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        PRIOR PRINTER'S NOS. 1910, 2144, 2196         PRINTER'S NO. 2225

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1341 Session of 2008


        INTRODUCED BY MUSTO, RAFFERTY, STOUT, ERICKSON, LAVALLE, FUMO,
           COSTA, WONDERLING, O'PAKE, TARTAGLIONE, WOZNIAK, FONTANA,
           BOSCOLA, GREENLEAF, MELLOW, KASUNIC, KITCHEN, WASHINGTON,
           STACK AND C. WILLIAMS, APRIL 3, 2008

        AS AMENDED ON THIRD CONSIDERATION, JUNE 23, 2008

                                     AN ACT

     1  Authorizing the incurring of indebtedness, with the approval of
     2     the electors, of $400,000,000 for the acquisition, repair,
     3     construction, reconstruction, rehabilitation, extension,
     4     expansion and improvement of water supply and sewage
     5     treatment systems; and providing for the powers and duties of
     6     the Pennsylvania Infrastructure Investment Authority.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9  Section 1.  Short title.
    10     This act shall be known and may be cited as the Water and
    11  Sewer Systems Assistance Act.
    12  Section 2.  Legislative findings.
    13     The General Assembly finds and declares as follows:
    14         (1)  Pennsylvania has an estimated 2,200 drinking water
    15     systems and 1,060 wastewater systems.
    16         (2)  Drinking water and wastewater treatment systems
    17     protect public health and the environment and are responsible
    18     for cleaning and treating waters of this Commonwealth.
    19         (3)  Changing Federal and State regulations relative to

     1     the treatment of drinking water and wastewater are creating
     2     financial problems for drinking water and wastewater
     3     treatment systems.
     4         (4)  Many of the drinking water and wastewater treatment
     5     systems must manage aging infrastructure and the maintenance
     6     and replacement costs are estimated to be in excess of
     7     $18,000,000,000.
     8         (5)  According to the Environmental Protection Agency,
     9     Pennsylvania ranks seventh in infrastructure financing needs
    10     for water infrastructure.
    11         (6)  Additional funding sources are needed if
    12     Pennsylvania is to have a sustainable water infrastructure in
    13     the future.
    14         (7)  The Governor signed executive order 2008-02 creating
    15     a water infrastructure task force to ensure that Pennsylvania
    16     maintains a sustainable drinking water and wastewater
    17     infrastructure.
    18         (8)  It is beyond the financial means of local ratepayers
    19     to fund all the improvements that are needed for a
    20     sustainable drinking water and wastewater infrastructure.
    21  Section 3.  Definitions.
    22     The following words and phrases when used in this act shall
    23  have the meanings given to them in this section unless the
    24  context clearly indicates otherwise:
    25     "Authority."  The Pennsylvania Infrastructure Investment
    26  Authority.
    27     "Board."  The board of directors of the Pennsylvania
    28  Infrastructure Investment Authority.
    29     "Eligible cost."  The cost of all labor, materials, necessary
    30  operational machinery and equipment, lands, property, rights and
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     1  easements, plans and specifications, surveys, estimates of costs
     2  and revenues, prefeasibility studies, engineering and legal
     3  services and all other expenses necessary or incident to the
     4  acquisition, construction, improvement, expansion, extension,
     5  repair or rehabilitation of all or part of a project.
     6     "Grant."  A direct payment from the Pennsylvania
     7  Infrastructure Investment Authority to a municipality.
     8     "Municipality."  A county, city, borough, incorporated town,
     9  township, home rule municipality and any municipal authority
    10  responsible for the provision of drinking water or sewage
    11  treatment services to any of them.
    12     "Project."  The acquisition, construction, improvement,
    13  expansion, extension, repair, rehabilitation or security
    14  measures of all or part of a facility or system for:
    15         (1)  the collection, treatment or disposal of wastewater,
    16     including industrial waste;
    17         (2)  the supply, treatment, storage or distribution of
    18     drinking water;
    19         (3)  the control and elimination of combined sewer
    20     overflows, defined as a point source discharge from a sewer
    21     system that combines sanitary wastewaters and storm waters;
    22         (4)  the reductions of nitrogen, phosphorus and sediment
    23     to comply with Pennsylvania's Chesapeake Bay Tributary
    24     Strategy;
    25         (5)  the control of storm water, which may include, but
    26     is not limited to, the transport, storage and the
    27     infiltration of storm water; or
    28         (6)  the best management practices to address point or
    29     nonpoint source pollution associated with storm water runoff
    30     or any other innovative techniques identified in the county-
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     1     prepared watershed plans pursuant to the act of October 4,
     2     1978 (P.L.864, No.167), known as the Storm Water Management
     3     Act.
     4  Section 4.  Approval of debt incurrence by electors.
     5     The question of incurring indebtedness of $400,000,000 for
     6  grants and loans for the cost of all labor, materials, necessary
     7  operational machinery and equipment, lands, property, rights and
     8  easements, plans and specifications, surveys, estimates of costs
     9  and revenues, prefeasibility studies, engineering and legal
    10  services and all other expenses necessary or incident to the
    11  acquisition, construction, improvement, expansion, extension,
    12  repair or rehabilitation of all or part of a project shall be
    13  submitted to the electors at the next primary, municipal or
    14  general election following the effective date of this section.
    15  Section 5.  Certification.
    16     The Secretary of the Commonwealth shall certify the question
    17  under section 4 to the county board of elections.
    18  Section 6.  Form of question.
    19     The question under section 4 shall be in substantially the
    20  following form:
    21         Do you favor the incurring of indebtedness by the
    22         Commonwealth of $400,000,000 for grants and loans to
    23         municipalities for the cost of all labor, materials,
    24         necessary operational machinery and equipment, lands,
    25         property, rights and easements, plans and specifications,
    26         surveys, estimates of costs and revenues, prefeasibility
    27         studies, engineering and legal services and all other
    28         expenses necessary or incident to the acquisition,
    29         construction, improvement, expansion, extension, repair
    30         or rehabilitation of all or part of drinking water system
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     1         and wastewater treatment system projects?
     2  Section 7.  Election.
     3     The election shall be conducted in accordance with the act of
     4  June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
     5  Election Code.
     6  Section 8.  Proceeds.
     7     (a)  Use.--Proceeds of borrowing shall be deposited in a
     8  special fund in the State Treasury and shall be used for grants
     9  and loans by the Pennsylvania Infrastructure Investment
    10  Authority for drinking water system and wastewater treatment
    11  system projects.
    12     (b)  Appropriation.--The proceeds of all bonds sold under
    13  this act are hereby appropriated on a continuing basis to the
    14  Pennsylvania Infrastructure Investment Authority for the purpose
    15  of making loans and grants under this act.
    16     (c)  Borrowing authorized.--Pursuant to section 7(a)(3) of
    17  Article VIII of the Constitution of Pennsylvania, the issuing
    18  officials are authorized and directed to borrow, on the credit
    19  of the Commonwealth, money not exceeding in the aggregate
    20  $400,000,000 in increments of not more than $150,000,000 every
    21  year over a three-year period after the effective date of this
    22  section.
    23     (d)  Grant limitations.--
    24         (1)  The aggregate amount of grants awarded under this
    25     section shall not exceed $200,000,000.
    26         (2)  No grant awarded under this act shall be used to
    27     repair, rehabilitate or improve any sewage treatment system
    28     or drinking water system on private property.
    29         (3)  The board shall have no power to award any grant,
    30     loan or combination thereof that exceeds the following
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     1     monetary limits:
     2             (i)  For a sewage treatment system that has an annual
     3         average daily flow greater than 100,000,000 gallons per
     4         day or a water system that serves a population greater
     5         than 300,000 people, $20,000,000.
     6             (ii)  For a sewage treatment system that has an
     7         annual average daily flow greater than 50,000,000 gallons
     8         per day but less than 100,000,000 gallons per day or a
     9         water system that serves a population between 100,000 and
    10         300,000 people, $15,000,000.
    11             (iii)  For a sewage treatment system that has an
    12         annual average daily flow greater than 20,000,000 gallons
    13         per day but less than 50,000,000 gallons per day or a
    14         water system that serves a population between 10,000 and
    15         100,000 people, $10,000,000.
    16             (iv)  For a sewage treatment system that has an
    17         annual average daily flow greater than 10,000,000 gallons
    18         per day but less than 20,000,000 gallons per day or a
    19         water system that serves a population between 3,301 and
    20         10,000 people, $5,000,000.
    21             (v)  For a sewage treatment system that has an annual
    22         average daily flow greater than 1,000,000 gallons per day
    23         but less than 10,000,000 gallons per day or a water
    24         system that serves a population between 501 and 3,300
    25         people, $3,000,000.
    26             (vi)  For a sewage treatment system that has an
    27         annual average daily flow less than 1,000,000 gallons per
    28         day or a water system that serves a population less than
    29         500 people, $2,000,000.
    30         (4)  Notwithstanding the provisions of paragraph (3), the
    20080S1341B2225                  - 6 -     

     1     board by a vote of at least nine members may authorize a
     2     grant in excess of the limits established in paragraph (3) to
     3     comprehensive projects providing or proposing consolidated
     4     service to a region encompassing all or parts of two or more
     5     municipalities.
     6         (5)  Proceeds from the bond issued under this act may be
     7     used for grants or loans to assist a public utility to
     8     acquire a small sewer utility or small water utility as
     9     defined under 66 Pa.C.S. § 529 (relating to power of
    10     commission to order acquisition of small water and sewer
    11     utilities) if BOTH OF the following apply:                     <--
    12             (i)  The Pennsylvania Public Utility Commission has
    13         determined that the small sewer utility or small water
    14         utility has provided unsafe, inadequate or unreasonable
    15         service.
    16             (ii)  The Pennsylvania Public Utility Commission has
    17         assessed civil penalties against the small sewer utility
    18         or small water utility.
    19         (6)  NOT MORE THAN $50,000,000 OF GRANT PROCEEDS FROM      <--
    20     THIS ACT SHALL BE USED TO REPAIR, REHABILITATE OR IMPROVE
    21     DRINKING WATER SYSTEMS.
    22     (e)  Restrictions.--Grants and loans awarded under this act
    23  shall not be subject to section 10(e) of the act of March 1,
    24  1988 (P.L.82, No.16), known as the Pennsylvania Infrastructure
    25  Investment Authority Act, or to 25 Pa. Code §§ 961.5(e)
    26  (relating to wastewater project evaluation criteria) and 961.9
    27  (relating to grants).
    28  Section 9.  Powers and duties of board.
    29     (a)  General rule.--By March 31, 2009, the board shall
    30  implement and administer the proceeds of the bond under section
    20080S1341B2225                  - 7 -     

     1  8 in conformity with the provisions of section 10 of the act of
     2  March 1, 1988 (P.L.82, No.16), known as the Pennsylvania
     3  Infrastructure Investment Authority Act.
     4     (b)  Specific powers of board.--In addition to any powers
     5  under subsection (a), the board shall have the power to:
     6         (1)  Develop forms for the applications of grants and
     7     loans.
     8         (2)  Promulgate regulations to implement the provisions
     9     of this act.
    10         (3)  Take all other actions necessary to implement and
    11     administer the provisions of this act.
    12  Section 10.  Effective date.
    13     This act shall take effect immediately.












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