Pennsylvania Act 1992-149 — PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY ACT - AMEND STORM WATER PROJECTS

Act text

PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY ACT - AMEND STORM WATER
                                 PROJECTS
                 Act of Dec. 16, 1992, P.L. 1137, No. 149             Cl. 64
                             Session of 1992
                               No. 1992-149

     SB 275

                                  AN ACT

     Amending the act of March 1, 1988 (P.L.82, No.16), entitled "An
        act providing for the establishment, implementation and
        administration of the Pennsylvania Infrastructure Investment
        Authority; imposing powers and duties on a board of trustees;
        transferring the rights, powers, duties and obligations of
        the Water Facilities Loan Board to the Pennsylvania
        Infrastructure Investment Authority; providing for the
        issuance of notes and bonds; providing for financial
        assistance and for a comprehensive water facilities plan;
        authorizing a referendum to incur indebtedness; making an
        appropriation; and making repeals," extending the act to
        include storm water projects.

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

        Section 1.  Section 2 of the act of March 1, 1988 (P.L.82,
     No.16), known as the Pennsylvania Infrastructure Investment
     Authority Act, is amended to read:
      Section 2.  Legislative intent.
        The General Assembly finds and declares that:
            (1)  The health of millions of citizens of this
        Commonwealth is at risk due to substandard and deteriorated
        water supply and sewage disposal systems.
            (2)  Many water and sewage systems in this Commonwealth
        are aging, outmoded, inadequate, deteriorating and operating
        above capacity, and many areas have to limit their growth
        solely due to lack of proper water supply and sewage
        disposal.
            (3)  The economic revitalization of this Commonwealth is
        being stifled by a lack of clean water and adequate sewage
        facilities.
            (4)  Many Pennsylvania communities have antiquated or
        inadequate storm water systems thereby resulting in storm
        water flows which threaten the public health and safety due
        to flooding, overloaded sewer lines, soil erosion, sinkhole
        development and expansion and reduction in surface water and
        groundwater quality.
            [(4)] (5)  Financing of water and sewage projects and
        storm water projects at affordable cost is not currently
        available in many areas of this Commonwealth.
            (6)  The lack of affordable financing to implement storm
        water management plan recommendations has resulted in
        compliance by only 17 counties with the requirements of the
        act of October 4, 1978 (P.L.864, No.167), known as the Storm
        Water Management Act.
            [(5)] (7)  In order to assist in financing projects to
        protect the health and safety of the citizens of this
        Commonwealth and to promote the economic development of
        Pennsylvania, the General Assembly has determined that it is
        necessary to establish the Pennsylvania Infrastructure
        Investment Authority and to provide funding of the authority
        programs.
        Section 2.  The definition of "project" in section 3 of the
     act is amended and the section is amended by adding a definition
     to read:
      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:
        * * *
        "Project."  The eligible costs associated with the
     acquisition, construction, improvement, expansion, extension,
     repair or rehabilitation of all or part of any facility or
     system, whether publicly or, in the case of paragraph (1) or
     (2), privately owned[, for the collection, treatment or disposal
     of wastewater, including industrial waste, or for the supply,
     treatment, storage or distribution of drinking water.]:
            (1)  for the collection, treatment or disposal of
        wastewater, including industrial waste;
            (2)  for the supply, treatment, storage or distribution
        of drinking water;
            (3)  for the control of storm water, which may include,
        but need not be limited to, the transport, storage and the
        infiltration of storm water; or
            (4)  for 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.
        * * *
        "Storm water."  Drainage runoff from the surface of the land
     resulting from precipitation or snow or ice melt.
        * * *
        Section 3.  Section 5 of the act is amended to read:
      Section 5.  Revenues of authority.
        (a)  Sources of revenues.--The authority may receive money
     from sources of revenue, including, but not limited to, the
     following:
            (1)  State funds appropriated to the authority.
            (2)  Federal funds appropriated to or granted to the
        authority.
            (3)  Proceeds from the sale of bonds of the authority
        authorized under section 7.
            (4)  Proceeds from the sale of bonds issued on or after
        the effective date of this act from the remaining unused
        authorization in addition to any other funds that remain
        unencumbered on the effective date of this act from the act
        of July 12, 1981 (P.L.263, No.88), entitled "An act
        authorizing the incurring of indebtedness, with approval of
        the electors, of $300,000,000 for the repair, construction,
        reconstruction, rehabilitation, extension and improvement of
        community water supply systems, and for the repair,
        reconstruction or rehabilitation of flood control facilities,
        dams and port facilities and providing the allotment of
        proceeds from borrowing hereunder," approved by the
        electorate on November 3, 1981.
            (5)  Proceeds from the sale of bonds not to exceed a
        total sum of $150,000,000 issued for site development under
        the provisions of Article XVI-B of the act of April 9, 1929
        (P.L.343, No.176), known as The Fiscal Code. This paragraph
        shall expire on December 31, 1989, except that the board may
        fund projects approved prior to December 31, 1989.
            (6)  Proceeds from the sale of any Commonwealth general
        obligation bonds issued under sections 16 and 17.
            (7)  Proceeds from the sale of any Commonwealth general
        obligation bonds issued under section 12 of the act of March
        16, 1992 (P.L.10, No.5), known as the Small Water Systems
        Assistance Act.
            [(7)] (8)  Proceeds from the sale of authority assets.
            [(8)] (9)  Repayment of loan principal.
            [(9)] (10)  Payment of interest on loans made by the
        authority.
            [(10)] (11)  Interest earned on the investments of
        authority moneys.
        (b)  Control of revenues; investment of funds.--The board
     shall have exclusive control and management of all moneys of the
     authority and full power to invest moneys not required for
     immediate use in any securities or other investments in which
     funds of the Commonwealth are authorized to be invested and in
     any other type of security or investment if, prior to the
     acquisition of the securities or investments, the board
     determines by resolution that such type of security or
     investment is in the best interests of the authority and the
     State Treasurer approves of such type of security or other
     investment.
        (c)  General fund and other separate funds or accounts.--
            (1)  The board shall establish a general fund from which
        it may authorize expenditures for any of the purposes of this
        act.
            (2)  The board shall establish a Water Pollution Control
        Revolving Fund administered in accordance with the
        requirements of section 212 of the Water Quality Act of 1987
        (Public Law 100-4, 101 Stat. 21), and may establish such
        other separate revolving funds and accounts when determined
        by the board to be necessary or convenient. The board may
        deposit no more than [$375,000,000] $725,000,000 in funds and
        accounts established under this paragraph from the sources
        specified in subsection (a)(4), (5) [and (6)], (6) and (7).
        This limitation shall not apply to any Federal funds.
            (3)  The board may also establish such nonrevolving funds
        and accounts as it deems necessary or convenient. Any funds
        from sources specified in subsection (a)(4), (5) [and], (6)
        and (7) which are not deposited in the board's revolving
        funds and accounts shall be deposited into these nonrevolving
        funds and accounts.
        (d)  Loan repayment.--Subject to any agreement with the
     holders of bonds, repayments of loan principal, together with
     any interest thereon, shall be deposited with the authority.
     Repayments from loans made from revolving funds and accounts may
     be deposited in such funds and accounts as the board shall
     determine. Repayments from other loans shall be deposited in
     nonrevolving funds and accounts for the purpose of repayment of
     general obligation bonds of the Commonwealth issued under the
     authority of this act. Loans made by the Water Facilities Loan
     Board prior to the effective date of this act and repayment of
     the principal of and interest on those loans shall be controlled
     by the provisions of Title 32 of the Pennsylvania Consolidated
     Statutes (relating to forests, waters and State parks) and the
     regulations promulgated thereunder. The board shall maintain
     such separate funds and accounts as may be necessary for the
     deposit of payments made under authority or requirement of State
     or Federal law.
        Section 4.  Section 6(4) of the act is amended by adding
     subparagraphs to read:
      Section 6.  Powers and duties of authority.
        The authority shall have and may exercise all powers
     necessary or appropriate to carry out and effectuate the
     purposes of this act, including, but not limited to, the
     following:
            (4)  * * *
                (iv)  Notwithstanding subparagraph (i) and in order
            to facilitate the speedy implementation of the Storm
            Water Control Program, the board shall have the power and
            authority to promulgate, adopt and use guidelines which
            shall be published in the Pennsylvania Bulletin. The
            guidelines shall be subject to review pursuant to section
            204(b) of the Commonwealth Attorneys Act and shall not be
            subject to review pursuant to the Regulatory Review Act
            and shall be effective for a period not to exceed two
            years from the effective date of this amendatory act.
                (v)  After expiration of the two-year period, all
            guidelines relating to the Storm Water Control Program
            shall expire and shall be replaced by regulations which
            shall have been promulgated, adopted and published as
            provided by law.
            * * *
        Section 5.  Section 10(a)(2), (b), (c), (d), (i), (j) and (l)
     of the act are amended and the section is amended by adding a
     subsection to read:
      Section 10.  Financial assistance.
        (a)  Criteria for obtaining assistance.--In reviewing
     applications for financial assistance, the authority shall
     consider:
            * * *
            (2)  Whether the proposed project will lead to an
        effective or complete solution to the problems experienced
        with the water management and control supply [or], sewage
        treatment or storm water system to be aided, including
        compliance with State and Federal laws, regulations or
        standards.
            * * *
        (b)  Financing priorities.--In assigning priorities for
     projects, the board shall consult with the Department of
     Commerce and the department. In addition to any requirements of
     Federal law imposed on the use of Federal funds, the board shall
     determine priorities based on factors which include, but are not
     limited to:
            (1)  Benefits to public health.
            (2)  The contribution to and impact of the project on
        economic development as well as social and environmental
        values.
            (3)  Benefits to public safety or welfare.
            (4)  Improvement in the ability of an applicant to come
        into compliance with State and Federal statutes, regulations
        and standards.
            (5)  Improvement in the adequacy or efficiency of the
        water management and control supply [or], sewage treatment or
        storm water system.
            (6)  The cost-effectiveness of the project.
            (7)  Whether the governmental unit to be served by a
        sewage treatment system is subject to construction or
        connection limitations issued by the department and the date
        that any such limitation was issued.
            (8)  Whether the project encourages consolidation of
        water or sewer systems, where such consolidation would enable
        the customers of the systems to be more effectively and
        efficiently served.
            (9)  Whether a storm water project is sponsored by more
        than one municipality and is located at strategic locations
        determined by the basin-wide studies undertaken under the act
        of October 4, 1978 (P.L.864, No.167), known as the Storm
        Water Management Act, or other joint municipal or county
        efforts.
            (10)  Whether a project will resolve known drainage or
        storm water-related problems.
        (b.1)  Storm water projects.--
            (1)  In the case of storm water projects, only a
        governmental unit may qualify for financial assistance under
        this act.
            (2)  A storm water project located within a watershed for
        which a county has not adopted a watershed storm water
        management plan and ordinances required to implement the
        plan, as required by the Storm Water Management Act, shall be
        ineligible for financial assistance under this act, except
        that:
                (i)  a storm water project within a watershed which
            includes land in more than one county and for which the
            department has required that a joint plan for the entire
            watershed be submitted by the affected counties shall be
            ineligible for financial assistance under this act only
            if the county in which the project is located is found to
            have failed to cooperate in the development of the joint
            plan; and
                (ii)  a storm water project specifically designed to
            maintain and/or improve existing water quality and to
            comply with the National Pollutant Discharge Elimination
            System (NPDES) storm water permitting requirements shall
            be eligible for financial support under this act.
        This paragraph shall not apply to a project located in a
        municipality which has enacted a storm water management
        ordinance that requires land owners and any person engaged in
        the alteration or development of land to implement measures
        to ensure that the maximum rate of storm water runoff is no
        greater after the development than prior to development
        activities or to manage the quantity, velocity and direction
        of resulting storm water runoff in a manner which otherwise
        adequately protects the health and property of residents from
        possible injury as required by the Storm Water Management
        Act.
            (3)  A storm water project located within a municipality
        which is not implementing ordinances pursuant to a county-
        prepared and department-approved watershed plan shall be
        ineligible.
        (c)  Decision of board.--Establishment of priority for
     financial assistance under subsection (b) or (d) shall not be
     deemed to be a final action under 2 Pa.C.S. (relating to
     administrative law and procedure), nor shall it confer a right
     or duty upon the board or any other person. A decision as to an
     applicant's eligibility under subsection (a) may be appealed
     pursuant to 2 Pa.C.S., but the priority assigned the project may
     not be raised in that appeal.
        (d)  Small projects.--
            (1)  The board shall establish a program of assistance to
        water supply and sewage disposal systems serving communities
        with a population of 12,000 people or less or systems having
        hookups of 1,000 or less.
            (2)  The board shall establish a program to financially
        assist storm water projects by municipalities with a
        population of 12,000 people or less. In addition to other
        factors which the board in its discretion may consider in
        assigning priorities under this program, preference shall be
        given where the municipality undertaking the project:
                (i)  has no natural watercourse within its
            boundaries;
                (ii)  relies on methods of storm water control which
            do not comply with Federal or State rules, regulations or
            standards; or
                (iii)  has been found to be subject to karst sinkhole
            development or other geologic condition which poses a
            danger to person or property and which may be aggravated
            by uncontrolled storm water flows.
        * * *
        (i)  Limitation.--The provisions of other law
     notwithstanding, all projects eligible for assistance under this
     act shall be determined to be site development projects as
     referenced in the act of April 9, 1929 (P.L.343, No.176), known
     as The Fiscal Code. In no case shall total assistance to any
     single project total more than $11,000,000, or $20,000,000 if a
     project serves more than one municipality, except that the board
     by a vote of at least nine members may authorize loans in excess
     of $20,000,000 to comprehensive projects providing or proposing
     consolidated service to a region encompassing all or parts of
     four or more municipalities. Total assistance to a storm water
     project shall not exceed $1,000 for each resident of the
     municipality or municipalities being served by the project or
     $10,000,000, whichever is less.
        (j)  Continuing education of operators.--No agreement with
     individuals or entities shall be valid in the absence of an
     agreement by the individuals or entities seeking assistance
     under this act to assure that the system operators are
     participating or will participate in continuing education
     programs developed by the Department of Environmental Resources.
     If the board determines that the system operator of a system
     receiving assistance is not participating in continuing
     education programs, the board shall take all steps necessary to
     cease all financial assistance and recover all prior payments,
     including, but not limited to, the immediate repayment of any
     outstanding loans and interest and any grants. The provisions of
     this subsection shall not apply to cases where financial
     assistance is provided for storm water projects.
        * * *
        (l)  Financial analysis.--The financial analysis used by the
     board to determine the need of all applicants for financial
     assistance shall include, but not be limited to, the following:
            (1)  Fair and reasonable costs of wastewater treatment or
        of supplying drinking water or of controlling storm water
        incurred by comparable systems.
            (2)  The incomes of affected ratepayers and their ability
        to pay increased rates necessary to complete the proposed
        projects.
            (3)  Other sources of financing available to individuals
        or entities seeking assistance under this act.
            (4)  A determination that any financial assistance
        provided by this act will not be used to supplant financial
        resources already available to the applicant.
        * * *
        Section 6.  This act shall take effect in 60 days.

     APPROVED--The 16th day of December, A. D. 1992.

     ROBERT P. CASEY