(a)When capacity under an original or amended discharge permit under 10 V.S.A. § 1263 is or has been granted to any municipality, as defined in 1 V.S.A. § 126, except existing town school districts or incorporated school districts, that capacity shall be allocated, in a manner consistent with a municipality’s obligation to its bondholders to establish rates and apply the proceeds as set forth in section 3616 of this title, pursuant to one of the following, whether in the form as adopted, or as later amended:
(1)An ordinance adopted under sections 1972 and 1973 of this title. This ordinance may authorize the municipality to include, in any specific allocation, phasing provisions and other conditions intended to implement provisions of a municipal plan adopted under section 4385 of this ti
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(a) When capacity under an original or amended discharge permit under 10 V.S.A. § 1263 is or has been granted to any municipality, as defined in 1 V.S.A. § 126, except existing town school districts or incorporated school districts, that capacity shall be allocated, in a manner consistent with a municipality’s obligation to its bondholders to establish rates and apply the proceeds as set forth in section 3616 of this title, pursuant to one of the following, whether in the form as adopted, or as later amended:
(1) An ordinance adopted under sections 1972 and 1973 of this title. This ordinance may authorize the municipality to include, in any specific allocation, phasing provisions and other conditions intended to implement provisions of a municipal plan adopted under section 4385 of this title or bylaws adopted under section 4442 of this title.
(2) Bylaws adopted under section 4442 of this title.
(3) Interim bylaws adopted under section 4415 of this title.
(b) Until an ordinance, interim bylaw, or bylaw for allocation of capacity is adopted by a municipality that grants zoning permits pursuant to the provisions of section 4449 of this title:
(1) Capacity may be allocated in amounts not to exceed 6,500 gallons per day, per recipient, and only upon granting of such a permit.
(2) Capacity allocated in conjunction with a permit granted pursuant to the provisions of section 4443 of this title shall revert to the municipality if the permit recipient has failed to initiate construction within one year of the issuance of the permit or has failed to complete construction within three years of the issuance of the permit. At the end of the three-year period, the reserve capacity associated with any unconstructed portion of the project, as determined by the legislative body of the municipality, shall revert to the issuing municipality unless that municipality has specifically required that construction proceed over a period longer than three years.
(3) The legislative body of the municipality shall make the final determination with respect to whether construction has been initiated or completed.
(c) Until an ordinance for allocation of capacity is adopted by a municipality that does not grant zoning permits pursuant to the provisions of section 4449 of this title:
(1) Capacity may be allocated only in amounts not to exceed 6,500 gallons per day, per recipient, and only upon granting of capacity by the municipal legislative body during a duly warned meeting.
(2) Capacity allocated under this subsection shall revert to the municipality if the capacity recipient has failed to initiate construction within one year of the issuance of the allocation or has failed to complete construction within three years of the issuance of the allocation. At the end of the three-year period, the reserve capacity associated with any unconstructed portion of the project, as determined by the legislative body of the municipality, shall revert to the issuing municipality unless that municipality has specifically required that construction proceed over a period longer than three years.
(3) The legislative body of the municipality shall make the final determination with respect to whether construction has been initiated or completed.
(d) When a municipality is not a town, city, or incorporated village, the towns, cities, or incorporated villages in which the municipality is located shall allocate capacity within their corporate boundaries in accordance with the provisions of this section.
(e) This section shall not apply to capacity that is committed or allocated before July 1, 1989. Capacity is committed by a town, city, incorporated village, or fire district when, following issuance of an original or amended discharge permit, formal action to commit is taken by the legislative body at a duly warned meeting. Capacity obtained by a municipality through an intermunicipal contract that existed on July 1, 1989, shall be treated as capacity granted to that municipality, and shall be distributed by that municipality according to the provisions of this section. (Added 1989, No. 116, § 1; amended 2003, No. 63, § 52, eff. June 11, 2003; 2019, No. 131 (Adj. Sess.), § 267.)