PRINTER'S NO. 393
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
394
Session of
2017
INTRODUCED BY YUDICHAK, BREWSTER, FONTANA, COSTA, STEFANO,
McGARRIGLE, HUGHES, RAFFERTY AND BOSCOLA, FEBRUARY 16, 2017
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY,
FEBRUARY 16, 2017
AN ACT
Amending the act of July 9, 2008 (P.L.915, No.64), entitled "An
act authorizing the incurring of indebtedness, with the
approval of the electors, of $400,000,000 for the
acquisition, repair, construction, reconstruction,
rehabilitation, extension, expansion and improvement of water
supply and sewage treatment systems; and providing for the
powers and duties of the Pennsylvania Infrastructure
Investment Authority," further providing for legislative
findings, for certification, for form of question, for
proceeds and for powers and duties of board; authorizing the
incurring of indebtedness, with the approval of the electors,
of $600,000,000 for water supply and sewage treatment
systems; providing for the powers and duties of the
Pennsylvania Infrastructure Investment Authority and for
authorization and expiration; and making editorial changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of July 9, 2008 (P.L.915, No.64), known
as the Water and Sewer Systems Assistance Act, is amended by
adding a chapter heading to read:
CHAPTER 1
PRELIMINARY PROVISIONS
Section 2. Section 1 of the act is renumbered to read:
Section [1] 101. Short title.
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This act shall be known and may be cited as the Water and
Sewer Systems Assistance Act.
Section 3. Section 2 of the act is renumbered and amended to
read:
Section [2] 102. Legislative findings.
The General Assembly finds and declares as follows:
(1) Pennsylvania has an estimated 2,200 drinking water
systems and 1,060 wastewater systems.
(2) Drinking water and wastewater treatment systems
protect public health and the environment and are responsible
for cleaning and treating waters of this Commonwealth.
(3) Changing Federal and State regulations relative to
the treatment of drinking water and wastewater are creating
financial problems for drinking water and wastewater
treatment systems.
(4) Many of the drinking water and wastewater treatment
systems must manage aging infrastructure, and the maintenance
and replacement costs are estimated to be in excess of
$18,000,000,000.
(5) According to the Environmental Protection Agency,
Pennsylvania ranks seventh in infrastructure financing needs
for water infrastructure.
(6) Additional funding sources are needed if
Pennsylvania is to have a sustainable water infrastructure in
the future.
(7) The Governor signed executive order 2008-02,
creating a water infrastructure task force to ensure that
Pennsylvania maintains a sustainable drinking water and
wastewater infrastructure.
(8) It is beyond the financial means of local ratepayers
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to fund all the improvements that are needed for a
sustainable drinking water and wastewater infrastructure.
(9) According to the Environmental Protection Agency,
this Commonwealth has a 20-year need in excess of
$32,000,000,000 investment in drinking water and wastewater
treatment systems.
(10) In 2008, the General Assembly enacted provisions
under this act and the public authorized $400,000,000, which
created jobs and started to address this pressing need.
Section 4. Section 3 of the act is renumbered to read:
Section [3] 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Authority." The Pennsylvania Infrastructure Investment
Authority.
"Board." The board of directors of the Pennsylvania
Infrastructure Investment Authority.
"Eligible cost." The cost of all labor, materials, necessary
operational machinery and equipment, lands, property, rights and
easements, plans and specifications, surveys, estimates of costs
and revenues, prefeasibility studies, engineering and legal
services and all other expenses necessary or incident to the
acquisition, construction, improvement, expansion, extension,
repair or rehabilitation of all or part of a project.
"Grant." The award and distribution of funds for eligible
costs by the Pennsylvania Infrastructure Investment Authority if
repayment is not required.
"Municipality." A county, city, borough, incorporated town,
township, home rule municipality and any municipal authority
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responsible for the provision of drinking water or sewage
treatment services to any of them.
"Nutrient." Nitrogen or phosphorus.
"Nutrient credit." The unit of compliance that corresponds
with a pound of reduction of a nutrient and that has been
approved by the Department of Environmental Protection.
"Project." The acquisition, construction, improvement,
expansion, extension, repair, rehabilitation or security
measures of all or part of a facility or system for:
(1) the collection, treatment or disposal of wastewater,
including industrial waste;
(2) the supply, treatment, storage or distribution of
drinking water;
(3) the control and elimination of combined sewer
overflows, defined as a point source discharge from a sewer
system that combines sanitary wastewaters and storm waters;
(4) the reductions of nitrogen, phosphorus and sediment
to comply with Pennsylvania's Chesapeake Bay Tributary
Strategy, including the purchase or trading of nutrient
credits;
(5) the control of storm water, which may include, but
is not limited to, the transport, storage and the
infiltration of storm water;
(6) the best management practices to address point or
nonpoint source pollution associated with storm water runoff
or any other innovative techniques identified in the county-
prepared watershed plans pursuant to the act of October 4,
1978 (P.L.864, No.167), known as the Storm Water Management
Act;
(7) the control of nonpoint sources of pollution
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identified in programs established under section 319 of the
Federal Water Pollution Control Act (62 Stat. 1155, 33 U.S.C.
ยง 1329); or
(8) the consolidation or regionalization of two or more
water supply systems, sewage disposal systems or storm water
systems managed or operated as an integrated system,
regardless of whether the system is physically
interconnected.
Section 5. The act is amended by adding a chapter heading to
read:
CHAPTER 3
2008 AUTHORIZATION
Section 6. Section 4 of the act is renumbered to read:
Section [4] 301. Approval of debt incurrence by electors.
The question of incurring indebtedness of $400,000,000 for
grants and loans for the cost of all labor, materials, necessary
operational machinery and equipment, lands, property, rights and
easements, plans and specifications, surveys, estimates of costs
and revenues, prefeasibility studies, engineering and legal
services and all other expenses necessary or incident to the
acquisition, construction, improvement, expansion, extension,
repair or rehabilitation of all or part of a project shall be
submitted to the electors at the next primary, municipal or
general election following the effective date of this section.
Section 7. Sections 5 and 6 of the act are renumbered and
amended to read:
Section [5] 302. Certification.
The Secretary of the Commonwealth shall certify the question
under section [4] 301 to the county board of elections.
Section [6] 303. Form of question.
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The question under section [4] 301 shall be in substantially
the following form:
Do you favor the incurring of indebtedness by the
Commonwealth of $400,000,000 for grants and loans to
municipalities and public utilities for the cost of all
labor, materials, necessary operational machinery and
equipment, lands, property, rights and easements, plans
and specifications, surveys, estimates of costs and
revenues, prefeasibility studies, engineering and legal
services and all other expenses necessary or incident to
the acquisition, construction, improvement, expansion,
extension, repair or rehabilitation of all or part of
drinking water system, storm water, nonpoint source
projects, nutrient credits and wastewater treatment
system projects?
Section 8. Section 7 of the act is renumbered to read:
Section [7] 304. Election.
The election shall be conducted in accordance with the act of
June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
Election Code.
Section 9. Sections 8 and 9 of the act are renumbered and
amended to to read:
Section [8] 305. Proceeds.
(a) Use.--Proceeds of borrowing shall be deposited in a
special fund in the State Treasury and shall be used for grants
and loans by the Pennsylvania Infrastructure Investment
Authority for projects.
(b) Appropriation.--The proceeds of all bonds sold under
this [act] chapter are hereby appropriated on a continuing basis
to the Pennsylvania Infrastructure Investment Authority for the
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purpose of making loans and grants under this [act] chapter.
(c) Borrowing authorized.--Pursuant to section 7(a)(3) of
Article VIII of the Constitution of Pennsylvania, the issuing
officials are authorized and directed to borrow, on the credit
of the Commonwealth, money not exceeding in the aggregate
$400,000,000 in increments of not more than $150,000,000 every
year over a three-year period after the effective date of this
section.
(d) Grant limitations.--
(1) The aggregate amount of grants awarded under this
section shall not exceed $200,000,000.
(2) The board shall have no power to award any grant,
loan or combination thereof that exceeds the following
monetary limits:
(i) For a sewage treatment system that has an annual
average daily flow greater than 100,000,000 gallons per
day or a water system that serves a population greater
than 300,000 people, $50,000,000.
(ii) For a sewage treatment system that has an
annual average daily flow greater than 50,000,000 gallons
per day but less than 100,000,000 gallons per day or a
water system that serves a population between 100,000 and
300,000 people, $35,000,000.
(iii) For a sewage treatment system that has an
annual average daily flow greater than 20,000,000 gallons
per day but less than 50,000,000 gallons per day or a
water system that serves a population between 10,000 and
100,000 people, $25,000,000.
(iv) For a sewage treatment system that has an
annual average daily flow greater than 10,000,000 gallons
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per day but less than 20,000,000 gallons per day or a
water system that serves a population between 3,301 and
10,000 people, $20,000,000.
(v) For a sewage treatment system that has an annual
average daily flow greater than 1,000,000 gallons per day
but less than 10,000,000 gallons per day or a water
system that serves a population between 501 and 3,300
people, $15,000,000.
(vi) For a sewage treatment system that has an
annual average daily flow less than 1,000,000 gallons per
day or a water system that serves a population less than
500 people, $10,000,000.
(3) Notwithstanding the provisions of paragraph (2), the
board, by a vote of at least nine members, may authorize a
grant in excess of the limits established in paragraph (2) to
comprehensive projects providing or proposing consolidated
service to a region encompassing all or parts of two or more
municipalities.
(4) Proceeds from the bond issued under this [act]
chapter may be used for grants or loans to assist a public
utility to acquire a small sewer utility or small water
utility as defined under 66 Pa.C.S. ยง 529 (relating to power
of commission to order acquisition of small water and sewer
utilities) if both of the following apply:
(i) The Pennsylvania Public Utility Commission has
determined that the small sewer utility or small water
utility has provided unsafe, inadequate or unreasonable
service.
(ii) The Pennsylvania Public Utility Commission has
assessed civil penalties against the small sewer utility
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or small water utility.
(e) Construction.--Nothing in this [act] chapter shall
prohibit the use of funds allocated under the provisions of this
[act] chapter for projects involving the purchase or trading of
nutrient credits.
Section [9] 306. Powers and duties of board.
(a) General rule.--By March 31, 2009, the board shall
implement and administer the proceeds of the bond under section
[8] 305 in conformity with the provisions of section 10 of the
act of March 1, 1988 (P.L.82, No.16), known as the Pennsylvania
Infrastructure Investment Authority Act.
(b) Specific powers of board.--In addition to any powers
under subsection (a), the board shall have the power to:
(1) Develop forms for the applications of grants and
loans.
(2) Promulgate regulations to implement the provisions
of this [act] chapter.
(3) Provide for the implementation of a commercial paper
program and the issuance of bonds, notes or other obligations
in groups or individually in a manner consistent with the
requirements of section 7 of the Pennsylvania Infrastructure
Investment Authority Act. Bonds issued under the program
established under this paragraph shall not be required to be
sold at public sale.
(4) Take all other actions necessary to implement and
administer the provisions of this [act] chapter.
Section 10. The act is amended by adding a chapter to read:
CHAPTER 5
DEBT AUTHORIZATION
Section 501. Approval of debt incurrence by electors.
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The question of incurring indebtedness of $600,000,000 for
grants and loans for the cost of the labor, materials, necessary
operational machinery and equipment, lands, property, rights and
easements, plans and specifications, surveys, estimates of costs
and revenues, prefeasibility studies, engineering and legal
services and the other expenses necessary or incident to the
acquisition, construction, improvement, expansion, extension,
repair or rehabilitation of all or part of a project shall be
submitted to the electors at the next primary, municipal or
general election following the effective date of this section.
Section 502. Certification.
The Secretary of the Commonwealth shall certify the question
under section 501 to the county board of elections.
Section 503. Form of question.
The question under section 501 shall be in substantially the
following form:
Do you favor the incurring of indebtedness by the
Commonwealth of $600,000,000 for grants and loans to
municipalities and public utilities for the cost of all
labor, materials, necessary operational machinery and
equipment, lands, property, rights and easements, plans
and specifications, surveys, estimates of costs and
revenues, prefeasibility studies, engineering and legal
services and the other expenses necessary or incident to
the acquisition, construction, improvement, expansion,
extension, repair or rehabilitation of all or part of
drinking water system, storm water, nonpoint source
projects, nutrient credits and wastewater treatment
system projects?
Section 504. Election.
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The election shall be conducted in accordance with the act of
June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
Election Code.
Section 505. Proceeds.
(a) Use.--Proceeds of borrowing shall be deposited in a
special fund in the State Treasury and shall be used for grants
and loans by the authority for projects.
(b) Appropriation.--The proceeds of all bonds sold under
this chapter are hereby appropriated on a continuing basis to
the Pennsylvania Infrastructure Investment Authority for the
purpose of making loans and grants under this chapter.
(c) Borrowing authorized.--Pursuant to section 7(a)(3) of
Article VIII of the Constitution of Pennsylvania, the issuing
officials are authorized and directed to borrow, on the credit
of the Commonwealth, money not exceeding in the aggregate
$600,000,000 in increments of not more than $200,000,000 every
year over a three-year period after the effective date of this
section.
(d) Grant limitations.--
(1) The aggregate amount of grants awarded under this
section may not exceed $200,000,000.
(2) The board does not have the power to award a grant,
loan or combination thereof that exceeds the following
monetary limits:
(i) For a sewage treatment system that has an annual
average daily flow greater than 100,000,000 gallons per
day or a water system that serves a population greater
than 300,000 people, $50,000,000.
(ii) For a sewage treatment system that has an
annual average daily flow greater than 50,000,000 gallons
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per day but less than 100,000,000 gallons per day or a
water system that serves a population between 100,000 and
300,000 people, $35,000,000.
(iii) For a sewage treatment system that has an
annual average daily flow greater than 20,000,000 gallons
per day but less than 50,000,000 gallons per day or a
water system that serves a population between 10,000 and
100,000 people, $25,000,000.
(iv) For a sewage treatment system that has an
annual average daily flow greater than 10,000,000 gallons
per day but less than 20,000,000 gallons per day or a
water system that serves a population between 3,301 and
10,000 people, $20,000,000.
(v) For a sewage treatment system that has an annual
average daily flow greater than 1,000,000 gallons per day
but less than 10,000,000 gallons per day or a water
system that serves a population between 501 and 3,300
people, $15,000,000.
(vi) For a sewage treatment system that has an
annual average daily flow less than 1,000,000 gallons per
day or a water system that serves a population less than
500 people, $10,000,000.
(3) Notwithstanding the provisions of paragraph (2), the
board, by a vote of at least nine members, may authorize a
grant in excess of the limits established in paragraph (2) to
comprehensive projects providing or proposing consolidated
service to a region encompassing all or parts of two or more
municipalities.
(4) Proceeds from the bond issued under this chapter may
be used for grants or loans to assist a public utility to
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acquire a small sewer utility or small water utility as
defined under 66 Pa.C.S. ยง 529 (relating to power of
commission to order acquisition of small water and sewer
utilities) if both of the following apply:
(i) The Pennsylvania Public Utility Commission has
determined that the small sewer utility or small water
utility has provided unsafe, inadequate or unreasonable
service.
(ii) The Pennsylvania Public Utility Commission has
assessed civil penalties against the small sewer utility
or small water utility.
(e) Construction.--This chapter does not prohibit the use of
funds allocated under the provisions of this chapter for
projects involving the purchase or trading of nutrient credits.
Section 506. Powers and duties of board.
(a) General rule.--By March 31, 2018, the board shall
implement and administer the proceeds of the bond under section
505 in conformity with the provisions of section 10 of the act
of March 1, 1988 (P.L.82, No.16), known as the Pennsylvania
Infrastructure Investment Authority Act.
(b) Specific powers of board.--In addition to the powers
under subsection (a), the board may:
(1) Develop forms for the applications of grants and
loans.
(2) Promulgate regulations to implement the provisions
of this chapter.
(3) Provide for the implementation of a commercial paper
program and the issuance of bonds, notes or other obligations
in groups or individually in a manner consistent with the
requirements of section 7 of the Pennsylvania Infrastructure
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Investment Authority Act. Bonds issued under the program
established under this paragraph shall not be required to be
sold at public sale.
(4) Take all other actions necessary to implement and
administer the provisions of this chapter.
Section 507. Authorization and expiration.
Notwithstanding the provisions of section 1783-A of the act
of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code,
the additional amount of $600,000,000 is authorized if approved
by the electorate and the authorization to issue bonds and
notes, not including refunding bonds and notes for the purpose
of this chapter shall expire 10 years from the effective date of
this section.
Section 11. The act is amended by adding a chapter heading
to read:
CHAPTER 20
MISCELLANEOUS PROVISIONS
Section 12. The act is amended by adding a section to read:
Section 2001. (Reserved).
Section 13. Section 10 of the act is renumbered to read:
Section [10] 2002. Effective date.
This act shall take effect immediately.
Section 14. This act shall take effect immediately.
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