Regular Session 2021-2022 Senate Bill 0597 P.N. 1579

PRIOR PRINTER'S NOS. 645, 801

PRINTER'S NO. 1579

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

597

Session of

2021

INTRODUCED BY STEFANO, MENSCH, SCAVELLO AND VOGEL,

APRIL 21, 2021

AS AMENDED ON THIRD CONSIDERATION, APRIL 11, 2022

AN ACT

Amending Title 66 (Public Utilities) AMENDING TITLE 27

(ENVIRONMENTAL RESOURCES) of the Pennsylvania Consolidated

Statutes, providing for water and wastewater asset management

plans.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 66 27 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

CHAPTER 37 67

WATER AND WASTEWATER ASSET MANAGEMENT PLANS

Sec.

3701 6701 . Scope of chapter.

3702 6702 . Definitions.

3703 6703 . Asset management plans.

3704 6704 . Critical valve inspections and fire hydrant

inspections by water system operator.

3705 6705 . Water meters.

3706 6706 . Development of cybersecurity system.

3707 6707 . Annual information to customers.

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3708. Regulations.

3709 6708 . Contingency for public funding.

3710 6709 . Enforcement.

3711. Commission 6710. DEPARTMENT costs.

6711. REGULATIONS.

§ 3701 6701 . Scope of chapter.

This chapter relates to water and wastewater asset management

plans.

§ 3702 6702 . Definitions.

The following words and phrases when used in this chapter

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

context clearly indicates otherwise:

"Community wastewater system." A publicly or privately owned

community sewage system which serves at least 501 service

connections used by year-round residents that uses a method of

sewage collection, conveyance treatment or disposal other than

renovation in a soil absorption area or retention in a retaining

tank. The term does not include a municipally owned and operated

sewage system that owns and operates a water system which has

applied to the commission PENNSYLVANIA PUBLIC UTILITY COMMISSION

for a voluntary change in rates under section 66 PA.C.S. §

1308(d) (relating to voluntary changes in rates), within five

years of the effective date of this section.

"Community water system." A public water system which serves

at least 501 service connections used by year-round residents.

The term does not include an entity which has applied to the

commission PENNSYLVANIA PUBLIC UTILITY COMMISSION for a

voluntary change in rates under section 66 PA.C.S. § 1308(d),

within five years of the effective date of this section.

"Critical valve." A valve that is identified as critical by

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a water system operator, including a valve that is:

(1) located at a hospital or nursing home;

(2) located at an interconnection with a purveyor;

(3) a regulator control valve;

(4) a backflow valve of any type, protecting against

either a high or low hazard; or

(5) a valve in a facility, such as a treatment plant,

pump station, storage tank or well, that is needed to isolate

or operate the facility.

"DEPARTMENT." THE DEPARTMENT OF ENVIRONMENTAL PROTECTION OF

THE COMMONWEALTH.

"Lead service line." A water service pipe made of lead that

connects a water main to a building inlet and a lead pigtail,

gooseneck or other fitting that is connected to the water

service pipe.

"Wastewater system operator." A person or entity that owns

or operates a community wastewater system.

"Water system operator." A person or entity that owns or

operates a community water system.

§ 3703 6703 . Asset management plans.

(a) Community water system asset management plan.--Beginning

no later than 12 18 months after the effective date of this

section, a water system operator shall annually submit an asset

management plan, pursuant to a schedule established by the

commission DEPARTMENT and every three years thereafter to the

commission DEPARTMENT for review and approval. The asset

management plan shall be designed to inspect, maintain, repair

and renew the water system operator's water infrastructure

consistent with Federal and State laws. The community water

system asset management plan shall include at a minimum:

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(1) A water main renewal program designed to achieve a

stated replacement cycle determined by a detailed engineering

analysis of the asset material of construction, condition and

estimated service life remaining of the water mains serving

the community water system and the failure or low conveyance

capability for fire flow.

(2) A water supply and treatment program designed to

inspect, maintain, repair, renew and upgrade wells, intakes,

pumps and treatment facilities.

(3) An initial schedule for the planned repair and

replacement of water system infrastructure over a specified

time period.

(4) A general description of the location of the water

system infrastructure, including a map.

(5) A reasonable estimate of the quantity of water

system infrastructure to be improved in the coming year and a

description of the water system infrastructure repaired,

improved or replaced and the associated costs for the

immediately preceding 12-month period.

(6) Projected annual expenditures to implement the plan,

the amount of money dedicated on an annual basis to address

the highest priority projects and measures taken to ensure

that the plan is cost effective.

(7) The setting of rates that are sufficient to sustain

the current operation of the community water system and the

financing for all planned and reasonably anticipated

infrastructure improvements.

(8) The specific criteria used by the water system

operator to identify critical valves and their current

condition and fire hydrants and a map identifying each one in

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accordance with section 3704 6704 (relating to critical valve

inspections and fire hydrant inspections by water system

operator).

(9) A report of water meter testing in accordance with

section 3705 6705 (relating to water meters).

(10) A lead service line removal and replacement plan

which includes the removal and replacement of customer-owned

and water system operator-owned lines, within or connected to

the operator's community water system . , IN ACCORDANCE WITH

THE ENVIRONMENTAL PROTECTION AGENCY'S LEAD AND COPPER RULE,

THE DEPARTMENT AND THE PENNSYLVANIA PUBLIC UTILITY

COMMISSION, AS APPROPRIATE.

(11) A cross-connection control and backflow prevention

plan.

(12) Certification of a cybersecurity plan developed in

accordance with section 3706 6706 (relating to development of

cybersecurity system ).

(b) Community wastewater system asset management plan.--

Beginning no later than 12 18 months after the effective date of

this section, a wastewater system operator shall submit an asset

management plan pursuant to a schedule established by the

commission DEPARTMENT , and every three years thereafter, to the

commission DEPARTMENT for review and approval. The asset

management plan shall be designed to inspect, maintain, repair

and renew its wastewater infrastructure consistent with Federal

and State laws. The community wastewater system asset management

plan shall include at a minimum:

(1) A wastewater main renewal program designed to

achieve a stated replacement or rehabilitation cycle by a

detailed engineering analysis of the asset material of

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construction, the condition and type of main-to-service

connection and estimated service life remaining of the

wastewater mains serving the community wastewater system.

(2) A sewer inspection program designed to perform an

assessment of the collection system to establish the

collections system's condition.

(3) An initial schedule for the planned repair and

replacement of wastewater infrastructure over a specified

time period.

(4) A general description of the location of the

wastewater infrastructure, including a map.

(5) A reasonable estimate of the quantity of wastewater

infrastructure to be improved in the coming year and a

description of the wastewater infrastructure repaired,

improved or replaced and the associated costs for the

immediately preceding 12 month period.

(6) Projected annual expenditures to implement the plan,

the amount of money dedicated on an annual basis to address

the highest priority projects and measures taken to ensure

that the plan is cost effective.

(7) The setting of rates that are sufficient to sustain

the current operation of the community wastewater system and

the financing for each planned and reasonably anticipated

infrastructure improvement.

(8) A cross-connection control and backflow prevention

plan.

(9) (8) Certification of a cybersecurity plan developed

in accordance with section 3706 6706 .

include a schedule under which the water system operator or

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wastewater system operator will achieve goals of the asset

management plans.

(D) REVIEW OF PLANS.--A PLAN REQUIRED UNDER THIS SECTION

SHALL BE DUE AND UPDATED ACCORDING TO A SCHEDULE ESTABLISHED BY

THE DEPARTMENT AND SHALL BE SUBMITTED TO AND REVIEWED AND

SUBJECT TO ENFORCEMENT BY THE DEPARTMENT.

§ 3704 6704 . Critical valve inspections and fire hydrant

inspections by water system operator.

(a) Critical valve inspections.--A water system operator

shall inspect each critical valve in the water system operator's

community water system to determine the accessibility of each

critical valve for operational purposes and the critical valve's

operating condition. A water system operator shall inspect each

critical valve consistent with its asset management plan, no

less than every three years and at any time the water system

operator installs, repairs or relocates a critical valve. At a

minimum, a critical valve inspection must:

(1) follow the recommendation of the valve manufacturer

to constitute a credible test or the number of turns which

constitutes 15% of the total number of turns necessary to

completely open or completely close the valve; and

(2) comply with any other criteria required under rules

and regulations.

(b) Remedy.--A water system operator shall remedy a critical

valve found to be nonoperational and include the remediation in

its assessment ASSET management plan.

inspect at least 33% of the fire hydrants in the water system

operator's system in a manner that each fire hydrant is

inspected over the course of four years in order to determine

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each fire hydrant's working condition. The water system operator

shall formulate and implement a plan for flushing fire hydrants

and at dead ends of water mains as water quality needs dictate.

The plan for flushing may be combined with the required periodic

testing of fire hydrants.

(d) Recordkeeping and marking of fire hydrants.--

(1) A water system operator shall keep a record of each

inspection, test and flushing conducted under this section

for a period of at least six years.

(2) A water system operator that owns, solely or

jointly, a fire hydrant shall clearly mark easily

identifiable ownership information, including a number by

which the location of the hydrant may be determine, on the

water system operator's records.

(e) GPS identification.--A water system operator shall

identify the geographic location of each fire hydrant in the

water system operator's public water system using a global

positioning system based on satellite or other location

technology.

§ 3705 6705 . Water meters.

(a) Allowable error.--A water meter that has an error in

registration of more than 2% may not be placed in service and a

water meter that has an error in registration of more than 4%

may not remain in service, if water is passing through the meter

at approximately the following rates of flow:

Meter size (inches) Gallons per minute

5/8 6

3/4 10

1 20

1 1/2 30

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2 50

3 90

4 180

6 300

(b) Prohibition.--

(1) A water system operator furnishing metered water

service may not allow a water meter to remain in service

without testing the meter for accuracy and readjusting if the

meter is found to be incorrect beyond the limits established

under subsection (a) for a water meter:

(i) of one inch or less to remain in service for a

period longer than 20 years;

(ii) of more than one inch to remain in service for

a period longer than eight years.

(2) At a customer's request, the water system operator

shall perform a meter test without charge if a meter has been

in service and has not been tested for a period greater than

that specified as follows:

Meter size (Inches) Years

5/8 10

3/4 8

1 6

More than 1 4

(A) ALLOWABLE ERROR.--A WATER PROVIDER MUST SET AN ALLOWABLE

ERROR RATE AND DEVELOP A TESTING PROTOCOL AS PART OF AN ASSET

MANAGEMENT PLAN.

(1) If a water meter is tested, the original test record

shall be kept indicating:

(i) the information necessary for identifying the

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meter;

(ii) the reason for making the test;

(iii) the reading of the meter before being

disturbed; and

(iv) the accuracy of the meter together with data

taken at the time of the test.

(2) The record shall be sufficiently complete to permit

the convenient checking of the methods employed and the

calculations made.

(3) In addition to the records under paragraph (1), a

record shall be kept, indicating:

(i) the date of meter purchase;

(ii) the name of the manufacturer;

(iii) the meter's size, identification, various

places of installation with dates of installation and

removal; and

(iv) the dates and general results of each test.

(d) (C) Installation and removal of meters.--

(1) Within 60 days of installation, a water meter shall

be inspected by the water system operator for mechanical

condition and suitability of location. For a new meter or a

meter reconditioned by a manufacturer, the test results of

the manufacturer may be accepted as the installation test if

the water system operator has verified the manufacturer's

reported test results by testing the greater of 10% or 10

meters of a shipment of meters. For an emergency, a meter not

meeting the requirements of this section may be installed

temporarily.

(2) A water meter that is removed from service with the

intent for the water meter to return to service shall be

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tested within 30 days for accuracy to complete the meter's

test history. When a water meter is temporarily removed from

service, the water meter shall be properly sealed to secure

registers and measuring devices until the water meter can be

properly tested for accuracy.

§ 3706 6706 . Development of cybersecurity system.

A water system and a wastewater system operator WITH CYBER

INFRASTRUCTURE shall develop a cybersecurity program that:

(1) is developed by an accredited cybersecurity

professional;

(2) implements organizational accountability and

responsibilities for cyber risk management activities ,

INCLUDING ANY DATA ON A NETWORK ; and

(3) establishes policies, plans, processes and

procedures for identifying, reporting and mitigating cyber

risk to the water system's and wastewater system operator's

community water system or community wastewater system.

§ 3707 6707 . Annual information to customers.

A water system operator shall annually inform the operator's

customers of compliance with this chapter in a manner

established by the commission DEPARTMENT .

§ 3708. Regulations.

(a) Temporary.--The commission shall promulgate temporary

regulations as necessary to implement this chapter. The

temporary regulations shall not be subject to the following:

(1) Sections 201, 202, 203, 204 and 205 of the act of

July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law .

(2) Sections 204(b) and 301(10) of the act of October

15, 1980 (P.L.950, No.164), known as the Commonwealth

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Attorneys Act .

(3) The act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act .

(b) Expiration.--The temporary regulations promulgated under

subsection (a) shall expire upon the promulgation of final form

regulations or two years following the effective date of this

section, whichever is earlier.

§ 3709 6708 . Contingency for public funding.

Before a water or wastewater system operator may receive a

subsidized loan or other financial assistance from the

Commonwealth, the water or wastewater system operator must

demonstrate that the operator has developed or is in the process

of developing an asset management program required under this

chapter.

§ 3710 6709 . Enforcement.

A water system operator or waste water system operator that

fails to file an asset management plan or comply with a

commission approved plan shall, notwithstanding any other

provision of law, be deemed a public utility and regulated as a

public utility. FOR A WATER SYSTEM OPERATOR OR WASTEWATER SYSTEM

OPERATOR SPECIFIED UNDER SECTION 6703(D) (RELATING TO ASSET

MANAGEMENT PLANS), THE DEPARTMENT SHALL ISSUE AN ORDER, ENTER

INTO A CONSENT ORDER, ASSESS A CIVIL PENALTY OR TAKE ANY OTHER

ACTION NECESSARY TO ENFORCE COMPLIANCE WITH THIS CHAPTER THAT

THE DEPARTMENT IS AUTHORIZED TO TAKE FOR VIOLATIONS UNDER ANY OF

THE FOLLOWING:

(1) THE ACT OF JUNE 22, 1937 (P.L.1987, NO.394), KNOWN

AS THE CLEAN STREAMS LAW.

(2) THE ACT OF JANUARY 24, 1966 (1965 P.L.1535, NO.537),

KNOWN AS THE PENNSYLVANIA SEWAGE FACILITIES ACT.

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(3) THE ACT OF MAY 1, 1984 (P.L.206, NO.43), KNOWN AS

THE PENNSYLVANIA SAFE DRINKING WATER ACT.

(4) CHAPTER 31 (RELATING TO WATER RESOURCES PLANNING).

§ 3711. Commission 6710. DEPARTMENT costs.

The program costs for commission DEPARTMENT implementation

and enforcement of this chapter shall be included in the

commission's DEPARTMENT'S proposed budget and shall be assessed

upon a community water system operator or owner and a community

wastewater system operator or owner in accordance with section

510 (relating to assessment for regulatory expenses upon public

utilities). For purposes of section 510, the definition of

"public utility" shall include a community water system operator

or owner or community wastewater system operator or owner

required to file under this section and not subject to section

510 assessments. For the purposes of section 510 assessments,

community water systems and community wastewater systems may be

grouped with other public utilities furnishing the same kind of

service . A community water system operator or owner and a

community wastewater system operator or owner shall report

annually to the commission DEPARTMENT the gross intrastate

operating revenues for the preceding calendar year.

§ 6711. REGULATIONS.

THE DEPARTMENT SHALL PROMULGATE REGULATIONS TO IMPLEMENT AND

ADMINISTER THIS CHAPTER.

Section 2. This act shall take effect as follows:

(1) The following provisions shall take effect

immediately:

(i) This section.

(ii) The addition of 66 27 Pa.C.S. §§ 3710 6709 and

3711 6710.

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(2) The remainder of this act shall take effect in six

months.

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