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H 2324

An Act providing for the establishment of sustainable water resource funds

194th Legislature (2025-2026) Introduced by Jamie Eldridge and 1 co-sponsor

Allows towns and districts to set up Sustainable Water Resource Funds funded by local fees to curb environmental impacts of water use and fund water protections.

Read second and ordered to a third reading
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Bill Summary · H 2324

Summary of House Bill H.2324: An Act providing for the establishment of sustainable water resource funds

Overview

H.2324 proposes a new Section 39N to Chapter 40 of the General Laws, empowering municipalities and certain water-related authorities to create dedicated Sustainable Water Resource Funds funded by new local fees. The objective is to remedy and offset environmental impacts from increased water withdrawals, sewering, wastewater discharges, and other actions that affect groundwater and surface waters, while supporting water conservation and ecological health.

Purpose and Intent

  • Establish a local mechanism to finance measures that protect and restore the Commonwealth’s water resources in response to increased demand and associated environmental impacts.
  • Promote environmental benefits such as improved recharge, habitat, and water efficiency through targeted investments.
  • Allow local governments to retain control over how funds are assessed, collected, and expended within the constraints of the statute.

Key Provisions

Fee Establishment and Scope

  • Applicable entities: cities, towns, water/wastewater/stormwater districts, or statutory authorities operating water or wastewater/stormwater systems that elect to adopt this section.
  • Fees: a “reasonable fee” assessed to fund measures addressing environmental impacts of water withdrawals and related activities.
  • Basis for the fee: may be based on retaining within the basin or saving at least one gallon, but no more than ten gallons, for every gallon of increased water or sewer demand or net impairment of groundwater recharge.
  • Separate fee structures may be established for different uses (e.g., residential vs. commercial).

Governance and Expenditure

  • Designation of a responsible board, commission, or official to assess, collect, and expend the fee.
  • Funds deposited in separate accounts titled “Sustainable Water Resource Funds” for drinking water, wastewater, or stormwater.
  • Principal and interest to be expended at the direction of the designated entity without additional appropriation, strictly for purposes authorized in the section.
  • Funds may receive additional support from gifts, grants, federal reimbursements, penalties, or environmental project payments; earned interest credited to the Fund.
  • Acceptance of the section by a municipality or authority is revocable; any remaining funds must be expended in accordance with the section.

Affected Entities

  • Local governments and authorities that operate water distribution, wastewater collection, or stormwater systems and opt into the program.
  • Residents and businesses within participating jurisdictions may indirectly bear the new fees as part of local utility costs.

Procedural and Timeline Aspects

  • Introduced: February 27, 2025.
  • Related actions show ongoing committee process, hearings (notably June 10, 2025) and favorable reporting later in 2025.
  • Status: Read second and ordered to a third reading as of the latest available record.
  • Related bills: Similar matter previously filed as House 2099 (2023-2024); HD 2606 is the current docket number.

Potential Impacts

  • Creates a dedicated, locally controlled funding stream for environmental water protections and infrastructure improvements.
  • Could improve resilience of drinking water, wastewater, and stormwater systems, and support habitat restoration and drought resilience.
  • Administrative duties shift to designated local boards/officials, with dedicated accounting and governance requirements.
  • Localities must consider rate impacts on customers and balance with public benefits of enhanced water sustainability.

Compiled from official sources — confirm details with the bill’s official record.

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