Regular Session 2021-2022 Senate Bill 0916 P.N. 1194

PRINTER'S NO. 1194

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

916

Session of

2021

INTRODUCED BY L. WILLIAMS, COLLETT, MUTH, HUGHES, KANE, FONTANA,

CAPPELLETTI, STREET, COSTA, PITTMAN, SANTARSIERO, COMITTA AND

SCHWANK, NOVEMBER 1, 2021

REFERRED TO LOCAL GOVERNMENT, NOVEMBER 1, 2021

AN ACT

Amending the act of April 9, 1929 (P.L.343, No.176), entitled

"An act relating to the finances of the State government;

providing for cancer control, prevention and research, for

ambulatory surgical center data collection, for the Joint

Underwriting Association, for entertainment business

financial management firms, for private dam financial

assurance and for reinstatement of item vetoes; providing for

the settlement, assessment, collection, and lien of taxes,

bonus, and all other accounts due the Commonwealth, the

collection and recovery of fees and other money or property

due or belonging to the Commonwealth, or any agency thereof,

including escheated property and the proceeds of its sale,

the custody and disbursement or other disposition of funds

and securities belonging to or in the possession of the

Commonwealth, and the settlement of claims against the

Commonwealth, the resettlement of accounts and appeals to the

courts, refunds of moneys erroneously paid to the

Commonwealth, auditing the accounts of the Commonwealth and

all agencies thereof, of all public officers collecting

moneys payable to the Commonwealth, or any agency thereof,

and all receipts of appropriations from the Commonwealth,

authorizing the Commonwealth to issue tax anticipation notes

to defray current expenses, implementing the provisions of

section 7(a) of Article VIII of the Constitution of

Pennsylvania authorizing and restricting the incurring of

certain debt and imposing penalties; affecting every

department, board, commission, and officer of the State

government, every political subdivision of the State, and

certain officers of such subdivisions, every person,

association, and corporation required to pay, assess, or

collect taxes, or to make returns or reports under the laws

imposing taxes for State purposes, or to pay license fees or

other moneys to the Commonwealth, or any agency thereof,

every State depository and every debtor or creditor of the

Commonwealth," providing for American Rescue Plan water,

sewer and storm water assistance grants; and making an

appropriation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of April 9, 1929 (P.L.343, No.176), known

as The Fiscal Code, is amended by adding an article to read:

ARTICLE I-I

AMERICAN RESCUE PLAN WATER, SEWER AND

STORM WATER ASSISTANCE GRANTS.

Section 101-I. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Account." The COVID-19 Response Restricted Account

established under section 110-C.

"Agency." The Commonwealth Financing Authority established

under 64 Pa.C.S. Ch. 15 (relating to Commonwealth Financing

Authority).

"American Rescue Plan." American Rescue Plan Act of 2021

(Public Law 117-2, 135 Stat. 4).

"Authority." The Pennsylvania Infrastructure Investment

Authority established under the act of March 1, 1988 (P.L.82,

No.16), known as the Pennsylvania Infrastructure Investment

Authority Act.

"Current fiscal year." The fiscal year beginning July 1,

2021, and ending June 30, 2022.

"Eligible cost." The cost of all labor, materials, machinery

and equipment, lands, property, rights and easements, plans and

specifications, surveys or estimates of costs and revenues,

prefeasibility studies, engineering and legal services and all

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other expenses necessary or incident to the acquisition,

construction, improvement, expansion, extension, repair or

rehabilitation of all or part of a project.

"Municipal authority." A body politic and corporate created

under any of the following:

(1) The former act of June 28, 1935 (P.L.463, No.191),

known as the Municipality Authorities Act of one thousand

nine hundred and thirty-five.

(2) The former act of May 2, 1945 (P.L.382, No.164),

known as the Municipality Authorities Act of 1945.

(3) 53 Pa.C.S. Ch. 56 (relating to municipal

authorities).

"Municipality." Either of the following:

(1) As defined in 1 Pa.C.S. § 1991 (relating to

definitions).

(2) A municipal authority or municipality authority.

"Program." The American Rescue Plan Water, Sewer and Storm

Water Infrastructure Assistance Grant Program established under

section 105-I(a).

"Project." The eligible costs associated with the

acquisition, construction, improvement, expansion, extension,

repair, rehabilitation or security measures of all or part of

any publicly owned facility or system for any of the following:

(1) The collection, treatment or disposal of wastewater,

including industrial waste.

(2) The supply, treatment, storage or distribution of

drinking water.

(3) The control of pollution associated with storm

water, including the transport, storage and the infiltration

of storm water.

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(4) The best management practices to address pollution,

including innovative techniques developed to comply with the

act of June 22, 1937 (P.L.1987, No.394), known as The Clean

Streams Law, or identified in the county-prepared watershed

plans under the act of October 4, 1978 (P.L.864, No.167),

known as the Storm Water Management Act, or as identified in

Pennsylvania's Nonpoint Source Management Program Update, as

required under section 319(b) of the Federal Water Pollution

Control Act (62 Stat. 1155, 33 U.S.C. § 1329(b)).

"Small water system." As defined in the act of March 16,

1992 (P.L.10, No.5), known as the Small Water Systems Assistance

Act.

"Storm water." Drainage runoff from the surface of the land

resulting from precipitation, snow or ice melt.

Section 102-I. Construction with General Appropriation Act of

2021.

Any appropriations under this article shall be in addition to

any appropriation under the act of June 30, 2021 (P.L. , No.1A),

known as the General Appropriation Act of 2021.

Section 103-I. Appropriations from account.

(a) Coronavirus State Fiscal Recovery Fund.--Notwithstanding

section 111-C(g)(1), $350,000,000 of the Federal money from the

Coronavirus State Fiscal Recovery Fund in the account is

appropriated for the purpose of the award of grants to

municipalities for projects as provided in this article.

(b) Amounts.--From the appropriation under subsection (a):

(1) $250,000,000 is allocated to the authority for the

purpose of awarding grants under the program .

(2) $100,000,000 is allocated to the agency for the

purpose of awarding grants under the program .

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Section 104-I. Continuing appropriations.

The appropriations under this article are continuing

appropriations and do not automatically lapse as of the close of

the current fiscal year.

Section 105-I. American Rescue Plan Water, Sewer and Storm

Water Infrastructure Assistance Grant Program.

(a) Establishment.--The American Rescue Plan Water, Sewer

and Storm Water Infrastructure Assistance Grant Program is

established. The program shall provide funding for grants as

follows:

(1) The authority shall award grants to municipalities

for projects under the act of March 1, 1988 (P.L.82, No.16),

known as the Pennsylvania Infrastructure Investment Authority

Act.

(2) The agency shall award grants to municipalities for

projects that are small water systems under the act of March

16, 1992 (P.L.10, No.5), known as the Small Water Systems

Assistance Act.

(b) Funds.--The following shall apply:

(1) The amount of grant funds awarded by the authority

or agency to a municipality under this article shall be

matched by Federal or local money at a ratio of 3.50 grant

dollars to one Federal or local dollar. The authority or

agency shall verify the Federal or local match for a project

at the time.

(2) Grant funds received by a municipality under this

article shall be used for projects. To the extent permitted

by Federal law or guidance, associated administrative costs

may not exceed 10% of the total amount of grant funds.

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requirements of the Clean Water State Revolving Fund and the

Drinking Water State Revolving Fund as outlined in guidance from

the United States Department of the Treasury.

Section 106-I. Authority and agency duties.

The authority and the agency shall have the following powers

and duties:

(1) Implement and administer the program in accordance

with Federal law or guidance. The agency shall compile and

transmit any information necessary to implement the program

and comply with programmatic and eligibility requirements

under Federal law or guidance.

(2) Monitor municipal authorities' administration of the

grant to ensure compliance with Federal and State

requirements.

(3) Allocate and disburse grant funds to municipalities.

(4) Require municipalities to submit reports containing

information required by the authority or agency and as

necessary for compliance with the American Rescue Plan in the

form and by the deadline prescribed by the authority or

agency.

(5) Monitor, inspect or audit the financial, operating

and accounting records of a municipal authority or contracted

entity that receives grant funds, if deemed necessary by the

authority or agency.

(6) Withhold, recover or reduce grant funds of a

municipality, municipal authority or contracted entity

determined to have administered the program in violation of

Federal or State requirements.

(7) Recoup and reallocate unobligated grant funds as

identified by the municipality, municipal authority or

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contracted entity.

(8) No later than 90 days after December 31, 2023, or

any updated Federal deadline for the use of funds under the

American Rescue Plan, whichever is later, issue a report to

the chairperson and minority chairperson of the

Appropriations Committee of the Senate and the chairperson

and minority chairperson of the Appropriations Committee of

the House of Representatives and shall post the report to the

authority's or agency's publicly accessible Internet website.

The report shall include the following information:

(i) The total amount of grant funds received by a

municipality.

(ii) The total amount of grant funds spent by a

municipality for infrastructure improvements under

section 105-I(a) and a brief description of the

improvements.

(iii) The total number of small water systems that

received improvements and a brief description of the

types of improvements.

(iv) The total number of sewer systems that received

improvements and a brief description of the types of

improvements.

(v) The total number of wastewater systems that

received improvements and a brief description of the

types of improvements.

(vi) The total amount of infrastructure assistance

provided under section 105-I(a).

(vii) An itemization of all expenditures for

administrative costs.

Section 107-I. Municipalities.

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The local county officials of each municipal authority that

receives a grant under this article shall have the power and

duty to:

(1) Utilize grant funds for the improvement of water,

sewer and wastewater infrastructure in accordance with this

article, information from the authority or agency and Federal

law or guidance.

(2) Establish or maintain, in agreement with another

municipality, local collaborative arrangements for the

improvement of water, sewer and wastewater infrastructure

under this article.

(3) Submit monthly reports, which shall include

identified excess or insufficient funding and an itemization

of expenditures for administrative costs to the authority or

agency. The reports shall be subject to audit as determined

by the authority or agency.

Section 108-I. Expiration.

This article shall expire on the later of:

(1) June 30, 2024.

(2) Any updated Federal deadline for the use of funds

under the American Rescue Plan.

Section 2. This act shall take effect in 60 days.

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