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Bill > HB5210


WV HB5210

WV HB5210
Comprehesive reform of the state’s water infrastructure systems.


summary

Introduced
02/05/2026
In Committee
02/26/2026
Crossed Over
Passed
Dead
03/14/2026

Introduced Session

2026 Regular Session

Bill Summary

A BILL to amend and reenact §22C-1-3, §22C-1-4, §24-2H-1, §24-2H-3, §24-2H-4, §24-2H-5, §24-2H-6, §24-2H-7, §24-2H-8, §31-15A-1, §31-15A-2, and §31-15A-10, of the Code of West Virginia, 1931, as amended; and to amend the code by adding thereto the following new sections, designated as §22C-1-5a, §24-2-4i, §24-2H-3a, §24-2H-3b, §24-2H-3c, §24-2H-4a, §24-2H-7a, §24-2J-1, §24-2J-2, §24-2J-3, §24-2J-4, §24-2J-5, §24-2J-6, §24-2J-7, §24-2J-8, §24-2J-9, §24-2J-10, §24-2J-11, §24-2J-12, §24-2J-13, §31-15A-3a, and §31-15A-9a, relating to comprehensive reform of the state’s water infrastructure systems; allowing certain private utilities to be eligible for low-interest loans through the Water Development Authority, so long as the issuance of loans to public utilities are prioritized; providing for an inflation-based rate adjustment for publicly owned water and sewer utilities; renaming the Distressed and Failing Utilities Improvement Act the Distressed and Failing Water and Wastewater Utilities Improvement Act; requiring mandatory reporting to municipal governing bodies and county commissions; requiring initial and renewed training for municipal governing bodies and county commissions overseeing public water and/or wastewater utilities; designating water and wastewater regions across the state; authorizing utilities to enter into Regional Cooperative Agreements, which shall include and encourage shared resources, and which should afford the participating utilities with benefits, such as relaxed regulatory requirements; creating a voluntary Early Intervention Pilot Program which shall afford six to ten public water and wastewater utilities with an opportunity to address critical matters before the utilities end up on the distressed and failing utilities watch list; modifying the process for placing public water and wastewater utilities on the watch list for water and wastewater utilities; establishing a mandatory improvement period for public water and wastewater utilities on the watch list for distressed and failing utilities; authorizing the Public Service Commission to order utilities which are exempt from being ordered to acquire a distressed or failing utility to enter into a memorandum of understanding to ensure that the distressed or failing utility continues to properly function while the Public Service Commission identifies an alternative acquiring utility; codifying the Consolidation Committee on the Water Development and Infrastructure Council, which allows for considering whether voluntary consolidation would improve an infrastructure project; establishing new guidelines for the use of state funds, which addresses when a public water or wastewater utility seeking funding is in substantial noncompliance with state regulations, and when a public water or wastewater utility is not current on its financial audits or has findings in said financial audits which are of concern; requiring guidelines for determining when to fund projects that include line extensions, and authorizing public water utilities to obtain use contracts with potential new customers before obtaining funding; allowing public water and wastewater utilities to seek a waiver of a preliminary engineering report prior to obtaining a recommendation to seek funding; requiring the Water Development Authority to work with public water and wastewater utilities to rectify any issues which may prevent the utility from being eligible for state funding for infrastructure projects; creating the Struggling Utilities Improvement Pilot Program; providing for the creation of a struggling utility support team within the Water Development Authority; authorizing the creation of subaccount within the Economic Enhancement Grant Fund to fund the support team; providing for the process for selecting utilities to participate in the pilot program; providing for notice to participating utilities; providing procedures for improvement plans, periods, assessment of improvement period, complaints by the support team against struggling utilities; authorizing the support team to charge the participating utility for certain cost of the improvement period and to forgive certain costs based on the utilities improvement; providing for limitations and application of open meetings requirements, confidentiality of documents, stakeholder meetings, and reports of the support team to the Governor and Legislature; updating definitions; and technical changes throughout.

AI Summary

This bill enacts comprehensive reforms to West Virginia's water and wastewater infrastructure systems by allowing private utilities to access low-interest loans from the Water Development Authority (WDA), though public utilities are prioritized for these loans. It introduces an inflation-based rate adjustment mechanism for publicly owned water and sewer utilities, named the "Public Utility Stability Act," which allows for annual rate increases tied to a specific federal index, simplifying the process for these utilities. The legislation also renames the "Distressed and Failing Utilities Improvement Act" to the "Distressed and Failing Water and Wastewater Utilities Improvement Act" and mandates regular reporting to municipal and county governing bodies, along with required training for officials overseeing these utilities. To encourage collaboration, the bill designates water and wastewater regions across the state and authorizes utilities within these regions to enter into "Regional Cooperative Agreements" for shared resources, potentially leading to relaxed regulatory requirements. A voluntary "Early Intervention Pilot Program" is established to help six to ten public water and wastewater utilities proactively address critical issues before they become distressed, while also modifying the process for placing utilities on a "watch list" for distressed and failing systems and establishing a mandatory improvement period for those on the list. Furthermore, the Public Service Commission (PSC) is empowered to require utilities exempt from acquiring distressed utilities to enter into memorandums of understanding to ensure continued service while alternative solutions are sought. The bill also codifies the "Consolidation Committee" within the Water Development and Infrastructure Council to evaluate voluntary consolidation opportunities for infrastructure projects and introduces new guidelines for the use of state funds, addressing situations where utilities are in substantial noncompliance with regulations or have concerning financial audit findings. It also sets criteria for funding projects involving line extensions, allowing utilities to secure use contracts with potential customers before obtaining funding, and permits waivers for preliminary engineering reports in certain cases. Finally, the WDA is tasked with assisting utilities in resolving issues that hinder their eligibility for state infrastructure funding, and a new "Struggling Utilities Improvement Pilot Program" is created, supported by a dedicated subaccount within the Economic Enhancement Grant Fund, to provide targeted assistance to struggling utilities, including the formation of a support team to develop and oversee improvement plans.

Committee Categories

Budget and Finance, Transportation and Infrastructure

Sponsors (2)

Last Action

To House Finance (on 02/26/2026)

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