HOUSE CONCURRENT RESOLUTION 83

(By Delegate Hanshaw (Mr. Speaker))

[Introduced February 26, 2019]

Requesting the creation of the West Virginia Distressed Water and Wastewater Utility Systems Viability Study Committee to conduct a study regarding the state’s distressed water and wastewater infrastructure and submit a written report of findings and recommendations to the Joint Committee on Government and Finance.

Whereas, The provision of clean water and the collection and treatment of wastewater, made possible through infrastructure development, has resulted in a drastic reduction in the incidence of disease, increase in life expectancy, and other major public health advancements; and

Whereas, The development of water and wastewater infrastructure has also advanced economic development through increased production and productivity within West Virginia’s economic sectors and commercial expansion geographically throughout the state; and

Whereas, A substantial portion of the state’s water or wastewater infrastructure has reached or will soon reach the end of its useful life, potentially endangering the viability of certain water and wastewater systems and the ability of utilities to maintain regulatory compliance; and

Whereas, West Virginia water and wastewater utilities face substantial capital investment needs to maintain and replace aging infrastructure; and

Whereas, For some water and wastewater utilities, adequately addressing infrastructure needs may adversely affect their ability to maintain reasonable rates; and

Whereas, Many water and wastewater utilities have experienced a loss of customers resulting from the decline in populations served which has created additional rate burden on the remaining population; and

Whereas, Failing to timely address infrastructure needs will inevitably result in the inability of water and wastewater utilities to adequately serve customers and maintain regulatory compliance, threatening human health and hindering economic growth; and

Whereas, Infrastructure needs cannot be met through reliance on government grant and loan programs alone and instead require a comprehensive plan to confront the financial, organizational, and regulatory challenges that contribute to infrastructure investment limitations; therefore, be it

Resolved by the Legislature of West Virginia:

That the Legislature of West Virginia hereby establish the West Virginia Distressed Water and Wastewater Utility Systems Viability Study Committee will conduct a study and submit a written report to the Joint Committee on Government and Finance no later than October 1, 2019, with recommendations regarding:

(a) The ability of the state’s water and wastewater infrastructure to adequately serve residents and allow utilities to comply with regulatory requirements;

(b) The use of criteria for classifying a water or wastewater system as “distressed,” and remedies to assist distressed water and wastewater systems including methods to:

(1) Encourage the transfer, regionalization, or sale of distressed systems with or to non-distressed systems;

(2) Ensure the most prudent uses of grant funding and low-cost loans in assisting distressed systems;

(3) Mitigate the rate shock in assisting distressed systems;

(4) Encourage private investment in distressed systems; and

(5) Ensure a reasonable balance between expanding service to unserved areas of the state and assisting distressed systems; and, be it

Further Resolved, That the committee consider data regarding noncompliance and deficiencies of the state’s water and wastewater utilities compiled, summarized, or analyzed by the United States Environmental Protection Agency, the West Virginia Department of Environmental Protection, the West Virginia Department of Health and Human Resources Bureau for Public Health, and the Public Service Commission of West Virginia; and, be it

Further Resolved, That the committee undertake all other actions necessary to complete its study, including reviewing funding of West Virginia Infrastructure and Jobs Development Council projects, examining laws and regulations of other jurisdictions, touring water and wastewater facilities, and consulting with experts; and, be it

Further Resolved, That the committee shall include the following members:

(a) The Secretary of the West Virginia Department of Environmental Protection or designee;

(b) The Secretary of the West Virginia Department of Health and Human Resources Bureau for Public Health or designee;

(c) A representative from the Rural Water Association;

(d) The Chairman of the Public Service Commission of West Virginia or designee;

(e) A representative from the West Virginia Infrastructure and Jobs Development Council;

(f) A representative from the West Virginia Association of Regional Planning and Development Council;

(g) A representative from the West Virginia Municipal League;

(h) A representative from the state’s largest private water and wastewater utility;

(i) A representative from a professional engineering firm experienced in the design and construction of water and wastewater systems in West Virginia, to be selected by the Governor;

(j) The Speaker of the House of Delegates or designee; and

(k) The President of the West Virginia Senate or designee; and, be it

Further Resolved, That the committee shall meet bi-weekly, or as otherwise necessary, submit a written report that presents the study’s findings and conclusions, including a summary and analysis of the data and materials reviewed, and recommendations for legislation not later than October 1, 2019; and, be it

Further Resolved, That members of the committee shall serve without compensation; and, be it

Further Resolved, That the Governor, or designee, shall be responsible for designating staff to assist the committee in performing its duties and, by June 1, 2019, convening the committee for its meeting, at which the committee shall adopt rules of procedures, a work schedule, and any additional preliminary measures that it deems necessary for the timely performance of its duties; and, be it

Further Resolved, That the Clerk of the House of Delegates forward a copy of this resolution to the Governor, who shall be responsible for transmitting a copy to each person who is to serve on the committee or his or her designee.