1. A county shall not impose the tax authorized by NRS 244.3661 on the use of water by customers of a supplier of water that is a public utility, or make changes to the ordinance imposing such a tax, without the prior approval of the Commission.

2. The Commission shall review an application made by a county for the approval required by subsection 1 in the same manner and to the same extent as it would review an application by a public utility for increased rates based upon construction by the public utility of the same facility.

3. The Commission shall not approve the imposition of the tax or changes to the ordinance imposing the tax authorized by NRS 244.3661 unless, after an investigation and a hearing, it determines:

(a) The basis for the need of the facility;

(b) The nature of the probable effect on the environment;

(c) That the facility represents the minimum adverse effect on the environment, considering the state of available technology and the nature and economics of the various alternatives and other pertinent considerations;

(d) That the location of the facility as proposed conforms to applicable state and local laws and any regulations issued pursuant thereto;

(e) That the facility will serve the public interest;

(f) That the tax which the county proposes to impose is just and reasonable and consistent with the policies of the Commission applicable to rates and rate design for public utilities;

(g) That the aggregate amount generated by the tax will be sufficient to provide for the payment of the obligations issued by the county to acquire and construct the new facility;

(h) That the water treatment services of the new facility will be available for use by the public utility for as long as the public utility holds a certificate of public convenience and necessity to provide service as a water utility within the boundaries of the county on terms and conditions which are reasonable and just to the utility and its customers;

(i) That the construction of the facility is consistent with a resource plan approved by the Commission and the facility can be integrated into existing water systems;

(j) That the financing of the facility pursuant to this section is economically more advantageous to the customers of the public utility who will pay the tax than any alternative means of financing a new facility by the public utility; and

(k) That the construction of the facility and the imposition of the tax is otherwise in the public interest.

4. The Commission shall adopt such regulations as are necessary to carry out the provisions of this section.

(Added to NRS by 1991, 1941)