Senate committee advances water infrastructure bill to aid struggling utilities and streamline funding
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Summary
A governor’s bill (committee substitute for Senate Bill 7 62) to strengthen support for distressed and failing water utilities, codify regional cooperation and streamline state funding was approved by the committee and will be reported to the full Senate with a referral to Finance; the measure includes a new early‑intervention pilot, changes making DEP the administrator of state revolving funds, and limited loan authority for private utilities under WDA discretion.
The Committee on Government Organization agreed to a committee substitute for Senate Bill 7 62, a governor’s bill intended to address aging water infrastructure and the state’s distressed and failing utilities.
Committee counsel described two broad elements: (1) strengthening the Distressed and Failing Utilities Improvement Act through added reporting, retraining of managers and governing‑body members, regional cooperation agreements and a five‑year early‑intervention pilot; and (2) streamlining state funding by designating the Department of Environmental Protection (DEP) as the administrator of the state revolving funds and allowing the Water Development Authority (WDA) discretion to make loans to private utilities, while still prioritizing public utilities for grants.
Katie Franklin, deputy general counsel for Governor Morrissey’s office, answered questions from senators and emphasized that the substitute does not create a new, dedicated funding source in the bill. "There isn't a new fund created in here," Franklin said, noting that the measure formalizes existing coordination among agencies and provides an early‑intervention option to help utilities become eligible for state funding.
Key provisions: the substitute creates an early intervention pilot for struggling utilities, clarifies the PSC watch list and improvement plans with measurable goals, codifies a consolidation committee within the Infrastructure and Jobs Development Council, and authorizes the DEP commissioner to administer the state revolving funds and, where needed, use eminent domain to complete projects. The bill also specifies that private utilities may seek loans through the WDA at the WDA’s discretion but remain ineligible for state grants.
Funding and oversight questions: Franklin confirmed there is a distinct distressed utilities fund capped at $5,000,000 that has limited, specific uses (for example, in forced consolidations), but the committee substitute itself does not appropriate new money. Senators probed how the improvement plans would translate into funding eligibility; Franklin said the plans aim to help utilities meet criteria for existing state funding programs.
Action: the committee agreed to the committee substitute and voted to report it to the full Senate with a first reference to the Finance Committee.
Next steps: the substitute will move to the Finance Committee and the full Senate for further consideration.