See other bills
under the
same topic
                                                      PRINTER'S NO. 3798



No. 2549 Session of 2008


           MAY 20, 2008

                                     AN ACT

     1  Amending the act of March 1, 1988 (P.L.82, No.16), entitled "An
     2     act providing for the establishment, implementation and
     3     administration of the Pennsylvania Infrastructure Investment
     4     Authority; imposing powers and duties on a board of trustees;
     5     transferring the rights, powers, duties and obligations of
     6     the Water Facilities Loan Board to the Pennsylvania
     7     Infrastructure Investment Authority; providing for the
     8     issuance of notes and bonds; providing for financial
     9     assistance and for a comprehensive water facilities plan;
    10     authorizing a referendum to incur indebtedness; making an
    11     appropriation; and making repeals," further providing for
    12     legislative intent, for definitions and for financial
    13     assistance.

    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16     Section 1.  Section 2 of the act of March 1, 1988 (P.L.82,
    17  No.16), known as the Pennsylvania Infrastructure Investment
    18  Authority Act, amended December 16, 1992 (P.L.1137, No.149), is
    19  amended to read:
    20  Section 2.  Legislative intent.
    21     The General Assembly finds and declares that:

     1         (1)  The health of millions of citizens of this
     2     Commonwealth is at risk due to substandard and deteriorated
     3     water supply and sewage disposal systems.
     4         (2)  Many water and sewage systems in this Commonwealth
     5     are aging, outmoded, inadequate, deteriorating and operating
     6     above capacity, and many areas have to limit their growth
     7     solely due to lack of proper water supply and sewage
     8     disposal.
     9         (3)  The economic revitalization of this Commonwealth is
    10     being stifled by a lack of clean water and adequate sewage
    11     facilities.
    12         (4)  Many Pennsylvania communities have antiquated or
    13     inadequate storm water systems thereby resulting in storm
    14     water flows which threaten the public health and safety due
    15     to flooding, overloaded sewer lines, soil erosion, sinkhole
    16     development and expansion and reduction in surface water and
    17     groundwater quality.
    18         (4.1)  Many communities in this Commonwealth are
    19     threatened by unsafe high hazard dams so located as to
    20     endanger the health and safety of populated areas.
    21         (5)  Financing of water and sewage projects and storm
    22     water projects at affordable cost is not currently available
    23     in many areas of this Commonwealth.
    24         (6)  The lack of affordable financing to implement storm
    25     water management plan recommendations has resulted in
    26     compliance by only 17 counties with the requirements of the
    27     act of October 4, 1978 (P.L.864, No.167), known as the Storm
    28     Water Management Act.
    29         (6.1)  County and local governmental units struggle to
    30     find the necessary funds to repair unsafe high hazard dams in
    20080H2549B3798                  - 2 -     

     1     need of urgent repair.
     2         (7)  In order to assist in financing projects to protect
     3     the health and safety of the citizens of this Commonwealth
     4     and to promote the economic development of Pennsylvania, the
     5     General Assembly has determined that it is necessary to
     6     establish the Pennsylvania Infrastructure Investment
     7     Authority and to provide funding of the authority programs.
     8     Section 2.  Section 3 of the act, amended December 16, 1992
     9  (P.L.1137, No.149) and July 14, 2005 (P.L.299, No.51), is
    10  amended to read:
    11  Section 3.  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 Pennsylvania Infrastructure Investment
    16  Authority.
    17     "Board."  The board of directors of the authority.
    18     "Bonds."  Bonds, notes or other evidences of indebtedness
    19  issued by the authority pursuant to this act.
    20     "Department."  The Department of Environmental [Resources]
    21  Protection of the Commonwealth.
    22     "Eligible cost."  The cost of all labor, materials, machinery
    23  and equipment, lands, property, rights and easements, plans and
    24  specifications, surveys or estimates of costs and revenues, pre-
    25  feasibility studies, engineering and legal services, and all
    26  other expenses necessary or incident to the acquisition,
    27  construction, improvement, expansion, extension, repair or
    28  rehabilitation of all or part of a project.
    29     "Governmental unit."  Any agency of the Commonwealth or any
    30  county, municipality or school district, or any agency,
    20080H2549B3798                  - 3 -     

     1  instrumentality, authority or corporation thereof, or any public
     2  body having local or regional jurisdiction or power.
     3     "High hazard dam."  A dam so located that it will endanger
     4  populated areas downstream if it fails.
     5     "Project."  The eligible costs associated with the
     6  acquisition, construction, improvement, expansion, extension,
     7  repair, rehabilitation or security measures of all or part of
     8  any facility or system, whether publicly or, in the case of
     9  paragraph (1) or (2), privately owned:
    10         (1)  for the collection, treatment or disposal of
    11     wastewater, including industrial waste;
    12         (2)  for the supply, treatment, storage or distribution
    13     of drinking water;
    14         (3)  for the control of storm water, which may include,
    15     but need not be limited to, the transport, storage and the
    16     infiltration of storm water; [or]
    17         (4)  for the best management practices to address point
    18     or nonpoint source pollution associated with storm water
    19     runoff or any other innovative techniques identified in the
    20     county-prepared watershed plans pursuant to the act of
    21     October 4, 1978 (P.L.864, No.167), known as the Storm Water
    22     Management Act[.]; or
    23         (5)  for the repair of high hazard dams designated by the
    24     Department of Environmental Protection as unsafe and in
    25     urgent need of repair which may include costs associated with
    26     breaching a dam.
    27     "Secretary."  The Secretary of Environmental [Resources]
    28  Protection of the Commonwealth.
    29     "Security measures."  Infrastructure improvements to publicly
    30  or privately owned water or wastewater systems designed in whole
    20080H2549B3798                  - 4 -     

     1  or in part for the protection of the collection, treatment and
     2  distribution of potable water and treatment of wastewater from
     3  threats and vulnerabilities to ensure the public health of the
     4  systems' customers in accordance with the Environmental
     5  Protection Agency's Drinking Water State Revolving Fund Program
     6  and the Clean Water State Revolving Fund Program established
     7  under section 1452 of the Safe Drinking Water Act (Public Law
     8  93-523, 42 U.S.C. § 300j-12) and Title VI of the Federal Water
     9  Pollution Control Act (62 Stat. 1155, 33 U.S.C. §§ 1381-1387),
    10  respectively, and any other program for which there are funds or
    11  accounts administered by the authority.
    12     "Storm water."  Drainage runoff from the surface of the land
    13  resulting from precipitation or snow or ice melt.
    14     "Unsafe dam."  A dam designated by the Department of
    15  Environmental Protection with deficiencies of such a nature that
    16  if not corrected, the deficiencies could cause a failure of the
    17  dam with subsequent loss of lives or substantial property
    18  damage.
    19     "Water Facilities Loan Board."  The board established under
    20  32 Pa.C.S. § 7504 (relating to Water Facilities Loan Board).
    21     Section 3.  Section 10(a), (b), (e) and (j) of the act,
    22  amended December 16, 1992 (P.L.1137, No.149), are amended and
    23  the section is amended by adding a subsection to read:
    24  Section 10.  Financial assistance.
    25     (a)  Criteria for obtaining assistance.--In reviewing
    26  applications for financial assistance, the authority shall
    27  consider:
    28         (1)  Whether the project will improve the health, safety,
    29     welfare or economic well-being of the people of this
    30     Commonwealth.
    20080H2549B3798                  - 5 -     

     1         (2)  Whether the proposed project will lead to an
     2     effective or complete solution to the problems experienced
     3     with the water management and control supply, sewage
     4     treatment or storm water system or unsafe high hazard dam to
     5     be aided, including compliance with State and Federal laws,
     6     regulations or standards.
     7         (3)  The cost-effectiveness of the proposed project in
     8     comparison with other alternatives, including other
     9     institutional, financial and physical alternatives.
    10         (4)  The consistency of the proposed project with other
    11     State and regional resource management and economic
    12     development plans.
    13         (5)  Whether the applicant has demonstrated its ability
    14     to operate and maintain the project in a proper manner.
    15         (6)  Whether the project encourages consolidation of
    16     water or sewer systems, where such consolidation would enable
    17     the customers of the systems to be more effectively and
    18     efficiently served.
    19         (7)  The availability of other sources of funds at
    20     reasonable rates to finance all or a portion of the project
    21     and the need for authority assistance to finance the project
    22     or to attract the other sources of funding[.] unless the
    23     application is for a high hazard dam project, in which case
    24     this factor shall not be considered.
    25     (b)  Financing priorities.--In assigning priorities for
    26  projects, the board shall consult with the Department of
    27  [Commerce] Community and Economic Development and the
    28  department. In addition to any requirements of Federal law
    29  imposed on the use of Federal funds, the board shall determine
    30  priorities based on factors which include, but are not limited
    20080H2549B3798                  - 6 -     

     1  to:
     2         (1)  Benefits to public health.
     3         (2)  The contribution to and impact of the project on
     4     economic development as well as social and environmental
     5     values.
     6         (3)  Benefits to public safety or welfare.
     7         (4)  Improvement in the ability of an applicant to come
     8     into compliance with State and Federal statutes, regulations
     9     and standards.
    10         (5)  Improvement in the adequacy or efficiency of the
    11     water management and control supply, sewage treatment or
    12     storm water system.
    13         (6)  The cost-effectiveness of the project.
    14         (7)  Whether the governmental unit to be served by a
    15     sewage treatment system is subject to construction or
    16     connection limitations issued by the department and the date
    17     that any such limitation was issued.
    18         (8)  Whether the project encourages consolidation of
    19     water or sewer systems, where such consolidation would enable
    20     the customers of the systems to be more effectively and
    21     efficiently served.
    22         (9)  Whether a storm water project is sponsored by more
    23     than one municipality and is located at strategic locations
    24     determined by the basin-wide studies undertaken under the act
    25     of October 4, 1978 (P.L.864, No.167), known as the Storm
    26     Water Management Act, or other joint municipal or county
    27     efforts.
    28         (10)  Whether a project will resolve known drainage or
    29     storm water-related problems.
    30     * * *
    20080H2549B3798                  - 7 -     

     1     (b.2)  High hazard dam projects.--
     2         (1)  In the case of a high hazard dam project, only a
     3     county or local governmental unit may qualify for financial
     4     assistance under this act.
     5         (2)  The department shall be responsible for the
     6     designation of a dam as an unsafe high hazard dam.
     7         (3)  Only unsafe high hazard dams as designated by the
     8     department under paragraph (2) shall be eligible to receive
     9     grant funds.
    10         (4)  All funding awards for unsafe high hazard dam
    11     projects shall be in the form of a grant award and such grant
    12     award shall not:
    13             (i)  Exceed 30% of the eligible costs of the project.
    14             (ii)  Be subject to the analysis of subsection (e).
    15             (iii)  Be subject to the analysis of subsection
    16         (a)(7).
    17         (5)  The funding awards for unsafe high hazard dam
    18     projects shall be limited to those funds provided.
    19     * * *
    20     (e)  Grants.--Grants shall be made only when the board, in
    21  its sole discretion, determines that the financial condition of
    22  the recipient is such that repayment of a loan is unlikely and
    23  that the recipient will not be able to proceed with the project
    24  without a grant[.] unless the application is for an unsafe high
    25  hazard dam project, in which case this analysis shall not be
    26  required. In considering grant applications, the authority may
    27  recommend, either before or after the determination of the
    28  board, that the recipient pursue other State grant programs,
    29  including, but not limited to, the Site Development program, the
    30  Federal Small Communities Block Grant program and the Federal
    20080H2549B3798                  - 8 -     

     1  Urban Development Action Grant program. Should the board
     2  determine that a grant is necessary from the authority, the
     3  board shall attempt to mix the grant funds with loan funds, if
     4  financially possible unless the award is for an unsafe high
     5  hazard dam project.
     6     * * *
     7     (j)  Continuing education of operators.--No agreement with
     8  individuals or entities shall be valid in the absence of an
     9  agreement by the individuals or entities seeking assistance
    10  under this act to assure that the system operators are
    11  participating or will participate in continuing education
    12  programs developed by the Department of Environmental
    13  [Resources] Protection. If the board determines that the system
    14  operator of a system receiving assistance is not participating
    15  in continuing education programs, the board shall take all steps
    16  necessary to cease all financial assistance and recover all
    17  prior payments, including, but not limited to, the immediate
    18  repayment of any outstanding loans and interest and any grants.
    19  The provisions of this subsection shall not apply to cases where
    20  financial assistance is provided for storm water projects.
    21     * * *
    22     Section 4.  This act shall take effect immediately.

    C14L64DMS/20080H2549B3798        - 9 -