HB 1964 — 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.   2471

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       HOUSE BILL
                       No. 1964
                                               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 17, 2025

     REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
        UTILITIES, OCTOBER 17, 2025


                                   AN ACT
 1   Providing for a moratorium on the privatization of public water
 2      and wastewater systems; establishing the Water Utility Reform
 3      Working Group; and making a repeal relating to valuation of
 4      acquired water and wastewater systems.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7   Section 1.   Short title.
 8      This act shall be known and may be cited as the Public Water
 9   Protection and Fair Utility Transition Act.
10   Section 2.   Findings and declarations.
11      The General Assembly finds and declares as follows:
12          (1)   Access to clean, affordable water is a fundamental
13      human need and a matter of public interest.
14          (2)   Since the enactment of 66 Pa.C.S. § 1329 (relating
15      to valuation of acquired water and wastewater systems)
16      through Act No. 12 of 2016, the fair market valuation
17      mechanism has led to rapid privatization of publicly owned
 1      water and wastewater systems, often resulting in significant
 2      rate increases for the residents of this Commonwealth.
 3            (3)   The long-term public, environmental and economic
 4      consequences of these transactions have not been sufficiently
 5      studied nor addressed through comprehensive policy.
 6            (4)   A temporary pause is necessary to protect consumers
 7      and allow the Commonwealth to develop a fair, sustainable and
 8      accountable water utility framework.
 9   Section 3.     Definitions.
10      The following words and phrases when used in this act shall
11   have the meanings given to them in this section unless the
12   context clearly indicates otherwise:
13      "Commission."     The Pennsylvania Public Utility Commission.
14      "Privatization."     As follows:
15            (1)   A sale, lease, transfer or conveyance of a
16      municipality-owned or authority-owned water or wastewater
17      system to a private, investor-owned or for-profit entity.
18            (2)   The term does not include an acquisition ordered by
19      the commission in accordance with 66 Pa.C.S. § 529 (relating
20      to power of commission to order acquisition of small water
21      and sewer utilities).
22      "Working group."     The Water Utility Reform Working Group
23   established under section 5(a).
24   Section 4.     Moratorium.
25      (a)   Prohibition.--Notwithstanding 66 Pa.C.S. § 1327
26   (relating to acquisition of water and sewer utilities),
27   beginning on the effective date of this subsection, and for a
28   period of 12 months thereafter, the privatization of a
29   municipality-owned, county-owned or authority-owned water or
30   wastewater system shall not be authorized, approved or executed

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 1   within this Commonwealth.
 2      (b)   Applicability.--Subsection (a) applies to:
 3            (1)   Finalizing an existing agreement not fully executed
 4      prior to the effective date of this paragraph.
 5            (2)   Submitting an application for acquisition approval
 6      to the commission.
 7            (3)   Issuing a request for proposal or initiating a sale
 8      discussion with a private entity.
 9      (c)   Nonapplicability.--Subsection (a) does not apply to:
10            (1)   An emergency transfer required to maintain public
11      health and safety.
12            (2)   An acquisition ordered by the commission in
13      accordance with 66 Pa.C.S. § 529 (relating to power of
14      commission to order acquisition of small water and sewer
15      utilities).
16      (d)   Enforcement.--An attempted action or proposal regarding
17   privatization within the moratorium period described in
18   subsection (a) shall be deemed null and void. The commission may
19   not docket or consider the attempted action or proposal during
20   the moratorium period.
21      (e)   Expiration.--Unless extended by further legislative
22   action, the moratorium under this section shall expire 12 months
23   after the effective date of this subsection.
24   Section 5.     Water Utility Reform Working Group.
25      (a)   Establishment.--The Water Utility Reform Working Group
26   is established.
27      (b)   Convening of working group.--No later than 60 days after
28   the effective date of this subsection, the Governor shall
29   convene the working group.
30      (c)   Frequency of meetings.--The working group shall meet no

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 1   fewer than three times after the initial meeting convened in
 2   accordance with subsection (b).
 3      (d)   Members.--The working group shall consist of the
 4   following:
 5            (1)    The chairperson of the commission, who shall serve
 6      as the chairperson of the working group.
 7            (2)    The Secretary of Environmental Protection or a
 8      designee, who shall serve as the vice chairperson of the
 9      working group.
10            (3)    One member of the majority caucus of the Senate,
11      appointed by the Majority Leader of the Senate.
12            (4)    One member of the minority caucus of the Senate,
13      appointed by the Minority Leader of the Senate.
14            (5)    One member of the majority caucus of the House of
15      Representatives, appointed by the Majority Leader of the
16      House of Representatives.
17            (6)    One member of the minority caucus of the House of
18      Representatives, appointed by the Minority Leader of the
19      House of Representatives.
20            (7)    A representative from the Office of Consumer
21      Advocate.
22            (8)    A representative from AARP Pennsylvania.
23            (9)    A representative from the Pennsylvania Municipal
24      Authorities Association.
25            (10)    A representative from the Pennsylvania State
26      Association of Township Supervisors.
27            (11)    A representative from the Pennsylvania State
28      Association of Boroughs.
29            (12)    A representative from a Statewide low-income
30      advocacy organization, appointed by the Governor.

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 1          (13)    A water utility economist or rate-setting expert
 2    from academia or the nonprofit sector, appointed by the
 3    Governor.
 4          (14)    A representative from an environmental advocacy
 5    group, appointed by the Governor.
 6          (15)    A representative from a rural water/environmental
 7    group, appointed by the Governor.
 8          (16)    A representative from the water and sewer industry,
 9    appointed by the Governor.
10          (17)    A citizen representative appointed by the Governor.
11    (e)   Report.--
12          (1)    No later than 10 months after the effective date of
13    this subsection, the working group shall develop a
14    comprehensive policy proposal that, at a minimum:
15                 (i)    Ensures equitable rate structures.
16                 (ii)    Protects public ownership.
17                 (iii)    Enhances regulatory oversight.
18                 (iv)    Improves transparency in utility transactions.
19                 (v)    Addresses safety, security and reliability of
20          drinking water.
21          (2)    The working group shall issue a report containing
22    the comprehensive policy proposal described in paragraph (1),
23    which shall be delivered to the following:
24                 (i)    The Governor.
25                 (ii)    The commission.
26                 (iii)    The chairperson and minority chairperson of
27          the Consumer Protection and Professional Licensure
28          Committee of the Senate.
29                 (iv)    The chairperson and minority chairperson of the
30          Consumer Protection, Technology and Utilities Committee

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 1            of the House of Representatives.
 2   Section 6.     Repeals.
 3      (a)   Repealed provisions.--The following are repealed:
 4            (1)   66 Pa.C.S. § 1329 (relating to valuation of acquired
 5      water and wastewater systems).
 6            (2)   Any other provision regarding the fair market
 7      valuation of acquired water and wastewater utilities.
 8      (b)   Applicability.--The repeal of the provisions specified
 9   under subsection (a) shall apply to contracts and agreements for
10   privatization that are dated on or after the effective date of
11   this subsection.
12   Section 7.     Effective date.
13      This act shall take effect immediately.




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