Pennsylvania Act 2008-64 — WATER AND SEWER SYSTEMS ASSISTANCE ACT - ENACTMENT

Act text

WATER AND SEWER SYSTEMS ASSISTANCE ACT - ENACTMENT
                  Act of Jul. 9, 2008, P.L. 915, No. 64               Cl. 71
                                  AN ACT

     Authorizing the incurring of indebtedness, with the approval of
        the electors, of $400,000,000 for the acquisition, repair,
        construction, reconstruction, rehabilitation, extension,
        expansion and improvement of water supply and sewage
        treatment systems; and providing for the powers and duties of
        the Pennsylvania Infrastructure Investment Authority.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

     Section 1.  Short title.
        This act shall be known and may be cited as the Water and
     Sewer Systems Assistance Act.
     Section 2.  Legislative findings.
        The General Assembly finds and declares as follows:
            (1)  Pennsylvania has an estimated 2,200 drinking water
        systems and 1,060 wastewater systems.
            (2)  Drinking water and wastewater treatment systems
        protect public health and the environment and are responsible
        for cleaning and treating waters of this Commonwealth.
            (3)  Changing Federal and State regulations relative to
        the treatment of drinking water and wastewater are creating
        financial problems for drinking water and wastewater
        treatment systems.
            (4)  Many of the drinking water and wastewater treatment
        systems must manage aging infrastructure, and the maintenance
        and replacement costs are estimated to be in excess of
        $18,000,000,000.
            (5)  According to the Environmental Protection Agency,
        Pennsylvania ranks seventh in infrastructure financing needs
        for water infrastructure.
            (6)  Additional funding sources are needed if
        Pennsylvania is to have a sustainable water infrastructure in
        the future.
            (7)  The Governor signed executive order 2008-02,
        creating a water infrastructure task force to ensure that
        Pennsylvania maintains a sustainable drinking water and
        wastewater infrastructure.
            (8)  It is beyond the financial means of local ratepayers
        to fund all the improvements that are needed for a
        sustainable drinking water and wastewater infrastructure.
     Section 3.  Definitions.
        The following words and phrases when used in this act shall
     have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Authority."  The Pennsylvania Infrastructure Investment
     Authority.
        "Board."  The board of directors of the Pennsylvania
     Infrastructure Investment Authority.
        "Eligible cost."  The cost of all labor, materials, necessary
     operational machinery and equipment, lands, property, rights and
     easements, plans and specifications, surveys, estimates of costs
     and revenues, prefeasibility studies, engineering and legal
     services and all other expenses necessary or incident to the
     acquisition, construction, improvement, expansion, extension,
     repair or rehabilitation of all or part of a project.
        "Grant."  The award and distribution of funds for eligible
     costs by the Pennsylvania Infrastructure Investment Authority if
     repayment is not required.
        "Municipality."  A county, city, borough, incorporated town,
     township, home rule municipality and any municipal authority
     responsible for the provision of drinking water or sewage
     treatment services to any of them.
        "Nutrient."  Nitrogen or phosphorus.
        "Nutrient credit."  The unit of compliance that corresponds
     with a pound of reduction of a nutrient and that has been
     approved by the Department of Environmental Protection.
        "Project."  The acquisition, construction, improvement,
     expansion, extension, repair, rehabilitation or security
     measures of all or part of a facility or system for:
            (1)  the collection, treatment or disposal of wastewater,
        including industrial waste;
            (2)  the supply, treatment, storage or distribution of
        drinking water;
            (3)  the control and elimination of combined sewer
        overflows, defined as a point source discharge from a sewer
        system that combines sanitary wastewaters and storm waters;
            (4)  the reductions of nitrogen, phosphorus and sediment
        to comply with Pennsylvania's Chesapeake Bay Tributary
        Strategy, including the purchase or trading of nutrient
        credits;
            (5)  the control of storm water, which may include, but
        is not limited to, the transport, storage and the
        infiltration of storm water;
            (6)  the best management practices to address point or
        nonpoint source pollution associated with storm water runoff
        or any other innovative techniques identified in the county-
        prepared watershed plans pursuant to the act of October 4,
        1978 (P.L.864, No.167), known as the Storm Water Management
        Act;
            (7)  the control of nonpoint sources of pollution
        identified in programs established under section 319 of the
        Federal Water Pollution Control Act (62 Stat. 1155, 33 U.S.C.
        § 1329); or
            (8)  the consolidation or regionalization of two or more
        water supply systems, sewage disposal systems or storm water
        systems managed or operated as an integrated system,
        regardless of whether the system is physically
        interconnected.
     Section 4.  Approval of debt incurrence by electors.
        The question of incurring indebtedness of $400,000,000 for
     grants and loans for the cost of all labor, materials, necessary
     operational machinery and equipment, lands, property, rights and
     easements, plans and specifications, surveys, estimates of costs
     and revenues, prefeasibility studies, engineering and legal
     services and all other expenses necessary or incident to the
     acquisition, construction, improvement, expansion, extension,
     repair or rehabilitation of all or part of a project shall be
     submitted to the electors at the next primary, municipal or
     general election following the effective date of this section.
     Section 5.  Certification.
        The Secretary of the Commonwealth shall certify the question
     under section 4 to the county board of elections.
     Section 6.  Form of question.
        The question under section 4 shall be in substantially the
     following form:
            Do you favor the incurring of indebtedness by the
            Commonwealth of $400,000,000 for grants and loans to
            municipalities and public utilities for the cost of all
            labor, materials, necessary operational machinery and
            equipment, lands, property, rights and easements, plans
            and specifications, surveys, estimates of costs and
            revenues, prefeasibility studies, engineering and legal
            services and all other expenses necessary or incident to
            the acquisition, construction, improvement, expansion,
            extension, repair or rehabilitation of all or part of
            drinking water system, storm water, nonpoint source
            projects, nutrient credits and wastewater treatment
            system projects?
     Section 7.  Election.
        The election shall be conducted in accordance with the act of
     June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
     Election Code.
     Section 8.  Proceeds.
        (a)  Use.--Proceeds of borrowing shall be deposited in a
     special fund in the State Treasury and shall be used for grants
     and loans by the Pennsylvania Infrastructure Investment
     Authority for projects.
        (b)  Appropriation.--The proceeds of all bonds sold under
     this act are hereby appropriated on a continuing basis to the
     Pennsylvania Infrastructure Investment Authority for the purpose
     of making loans and grants under this act.
        (c)  Borrowing authorized.--Pursuant to section 7(a)(3) of
     Article VIII of the Constitution of Pennsylvania, the issuing
     officials are authorized and directed to borrow, on the credit
     of the Commonwealth, money not exceeding in the aggregate
     $400,000,000 in increments of not more than $150,000,000 every
     year over a three-year period after the effective date of this
     section.
        (d)  Grant limitations.--
            (1)  The aggregate amount of grants awarded under this
        section shall not exceed $200,000,000.
            (2)  The board shall have no power to award any grant,
        loan or combination thereof that exceeds the following
        monetary limits:
                (i)  For a sewage treatment system that has an annual
            average daily flow greater than 100,000,000 gallons per
            day or a water system that serves a population greater
            than 300,000 people, $50,000,000.
                (ii)  For a sewage treatment system that has an
            annual average daily flow greater than 50,000,000 gallons
            per day but less than 100,000,000 gallons per day or a
            water system that serves a population between 100,000 and
            300,000 people, $35,000,000.
                (iii)  For a sewage treatment system that has an
            annual average daily flow greater than 20,000,000 gallons
            per day but less than 50,000,000 gallons per day or a
            water system that serves a population between 10,000 and
            100,000 people, $25,000,000.
                (iv)  For a sewage treatment system that has an
            annual average daily flow greater than 10,000,000 gallons
            per day but less than 20,000,000 gallons per day or a
            water system that serves a population between 3,301 and
            10,000 people, $20,000,000.
                (v)  For a sewage treatment system that has an annual
            average daily flow greater than 1,000,000 gallons per day
            but less than 10,000,000 gallons per day or a water
            system that serves a population between 501 and 3,300
            people, $15,000,000.
                (vi)  For a sewage treatment system that has an
            annual average daily flow less than 1,000,000 gallons per
            day or a water system that serves a population less than
            500 people, $10,000,000.
            (3)  Notwithstanding the provisions of paragraph (2), the
        board, by a vote of at least nine members, may authorize a
        grant in excess of the limits established in paragraph (2) to
        comprehensive projects providing or proposing consolidated
        service to a region encompassing all or parts of two or more
        municipalities.
            (4)  Proceeds from the bond issued under this act may be
        used for grants or loans to assist a public utility to
        acquire a small sewer utility or small water utility as
        defined under 66 Pa.C.S. § 529 (relating to power of
        commission to order acquisition of small water and sewer
        utilities) if both of the following apply:
                (i)  The Pennsylvania Public Utility Commission has
            determined that the small sewer utility or small water
            utility has provided unsafe, inadequate or unreasonable
            service.
                (ii)  The Pennsylvania Public Utility Commission has
            assessed civil penalties against the small sewer utility
            or small water utility.
        (e)  Construction.--Nothing in this act shall prohibit the
     use of funds allocated under the provisions of this act for
     projects involving the purchase or trading of nutrient credits.
     Section 9.  Powers and duties of board.
        (a)  General rule.--By March 31, 2009, the board shall
     implement and administer the proceeds of the bond under section
     8 in conformity with the provisions of section 10 of the act of
     March 1, 1988 (P.L.82, No.16), known as the Pennsylvania
     Infrastructure Investment Authority Act.
        (b)  Specific powers of board.--In addition to any powers
     under subsection (a), the board shall have the power to:
            (1)  Develop forms for the applications of grants and
        loans.
            (2)  Promulgate regulations to implement the provisions
        of this act.
            (3)  Provide for the implementation of a commercial paper
        program and the issuance of bonds, notes or other obligations
        in groups or individually in a manner consistent with the
        requirements of section 7 of the Pennsylvania Infrastructure
        Investment Authority Act. Bonds issued under the program
        established under this paragraph shall not be required to be
        sold at public sale.
            (4)  Take all other actions necessary to implement and
        administer the provisions of this act.
     Section 10.  Effective date.
        This act shall take effect immediately.