1Amending the act of July 9, 2008 (P.L.915, No.64), entitled "An
2act authorizing the incurring of indebtedness, with the
3approval of the electors, of $400,000,000 for the
4acquisition, repair, construction, reconstruction,
5rehabilitation, extension, expansion and improvement of water
6supply and sewage treatment systems; and providing for the
7powers and duties of the Pennsylvania Infrastructure
8Investment Authority," further providing for legislative
9findings; authorizing the incurring of indebtedness, with the
10approval of the electors, of $600,000,000 for the
11acquisition, repair, construction, reconstruction,
12rehabilitation, extension, expansion and improvement of water
13supply and sewage treatment systems; providing for the powers
14and duties of the Pennsylvania Infrastructure Investment
15Authority and for authorization and expiration; and making
16editorial changes.

17The General Assembly of the Commonwealth of Pennsylvania
18hereby enacts as follows:

19Section 1. The act of July 9, 2008 (P.L.915, No.64), known
20as the Water and Sewer Systems Assistance Act, is amended by
21adding a chapter heading to read:

22CHAPTER 1

23PRELIMINARY PROVISIONS

24Section 2.  Section 1 of the act is renumbered to read:

1Section [1] 101. Short title.

2This act shall be known and may be cited as the Water and
3Sewer Systems Assistance Act.

4Section 3. Section 2 of the act is renumbered and amended by
5adding paragraphs to read:

6Section [2] 102. Legislative findings.

7The General Assembly finds and declares as follows:

8* * *

9(9) According to the Environmental Protection Agency,
10this Commonwealth has a 20-year need in excess of
11$32,000,000,000 investment in drinking water and wastewater
12treatment systems.

13(10) In 2008, the General Assembly enacted Chapter 3 and
14the public authorized $400,000,000 that created jobs and
15started to address this pressing need.

16Section 4.  Section 3 of the act is renumbered to read:

17Section [3] 103. Definitions.

18The following words and phrases when used in this act shall
19have the meanings given to them in this section unless the
20context clearly indicates otherwise:

21"Authority." The Pennsylvania Infrastructure Investment
22Authority.

23"Board." The board of directors of the Pennsylvania
24Infrastructure Investment Authority.

25"Eligible cost." The cost of all labor, materials, necessary
26operational machinery and equipment, lands, property, rights and
27easements, plans and specifications, surveys, estimates of costs
28and revenues, prefeasibility studies, engineering and legal
29services and all other expenses necessary or incident to the
30acquisition, construction, improvement, expansion, extension,

1repair or rehabilitation of all or part of a project.

2"Grant." The award and distribution of funds for eligible
3costs by the Pennsylvania Infrastructure Investment Authority if
4repayment is not required.

5"Municipality." A county, city, borough, incorporated town,
6township, home rule municipality and any municipal authority
7responsible for the provision of drinking water or sewage
8treatment services to any of them.

9"Nutrient." Nitrogen or phosphorus.

10"Nutrient credit." The unit of compliance that corresponds
11with a pound of reduction of a nutrient and that has been
12approved by the Department of Environmental Protection.

13"Project." The acquisition, construction, improvement,
14expansion, extension, repair, rehabilitation or security
15measures of all or part of a facility or system for:

16(1) the collection, treatment or disposal of wastewater,
17including industrial waste;

18(2) the supply, treatment, storage or distribution of
19drinking water;

20(3) the control and elimination of combined sewer
21overflows, defined as a point source discharge from a sewer
22system that combines sanitary wastewaters and storm waters;

23(4) the reductions of nitrogen, phosphorus and sediment
24to comply with Pennsylvania's Chesapeake Bay Tributary
25Strategy, including the purchase or trading of nutrient
26credits;

27(5) the control of storm water, which may include, but
28is not limited to, the transport, storage and the
29infiltration of storm water;

30(6) the best management practices to address point or

1nonpoint source pollution associated with storm water runoff
2or any other innovative techniques identified in the county-
3prepared watershed plans pursuant to the act of October 4,
41978 (P.L.864, No.167), known as the Storm Water Management
5Act;

6(7) the control of nonpoint sources of pollution
7identified in programs established under section 319 of the
8Federal Water Pollution Control Act (62 Stat. 1155, 33 U.S.C.
9§ 1329); or

10(8) the consolidation or regionalization of two or more
11water supply systems, sewage disposal systems or storm water
12systems managed or operated as an integrated system,
13regardless of whether the system is physically
14interconnected.

15Section 5.  The act is amended by adding a chapter heading to
16read:

17CHAPTER 3

182008 AUTHORIZATION

19Section 6.  Section 4 of the act is renumbered to read:

20Section [4] 301. Approval of debt incurrence by electors.

21The question of incurring indebtedness of $400,000,000 for
22grants and loans for the cost of all labor, materials, necessary
23operational machinery and equipment, lands, property, rights and
24easements, plans and specifications, surveys, estimates of costs
25and revenues, prefeasibility studies, engineering and legal
26services and all other expenses necessary or incident to the
27acquisition, construction, improvement, expansion, extension,
28repair or rehabilitation of all or part of a project shall be
29submitted to the electors at the next primary, municipal or
30general election following the effective date of this section.

1Section 7. Sections 5 and 6 of the act are renumbered and
2amended to read:

3Section [5] 302. Certification.

4The Secretary of the Commonwealth shall certify the question
5under section [4] 301 to the county board of elections.

6Section [6] 303. Form of question.

7The question under section [4] 301 shall be in substantially
8the following form:

9Do you favor the incurring of indebtedness by the
10Commonwealth of $400,000,000 for grants and loans to
11municipalities and public utilities for the cost of all
12labor, materials, necessary operational machinery and
13equipment, lands, property, rights and easements, plans
14and specifications, surveys, estimates of costs and
15revenues, prefeasibility studies, engineering and legal
16services and all other expenses necessary or incident to
17the acquisition, construction, improvement, expansion,
18extension, repair or rehabilitation of all or part of
19drinking water system, storm water, nonpoint source
20projects, nutrient credits and wastewater treatment
21system projects?

22Section 8.  Section 7 of the act is renumbered to read:

23Section [7] 304. Election.

24The election shall be conducted in accordance with the act of
25June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
26Election Code.

27Section 9.  Sections 8 and 9 of the act are renumbered and
28amended to to read:

29Section [8] 305. Proceeds.

30(a) Use.--Proceeds of borrowing shall be deposited in a

1special fund in the State Treasury and shall be used for grants
2and loans by the Pennsylvania Infrastructure Investment
3Authority for projects.

4(b) Appropriation.--The proceeds of all bonds sold under
5this [act] chapter are hereby appropriated on a continuing basis
6to the Pennsylvania Infrastructure Investment Authority for the
7purpose of making loans and grants under this [act] chapter.

8(c) Borrowing authorized.--Pursuant to section 7(a)(3) of
9Article VIII of the Constitution of Pennsylvania, the issuing
10officials are authorized and directed to borrow, on the credit
11of the Commonwealth, money not exceeding in the aggregate
12$400,000,000 in increments of not more than $150,000,000 every
13year over a three-year period after the effective date of this
14section.

15(d) Grant limitations.--

16(1) The aggregate amount of grants awarded under this
17section shall not exceed $200,000,000.

18(2) The board shall have no power to award any grant,
19loan or combination thereof that exceeds the following
20monetary limits:

21(i) For a sewage treatment system that has an annual
22average daily flow greater than 100,000,000 gallons per
23day or a water system that serves a population greater
24than 300,000 people, $50,000,000.

25(ii) For a sewage treatment system that has an
26annual average daily flow greater than 50,000,000 gallons
27per day but less than 100,000,000 gallons per day or a
28water system that serves a population between 100,000 and
29300,000 people, $35,000,000.

30(iii) For a sewage treatment system that has an

1annual average daily flow greater than 20,000,000 gallons
2per day but less than 50,000,000 gallons per day or a
3water system that serves a population between 10,000 and
4100,000 people, $25,000,000.

5(iv) For a sewage treatment system that has an
6annual average daily flow greater than 10,000,000 gallons
7per day but less than 20,000,000 gallons per day or a
8water system that serves a population between 3,301 and
910,000 people, $20,000,000.

10(v) For a sewage treatment system that has an annual
11average daily flow greater than 1,000,000 gallons per day
12but less than 10,000,000 gallons per day or a water
13system that serves a population between 501 and 3,300
14people, $15,000,000.

15(vi) For a sewage treatment system that has an
16annual average daily flow less than 1,000,000 gallons per
17day or a water system that serves a population less than
18500 people, $10,000,000.

19(3) Notwithstanding the provisions of paragraph (2), the
20board, by a vote of at least nine members, may authorize a
21grant in excess of the limits established in paragraph (2) to
22comprehensive projects providing or proposing consolidated
23service to a region encompassing all or parts of two or more
24municipalities.

25(4) Proceeds from the bond issued under this [act]
26chapter may be used for grants or loans to assist a public
27utility to acquire a small sewer utility or small water
28utility as defined under 66 Pa.C.S. § 529 (relating to power
29of commission to order acquisition of small water and sewer
30utilities) if both of the following apply:

1(i) The Pennsylvania Public Utility Commission has
2determined that the small sewer utility or small water
3utility has provided unsafe, inadequate or unreasonable
4service.

5(ii) The Pennsylvania Public Utility Commission has
6assessed civil penalties against the small sewer utility
7or small water utility.

8(e) Construction.--Nothing in this [act] chapter shall
9prohibit the use of funds allocated under the provisions of this
10[act] chapter for projects involving the purchase or trading of
11nutrient credits.

12Section [9] 306. Powers and duties of board.

13(a) General rule.--By March 31, 2009, the board shall
14implement and administer the proceeds of the bond under section
15[8] 305 in conformity with the provisions of section 10 of the
16act of March 1, 1988 (P.L.82, No.16), known as the Pennsylvania
17Infrastructure Investment Authority Act.

18(b) Specific powers of board.--In addition to any powers
19under subsection (a), the board shall have the power to:

20(1) Develop forms for the applications of grants and
21loans.

22(2) Promulgate regulations to implement the provisions
23of this [act] chapter.

24(3) Provide for the implementation of a commercial paper
25program and the issuance of bonds, notes or other obligations
26in groups or individually in a manner consistent with the
27requirements of section 7 of the Pennsylvania Infrastructure
28Investment Authority Act. Bonds issued under the program
29established under this paragraph shall not be required to be
30sold at public sale.

1(4) Take all other actions necessary to implement and
2administer the provisions of this [act] chapter.

3Section 10.  The act is amended by adding a chapter to read:

4CHAPTER 5

52013 AUTHORIZATION

6Section 501. Approval of debt incurrence by electors.

7The question of incurring indebtedness of $600,000,000 for
8grants and loans for the cost of the labor, materials, necessary
9operational machinery and equipment, lands, property, rights and
10easements, plans and specifications, surveys, estimates of costs
11and revenues, prefeasibility studies, engineering and legal
12services and the other expenses necessary or incident to the
13acquisition, construction, improvement, expansion, extension,
14repair or rehabilitation of all or part of a project shall be
15submitted to the electors at the next primary, municipal or
16general election following the effective date of this section.

17Section 502. Certification.

18The Secretary of the Commonwealth shall certify the question
19under section 501 to the county board of elections.

20Section 503. Form of question.

21The question under section 501 shall be in substantially the
22following form:

23Do you favor the incurring of indebtedness by the
24Commonwealth of $600,000,000 for grants and loans to
25municipalities and public utilities for the cost of all
26labor, materials, necessary operational machinery and
27equipment, lands, property, rights and easements, plans
28and specifications, surveys, estimates of costs and
29revenues, prefeasibility studies, engineering and legal
30services and the other expenses necessary or incident to

1the acquisition, construction, improvement, expansion,
2extension, repair or rehabilitation of all or part of
3drinking water system, storm water, nonpoint source
4projects, nutrient credits and wastewater treatment
5system projects?

6Section 504. Election.

7The election shall be conducted in accordance with the act of
8June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
9Election Code.

10Section 505. Proceeds.

11(a) Use.--Proceeds of borrowing shall be deposited in a
12special fund in the State Treasury and shall be used for grants
13and loans by the Pennsylvania Infrastructure Investment
14Authority for projects.

15(b) Appropriation.--The proceeds of all bonds sold under
16this chapter are hereby appropriated on a continuing basis to
17the Pennsylvania Infrastructure Investment Authority for the
18purpose of making loans and grants under this chapter.

19(c) Borrowing authorized.--Pursuant to section 7(a)(3) of
20Article VIII of the Constitution of Pennsylvania, the issuing
21officials are authorized and directed to borrow, on the credit
22of the Commonwealth, money not exceeding in the aggregate
23$600,000,000 in increments of not more than $200,000,000 every
24year over a three-year period after the effective date of this
25section.

26(d) Grant limitations.--

27(1) The aggregate amount of grants awarded under this
28section may not exceed $200,000,000.

29(2) The board does not have the power to award a grant,
30loan or combination thereof that exceeds the following

1monetary limits:

2(i) For a sewage treatment system that has an annual
3average daily flow greater than 100,000,000 gallons per
4day or a water system that serves a population greater
5than 300,000 people, $50,000,000.

6(ii) For a sewage treatment system that has an
7annual average daily flow greater than 50,000,000 gallons
8per day but less than 100,000,000 gallons per day or a
9water system that serves a population between 100,000 and
10300,000 people, $35,000,000.

11(iii) For a sewage treatment system that has an 
12annual average daily flow greater than 20,000,000 gallons 
13per day but less than 50,000,000 gallons per day or a 
14water system that serves a population between 10,000 and
15100,000 people, $25,000,000.

16(iv) For a sewage treatment system that has an
17annual average daily flow greater than 10,000,000 gallons
18per day but less than 20,000,000 gallons per day or a
19water system that serves a population between 3,301 and
2010,000 people, $20,000,000.

21(v) For a sewage treatment system that has an annual
22average daily flow greater than 1,000,000 gallons per day
23but less than 10,000,000 gallons per day or a water
24system that serves a population between 501 and 3,300
25people, $15,000,000.

26(vi) For a sewage treatment system that has an
27annual average daily flow less than 1,000,000 gallons per
28day or a water system that serves a population less than
29500 people, $10,000,000.

30(3) Notwithstanding the provisions of paragraph (2), the

1board, by a vote of at least nine members, may authorize a
2grant in excess of the limits established in paragraph (2) to
3comprehensive projects providing or proposing consolidated
4service to a region encompassing all or parts of two or more
5municipalities.

6(4) Proceeds from the bond issued under this chapter may
7be used for grants or loans to assist a public utility to 
8acquire a small sewer utility or small water utility as 
9defined under 66 Pa.C.S. § 529 (relating to power of 
10commission to order acquisition of small water and sewer 
11utilities) if both of the following apply:

12(i) The Pennsylvania Public Utility Commission has
13determined that the small sewer utility or small water
14utility has provided unsafe, inadequate or unreasonable
15service.

16(ii) The Pennsylvania Public Utility Commission has
17assessed civil penalties against the small sewer utility
18or small water utility.

19(e) Construction.--This chapter does not prohibit the use of
20funds allocated under the provisions of this chapter for
21projects involving the purchase or trading of nutrient credits.

22Section 506. Powers and duties of board.

23(a) General rule.--By March 31, 2014, the board shall
24implement and administer the proceeds of the bond under section
25505 in conformity with the provisions of section 10 of the act
26of March 1, 1988 (P.L.82, No.16), known as the Pennsylvania
27Infrastructure Investment Authority Act.

28(b) Specific powers of board.--In addition to the powers
29under subsection (a), the board may:

30(1) Develop forms for the applications of grants and

1loans.

2(2) Promulgate regulations to implement the provisions
3of this chapter.

4(3) Provide for the implementation of a commercial paper 
5program and the issuance of bonds, notes or other obligations 
6in groups or individually in a manner consistent with the
7requirements of section 7 of the Pennsylvania Infrastructure 
8Investment Authority Act. Bonds issued under the program 
9established under this paragraph shall not be required to be 
10sold at public sale.

11(4) Take all other actions necessary to implement and
12administer the provisions of this chapter.

13Section 507. Authorization and expiration.

14Notwithstanding the provisions of section 1783-A of the act
15of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code,
16the additional amount of $600,000,000 is authorized if approved
17by the electorate and the authorization to issue bonds and
18notes, not including refunding bonds and notes for the purpose
19of this chapter shall expire ten years from the effective date
20of this section.

21Section 11. The act is amended by adding a chapter heading
22to read:

23CHAPTER 20

24MISCELLANEOUS PROVISIONS

25Section 12. The act is amended by adding a section to read:

26Section 2001. (Reserved).

27Section 13. Section 10 of the act is renumbered to read:

28Section [10] 2002. Effective date.

29This act shall take effect immediately.

30Section 14. This act shall take effect immediately.