delete PART 420—BASIN REGULATIONS—WATER SUPPLY CHARGES
This regulation establishes water supply charges for surface water users in the Delaware River Basin, administered by the Delaware River Basin Commission. It requires payment from users based on consumptive ($105/million gallons) and non-consumptive ($1.05/million gallons) use, with annual CPI adjustments. It defines 'legal entitlement' based on historical baselines (1961/1971) to determine exemption amounts, mandates certificates of entitlement with severe transfer restrictions, imposes quarterly reporting, and charges 1% monthly interest on late payments. The regulation includes exemptions for small uses, agricultural transfers, and hydroelectric facilities, with complex termination provisions triggered by ownership changes as low as 20%.
This interstate compact regulation imposes substantial hidden costs on water users through bureaucratic certificates, restrictive transfer rules that create artificial scarcity, and punitive 12% annual interest penalties. The historical entitlement system locks in 1961/1971 baselines, barring new entrants and violating equal protection. The 20% ownership change trigger terminates certificates, destroying property rights and investment security. Reporting burdens and admin costs fall disproportionately on small users. The Commission's pricing power without democratic accountability represents unaccountable taxation. The regulation persists due to regulatory capture by incumbents who benefit from barriers to competition.