SENATE, No. 543

SECTION 1. There is hereby established a Special Water Infrastructure Finance Commission to develop a comprehensive, long-range water infrastructure finance plan for the Commonwealth and its municipalities.

Section. 2. The Commission shall have 15 members to each serve terms of 2 years, including the following:  7 members to be appointed by the governor who shall not be employees of the executive branch and who shall reside in different geographic regions of the Commonwealth, one of whom shall be a representative of the American Council of Engineering Companies of Massachusetts, a representative of the Utility Contractors Association of New England, a representative of the Massachusetts Water Works Association; a representative of the Massachusetts Municipal Association; a representative of Clean Water Action; a representative of Associated Industries of Massachusetts; and a representative of the Massachusetts Water Pollution Control Association; each of these organizations shall provide a list of three to five candidates for consideration by the governor; 3 members, who shall reside in different geographic regions of the Commonwealth, to be appointed by the president of the senate; and 3 members, who shall reside in different geographic regions of the Commonwealth, to be appointed by the speaker of the House of Representatives. Each of the members of the Commission shall be an expert or shall have experience in the fields of law or public policy, water, wastewater or storm water planning, design and construction of water, wastewater or storm water projects, utility management, management consulting or organizational finance.  One of the members appointed by the president of the Senate shall be a state senator and one of the members appointed by the speaker of the House of Representatives shall be a state representative.  One of the members appointed by the president of the Senate and one of the members appointed by the speaker of the House of Representatives shall be representatives of the Massachusetts business community.  One of the members appointed by the president of the Senate and one of the members appointed by the speaker of the House of Representatives shall be representatives of planning organizations, environmental consumer organizations or other public interest organizations.  One of the members shall be appointed by the governor to serve as chairperson of the Commission.  The members of the Commission shall be appointed no later 90 days after the passage of this act.

Section 3. In the course of its deliberations, the Commission shall examine the water infrastructure needs of the Commonwealth for the next 25 years as they relate to the funding gap between the water infrastructure needs of the Commonwealth and the existing, available sources of funding, and provide for additional funding for water infrastructure by increasing investment in critical water, wastewater and storm water infrastructure, and to provide for improvements in the handling and management of water programs.  The Commission shall also examine the potential threats to public health and public safety from the existing shortfalls in funding for water infrastructure.

The Commission shall make a priority of examining the technical and financial feasibility of sustaining and expanding public water systems, wastewater systems and storm water systems of municipalities and the Commonwealth including regional or district systems.  Said Commission shall examine and develop recommendations on ways in which the Commonwealth and its municipalities may meet operation and maintenance, and capital improvement and reconstruction needs for the next 25 years, including without limitation recommendations regarding debt reduction, enhancing existing sources of revenues, developing new sources of revenues, establishing new incentives for public-private partnerships in the development of real property resources and funding resources.  In addition, the Commission shall examine (1) the expanded use of full accounting systems and enterprise funding, (2) asset management systems and best management practices, (3) consistency with the Massachusetts Water Management Act and the Massachusetts Water Policy, and (4) consistency with existing federal and state funding programs.

            The Commission shall examine the finances of the various municipalities and regional water districts, including examining state and federal aid levels and make recommendations for improvements to financial policies and procedures.  The Commission shall also identify areas where cost savings can be achieved across water agencies via consolidation, coordination and reorganization.  The Commission shall examine the projected federal funding, projected state funding, projected local funding, projected fee based funding, debt financing and any other sources of projected funding to finance water infrastructure needs identified by the Commission.

Section 4.  The Commission shall develop recommendations as to what funding or finance measures the Commonwealth or its municipalities may pursue to satisfy any unmet funding needs identified by the Commission.  The recommendation shall also include any recommendation for inter-agency agreements, inter-municipal agreements, consolidations or mergers that will enable the Commonwealth and its municipalities to make the most effective use of its water funding resources.  The recommendation of the Commission shall be designed to identify fair and equitable means of financing water infrastructure investments through taxes, fees, user charges, or other sources.

Section 5.  The Commission may hold public hearings to assist in the collection and evaluation of data and testimony.

Section 6. The Commission shall complete a written report detailing its financials relative to identified funding sources, including a draft of any legislation required to implement its recommendations.  The Commission shall submit its initial report to the governor, the secretary of environmental affairs, the clerks of the house of representative and the senate, the house and senate committees on ways and means and the joint committee on the environment no later than December 31 of the year after this act becomes law.

Section 7. Any research, analysis or other staff support that the Commission reasonably requires shall be provided by the executive office of environmental affairs and its agencies with assistance from the Massachusetts Water Resources Authority.