An Act providing for a moratorium on the privatization of public water and wastewater systems; establishing the Water Utility Reform Working Group; and making a repeal relating to valuation of acquired water and wastewater systems.

PRINTER'S NO. 2462
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1954
Session of
2025
INTRODUCED BY BURGOS, BOROWSKI, SAPPEY, HANBIDGE, KRUEGER,
KAZEEM, O'MARA, GUZMAN, McNEILL, HILL-EVANS, PROBST, MAYES,
HOHENSTEIN, DONAHUE, STEELE, K.HARRIS, FREEMAN, HADDOCK,
GREEN, CIRESI, PARKER AND GILLEN, OCTOBER 15, 2025
REFERRED TO COMMITTEE ON COMMUNICATIONS AND TECHNOLOGY,
OCTOBER 16, 2025
AN ACT
Providing for a moratorium on the privatization of public water
and wastewater systems; establishing the Water Utility Reform
Working Group; and making a repeal relating to valuation of
acquired water and wastewater systems.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Public Water
Protection and Fair Utility Transition Act.
Section 2. Findings and declarations.
The General Assembly finds and declares as follows:
(1) Access to clean, affordable water is a fundamental
human need and a matter of public interest.
(2) Since the enactment of 66 Pa.C.S. § 1329 (relating
to valuation of acquired water and wastewater systems)
through Act No. 12 of 2016, the fair market valuation
mechanism has led to rapid privatization of publicly owned
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water and wastewater systems, often resulting in significant
rate increases for the residents of this Commonwealth.
(3) The long-term public, environmental and economic
consequences of these transactions have not been sufficiently
studied nor addressed through comprehensive policy.
(4) A temporary pause is necessary to protect consumers
and allow the Commonwealth to develop a fair, sustainable and
accountable water utility framework.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commission." The Pennsylvania Public Utility Commission.
"Privatization." As follows:
(1) A sale, lease, transfer or conveyance of a
municipality-owned or authority-owned water or wastewater
system to a private, investor-owned or for-profit entity.
(2) The term does not include an acquisition ordered by
the commission in accordance with 66 Pa.C.S. § 529 (relating
to power of commission to order acquisition of small water
and sewer utilities).
"Working group." The Water Utility Reform Working Group
established under section 5(a).
Section 4. Moratorium.
(a) Prohibition.--Notwithstanding 66 Pa.C.S. § 1327
(relating to acquisition of water and sewer utilities),
beginning on the effective date of this subsection, and for a
period of 12 months thereafter, the privatization of a
municipality-owned, county-owned or authority-owned water or
wastewater system shall not be authorized, approved or executed
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within this Commonwealth.
(b) Applicability.--Subsection (a) applies to:
(1) Finalizing an existing agreement not fully executed
prior to the effective date of this paragraph.
(2) Submitting an application for acquisition approval
to the commission.
(3) Issuing a request for proposal or initiating a sale
discussion with a private entity.
(c) Nonapplicability.--Subsection (a) does not apply to:
(1) An emergency transfer required to maintain public
health and safety.
(2) An acquisition ordered by the commission in
accordance with 66 Pa.C.S. § 529 (relating to power of
commission to order acquisition of small water and sewer
utilities).
(d) Enforcement.--An attempted action or proposal regarding
privatization within the moratorium period described in
subsection (a) shall be deemed null and void. The commission may
not docket or consider the attempted action or proposal during
the moratorium period.
(e) Expiration.--Unless extended by further legislative
action, the moratorium under this section shall expire 12 months
after the effective date of this subsection.
Section 5. Water Utility Reform Working Group.
(a) Establishment.--The Water Utility Reform Working Group
is established.
(b) Convening of working group.--No later than 60 days after
the effective date of this subsection, the Governor shall
convene the working group.
(c) Frequency of meetings.--The working group shall meet no
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fewer than three times after the initial meeting convened in
accordance with subsection (b).
(d) Members.--The working group shall consist of the
following:
(1) The chairperson of the commission, who shall serve
as the chairperson of the working group.
(2) The Secretary of Environmental Protection or a
designee, who shall serve as the vice chairperson of the
working group.
(3) One member of the majority caucus of the Senate,
appointed by the Majority Leader of the Senate.
(4) One member of the minority caucus of the Senate,
appointed by the Minority Leader of the Senate.
(5) One member of the majority caucus of the House of
Representatives, appointed by the Majority Leader of the
House of Representatives.
(6) One member of the minority caucus of the House of
Representatives, appointed by the Minority Leader of the
House of Representatives.
(7) A representative from the Office of Consumer
Advocate.
(8) A representative from AARP Pennsylvania.
(9) A representative from the Pennsylvania Municipal
Authorities Association.
(10) A representative from the Pennsylvania State
Association of Township Supervisors.
(11) A representative from the Pennsylvania State
Association of Boroughs.
(12) A representative from a Statewide low-income
advocacy organization, appointed by the Governor.
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(13) A water utility economist or rate-setting expert
from academia or the nonprofit sector, appointed by the
Governor.
(14) A representative from an environmental advocacy
group, appointed by the Governor.
(15) A representative from a rural water/environmental
group, appointed by the Governor.
(16) A representative from the water and sewer industry,
appointed by the Governor.
(17) A citizen representative appointed by the Governor.
(e) Report.--
(1) No later than 10 months after the effective date of
this subsection, the working group shall develop a
comprehensive policy proposal that, at a minimum:
(i) Ensures equitable rate structures.
(ii) Protects public ownership.
(iii) Enhances regulatory oversight.
(iv) Improves transparency in utility transactions.
(v) Addresses safety, security and reliability of
drinking water.
(2) The working group shall issue a report containing
the comprehensive policy proposal described in paragraph (1),
which shall be delivered to the following:
(i) The Governor.
(ii) The commission.
(iii) The chairperson and minority chairperson of
the Consumer Protection and Professional Licensure
Committee of the Senate.
(iv) The chairperson and minority chairperson of the
Consumer Protection, Technology and Utilities Committee
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of the House of Representatives.
Section 6. Repeals.
(a) Repealed provisions.--The following are repealed:
(1) 66 Pa.C.S. § 1329 (relating to valuation of acquired
water and wastewater systems).
(2) Any other provision regarding the fair market
valuation of acquired water and wastewater utilities.
(b) Applicability.--The repeal of the provisions specified
under subsection (a) shall apply to contracts and agreements for
privatization that are dated on or after the effective date of
this subsection.
Section 7. Effective date.
This act shall take effect immediately.
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