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                                                      PRINTER'S NO. 2012

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 2 Session of 2008


        INTRODUCED BY EARLL, PILEGGI, M. WHITE, SCARNATI, PUNT, MADIGAN,
           ERICKSON, TOMLINSON, CORMAN, McILHINNEY, ORIE, RAFFERTY,
           GREENLEAF, D. WHITE, REGOLA, WONDERLING, FOLMER, MUSTO,
           WAUGH, KITCHEN, VANCE, GORDNER AND BROWNE, MAY 5, 2008

        REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, MAY 5, 2008

                                     AN ACT

     1  Providing for the allocation of money in the Pennsylvania Gaming
     2     Economic Development and Tourism Fund and for funding of
     3     water or sewer projects, storm water projects, flood control
     4     projects and high hazard dam projects.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7                             CHAPTER 1
     8                       PRELIMINARY PROVISIONS
     9  Section 101.  Short title.
    10     This act shall be known and may be cited as the H2O PA Act.
    11  Section 102.  Definitions.
    12     The following words and phrases when used in this act shall
    13  have the meanings given to them in this section unless the
    14  context clearly indicates otherwise:
    15     "Authority."  The Commonwealth Financing Authority
    16  established under 64 Pa.C.S. Ch 15 (relating to Commonwealth
    17  Financing Authority).
    18     "Board."  The Board of the Commonwealth Financing Authority

     1  established under 64 Pa.C.S. § 1512 (relating to board).
     2     "Department."  The Department of Environmental Protection of
     3  the Commonwealth.
     4     "Eligible applicant."  One or more municipalities or
     5  municipal authorities.
     6     "Municipal authority."  A public authority created under 53
     7  Pa.C.S. Ch. 56 (relating to municipal authorities) or under the
     8  former act of May 2, 1945 (P.L.382, No.164) known as the
     9  Municipality Authorities Act of 1945.
    10     "PENNVEST."  The Pennsylvania Infrastructure Investment
    11  Authority established under the act of March 1, 1988 (P.L.82,
    12  No.16), known as the Pennsylvania Infrastructure Investment
    13  Authority Act.
    14     "Project."  The acquisition, construction, improvement,
    15  including the installation of security measures, expansion,
    16  repair or rehabilitation of all or part of a water supply
    17  system, sewage disposal system, storm water system, flood
    18  control system or high hazard dam. The term shall include the
    19  consolidation of two or more water supply systems, sewage
    20  disposal systems, storm water systems or flood control systems.
    21     "Regional flood control project."  A project to construct,
    22  rehabilitate or upgrade a flood control system that is owned or
    23  operated by two or more municipalities or authorities.
    24     "Regional water supply, sewage disposal or storm water
    25  project."  A project to construct, rehabilitate or upgrade a
    26  water supply system, sewage disposal system or storm water
    27  system that is owned or operated by two or more municipalities
    28  or municipal authorities.
    29     "Water or sewer project."  The acquisition, construction,
    30  improvement, including the installation of security measures,
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     1  expansion, repair, rehabilitation of a water supply system,
     2  sewage disposal system or storm water system.
     3                             CHAPTER 3
     4                        ALLOCATION OF FUNDS
     5  Section 301.  Fund distribution.
     6     Notwithstanding the provisions of 4 Pa.C.S. § 1407(b)
     7  (relating to Pennsylvania Gaming Economic Development and
     8  Tourism Fund), all money in the Pennsylvania Gaming Economic
     9  Development and Tourism Fund not previously allocated to
    10  projects under the act of July 25, 2007 (P.L.342, No.53), known
    11  as Pennsylvania Gaming Economic Development and Tourism Fund
    12  Capital Budget Itemization Act of 2007, shall be allocated to
    13  the authority for distribution under this act for water or
    14  sewer, storm water, flood control and high hazard dam projects.
    15  For a ten-year period beginning with the initial deposits under
    16  4 Pa.C.S. § 1407(d), no loans or grants shall be distributed for
    17  any project located in a city or county of the first or second
    18  class.
    19                             CHAPTER 5
    20       WATER AND SEWER PROJECTS, STORM WATER PROJECTS, FLOOD
    21           CONTROL PROJECTS AND HIGH HAZARD DAM PROJECTS
    22  Section 501.  Commonwealth Financing Authority.
    23     (a)  General rule.--The authority shall incur indebtedness in
    24  an amount of up to $750,000,000 plus the payment of all
    25  reasonable costs and expenses related to the issuance of
    26  indebtedness in accordance with 64 Pa.C.S. Ch. 15 (relating to
    27  Commonwealth Financing Authority) for up to 30 years. Net
    28  proceeds from the sale of obligations incurred under this
    29  section shall be allocated by the board for projects set forth
    30  under section 502.
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     1     (b)  Payments.--Beginning in fiscal year 2009-2010, money
     2  allocated under section 301 shall be used by the authority for
     3  payment of the debt service related to the issuance of
     4  obligations under subsection (a).
     5     (c)  Grants and loans.--Proceeds from obligations issued
     6  under section 501(a) and money remaining in the fund following
     7  payment of debt service shall be used for single-year or
     8  multiyear grants and loans to eligible applicants for projects
     9  under subsection (e) following review under section 502. Grants
    10  and loans shall be awarded to eligible applicants for projects
    11  of $500,000 or more.
    12     (d)  Local participation.--An eligible applicant shall
    13  provide funds of not less than 50% of the amount awarded by the
    14  authority.
    15     (e)  Applications.--Applications for grants or loans under
    16  this chapter shall be in a form determined by the board and
    17  shall contain plans and other documentation as required by the
    18  board.
    19     (f)  Guidelines.--The authority shall publish guidelines in
    20  the Pennsylvania Bulletin relating to the following:
    21         (1)  Eligibility of applicant.
    22         (2)  Required documentation.
    23         (3)  Form of application.
    24         (4)  Costs of a project that are eligible for a grant or
    25     loan.
    26         (5)  Requirements and standards of review for eligible
    27     projects.
    28  Section 502.  Distribution of funds.
    29     (a)  General rule.--The board shall distribute funds
    30  available under section 501(c) by awarding grants or loans to
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     1  eligible applicants for the following projects:
     2         (1)  Water or sewer projects owned by an eligible
     3     applicant.
     4         (2)  Flood control projects owned by an eligible
     5     applicant.
     6         (3)  High hazard dam projects owned by an eligible
     7     applicant.
     8     (b)  Review.--The authority shall consult with the
     9  appropriate agency under section 503 and award grants and loans
    10  in accordance with priorities under section 503 and guidelines
    11  adopted under section 501(e).
    12  Section 503.  Review by agencies.
    13     (a)  Water or sewer projects.--
    14         (1)  (i)  First priority shall be given to projects that
    15         will consolidate two or more water supply systems, sewage
    16         disposal systems or storm water systems owned by eligible
    17         applicants.
    18             (ii)  Second priority shall be given to regional
    19         water supply, sewage disposal or storm water projects.
    20         (2)  PENNVEST shall review all applications for grants
    21     and loans under section 502(a)(1). The review shall include
    22     an analysis of the following:
    23             (i)  The number of municipalities that will be part
    24         of the water or sewer project and the number of
    25         municipalities that will benefit the project.
    26             (ii)  Whether the construction, repair or
    27         consolidation or a water or sewer project will enable
    28         customers of the system to be more efficiently served.
    29             (iii)  The cost-effectiveness of the project when
    30         compared to other water and sewer projects.
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     1             (iv)  Improvement in the ability of the applicant to
     2         come into compliance with Federal and State statutes,
     3         regulations or other standards.
     4             (v)  The consistency of the proposed project with
     5         other State and regional resource management and economic
     6         development plans.
     7             (vi)  Whether the project serves existing populations
     8         or whether the project is intended to serve new
     9         development.
    10             (vii)  Whether the applicant has secured any required
    11         planning and permit approvals for the project from the
    12         department.
    13             (viii)  Whether the project is consistent with any
    14         applicable county or local comprehensive plans.
    15     (b)  Flood control projects.--
    16         (1)  (i)  First priority shall be given to projects that
    17         will consolidate two or more flood control systems owned
    18         by eligible applicants.
    19             (ii)  Second priority shall be given to regional
    20         flood control projects.
    21         (2)  The department shall review all applications for
    22     grants and loans under section 502(a)(2). The review shall
    23     include an analysis of the following:
    24             (i)  The number of municipalities that will be part
    25         of the flood control project and the number of
    26         municipalities that will benefit from the project.
    27             (ii)  The history of flooding in the area to be
    28         served by the project.
    29             (iii)  The cost-effectiveness of the project.
    30             (iv)  Improvement in the ability of the applicant to
    20080S0002B2012                  - 6 -     

     1         come into compliance with Federal and State statutes,
     2         regulations or other standards.
     3             (v)  Whether the applicant has secured any required
     4         planning and permit approvals for the project from the
     5         department.
     6             (vi)  Whether the project is consistent with any
     7         applicable county or local comprehensive plans.
     8     (c)  High hazard dams.--The Department of Environmental
     9  Resources shall review all applications for grants and loans
    10  under section 502(a)(3). The review shall include an analysis of
    11  the following:
    12         (1)  The level of hazard posed by the dam.
    13         (2)  Whether the proposal represents the most cost-
    14     effective way to address the hazard.
    15  Section 504.  Project review.
    16     The authority shall review the information received under
    17  section 503, prepare an assessment of each project and determine
    18  which projects will best utilize and promote the efficient
    19  management of water resources and protect the health and safety
    20  of the citizens of this Commonwealth.
    21                             CHAPTER 7
    22                             REPORTING
    23  Section 701.  Annual reports.
    24     The authority and the department shall each provide an annual
    25  report to the Majority Leader and Minority Leader of the Senate
    26  and the Majority and Minority Leader of the House of
    27  Representatives by October 1, 2008, and October 1 of each year
    28  thereafter. The report shall be posted and maintained on the
    29  official Internet website of the authority and the department
    30  and shall include:
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     1         (1)  A list of all loans and grants approved and loans
     2     repaid during the previous fiscal year.
     3         (2)  The name and address of each recipient, including
     4     the name of a contact person of the recipient.
     5         (3)  The amount of the loan or grant and a detailed
     6     description of each approved project.
     7         (4)  An analysis of how each program is improving the
     8     health and safety of the citizens of this Commonwealth.
     9                             CHAPTER 51
    10                      MISCELLANEOUS PROVISIONS
    11  Section 5101.  Expenses or costs.
    12     No money allocated for the program shall be used for expenses
    13  or costs incurred by PENNVEST or the department for review and
    14  technical assistance required under this act. No more than 1% of
    15  funds from net proceeds from the sale of obligations under this
    16  act may be used for administrative review relating to project
    17  review.
    18  Section 5102.  Funds.
    19     Funds deposited in the Pennsylvania Gaming Economic
    20  Development and Tourism Fund under 4 Pa.C.S. § 1407(c) (relating
    21  to Pennsylvania Gaming Economic Development and Tourism Fund)
    22  shall not be considered State gaming receipts for purposes of 4
    23  Pa.C.S. § 1202(b)(24) (relating to general and specific powers).
    24  Section 5103.  Limitations.
    25     Funds deposited in the Pennsylvania Gaming Economic
    26  Development and Tourism Fund shall not be used for grants or
    27  loans under 64 Pa.C.S. § 1558 (relating to Water Supply and
    28  Wastewater Infrastructure Program).
    29  Section 5104.  Inconsistent repeal.
    30     The provisions of 4 Pa.C.S. § 1407(b) are repealed insofar as
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     1  they are inconsistent with this act.
     2  Section 5105.  Effective date.
     3     This act shall take effect in 60 days.


















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