority over
all matters concerning PWSs.
II. Control Points
A) Approval of Plans and Specifications to Construct a New Water System
Before construction begins, a system must first submit plans and specifications to DHH. Plans
and specifications must include a demonstration of TMF capacity. The system must:
Demonstrate conformance with siting, design, and construction standards
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Arrange for the services of a certified operator
Provide a current water system map
Install service meters on each service connection
Estimate construction, and O & M costs
Describe water rate or revenue structures
Identify the legal owner of the system and any plans for transfer of ownership
Provide the name, address, and telephone number of the person(s), other than the
operator, designated and authorized to respond to compliance issues
Provide the name, address, and phone number of the system operator
Describe staffing and the chain of command of the person(s) responsible for the system's
interaction with customers, regulators, and others
B) Permit to Operate the System
Upon completion of construction, the system must submit an application for a Permit to Operate.
While not specified in the capacity development requirements, all CWSs and NTNCWSs are
required to have emergency operating procedures and O & M procedures. DHH will perform a
final inspection and issue a Permit if all the requirements of technical, managerial, and financial
capacity and emergency operating and O & M procedures have been met.
III. Program Evaluation
DHH will track the effectiveness of the program over a period of years to determine if the
indicators of capacity, used in the Plan Approval and Permit to Operated processes, are in fact
reliable predictors of a system's ability to comply. DHH will examine as many factors as
possible to develop a sound assessment of the program and to make appropriate changes. The
Department will also use SDWIS to track the compliance status of the system. The current
compliance rate will be compared to previous rates to determine if the capacity requirements are
effective.
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Nevada
I. Basis of Authority
A) Statutory Authority
17 Nevada Revised Statutes (NRS) 445A.860 gives the State Board of Health specific authority
to adopt regulations to ensure capacity in new water systems:
"The state board of health:...4. May adopt such other regulations as may be necessary to ensure
that a community water system or nontransient water system that commences operation on or
after October 1, 1999, demonstrates the technical capability, managerial capability and financial
capability to comply with 40 C.F.R. Part 141."
http://www.leg.state.nv.us/70th/Bills/AB/AB134 EN.html
B) Implementing Authority
1) Chapter 445A Nevada Administrative Code (NAC) Sec. 13.2 requires the State Health
Division to approve a plan for a new system prior to issuing the system an operating permit:
"The health division shall not issue a permit to a supplier of water to operate a community water
system or nontransient water system...unless it has approved a plan for the system pursuant to the
provisions of sections 2 to 18, inclusive of this regulation."
2) Chapter 445A NAC Sec. 14 outlines what is required to be included in the plan:
"A plan...must include:...2. An analysis of the managerial capability of the system...4. An
analysis of the technical capability of the system. ..8. A demonstration of financial capability of
the system."
http://www.leg.state.nv.us/NAC/nac-445A.html
C) Responsible Authorities
The Bureau of Health Protection Services (BHPS) of the State Health Division is solely
responsible for administering, implementing, and enforcing, the program for ensuring capacity in
new CWSs and new NTNCWSs.
II. Control Points
A) Operating Permit
New systems may not begin operating until they have received an operating permit from BHPS.
Applicants must submit:
Technical Capacity
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Standards for the design, construction, operation, and maintenance of the system that
comply with the provisions of NAC 445A
Source water quality data
Description and analysis of the inventory of the system
Water conservation plan
Estimated amount of water required for the system for 5 years after operation begins
Demonstration of the ownership or right to appropriate the estimated amount of water
Effect if a nonresidential user decides not to continue to use the services of the system
Plan for responding to any shortage of water that may occur within 5 years
Managerial Capacity
A legal description of the proposed area of service for the system
Cross-connection control program
Emergency response plan
O & M manual
Ownership and operator information
Operator classification
Organization, bylaws, and policies of the system
Billing and customer correspondence information
Description of employee responsibilities, including regulatory responsibilities
Plan to operate the system if it is declared bankrupt or is placed in receivership
Financial Capacity
A program of capital improvements for the system, including a schedule, a priority
ranking, and the source of money or financing required for each of the projects
5-year operating budget that includes a demonstration of the ability of the system to
expend money for emergency improvements, capital improvements, and normal O & M
of the system
Evaluation of rate structure and connection fees
Evaluation of total cost of providing service to the customers
Evaluation of the manner in which the total cost will be recovered
Evaluation of the stability of the cash flow of the system
Privately owned systems also need local government approval to operate. When BHPS has
reviewed and approved the above information and all permit application and fee requirements
have been met, BHPS will issue the permit to operate.
III. Program Evaluation
Nevada will evaluate the implementation and ongoing effectiveness of its new system capacity
development program by tracking the number of new PWS permits processed with the number
and type of compliance issues that develop.
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New Hampshire
I. Basis of Authority
A) Statutory Authority
New Hampshire Revised Statutes Annotated (RSA) §485:3 authorizes the Commissioner of the
Department of Environmental Services (DES) to adopt rules to ensure the long-term viability of
new systems:
"The commissioner may adopt rules to ensure long-term viability of public drinking water
systems as required by ...SDWA."
http://199.92.250.14/rsa/50/INDEX.HTMtfChapter485
B) Implementing Authority
Env-Ws §370.04 requires systems to meet capacity requirements before DES will issue an
approval:
"A community water system and nontransient noncommunity public water system shall meet the
requirements of Env-Ws 371 [capacity requirements described below] before such system
obtains design approval."
http://www.state.nh.us/gencourt/ols/rules/env-ws.html
C) Responsible Agency
The DES Water Supply Engineering Bureau (WSEB) implements New Hampshire's program for
ensuring capacity in new CWSs and new NTNCWSs.
II. Control Points
A) Approval to Construct
A system cannot begin construction without obtaining an Approval to Construct from DES. The
Approval process has a number of steps including:
Conceptual approval. Systems are required to submit documentation showing an intent to
design and construct a PWS in a particular location for a particular type of use. DES uses
the conceptual approval process to prevent the creation of stand-alone systems if another
alternative water supply exists.
Approval of a Preliminary Business Plan including managerial and financial information:
Expected costs, including those for capital repayment and SDWA compliance
Water system ownership
A method for assuring payment for water service
Procedures for ensuring compliance with SDWA
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A method for maintaining customer connection to the PWS
Compliance with operator certification requirements
Organizational rules, staff responsibilities, and an organizational chart
An emergency response plan
Expected revenues
A proposed fee schedule
Construction costs and other financial information, including a detailed budget
The useful life of facilities and equipment
Five-year financial projection
Source approval
Detailed Engineering report
Systems submit both a preliminary Business Plan and Engineering report. Once the system
completes source development, the system submits any revisions to the Business Plan including
updated treatment and distribution costs. If the system has sufficient managerial and financial
capacity, DES will re-evaluate the system's technical capacity by reviewing its final engineering
design. DES will issue Construction Approval if the system has demonstrated adequate IMF
capacity.
C) Operational Approval
DES staff conduct field inspections before granting approvals to operate. Approval is contingent
upon the receipt of as-built drawings and a finalized business plan. The final business plan must,
among other things, integrate final construction costs into the water rate projections.
III. Program Evaluation
To evaluate the program, DES will compare actual capital and operational costs with estimates
given in the system's five year business plan; interview water system owners for feedback; and
track compliance of new systems that have undergone the capacity review. DES plans to use the
results of these inquiries to strengthen their program.
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New Jersey
I. Basis of Authority
A) Statutory Authority
Broad statutory authority for the New Jersey Department of Environmental Protection (NJDEP)
to assure the capacity of all new PWSs is found in New Jersey Statutes Annotated NJSA
§58:12A-4.c.(5)(b):
"The Commissioner shall adopt and implement adequate procedures, promulgate appropriate
rules and regulations, and issue such orders as are necessary . . . [to] assure that all new public
water systems have adequate technical, managerial and financial capacity to comply with the
provisions of the "Safe Drinking Water Act," P.L.1977, c.224 (C.58:12A-1 et seq.)"
B) Implementing Authority
New Jersey Administrative Code (NJAC)7:10-11.5 requires systems to secure a permit from
NJDEP prior to construction and to comply with the IMF capacity requirements:
"No person shall construct or modify a public community water system prior to obtaining a
permit from the Department pursuant to this section....!. All applications for a permit to construct
or operate a new public community water system shall comply with the requirements set forth at
N.J.A.C. 7:10-13.3 [demonstration of technical capacity for community water systems]
and 13.4 [demonstration of managerial and financial capacity for community water systems]."
C) Responsible Agencies
NJDEP is the lead agency responsible for implementing the regulations and policies governing
capacity development in New Jersey. NJAC 7:10-13.7 requires NJDEP to consult with the
Division of Local Government Services and the Bureau of Public Utilities (regulates county,
State, and federal facilities) when making TMF capacity determinations. NTNCWSs must obtain
a construction certification from the County Environmental Health Act (CEHA) agency or local
health department in non-CEHA delegated counties.
II. Control Points
A) Construction permit
In order to receive a construction permit, CWSs must submit, and NJDEP must approve:
A complete description of the sources, treatment, storage, and distribution infrastructure
of the system
Design plan and specifications
Proof and a description of any land leases or easements
An infrastructure replacement plan
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Description of compliance with operator certification requirements
Evaluation of alternatives to developing a stand-alone system
Approved source water quality
Water pumping test results
Cross-connection control plan
NTNCWSs and Governmentally owned facilities have similar requirements.
B) Operating permit
No person shall commence operation of a new CWS prior to obtaining a permit to operate from
NJDEP. Systems must submit a written application for a permit and include a description of the
as-built water system. Systems must also submit financial and managerial plans including:
Information concerning the organizational structure of the system
An emergency management plan
A description of system policies that define the conditions under which water service is
provided.
A financial plan including:
A 5-year budget that includes revenues, operating expenses, reserves, and capital
improvements
Identification of reserve accounts for emergency funding and equipment
replacement
A capital improvement plan
A description of the budget and expenditure control procedures
Certification that the system is not in arrears on existing debt
A current credit report
III. Program Evaluation
New Jersey will continuously evaluate its program using data from the State permit applications
database and SDWA compliance data. The State will expand an existing database that contains
information on all permit applications received and the determinations on each application, to
include capacity development determinations. In addition, existing databases containing
information on PWS SDWA compliance will be studied for compliance trends in new water
systems before and after the implementation of a program to ensure capacity in new systems.
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New Mexico
I. Basis of Authority
A) Statutory Authority
New Mexico Statutes Annotated §74-1-7 gives the New Mexico Environment Department
(NMED) specific authority to promulgate rules and regulations necessary to develop and
implement a capacity development program:
"The Department shall "maintain, develop, and enforce regulations and standards in the
following areas: ...water supply, including implementing a capacity development program to
assist water systems in acquiring and maintaining technical, managerial and financial capacity in
accordance with §1420 of the federal Safe Drinking Water Act...."
http://www.lexislawpublishing.com/sdCGI-BIN/om_isapi.dll?clientID=485&infobase=nmsal97
8.NFO&softpage=browse_frame_pg
B) Implementing Authority
20 New Mexico Administrative Code (NMAC) 7.1V502(D)(2) & (6) require all persons seeking
approval for a PWS to submit a written application that includes IMF information:
"Any person seeking approval for a public water supply system project shall do so by submitting
a written application with the Department. The application shall: . . . (2)Include 2 sets of
complete plans and specifications. . .(6)For all new CWSs and new NTNCWSs commencing
operation after October 1, 1999, include a capacity development analysis documenting ownership
accountability, staffing and organization, revenue sufficiency, credit worthiness, and fiscal
management and controls."
http://www.nmenv.state.nm.us/
C) Responsible Agencies
NMED is responsible for implementing the drinking water program. The New Mexico Office of
the State Engineer (NM OSE) approves water rights and issues well drilling permits. NMED has
entered into a Letter of Understanding with NM OSE so that NMED can use information
submitted by the systems.
The New Mexico Finance Authority (NMFA) makes recommendations to NMED concerning the
approval or denial of an application with regards to a system's financial capacity.
The New Mexico Public Regulatory Commission (NMPRC) regulates investor owned utilities
and all incorporated businesses in New Mexico. Those systems that fall under NMPRC
jurisdiction must secure a CPCN. NMPRC requires the submission of a NMED approved system
design. NMED uses NMPUC rules as guidance regarding the documentation necessary to
comply with NMED financial capacity requirements.
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II. Control Points
A) Application to Construct
All persons wishing to construct a public water system must secure approval from NMED by
submitting and gaining approval for engineering documents and a Capacity Development
Analysis. To demonstrate adequate TMF capacity, these documents must include:
Plans and specifications
An O & M manual
An infrastructure improvement program
A capital improvement plan
Valid water rights or that a well drilling permit
Documentation of a certified operator.
Ownership and staffing and organization information
Demonstration of effective linkages with technical assistance providers, other systems,
customers, and, regulators
Revenue sufficiency
Proposed rates and charges
Billing and collection practices
Credit worthiness
Financial ratios
Record keeping procedures
Annual budgeting and reporting practices
A financial investment strategy
When NMED is satisfied that the system has met all applicable requirements, it will issue
approval.
III. Program Evaluation
To track the progress of the new system capacity development program and refine it for the
future, the NMED will track the number and type of new systems that applied for initial
approval; the number of approvals granted based on the first submission versus the number of
times NMED requested additional information; the number of applications that were rejected;
subsequent technical assistance to address deficiencies in the submitted information; and, the
number of systems that pursue an option other than the construction and operation of a stand
alone water system.
NMED will also periodically report to their Drinking Water Advisory Group to describe the
effectiveness of the capacity development process. The Advisory Group consists of technical
assistance providers and interested stakeholders who can provide advice regarding the
implementation and success of the program.
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New York
I. Basis of Authority
A) Statutory Authority
1) Public Health Law §225 establishes broad-based statutory authority for the Department of
Health (DOH) to protect public health:
"The public health council shall, at the request of the commissioner, consider any matter relating
to the preservation and improvement of public health, and may advise the commissioner thereon;
and it may, from time to time, submit to the commissioner, any recommendations relating to the
preservation and improvement of public health."
gopher://38.246.113.4/0/.laws/Public%20Health/.PBH225
2) Environmental Conservation Law §§15-1501 and 1503 require all new water systems to obtain
a permit from the Department of Environmental Conservation (DEC) prior to commencing
construction:
". . . no person or public corporation who is authorized and engaged in, or proposing to engage
in, the acquisition, conservation, development, use and distribution of water for potable purposes,
. . . shall have any power to do the following until such person or public corporation has first
obtained a permit from the department. . . (c) To commence or undertake the construction of any
works or projects in connection with the proposed plans; . . ."
B) Implementing Authority
1) 10 New York Codes, Rules, and Regulations (NYCRR) §5-1.22 requires all suppliers of water
to submit plans and specifications for DOH's approval prior to the installation or construction of
aPWS:
"(a) No supplier of water shall make, install or construct, or allow to be made, installed or
constructed, a public water system or any addition or deletion to or modification of a public
water system until the plans and specifications have been submitted to and approved by the
State."
http://www.health.state.ny.us/nysdoh/phforum/nycrrlO.htm
2) 10 NYCRR Subpart 5.4 requires all water treatment plants must be under the charge of a
certified operator.
"A water treatment plant must be under the responsible charge of a water treatment operator and
water treatment assistant operator..."
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3) 6 NYCRR Part 601 requires any person or public corporation planning on constructing a water
system, to secure a permit from DEC:
"A permit is required before a person or public corporation may take any of the following
actions: . . . commence or undertake the construction of any works or projects in connection with
proposed plans for a water supply system; . . . Construction may not begin on any part of a water
supply system for which a permit has been issued until contract plans and specifications for that
construction have been reviewed and approved by the department."
C) Responsible Agencies
DOH, DEC, the Public Service Commission (PSC), and the Office of the State Comptroller all
share the responsibility for ensuring new system capacity. DOH is the lead agency responsible
for coordinating the other Agency's responses to new system applicants and will implement the
program for ensuring capacity in new CWSs and new NTNCWSs. DOH has the authority to
ensure capacity in new municipal and privately-owned CWSs, and NTNCWS pursuant to 10
NYCRR §5-1.22 (technical and financial capacity )and 10 NYCRR Subpart 5-4 (managerial
capacity).
DEC assists with the review of technical and managerial capacity of new municipal and private
systems. The PSC must approve the proposed rate structures for every system owned, operated,
or managed by a water works corporation.9 The Office of the State Comptroller addresses
financial capacity concerns for new municipal systems.
II. Control Points
A) Approval of Plans and Specifications
In accordance with 10 NYCRR §5-1.22, no new system may be constructed until the plans and
specifications have been submitted to and approved by DOH. Plans and specifications and
engineering reports must be prepared in accordance with the Recommended Standards for Water
Works (1992 edition), which requires information about source water adequacy, infrastructure
adequacy, technical knowledge and implementation, revenue sufficiency, and credit worthiness.
Managerial capacity is assessed pursuant to the operator certification requirements found at 10
NYCRR Subpart 5.
9Waterworks corporations are defined to include every corporation, company, association, partnership or
person and their lessees, trustees and receivers. Public Service Law §2(27).
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B) Water Supply Permit
All municipal and privately-owned systems must secure a permit from DEC. The system must
submit:
An application signed by an authorized individual and proof of any required resolutions,
consents or ordinances
A system map and watershed maps
Plans and specifications
Engineers report
Estimated construction costs
Water analyses
Information on proposed treatment methods
A justification of the proposed proj ect including considered alternatives
C) Approval of Proposed Rate
All water works corporations must undergo a rate review process by the PSC. The PSC has the
authority to approve or disapprove a proposed rate prior to the commencement of operation. To
determine a reasonable rate that will provide sufficient revenue for the provision of safe and
adequate service, the Commission must review TMF aspects of capacity.
D) Operator Certification
DOH ensures that all new CWSs and NTNCWSs employ a certified operator. The State ensures
that systems have managerial capacity through the operator certification requirements.
E) Permission of State Comptroller
OSC reviews the revenue sufficiency and/or credit worthiness of proposed municipal water
systems to determine whether the cost will be an undue burden on the properties that would bear
it. Upon conducting this financial review, OSC is authorized to approve or disapprove the
establishment or extension of town water districts, the provision of town water improvements,
and the establishment or extension of county water districts.
III. Program Evaluation
DOH evaluates New York's new system capacity assessment program implementation plan by
reviewing new system applications on an annual basis and determining whether valid criteria
were used in the new system approval process.
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North Carolina
I. Basis of Authority
A) Statutory Authority
North Carolina's General Statute §130A-317(c) requires anyone planning on constructing a PWS
to secure a determination from the Department of Environment and Natural Resources (DENR)
that the system will be able to comply with drinking water rules:
"No person or unit of local government shall begin construction or alteration of a public water
system or award a contract for construction or alteration unless:...The Department has determined
that the system...will be capable of compliance with the drinking water rules."
B) Implementing Authority
Title ISA of the North Carolina Administrative Code 18C §.0300 prohibits the construction or
operation of a water system until the system has complied with the capacity development
requirements described in the section:
"No construction, alteration, or expansion of a water system...shall be placed into service and no
service connection shall be made until the applicant has complied fully with §.0300 of this
Subchapter and received Final Approval from the Department."
C) Responsible Agency
Within DENR, The Division of Environmental Health's Public Water Supply Section oversees
North Carolina's program for ensuring capacity in new CWSs and new NTNCWSs. DENR
works closely with the North Carolina Utilities Commission (NCUC) and the Local Government
Commission (LGC). DENR relies on the NCUC's Certificate of Public Necessity (CPN) process
to ensure that all privately owned, for-profit systems demonstrate adequate financial capacity.
The LGC oversees the financial practices of local government and reviews the financial capacity
of all new government owned systems.
II. Control Points
A) Plans and Specifications Approval
Systems are required to submit plans and specifications for review and approval by DENR. They
must be prepared by a professional engineer licensed to practice in North Carolina.
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B) Authorization to Construct
All new CWSs and NTNCWSs are required to obtain construction authorization from DENR.
To obtain this authorization, systems must submit:
Engineer's Report
Water System Management Plan (WSMP) including:
An organizational chart
A description of the responsibilities of key personnel
The identification of decision-makers
Operators' time commitments
Copies of contracts for management or operation
A description of legal, engineering, accounting and other professional services
Management qualifications and training
System policies regarding TMF management.
Financial plans
Documentation of LGC or NCUC approval of financial capacity, where applicable
If DENR determines that the system's application is complete and in accordance with design and
capacity requirements, it will grant construction approval. If DENR determines that the system is
lacking in capacity or other requirements, the applicant will be asked to submit further
documentation.
B) Final Approval
After construction, the system must secure final approval prior to commencing operation of the
system. The system must submit and DENR must approve:
Certification of construction in accordance with approved plans and specifications
(signed by a registered professional engineer)
O & M plan
Emergency management plan
III. Program Evaluation
To evaluate the success of its capacity development program, North Carolina will compare
compliance information for new and existing systems. DENR will also summarize statistics
regarding the number of proposed new CWSs and new NTNCWSs and the results of their
capacity demonstrations.
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North Dakota
I. Basis of Authority
A) Statutory Authority
North Dakota Century Code §61-28.1-03 requires the Department of Health (DOH) to ensure
capacity in new systems except those primarily providing serves to transient populations:
"Powers and duties of department. The department may exercise the following powers and shall
have the following duties: ... 16. Ensure that all new public water systems, excluding those that
principally provide service to transients, commencing operation after October 1, 1999,
demonstrate IMF capacity to comply with all rules adopted under this chapter which are in
effect, or will be in effect, on the date of commencement of operations..."
http ://www. state.nd.us/lr/
B) Implementing Authority
North Dakota Administrative Code (NDAC) § 33-17-01-19 requires new systems to submit plans
and specifications:
"1. Plans and specifications shall be prepared for all new public water systems. . . Such plans and
specifications, together with other pertinent information, shall be submitted to the department for
review and approval prior to awarding of contracts...."
http://www.health.state.nd.us/ndhd/pubs/rules/publicwater33-17.pdf
C) Responsible Agency
DOH's Division of Municipal Facilities (DMF), DWSRF program is responsible for review and
approval of plans and specifications for all new or modified PWSs. The DMF will make all new
system capacity determinations and utilize information from DMF's other programs including
the Operator Training and Inspections Program and the Drinking Water Program.
To encourage systems to meet capacity standards, DOH requests that the State Water
Commission delay issue of Water Allocation Permits and the State Plumbing Board delay issuing
plumbing approvals until capacity has been determined. No formal agreements are necessary
since DOH can deny or condition plans and specifications approval until the system secures
water allocation or plumbing permits. In addition, DOH requests that entities such as regional
planning councils who are involved in review and approval of new development, notify DOH of
potential new systems and delay approvals pending DOH capacity assessment.
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II. Control Points
A) Letter of Approval
All new CWSs and NTNCWSs are required to obtain a Letter of Approval from DMF before
commencing operation. Systems must submit:
A new water system application (including proof of a valid water use permit)
An operation plan, including
A description of the new water system
A description of the nature and extent of the area to be serviced
Assessment of compliance
A description of the alternatives considered to provide water service
An engineering description
Documentation of legal ownership and authority
Description of how the system will be managed (i.e. organizational charts, staffing
plan, etc.)
Documentation of a certified operator
Projected revenues, cash flow, income, and debt for 5-years
Plans and specifications
A construction schedule
An O & M manual
Once DMF has reviewed the above information, it will issue a Letter of Approval if the system
has demonstrated adequate capacity. If the system has failed to demonstrate capacity, DMF will
request additional information and/or deny the application for a Letter of Approval.
After construction, the system must submit a Notice of completion to DMF certifying that the
system was constructed in accordance with approved plans and specifications.
III. Program Evaluation
North Dakota does not anticipate that enough new systems will be constructed in the future to
merit a specialized data tracking system. DOH will maintain records on: application information,
the date the capacity review was completed, capacity determination findings, plans and
specifications with approval letters, construction schedules, sample results, notices of
completion, O & M manuals, letters of approval, dates of system start-up, and findings related to
follow-up capacity evaluations. Information will be evaluated periodically, considering SDWA
compliance reviews, certification reviews, inspection report reviews, comparisons with existing
systems (based on State Annual Compliance Report or CCRs), direct capacity surveys of
approved new systems, and audit report reviews.
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Ohio
I. Basis of Authority
A) Statutory Authority
1) Ohio Revised Code (ORC) §6109.07 requires the approval of plans prior to the
commencement of construction or installation of a PWS:
"No person shall begin construction or installation of a public water system, or make a
substantial change in a public water system, until plans therefore have been approved by the
director of environmental protection."
2) ORC §6109.24 requires new systems to demonstrate capacity and gives the Ohio
Environmental Protection Agency (OEPA) the authority to establish IMF capability
requirements:
"A public water system that is a community water system, or that is not a community water
system and serves a nontransient population, and that proposes to commence providing water to
the public after October 1, 1999, shall include with the submission of plans ... documentation that
demonstrates the technical, managerial, and financial capability of the system to comply with this
chapter and rules adopted under it. The director of environmental protection shall adopt, and
may amend and rescind, ... establishing requirements governing the demonstration of technical,
managerial, and financial capability for the purposes of this section."
http://onlinedocs.andersonpublishing.com/revisedcode/title-61/chapter-6190/ §-6109.24.htm
B) Implementing Authority
Ohio's Administrative Code §3745-87-02 requires that new systems submit a Capability
Assurance Plan to the OEPA or its duly authorized representative:
"... all applicants for approval under §6109.07 of the Revised Code that are new community or
nontransient noncommunity public water systems which will commence operation after October
1, 1999, shall submit a capability assurance plan to the director..."
http://www.epa.ohio.gov/ddagw/rules/37458701.pdf
C) Responsible Agency
OEPA is the primacy agency for Ohio's Drinking Water Program.
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II. Control Points
A) Approval of Plans
Systems must secure approval to construct from OEPA. A system must submit detailed plans
and specifications and a Capability Assurance Plan. OEPA requires the Capability Assurance
Plan to ensure a sound technological project, that the entity has both the ability and commitment
to provide for effective management and operation, and the financial stability to operate the
system. The Capability Assurance Plan must include:
Technical Capacity
An assessment of current and foreseeable requirements under ORC Chapter 6109 (Ohio
Safe Drinking Water Act) based on data for the proposed supply source
A description of the existing and projected area and population served
An estimation of existing and projected water demand
A description of considered alternatives and the rationale for selecting this project over
alternatives
An engineering description of current and future facilities
A detailed description of operator qualifications
Documentation that metering is used for lost water inventory and customer billing
Managerial Capacity
Description of the type of ownership and documentation that the owners have the legal
right and authority to finance, construct, operate, and maintain the system
Documentation of staffing, organization, and service and cooperative agreements
Demonstration of the ability to address customer and compliance issues
An O & M plan
A description of effective external linkages to address capacity issues
Financial Capacity
A description of revenues and cash flow for meeting construction, operation, and
maintenance costs for five years
A description of the organizational structure of financial management personnel
Information demonstrating bond or credit rating
The establishment of an escrow account for small private CWSs (serving less than 500
customers), which are not regulated by the Public Utilities Commission and provide
water to properties owned by people other than the system owners.
OEPA can deny approval if the construction plans or the capacity assurance plan are incomplete
or inadequate to demonstrate TMF capacity.
III. Program Evaluation
The OEPA Division of Drinking and Ground Waters will track the number and percentage of
enforcement referrals containing capability assurance provisions, the number and percentage of
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systems passing capability assurance screens in sanitary surveys, compliance reports, the number
and percentage of Water Supply Revolving Loan Account applicants denied loans as a result of
insufficient capacity, and number and percentage of plans for new systems denied as a result of
insufficient capacity. This information will be used to measure whether there are improvements
in capacity through the implementation of a new system program.
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Oklahoma
I. Basis of Authority
A) Statutory Authority
1) Oklahoma Statute §27A-2-6-304 prohibits the construction of any new water system prior to
obtaining a permit to construct from the Department of Environmental Quality (DEQ):
"No person shall supply water, or do any construction work of any nature for supplying water, to
the public, from, or by a public water supply system by means of any waterworks without a
written permit issued by the Executive Director."
http ://www2.1 sb. state. ok.us/os/os%5F27a%2D2%2D6%2D3 04. rtf
2) Oklahoma Statute §27A-2-6-303 gives the Environmental Quality Board10 the authority to
promulgate rules pertaining to PWSs:
"The board shall promulgate rules as may be necessary to implement the provisions of this part
pertaining to water supply systems."
http ://www2.1 sb. state. ok.us/os/os%5F27a%2D2%2D6%2D3 03. rtf
B) Implementing Authority
1) Oklahoma Administrative Code (OAC) §252:625-l-5(a) requires a permit for the construction
of any waterworks that will supply water to the public:
"(a) Activities. A permit shall be required for the construction or extension of any waterworks
for the supply of water to the public, and for authorization to supply water to the public."
http://www.deq.state.ok.us/rules/625.pdf
2) OAC §252:625-1-7 (a) and (c) prohibit DEQ from issuing a permit for construction if DEQ
finds the applicant of a new system cannot meet State standards and regulations:
"(a) Every applicant for a permit to supply water or to construct any type of waterworks shall
provide to the Department information and legal description of the type of entity which is making
the application (c) The Department may require such other information as in his opinion is
necessary to carry out the regulatory functions assigned to him by State law."
3) OAC §252:625-1-11 prohibits operation of a new PWS prior to a final system inspection and
the acquisition of a permit to operate.
10"The Board shall: . . 2. Be the rulemaking body for the Department of Environmental Quality."
Oklahoma Statutes §27A-2-2-101(G)(2).
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"No connections shall be made to a water system until the Department has made a final
inspection of the construction and has issued the owner a written notice of approval and a permit
to supply water."
C) Responsible Agencies
DEQ's Water Quality Division (WQD) is the primary State agency responsible for approving the
planning and design of water supply systems. Privately owned (for-profit) PWSs are required to
gain approval from Oklahoma Corporate Commission (OCC) prior to obtaining a permit for
construction. OCC assesses managerial and financial capacity as part of its review process.
II. Control Points
A) Permit to Construct
A system must secure a permit from WQD prior to construction. WQD may require the
submission of a Preliminary Report to facilitate a discussion of the project before the submission
of the engineer's report. It is the goal of the DEQ WQD to mitigate any problems with the
design/operational criteria before the plans are submitted. The application for a permit must be
accompanied by:
Technical Capacity
Plans and specifications
An engineer's report that includes:
General information
Extent of water works system
Alternate plan
Soil, groundwater conditions, and foundation problems
Water use data
A description of the sources of supply
Information on fire flow requirements, sewerage system availability, the proposed
treatment process, waste disposal, automation, project sites, and future extension
Design criteria
Managerial Capacity
Legal description of the type of entity which may include the submission of the
documents that created the entity, bylaws, resolutions, results of the last general election
held for the municipality, articles of incorporation, etc.
Plan for training and continuing education
Management procedures and policies
Record keeping procedures
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Financial Capacity
A demonstration that provisions have been made for continued existence of the operating
entity for a period of time equal to the system's expected useful life (required of systems
that are not a city, town, or other public entity)
A demonstration of financial accountability and viability (required of systems that are not
a city, town, or other public entity)
Annual budgets
Costs of construction and operation
B) Permit to Operate
Once the system has been constructed, the water system must apply for a permit to operate. DEQ
will perform a final inspection and will review as-built plans. The department will issue a permit
once it is satisfied that the system meets all requirements.
III. Program Evaluation
To track the progress of the new system capacity development program and refine it for the
future, DEQ plans to: routinely review new systems for compliance through established
programs, including Public Water Supply Sanitary Surveys, Compliance Monitoring, and
Operator Training and Certification.
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Oregon
I. Basis of Authority
A) Statutory Authority
Oregon Revised Statute §448.131 gives the Oregon Health Division (ODH) broad authority to
adopt standards relating to water system construction and operation:
"The Health Division shall adopt water quality standards that are necessary to protect the public
health through insuring safe drinking water within a water system...(2) In order to ensure safe
drinking water, the division shall prescribe: (a) Construction standards. . . (b) Standards for the
operation of water systems."
http://landru.leg.state.or.us/ors/448.html
B) Implementing Authority
Oregon Administrative Rules (OAR) §333-061-0061 requires owners of new water systems to
demonstrate IMF capacity in order to receive ODH approval to operate:
"Technical, Managerial, and Financial Capacity Requirements for New Public Water Systems.
(1) Any new community, nontransient noncommunity, or transient noncommunity public water
system commencing operations after October 1, 1999, must meet the applicable requirements in
this rule prior to serving drinking water to the public. The owner of such water system shall
submit evidence of meeting all applicable requirements to the Division for review and shall
commence operation only after Division approval...(3) Requirements for Technical Capacity...(4)
Requirements for Managerial Capacity...(5) Requirements for Financial Capacity."
http://arcweb.sos.state.or.us/rules/OARS 3OO/OAR_333/333061 .html
C) Responsible Agencies
OHD has primary responsibility for ensuring a demonstration of adequate capacity in new PWSs.
OHD and the Oregon Economic Development Department (OEDD) have entered into an MOU
in which OEDD has agreed to conduct financial capacity assessments of new water systems
using DWSRF evaluation criteria. OHD has also entered into an interagency agreement with the
Department of Land Conservation and Development to require land use approval at the local
level prior to construction and operation of a public water system. OHD requires proof of
approval from the local land use authority as part of the permit process.
The Oregon Water Resources Department (OWRD) issues water right permits and reviews water
conservation and management plans. There is no interagency agreement between OHD and
OWRD.
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II. Control Points
A) Plan Review Process
Systems must provide evidence of meeting all of the applicable requirements to OHD. New
water systems can commence operation only after OHD concurs that the requirements have been
met. Systems are required to submit Water System Capacity Report and:
Local land use authority approval
Construction plans and specifications
A plan for installing water use meters at all service connections
Water quality test results
Demonstration of a valid water right permit
Master plan prepared by a professional engineer11 (systems serving more than 300 people)
Evidence of being able to comply with operator certification/continuing education
requirements
A water management and conservation plan if required by OWRD
A water rate structure and billing procedure, or alternate financial plan, to assure that
funds are collected and available to meet the anticipated operation, maintenance, and
replacement costs of the water system
As noted above, OEDD performs the financial capacity assessment and reports to the OHD.
OHD uses a Capacity Assessment Checklist, which is also sent to new water systems, to track
each element of capacity. If there are deficiencies in capacity, OHD itemizes these deficiencies
in a letter along with a statement on commencement of operation status.
III. Program Evaluation
The Division plans to review compliance data and enforcement files to determine the success of
the capacity review process. If OHD notices excessive violations and enforcement actions on
new systems, it will review the plan review process, and make changes where necessary.
nThe master plan must evaluate the needs of the water system for at least a twenty year period. It must
evaluate the system's water supply source; water treatment, storage, and distribution facilities; and operation and
maintenance requirements Th plan must explain the impacts of present and probable future drinking water quality
regulations and include a water system improvement program that describes engineering alternatives, costs,
financing alternatives, and a recommended schedule for water system design and construction.
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Pennsylvania
I. Basis of Authority
A) Statutory Authority
1) Act 1984-43 of The Laws of Pennsylvania §5(b)(5) requires the Department of Environmental
Protection (DEP) to assume primary enforcement responsibility for PWSs and to establish and
maintain a permit program for the design and construction of systems:
"The Department shall develop and implement procedures. . . including. . . the establishment and
maintenance of a permit program."
2) Act 1984-43 §7(a) requires all persons to secure a permit prior to construction, operation, or
substantial modification of a CWSs :
"a) It shall be unlawful for any person to construct, operate, or substantially modify a community
water system without first having received a written permit from the department..."
3) Act 1984-43 §7(b) requires all persons to secure a permit prior to construction, operation, or
substantial modification of aNCWS:
" b) It shall be unlawful for any person to construct, operate or substantially modify a
noncommunity water system without first having received a written permit from the Department
unless: . . .(1) [it] is operated under valid permit issued under other law ... or. .. is a type which
the Department determines can be adequately regulated through standardized specifications and
conditions; (2) [it] complies with all other requirements."
B) Implementing Authority
1) 25 Pa. Code §109.501(a) requires all persons to obtain a construction permit from the DEP
prior to beginning construction of a PWSs :
"A person may not construct a public water system without first having obtained a construction
permit from the Department."
http://www.pacode.com/secure/data/025/chapterl 09/s 109.501 .html
2) 25 Pa. Code §109.501(c) requires all persons to obtain an operation permit prior to
commencing operation of a PWSs :
"A person may not operate a public water system without first having obtained an operation
permit from the Department."
http://www.pacode.com/secure/data/025/chapterl 09/s 109.501 .html
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3) 25 Pa. Code §109.505 extends some of the permitting requirements to NCWSs since a NCWS
does not have to secure a permit under certain limited situations:
"A noncommunity water system shall obtain a construction permit. . . and an operation permit. . .
unless. . .[the system] uses a groundwater source of supply requiring treatment no greater than
disinfection to provide water that meets the primary MCLs and, files a brief description of the
system, including raw source quality data, on forms supplied by the Department."
http://www.pacode.com/secure/data/025/chapterl 09/s 109.505 .html
C) Responsible Agencies
Pennsylvania's DEP has broad authority to regulate water systems in the State. The Department
of Agriculture has been delegated authority for certain NCWSs. There is a MOU between the
DEP and the Department of Agriculture to clarify the responsibilities for systems regulated by the
Public Eating and Drinking Place Law, the Seasonal Farm Labor Act, or the Public Bathing Law.
In order to receive a permit under these laws, systems must, among other things, submit a Brief
Description Form (described below) to the DEP. This takes the place of a business plan for new
NCWS. For those systems required to hold a Certificate of Public Convenience (CPC), the
Public Utilities Commission (PUC) requires CWSs to submit the business plan required by DEP
along with the CPC application.
II. Control Points
A) Construction Permit
CWSs must obtain a construction permit prior to commencing construction. DEP will review:
An application
Plans and specifications
An engineer's report
Water quality analysis, and other data, and
A business plan that includes demonstration of TMF capacity
The Department can request additional information and can deny an application for a
construction permit.
NCWSs have the option to obtain both a construction and operating permit from DEP or to
secure a permit from the Department of Agriculture under either the Public Eating and Drinking
Place Law, the Seasonal Farm Labor Act, or the Public Bathing Law; or file a Brief Description
Form that completely describes the system. The form requires, among other things, a responsible
official to sign a Certification of Responsibility to attest that the information on the form is
correct, that there is a pledge of full financial support, and that failure to comply with all
requirements may result in the closing of the entire facility.
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B) Operating Permit
The Department will issue an operating permit after the submission, review, and approval of an
"as-built" certification; if the Department is satisfied that the water supplier has adequate
operation and maintenance information on site; and, if a certified operator has been retained, if
applicable.
III. Program Evaluation
To track the progress of the new system capacity development program and to refine it for the
future, the DEP will track system compliance through the Pennsylvania Drinking Water
Information System (PADWIS); use PADWIS and the new Foundation for Information
Exchange (FIX) database to track permit applications and business plans for new systems; and
use 47 viability indicators developed through a joint project between the DEP and EPA to
evaluate the success of the program.
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Puerto Rico
I. Basis of Authority
A) Statutory Authority
Broad authority is provided to the Puerto Rico Department of Health (DOH), through Act No. 5
and Act No. 32, to prohibit any person or institution from engaging in any activity that endangers
public health:
". . .perform any or all such actions as are needed to carry out the purposes and requirements of
this Act with regard to the approval of the Regulations required to enforce it."
B) Implementing Authority
Regulation No. 50 ("To Protect the Purity of the Potable Waters of Puerto Rico") provides the
implementing authority for DOH.
C) Responsible Agencies
DOH is the agency with primary responsibility for protecting the purity of Puerto Rico's drinking
water and ensuring that systems are in compliance with NPDWRs. Through a MOU, DOH
receives assistance from the Government Development Bank (GDB) and the Puerto Rico
Infrastructure Financing Authority in conducting the financial capability assessment.
II. Control Points
There are three endorsements, used as control points, which must be secured by a new system
prior to operation:
A) Development Endorsement
To receive a development endorsement, applicants must submit plans and specifications and an
engineering report that includes an:
Environmental assessment
Archeological report
System description
Infrastructure replacement plan
O & M plan
Operator training plan
New CWSs and new NTNCWSs must comply with the following requirements:
Demonstrate ability to accommodate projected population increase for the first five years
of operation without modifications
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Submit, request, and comply with the endorsements of DOH for the development,
construction, and operation of a PWS
Comply with the permits and endorsements of the government agencies that are
concerned with or regulate the construction and operation of water systems. This
includes DOH, the Department of Natural Resources, Regulations and Permits
Administration, Puerto Rico Environmental Quality Board, and other agencies
Prepare and submit a copy of the operation/maintenance manual to be used by the
operator of the proposed system
B) Construction Endorsement
Systems must submit a business plan that includes information on ownership organization,
management qualifications and training, budget controls, and water system policies. Systems
must include:
Emergency management plan
Budget
Evidence of incorporation through the Puerto Rico Department of State
A legal document where all duties and responsibilities of all the members of the entity in
charge of undertaking the operation, maintenance, and administration of the system are
stated
Identification of a President, Vice President, Treasurer, Secretary, and one person with
knowledge on drinking water regulations, compliance, operation and maintenance, as
well as operators certified in accordance with the Puerto Rico Examining Board
A budget estimate for initial construction cost, operation, and maintenance for the next
five years
C) Operating Endorsement
An operation endorsement is the final phase in the review process. Receipt of this endorsement
is based on the completed financial assessment, approval of the system's management structure
and policies, and the review of the system's as-built plans.
III. Program Evaluation
DOH will evaluate the effectiveness of the new system capacity assurance program on the basis
of compliance data. Compliance rates for systems established after October 1, 1999, will be
compared to the compliance rates for systems established before October 1, 1999. If compliance
rates for the newer systems are greater than those of older systems, the program will be deemed
effective. If this is not the case, the new system program will be re-examined, and changes will
be made.
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Rhode Island
I. Basis of Authority
A) Statutory Authority
1) Rhode Island General Law §46-13-18 grants broad authority to the Department of Health
(RIDH) for the promulgation of any regulations necessary to implement the requirements of the
SDWA:
"The director is hereby authorized to adopt regulations consistent with...the federal Safe Drinking
Water Act, 42 U.S.C §300f et seq., and the federal regulations adopted thereunder."
http://www.riUn. state, ri .us/Statutes/TITLE46/46-13/S00021 .HTM
2) Rhode Island General Law §46-13-2 requires approval form RIDH prior to the operation of a
PWS:
"[.1] No person shall operate or maintain a public water supply system unless the system is
approved by the director of health... [.2] The director, after notice and opportunity for hearing, is
authorized to deny, suspend, or revoke any application submitted or approval granted under this
chapter..."
http://www.rilin.state.ri.us/Statutes/TITLE46/46-13/S00003.HTM
B) Implementing Authority
Rhode Island Regulation R46-13-DWQ, §2.3 lays out the necessary procedures for new system
licensure, and requires applicants to demonstrate capacity:
"Applications for a new public water system shall include a water system management plan that
demonstrates the financial, managerial, and technical capacity to comply with statutory and
regulatory requirements."
http://www.health.state.ri.us/hsr/regulations/dwq.pdf
C) Responsible Agency
RIDH is the primacy agency for the Rhode Island Drinking Water Program.
II. Control Points
Licensure to Operate
All new water systems are required to obtain a license from RIDH before beginning operation. A
license will not be issued unless the water system has demonstrated adequate TMF capacity. To
obtain a license, new water systems must submit:
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Water System Management Plan that includes:
A system description
An analysis of source adequacy to meet demand
An infrastructure replacement plan
A cross connection control program
An O & M manual
A training plan
A description of the system's organization and ownership
An emergency management plan
A 5-year projected budget
A description of budget controls
Plans and specifications, prepared by licensed engineer
An inventory of the sources of pollution within the wellhead area
Water Quality Testing Results (post construction)
If the Department cannot determine that a system has adequate capacity, the license will be
denied. The system will have the options of: amending its application, re-applying when
capacity can be clearly demonstrated, or seeking other alternatives.
III. Program Evaluation
RIDH is developing a database in order to track and facilitate licensure activities throughout the
Department. The new system will be linked to the PWS compliance database so that anyone
using the compliance database will be able to see whether a new system has been issued a
license. RIDH will retrieve compliance data for new water systems and compare them to
compliance rates of existing systems. If compliance rates of new systems are not greater than
those of existing systems, the program will be amended in order to improve compliance rates.
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South Carolina
I. Basis of Authority
A) Statutory Authority
The South Carolina Code of Laws, §44-55-120(D) gives the Department of Health and
Environmental Control (DHEC) specific authority to deny a construction permit to new systems
that cannot demonstrate viability12 (i.e. capacity):
"The department may deny a construction permit to any new system which is unable to
demonstrate viability to comply with the Safe Drinking Water Act or where connection to an
existing, viable water system is feasible."
http://www.leginfo.state.sc.us/code/index.html
B) Implementing Authority
State Primary Drinking Water Regulations (SPDWR) Section 61-58.1 outlines the procedures
that an applicant must follow for obtaining a permit to construct a water system:
"Before a permit to construct can be issued for a new public water system, the applicant shall
demonstrate to the satisfaction of the Department that the new system will be a "viable water
system."
http://www.lpitr.state.sc.us/coderegs/c061b.htm
C) Responsible Agency
DHEC is the primacy agency for the South Carolina Drinking Water Program.
II. Control Points
A) Construction Permit
Before beginning construction, all new systems must obtain approval from DHEC. DHEC first
evaluates whether it is feasible for the applicant to connect to an existing water system. If it is
not feasible, staff engineers will review permit applications for compliance with the capacity
demonstration procedures and with design standards. A staff accountant assists the engineers in
reviewing the financial capacity of a proposed system.
To evaluate TMF capacity, the Department requires systems to submit:
12A "viable water system mans a water system which is self sustaining and has the commitment and the
financial, managerial, and technical capability to consistently comply with the State SDWA and these regulations."
State Primary Drinking Water Regulations Section R.61-58(B).
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Technical Capacity
Engineering report
Plans and specifications
Local government approval
Managerial Capacity
Identification of water system owner
Description of management structure
An organizational chart
Staffing requirements and duties
Copies of outside service agreements
Financial Capacity
Multi-year financial plan, including: assurance of revenue sufficiency for at least five
years, rate projection showing significant coverage ratio, escrow funds, bonding, and a
letter of credit
All of the above information may be submitted as part of the engineering report. Management
and financial plans are not required of new systems whose only source of water is from an
existing system with capacity and the new system does not treat or sell the water.
If DHEC's engineering and accounting staff find that an applicant does not have adequate
capacity, DHEC may deny the permit to construct.
B) Final Construction Approval
After construction, the system must arrange for an inspection by DHEC and submit:
A letter from a professional engineer certifying that construction has been completed in
accordance with the approved plans and specifications
An outline of any deviations to the permitted project
Additional detailed technical information including the results of source water analyses
and analyses following disinfection
Proof of registration with the South Carolina Public Service Commission for new
privately owned utilities and homeowner associations.
DHEC will issue a final construction approval if the system has satisfied all applicable
requirements.
III. Program Evaluation
To evaluate its capacity assurance program, South Carolina will monitor the success of new
water systems in maintaining compliance with the State SDWA. DHEC plans to develop a
computer program that cross references the permitting database to other databases (e.g., sanitary
survey, water quality) for the purpose of tracking new water system compliance.
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South Dakota
I. Basis of Authority
A) Statutory Authority
South Dakota's Codified Laws Annotated (CLA), §34A-3A-25 gives the Department of
Environment and Natural Resources (DENR) authority to promulgate rules to establish
procedures for a demonstration of capacity by new systems:
"In order to carry out the requirements of the federal SDWA...the secretary of environment and
natural resources shall promulgate rules ... establishing: (1) Procedures for a supplier of water to
demonstrate that a new system ... has the technical, managerial, and financial capacity to achieve
and maintain compliance...
CLA §34A-3 A-25 gives DENR authority to promulgate rules to establish procedures to issue
certificates of approval to new water systems:
"In order to carry out the requirements of the federal SDWA...the secretary of environment and
natural resources shall promulgate rules ... establishing: (2) Procedures for the department to
issue certificates of approval to new water suppliers once a technical, managerial, and financial
capacity review ... is completed..."
http://www.state.sd.us/state/legis/lrc/statutes/34A/03A/002500M.htm
B) Implementing Authority
South Dakota Administrative Rules (SOAR) § 74:04:09:03 requires new water systems to
demonstrate capacity before operations begin:
"Each new water system must demonstrate to the department that it has adequate technical,
managerial, and financial capacity before it may provide water for human consumption."
http://www.state.sd.us/state/legis/lrc/rules/rulesearch.htm
C) Responsible Agencies
DENR is the primacy agency for the South Dakota Drinking Water Program and has primary
responsibility for implementing the capacity development requirements for new systems.
II. Control Points
A) Certificate of Approval
A Certificate of Approval is required for all new CWSs and new NTNCWSs prior to the
distribution of water. DENR will issue written approval to begin construction when a system has
demonstrated adequate IMF capacity. Applicants are required to submit:
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Technical Capacity
Owner and operator contact information
A legal description of the facility
A map of the project
The number of expected hook-ups
Documentation of a water right permit
A description of the water source
A Facilities Plan (part of a required Business Plan) that describes the scope of the water
service, the area to be served, current and expected compliance from proposed water
source, alternatives considered (with the TMF reasons behind the chosen approach), and
an engineering description of construction phases
Plans and specifications
Managerial Capacity
A Management Plan (part of a required Business Plan) that documents that the applicant
has legal authority to construct and operate the system and describes the management and
operating credentials of the system's personnel
Financial Capacity
A Financial Plan (part of a required Business Plan) that includes revenues, cash flow,
income and debt for construction costs, and projects the costs of operation and
maintenance for at least 5 years from starting operation
If DENR is satisfied with the system's TMF capabilities, it will issue written approval to proceed
with construction. The system then submits a construction schedule and begins to construct.
Upon completion of construction, the system must arrange for DENR to inspect the system and
submit:
A notice of completion certifying that the system was constructed in accordance with
approved plans and specifications.
Water quality sampling results
An O & M manual
Once the notice of completion is received by DENR, and the system has satisfied all applicable
requirements, DENR will issue a Certificate of Approval and the system may begin operating.
III. Program Evaluation
To track the progress of the new system capacity development program and refine it for the
future, DENR is developing a database to compare new systems to existing systems. DENR's
drinking water information database will be linked to a PWS tracking program database. The
database can be queried to compare existing system compliance to new system compliance rates.
If the compliance rates for new system rates are higher than existing system rates, the program
will be considered a success. If not, the program will be altered to improve new system
compliance rates.
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Tennessee
I. Basis of Authority
A) Statutory Authority
Tennessee Code Annotated (TCA) Section 68-221-704(2)(E) grants the Board13 specific
authority to promulgate regulations to establish a requirement that all new systems demonstrate
IMF capacity:
"The board has the following duties and responsibilities to...(2) Adopt...rules and
regulations...Such rules and regulations shall at a minimum...(E)Establish a requirement that all
new community water systems and new nontransient, noncommunity water systems commencing
operation after October 1, 1999, demonstrate technical, managerial, and financial capacity."
http://www.lexislawpublishing.com/Resources/
B) Implementing Authority
State Primary Drinking Water Regulations §1200-05-1-. 17(37) requires that all new systems
submit a capacity development plan and demonstrate "viability" (i.e. capacity):
"Any new community water system or non-transient non-community water system commencing
operation after September 30, 1999, shall have a "Capacity Development Plan" and be a "viable
water system."
C) Responsible Authorities
The Tennessee Department of Environment and Conservation (TDEC) is responsible for
administering the capacity development requirements for new systems. Staff from the Division
of Community Assistance assist TDEC engineers in reviewing the financial capacity of proposed
systems.
II. Control Points
A) Approval to Construct
Prior to construction, new systems must submit an engineering report to TDEC for review and
approval. The report must include:
A statement of why the system needs to be constructed (the problem or need)
A summary of alternative solutions that were considered
A description of the sources of water
13"Board" means the Tennessee Water Quality Control Board as established by TCA § 69-3-104.
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A description of the proposed treatment processes
A description of the proposed waste disposal processes
A description of the distribution system
Financing including rates, debt, etc.
A description of the management of the system
If the report demonstrates that the system will have adequate capacity, approval is granted for the
preparation of plans and specifications and for the system to proceed with construction.
B) Final Construction Approval (i.e. Approval to Operate)
A new water system must obtain written approval from DEC in order to begin operation. DEC
engineers inspect the water system evaluating its compliance with design standards and
consistency with the documents approved in the construction approval process. Additionally,
systems must submit a Capacity Development Plan. The plan must include:
Information on the operator's training and certification
System ownership and accountability information
Staffing and organizational structure
A description of fiscal management and controls
A source water assessment and protection plan
A Business Plan that identifies: source(s) of income or revenue sufficient to meet
expenses over a three year period, estimated costs of all facets of water system operation,
maintenance, management, and administration, and repayment of borrowed and
amortized funds
The system will not be permitted to begin operation unless the system has complied with all
applicable capacity requirements.
III. Program Evaluation
To evaluate its new system capacity development program, Tennessee plans to track the
compliance rates of new systems.
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Texas
I. Basis of Authority
A) Statutory Authority
Texas Health and Safety Code (THSC) Chapter §341.035(b) requires prospective owners and
operators of systems, to submit IMF information to the Texas Natural Resource Conservation
Commission (TNRCC):
"The prospective owner or operator of the system must submit to the executive director a
business plan that demonstrates that the owner or operator of the proposed system has available
the financial, managerial, and technical capability to ensure future operation of the system in
accordance with applicable laws and rules... unless the person (1) is a county; (2) is a retail public
utility defined by Water Code 13.002; (3) has executed an agreement with a political subdivision
to transfer ownership and operation to the political subdivision; or (4) is a noncommunity
nontransient water system and has demonstrated financial assurance under Chapter 361 or 382 of
this code...."
http://capitol.tlc.state.tx.us/statutes/codes/HS000095.html
B) Implementing Authority
Texas Administrative Code Title 30 §290.39(h.l) requires new systems to secure a permit from
the Executive Director of TNRCC before construction of a PWS begins: (Water utilities, as
defined by THSC §341.035(b) above, are not required to submit a business plan.)
"No person may begin constructing a new public drinking water system before receiving written
approval of plans and specifications and, if required a business plan from the executive
director..."
http://info.sos.state.tx.us/pub/plsql/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc
=&p_ploc=&pg= 1 &p tac=&ti=30&pt= 1 &ch=290&rl=39
C) Responsible Agencies
The TNRCC is the State agency responsible for implementing the regulations, policies and other
authorities to ensure compliance with the SDWA.
II. Control Points
A)Permit to Construct
In order for a new system to be granted a permit to construct, the proposed system must
demonstrate: TMF capacity, the ability to ensure continuous and adequate service, and that
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regionalization or consolidation with another retail public utility is not economically feasible.
The system must submit:
A copy of an application for service from neighboring systems
Engineering plans
A Capacity Worksheet including information on:
Treatment, storage, distribution, and system capacity
Technical knowledge and implementation, certified operators
Operator implementation
Staff and governing board
Authority and decision making
Customer service
Record keeping
Budget
Water supply and capital improvement planning audit
Rates
General financial conditions
Reserve accounts
Revenues, expenses, and major repairs
Insurance
Internal controls
A CCN (required of water supply corporations and investor owned utilities)
A Business plan that includes:
Copies of written requests seeking to obtain service from an existing system
A time-line for the construction
Costs and selection of alternative sources of supply
Ownership information
An O & M plan
The qualifications of the organization and each individual associated with the
proposed system
Assurances of commitments and resources needed for proper operation and
maintenance of the system
Financial assurance including those being offered to capital providers
Other information required by the department to determine the adequacy of the
business plan or financial assurance
* Note: Retail public utilities as defined by TWC 13.002, are required to submit project rate
revenue from residential, commercial, and industrial customers; and, pro forma income,
expenses, and cash flow statements.
If the system cannot demonstrate TMF capacity, approval to construct will be denied. Any
assistance requested by the potential system will be limited to addressing specific questions. The
system will be strongly encouraged to join an existing system.
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III. Program Evaluation
To track the progress of the new system capacity development program and refine it for the
future, the TNRCC will arrange regular conferences between management and staff to ensure
compliance with Standard Operating Procedures (SOP) and discuss the effectiveness of SOPs;
review compliance data of newly established PWSs and evaluate the effectiveness of tools to test
for IMF capacity; review monthly technical assistance reports by a technical assistance provider;
track the number of Corrective Action Plans (CAPs) and monitor compliance with the CAPs;
evaluate the deficiency scores on annual system inspection reports and track enforcement
activity; conduct public outreach, training classes, and stakeholder meetings; and, prepare and
submit the governor's report on the effectiveness of the new system capacity development
program.
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Utah
I. Basis of Authority
A) Statutory Authority
Utah Code Annotated §19-04-104, gives broad authority to the Utah Department of
Environmental Quality's (UDEQ's) Drinking Water Board (DWB) to govern capacity
development:
"(1) The board may: (a) make rules in accordance with Title 63, Chapter 46a, Utah
Administrative Rulemaking Act: ... (v) governing capacity development in compliance with
§1420 of the federal Safe Drinking Water Act, 42 U.S.C.A. 300f et seq.; ..."
http ://yeehaw. state.ut.us/
B) Implementing Authority
Utah Administrative Code (UAC) §R309-352-5(2) requires water systems to demonstrate
capacity before providing water to consumers:
"Each proposed, new water system must demonstrate that it has adequate technical, managerial,
and financial capacity before it may provide water for human consumption..."
http://www.rules.state.ut.us/publicat/code/r309/r309-352.htmtfH5
C) Responsible Agencies
The DWB is empowered to adopt rules governing the design, operation, and maintenance of
PWSs in Utah. The Division of Drinking Water (DDW) of the UDEQ acts as the administrative
arm of the DWB and implements the rules which they adopt. DDW is required by UAC §309-
352-5(5) to conduct capacity assessment reviews. The Utah Public Service Commission (UPSC)
must approve rate designs, system investments, and systems financial structures for those water
systems under its jurisdiction. The Department of Natural Resources' (DNR's) Division of
Water Rights (DWR) approves water rights and administers well construction rules.
II. Control Points
A) Plan Approval
New public water systems must submit a Capacity Assessment Review to DDW in conjunction
with an overall plan approval procedure before construction may begin. The procedure must
include:
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A Project Notification Form including information on who is designing and inspecting
the project, whether permits have been applied for, contact information, a construction
schedule, and a description of legal responsibility
Contract documents
Plans and specifications
A Business Plan including:
Facility Plan that describes the scope of water services provided, any considered
alternatives, and the facilities to be constructed; has provisions for extended
growth; and assesses current and expected compliance
Management Plan that documents rights to construct and maintain the system and
staff credentials; and includes an operating plan,
Financial Plan showing system revenues, cash flow, income, and debt for
construction costs, and O & M costs through five years from start-up
B) Operating Permit
New (as well as existing) public water systems must secure an Operating Permit from DDW
before they may put drinking water service into operation. To secure a permit, systems must
submit and DDW must receive:
Certify proper infrastructure disinfection (engineer's statement and lab samples)
As-built drawings
Statement of Plan Approval compliance
Water quality data verification of its compliance with requirements
Engineer's statement of project deviations from original plan approval
O & M manual
Documentation of any previously unsubstantiated components of the plan review process
Documentation system owner's legal right to use water from the proposed source
III. Program Evaluation
Utah will evaluate the success of their new system capacity program by using its IPS Water
System Rating (over 150 deficiency points on a sanitary survey warrants redesignation from
approved to not approved status for a public water system). Systems that have been accountable
to the Capacity Assessment requirements (principally new systems) will be compared with all
other systems. IPS scores of comparative systems as well as precentage of each of the two
groups with approved system status will be tracked. The Capacity Assessment program will be
deemed effective if those systems accountable to it have a higher IPS approved ratio as well as
higher overall IPS scores.
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Vermont
I. Basis of Authority
A) Statutory Authority
10 V.S.A. §1672(b)(10) gives the Agency of Natural Resources (ANR) specific authority to
ensure that new systems have IMF capacity:
"The secretary of ANR may establish by rule, standards or requirements for:... obtaining a
construction permit for a new water system. At minimum, the water system shall demonstrate
that it possesses the long-term financial, managerial, and technical capability to operate and
maintain a water system in conformance with federal and State regulatory requirements."
http://www.leg. state.vt.us/statutes/title 10/chap056.htm
B) Implementing Authority
The Vermont Water Supply Rule Subchapter 21-15, provides the standards and requirements for
implementing the new system capacity program, including the specific requirements for
demonstrating TMF capacity:
"All proposed new public community and public nontransient noncommunity water systems
must demonstrate technical, managerial, and financial capacity prior to obtaining a construction
permit or an operating permit."
C) Responsible Agency
The Department of Conservation (DEC), a department within ANR, serves as the lead
department for implementing and enforcing the new system capacity program. The Secretary of
ANR has officially delegated his responsibility to administer the drinking water program to the
Commissioner of DEC.
II. Control Points
A) Construction Permit
A construction permit must be obtained prior to modifying or constructing a new CWS or new
NTNCWS. To apply for a construction permit, systems submit an application, detailed plans and
specifications including maps, an engineer's report, a long range plan (including a 5-year budget,
capital replacement plan, fiscal controls, and revenue projections) and, if applicable, a Certificate
of Public Good from the Public Service Board.
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If upon preliminary review, the applicant does not demonstrate adequate initial capacity, DEC
asks the applicant to consider its weaknesses and submit additional information. When the
applicant has documented adequate capacity, the construction permit is issued and the system
may begin construction.
B) Operations Permit
At least 30 days prior to the desired start-up date, a new system must apply for an operations
permit. Along with the application, systems must submit "as built" drawings, documentation that
a certified operator will be operating the system, and an O & M manual. In addition to a
description of operation and maintenance procedures, the O & M manual must contain an
employee safety program, a source protection plan, customer complaint response procedures,
record maintenance procedures, and a contingency plan.
DEC will not issue an operations permit until the system demonstrates adequate capacity.
III. Program Evaluation
Vermont will evaluate all components of compliance for newNTNCWSs and CWSs including
operating permits, bacteriological sampling plans, source protection plans, monthly operational
reports, consumer confidence reports, GUDI determinations, disinfection, and operator
certifications. Compliance with MCLs, monitoring and treatment technique requirements, action
levels, and public notices for each contaminant will also be evaluated. Vermont will use its
electronic database to compare compliance rates for new water systems with those of systems
that began operation prior to October 1, 1999, but are less than 5 years old, to determine the level
of new system capacity program success.
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Virginia
I. Basis of Authority
A) Statutory Authority
Virginia Code §32.1-172(A) & (B) prohibit the establishment, construction, or operation of a
water supply without a written permit from Virginia Department of Health (VDH) and require
the submission of TMF information in the application for a permit:
"(A) No owner shall establish, construct, or operate any waterworks, or water supply in the
Commonwealth without a written permit from the Commissioner...(B) The application for such a
permit....shall include a comprehensive business plan detailing the technical, managerial, and
financial commitments to be made by the owner to assure that system performance requirements
for providing the water supply will be met over the long term."
http://legl.state.va.us/cgi-bin/legp504.exe?000+cod+32.1-172
B) Implementing Authority
The Virginia Administrative Code §12VAC5-590-190 requires a waterworks14 facility to secure
construction and operation permits before commencing construction and operation:
"No owner or other person shall cause or allow the construction at any waterworks or water
supply without a written construction permit from the commissioner...furthermore, no owner or
other person shall cause or permit any waterworks or water supply to be operated without a
written operation permit issued by the commissioner...."
http://legl.state.va.us/cgi-bin/legp504.exe?000+reg+12VAC5-590.190
C) Responsible Agencies
The VDH has jurisdiction over all matters concerning the implementation of capacity
development programs for all water systems in Virginia. The State Corporate Commission is
responsible for CCNs which are required for systems serving (or planning to serve) 50 or more
persons.
II. Control Points
A) Construction Permit
There is a five-step application process that each potential waterworks must complete before a
permit to construct will be issued. A complete application includes:
14Waterworks means a public water system as defined in federal regulations.
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Notification of intent
Preliminary engineering conference
Business Plan which includes:
Background information on the qualifications of persons involved with the system
O & M information
Technical data that supplements the engineering report
Financial data projecting expenses and revenues and identifying sources of funds
and financial controls
Preliminary engineering report (PER)
Final plans and specifications
B) Operating Permit
After construction, the waterworks owner must submit a statement to the field office that
includes a statement by a licensed professional engineer that the construction work was
completed in accordance with the approved plans and specifications. The engineer must base the
statement on inspections of the water works both during and after the construction. Upon receipt
of the statement, VDH will issue a permit to operate.
III. Program Evaluation
To track the progress of the new system capacity development program and to refine it for the
future, the VDH requires the submission of a report by systems which summarizes a new
system's compliance and it's cash flow six months after commencing operation. The report must
be submitted annually thereafter. VDH will use the reports and the SDWIS database to track new
waterworks' monitoring compliance rates.
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Washington
I. Basis of Authority
A) Statutory Authority
1) The Revised Code of Washington (RCW) §43.20.050 (2) gives the Department of Health
(DOH) broad authority over PWS planning:
"In order to protect the public health, the state board shall: (a) adopt rules necessary to assure
safe and reliable public drinking water and to protect the public health. Such rules shall establish
requirements regarding: ... (iv) Public water system planning..."
http://www.mrsc.org/rcw.htm
2) RCW §70.119A. 100(4) gives DOH authority to require annual operating permits:
"The operating permit requirements shall be administered by the department...the department
may impose permit conditions, requirements for system improvements, and compliance
schedules..."
http://www.mrsc.org/rcw.htm
B) Implementing Authority
1) Washington Administrative Code (WAC) §246-290-100 requires all new systems to submit
water system plans (WSPs) to DOH for approval:
"Purveyors of the following categories of public water systems shall ensure the development and
submittal of a water system plan for review and approval by the department... (f) All new
systems."
http://www.mrsc.org/wac.htm
2) WAC §246-290-110 & 120 require new water system purveyors to submit project reports and
construction documents to DOH for approval prior to installing a new system:
"The purveyor shall submit project reports [and construction documents] to the department for
written approval prior to the installation of any new water system...."
http://www.mrsc.org/wac.htm
3) WAC §246-290-130 (1) requires parties seeking to use a new source as a public water supply
to obtain approval from DOH:
"No new source, previously unapproved source, or modification of an existing source shall be
used as a public water supply without department approval."
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http://www.tnrsc.org/wac.httn
C) Responsible Agencies
Washington DOH is responsible for reviewing and approving water system planning documents
and applications for operating permits unless this responsibility has been delegated to the local
health jurisdiction. WAC §246-290-030 allows DOH and the health officer for each local health
jurisdiction (LHJ) to develop a joint plan of operation (JPO). If a LHJ has agreed to perform the
duties of the drinking water program, including approving new systems, the JPO must indicate
that the LHJ will enforce rules and regulations no less stringent than DOH.
An MOU between the DOH and the Department of Ecology (DOE) states that a WSP must be in
place with DOH before the DOE will issue the system a water right permit. Local governmental
bodies with jurisdiction over development and building permits must assess the "adequacy" of
water supplies when considering short plan subdivisions or individual building permit
applications.
II. Control Points
A) Construction Approval
New systems must submit and DOH must issue approvals for:
A WSP that includes:
A description of the water system, including its ownership and management, its
background, an inventory of any existing facilities, any related plans, service area
characteristics, and service area policies
Basic planning data, including current water use and data reporting, current and
future land use, expected future population and number of service connections,
and a demand forecast for six and 20 years
A analysis of the system's design standards, water quality, source, treatment,
storage, distribution, a summary of system deficiencies, and analysis of possible
improvements
A water conservation program, water right analysis, source analysis, and water
shortage response plan
A wellhead protection program (if applicable) and a watershed control program
An O & M program
Distribution facilities design and construction standards
A capital improvement program
A financial program including identification of cost of capital and non-capital
improvements, identification of annual O & M expenses, a six-year budget, a
discussion of water rates, and a "financial viability test"
Satellite management program
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Proof of a Satellite Management Agency (SMA). DOH will not allow the creation of a
new system unless that system is owned or operated by an approved SMA. If an SMA is
not available, the new system must demonstrate it has "sufficient management and
financial resources to provide safe and reliable service. "
A description of critical water supply service areas. No new systems may be created
within existing Critical Water Supply Service Area boundaries without specific
authorization from DOH.
Project reports and construction documents. Purveyors of new water systems must
receive approval for project reports and construction documents before they can begin
construction. These documents will not be reviewed until after the WSP has been
submitted.
The scope and detail of each of these items will depend on the system's size and complexity.
B) Operating Permit
New PWSs are required to submit an application for an operating permit. Permits are only
granted to new systems after they have received all required departmental approvals relating to
water system operation. In addition to the four approvals above, systems must obtain source
approval and comply with operator certification requirements. Systems lacking capacity may be
issued a permit with conditions or may be denied the permit.
III. Program Evaluation
Washington annually reviews the effectiveness of five elements of the capacity development
program: (1) the percentage of systems created that year that have a current, approved WSP; (2)
the total number of approved SMAs operating in the State; (3) the percentage of new systems
requiring a certified operator that satisfy the certified operator requirement; (4) the number of
established critical water supply areas; and, (5) the percentage of new sources (serving new
systems) in use that have department approvals. A goal or performance measure has been set for
each reviewed element. DOH evaluates the need to make program changes if an element does not
meet its goal.
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West Virginia
I. Basis of Authority
A) Statutory Authority
West Virginia Code (WVC) §16-13C-2(b) gives specific authority to the West Virginia Division
of Health (WVDH) to establish requirements for capacity development:
"The Division of Health shall propose rules...that shall include, but are not limited to,
establishing requirements for capacity development...."
http://www.legis.state.wv.us/scripts/as_web.exe?total2+N+8455116
B) Implementing Authority
1) West Virginia Administrative Rules (WVAR) §64-61-4.1 prohibits the construction of a PWS
without first obtaining a permit from WVDH:
"A person shall obtain approval in writing from the director before establishing a public water
system, and the system shall be installed or established in accordance with the plans,
specifications, and instructions issued by, or approved in writing by the director."
http://www.wvdhhr.org/oehs/eed/regulations.html
2) WVAR §64-61-4.2 requires the application for a permit to construct to include a
demonstration of TMF capacity:
"The engineer, owner, or both shall provide proof to the director that the owner has the technical,
managerial, and financial capacity to operate and maintain the new system."
http://www.wvdhhr.org/oehs/eed/regulations.html
C) Responsible Agencies
The WVDH has been given authority to implement the capacity development program and adopt
regulations to address the capacity development provisions of the SDWA. The Public Service
Commission (PSC) has authority to review public utilities for the purpose of issuing CCNs and
to review rates. The State Revolving Fund division of WVDH performs a review of the required
business plan to ensure the adequacy of the system's revenues, financial resources, and
managerial structure.
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II. Control Points
A) Permit to Construct
Before a system is given permission to construct WVDH must review and approve:
Plans and specifications
A business plan
Operator requirements
Systems under the jurisdiction of PSC, must submit an application for a CCN which includes:
documentation on the need for the project, the approval of it's plans and specifications, and the
proof of a permit to construct. The PSC also reviews the proposed rate structure to ensure
sufficient funding for operation, maintenance, and debt retirement.
B) Permit to Operate
Following construction and the issuance of a CCN, if applicable, a system must have a final
inspection prior to being granted approval to operate.
III. Program Evaluation
To track the progress of the new system capacity development program and to refine it for the
future, the WVDH will conduct annual site inspections (sanitary surveys) to determine
compliance with drinking water regulations; confirm the authenticity of certified operator status;
review required financial reports (PSC); track technical assistance requests/reports, and; track
monitoring compliance rates using the SDWIS database.
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Wisconsin
I. Basis of Authority
A) Statutory Authority
Wisconsin Statute §281.17(9) gives the Wisconsin Department of Natural Resources (WDNR)
authority to assess capacity:
"The department may require owners of water systems to demonstrate the technical, managerial
and financial capacity..."
http://www.legis.state.wi.us/rsb/stats.html
B) Implementing Authority
Wisconsin Administrative Code (WAC) NR §809.931 requires new water systems to develop
and maintain capacity:
"All new community and non-transient noncommunity water systems constructed after
September 1, 1999, shall develop and maintain adequate financial, managerial and technical
capacity to meet the requirements of this chapter and 42 USC 300f to 300J-26."
http://folio.legis.state.wi.us/
C) Responsible Agency
The primary implementing agency is the WDNR. The Public Service Commission (PSC) must
approve municipal system water rates.
II. Control Points
A) Capacity Approval
All proposed community and noncommunity water systems in Wisconsin are required to pass a
plan review and a capacity evaluation process. DNR has developed special forms to help other-
than-municipal (OTM) and NTNCWSs system owners provide the necessary information for the
capacity evaluation. The following information is required as part of the Capacity Evaluation
Form:
Technical Capacity
Facility information, including system name and address and contact information
Water system information including the size, extent, and complexity of the water system
Well construction information
Water quality/treatment information
117
-------
Managerial Capacity
Operator qualifications
Status of all permits and approvals related to construction of a water system
Certification of owner's responsibilities and water system costs
Financial Capacity
Funding sources
Revenue sources for monitoring, O & M, and emergencies
Description of the method of payment for construction
How user charges will be established
Approval can be denied if the Capacity Evaluation is incomplete, adequate capacity is not
demonstrated, design and location standards are not met, or other applicable requirements are not
met.
III. Program Evaluation
Systems will be tracked and evaluated using their PWSID number along with their plans and
specifications approval numbers. New systems will be evaluated with results summarized to
look for progress.
118
-------
Wyoming
I. Basis of Authority
A) Statutory Authority
Wyoming Statutes §16-l-303(e) delegates to the Wyoming Department of Environmental
Quality (WDEQ) authority to require a demonstration of capacity from all new systems:
"The department shall:... (vi) Ensure that all new or modified community water systems and new
or modified nontransient noncommunity water systems commencing operation after October 1,
1999, demonstrate capacity development capabilities...."
http://legisweb.state.wy.us/titles/99titles/titlel6/tl6chpl.htm
B) Implementing Authority
Wyoming Water Quality Rules and Regulations §2286-5 requires new systems to demonstrate
capacity:
"All new or modified community and nontransient noncommunity water systems shall
demonstrate capacity development by accomplishing the following....(b) Completing a system
assessment of the managerial, technical, and financial aspects of the system using capacity
assessment worksheets provided by the administrator "
http://soswy.state.wy .us/cgi-win/sscgi_3.exe?3638
C) Responsible Agency
The responsibility or primacy for enforcing the drinking water standards in Wyoming remains
with the U.S. EPA Region 8. WDEQ administers the capacity development program.
II. Control Points
A) Construction Permit
The WDEQ requires systems to obtain a Construction Permit prior to construction or
modification of a water system. Permits will not be issued until TMF capacity has been
demonstrated and all conflicts within a Source Water Protection Plan have been addressed.
All new or modified community and nontransient noncommunity water systems shall
demonstrate capacity development by accomplishing the following:
Complying with the requirements for certified operators or have a division approved
compliance schedule in place to meet the requirements
119
-------
Completing a system assessment of the managerial, technical, and financial aspects of the
system using capacity assessment worksheets provided by the administrator
Developing a corrective action plan and implementation schedule if deficiencies are
identified by the division as a result of the capacity development assessment
Providing a plan to assure sufficient financial resources to cover system operation and
maintenance costs including debt service if financial capability deficiencies are identified
Demonstrating compliance with standards for construction, permitting, and minimum
design criteria for public water supplies
B) Operations and Maintenance Manual
An O & M manual must be approved by the WDEQ before treatment or pumping facility startup.
This manual must include:
A description of the facilities
An explanation of startup and normal operation procedures
A routine maintenance program
A records and reporting system
A sampling and analyses program
Staffing requirements
Identification of potential pollution sources
A safety program
Emergency plan and operating procedures
Manufacturer's manuals
III. Program Evaluation
To evaluate the success of their capacity development program for new systems, the WDEQ will
track compliance information in a database to compare new systems who have met capacity
requirements to previously existing systems which did not have to meet the requirements. If the
new system compliance rates are better than existing system rates, the program will be
considered successful. If the existing system rates are better or equal to new system rates, the
capacity program will be changed to improve new system compliance rates.
120
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Appendix A
Description of Factors for Table 1
Preliminary considerations
Local Government Approval
Engineering report
Adequacy of source
Source water protection
Capital Improvement Plan
Infrastructure adequacy
On- site inspection
Operator certification/training
O & M procedures
Emergency Response Plan
Plans and specifications
Organizational structure
Planning for changing community
needs
Record keeping and reporting
Public outreach programs
Knowledge of technical assistance
opportunities
Revenue sufficiency
Ability to repay existing and
projected debt
Rate & billing information
Credit worthiness
Annual budgeting
Capital budgeting (reserve account)
Emergency budgeting
Long-range financial planning
Designation of Satellite
Ownership/Operations
Refers to preliminary meetings, studies (i.e., consideration of alternatives), and other requirements
such as the attainment of land easements, etc.
Refers to the requirement that new systems obtain approval from the local government, or governing
body prior to the making an application with the State.
Refers to a comprehensive technical and analytical document prepared by a licensed Professional
Engineer that describes a water system from consideration of need, to the actual mechanics of how it
will operate. For some States, managerial and financial factors may be required as part of the
Engineering report. These factors are not specifically addressed in Table 1 .
Refers to documented procedures to verify source water quality and quantity.
Refers to the existence of a plan to protect source water integrity.
Refers to a planning document that specifies all needed capital projects, the reason for each project,
and associated costs.
Refers to a system's treatment, storage, distribution, and related infrastructure facilities and its ability
to adequately provide safe drinking water to consumers.
Refers to on-site inspection of facilities by State official.
Refers to the existence of a certified operator and/or operator training.
Refers to detailed written procedures for operating and maintaining a water system. Includes such
things as monitoring plans.
Refers to a plan that defines how a system responds in "routine" and "disaster" emergency situations.
Lists procedures (including public notification) to follow when emergencies occur.
(includes as-built plans and specifications)
Refers to system hierarchy.
Refers to local government, utility, or system's attempt to project changes in the service area and/or
customer population over the long-term, Includes projections on population growth.
Refers to the methods by which a system maintains records and reports monitoring data.
Refers to public education, solicitation of public input in decision-making, etc.
Refers to a system owner/operator's knowledge of technical assistance opportunities, either through
TA providers, additional education, by working with nearby water systems, etc.
Refers to a system's ability to cover water system expenses with revenues.
Refers to a system's ability to adequately cover existing and future debt based on current water
system revenue.
Refers to rate structure used and amount charged for service. Includes affordability considerations
and metering.
Refers to a water system's operating ratio. An operating ratio characterized by "revenues/expenses."
Credit worthiness ratios vary among States.
Refers to an annual financial plan or budget which accounts for all operations and management
expenses.
Refers to budgeting for future capital improvements.
Refers to "cash budgeting" or budgeting for an immediate need resulting from an emergency
situation.
Refers to budgeting for five or more years into the future. For some States managerial and financial
factors may be required as part of the Engineering report. These factors are not specifically addressed
in Table 1 .
Refers to an outside entity with the ability to take over management, and/or operational control
should a new water system become unable to supply adequate and safe drinking water.
121
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Table 1. Summary of Control Points and Factors Used to Assess Technical, Managerial, and Financial Capacity
State
AL
AK
AZ
AR
CA
CO
CT
DE
FL
GA
Control Points
Water Supply Permit
Permit to Construct
Construction Approval
Operation Approval1
Approval to Construct
Permit to Construct
Permit to Operate
Operating Permit2
Construction Approval
Certificate of C&N
New Source Approval
Approval to Construct
Approval to Operate
Construction Permit
Letter of Clearance
Construction Permit3
Preliminary Plans
Local Government Approval
Consideration of Alternatives/ Consolidation
Engineering Report* 1
Adequacy of Source
Source Water Protection
Capital Improvement Plan
Infrastructure Adequacy
c
o
'G
-------
State
HI
ID
IL
IN
IA
KS
KY
LA
Control Points
Operating Permit
Interim Approval
Pre-use Approval
Construction Approval
Construction Permit
Operating Permit
Water System Management Plan Approval
Construction Permit
Construction Permit Approval
Operation Permit Approval
PWS Permit Authorization to Construct
PWS Permit Authorization to Operate
Plans Approval
Certificate of C&N
Permit to Construct
Approval to Operate
Preliminary Plans 1
Local Government Approval
Consideration of Alternatives/ Consolidation 1
Engineering Report 1
Adequacy of Source
Source Water Protection 1
Capital Improvement Plan 1
Infrastructure Adequacy
c
o
'o
8.
CO
c
Operator Certification or Training
O & M Procedures
Emergency Operating Procedures
Plans & Specifications 1
Technical Factors
Identification of System Owners and Manager 1
Experience of Owners, Managers, Chief Elected 1
Organizational Structure 1
Planning for Changing System Needs 1
0)
to
>%
w
D)
c
'c
o
Q.
0)
OL
-a
c
ro
2
Q.
0)
5
T3
8
0)
OL
Public Outreach Programs 1
Procedure for Addressing Customer Concerns 1
Knowledge of Technical Assistance Opportunities 1
Managerial Factors
Revenue Sufficiency 1
Ability to Repay Existing and Projected Debt 1
c
o
15
|
D)
.C
m
3i
15
OL
Credit Worthiness 1
Annual Budgeting 1
Capital Budgeting (Reserve Accounts) 1
Emergency Budgeting 1
Designation of Satellite Owner/ Operator 1
Long-Range Financial Planning* ||
Financial Factors
123
-------
State
ME
MD
MA
Ml
MN
MS
MO
MT
NE
Control Points
Operations Permit
Permit to Construct
Permit to Operate
Source Approval
Construction Permit
Final Inspection
Plan Approval
Inspections
CPN
Construction Approval
Construction Permit
Permit to Dispense
Design Report
Letter of Accordance
Approval of Plans & Specs
Permit to Operate
Preliminary Plans 1
Local Government Approval
Consideration of Alternatives/ Consolidation 1
Engineering Report 1
Adequacy of Source
Source Water Protection 1
Capital Improvement Plan 1
Infrastructure Adequacy
c
o
'G
8.
CO
c
Operator Certification or Training
O & M Procedures
Emergency Operating Procedures
Plans & Specifications 1
Technical Factors
Identification of System Owners and Manager 1
Experience of Owners, Managers, Chief Elected 1
Organizational Structure 1
Planning for Changing System Needs 1
0)
to
>%
w
D)
c
'c
o
Q.
0)
OL
-a
c
ro
2
Q.
0)
5
T3
8
0)
OL
Public Outreach Programs 1
Procedure for Addressing Customer Concerns 1
Knowledge of Technical Assistance Opportunities 1
Managerial Factors
Revenue Sufficiency 1
Ability to Repay Existing and Projected Debt 1
C
O
"ro
|
D)
.C
m
IB
15
OL
Credit Worthiness 1
Annual Budgeting 1
Capital Budgeting (Reserve Accounts) 1
Emergency Budgeting 1
Designation of Satellite Owner/ Operator 1
Long-Range Financial Planning* ||
Financial Factors
124
-------
State
NV
NH
NJ
NM
NY
NC
Control Points
Operating Permit
Concept Approval
Construction Approval
Operational Approval
Construction Permit
Operating Permit
Approval to Construct
Approval Of Plans and Specs
New System Permit
Approval Of Proposed Rate
Operator Certification
Permission of State Comptroller
Authorization to Construct
Final Approval
Preliminary Plans 1
Local Government Approval
Consideration of Alternatives/ Consolidation 1
Engineering Report 1
Adequacy of Source
Source Water Protection 1
Capital Improvement Plan 1
Infrastructure Adequacy
c
o
'G
8.
CO
c
Operator Certification or Training
O & M Procedures
Emergency Operating Procedures
Plans & Specifications 1
Technical Factors
Identification of System Owners and Manager 1
Experience of Owners, Managers, Chief Elected 1
Organizational Structure 1
Planning for Changing System Needs 1
0)
to
>%
w
D)
c
'c
o
Q.
0)
OL
-a
c
ro
2
Q.
0)
5
T3
8
0)
OL
Public Outreach Programs 1
Procedure for Addressing Customer Concerns 1
Knowledge of Technical Assistance Opportunities 1
Managerial Factors
Revenue Sufficiency 1
Ability to Repay Existing and Projected Debt 1
C
O
"ro
|
D)
.C
m
IB
15
OL
Credit Worthiness 1
Annual Budgeting 1
Capital Budgeting (Reserve Accounts) 1
Emergency Budgeting 1
Designation of Satellite Owner/ Operator 1
Long-Range Financial Planning* ||
Financial Factors
125
-------
State
ND
OH
OK
OR
PA
PR
Rl
SC
Control Points
Construction Approval
Letter of Approval
Approval of Plans
Permit to Construct
Permit to Operate
Construction Approval
Operating Approval4
Construct Permit
Operating Permit
Development Endorsement
Construction Endorsement
Operation Endorsement
Licensure to Operate
Construction Permit
Preliminary Plans 1
Local Government Approval
Consideration of Alternatives/ Consolidation 1
Engineering Report 1
Adequacy of Source
Source Water Protection 1
Capital Improvement Plan 1
Infrastructure Adequacy
c
o
'G
8.
CO
c
Operator Certification or Training
O & M Procedures
Emergency Operating Procedures
Plans & Specifications 1
Technical Factors
Identification of System Owners and Manager 1
Experience of Owners, Managers, Chief Elected 1
Organizational Structure 1
Planning for Changing System Needs 1
0)
to
>%
w
D)
c
'c
o
Q.
0)
OL
-a
c
ro
2
Q.
0)
5
T3
8
0)
OL
Public Outreach Programs 1
Procedure for Addressing Customer Concerns 1
Knowledge of Technical Assistance Opportunities 1
Managerial Factors
Revenue Sufficiency 1
Ability to Repay Existing and Projected Debt 1
c
o
15
|
D)
.C
m
3i
15
OL
Credit Worthiness 1
Annual Budgeting 1
Capital Budgeting (Reserve Accounts) 1
Emergency Budgeting 1
Designation of Satellite Owner/ Operator 1
Long-Range Financial Planning* |
Financial Factors
126
-------
State
SD
TN
TX
UT
VT
VA
WA
Control Points
Final Construction Approval
Certificate of Approval
Approval to Construct
Final Construction Inspection
Permit to Construct
Notification on Completion
Plan Approval
Operating Permit
Construction Permit
Operations Permit
Construct Permit
Operating Permit
Construction Approval
Operating Approval
Preliminary Plans 1
Local Government Approval
Consideration of Alternatives/ Consolidation 1
Engineering Report 1
Adequacy of Source
Source Water Protection 1
Capital Improvement Plan 1
Infrastructure Adequacy
c
o
'G
8.
CO
c
Operator Certification or Training
O & M Procedures
Emergency Operating Procedures
Plans & Specifications 1
Technical Factors
Identification of System Owners and Manager 1
Experience of Owners, Managers, Chief Elected 1
Organizational Structure 1
Planning for Changing System Needs 1
0)
to
>%
w
D)
c
'c
o
Q.
0)
OL
-a
c
ro
2
Q.
0)
5
T3
8
0)
OL
Public Outreach Programs 1
Procedure for Addressing Customer Concerns 1
Knowledge of Technical Assistance Opportunities 1
Managerial Factors
Revenue Sufficiency 1
Ability to Repay Existing and Projected Debt 1
c
o
15
|
D)
.C
m
3i
15
OL
Credit Worthiness 1
Annual Budgeting 1
Capital Budgeting (Reserve Accounts) 1
Emergency Budgeting 1
Designation of Satellite Owner/ Operator 1
Long-Range Financial Planning* ||
Financial Factors
121
-------
State
wv
Wl
WY
Control Points
Permit to Construct
Operator Certification
Permit to Operate
Capacity Evaluation Form Approval
Operator Certification
Construction Permit
O & M Manual
Operator Certification
Preliminary Plans
Local Government Approval
c
0
o
0
^
Consideration of Alternatives
Engineering Report
Adequacy of Source
Source Water Protection
Capital Improvement Plan
Infrastructure Adequacy
c
o
'o
a
CO
c
D)
c
'c
ro
0
c
o
I
'E
0)
O
1?
0)
CL
0
O & M Procedures
in
0)
-a
Emergency Operating Proce
Plans & Specifications
Technical Factors
0)
D)
ro
2
P
(0
-------
Table 2. Technical, Managerial, and Financial Capacity Assessment Comparison
State
AL
AK
AR
AZ
CA
CO
CT
DE
FL
GA
HI
ID
Statute
Code of Alabama Acts 1977, No. 805,
p. 1389, s. 17
AS §46.03.720
Arkansas Annotated Code §20-7-109
ARS §49-353.A
CHSC §116540(a)
Colorado Revised Statutes §25-1-1 07(1 )(x)
CGS §16-262m CGS §8-25a CGS §25-33(b)
Delaware House Bill 427 (Title 16.1 .122. (5))
FS 403.8615(1)
GA Code annotated s. 1 2-5-1 79(b)
HRS §340E-2.5
Idaho Code, §39-105(3)(e) and 50-1326
Regulation
AAC §335-7-4-.06
18 AAC 80.207, 18AAC 80.207
Rules and Regulations Pertaining to Water
Systems (§VII, §XX, §XXI)
AAC §R1 8-4-602
CHSC §116525(a)
Colorado Primary Drinking Water Regulations
§§2.1. 3 and 2. 1.4
CSA§16-262m
PHC §19-13-6102
Regulations Governing Public Drinking Water
§22.211 A, B and §22.21 2A,B
FAC §62-555.525(2)
EPD Rules 391-3-5-..04(7)(b) 391-3-5-.17(3)
HAR§1 1-20-30 and §11 -20-29. 5
IDAPA §16.01 .08.549, §37.03.09.035.01, and
§37.03.09.045.01
Control Points
Construction
Pre Approval
T
M
F
Operation
Pre Approval
T
M
F
129
-------
State
IL
IN
IA
KS
KY
LA
ME
MD
MA
Ml
Statute
Illinois Compiled Statutes §415 ILCS 5/15
Indiana Code §13-1 8-21 -3(d)
1C Chapter 4556.173(3) and 174(4a)
KSA §65-1 71m; KSA§65-163
XII KRS 151 .630; XII KRS 151.634;
KRS 278.020
Louisiana Regular Session Statutes §40:4(A)
and 40:5
22MRSA§2612-A
Maryland Annotated Code §9-417
MGLc.111,s. 160
Michigan Compiled Law (Michigan Safe
Drinking Water Act, 1976 PA 399, as amended
(Act 399)) §§ 325.325.1 002(b) and (n),
325.1 003b(1)(a) and (2), 325.1004(2) and (4),
and 325.1005(1)(d), 325.1008, 325.1010,
325.1014(1), and 325.1015(1), (2), and (4).
Regulation
Illinois Administrative Code, Subtitle F, Subpart G,
§652.701
327 Indiana Administrative Code 8-3-1.1
567 IAC 43.3(3), 8(a), and 42.2(2)
§28-1 5-1 6(a)(1)
401 KAR 8:100; 807 KAR 5:001 , §9
LAC §48:V.7713, SC §12.002-2
Maine Drinking Water Rules 10-144,
Chapter 231, Section 3.D
CoMAR §26.04.01 .36(c) and 03.12.08
31 OCMR 22.04
Michigan Administrative Code (Michigan Safe
Drinking Water Act, 1976 PA 399, as amended
(Act 399) Administrative Rules) R 325.10504 R
325.10505, and R 325. 11305etseq.
Control Points
Construction
Pre Approval
T
M
F
Operation
Pre Approval
T
M
F
130
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State
MN
MS
MO
MT
NE
NV
NH
NJ
NM
NY
NC
Statute
1999 Minnesota Statutes §144.383
MC 41 -26-8(2)
MoRS §640.1 15.3
Montana Code Annotated
§§75-6-10375-6-121
NS §71-5305.01
17NRS445A.860
RSA 485:3 XII; RSA 485:8
NJSA58:12A-4.c.(5)(b)
New Mexico Statute §74-1-7
Public Health Law 225; Environmental
Conservation Law 15-1501 and 1503
NCGS130A-317(c)
Regulation
Minnesota Rule 4720.001 2 Subpart 1 ,
and 4720.0010
MSBH, Environmental Regulations,
Division 300, Part 301
§10CRS60-3.030(2)(b), .010(1)(A) and (D)
Administrative Rules of Montana §17.38.101
through §17. 38. 607
§1 79 NAC 2(007) and (015)
NAC445A.13.2and445A.14
Env-Ws 370.04; Env-Ws 371
§20NMAC7.1.502(D)(2) and (6)
Title 10 Subparts 5-1.22 and 5.4; 6NYCRR Part
601
15ANCAC 18C§.0300
Control Points
Construction
Pre Approval
T
M
F
Operation
Pre Approval
T
M
F
131
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State
ND
OH
OK
OR
PA
PR
Rl
SC
SD
TN
TX
Statute
North Dakota Administrative Code
§61-28.1-03
Ohio Revised Code §§6109.24 and 6109.07
Oklahoma Statute §27A-2-6-302 to 305
ORS 448.1 31
Laws of PA Act 1984-43
(§5(b)(5), §7(a) and (b)
Act No. 5 and Act No. 32
RIGL §46-13-18; RIGL §46-13-2
SCCL §45-55-120(0)
South Dakota Codified Laws Annotated §34A-
3A-25
TCA §69-221 -704(2)(E); TCA §221-706(a)(3)
Texas Health and Safety Code §341.0315;
341.035
Regulation
North Dakota Administrative Code
§33-17-01-19
Ohio Administrative Code §3745-87-02
State Regulations §252:625-1-8 and -11
OAR §333-061-0060 and §333-061-0061
§25PACode 109. 501 (a) and (c) and
109. 504 and 505
Regulation No. 50
R§46-13-DWQ
SCCR §61-58(B)(141); SCCR §61-58.1
South Dakota Administrative Rules §74:04:09
DEC Rule 1200-05-1 -.04(70);
DEC Rule 1200-05-1-. 17(37);
DEC Rule 1200-05-1-. 17(19);
DEC Rule 1200-05010.04 (2) and (3)
TAG §30:290.39(h.1) and (h.3); TWC §13.242
Control Points
Construction
Pre Approval
T
M
F
Operation
Pre Approval
T
M
F
132
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State
UT
VT
VA
WA
WV
Wl
WY
Statute
Utah Code Annotated 19-04-104 and 19-5-104
10 VSA§1672(b)(10)
10 VSA§1685
Virginia Code §32.1-169 and 172
RCW 43.20.05(2) and 70.1 19A.1 00(4)
West Virginia Code §16-1 3C2(b); WVC 24-2-1 1
Wisconsin Statute §281.17(9)
Wyoming Statutes §16-1-303(e)
Regulation
Utah Administrative Code §R309-352-5(2)
Vermont Water Supply Rule Chapter 21 ,
Subchapter21-15
§12VAC5-590-190
WAC 246-290-100 through 246-290-130 and 246-
293-190
§64CSR61-4.1,-4.2,-4.6
Wisconsin Administrative Code §§NR 809.931
and NR 809. 933
Wyoming Current Rules §2285-5
Control Points
Construction
Pre Approval
T
M
F
Operation
Pre Approval
T
M
F
133
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