For Immediate Release
May 9, 2008
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H2O PA Plan Would Fund Critical Infrastructure Needs

Senator Jane Earll (R-49), Senate Majority Leader Dominic Pileggi (R-9) and Sen. Mike Folmer (R-48) today announced H2O PA, a plan to provide $750 million in funding for critical water and sewer projects, storm water projects, flood control projects, and high-hazard dam repairs. 

The $750 million H2O PA bond issue – introduced as Senate Bill 2 – will be funded with revenue from the Pennsylvania Gaming Economic Development and Tourism Fund. This funding program will be available for projects throughout Pennsylvania, with a first priority being given to those involving consolidation and a second priority being given to those involving regional projects. 

"One of the biggest challenges facing communities throughout the commonwealth is the funding of adequate water management infrastructures," said Sen. Earll. "Utilizing the gaming revenues from this fund in such a way would be a wise investment in our future." 

"It has been estimated that the cost of modernizing Pennsylvania's existing water and sewer systems is more than $11 billion," said Sen. Pileggi. "H2O PA represents a good down payment toward meeting that need." 

"Providing for infrastructure is a core function of government, and I am pleased that we are seeking to prioritize and use existing state money rather than raising taxes," said Sen. Folmer.       

To be eligible for funding, a project must be owned by a municipality or authority, and must include local matching funds totaling at least 50 percent of the project cost. The Commonwealth Financing Authority will evaluate applications, with the Department of Environmental Protection (DEP) and the Pennsylvania Infrastructure Investment Authority (PENNVEST) providing technical review and assistance. 

Because they have already benefitted from projects funded through the Pennsylvania Gaming Economic Development and Tourism Fund, Philadelphia and Allegheny counties will not be eligible for funding from H2O PA until Fiscal Year 2016-17. 

Senate Bill 2 is scheduled to be considered by the Senate Environmental Resources and Energy Committee on Tuesday.

Contact:

Jason Brehouse (Sen. Earll)
(717) 787-8927
Joe Sterns (Sen. Folmer)
(717) 787-5708
Erik Arneson (Sen. Pileggi)
(717) 787-4712