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1 earned. Any interest earned on the fund balance shall also be retained in the fund. The <br /> 2 fund balance may be used as an operating reserve or, upon approval of the <br /> 3 Commission, to fund additional study, design or construction of reclamation facilities, or <br /> 4 upon approval by the Commission may be refunded to member agencies on the basis <br /> 5 of the Fixed O&M Costs Distribution Formula applicable for the current year in <br /> 6 accordance with Schedule B. <br /> 7 Income from the lease of capacity rights, sale of services or assets or connection <br /> 8 fees shall be deposited in the Replacement Fund. <br /> 9 <br /> 10 Section 2016. Failure to Meet Discharge Requirements <br /> 11 The Authority shall cause the combined effluent of all Agencies as well as the <br /> 12 receiving water of the combined discharge to be monitored to determine whether or not <br /> 13 Federal and/or State discharge requirements are being met. In addition, the Authority <br /> 14 shall cause the effluent of each Agency to be monitored. If the combined effluent of all <br /> 15 Agencies at the point of ultimate discharge into the receiving water fails to meet <br /> 16 <br /> discharge requirements, the Agency or Agencies responsible for the violations shall be <br /> 17 <br /> solely responsible for any fines levied or criminal sanctions imposed. In this regard, the <br /> 18 <br /> 19 Agency or Agencies responsible for the violations shall hold harmless the Authority and <br /> 20 the other non-violating Agencies from all liability and/or damages incurred by said <br /> 21 Authority and/or Agencies as a result of a cease and desist order or court injunction <br /> 22 from any State or Federal agency restricting construction within the jurisdictional limits <br /> 23 of said Authority or Agency. In the event two or more Agencies are responsible for <br /> 24 failure of the combined effluent to meet discharge requirements as above provided, the <br /> 25 Agencies responsible for the violation shall be jointly and severally responsible to the <br /> 26 Authority and to the other non-violating Agencies. Upon notification of such violation, the <br /> 27 Agency or Agencies shall take prompt, corrective action as necessary to meet said <br /> 28 discharge requirements. <br /> 29 If any Agency fails to take such action, the Authority by unanimous vote of the <br /> 30 Commission (excluding those members of the Commission who are representatives of <br /> 31 the Agency or Agencies who are in violation of the discharge requirements) may elect to <br /> 32 do either one or both of the following: <br /> -21- <br /> 2336705.4 <br />