Senators hear case for $28.87 million to continue Southern New Hampshire regional water pipeline

Senator Darrell Abbas asked the Senate Finance Committee to fund $28,870,000 for the Department of Environmental Services to continue Phase 2 of the Southern New Hampshire Regional Water Pipeline, saying the work would add regional drinking-water capacity and support housing and economic development.

Abbas, the sponsor, said Phase 2 would “service up to 30,000 future users” and described pumps that would be hosted in Derry; the project would move water from Manchester through piping installed in Phase 1 and add pumping and delivery capacity for neighboring towns including Salem, Plaistow, Windham, Atkinson and Hampstead.

The bill matters because local officials say buildable lots and approved housing projects cannot move forward without reliable municipal water. “Simply saying, let's build more ... that's not gonna solve the problem if you don't have municipal services,” Abbas told the committee. He described an immediate capacity and contamination pressure on existing local sources and said the project will make the Southern New Hampshire region more resilient for housing and commercial growth.

Town and utility officials described the project as regional infrastructure rather than a single-town improvement. Brian Gerachello, a Derry resident and longtime Derry town councilor, said Derry entered a long-term arrangement to buy and wheel Manchester water through Derry’s system and that Derry receives ongoing revenue from flowage. “Derry makes money, in perpetuity, depending on how much water flows through the pipes,” Gerachello said.

Roy Sorensen, municipal services director for Salem and chair of the Southern New Hampshire Regional Partners group, told senators Phase 1 already delivers about 1 million gallons per day across the Derry transmission and that Salem and other communities use Phase 1 supply. Sorensen described past contamination of Salem wells and recent cyanobacteria events that reduce local source reliability, and he said redundancy from the pipeline helps communities manage seasonal droughts and contamination risks.

Bob Scott, commissioner of the Department of Environmental Services, said DES takes no position on the funding vehicle but described the towns’ roles: the state and regional partners have provided funding to build trunk infrastructure while towns remain responsible for distribution, operation and maintenance. He told the committee the project is the only regional project of its kind in the state and that it has helped communities manage drought and contamination.

Several senators asked whether the project would impose additional costs on municipalities, whether developers or towns should contribute, and about whether local planning boards identified the project as having a regional impact. Abbas and witnesses said prior planning and an interconnection agreement exist: Sorensen said members signed a Southern New Hampshire Regional Water Interconnection Agreement in February 2019. Witnesses also described prior state investments—ARPA dollars and other funds—that seeded earlier phases.

Concerns raised included: the project’s rising cost if delayed, how to apportion costs among towns and developers, and whether the current planning boards had followed regional-impact procedures. Senator Waters asked whether the earlier work had been justified by contamination mitigation (PFAS, MTBE) and whether this phase was primarily for development capacity; speakers answered that both contamination mitigation and development capacity are part of the purpose.

No formal final committee vote on the bill appears in the public hearing record included in the transcript; committee discussion during executive session shows members considered amendments and future actions but does not record a public roll-call outcome.

What’s next: the measure remains before the Finance Committee. Committee members asked for follow-up details on planning-board regional-impact findings and on cost-sharing options; DES and town officials offered to supply additional material.