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<br />1 fund balance may be used as an operating reserve or, upon approval of the <br />2 Commission, to fund additional study, design or construction of reclamation facilities, or <br />3 upon approval by the Commission may be refunded to member agencies on the basis <br />4 of the Fixed O&M Costs Distribution Formula applicable for the current year in <br />5 accordance with Schedule B. <br />Income from the lease of capacity rights, sale of services or assets or connection <br />fees shall be deposited in the Replacement Fund. <br /> <br />6 <br />7 <br /> <br />8 <br /> <br />9 <br />10 <br /> <br />Section 20. Failureto Meet Discharoe ReQuirements <br />The Authority shall cause the combined effluent of all Agencies as well as the <br />11 receiving water of the combined discharge to be monitored to determine whether or not <br />12 Federal and/or State discharge requirements are being met. In addition, the Authority <br />13 shall cause the effluent of each Agency to be monitored. If the combined effluent of all <br />14 Agencies at the point of ultimate discharge into the receiving water fails to meet <br />15 <br />discharge requirements, the Agency or Agencies responsible for the violations shall be <br />16 <br />solely responsible for any fines levied or criminal sanctions imposed. In this regard, the <br />17 <br />Agency or Agencies responsible for the violations shall hold harmless the Authority and <br />18 <br />the other non-violating Agencies from all liability and/or damages incurred by said <br />19 <br />Authority and/or Agencies as a result of a cease and desist order or court injunction <br />20 <br />from any State or Federal agency restricting construction within the jurisdictional limits <br />21 <br />22 of said Authority or Agency. In the event two or more Agencies are responsible for <br />23 failure of the combined effluent to meet discharge requirements as above provided, the <br />24 Agencies responsible for the violation shall be jointly and severally responsible to the <br />25 Authority and to the other non-violating Agencies. Upon notification of such violation, the <br />26 Agency or Agencies shall take prompt, corrective action as necessary to meet said <br />27 discharge requirements. <br />28 If any Agency fails to take such action, the Authority by unanimous vote of the <br />29 Commission (excluding those members of the Commission who are representatives of <br />the Agency or Agencies who are in violation of the discharge requirements) may elect to <br />do either one or both of the following: <br /> <br />30 <br /> <br />31 <br />32 <br /> <br />-20- <br />