System Development Charge (SDC) Implementation Guidelines

The Guam Waterworks Authority presents the System Development Charge (SDC) Implementation Guidelines (Revised August 2017) to the public for use and reference. This guideline has been updated to take into account recent changes/updates to Guam Public Laws applicable to SDC and to provide better clarification on several new aspects about the SDC. More importantly the guidelines are additional and supplemental to, and not in substitution of, any other requirements imposed by Guam law regarding the development of land, the issuance of building permits or the issuance of certificates of occupancy. The guidelines are adopted by the PUC pursuant to 12 G.C.A. § 12116.5.

What are SDCs?
• SDCs apply to new utility connections or existing connections that increase utility service demands
• SDCs were put in place to recover additional costs of constructing, expanding, upgrading and repairing utility facilities and are common throughout the United States
• SDC cost may be lowered and/or amortized (monthly payment plan) for qualified residential construction
• All other requests for new connection must pay SDCs in full prior to building permit application approval.
• Guidelines cover Offset Policy that allows SDC credits when a developer constructs offsite improvement.
• SDC funds cannot be used for utility line extensions, per the SDC Implementation Guidelines and Title 28. See excerpt below. A link to the SDC Implementation Guidelines is at the bottom of the webpage.
• Utility connection costs are at the applicant’s expense, per Title 28 – see excerpts below. (Note: Some grants, like ARPA, can pay for private lateral costs. This is how the Adacao laterals will be included in the project. )
• GWA is in process of revising the sewer loan application requirements, to alleviate the financial burden of already mandated sewer connection costs for qualified homeowners.

• Charges are based on meter size; single-family homes use a ¾” meter

Who must comply:
• Anyone who is:
– Building a new structure/property which for the first time is being connected to the GWA water or wastewater system;
– Increasing the density (demand) of existing structures;
• SDCs will be charged to all new or expanded residential, commercial, and government structures.

GWA highly recommends the users of this guidelines take time to understand “What” a System Development Charge is as it relates to new development on the island and “How” the System Development Charge is applicable to them
. This guideline is intended to assist in this process.