SB 762 — Relating to comprehensive reform of state’s water infrastructure systems

regional 8 CS for SB 762 governmental authorities and any other governmental agency, entity, political subdivision, public corporationcorporation, or agency having the authority to acquire, constructconstruct, or operate public water facilities, stormwater systems or wastewater facilities;

the United States government or any agency, department, divisiondivision, or unit thereof;

and any agency, commissioncommission, or authority established pursuant to an interstate compact or agreement.

(9) "Industrial wastes" means any liquid, gaseous, solidsolid, or other waste substancesubstance, or any combination thereof, resulting from or incidental to any process of industry, manufacturing, trade or business, or from or incidental to the development, processingprocessing, or recovery of any natural resources;

(10) "Other wastes" means garbage, refuse, decayed wood, sawdust, shavings, bark and other wood debris and residues, sand, lime, cinders, ashes, offal, night soil, silt, oil, tar, dyestuffs, acids, chemicalschemicals, and all other materials or substances not sewage or industrial wastes which may cause or might reasonably be expected to cause or to contribute to the pollution of any of the waters of this state.

(11) "Owner" includes all persons, copartnershipsco-partnerships, or governmental agencies having any title or interest in any property rights, easementseasements, and interests authorized to be acquired by this article.

(12) "Person" means any public or private corporation, institution, association, firmfirm, or company organized or existing under the laws of this or any other state or country;

group of persons or individuals acting individually or as a groupgroup, or any Intr SB 2026R3758S 2026R3759H other legal entity whatever.

9 CS for SB 762 (a) The discharge, release, escape, depositdeposit, or disposition, directly or indirectly, of treated or untreated sewage, industrial wasteswastes, or other wastes, of whatever kind or character, in or near any waters of the state, in such condition, mannermanner, or quantity, as does, willwill, or is likely to:

or (2) alter or substantially contribute to the alteration of the physical, chemicalchemical, or biological properties of any of such waters, if such contamination or alteration, or the resulting contamination or alteration where a person only contributes thereto, is to such an extent as to make any of such waters:

or (ii) directly or indirectly detrimental to existing animal, bird, fish, aquaticaquatic, or plant life;

or (iii) unsuitable for present or future domestic, commercial, industrial, agricultural, recreational, scenicscenic, or other legitimate uses;

and also meansmeans; (b) the discharge, release, escape, deposit or disposition, directly or indirectly, of treated or untreated sewage, industrial wastes or other wastes, of whatever kind or character, in or near any waters of the state in such condition, manner or quantity, as does, will or is likely to reduce the quality of the waters of the state below the standards established therefor by the United States or any department, agency, board or commission of this state authorized to establish such standards.

(14)(b) "Project"the ordischarge, "waterrelease, developmentescape, project"deposit means any public water facility, stormwater system or wastewaterdisposition, facility,directly the acquisition or constructionindirectly, of whichtreated is authorized, in whole or inuntreated part,sewage, byindustrial thewastes Water Development Authority or theother acquisitionwastes, or construction of whichwhatever iskind financed, in whole or character, in part, from funds made available by grant or loannear by,any orwaters through,of the authoritystate as provided in thissuch article,condition, includingmanner facilities, the acquisition or constructionquantity, ofas whichdoes, iswill authorized, in whole or inis part,likely byto reduce the Waterquality Developmentof Authority or the acquisitionwaters or construction of which is financed, in whole or in part, from funds made available by grant or loan by, or through, the authoritystate asbelow provided in this article, including all buildings and facilities which the authoritystandards deemsestablished necessarytherefor forby the operationUnited ofStates theor project,any togetherdepartment, withagency, allboard, property,or rights,commission easements and interest Intr SB 2026R3758S 2026R3759H which may be required for the operation of thethis project,state butauthorized excluding all buildings and facilities used to produceestablish electricitysuch otherstandards. than electricity for consumption by the authority in the operation and maintenance of the project.

(15)(14) "Private"Project" utility"or "water development project" means any public water facility, stormwater systemsystem, or wastewater facilityfacility, thatthe acquisition or construction of which is ownedauthorized, in whole or in part, by athe privatelyWater ownedDevelopment entityAuthority thator operatesthe for-profit.acquisition or construction of which is financed, in whole or in part, from funds made available by grant or loan by, or through, the authority as provided in this article, including facilities, the acquisition or construction of which is authorized, in whole or in part, by the Water Development Authority or the acquisition or construction of which is financed, in whole or in part, from funds made available by grant or loan by, or through, the 10 CS for SB 762 authority as provided in this article, including all buildings and facilities which the authority deems necessary for the operation of the project, together with all property, rights, easements, and interest which may be required for the operation of the project, but excluding all buildings and facilities used to produce electricity other than electricity for consumption by the authority in the operation and maintenance of the project.

(16)(15) "Private waterutility" development project" means any water facility, stormwater systemsystem, or wastewater facility ofthat a private utility, the acquisition or construction of which is authorized,owned in whole or in part, by thea Waterprivately Developmentowned Authorityentity orthat theoperates acquisitionfor-profit. or construction of which is financed, in whole or in part, from funds made available by loan by, or through, the authority as provided in this article, including facilities, the acquisition or construction of which is authorized, in whole or in part, by the Water Development Authority or the acquisition or construction of which is financed, in whole or in part, from funds made available by loan by, or through, the authority as provided in this article, including all buildings and facilities which the authority deems necessary for the operation of the project, together with all property, rights, easements and interest which may be required for the operation of the project, but excluding all buildings and facilities used to produce electricity other than electricity for consumption by the authority in the operation and maintenance of the project.

(17)To "Publicqualify roads"as meana all“private publicutility” highways, roads and streets in this state, whether maintained by the state,entity county,must municipalityhave orat otherleast political100 subdivision.customers.

(16) (18)"Private "Publicwater utilitydevelopment facilities"project" means publicany utilitywater plantsfacility, stormwater system, or installationswastewater facility of a private utility, the acquisition or construction of which is authorized, in whole or in part, by the Water Development Authority or the acquisition or construction of which is financed, in whole or in part, from funds made available by loan, or through, the authority as provided in this article, including facilities, the acquisition or construction of which is authorized, in whole or in part, by the Water Development Authority or the acquisition or construction of which is financed, in whole or in part, from funds made available by loan, or through, the authority as provided in this article, including all buildings and includesfacilities tracks,which pipes,the mains,authority conduits,deems cables,necessary wires,for towers,the polesoperation of the project, together with all property, rights, easements, and interest which may be required for the operation of the project, but excluding all buildings and facilities used to produce electricity other equipmentthan electricity for consumption by the authority in the operation and appliancesmaintenance of anythe publicproject. utility.

(17) (19)"Public "Revenue"roads" meansmean anyall moneypublic orhighways, thingroads, ofand valuestreets collected by, or paid to, the Water Development Authority as rent, use or service fee or charge for use of, or in connectionthis with,state, anywhether watermaintained development project, or as principal of or interest, charges or other fees on loans, or any other collections on loans made by the Waterstate, Developmentcounty, Authoritymunicipality, to governmental agencies to Intr SB 2026R3758S 2026R3759H finance, in whole or in part, the acquisition or construction of any water development project or projects or other moneypolitical orsubdivision. property which is received and may be expended for or pledged as revenues pursuant to this article.

(16) (18) (20)"Public "Sewage"utility facilities" means water-carriedpublic humanutility plants or animalinstallations wastesand fromincludes residences,tracks, buildings,pipes, industrialmains, establishmentsconduits, orcables, otherwires, places,towers, togetherpoles, withand suchother groundwaterequipment infiltration and surfaceappliances watersof asany maypublic beutility. present.

(17) (19) (21)"Revenue" "Stormwatermeans system"any meansmoney aor stormwaterthing systemof value collected by, or paid to, the Water 11 CS for SB 762 Development Authority as rent, use, or service fee, or charge for use of, or in itsconnection entiretywith, any water development project, or as principal of or interest, charges, or other fees on loans, or any integralother partcollections thereofon usedloans made by the Water Development Authority to collect,governmental controlagencies to finance, in whole or disposein part, the acquisition or construction of stormwaterany water development project or projects or other money or property which is received and anmay associatedbe stormwaterexpended managementfor program.or pledged as revenues pursuant to this article.

It(18) includes(20) all"Sewage" facilities,means structureswater-carried andhuman naturalor wateranimal courseswastes used for collecting and conducting stormwater to, through and from drainageresidences, areasbuildings, toindustrial theestablishments, pointsor ofother finalplaces, outlet,together including,with butsuch notgroundwater limitedinfiltration to,and anysurface andwaters allas ofmay thebe following:present.

Inlets,(19) conduits,(21) corals,"Stormwater outlets,system" channels,means ponds,a drainagestormwater ways,system easements,in waterits qualityentirety facilities,or catchany basins,integral ditches,part streams,thereof gulches,used flumes,to culverts,collect, siphons,control, retention or detentiondispose basins,of dams,stormwater floodwalls,and pipes,an floodassociated controlstormwater systems,management leviesprogram. and pumping stations.

TheIt termincludes "stormwaterall system"facilities, doesstructures, notand includenatural highways,water roadcourses andused drainagefor easementscollecting orand conducting stormwater facilitiesto, constructed,through, ownedand orfrom operateddrainage byareas to the Westpoints Virginiaof Divisionfinal outlet, including, but not limited to, any and all of Highways.the following:

(20)Inlets, (22)conduits, "Stormwatercorals, managementoutlets, program"channels, meansponds, thosedrainage activitiesways, associatedeasements, withwater thequality management,facilities, operationcatch andbasins, maintenanceditches, andstreams, controlgulches, offlumes, stormwaterculverts, andsiphons, stormwaterretention systemsor anddetention includes,basins, butdams, isfloodwalls, notpipes, limited to, public education, stormwater and surface runoff water quality improvement, mapping, planning, flood control,control inspection,systems, enforcementlevies, and anypumping otherstations. activities required by state and federal law.

The term "stormwater managementsystem" program" does not include those activities associated with the management, operation, maintenance and control of highways, road and drainage easementseasements, or stormwater facilities constructed, ownedowned, or operated by the West Virginia Division of Highways without the express agreement of the Commissioner of the Division of Highways.

(21)(20) (23)(22) "Water"Stormwater resources",management "water"program" or "waters" means anythose andactivities allassociated waterwith on or beneath the Intrmanagement, SBoperation, 2026R3758Sand 2026R3759Hmaintenance surfaceand control of thestormwater ground, whether percolating, standing, diffused or flowing, wholly or partially within this state, or bordering this state and withinstormwater itssystems jurisdiction, and includes, withoutbut limitingis thenot generalitylimited ofto, thepublic foregoing,education, naturalstormwater orand artificialsurface lakes,runoff rivers,water streams,quality creeks,improvement, branches,mapping, brooks,planning, pondsflood (exceptcontrol, farminspection, ponds,enforcement, industrial settling basins and pondsany andother wateractivities treatmentrequired facilities),by impoundingstate reservoirs, springs, wells and watercourses.federal law.

(22)The (24)term "Wastewater""stormwater meansmanagement anyprogram" waterdoes containingnot sewage,include industrialthose wastesactivities orassociated otherwith wastesthe ormanagement, contaminantsoperation, derivedmaintenance, fromand thecontrol prior use of suchhighways, waterroad and includes,drainage withouteasements, limitingor thestormwater generalityfacilities ofconstructed, owned, or operated 12 CS for SB 762 by the foregoing,West surfaceVirginia waterDivision of Highways without the typeexpress stormagreement sewersof arethe designedCommissioner toof collectthe andDivision disposeof of.Highways.

(21) (23) (25)"Water "Wastewaterresources", facilities""water", or "waters" means facilitiesany forand all water on or beneath the purposesurface of treating,the neutralizing,ground, disposingwhether of,percolating, stabilizing,standing, cooling,diffused, segregatingor flowing, wholly or holdingpartially wastewater,within including,this state, or bordering this state and within its jurisdiction, and includes, without limiting the generality of the foregoing, facilitiesnatural foror theartificial treatmentlakes, andrivers, disposalstreams, ofcreeks, sewage,branches, brooks, ponds (except farm ponds, industrial wastessettling orbasins otherand wastes,ponds wasteand water andtreatment thefacilities), residueimpounding thereof;reservoirs, springs, wells, and watercourses.

(22) (24) "Wastewater" means any water containing sewage, industrial wastes, or other wastes or contaminants derived from the prior use of such water and includes, without limiting the generality of the foregoing, surface water of the type storm sewers are designed to collect and dispose of.

(23) (25) "Wastewater facilities" means facilities for the purpose of treating, neutralizing, disposing of, stabilizing, cooling, segregating, or holding wastewater, including, without limiting the generality of the foregoing, facilities for the treatment and disposal of sewage, industrial wastes or other wastes, waste water and the residue thereof;

(24) (26) "Water facility" means all facilities, landland, and equipment used for the collection of water, both surface and underground,underground; transportation of water, treatment of water and distribution of water all for the purpose of providing potable, sanitary water suitable for human consumption and use.

and transportation of water, treatment of water, and distribution of water all for the purpose of providing potable, sanitary water suitable for human consumption and use.

their term of office, 13 CS for SB 762 compensation and expenses;

The exercise by the authority of the powers Intr SB 2026R3758S 2026R3759H conferred by this article and the carrying out of its purposes and duties are essential governmental functions and for a public purpose.

(b) The authority is controlled, managedmanaged, and operated by a seven-member board known as the Water Development Board.

The Governor or designee, the secretary of the Department of Environmental Protection or designeedesignee, and the Commissioner of the Bureau for Public Health state health officer or designee are members ex officio of the board.

Appointed board members may be reappointed to serve additional termsterms. the West Virginia Water Development and Infrastructure Council created in §31-15A-3 of this code.

All references in this code to the Water Development Board shall be construed as reference to the West Virginia Water Development and Infrastructure Council.

Each appointed member of the board, before entering upon his or her duties, shall comply with the requirements of article§6-1-1 one,et chapterseq. six of this code and give bond in the sum of $25,000 in the manner provided in article two of said chapter.

Theof Governorthis maycode removeand anygive boardbond memberin forthe causesum asof provided$25,000 in articlethe sixmanner ofprovided saidin chapter.§6-2-1 et seq.

of this code.

The Governor may remove any board member for cause as provided in §6-6-1 et seq.

of this code.

A vacancy in the membership of the board does not impair the rights of a quorum by such vote to exercise all the rights and perform all the 14 CS for SB 762 duties of the board and the authority.

The person appointed as secretary-treasurer, including a Intr SB 2026R3758S 2026R3759H board member if so appointed, shall give bond in the sum of $50,000 in the manner provided in article§6- two,2-1 chapteret sixseq. of this code.

(e) The Governor or designee, the Secretary of thethis Departmentcode. of Environmental Protection and the Commissioner of the Bureau for Public Health do not receive compensation for serving as board members.

(e) The Governor or designee, the Secretary of the Department of Environmental Protection, and the Commissioner of the Bureau for Public Health state health officer do not receive compensation for serving as board members.

Eachis ofentitled theto sevenreceive boardcompensation membersfor isattending reimbursedofficial formeetings allor reasonableengaging andin necessaryofficial expensesduties actuallynot incurredto inexceed the performanceamount ofpaid dutiesto asmembers a member of the boardLegislature infor atheir mannerinterim consistentduties withas guidelinesrecommended ofby the TravelCitizens ManagementLegislative OfficeCompensation ofCommission theand Departmentauthorized ofby Administration.law.

Each of the seven board members is reimbursed entitled to reimbursement for all reasonable and necessary expenses actually incurred in the performance of duties as a member of the board in a manner consistent with guidelines of the Travel Management Office of the Department of Administration.

§22C-1-5.

Authority may construct, finance, maintain, etc., water development projects;

loans to governmental agencies are subject to terms of loan agreements.

(a) To accomplish the public policies and purposes and to meet the responsibility of the state as set forth in this article, the water development authority may initiate, acquire, construct, maintain, repair and operate water development projects or cause the same to be operated pursuant to a lease, sublease or agreement with any person or governmental agency;

may make loans and grants to governmental agencies for the acquisition or construction of water development projects by governmental agencies, which loans.

(b) Loans made pursuant to this section may include amounts to refinance debt issued for Intr SB 2026R3758S 2026R3759H existing water development projects of the governmental agency when the refinancing is in conjunction with the financing for a new water development project regardless of the source of the financing for the new project.

Provided, That.

However, the amount of the refinancing may not exceed 50% of the aggregate amount of the refinancing of an existing project and the financing of a new project;

and may issue water development revenue bonds of this state, payable solely from revenues, to pay the cost of projects, or finance projects, in whole or in part, by loans to governmental agencies.

(c) A water development project may not be undertaken unless it has been determined by the authority to be consistent with any applicable comprehensive plan of water management approved by the Secretary of the Department of Environmental Protection or in the process of preparation by the secretary and to be consistent with the standards set by the state environmental quality board, for the waters of the state affected thereby.

Any resolution of the authority providing for acquiring or constructing projects or for making a loan or grant for projects shall include a finding by the authority that the determinations have been made.

(d) A loan agreement shall be entered into between the authority and each governmental agency to which a loan is made for the acquisition or construction of a water development project, which loan agreement shall include, without limitation, the following provisions:

(1) The cost of the project, the amount of the loan, the terms of repayment of the loan and the security therefor, which may include, in addition to the pledge of all revenues from the project after a reasonable allowance for operation and maintenance expenses, a deed of trust or other appropriate security instrument creating a lien on the project;

(2) The specific purposes for which the proceeds of the loan shall be expended including the refinancing of existing water development project debt as provided above, the procedures as to the disbursement of loan proceeds and the duties and obligations imposed upon the governmental agency in regard to the construction or acquisition of the project, including engineering fees and other administrative costs relating to development of the project;

Intr SB 2026R3758S 2026R3759H (3) The agreement of the governmental agency to impose, collect, and, if required to repay the obligations of the governmental agency under the loan agreement, increase service charges from persons using the project, which service charges shall be pledged for the repayment of the loan together with all interest, fees and charges thereon and all other financial obligations of the governmental agency under the loan agreement;

(4) The agreement of the governmental agency to comply with all applicable laws, rules and regulations issued by the authority or other state, federal and local bodies in regard to the construction, operation, maintenance and use of the project;

(5) The number of proposed customers and their physical locations within the project, and providing as a condition of the agreement, that no proposed customers listed in the project application agreement may be removed from inclusion in the project without prior authorization of the board council;

and (6) The agreement of the governmental agency to perform an annual maintenance audit which maintenance audit shall be submitted to the board council and the Public Service Commission of West Virginia.

loans to private utilities are subject to terms of loan agreements.

(a) To accomplish the public policies and purposes and to meet the responsibility of the state as set forth in this article, the waterWater developmentDevelopment authorityAuthority may make loans to the water facilities, stormwater systems, or wastewater facilities for the acquisition or construction of private 15 CS for SB 762 water development projects by governmental agencies, which loans may be made to private utilities.

Loans to private utilities may be offered at an interest rate that is lowerthe thansame as the marketinterest rate.rate offered to public utilities.

(b) Any loan issued to a private utility pursuant to this section will not be eligible for refinancing,refinancing and may not be forgiven.forgiven;

However,Provided, That if a private utility acquires a public utility, whether voluntarily or involuntarily, then the private utility may seek refinancing for any loan previously Intr SB 2026R3758S 2026R3759H obtained by the public utility pursuant to §22C-1-5 of this code.code:

(c)Provided, Ahowever, privateThat waterany developmentreduction projectin mayloan notpayments beor undertakenin unlessdebt itservice hasexperienced been determined by the authorityprivate toutility beas consistenta withresult any applicable comprehensive plan of waterreceiving management approved by the Secretary of the Department of Environmental Protection or inrefinancing thea processloan ofpursuant preparationto bythis thesection secretaryshall and to be consistentused withto thereduce standardsrates set by the state environmental quality board, for thecustomers watersserved ofby the stateproject. affected thereby.

(c) A private water development project may not be undertaken unless it has been determined by the authority to be consistent with any applicable comprehensive plan of water management approved by the Secretary of the Department of Environmental Protection or in the process of preparation by the secretary and to be consistent with the standards set by the state Environmental Quality Board, for the waters of the state affected thereby.

(1) The cost of the project, the amount of the loan, the terms of repayment of the loanloan, and the security therefor, which may include, in addition to the pledge of all revenues from the project after a reasonable allowance for operation and maintenance expenses, a deed of trust or other appropriate security instrument creating a lien on the project;

(2) The specific purposes for which the proceeds of the loan shall be expended, the procedures as to the disbursement of loan proceeds and the duties and obligations imposed upon 16 CS for SB 762 the private utility in regard to the construction or acquisition of the project, including engineering fees and other administrative costs relating to development of the project;

(3) The agreement of the private utility to impose, collect, and, if requiredrequired, to repay the obligations of the private utility under the loan agreement, increase service charges from persons using the project, which service charges shall be pledged for the repayment of the loan together with all interest, feesfees, and charges thereon and all other financial obligations of the private utility under the loan agreement;

(4) The agreement of the private utility to comply with all applicable laws, rulesrules, and regulations issued by the authority or other state, federalfederal, and local bodies in regard to the Intr SB 2026R3758S 2026R3759H construction, operation, maintenancemaintenance, and use of the project;

and (6) The agreement of the private utility to perform an annual maintenance audit which maintenance audit shall be submitted to the board and the Public Service CommissionCommission. of West Virginia.

(e) Nothing in this section shall be construed as requiring the waterWater developmentDevelopment authorityAuthority to issue a loan to a qualifying private utility.

§22C-1-6a.

Additional powers of the West Virginia Water Development Authority;

Creation of Economic Enhancement Grant Fund.

(a) The Water Development Authority shall create and establish a special fund of moneys made available by appropriations, grants, contributions or other sources to be known as the West Virginia Economic Enhancement Grant Fund.

This fund shall be governed, administered and accounted for by the directors, officers and management staff of the Water Development Authority as a special program account separate and distinct from any other money, fund or funds owned and/or managed by the Water Development Authority.

The Economic Enhancement Grant Fund shall consist of subaccounts as deemed necessary by the Water Development Authority for the Intr SB 2026R3758S 2026R3759H deposit of any appropriations, grants, gifts, contributions or other moneys received by the Economic Enhancement Grant Fund from any source, public or private, and all income earned on moneys held in the Economic Enhancement Grant Fund.

Amounts in the Economic Enhancement Grant Fund shall be administered by the Water Development Authority separate and apart from its other assets and programs.

Amounts in the Economic Enhancement Grant Fund may not be transferred to any other fund or account or used for the payment of any other programs of the Water Development Authority except the Water Development Authority may use funds in the Economic Enhancement Grant Fund to reimburse itself for any administration costs incurred by it.

Pending distribution of any money in the Economic Enhancement Grant Fund the Water Development Authority shall invest and reinvest the money subject to the limitations of §22C-1-15 of this code.

(b) The Water Development Authority shall establish the Matching Grant Subaccount in the Economic Enhancement Grant Fund to be expended to provide the local or state match for any federal or other programs that require a match for projects and infrastructure projects as defined in §31-15A-2 of this code and where the commitment of the matching funds is required to be made and submitted with the application for the federal or other grant.

Upon receipt of a recommendation from the West Virginia Infrastructure and Jobs Development Water Development and Infrastructure Council and/or the West Virginia Department of Economic Development, the Water Development Authority shall review the application of a governmental agency or not-for- profit and if the governmental agency or not-for-profit is eligible for the federal or other matching grant funding, set aside moneys in the subaccount and provide a written binding commitment to the governmental agency or not-for-profit to submit with its application.

If the federal or other programs subsequently approve funding to the governmental agency or not-for-profit, the Water Development Authority shall enter into a grant agreement with the governmental agency or not- for-profit providing the grant funding if the governmental agency or not-for-profit is in compliance with §12-4-14 of this code.

The Water Development Authority shall disperse funds under the grant Intr SB 2026R3758S 2026R3759H agreement from time to time to comply with the terms of the other funding sources.

(c) The Water Development Authority shall establish the Enhancement Grant Subaccount in the Economic Enhancement Grant Fund to be expended as grants to governmental agencies or not-for-profits to cover all or a portion of the costs of projects or infrastructure projects as defined in §31-15A-2 of this code and more specifically:

(1) To cover the cost of bid overruns for projects and infrastructure projects approved by the West Virginia Infrastructure and Jobs Development Water Development and Infrastructure Council;

(2) To cover all or a portion of the costs of extending or expanding water, stormwater and/or wastewater service to enhance economic development and/or tourism when recommended by the Secretary of Commerce, the Secretary of Economic Development and/or the Secretary of Tourism;

(3) To cover the costs of facilitating the merger and/or consolidation of water or wastewater providers where all parties to the proposed merger make joint applications to the West Virginia Infrastructure and Jobs Development Water Development and Infrastructure Council;

(4) To cover the cost of water, stormwater and/or wastewater projects for governmental agencies where the combined rates for water, stormwater and wastewater exceed 1.5% of the governmental agency’s Median Household Income;

(5) To cover the startup costs for governmental utilities that are providing or extending service to unserved areas of the State;

(6) To provide a commitment to cover the difference between the cost of funded projects and the updated cost estimate, and when the project is bid, to provide a grant for the dollar difference between the committed funding and the bid results;

and (7) To cover all or a portion of the infrastructure projects to enhance economic development and/or tourism when recommended by the Secretary of Commerce, the Secretary of Economic Development and/or the Secretary of Tourism.

Intr SB 2026R3758S 2026R3759H (d) The Water Development Authority is hereby authorized to enter into grant agreements with governmental agencies and not-for-profits to evidence the grant which agreements shall include the following provisions:

(1) The estimated cost of the project or infrastructure project, the amount of the grant and the other funding sources;

(2) The specific purpose for which the grant proceeds shall be expended and the conditions and procedures for distributing the grant proceeds;

(3) The duties and obligations imposed regarding the acquisition, construction, improvement, or operation of the project or infrastructure project;

and (4) The agreement of the governmental agency or not-for-profit to comply with all applicable federal and state laws, and all rules and regulations issued or imposed by the Water Development Authority or other state, federal, or local bodies regarding the acquisition, construction, improvement, or operation of the infrastructure project or project.

(e) The Water Development Authority shall cause an annual audit to be made by an independent certified public accountant of its books, accounts and records with respect to the system and distributions and all matters relating to the financial application of the Economic Enhancement Grant Fund including all subaccounts therein.

The Water Development Authority shall provide copies of the audit report to the Legislature.

§22C-1-8.

Expenditure of funds for study and engineering of proposed projects.

With the approval and the consent of the board council, either the director of the Division of Environmental Protection or the commissioner of the bureau of public health, or both of them, shall expend, out of any funds available for the purpose, such moneys as are necessary for the study of any proposed water development project and may use its engineering and other forces, including consulting engineers and sanitary engineers, for the purpose of effecting such study.

All such expenses incurred by the director or commissioner prior to the issuance of water development revenue bonds or notes under this article shall be paid by the director or commissioner and Intr SB 2026R3758S 2026R3759H charged to the appropriate water development project and the director and commissioner shall keep proper records and accounts, showing the amounts so charged.

Upon the sale of water development revenue bonds or notes for a water development project, the funds so expended by the director or commissioner, with the approval of the authority, in connection with such project, shall be repaid to the Division of Environmental Protection or bureau of public health from the proceeds of such bonds or notes.

17 CS for SB 762 §22C-2-1.

As used in this article, unless the context clearly requires a different meaning:

(1) Developmental, planningplanning, and feasibility studies, surveys, plansplans, and specifications;

(2) Architectural, engineering, financial, legallegal, or other special services;

(3) Acquisition of land and any buildings and improvements on the land or buildings, including the discharge of any obligations of the sellers of the land, buildingsbuildings, or improvements;

(4) Site preparation and development, including demolition or removal of existing structures, construction and reconstruction, labor, materials, machinerymachinery, and equipment;

(5) The reasonable costs of financing incurred by the local entity in the course of the development of the project, carrying charges incurred before placing the project in service, interest on funds borrowed to finance the project to a date subsequent to the estimated date the project is to be placed in service, necessary expenses incurred in connection with placing the project in serviceservice, and the funding of accounts and reserves which the authority Department of Intr SB 2026R3758S 2026R3759H Environmental Protection may require;

§1251, et seq., as amended,amended; the Federal Safe Drinking Water Act 42 U.S.C.

§300f 0through §300j-26, inclusive, as amended, or by the executiveFederal orderSafe ofDrinking theWater GovernorAct, issued42 toU.S.C. comply with federal laws relating to the acts.

§300f 0through §300j-26, inclusive, as amended;

or by the executive order of the Governor issued to CS for SB 762 comply with federal laws relating to the acts.

(e) (d) "Local entity" means any county, city, town, municipal corporation, authority, district, public service district, commission, banking institution, political subdivision, regional governmental authority, state government agency, interstate agencyagency, or not-for-profit association or corporation in West Virginia.

(1) Sewage and wastewater collection, treatmenttreatment, and disposal facilities;

(2) Public water transportation, treatmenttreatment, and distribution facilities;

(4) Administrative, maintenance, storagestorage, and laboratory facilities related to the facilities delineated in subdivisions (1), (2) and (3) of this subsection;

and Intr SB 2026R3758S 2026R3759H (6) Other projects allowable under federal law.

(a) Under the direction of the Division of Environmental Protection, the water development authority The Department of Environmental Protection shall establish, administeradminister, and manage a permanent and perpetual fund,fund to be known as the "West Virginia Water Pollution Control Revolving Fund."Fund". The fund shall be comprised of moneys appropriated to the fund by the Legislature, moneys allocated to the state by the federal government expressly for the purposes of establishing and maintaining a state water pollution control revolving fund, all receipts from loans made from the fund to local entities, all income from the investment of moneys held in the fund, and all other sums designated for deposits to the fund from any source, public or private.

The fund shall be comprised of moneys appropriated to the fund by the 19 CS for SB 762 Legislature, moneys allocated to the state by the federal government expressly for the purposes of establishing and maintaining a state water pollution control revolving fund, all receipts from loans made from the fund to local entities, all income from the investment of moneys held in the fund, and all other sums designated for deposits to the fund from any source, public or private.

of this code,code to:

(c) In order to carry out the administration and management of the fund, the authority Department of Environmental Protection is authorized to employ officers, employees, agents, advisersadvisers, and consultants, including attorneys, financial advisers, engineers, other technical Intradvisers, SB 2026R3758S 2026R3759H advisers and public accountants and, notwithstanding any provisions of this code to the contrary, to determine their duties and compensation without the approval of any other agency or instrumentality.

(e) All moneys belonging to the fund shall be kept in appropriate depositories and secured 20 CS for SB 762 in conformance with this code.

The authority Department of Environmental Protection shall cause an audit of its books and accounts to be made at least once each fiscal year by certified public accountants, and the cost thereof may be defrayed as a part of the cost of construction of a project or as an administrative expense under the provisions of subsection (a), section three §22C-2-3(a) of this article.article code.

(a) In order to ensure the timely payment of all sums due and owing to the fund under a revolving fund loan agreement between the state and a local entity, and notwithstanding any provisions of this code to the contrary, the authority Department of Environmental Protection has Intr SB 2026R3758S 2026R3759H and may, at its option, exercise the following rights and remedies in the event of any default by a local entity under a loan agreement:

(2) The authority Department of Environmental Protection may exercise, in its own name 21 CS for SB 762 or in the name of and as the agent for a particular local entity, all of the rights, powerspowers, and remedies of the local entity with respect to the project or which may be conferred upon the local entity by statute, rule, regulationregulation, or judicial decision, including all rights and remedies with respect to users of the project funded by the loan distributed to that local entity pursuant to this article.

(3) The authority Department of Environmental Protection may, by civil action, mandamusmandamus, or other judicial or administrative proceeding, compel performance by a local entity of all of the terms and conditions of the loan agreement between the state and that local entity including:

and (b) The enforcement by the local entity of all rights and remedies conferred by statute, rule, regulationregulation, or judicial decision.

Intr SB 2026R3758S 2026R3759H CHAPTER 24.

22 CS for SB 762 §24-2H-3.

(a) "Consolidation Committee" means the established committee within the council,council as created in §31-15A-3a of this code.

(B)(2) Fails to comply within a reasonable period of time with any final, nonappealablenon-appealable order of the Department of Environmental Protection, Bureau for Public Health, or the commission concerning the safety, adequacy, efficiency, or reasonableness of service, including, but not limited to, the availability of water, the potability of water, the palatability of water, or the provision of water at adequate volume and pressure, and the collection and treatment of wastewater;

or (3)(4) Fails to timely pay some or all of its financial obligations, including, but not limited to, its federal and state tax obligations and its bond payments to the West Virginia Water Intr SB 2026R3758S 2026R3759H Development Authority, the United States Department of Agriculture, or other bondholders;

or (B) Has had the requirements of §24-2H-7 of this code suspended for good cause shown 23 CS for SB 762 by an order of the commission.

(f) "Wastewater utility" means a public utility that treats, neutralizes, disposes of, stabilizes, cools, segregatessegregates, or holds wastewater, including, for the treatment and disposal of sewage, industrial wasteswastes, or other wastes, waste waterwater, and the residue thereof;

and provides sanitary sewers or other collection systems, whether on the surface or underground, designed to transport wastewater together with the equipment and furnishings thereof and their appurtenances and systems, whether on the surface or underground, including force mains and pumping facilities Intr SB 2026R3758S 2026R3759H therefor.

–— (1) Any water, or wastewater, or water and/orand wastewater utilitiesutility which operates under the supervision or management of a municipal governing body must provide that municipal governing 24 CS for SB 762 body with annual operational and financial reports.

(2) Any water, or wastewater, or water and/orand wastewater utility which operates under the supervision of a county commission must provide that county commission with annual operational and financial reports.

(3) This subsection does not prevent a municipal governing body or county commission from requiring a water, or wastewater, or water and/orand wastewater utility under its control to provide operational, financial, or operational and/orand financial reports more frequently.

–— Any person who is a member of a municipal governing body or county commission that is operating or has oversight of a waterworks system shall complete at least six hours of initial training within six months of taking office,office and shall require all board members and senior managers of the municipal or county waterworks system to complete at least six hours of initial training within six months of taking office or employment.

(1) Any person required to take initial training shall also be required to complete at least six hours of continuing education within six months of any re-appointment or re-election to the position.position:

However,Provided, That if the person is not in an elected or appointed position, then that person is required to complete at least six hours of continuing education every two years.

Each waterworks system shall submit a verified certificate to the Public Service Commission at the end of each calendar year,year confirming Intr SB 2026R3758S 2026R3759H that it is in compliance.

(c) The requirements of this section only apply to those waterworks systems which are regulated pursuant to §8-19-1 et seq., §8-20-1 et seq., §16-13-1 et seq., or §16-13A-1 et seq.

of this25 code,CS §8-20-1for etSB seq.762 this code.

of this code, §16-13-1 et seq.

of this code, or §16-13A-1 et seq.

of this code.

–— The Public Service Commission shall designate each part of the state into separate regions.

The Public Service Commission should consider any unique circumstances of the utilities,utilities and should attempt to include,include within each region, utilities with disparate strengths and challenges,challenges such that the utilities in each region may be best positioned to complement one another.

–— Each utility in each region may enter into a cooperative agreement with the other utilities in its region.

–— The instrument of the Regional Cooperative Agreement:

Intr SB 2026R3758S 2026R3759H (1) Must be in writing;

and (5) May only include utilities of like facilities, either water or wastewater.wastewater:

However,Provided, That a facility that is a hybrid water and wastewater utility may join the Regional Cooperative Agreement of either water or wastewater facilities,facilities upon approval by the Public Service Commission.

26 CS for SB 762 (d) Notice of Agreement.

–— (1) Prior to executing the Regional Cooperative Agreement, each participating utility must provide its customers with notice of the agreement, and explain any changes to contact information or services.

(2) The utilities must provide courtesy copies of the agreement to the Department of Environmental Protection, the Bureau of Public Health, or both, depending on whether the utility is water, wastewater, or a hybrid,hybrid prior to entering into the agreement.

–— (1) Any legal requirement,requirement under state code or by legislative rules,rules which necessitates each utility have its own specialized personnel may be preempted by this section,section and thereby permit more than one utility to share such personnelSpecifically,personnel. the public water and/or wastewater utilities that have entered into a Regional Cooperative Agreement may share personnel, as set forth in Series 4 and 5 of Title 64 of the West Virginia Code of State Rules, so long as the shared personnel is otherwise qualified.

However,Specifically, before the participatingpublic utilitieswater mayand/or sharewastewater personnel,utilities thethat Bureauhave ofentered Publicinto Healtha and/orRegional theCooperative DepartmentAgreement ofmay Environmentalshare Protectionpersonnel mustas reviewset theforth proposedin Regional64 CooperativeCSR Agreement,04 in writing, and confirm64 thatCSR the05, proposalprovided will not negatively impact the functionalityshared ofpersonnel anyis participatingotherwise utility.qualified.

IntrBefore SBthe 2026R3758Sparticipating 2026R3759Hutilities (2)may Byshare personnel, the RegionalBureau Cooperativeof Agreement,Public Health and/or the utilitiesDepartment mayof agreeEnvironmental toProtection jointlymust submitreview reportsthe requiredproposed byRegional anyCooperative regulatoryAgreement, agencyin ofwriting, and confirm that the executiveproposal branchwill not negatively impact the functionality of stateany government.participating utility.

(2) By the Regional Cooperative Agreement, the utilities may agree to jointly submit reports required by any regulatory agency of the executive branch of state government.

–— The Public Service Commission, the Department of Environmental 27 CS for SB 762 Protection, and/orand the Bureau of Public Health may each prevent utilities from entering into a term or condition,condition or may prevent a utility from so entering,entering if the Regional Cooperative Agreement:

or (5) Assumes a benefit that is not allowed,allowed or includes terms which are not otherwise lawful.

–— Except as set forth in §24-2H-4a of this code, a utility cannot be required to enter into a Regional Cooperative Agreement, nor can a utility be penalized for refusing to so enter.

–— If a utility participating in a Regional Cooperative Agreement is determined to be a distressed or failing utility,utility as set forth in §24-2H-6 of this code, the agreement may not be amended to allow that utility to be removed from the Regional Cooperative Agreement without the approval of the Public Service Commission.

–— The Public Service Commission will select at least three, but no Intr SB 2026R3758S 2026R3759H more than five public water utilities, and at least three, but no more than five,five public wastewater utilities, to participate in the Early Intervention Pilot Program.

Of the utilities, the Public Service Commission may select one or more hybrid public water and wastewater utilities,utilities so long as the total number of utilities initially selected does not exceed 10.

It may consider if a utility is at risk of ending up on the watch list,list as set forth in §24-2H-4 of this code.

28 CS for SB 762 (2) To select the initial participants, the Public Service Commission shall consult with the Department of Environmental Protection, the Bureau of Public Health, and the Water Development Authority.

Entry into this program is,is at all times,times voluntary.

–— The Public Service Commission shall develop an individualized course of action designed to best address the needs of the utility.

(1) The individualized course of action shall be designed by the Public Service Commission, the Department of Environmental Protection, the Bureau of Public Health, the Water Development Authority, the West Virginia Rural Water Association, the West Virginia Municipal Water Quality Association, and the West Virginia chapter of the National Association of Water Intr SB 2026R3758S 2026R3759H Companies, which entities shall collectively be referred to as the "stakeholders." The stakeholders may rely on and accept any other knowledgeable or interested party who can provide insight or guidance, including, but not limited, to other state agencies, political subdivisions, and utilities in the region.

The Public Service Commission may create and implement an 29 CS for SB 762 asset management program.

(3) If the stakeholders and the utility cannot agree on the individualized course of action, then the Public Service Commission may expel the utility from the program,program or the utility may decide to leave the program.

–— An individualized course of action shall include measurable goals,goals and a timeframe for reaching those objectives.

No utility may participate in the program for longer than twenty-four24 consecutive months.

–— The named stakeholders do not constitute a public body,body pursuant to §6-9A-1 et seq.

However,Stakeholders while the Intr SB 2026R3758S 2026R3759H stakeholders are encouraged to act collaboratively,collaboratively and decisions required under this section may be made without consensus, so long as at least two state agencies determine that the action is in the best interest of the utility.

The West Virginia Rural Water Association, the West Virginia Municipal Water Quality Association, and the West Virginia chapter of the National Association of Water Companies may participate to the extent they choose, and while voluntary participation would be beneficial, it is not necessary for completing the tasks set forth herein.

Further, nothing contained herein prohibits real-time problem-solving by one or more stakeholder,stakeholder when a participating utility has a need for immediate assistance.

30 CS for SB 762 (e) New Participants.

–— If the Public Service Commission determines that the Early Intervention Pilot Program has demonstrated meaningful success, the Public Service Commission may increase the number of participating utilities.utilities:

However,Provided, That the Public Service Commission may not add more than 10 public water, wastewater, or hybrid water and wastewater utilities in a calendar year.

–— A utility’s participation in the Early Intervention Pilot Program will not prevent the Public Service Commission from placing the utility on the watch list,list as allowed by §24- 2H-4 of this code.

–— The Early Intervention Pilot Program shall sunset on December 31, 2031.

–— Annually, at least by November 1, the commission Public Service Commission shall prepare a list of water and wastewater utilities that appear to be financially unstable by reviewing annual reports, rate case filingsfilings, and other financial data available to it.

Commission staff shall contact each utility placed on the list and provide advice and assistance in resolving any financial instability or managerial or operational issues that are contributing to the utility’s financial instability.

The Public Service Commission shallmay alsoconsider includemanagerial wateror andoperational wastewaterissues utilities that are incontributing continual violation of statutory or regulatory standards of the Bureau Intr SB 2026R3758S 2026R3759H for Public Health, the Department of Environmental Protection, or the Public Service Commission, when those violations affect or have the potential to affect the waterutility’s quality,financial safety,instability. adequacy, efficiency, or reasonableness of the services provided by the utility.

The Public Service Commission shall also include water and wastewater utilities that are in continual violation of statutory or regulatory standards of the Bureau for Public Health, the Department of Environmental Protection, or the Public Service Commission, when those violations affect or have the potential to affect the water quality, safety, adequacy, efficiency, or reasonableness of the services provided by the utility.

–— The Public Service Commission shall create this "watch list" in collaboration with the Bureau for Public Health, the Department of Environmental Protection, and the Water Development Authority.

–— Commission staff shall publish annually, by hyperlink, the list of potentially 31 CS for SB 762 unstable water and wastewater utilities on the commission’s homepage no later than November 1.

–— If there is an imminent need, the Public Service Commission may amend the watch list after November 1.

An "imminent need" is present when a utility is incapable of providing safe or reliable services to its customers, is unable to obtain necessary financial assistance for infrastructure project,projects or is otherwise in need of urgent intervention.

–— Utilities on the watch list will be placed on a mandatory improvement period.

The improvement period may include any requirement of the utility,utility which the Public Service Commission, with the stakeholders, deem necessary for improvement.

The Public Service Commission may further mandate that a utility on an improvement period enter into a Regional Cooperative Agreement,Agreement as Intr SB 2026R3758S 2026R3759H set forth in §24-2H-3b of this code, provided that the other participating utilities are willing to consent to that utility’s inclusion.

–— Each improvement period shall be for a period of 12 months.months;

(1) However, if the utility is not making a substantial effort to participate in the improvement period, the Public Service Commission may end an improvement period upon one month’s written notice.

(2) Further, if the utility is making a substantial effort to participate in the improvement period, and it is likely that the utility can successfully complete the improvement period,period but not within 12 months, 32 CS for SB 762 then the improvement period may be extended to 18 months total.

–— If a utility is not successful in improving, then the commission will proceed to seek a final order establishing that the utility is a distressed or failing utility for the purposes of §24-2H-6 of this code.

(a) The Public Service Commission has the authority to declare that a utility to be a "distressed utility,"utility", a "failing utility,"utility", or a "capable proximate utility."utility". Intr SB 2026R3758S 2026R3759H (b) In determining whether a utility is distressed or failing, the commission shall consider the following factors:

(b) In determining whether a utility is distressed or failing, the commission shall consider the following factors:

(3) The opinion and advice, if any, of the Department of Environmental Protection and the Bureau for Public Health as to steps that may be necessary to assure compliance with applicable 33 CS for SB 762 statutory or regulatory standards concerning the adequacy, efficiency, safety, or reasonableness of utility service;

and Intr SB 2026R3758S 2026R3759H (5) Any other relevant matter.

The 34 CS for SB 762 commission shall include, as additional parties, any capable proximate public and private utilities that may be able to assist or acquire the utility.

(C) Capable proximate publicpublic, or private utilityutility, or utilities that were made parties to the proceeding;

(c) The public hearing shall be conducted to receive public comments, including, but not limited to, comments regarding possible options available to bring the distressed or failing utility Intr SB 2026R3758S 2026R3759H into compliance with appropriate statutory and regulatory standards concerning actual or imminent public health problemsproblems, or unreasonable quality and reliability service standards.

35 CS for SB 762 (a) Following the evidentiary hearing, the commission shall enter a final order stating whether the utility is a distressed or failing utility and identifying the capable proximate utilities, if any, as defined in §24-2H-3 of this code.

(2) Operation of the distressed utility by another public utilityutility, or managementmanagement, or service Intr SB 2026R3758S 2026R3759H company under a mutually agreed arms-length contract;

(3) Appointment of a receiver to assure the provision of adequate, efficient, safesafe, and reasonable service and facilities to the public pursuant to §24-2-7(b) of this code;

(c) The commission shall provide a list of utilities designated by a final order of the CS for SB 762 commission as a distressed or failing utility to the Legislature as part of its annual Management Summary Report beginning in the 2021 reporting period and annually thereafter.

(1) the The aggregate required contribution under the commission’s extension of mains rules for new customers;

or (2) grant Grant funds from the Water Development Authority Distressed Utilities Account created under §31-15A-9(i) of this code;

or (3) other Other grant funds;

or (4) any Any combination of the above.

– If a political subdivision of the state is Intr SB 2026R3758S 2026R3759H otherwise exempt from acquiring a distressed or failing utility pursuant to §24-2H-7(d) of this code, the Public Service Commission may require the exempt utility to enter into a memorandum of understanding with the distressed or failing utility.

(1) Both the controlling utility and the distressed or failing utility will be obligated to execute the memorandum of understanding,understanding and will be legally bound by its terms and conditions.

(2) Through the memorandum of understanding, the controlling utility will be required to 37 CS for SB 762 provide the distressed or failing utility with operational support, which may include technical advice, personnel, accounting, office supplies, programs, and other tangible and intangible assets which are necessary to ensure that services to the customers of the distressed or failing utility continue uninterrupted.

(3) The controlling utility may be required to assume the maintenance costs of the distressed or failing utility,utility so long as the controlling utility can do so without needing to implement a rate differential on the customers of the controlling utility.

(4) The controlling utility will not be required to assume the debt of the distressed or failing utility,utility and the controlling utility will not be responsible for the infrastructure costs of the distressed or failing utility.

Any remaining monthly income to the distressed or failing utility shall be paid to reimburse the controlling utility for actual Intr SB 2026R3758S 2026R3759H costs.

The Public Service Commission and the distressed or failing utility shall have ten10 business days upon receipt of notice to object to the monthly invoice of actual costs.

(6) If the income to the distressed or failing utility is insufficient to fully reimburse the controlling utility for its actual costs incurred pursuant to the memorandum of understanding, the county commission, governing municipal council, or board responsible for the distressed or failing utility at the time the memorandum of understanding is entered shall reimburse the controlling utility for any such costs that remain unpaid after the distressed or failing utility makes payment to 38 CS for SB 762 the controlling utility.

–— During the course of the memorandum of understanding, the distressed or failing utility will maintain its own legal identity separate and apart from the controlling utility.

However, the Public Service Commission is authorized to void any vote which is contrary to the memorandum of understanding, is contrary to any other provision of this article, could impede consolidation, or otherwise harmsharm or negatively impactsimpact the customers or the facilities.facilitThe Public Service Commission is authorized to mandate any action which is required by the memorandum of understanding.

The Public Service Commission is authorized to mandate any action which is required by the memorandum of understanding.

–— A controlling utility may seek a final hearing with the Public Service Commission on the order requiring it to enter into a memorandum of understanding,understanding as set forth in this section.

While the controlling utility may not be required to execute the memorandum of understanding pending a final hearing, the commission canmay incorporate the terms of the proposed memorandum of understanding into an order, and such order shall not be stayed pending appeal.

A distressed or failing utility may appeal the final order of the commission,commission but may not seek a stay of the order pending appeal.

–— A memorandum of understanding mandated by the commission pursuant to this section shall remain in full force and effect for as long as the commission deems necessary,necessary but shall not be considered a permanent solution for addressing a distressed or failing utility.utility and shall in no event remain in effect longer than 18 months.

If the controlling utility and the distressed or failing utility agree that the collaborative nature of the memorandum of understanding is mutually beneficial, then the Intr SB 2026R3758S 2026R3759H commission may allow the two utilities to enter into a new memorandum of understanding,understanding outside of the control of the commission.

The commission may deny a voluntary memorandum of understanding if the 39 CS for SB 762 underlying cause of the utility becoming a distressed or failing utility has not been, or will not be, adequately addressed, or if the commission has identified a utility which can be legally obligated to acquire the distressed or failing utility pursuant to §24-2H-7 of this code.

After an order has been entered pursuant to §24-2H-7 of this code, the failing utility and acquiring utility shall file a petition with the commission under §24-2-12 of this code,code to approve the purchase price of the acquisition.

(c) As part of the proceeding, the acquiring utility may propose to the commission that it be permitted for a reasonable period of time after the date of acquisition, to charge and collect rates from the customers of the failing utility pursuant to a separate tariff, which may be higher or lower Intr SB 2026R3758S 2026R3759H than the existing tariff of the distressed or failing utility, or may allow a surcharge on both the acquired and existing customers.

A separate tariff or rate filing must be made by the acquiring utility before the commission will consider any increase in rates or allow a surcharge to be placed 40 CS for SB 762 on the acquiring utility’s acquired or existing ratepayers.

The failing utility shall cooperate with the acquiring utility in negotiating agreements with state and federal agencies, including, but not limited to, negotiation of hold harmless agreements, consent ordersorders, or enforcement moratoria during any period of remediation.

If the distressed or failing utility is a municipal corporation, then the commission shall make a recommendation to the Intr SB 2026R3758S 2026R3759H respective municipal council with regard to the acquisition of distressed or failing utilities as provided in §8-12-17 of this code.

It shall not be necessary for the board of the failing or distressed utility to approve the sale of the failing or distressed utility to a capable proximate utility, if the 41 CS for SB 762 distressed or failing utility is a public service district, and the sale is approved by the county commission, or if the distressed or failing utility is a municipal utility, and the sale is approved by the municipal council.

WEST VIRGINIA INFRASTRUCTURE AND JOBS DEVELOPMENT WATER DEVELOPMENT AND INFRASTRUCTURE COUNCIL.

§31-15A-1.§31-15A-2.

Short title.

This article shall be known and may be cited as the "West Virginia Infrastructure and Jobs Development Water Development and Infrastructure Act." §31-15A-2.

(a) "Bond" or "infrastructure revenue bond" means a revenue bond, note, or other obligation issued by the waterWater developmentDevelopment authorityAuthority pursuant to this article, including bonds to refund such bonds and notes to renew such notes, and notes in anticipation of and payable from the proceeds of such bonds.

(c) "Cost" means, as applied to any project to be financed, in whole or in part, with infrastructure revenues or funds otherwise provided pursuant to this article, the cost of planning, acquisition, improvementimprovement, and construction of the project;

the cost of preliminary design and Intr SB 2026R3758S 2026R3759H analysis, surveys, borings;

the cost of environmental, financial, marketmarket, and engineering feasibility studies, assessments, applications, approvals, submissionssubmissions, or clearances;

the cost of acquisition of all land, rights-of-way, property rights, easements, franchise rightsrights, and any other interests required for the acquisition, repair, improvementimprovement, or construction of the project;

the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands 42 CS for SB 762 to which buildings or structures may be moved;

the cost of excavation, grading, shapingshaping, or treatment of earth, demolishing or removing any buildings or structures;

the cost of all pumps, tanks, vehicles, apparatusapparatus, and other machinery, furnishingsfurnishings, and equipment;

the cost of all plans, specifications, surveyssurveys, and estimates of cost;

all working capital and other expenses necessary or incident to determining the feasibility or practicability of acquiring, repairing, improvingimproving, or constructing any project;

(d) "Council" means the West Virginia infrastructure and jobs development watercouncil developmentInfrastructure and infrastructureJobs councilDevelopment Council created in section three of this article;

(e) "Division of environmental protection"protection Department of Environmental Protection" means the Division Department of Environmental Protection established under article§22-1-1 one,et chapterseq. twenty-two of this code, or any successor to all or any substantial part of its powers and duties;

Intr SB 2026R3758S 2026R3759H (f) "Division of health" means the division of health created in article one, chapter sixteen of this code, or any successor to all or any substantial part of its powers and duties;

(g)(f) "Economic"Division developmentof authority"health meansDepartment theof economicHealth" developmentmeans authoritythe establisheddivision underof articlehealth fifteen,Department chapter thirty-one of theHealth code,created orin any§16-1-1 successoret toseq. all or any substantial part of its powers and duties;

(h)of "Emergencythis project"code, meansor aany projectsuccessor whichto theall councilor hasany determined:substantial part of its powers and duties;

(g) "Economic development authority Development Authority" means the economic development authority Economic Development Authority established under §31-15-1 et seq.

of this code, or any successor to all or any substantial part of its powers and duties;

43 CS for SB 762 (h) "Emergency project" means a project which the council has determined:

soil conservation district;district, sanitary district, public service district, drainage district, regional governmental authority, and any other state governmental agency, entity, political subdivision, or public corporation or agency authorized to acquire, construct, or operate water, or wastewater facilities, or infrastructure projects;

sanitary(j) district;"Housing development fund Development Fund" means the West Virginia Housing Development Fund established under§31-18-1 et seq.

publicof servicethis district;code, or any successor to all or any substantial part of its powers and duties;

drainage(k) district;"Infrastructure fund Fund" means the West Virginia infrastructure fund Infrastructure Fund created and established in section nine of this article;

regional(l) governmental"Infrastructure authorityproject" means a project in the state which the council determines is likely to foster and anyenhance othereconomic growth and development in the area of the state governmentalin agency,which entity,the politicalproject subdivisionis ordeveloped publicfor corporationcommercial, industrial, community improvement, or agencypreservation, authorizedor toother acquire,proper constructpurposes, orincluding, operatewithout limitation, tourism and recreational housing, land, air or water transportation facilities and bridges, industrial or wastewatercommercial projects and facilities, mail order, warehouses, wholesale and retail sales facilities and other real and personal properties, including facilities owned or infrastructureleased projects;by this state or any other project sponsor, and includes, without limitation:

(j)(1) "HousingThe developmentprocess fund"of meansacquiring, theholding, Westoperating, Virginiaplanning, Housingfinancing, Developmentdemolition, Fundconstruction, establishedimproving, underexpanding, articlerenovation, eighteenleasing, of this chapter, or anyotherwise successordisposing toof allthe project or any substantial part ofthereof itsor powersinterest andtherein; duties;

(k)and "Infrastructure(2) fund"preparing meansland for construction and making, installing, or constructing improvements on the Westland, Virginiaincluding infrastructurewater fundor createdwastewater facilities or any part thereof, steam, gas, telephone and established44 inCS sectionfor nineSB of762 thistelecommunications article;and electric lines and installations, roads, bridges, railroad spurs, buildings, docking and shipping facilities, curbs, gutters, sidewalks, and drainage and flood control facilities, whether on or off the site;

(l) "Infrastructure project" means a project in the state which the council determines is likely to foster and enhance economic growth and development in the area of the state in which the project is developed, for commercial, industrial, community improvement or preservation or other proper purposes, including, without limitation, tourism and recreational housing, land, air or water transportation facilities and bridges, industrial or commercial projects and facilities, mail order, warehouses, wholesale and retail sales facilities and other real and personal properties, including facilities owned or leased by this state or any other project sponsor, and includes, without limitation:

(1) The process of acquiring, holding, operating, planning, financing, demolition, Intr SB 2026R3758S 2026R3759H construction, improving, expanding, renovation, leasing or otherwise disposing of the project or any part thereof or interest therein;

and (2) preparing land for construction and making, installing or constructing improvements on the land, including water or wastewater facilities or any part thereof, steam, gas, telephone and telecommunications and electric lines and installations, roads, bridges, railroad spurs, buildings, docking and shipping facilities, curbs, gutters, sidewalks, and drainage and flood control facilities, whether on or off the site;

and any other amounts received by the State Treasurer, councilcouncil, or the water development authority Water Development Authority for the purposes of this article;

(o) "Project" means any wastewater facility, water facility projectproject, or any combination thereof, constructed or operated or to be constructed or operated by a project sponsor;

(p) "Project sponsor" means any governmental agency or person, or any combination thereof, including, but not limited to, any public utility,utility which intends to plan, acquire, construct, improveimprove, or otherwise develop a project;

(q) "Public service commission"commission Service Commission" means the Public Service Commission of West Virginia created and established under section§24-1-3 three, article one, chapter twenty-four of this code, or any successor to all or any substantial part of its powers and duties;

(r) "Person" means any individual, corporation, partnership, association, limited liability companycompany, or any other form of business organization;

(s) "Public utility" means any person or persons, or association of persons, however Intr SB 2026R3758S 2026R3759H associated, whether incorporated or not, including, without limitation, any governmental agency,agency operating a wastewater facility or water facility as a public service,service which is regulated by the Public Service Commission as a public utility under chapter§24-1-1 twenty-fouret ofseq. this code or which is required to file its tariff with the Public Service Commission;

(t) "State Development Office" means the West Virginia Development Office established under article two, chapter five-b of this code,code or anywhich successoris required to allfile or45 anyCS substantialfor partSB of762 its powerstariff andwith duties;the Public Service Commission;

(u)(t) "State infrastructureDevelopment agency"Office" means the divisionWest ofVirginia health, Division of Environmental Protection, Housing Development Fund,Office Publicestablished Serviceunder Commission,§5b-2-1 stateet Developmentseq. Office, water development authority, economic development authority and any other state agency, division, body, authority, commission, instrumentality or entity which now or in the future receives applications for the funding of, and provides funding or technical assistance to, the planning, acquisition, construction or improvement of a project;

(v)of "Wastewaterthis facility"code, means all facilities, land and equipment used for or inany connectionsuccessor withto treating,all neutralizing, disposing of, stabilizing, cooling, segregating or holdingany wastewater,substantial including,part without limitation, facilities for the treatment and disposal of sewage,its industrialpowers wastes or other wastes, wastewater, and theduties; residue thereof;

(u) "State infrastructure agency" means the division of health Department of Health, Division Department of Environmental Protection, Housing Development Fund, Public Service Commission, state Development Office, water development authority, economic development authority Water Development Authority, Economic Development Authority and any other state agency, division, body, authority, commission, instrumentality, or entity which now or in the future receives applications for the funding of, and provides funding or technical assistance to, the planning, acquisition, construction, or improvement of a project;

(v) "Wastewater facility" means all facilities, land, and equipment used for or in connection with treating, neutralizing, disposing of, stabilizing, cooling, segregating, or holding wastewater, including, without limitation, facilities for the treatment and disposal of sewage, industrial wastes or other wastes, wastewater, and the residue thereof;

(w) "Water development authority"authority Development Authority" means the West Virginia water development authority Water Development Authority continued pursuant to the provisions of article§22c- one,1-1 chapteret twenty-two-cseq. of this code, or any successor to all or any substantial part of its powers and duties;

andof (x)this "Watercode, facility"or meansany allsuccessor facilities,to landall and equipment used for or inany connectionsubstantial withpart Intr SB 2026R3758S 2026R3759H the collection and/or storage of water,its bothpowers surface and underground,duties; transportation of water, storage of water, treatment of water and distribution of water all for the purpose of providing potable, sanitary water suitable for human consumption and use.

§31-15A-3.and (x) "Water facility" means all facilities, land, and equipment used for or in connection with the collection and/or storage of water, both surface and underground, transportation of water, storage of water, treatment of water, and distribution of water all for the purpose of providing 46 CS for SB 762 potable, sanitary water suitable for human consumption and use.

West Virginia Infrastructure and Jobs Development Water Development and Infrastructure Council continued;

members of council;

staff of council.

(a) The West Virginia Infrastructure and Jobs Development Council is continued as the West Virginia Water Development and Infrastructure Council.

All references to the West Virginia Infrastructure and Jobs Development Council shall be construed as reference to the West Virginia Water Development and Infrastructure Council.

The council is a governmental instrumentality of the state.

The exercise by the council of the powers conferred by this article and the carrying out of its purpose and duties shall be considered and held to be, and are determined to be, essential governmental functions and for a public purpose.

(b) The council shall consist of thirteen members, including:

(1) The Governor or designee;

(2) The Executive Director of the Housing Development Fund or his or her designee;

(3) The Director of the Division Secretary of the Department of Environmental Protection or his or her designee;

(4) The Director of the Economic Development Authority or his or her designee;

(5) The Director of the Water Development Authority or his or her designee;

(6) The Director of the Division of Health Bureau of Public Health or his or her designee;

(7) The Chairman of the Public Service Commission or his or her designee;

and (8) Six members representing the general public:

Provided, That there shall be at least one member representing the general public from each congressional district.

No more than one member representing the general public may be a resident of the same county.

(c) The Governor shall appoint the public members of the council who shall serve three- year staggered terms.

Intr SB 2026R3758S 2026R3759H (d) The Commissioner of the Division of Highways, the Executive Director of the State Rail Authority, two members of the West Virginia Senate, two members of the West Virginia House of Delegates, the Chancellor of the Higher Education Policy Commission and the Chancellor of the West Virginia Council for Community and Technical College Education serve as advisory members of the council.

The advisory members shall be ex officio, nonvoting members of the council.

(e) The Governor shall appoint the legislative members of the council:

Provided, That no more than three of the legislative members may be of the same political party.

(f) The Governor or designee shall serve as chairman and the council shall annually appoint a vice chairperson and shall appoint a secretary, who need not be a member of the council and who shall keep records of its proceedings.

Seven members of the council shall constitute a quorum and the affirmative vote of at least the majority of those members present shall be necessary for any action taken by vote of the council.

A vacancy in the membership of the council does not impair the rights of a quorum by such vote to exercise all the rights and perform all the duties of the council.

(g) A member of the council who serves by virtue of his or her office does not receive compensation or reimbursement of expenses for serving as a member.

The public members are reimbursed for actual expenses incurred in the service of the council in a manner consistent with guidelines of the travel management office of the Department of Administration.

(h) The council meets at least monthly to review projects and infrastructure projects requesting funding assistance and otherwise to conduct its business and may meet more frequently if necessary.

Notwithstanding any other provision of this article to the contrary, the Economic Development Authority is not subject to council review with regard to any action taken pursuant to the authority established in article fifteen, chapter thirty-one of this code.

The Governor’s Civil Contingent Fund is not subject to council review with regard to projects or infrastructure projects funded through the Governor’s Civil Contingent Fund.

Intr SB 2026R3758S 2026R3759H (i) The Water Development Authority shall provide office space for the council and each governmental agency represented on the council shall provide staff support for the council in the manner determined appropriate by the council.

(j) The council shall invite to each meeting one or more representatives of the United States Department of Agriculture, Rural Economic Community Development, the United States Economic Development Agency and the United States Army Corps of Engineers or any successors thereto.

The council shall invite other appropriate parties as is necessary to effectuate the purposes of this article.

–— The Consolidation Committee, as created by the council’s bylaws, is continued within the council.

The composition and terms of the Consolidation Committee shall be proscribedprescribed by the council,council through its bylaws.

The Consolidation Committee shall meet at least quarterly, but may meet more frequently, as set forth in this section of code.

–— It is the objective of the Consolidation Committee to ensure that the council does not approve state funding for projects when the costs or complexities can be eliminated or reduced by voluntary consolidation or merger.

Except for critical needs and bid overruns, the Consolidationtechnical Committeereviewers for the council shall review every project which seeks $100,000 or greater in state grantsfunding from the Council.council.

The members of the Consolidation Committee mayshall reviewbe additionalprovided projects,a inwritten itsassessment discretion.by the technical reviewer relating to consolidation.

Any member of the Consolidation Committee may, at any time, request a more detailed analysis of potential opportunities for consolidation.

Further, any member of the Consolidation Committee may request that the Consolidation Committee convene to discuss the potential consolidation of any project, regardless of the recommendation of the technical reviewer.

–— PriorThe tocouncil determiningshall whetherinclude aon projectits ispublic eligiblewebsite fora funding,list theof all project sponsorsponsors shallseeking solicitproject afunding, non-bindingwhich valuationshall orbe letterposted ofwithin intent30 fromcalendar anydays capableof proximatereceiving utility,the asinitial definedapplication. in §24-2H-3 of this code.

(1)Any Thecapable Publicproximate Serviceutility, Commissionas willdefined helpin the§24-2H-3 projectof sponsorthis identifycode, aor capableany Intrutility SBthat 2026R3758Sbelieves 2026R3759Hit may qualify as a capable proximate utility, and,may forsubmit theseto purposes,the mayConsolidation identifyCommittee morea thannon-binding onevaluation utilityor whichletter mayof qualifyintent asfor the project sponsor of a capable47 proximateCS utility.for SB 762 project.

(2)(1) TheIf, prior to the council voting on a recommendation to proceed, a capable proximate utility provides a non-binding valuation indicating that acquisition or consolidation would result in a lower long-term cost to the customers of the project sponsor willthan bethe responsibleproposed forproject, providingor anyif the functionality that an acquisition or consolidation would afford would substantially alter the scope or cost of the project, then the Consolidation Committee shall convene a meeting to determine whether the non-binding valuation by the capable proximate utility withchanges writtenthe noticeassessment of whether consolidation is appropriate, and whether the proposedproject project.sponsor should be eligible for state funding.

AnyThe noticedConsolidation Committee shall afford both the project sponsor and the capable proximate utility willwith havean tenopportunity business days to respondbe inheard. writing.

(2) A capable proximate utility may requestwithdraw thata thenon-binding projectvaluation sponsorat orany thetime. Consolidation Committee allow additional time to respond.

(3) If a capable proximate utility provides a non-binding valuation indicating that acquisition or consolidation would result in a lower long-term cost to the customers of the project sponsor than the proposed project, or if the functionality that an acquisition or consolidation would afford would substantially alter the scope or cost of the project, then the Consolidation Committee should heavily weigh such valuation in determining whether the project is eligible for state funding.

(4) A capable proximate utility may withdraw a non-binding valuation at any time.

Such withdrawal shall be considered by the Consolidation Committee in determining eligibility.

–— The Consolidation Committee shall also work with the stakeholders, as set forth in §24-2H-3c of this code, to identify water and wastewater systems which should consolidate, regionalize, or otherwise pull resources for the betterment of their systems.

–— If the Consolidation Committee determines that the project sponsor can connect or share facilities, lines or other mechanisms with another utility, or the project sponsor can take other physical or legal action to join or collaborate with another utility,utility and doing so would render the project unnecessary, or would substantially impact the necessary scope of the project, then the Consolidation Committee should determine that the requested project is not eligible for funding.

(1) If the Consolidation Committee determines that consolidation, regionalization, or other Intr SB 2026R3758S 2026R3759H action is necessary for the long-term functionality of a system seeking state funds, then the Consolidation Committee may determine that the system is ineligible for funding from the council 48 CS for SB 762 until such action has been achieved.

–— The Consolidation Committee may place appropriate and reasonable requirements which must be met before the public utility regains eligibility for funding.

–— (1) The Consolidation Committee shall recommend approval of an otherwise ineligible public utility,utility if failure to fund could endanger the health or safety of the existing customers of the public utility, or if failure to fund could have a significant negative impact on the economy of the region where the public utility is located.

(2) The Consolidation Committee may also recommend approval of an otherwise ineligible public utility,utility if failure to consolidate is due solely to the unwillingness of the other utility to cooperate.

–— Upon a finding by the Consolidation Committee that a water or wastewater system is ineligible for state funding by the council,council due to the fault of the public utility seeking approval, the Water Development Authority shall likewise determine that the public utility is ineligible for other state funded grants.

However,Any any state grants awarded prior to the Consolidation Committee’s determination may be honored if there is an executed contract, or if state funding is necessary to maintain federal funding.

Intr SB 2026R3758S 2026R3759H §31-15A-9a.

(a) TheGoal predominantin goalUse of theState councilFunds. is to ensure that customers of public water and wastewater utilities receive safe, reliable, and effective services.

Accordingly,— inThe consideringpredominant thegoal issuance of grantsthe orcouncil loansis to publicensure waterthat or49 wastewaterCS utilities for aSB project,762 thecustomers councilof shallpublic prioritizewater the health and safetywastewater ofutilities thereceive customerssafe, whoreliable, willand beeffective affectedservices. by the project.

Accordingly, in considering the issuance of grants, or loans to public water, or wastewater utilities for a project, the council shall prioritize the health and safety of the customers who will be affected by the project.

(b) IfSubstantial theNoncompliance. project sponsor is a public utility that is in substantial noncompliance with any lawful requirement of a state regulatory agency, including, but not limited to, the Public Service Commission, the Department of Health, or the Department of Environmental Protection, the council may only approve the issuance of a grant or loan under this article or under §22C-1-1 et seq.

— If the project sponsor is a public utility that is in substantial noncompliance with any lawful requirement of thisa codestate regulatory agency, including, but not limited to, the Public Service Commission, the Department of Health, or the Department of Environmental Protection, the council may only approve the issuance of a grant or loan if:

(1) The reason for the utility being in substantial noncompliance would be rectified, or mostly rectified, by the completion of the project,project and the state regulatory agency that has found the utility in substantial noncompliance submits written support for the project being approved;

(c) TheHistory council may deny funding for a project if the project sponsor is a public utility that has more than one finding of noncomplianceNoncompliance. from a state regulatory agency, including, but not limited to, Public Service Commission, the Department of Health, or the Department of Environmental Protection, or if a state regulatory agency has identified the project sponsor as repeatedly or willfully being noncompliant with the requirements of the state regulatory agency.

(d)— The council shallmay adoptdeny uniformfunding guidelines for determininga whenproject itif canthe approveproject sponsor is a projectpublic toutility receivethat has more than one finding of noncompliance from a grantstate regulatory agency, including, but not limited to, Public Service Commission, the Department of Health, or the Department of Environmental Protection, or if a loanstate underregulatory thisagency articlehas identified the project sponsor as repeatedly or underwillfully §22C-1-1being etnoncompliant seq.with the requirements of the state regulatory agency.

of(d) thisFinancial codeAudits. when Intr SB 2026R3758S 2026R3759H the project includes an extension of water or wastewater services, including the addition of new lines or new customers.

— If the project sponsor is required to provide the Public Service Commission with an audit, pursuant to either §8-19-15 or §16-13A-11 of this code, then the Public Service Commission shall provide a copy of the two most recent audits to the council for its consideration.

The council should not approve the issuance of a grant or loan to an entity required 50 CS for SB 762 to submit an audit if:

(1) The project sponsor is not current in submitting its audits as required by law;

(2) The council determines that the project sponsor is unable or unwilling to follow the recommendations of the audit, and such demonstrates a meaningful failure in management;

or (3) The council determines that the most recent audit raises serious concerns for the financial capability or responsibility of the project sponsor, the ability of the project sponsor to reasonably pay off any loans received by any public or private lender, or the long-term financial viability of the project sponsor.

(e) Addition of New Lines.

— The council shall adopt uniform guidelines for determining when it can approve a project to receive a grant or a loan under this article or under §22C-1-1 et seq.

of this code when the project includes an extension of water or wastewater services, including the addition of new lines or new customers.

(a) To further accomplish the purpose and intent of this article, the Water Development Authority shall use the moneys in the Infrastructure Fund created pursuant to §31-15A-9 of this code, upon receipt of one or more recommendations from the council pursuant to §31-15A-5 of this code, to make loans, with or without interest, loan guarantees, or grants, and to provide other 51 CS for SB 762 assistance, financial, technical, or otherwise, to finance all or part of the costs of infrastructure projects or projects to be undertaken by a project sponsor:

(b) No loan, loan guarantee, grant, or other assistance shall be made or provided except upon a determination by the council that the loan, loan guarantee, grant, or other assistance and the manner in which it will be provided are necessary or appropriate to accomplish the purposes Intr SB 2026R3758S 2026R3759H and intent of this article, based upon an application submitted to the council.

Provided, That No project sponsor shall receive infrastructure grant money in an 52 CS for SB 762 amount in excess of 50 percent of the total cost of the project.

(c) (e) Notwithstanding any other provision of this article to the contrary, the council shall Intr SB 2026R3758S 2026R3759H apply a mandatory minimum end user utility rate that must be met by the project sponsor before funding assistance may be awarded.

The mandatory minimum end utility rate shall be based upon a uniform statewide percentage of the median household income in a particular geographic area and said rate shall not exceed sixsix-tenths -enths of one percent.

(e)(g) Notwithstanding any other provision of this article to the contrary, engineering studies and requirements imposed by the council for preliminary applications shall not exceed those engineering studies and requirements which are necessary for the council to determine the 53 CS for SB 762 economic feasibility of the project.

and Intr SB 2026R3758S 2026R3759H (E) Whether the project sponsor has previously requested funding through the council, and, if so, whether those prior projects were technically feasible.

In no event may the amount of funding assistance to defray the expenses of the preapplication process provided to all project 54 CS for SB 762 sponsors exceed, in the aggregate, $1,300,000 annually.

The council Intr SB 2026R3758S 2026R3759H shall only award a state grant by a binding commitment, which may only be issued after the project sponsor has obtained all other available federal, state, and private funding.

§31-15A-13.

Prohibition on funds inuring to the benefit of or being distributable to water development board;

transactions between the water development board and officers having certain interests in such transactions authority.

No part of the infrastructure fund or the West Virginia infrastructure revenue debt service fund shall inure to the benefit of or be distributable to the water development board directors or officers or employees of the water development authority except that the water development authority is authorized and empowered to pay reasonable compensation, other than to members of the water development board, including the chairman, vice chairman, secretary-treasurer for services rendered and to make loans and exercise its other powers as previously specified in furtherance of its corporate purpose:

Provided, That no loans shall be made, and no property shall be purchased or leased from, or sold, leased or otherwise disposed of, to any water development board member or officer or employee of the water development authority.

§31-15A-17.

Water development authority empowered to issue infrastructure revenue bonds and refunding bonds;

creation of infrastructure revenue debt service fund;

funding of infrastructure revenue debt service fund;

requirements and manner of such issuance.

(a) To accomplish the purpose and intent of this article, the water development authority is hereby empowered at the written request of the council to issue from time to time infrastructure revenue bonds of the state in such principal amounts as the council deems necessary to make loans and loan guarantees and other forms of financial assistance to project sponsors for one or more projects or infrastructure projects:

Provided, That the water development authority may not issue any such bonds, other than refunding bonds, unless the council by resolution determines that the aggregate cost of the projects or infrastructure projects expected to be constructed during any annual period exceeds (1) the projected annual infrastructure revenues for the same period, Intr SB 2026R3758S 2026R3759H and (2) the principal and interest payments not otherwise pledged to the infrastructure revenue debt service fund that are due the water development authority on all outstanding loans previously made by the water development authority pursuant to the provisions of this article.

(b) The proceeds of infrastructure revenue bonds shall be used solely for the purpose of making loans and loan guarantees and other forms of financial assistance to sponsors of one or more projects or infrastructure projects, and shall be deposited in one or more special accounts with the trustee under the trust agreement securing such bonds and disbursed from time to time for projects or infrastructure projects in accordance with this article:

Provided, That notwithstanding any provision of this code to the contrary, twenty percent of the funds deposited in the special account shall be dedicated for the purpose of providing funding for costs of infrastructure projects as defined in subsection (l), section two, of this article.

(c) The water development authority may not authorize the disbursement of any proceeds of infrastructure revenue bonds unless it has received documentation from the council pursuant to the provisions of section ten of this article.

(d) There is hereby created in the water development authority a special fund which shall be designated and known as the "West Virginia Infrastructure Revenue Debt Service Fund," into which shall be transferred solely from the loan repayments deposited in the infrastructure fund the amounts certified by the director of the water development authority as necessary to pay the principal, premium, if any, and interest on infrastructure revenue bonds and any reserve requirements, subject to the terms of any agreement with the holders of the infrastructure revenue bonds.

All amounts deposited in the West Virginia infrastructure revenue debt service fund shall be pledged to the repayment of the principal, interest and redemption premium, if any, on any infrastructure revenue bonds authorized by this article:

Provided, That amounts on deposit in the fund may be used to establish or maintain reserves created for the purposes of securing such infrastructure revenue bonds.

The pledge shall be valid and binding from the time the pledge is made, and the West Virginia infrastructure revenue debt service fund so pledged shall Intr SB 2026R3758S 2026R3759H immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the water development authority irrespective of whether the parties have notice thereof.

(e) Except as may otherwise be expressly provided in this article or by resolution of the water development authority, every issue of infrastructure revenue bonds shall be special obligations of the water development authority payable solely from amounts in the West Virginia infrastructure revenue debt service fund, and the reserves created for this purpose by the water development authority, without preference or priority among the bonds regardless of when issued, subject only to any agreements with the holders of any bonds to the contrary.

All such bonds are hereby declared to be negotiable instruments.

(f) Infrastructure revenue bonds shall be authorized by resolution of the water development authority.

These bonds shall bear such dates and shall mature at such times, in case of any note or renewal thereof not exceeding five years from the date of issue of the original note, and in the case of any bond not exceeding fifty years from the date of issue, as the resolution may provide.

Infrastructure revenue bonds shall bear interest at a rate or rates, including variable rates, shall be taxable or tax-exempt, shall be in the denominations, shall be in registered form, shall carry the registration privileges, shall be payable in the medium and place of payment, and shall be subject to the terms of redemption as the water development authority may authorize.

Infrastructure revenue bonds may be sold by the water development authority at public or private sale at the price the water development authority determines in consultation with the council.

Infrastructure revenue bonds shall be executed by the chairman and the vice chairman of the water development authority, either or both of whom may use a facsimile signature.

The official seal of the water development authority or a facsimile thereof shall be affixed thereto or printed thereon and attested by manual or facsimile signature by the secretary-treasurer of the water development authority.

If any officer whose signature, or a facsimile of whose signature appears on any Intr SB 2026R3758S 2026R3759H infrastructure revenue bond ceases to be such officer before delivery of such bond, such signature or facsimile is nevertheless sufficient for all purposes to the same extent as if he or she had remained in office until such delivery, and if the seal of the water development authority has been changed after a facsimile has been imprinted on such bond, the facsimile will continue to be sufficient for all purposes.

(g) Any resolution authorizing any infrastructure revenue bonds may contain provisions, subject to any agreement with bondholders or noteholders which may then exist, which agreements shall be part of the contract with the holder thereof, with respect to the pledge of or other use and disposition of amounts in the infrastructure revenue debt service fund;

the setting aside of reserve funds;

the disposition of any assets of the water development authority;

limitations on the purpose to which the proceeds of sale of bonds may be applied;

the authorization of notes issued in anticipation of the issuance of bonds;

an agreement of the water development authority to do all things necessary for the authorization, issuance and sale of such bonds in such amounts as may be necessary for the timely retirement of such notes;

limitations on the issuance of additional bonds;

the terms upon which additional bonds may be issued and secured;

the refunding of outstanding bonds and the renewal of outstanding notes;

the procedures, if any, by which the terms of any contract with bondholders or noteholders may be amended or abrogated;

the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given;

and any other matter which in any way affects the security for or protection of the bonds.

(h) In the event that the sum of all reserves pledged to the payment of the bonds is less than the minimum reserve requirements established in any resolution or resolutions authorizing the issuance of the bonds, the chairman or the director of the water development authority shall certify, on or before December 1, of each year, the amount of such deficiency to the Governor of the state for inclusion, if the Governor shall so elect, of the amount of such deficiency in the budget to be submitted to the next session of the Legislature for appropriation to the water development Intr SB 2026R3758S 2026R3759H authority to be pledged for payment of such bonds:

Provided, That the Legislature shall not be required to make any appropriations so requested, and the amount of such deficiencies shall not constitute a debt or liability of the state.

(i) Neither the officers or board members employees of the water development authority, nor any person executing the infrastructure revenue bonds, shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

NOTE:

The purpose of this bill is to comprehensively reform the state’s water and wastewater infrastructure, streamline and clarify the process for issuing certain state grants and loans for water and wastewater infrastructure projects, eliminating the Water Development Authority Board and reassigning any necessary functions, requiring additional reports and on-going training for city and county operators of public water and wastewater systems, allowing public water and wastewater systems to enter into Regional Cooperative Agreements, creating an Early Intervention Pilot Program for struggling public water and wastewater utilities, updating the methodology for the watch list for troubled public water and wastewater utilities, establishing an improvement period for public water and wastewater utilities on the watch list, and allowing for required memorandums of understanding when an identified acquiring utility is exempt from forced consolidation.

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