On January 25, 2024, the West Virginia State Legislature introduced House Bill 5089, aimed at amending §24-2-11 of the West Virginia Code. This bill seeks to create a limited waiver from the certificate of public convenience and necessity requirement for certain water and sewer service projects, particularly those funded by federal relief programs.

The primary purpose of House Bill 5089 is to streamline the process for public utilities, corporations, or individuals providing water or sewer services, specifically those with at least 4,500 customers and annual gross revenues of $3 million or more. Under the current law, these entities must obtain a certificate from the Public Service Commission before beginning construction on any new facilities. However, the proposed legislation would waive this requirement for projects that meet specific criteria: they must be funded in whole or in part by the American Rescue Plan Act of 2021 or the Coronavirus State Fiscal Recovery Fund, propose a rate increase of 20 percent or less, and receive technical feasibility approval from the Infrastructure and Jobs Development Council or the Water Development Authority. This waiver is set to expire on January 1, 2025.

The introduction of this bill has sparked discussions among lawmakers and stakeholders regarding its implications. Proponents argue that the waiver will expedite critical infrastructure projects, allowing for quicker improvements to water and sewer services, which are essential for public health and safety. They emphasize the importance of utilizing federal funds effectively to address pressing needs in the state.

Conversely, some legislators and advocacy groups have raised concerns about potential oversight issues. They worry that bypassing the certificate requirement could lead to inadequate scrutiny of projects, potentially compromising service quality and environmental standards. The debate centers on balancing the urgency of infrastructure improvements with the need for regulatory oversight.

The economic implications of House Bill 5089 could be significant, as it aims to facilitate the timely deployment of federal funds into local projects, potentially stimulating job creation and enhancing community services. However, the bill's limited scope and temporary nature may restrict its long-term impact.

As the legislative session progresses, House Bill 5089 will likely undergo further discussions and possible amendments. Stakeholders are closely monitoring its trajectory, as its passage could reshape the landscape of water and sewer service provision in West Virginia, particularly in the wake of federal funding opportunities.