PRIOR PRINTER'S NOS. 14, 1907, 3423, PRINTER'S NO. 3545
3465
No. 4 Session of 1993
INTRODUCED BY D. R. WRIGHT, VEON, ITKIN, M. COHEN, DeWEESE,
BELARDI, STEIGHNER, COY, DURHAM, ROBINSON, LAWLESS, SEMMEL,
AND STABACK, JANUARY 27, 1993
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
APRIL 13, 1994
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, further providing for watershed land.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Section 102 of Title 66 of the Pennsylvania
6 Consolidated Statutes is amended by adding definitions to read:
7 § 102. Definitions.
8 Subject to additional definitions contained in subsequent
9 provisions of this part which are applicable to specific
10 provisions of this part, the following words and phrases when
11 used in this part shall have, unless the context clearly
12 indicates otherwise, the meanings given to them in this section:
13 * * *
14 "Watershed buffer land." Any interest in real property <--
15 located within 500 feet of the high water level of any lake,
16 stream, reservoir, river or other body of water, which body of
1 water is used, directly or indirectly, to provide drinking water
2 to the public.
3 "Watershed land." Any interest in real property located
4 within the drainage area of any lake, stream, reservoir, river
5 or other body of water, or area of recharge to a groundwater
6 source, which is used, directly or indirectly, to provide
7 drinking water to the public. The term does not include parcels
8 of property of less than five acres in size upon which
9 equipment, structures, service facilities or other physical
10 plants are located or which are not contiguous or adjacent to
11 other watershed land. The term includes watershed buffer land.
12 "WATERSHED BUFFER LAND." REAL PROPERTY LOCATED WITHIN 500 <--
13 FEET OF THE HIGH WATER LEVEL OF ANY LAKE, SURFACE WATER
14 RESERVOIR OR OTHER BODY OF WATER WHICH IS USED, DIRECTLY OR
15 INDIRECTLY, TO PROVIDE DRINKING WATER TO THE PUBLIC.
16 "WATERSHED LAND." REAL PROPERTY LOCATED WITHIN 1,500 FEET OF
17 THE HIGH WATER LEVEL OF ANY LAKE, SURFACE WATER RESERVOIR OR
18 OTHER BODY OF WATER WHICH IS USED, DIRECTLY OR INDIRECTLY, TO
19 PROVIDE DRINKING WATER TO THE PUBLIC. THE TERM INCLUDES
20 WATERSHED BUFFER LAND.
21 Section 2. Title 66 is amended by adding sections to read:
22 § 531. Transfer of watershed land.
23 (a) Transfer of watershed land.--No public utility engaged
24 in the business of diverting, developing, pumping, impounding,
25 distributing or furnishing water to or for the public for
26 compensation shall sell, lease or otherwise transfer any
27 interest in watershed land unless that public utility has
28 petitioned for and obtained the approval of the commission. The
29 commission may, upon its own motion or upon complaint, prohibit
30 the public utility from selling, leasing or otherwise
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1 transferring watershed land if the commission determines that
2 the sale, lease or transfer could have an adverse effect on
3 water quality or water quantity or on the safety, adequacy,
4 efficiency or reasonableness of the utility's service, could
5 increase the utility's cost of providing service to its
6 customers or is not in the public interest.
7 (b) Requirements of utility petition.--Whenever a public
8 utility files a petition seeking approval of the sale, lease or
9 other transfer of watershed land, as set forth in subsection
10 (a), the utility shall demonstrate that the sale, lease or
11 transfer will not have an adverse effect on water quality or
12 water quantity or on the safety, adequacy, efficiency or
13 reasonableness of the utility's service, will not increase the
14 utility's cost of providing service to its customers and will
15 not adversely affect the public interest.
16 (c) Procedure.--The commission shall hold hearings as it
17 deems necessary in making the determinations required by
18 subsection (a) or (b). In the proceeding the commission shall
19 determine the reasonableness of the compensation received by the
20 utility for the sale, lease or other transfer of watershed land.
21 The affected public utility shall have the burden of proof in
22 any proceeding pursuant to this section.
23 (d) Environmental questions.--The commission, when
24 necessary, may certify to the Department of Environmental
25 Resources any questions regarding the environmental impact of
26 the proposed sale, lease or other transfer or the applicability
27 of environmental laws and regulations when the question arises
28 in a proceeding under this section. The department's
29 environmental review shall be concurrent with the commission's
30 review of the proposed sale, lease or other transfer. The
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1 commission shall incorporate the department's findings in its
2 decision. However, failure of the department to respond in a
3 timely manner to the commission's certification request shall
4 not prevent the commission from rendering a decision on a
5 proposed sale, lease or other transfer.
6 (e) Transactions with affiliates.--In any instance where the
7 utility proposes to sell, lease or otherwise transfer watershed
8 land to an affiliated interest of the utility, as defined in
9 section 2101 (relating to definition of affiliated interest),
10 the commission shall not approve the sale, lease or transfer
11 unless the commission finds that the compensation received by
12 the utility is at least equal to the fair market value of the
13 watershed land being sold, leased or transferred.
14 (f) Regulations.--The commission may adopt regulations it
15 deems necessary to carry out its powers and duties under this
16 section.
17 (g) Studies.--The commission may require the utility to
18 conduct studies and provide information necessary for the
19 commission to make the determinations required by this section.
20 § 532. Transfer of watershed buffer land.
21 (a) Transfer of watershed buffer land.--No public utility
22 engaged in the business of diverting, developing, pumping,
23 impounding, distributing or furnishing water to or for the
24 public for compensation shall sell, lease or otherwise transfer
25 any interest in watershed buffer land unless the public utility
26 has petitioned for and obtained the approval of the commission
27 under this section and section 531 (relating to transfer of
28 watershed land). In addition to the determinations made pursuant
29 to section 531, the commission shall prohibit the utility from
30 selling, leasing or otherwise transferring watershed buffer land
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1 if the utility or the potential buyer, lessee or other recipient
2 fails to comply with subsection (b).
3 (b) Requirements of utility petition.--In addition to the
4 requirements of section 531, whenever a public utility files a
5 petition seeking approval of the sale, lease or other transfer
6 of watershed buffer land, as set forth in subsection (a), the
7 utility and the potential buyer, lessee or other recipient shall
8 demonstrate that the sale, lease or other transfer will not
9 result in unapproved earth-disturbing activity on the watershed <--
10 buffer land WHICH WOULD ADVERSELY AFFECT DRINKING WATER QUALITY. <--
11 (c) Procedure.--The commission shall hold such hearings as
12 it deems necessary in making the determinations required by
13 subsections (a) and (b). In such a proceeding the commission
14 shall determine the reasonableness of the compensation received
15 by the utility for the sale, lease or other transfer of the
16 watershed buffer land. The affected public utility shall have
17 the burden of proof in any proceeding pursuant to this section.
18 (d) Studies.--The commission may require the utility to
19 conduct studies and provide information necessary for the
20 commission to make the determinations required by this section.
21 (e) Environmental questions.--The commission, when
22 necessary, may certify to the Department of Environmental
23 Resources any questions regarding the environmental impact of
24 the proposed sale, lease or other transfer or the applicability
25 of environmental laws and regulations when the question arises
26 in a proceeding under this section. The department's
27 environmental review shall be concurrent with the commission's
28 review of the proposed sale, lease or other transfer. The
29 commission shall incorporate the department's findings in its
30 decision. However, failure of the department to respond in a
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1 timely manner to the commission's certification request shall
2 not prevent the commission from rendering a decision on a
3 proposed sale, lease or other transfer.
4 (f) Transactions with affiliates.--In any instance where the
5 utility proposes to sell, lease or otherwise transfer watershed
6 buffer land to an affiliated interest of the utility, as defined
7 in section 2101 (relating to definition of affiliated interest),
8 the commission shall not approve the sale, lease or transfer
9 unless the commission finds that the compensation received by
10 the utility is at least equal to the fair market value of the
11 watershed land being sold, leased or transferred.
12 (g) Regulations.--The commission may adopt regulations it
13 deems necessary to carry out its powers and duties under this
14 section.
15 § 1328. Recognition of proceeds of sale of watershed land.
16 (a) Accounting required.--Whenever a public utility engaged
17 in the business of diverting, developing, pumping, impounding,
18 distributing or furnishing water to or for the public for
19 compensation sells, leases or otherwise transfers an interest in
20 watershed land, the utility shall keep a separate record of the
21 gross proceeds of the sale, lease or other transfer, the
22 undepreciated original cost of the property, the accrued
23 depreciation of the property and the expenses directly
24 associated with the sale, lease or other transfer of the
25 property.
26 (b) Duties of the commission.--In any proceeding in which
27 the commission determines a level of just and reasonable rates
28 for a public utility engaged in the business of diverting,
29 developing, pumping, impounding, distributing or furnishing
30 water to or for the public for compensation, the commission
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1 shall credit to ratepayers 50% of the net proceeds of the sale,
2 lease or other transfer of watershed land by the utility.
3 (c) Net proceeds defined.--For purposes of this section, the
4 term net proceeds shall mean:
5 (1) If the purchaser, lessee or transferee is an
6 affiliated interest of the utility, as defined in section
7 2101 (relating to definition of affiliated interest), the
8 greater of:
9 (i) the proceeds received from the transfer less the
10 depreciated original cost of the property and less the
11 expenses directly associated with the transfer which are
12 properly allocable to the utility; or
13 (ii) the fair market value of the watershed land
14 transferred less the depreciated original cost of the
15 property and less the expenses directly associated with
16 the transfer which are properly allocable to the utility.
17 (2) If the purchaser, lessee or transferee is not an
18 affiliated interest of the utility, as defined in section
19 2101, the proceeds received from the transfer less the
20 depreciated original cost of the property and less the
21 utility's expenses directly associated with the transfer.
22 (d) Exceptions.--The provisions of subsection (b) shall not
23 apply if the sale, lease or other transfer of watershed land
24 meets the requirements of sections 531 (relating to transfer of
25 watershed land) and 533 (relating to transfer of watershed
26 buffer land) and the watershed land to be sold, leased or
27 transferred is not currently in the utility's rate base.
28 § 1329. Ratemaking and watershed land.
29 For the purposes of ratemaking, the commission may consider
30 watershed land as used and useful property irrespective of the
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1 level of treatment or filtration of the public drinking water
2 supply.
3 Section 3. This act shall take effect in 60 90 days. <--
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