CS/HB 357 Summary

• Creates new authority for the Division of Bond Finance to review and reallocate private activity bonds for water and sewage facility infrastructure projects.

• Exempts persons who resell water service to tenants or residents from Public Service Commission regulation if the fee does not exceed actual purchase price plus 9 percent or actual meter reading and billing costs.

• Establishes water and wastewater service quality standards based on secondary drinking water standards and wastewater service issues; authorizes the commission to adopt rules with penalties including fines and return on equity reductions up to 100 basis points for non-compliance.

• Expands automatic rate adjustment procedures to include loan service fees for eligible infrastructure projects and tank inspection costs; allows commission to establish additional eligible expense items by rule, reviewed every 5 years.

• Allows Department of Environmental Protection to make loans, grants, and deposits to for-profit privately owned or investor-owned water systems for planning and construction, with exception for systems serving 1,500+ connections unless project consolidates multiple systems.

• Effective date: July 1, 2014.