PRINTER'S NO. 2044
No. 1407 Session of 2008
INTRODUCED BY MUSTO, FERLO, STOUT, COSTA, TARTAGLIONE, PUNT,
MELLOW, WONDERLING, O'PAKE, KASUNIC, BOSCOLA, KITCHEN,
LAVALLE, FONTANA, WOZNIAK AND EARLL, MAY 12, 2008
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, MAY 12, 2008
AN ACT
1 Amending the act of March 1, 1988 (P.L.82, No.16), entitled "An
2 act providing for the establishment, implementation and
3 administration of the Pennsylvania Infrastructure Investment
4 Authority; imposing powers and duties on a board of trustees;
5 transferring the rights, powers, duties and obligations of
6 the Water Facilities Loan Board to the Pennsylvania
7 Infrastructure Investment Authority; providing for the
8 issuance of notes and bonds; providing for financial
9 assistance and for a comprehensive water facilities plan;
10 authorizing a referendum to incur indebtedness; making an
11 appropriation; and making repeals," further providing for
12 legislative intent, for definitions and for financial
13 assistance.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. Section 2 of the act of March 1, 1988 (P.L.82,
17 No.16), known as the Pennsylvania Infrastructure Investment
18 Authority Act, amended December 16, 1992 (P.L.1137, No.149), is
19 amended to read:
20 Section 2. Legislative intent.
21 The General Assembly finds and declares that:
22 (1) The health of millions of citizens of this
23 Commonwealth is at risk due to substandard and deteriorated
1 water supply and sewage disposal systems.
2 (2) Many water and sewage systems in this Commonwealth
3 are aging, outmoded, inadequate, deteriorating and operating
4 above capacity, and many areas have to limit their growth
5 solely due to lack of proper water supply and sewage
6 disposal.
7 (3) The economic revitalization of this Commonwealth is
8 being stifled by a lack of clean water and adequate sewage
9 facilities.
10 (4) Many Pennsylvania communities have antiquated or
11 inadequate storm water systems thereby resulting in storm
12 water flows which threaten the public health and safety due
13 to flooding, overloaded sewer lines, soil erosion, sinkhole
14 development and expansion and reduction in surface water and
15 groundwater quality.
16 (4.1) Many communities in this Commonwealth are
17 threatened by unsafe high hazard dams so located as to
18 endanger the health and safety of populated areas.
19 (5) Financing of water and sewage projects and storm
20 water projects at affordable cost is not currently available
21 in many areas of this Commonwealth.
22 (6) The lack of affordable financing to implement storm
23 water management plan recommendations has resulted in
24 compliance by only 17 counties with the requirements of the
25 act of October 4, 1978 (P.L.864, No.167), known as the Storm
26 Water Management Act.
27 (6.1) County and local governmental units struggle to
28 find the necessary funds to repair unsafe high hazard dams in
29 need of urgent repair.
30 (7) In order to assist in financing projects to protect
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1 the health and safety of the citizens of this Commonwealth
2 and to promote the economic development of Pennsylvania, the
3 General Assembly has determined that it is necessary to
4 establish the Pennsylvania Infrastructure Investment
5 Authority and to provide funding of the authority programs.
6 Section 2. Section 3 of the act, amended December 16, 1992
7 (P.L.1137, No.149) and July 14, 2005 (P.L.299, No.51), is
8 amended to read:
9 Section 3. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Authority." The Pennsylvania Infrastructure Investment
14 Authority.
15 "Board." The board of directors of the authority.
16 "Bonds." Bonds, notes or other evidences of indebtedness
17 issued by the authority pursuant to this act.
18 "Department." The Department of Environmental [Resources]
19 Protection of the Commonwealth.
20 "Eligible cost." The cost of all labor, materials, machinery
21 and equipment, lands, property, rights and easements, plans and
22 specifications, surveys or estimates of costs and revenues, pre-
23 feasibility studies, engineering and legal services, and all
24 other expenses necessary or incident to the acquisition,
25 construction, improvement, expansion, extension, repair or
26 rehabilitation of all or part of a project.
27 "Governmental unit." Any agency of the Commonwealth or any
28 county, municipality or school district, or any agency,
29 instrumentality, authority or corporation thereof, or any public
30 body having local or regional jurisdiction or power.
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1 "High hazard dam." A dam so located that it will endanger
2 populated areas downstream if it fails.
3 "Project." The eligible costs associated with the
4 acquisition, construction, improvement, expansion, extension,
5 repair, rehabilitation or security measures of all or part of
6 any facility or system, whether publicly or, in the case of
7 paragraph (1) or (2), privately owned:
8 (1) for the collection, treatment or disposal of
9 wastewater, including industrial waste;
10 (2) for the supply, treatment, storage or distribution
11 of drinking water;
12 (3) for the control of storm water, which may include,
13 but need not be limited to, the transport, storage and the
14 infiltration of storm water; [or]
15 (4) for the best management practices to address point
16 or nonpoint source pollution associated with storm water
17 runoff or any other innovative techniques identified in the
18 county-prepared watershed plans pursuant to the act of
19 October 4, 1978 (P.L.864, No.167), known as the Storm Water
20 Management Act[.]; or
21 (5) for the repair of high hazard dams designated by the
22 Department of Environmental Protection as unsafe and in
23 urgent need of repair which may include costs associated with
24 breaching a dam.
25 "Secretary." The Secretary of Environmental [Resources]
26 Protection of the Commonwealth.
27 "Security measures." Infrastructure improvements to publicly
28 or privately owned water or wastewater systems designed in whole
29 or in part for the protection of the collection, treatment and
30 distribution of potable water and treatment of wastewater from
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1 threats and vulnerabilities to ensure the public health of the
2 systems' customers in accordance with the Environmental
3 Protection Agency's Drinking Water State Revolving Fund Program
4 and the Clean Water State Revolving Fund Program established
5 under section 1452 of the Safe Drinking Water Act (Public Law
6 93-523, 42 U.S.C. § 300j-12) and Title VI of the Federal Water
7 Pollution Control Act (62 Stat. 1155, 33 U.S.C. §§ 1381-1387),
8 respectively, and any other program for which there are funds or
9 accounts administered by the authority.
10 "Storm water." Drainage runoff from the surface of the land
11 resulting from precipitation or snow or ice melt.
12 "Unsafe dam." A dam designated by the Department of
13 Environmental Protection with deficiencies of such a nature that
14 if not corrected, the deficiencies could cause a failure of the
15 dam with subsequent loss of lives or substantial property
16 damage.
17 "Water Facilities Loan Board." The board established under
18 32 Pa.C.S. § 7504 (relating to Water Facilities Loan Board).
19 Section 3. Section 10(a), (b), (e) and (j) of the act,
20 amended December 16, 1992 (P.L.1137, No.149), are amended and
21 the section is amended by adding a subsection to read:
22 Section 10. Financial assistance.
23 (a) Criteria for obtaining assistance.--In reviewing
24 applications for financial assistance, the authority shall
25 consider:
26 (1) Whether the project will improve the health, safety,
27 welfare or economic well-being of the people of this
28 Commonwealth.
29 (2) Whether the proposed project will lead to an
30 effective or complete solution to the problems experienced
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1 with the water management and control supply, sewage
2 treatment or storm water system or unsafe high hazard dam to
3 be aided, including compliance with State and Federal laws,
4 regulations or standards.
5 (3) The cost-effectiveness of the proposed project in
6 comparison with other alternatives, including other
7 institutional, financial and physical alternatives.
8 (4) The consistency of the proposed project with other
9 State and regional resource management and economic
10 development plans.
11 (5) Whether the applicant has demonstrated its ability
12 to operate and maintain the project in a proper manner.
13 (6) Whether the project encourages consolidation of
14 water or sewer systems, where such consolidation would enable
15 the customers of the systems to be more effectively and
16 efficiently served.
17 (7) The availability of other sources of funds at
18 reasonable rates to finance all or a portion of the project
19 and the need for authority assistance to finance the project
20 or to attract the other sources of funding[.] unless the
21 application is for a high hazard dam project, in which case
22 this factor shall not be considered.
23 (b) Financing priorities.--In assigning priorities for
24 projects, the board shall consult with the Department of
25 [Commerce] Community and Economic Development and the
26 department. In addition to any requirements of Federal law
27 imposed on the use of Federal funds, the board shall determine
28 priorities based on factors which include, but are not limited
29 to:
30 (1) Benefits to public health.
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1 (2) The contribution to and impact of the project on
2 economic development as well as social and environmental
3 values.
4 (3) Benefits to public safety or welfare.
5 (4) Improvement in the ability of an applicant to come
6 into compliance with State and Federal statutes, regulations
7 and standards.
8 (5) Improvement in the adequacy or efficiency of the
9 water management and control supply, sewage treatment or
10 storm water system.
11 (6) The cost-effectiveness of the project.
12 (7) Whether the governmental unit to be served by a
13 sewage treatment system is subject to construction or
14 connection limitations issued by the department and the date
15 that any such limitation was issued.
16 (8) Whether the project encourages consolidation of
17 water or sewer systems, where such consolidation would enable
18 the customers of the systems to be more effectively and
19 efficiently served.
20 (9) Whether a storm water project is sponsored by more
21 than one municipality and is located at strategic locations
22 determined by the basin-wide studies undertaken under the act
23 of October 4, 1978 (P.L.864, No.167), known as the Storm
24 Water Management Act, or other joint municipal or county
25 efforts.
26 (10) Whether a project will resolve known drainage or
27 storm water-related problems.
28 * * *
29 (b.2) High hazard dam projects.--
30 (1) In the case of a high hazard dam project, only a
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1 county or local governmental unit may qualify for financial
2 assistance under this act.
3 (2) The department shall be responsible for the
4 designation of a dam as an unsafe high hazard dam.
5 (3) Only unsafe high hazard dams as designated by the
6 department under paragraph (2) shall be eligible to receive
7 grant funds.
8 (4) All funding awards for unsafe high hazard dam
9 projects shall be in the form of a grant award and such grant
10 award shall not:
11 (i) Exceed 30% of the eligible costs of the project.
12 (ii) Be subject to the analysis of subsection (e).
13 (iii) Be subject to the analysis of subsection
14 (a)(7).
15 (5) The funding awards for unsafe high hazard dam
16 projects shall be limited to those funds provided.
17 * * *
18 (e) Grants.--Grants shall be made only when the board, in
19 its sole discretion, determines that the financial condition of
20 the recipient is such that repayment of a loan is unlikely and
21 that the recipient will not be able to proceed with the project
22 without a grant[.] unless the application is for an unsafe high
23 hazard dam project, in which case this analysis shall not be
24 required. In considering grant applications, the authority may
25 recommend, either before or after the determination of the
26 board, that the recipient pursue other State grant programs,
27 including, but not limited to, the Site Development program, the
28 Federal Small Communities Block Grant program and the Federal
29 Urban Development Action Grant program. Should the board
30 determine that a grant is necessary from the authority, the
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1 board shall attempt to mix the grant funds with loan funds, if
2 financially possible unless the award is for an unsafe high
3 hazard dam project.
4 * * *
5 (j) Continuing education of operators.--No agreement with
6 individuals or entities shall be valid in the absence of an
7 agreement by the individuals or entities seeking assistance
8 under this act to assure that the system operators are
9 participating or will participate in continuing education
10 programs developed by the Department of Environmental
11 [Resources] Protection. If the board determines that the system
12 operator of a system receiving assistance is not participating
13 in continuing education programs, the board shall take all steps
14 necessary to cease all financial assistance and recover all
15 prior payments, including, but not limited to, the immediate
16 repayment of any outstanding loans and interest and any grants.
17 The provisions of this subsection shall not apply to cases where
18 financial assistance is provided for storm water projects.
19 * * *
20 Section 4. This act shall take effect immediately.
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