CHAPTER 94 HB 1435-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES SESSION 26-2345 07/08 HOUSE BILL 1435-FN AN ACT relative to changes to the Winnipesaukee river basin control replacement fund.

CHAPTER 94 HB 1435-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 26-2345 07/08 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty-Six AN ACT relative to changes to the Winnipesaukee river basin control replacement fund.

194:1 Water Management and Protection;

HB 1435-FN - VERSION ADOPTED BY BOTH BODIES - Page 2 - VIII.

[All contracts paid for using the fund shall be submitted to the governor and council for approval] If a member exits the system or there is consolidation of members, the fund shall be adjusted to CHAPTER 94 HB 1435-FN - FINAL VERSION - Page 2 - reflect modified projected use of the equipment and other infrastructure, fund balances, and expenditure reimbursement obligations.

294:2 Water Management and Protection;

[Notwithstanding any other provision of law to the contrary, this capitalization value shall apply to the valuation that occurred on June 30, 2024.] 394:3 Effective Date.

LBAApproved: 26-2345 11/24/25 HB 1435-FN- FISCAL NOTE AS INTRODUCED AN ACT relative to changes to the Winnipesaukee river basin control replacement fund.

FISCALMay IMPACT:28, 2026 Effective Date:

EstimatedI. State Impact FY 2026 FY 2027 FY 2028 FY 2029 Revenue ($994,340) ($994,340) ($994,340) ($994,340) Revenue Fund(s) Winnipesaukee River Basin Replacement Fund Expenditures* Indeterminable Indeterminable Indeterminable Indeterminable Funding Source(s) Winnipesaukee River Basin Replacement Fund Appropriations* $0 $0 $0 $0 Funding Source(s) None *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill Estimated Political Subdivision Impact FY 2026 FY 2027 FY 2028 FY 2029 County Revenue $0 $0 $0 $0 County Expenditures $0 $0 $0 $0 Local Revenue $0 $0 $0 $0 Local Expenditures ($994,340) ($994,340) ($994,340) ($994,340) METHODOLOGY:

ThisSection bill2 reduceseffective theJune capitalization30, rate2029. for the Winnipesaukee River Basin Replacement Fund from 5% to 2% of the value of depreciable assets, collected over a ten-year period.

TheII. bill also updates statutory language regarding adjustments when members join, exit, or consolidate within the system.

ThisRemainder billeffective willMay take28, effect2026 upon passage, with the capitalization assessment percentage change beginning on June 30, 2024, and the FY 2025 annual assessment based on the FY 2025 to FY 2029 current replacement cost asset valuation.

The Department of Environmental Services states this bill will result in a decrease in state revenues, an indeterminable impact on state expenditures, and a decrease in local expenditures beginning in FY 2026.

Under current law, the Replacement Fund is capitalized through assessments on the ten Winnipesaukee River Basin communities.

The existing capitalization rate collects 5% of depreciable asset value over ten fiscal years, effectively a 0.5% annual assessment.

Based on the FY 2025 to FY 2029 valuation of $314,446,852, annual assessments total approximately $1,657,234.

The bill reduces the capitalization percentage to 2% collected over ten fiscal years, effectively a 0.2% annual assessment.

Using the same valuation, annual assessments would total approximately $662,894, resulting in an annual reduction of $994,340.

Because member communities pay 100% of the Replacement Fund assessment, this change reduces state revenues in Winnipesaukee River Basin Replacement Fund by $994,340 per year and reduces local expenditures by the same amount.

Replacement Fund expenditures remain indeterminable as they vary yearly based on repair and replacement needs at Winnipesaukee River Basin Program facilities.

The bill does not change the purpose or operation of the Replacement Fund, so expenditure levels will continue to fluctuate based on system conditions.

AGENCIES CONTACTED:

Department of Environmental Services