General Operations

(a)Rates for Services. The Authority shall apply to the Public Utilities Commission

(PUC)for approval for its rates for its services. In order to obtain such approval, the Authority must demonstrate to the PUC that:

(1)there is a public need for the services being provided, and

(2)the Authority’s provision of said services benefits the community.

(b)Integration and Inter-operation of Systems. It shall be the aim of the Authority to provide Guam with a fully integrated inter-operating water and wastewater system by combining all U.S. Military systems in use on Guam to be thereafter administered under civilian authority for both the military and civilian communities. Accordingly, the Authority shall develop a proposal for acquiring full ownership in and operation of existing U.S. Military water and wastewater utility systems situated on Guam for submission to I Liheslaturan Guåhan for its prior approval, as well as full ownership and use of all Guam fresh water resources, surface and/or subsurface, within Federal lands and property deemed appropriate for this purpose. CH. 14 GUAM WATERWORKS AUTHORITY

(1)Joint Operating Agreements. The Authority shall enter into one

(1)or more joint operating agreements with private contractors operating U.S. Military water production and distribution systems or wastewater disposal systems, or both, regulated under the Federal Clean Water Act and Safe Drinking Water Act, in conformance with its rules and regulations and with the statutory authority contained in this Chapter. Under such a joint operating agreement, the Authority and the private contractor’s joint operations shall be integrated into the Authority’s Island-wide waterworks and wastewater disposal systems.

(2)Regulation of Such Private Contractors. The Authority shall duly promulgate new or expanded rules and regulations, in coordination with the Guam Environmental Protection Agency, concerning the operational monitoring, surveillance and reporting of such a private contractor or contractors operating a U.S. Military water production and distribution system or wastewater system, or both, which are being operated under a joint operating agreement with the Authority. No permit or license shall be issued until the operator is in full compliance with Federal and Guam statutes and rules, and the PUC has approved the operator’s operation and its joint operating agreement with the Authority.