Water issues for the state, from the state?
Hello Hollis!
The first outcries I heard regarding foreign ownership of water rights called for government to intervene in a private sale that had already taken place, because ‘that’s our water’. Come to find out, the deal was initiated by Governor Sununu’s economic development agency, and the Pennichuck water utility admitted that the income from this new bottling business is welcome.
When business revenue and infrastructure investment are in short supply, opportunists with money make gains. Anti-regulation advocates have encouraged foreign purchase of American land and water and global oligarchs continue to reap profits in every nation, without ethical or environmental guardrails, at our expense.
Those looking for a villain might have to broaden their gaze to see that in a world where cash is king, borders and protections mysteriously dissolve behind closed doors unless we hold our government accountable. We just watched our military bend down to roll out the red carpet for a long-established enemy of this country. Either we protect American interests from our enemies, or we sell to the highest bidder. We cannot have it both ways.
The latest Sunday Telegraph had a front-page article titled, ‘Water Controversy Called a State Issue’. The controversy came to local attention when Republican politicians sounded the alarm that China’s largest water company (Nongfu Spring) had purchased a business formerly owned by Stag Industrial at 80 Northwest Boulevard, Nashua via its U.S. affiliate. The concern was that Nashua’s municipal water utility, Pennichuck, and its water supply, might be at risk from a foreign adversary. The ensuing public outcry echoed this fear and resulted in residents showing up to Nashua’s Alderman meeting to demand answers.
The Telegraph points out that some initial assumptions were incorrect and tries to provide insight as to how private and public entities interact with government. Mayor Donchess told attendees that the Nongfu Spring deal was part of “a state economic initiative”, “driven by Concord”, and clarified that as such, the city was neither informed nor asked for approval.
As your elected representative, I believe this situation highlights two critical issues we must address:
- National Security: The national security implications of allowing foreign adversaries to own and access businesses, land, or water rights.
- Water Resources: The fear of losing essential water capacity in our region.
I agree on both counts. I’m in favor of state policy to protects Granite Staters from foreign adversaries being able to buy up strategic businesses, buildings, land, or water rights, that threaten the security, environment, or economic stability of our communities. When it comes to land, air and water, we are facing new challenges in the 21st century (like equity funds buying up single-family homes/family farms, and concerns for clean and adequate water). The problems are getting more complex, and this means defining new and enforceable protections, i.e. regulations.
On item #1, NH State Senator Regina Birdsell added language regarding foreign adversaries to this year’s budget trailer bill when the issue of Chinese ownership of a Nashua bottling company sale first surfaced. She inserted a list of five enemy nations: China, Russia, North Korea, etc. I believe this approach is insufficient to stop global behemoths who regularly set up U.S. affiliates to create a legal loophole (which is apparently the case with Nongfu Spring). The legislature could quickly review existing legal frameworks adopted by other U.S. states that have passed laws protecting U.S. resources against foreign adversaries without reinventing the wheel or setting NH up for costly lawsuits.
In February, the House heard a compelling story from NH Representative Allessandra Murray, who found herself in a bidding war with a hedge fund when she and her husband went looking for their first house.
HB623 made a lot of sense, (“establishes a legislative committee to study the merits of and procedures and processes for prohibiting or limiting corporations from purchasing single-family homes”), and for the same reason as the concerns about who has access to our water supply, Rep Murray’s bill asked for the state’s help in protecting the American dream for young families. She told us a hedge fund outbid her for the house they wanted, then reached out to see if they would like to lease it!
Her bill was killed (Inexpedient to Legislate) in a partisan vote, 216 yeas, to 141 nays. The argument went that the state could not legally prevent corporations from buying up houses. But this regulatory idea didn’t originate in New Hampshire; other states are protecting first-time home buyers from corporate raiding of home stock. We can fix this; so is it a lack of know-how, or will, that is missing?
On issue #2, the concern for whether Pennichuck has enough water supply to support a “second 2 million gallon per day bottler” in the area (Anheuser-Busch in Merrimack being the first); details below came from this article.
According to John Boisvert, the CEO of Pennichuck, the potential beverage operation consumption of water will be well within their capacity to supply, and the additional paying customers would be welcome to the system.
“Right now, we average going out of our treatment facility about 11 or 12 million gallons a day. We have a treating capacity of 30-plus million gallons a day and a permitted withdrawal capacity in-excess of 30 million gallons a day. We have plenty of capacity to handle that. That’s not a concern to us,” said Boisvert.
On the subject of foreign ownership, Boisvert was explicit, saying, “We are a regulated utility. We are governed by the laws of the state of New Hampshire, and we treat every person and company that comes to our doors in our franchise areas as a potential customer equally. We can’t look at the nationality of ownership or anything; it doesn’t matter. We have a responsibility to serve.”
Mr. Boisvert is right. As a regulated utility, he must figure out whether a particular water use can be safely accommodated by the system he manages. He has no say over whether the purchasing company is domestic or foreign. The article says that adding 2 million gallons a day to the existing utility output comes in well under half the daily total output of 30+ million gallons per day for Pennichuck. It also points out that a similar deal with Anheuser-Busch never resulted in anyone voicing concerns about the water-use of their bottling facility. The point is that crafting laws to cover one instance of potential harm, in the 21st century, is increasingly difficult.
Prohibitions on water uses or restrictions would need to come from the State via the NH Public Utilities Commission. Pennichuck has a pending case (DE25-023) being heard on Sept 19th and public comment is open until September 29th. (The case is not related to the sale of the bottling business, but you could submit a comment).
Finally, on the difficulty in making good laws to protect people, I was prime sponsor of a bipartisan Water in Subdivisions bill (HB568), designed to offer planning boards the option of requesting an upfront water report for housing subdivisions that might hurt existing wells, or result in new homes without adequate water, both of which has happened. HB568 had bipartisan co-sponsorship from Brookline’s Rep Diane Pauer and Merrimack’s Rep Bill Boyer. Brookline Planning Board member Eric Pauer submitted testimony in favor, and the NH Municipal Association and NH Dept of Environmental Services were on record in support. Yet, the chair of the Resources and Recreation Committee concluded HB568 was “not needed” after speaking with developers who said it might increase their costs; the bill was Tabled.
So, the issues we face today are not confined to potential foreign threats. Sometimes money and influence prevent officials from doing what’s right. Protecting people and resources means anticipating future problems, knowing how to effectively use the tools of government, and most importantly, remembering to put people before profits.
— — Hollis Brookline News Online
By Representative Kat McGhee, M.Ed., PMP
August 21, 2025