At McNees, Wallace, and Nurick, LLC, we often write of current or emerging issues that may have significant cost implications for large commercial, industrial and institutional end users in Pennsylvania. We also closely monitor newly proposed legislation or regulation that may affect service rates, terms and use conditions.
For example, in 2016, we closely tracked HB 2114 introduced by Representative Mike Sturla (D-Lancaster). It was captioned as follows: “Providing for registration of extraordinary nonagriculture and nonmunicipal water users; imposing a water resource fee; establishing the Water Use Fund; and providing for submission of a question to the electorate authorizing incurring of indebtedness for water-related environmental initiatives.”
This Bill defines “extraordinary water user” as “a person that withdraws more than 10,000 gallons of water a day from the waters of this Commonwealth for the purpose of for-profit business.” In addition to a rather rigorous filing requirement, this Bill proposed a fee of $0.001 per gallon for water consumption greater than 10,000 gallons/day.” In other words, this proposed legislation seeks to foist an additional $110,000/year on a large commercial/industrial customer using 10,000,000 gallons/month. No mention is made in the Bill that some large volumes users (within the Susquehanna River Basin) have been paying a similar fee for some time. (See our earlier Blog articles regarding this issue.)
In 2016, this bill stalled in Committee; as such, by the end of the session, we believed the matter had been put down. We learned recently that plans exist for this same bill to be re-introduced later in 2017. This is an important issue for large volume commercial and industrial users all of whom likely use far more than 10,000 gallons/day.
Recently, we learned that this bill is slated to be introduced in the second quarter of 2017 and may also include additional cost factors to be introduced in the upcoming Chesapeake Bay Commission meeting. That meeting is currently slated for March 4 and 5, 2017, in Washington, DC. Bill proponents are hoping to incorporate additional initiatives into what will be more expansive and far-reaching legislation.
This is yet one more example of the significantly increasing prices paid for provision of water and wastewater services, as they pertain to industrial, large commercial and institutional end-users. This trend is likely, absent more vocal opposition from all affected end users, to continue in 2017 and beyond.
The Pennsylvania Statewide Water Users group is organizing an initiative to raise the awareness of lawmakers as to the potential impact of such legislation, and to coalesce if necessary, a group of impacted large volume users to provide testimony in opposition to such a significant cost increase. If you would like more information, or if you have questions, please contact Jim Dougherty at 717.237.5249 or firstname.lastname@example.org.