PRIOR PRINTER'S NO. 1650 PRINTER'S NO. 1666
No. 1102 Session of 2004
INTRODUCED BY GORDNER, JUBELIRER, BRIGHTBILL, MADIGAN, WENGER, RHOADES, LEMMOND, ORIE, RAFFERTY, ERICKSON, PILEGGI, CORMAN, SCHWARTZ, C. WILLIAMS, PIPPY, EARLL, MOWERY, WAUGH, THOMPSON, BOSCOLA AND PUNT, MAY 26, 2004
SENATOR M. WHITE, ENVIRONMENTAL RESOURCES AND ENERGY, AS AMENDED, JUNE 9, 2004
AN ACT 1 Amending Titles 12 (Commerce and Trade) and 64 (Public 2 Authorities and Quasi-Public Corporations) of the 3 Pennsylvania Consolidated Statutes, providing for water 4 supply and wastewater infrastructure capitalization; defining 5 "investor-owned water or wastewater enterprise"; and 6 providing for Water Supply and Wastewater Infrastructure 7 Program. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 Section 1. Title 12 of the Pennsylvania Consolidated 11 Statutes is amended by adding a chapter to read: 12 CHAPTER 39 13 WATER SUPPLY AND WASTEWATER 14 INFRASTRUCTURE CAPITALIZATION 15 Sec. 16 3901. Scope of chapter. 17 3902. Definitions. 18 3903. Establishment. 19 3904. Award of grants.
1 3905. Award and administration of loans. 2 3906. Funds. 3 § 3901. Scope of chapter. 4 This chapter relates to the Water Supply and Wastewater 5 Infrastructure Capitalization Program. 6 § 3902. Definitions. 7 The following words and phrases when used in this chapter 8 shall have the meanings given to them in this section unless the 9 context clearly indicates otherwise: 10 "Applicant." A municipality, a municipal authority, 11 industrial development corporation or an investor-owned water or 12 wastewater enterprise that submits an application under 64 13 Pa.C.S. § 1558 (relating to Water Supply and Wastewater 14 Infrastructure Program). 15 "Authority." The Commonwealth Financing Authority 16 established under 64 Pa.C.S. § 1511 (relating to authority). 17 "Cost of a project." Any of the following: 18 (1) Costs and expenses of acquisition of interests in 19 land, infrastructure, buildings, structures, equipment, 20 furnishings, fixtures and other tangible property which 21 comprises the project. 22 (2) Costs and expenses of construction, reconstruction, 23 erection, equipping, expansion, improvement, installation, 24 rehabilitation, renovation or repair of infrastructure, 25 buildings, structures, equipment and fixtures which comprise 26 the project. 27 (3) Costs and expenses of demolishing, removing or 28 relocating buildings or structures on lands acquired or to be 29 acquired. 30 (4) Costs and expenses of preparing land for 20040S1102B1666 - 2 -
1 development.
2 (5) Costs and expenses of engineering services,
3 financial services, accounting services, legal services,
4 plans, specifications, studies and surveys necessary or
5 incidental to determining the feasibility or practicability
6 of the project.
7 "Industrial development corporation." An entity certified as
8 an industrial development agency by the Pennsylvania Industrial
9 Development Authority Board under the act of May 17, 1956 (1955
10 P.L.1609, No.537), known as the Pennsylvania Industrial
11 Development Authority Act.
12 "Investor-owned water or wastewater enterprise." A nonpublic
13 entity which supplies water or provides wastewater services to
14 the public for a fee.
15 "Municipal authority." A public authority created under 53
16 Pa.C.S. Ch. 56 (relating to municipal authorities) or under the
17 former act of May 2, 1945 (P.L.382, No.164), known as the
18 Municipality Authorities Act of 1945, which supplies water or
19 provides wastewater services to the public for a fee.
20 "Project." An activity approved for a grant or loan under 64
21 Pa.C.S. § 1558 (relating to Water Supply and Wastewater
22 Infrastructure Program).
23 § 3903. Establishment.
24 There is established within the department a program to be
25 known as the Water Supply and Wastewater Infrastructure
26 Capitalization Program. The program shall finance single-year or
27 multiyear grants to municipalities and municipal authorities and
28 loans to municipalities, municipal authorities, industrial
29 development corporations and investor-owned water or wastewater
30 enterprises or FOR projects which are approved by the <--
20040S1102B1666 - 3 -
1 Commonwealth Financing Authority and which, when completed, 2 construct, expand or improve water and wastewater infrastructure 3 which is related to economic development. 4 § 3904. Award of grants. 5 Upon being notified by the authority that a grant has been 6 approved under 64 Pa.C.S. § 1558(c) (relating to Water Supply 7 and Wastewater Infrastructure Program) for a municipality or 8 municipal authority, the department shall, within 45 days of 9 receiving notice, enter into a contract with the municipality or 10 municipal authority. The contract shall be for the amount 11 approved by the authority. Upon entering into a contract with 12 the municipality or municipal authority, the department shall 13 award the grant for the amount specified in the contract. 14 § 3905. Award and administration of loans. 15 (a) Award.-- 16 (1) Upon being notified that a loan has been approved 17 under 64 Pa.C.S. § 1558(c) (relating to Water Supply and 18 Wastewater Infrastructure Program) for an applicant, the 19 department shall, within 45 days of receiving notice, enter 20 into a contract with the applicant. The contract shall be for 21 the amount approved and shall specify the terms of the loan 22 in accordance with all of the following: 23 (i) A loan shall be at an interest rate not to 24 exceed 1%. 25 (ii) A loan shall be for a term not to exceed 20 26 years. 27 (2) Upon entering into a contract with the applicant, 28 the department shall award the loan for the amount specified 29 in the contract. 30 (b) Administration.--Loans made under this section shall be 20040S1102B1666 - 4 -
1 administered by the department. Loan payments received by the 2 department for a loan awarded under this section shall be 3 deposited in the General Fund. 4 § 3906. Funds. 5 Proceeds of the borrowing authorized by the electors pursuant 6 to the act of February 12, 2004 (P.L.72, No.10), known as the 7 Water and Wastewater Treatment Project Bond Act, shall be used 8 by the department in funding grants and loans awarded under this 9 chapter. 10 Section 2. Section 1504 of Title 64, added April 1, 2004 11 (P.L.163, No.22), is amended by adding a definition to read: 12 § 1504. Definitions. 13 The following words and phrases when used in this chapter 14 shall have the meaning given to them in this section unless the 15 context clearly indicates otherwise: 16 * * * 17 "Investor-owned water or wastewater enterprise." A nonpublic 18 entity which supplies water or provides wastewater services to 19 the public for a fee. 20 * * * 21 Section 3. Title 64 is amended by adding a section to read: 22 § 1558. Water Supply and Wastewater Infrastructure Program. 23 (a) Establishment.--There is established a program to be 24 known as the Water Supply and Wastewater Infrastructure Program. 25 The program shall provide financial assistance in the form of 26 single-year or multiyear grants to municipalities and municipal 27 authorities and in the form of loans to municipalities, 28 municipal authorities, industrial development corporations and 29 investor-owned water or wastewater enterprises for projects 30 which, when completed, construct, expand or improve water and 20040S1102B1666 - 5 -
1 wastewater infrastructure which is related to economic 2 development. 3 (b) Application.--A municipality, a municipal authority, an 4 industrial development corporation or an investor-owned water or 5 wastewater enterprise may submit an application to the authority 6 requesting financial assistance for a project. The application 7 must be on the form required by the board and must include or 8 demonstrate all of the following: 9 (1) The name and address of the applicant. 10 (2) A statement of the type and amount of financial 11 assistance sought. If the applicant is requesting financial 12 assistance in the form of a grant, the request may not exceed 13 75% of the cost of the project. 14 (3) A statement of the project, including a detailed 15 statement of the cost of the project. 16 (4) A financial commitment from a responsible source for 17 any cost of the project in excess of the amount requested. If 18 the applicant is requesting financial assistance in the form 19 of a grant from the department, the financial commitment may 20 not be in the form of a grant from a Commonwealth agency. 21 (5) A firm commitment from the project user to use the 22 project upon completion. 23 (6) Proof that the applicant has secured planning and 24 permit approvals for the project from the Department of 25 Environmental Protection. 26 (7) Any other information required by the board. 27 (c) Review and approval of grant applications.-- 28 (1) If an applicant is requesting financial assistance 29 in the form of a grant, the authority, in conjunction with 30 the Department of Environmental Protection, shall review the 20040S1102B1666 - 6 -
1 application to determine all of the following: 2 (i) That the applicant is not an investor-owned 3 water or wastewater enterprise. 4 (ii) If the project is related to economic 5 development. 6 (iii) If there is a financial commitment for at 7 least 25% of the project. 8 (iv) If the source of the financial commitment is 9 from a responsible source. 10 (v) If the municipality or municipal authority is 11 firmly committed to using the project upon completion. 12 (vi) If the municipality or municipal authority has 13 secured planning and permit approvals for the project 14 from the Department of Environmental Protection. 15 (vii) That the municipality or municipal authority 16 did not receive a grant or loan under section 1551 17 (relating to Business in Our Sites Program) for the 18 project. 19 (viii) If the municipality or municipal authority 20 complied with all other criteria established by the 21 board. 22 (2) Upon being satisfied that all program requirements 23 have been met, the authority may approve the application in 24 accordance with all of the following: 25 (i) The grant may not exceed $5,000,000 per project. 26 (ii) Grants under this program shall not exceed 27 $10,000,000 in the aggregate per municipality or 28 municipal authority. 29 (iii) The aggregate amount of grants awarded under 30 this subsection shall not exceed $125,000,000. 20040S1102B1666 - 7 -
1 (3) If the authority approves the application, the 2 authority shall notify the department of the amount approved. 3 (d) Review and approval of loan applications.-- 4 (1) If an applicant is requesting financial assistance 5 in the form of a loan, the department, in conjunction with 6 the Department of Environmental Protection, shall review the 7 application to determine all of the following: 8 (i) If the project is related to economic 9 development. 10 (ii) If a financial commitment exists for any cost 11 of the project in excess of the amount requested. 12 (iii) If the source of the financial commitment is 13 from a responsible source. 14 (iv) If the project user is firmly committed to 15 using the project upon completion. 16 (v) If the applicant has secured planning and permit 17 approvals for the project from the Department of 18 Environmental Protection. 19 (vi) That the applicant did not receive a grant or 20 loan under section 1551 for the project. 21 (vii) If the applicant complied with all other 22 criteria established by the board. 23 (2) Upon being satisfied that all program requirements 24 have been met, the board may approve the application in 25 accordance with all of the following: 26 (i) The loan may not exceed $5,000,000 per project. 27 (ii) Loans under this program shall not exceed 28 $10,000,000 in the aggregate per applicant. 29 (3) If the authority approves the application, the 30 authority shall notify the department of the amount approved. 20040S1102B1666 - 8 -
1 Section 4. This act shall take effect immediately. E18L12BIL/20040S1102B1666 - 9 -