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LEGISLATIVE UPDATE
State (Pennsylvania)
Water and Wastewater Capitalization Act 218
(previously Senate Bill 1102)
On November 30, 2004, Governor Edward G. Rendell signed into law
Act 218, which allocates $200 million to support economic development
projects and $50 million to finance water and sewer infrastructure
upgrades throughout Pennsylvania.
The $250 million allocation originates from an April 2004 voter
referendum that authorized the Commonwealth to borrow a quarter
of a million dollars “for use as grants and loans for the
acquisition, repair, construction, expansion, extension, reconstruction,
rehabilitation or improvement of water and wastewater infrastructure,
including water supply and sewage treatment.”
However, Act 218 now requires an economic development reason before
a municipality can apply for a grant or loan through the newly formed
Commonwealth Financing Authority (CFA). The five-member CFA will
be responsible for approving projects and disbursing the $200 million.
This same program is open to commercial developments including new
retail stores and housing. This may lead to unplanned development
and growth in inappropriate areas for communities trying to repair
their existing sewer infrastructure.
The remaining $50 million will be used to supplement Pennsylvania
Infrastructure Investment Authority (PENNVEST) projects to finance
existing water and wastewater systems. In 1992 PENNVEST received
authorization for a $100 million bond issue for “small water
systems” (water and sewer systems serving fewer than 3000
customers) that will be added for a total bond authorization of
$150 million.
In order to provide additional guidance to municipalities, 3 Rivers
and ALCOSAN will be meeting with CFA and PENNVEST officials in the
near future
For more information on state legislation, visit the Electronic Bills Room website
at http://www.legis.state.pa.us/WU01/LI/BI/billroom.htm
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