[52 Pa.B. 4096]
[Saturday, July 23, 2022]
[Continued from previous Web Page]
Annex A
TITLE 52. PUBLIC UTILITIES
PART I. PUBLIC UTILITY COMMISSION
Subpart C. FIXED SERVICE UTILITIES
CHAPTER 65. WATER SERVICE Subchap.
A. SERVICE GENERALLY B. LEAD SERVICE LINE REPLACEMENTS Subchapter A. SERVICE GENERALLY
Sec.
65.1. Definitions. 65.2. Accidents. 65.3. Complaints. 65.4. Records. 65.5. Interruptions of service. 65.6. Pressures. 65.7. Metered service. 65.8. Meters. 65.9. Adjustment of bills for meter error. 65.10. Disputed bills. 65.11. Mandatory conservation measures. 65.12. Notice of desire to have service discontinued. 65.13. Temporary service. 65.14. Measurement. 65.15. Refusal to serve applicants. 65.16. System of accounts. 65.17. Standards of design. 65.18. Standards of construction. 65.19. Filing of annual financial reports. 65.20. Water conservation measures—statement of policy. 65.21. Duty of public utility to make line extensions. 65.22. Customer advance financing, refunds and facilities on private property. 65.23. Special utility service. Subchapter B. LEAD SERVICE LINE REPLACEMENTS
Sec.
65.51. Purpose. 65.52. Definitions. 65.53. Time to replace LSLs. 65.54. Petitioning the Commission for a LSLR program. 65.55. LSLR program requirements. 65.56. LSLR plan requirements. 65.57. Periodic review of LSLR plan. 65.58. Pro forma tariff or tariff supplement requirements. 65.59. LSLR Program reports. 65.60. Accounting and financial. 65.61. Preexisting LSLR activities. 65.62. Prohibition on partial LSLRs. § 65.51. Purpose.
The purpose of this subchapter is to implement 66 Pa.C.S. § 1311(b) (relating to valuation of and return on the property of a public utility) governing the standard under which an entity may seek to replace LSLs and recover associated costs. This subchapter establishes the time, manner, form and content of filings for Commission approval of LSLRs. This subchapter also sets forth the minimum requirements for LSLRs.
§ 65.52. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
AAO plan—Annual asset optimization plan—The term as defined in § 121.2 (relating to definitions).
Customer—A party contracting with an entity for service.
Customer-owned LSL—Customer-owned lead service line—The portion of the lead service line extending from the curb, property line or entity connection to an entity's water meter or, if the entity's meter is located outside of the structure or water is not metered by the entity, at the first shutoff valve located within the interior of the structure.
DSIC—Distribution system improvement charge—The term as defined in § 121.2.
Entity—A public utility as defined in 66 Pa.C.S. § 102 (relating to definitions) engaged in diverting, developing, pumping, impounding, distributing or furnishing water service to or for the public for compensation, a municipal corporation as defined in § 65.52 (relating to definitions), and an authority as defined in 66 Pa.C.S. § 3201(1) (relating to definitions).
Galvanized service line—Iron or steel piping that has been dipped in zinc to prevent corrosion and rusting.
LSL—Lead service line—A service line made of lead that connects the water main to a building inlet and a lead pigtail, gooseneck or other fitting that is connected to the lead line. A galvanized service line is considered a lead service line if it ever was or is currently downstream of any lead service line or service line of unknown material.
LSLR—Lead service line replacement—A service line, whether entity-owned or customer-owned, installed to replace a lead service line.
LSLR plan—Lead service line replacement plan—A plan and supporting documents submitted to and approved by the Commission that specify how an entity intends to implement its lead service line replacement program.
LSLR program—Lead service line replacement program—A program submitted to and approved by the Commission for the replacement of lead service lines by an entity.
LSLR program report—Lead service line replacement program report—The annual report, including a plan and supporting documents, providing information for lead service line replacements completed by an entity under its lead service line replacement program.
LSLR project—Lead service line replacement project—An entity-scheduled lead service line replacement activity either in conjunction with main replacements or as part of a lead service line replacement program.
LSLR project area—Lead service line replacement project area—The area encompassing an entity's scheduled lead service line replacement activities, which includes the area within a 1-mile radius of a lead service line replacement project if served by the entity.
LSLR project commencement—Lead service line replacement project commencement—Installation of the first lead service line replacement within a lead service line replacement project area.
LTIIP—Long-term infrastructure improvement plan—The term as defined in § 121.2.
Municipal corporation—The term as defined in 66 Pa.C.S. § 102 (relating to definitions) engaged in diverting, developing, pumping, impounding, distributing or furnishing water service to or for the public for compensation beyond its corporate limits as referenced in 66 Pa.C.S. § 1501 (relating to character of service and facilities).
Partial LSLR—Partial lead service line replacement—A lead service line replacement that does not replace both the entity-owned and customer-owned portions of a lead service line.
Service line—The pipe and appurtenances which connect any main to an entity's water meter or, if the entity's water meter is located outside of the structure or the connection is not metered by the entity, at the first shutoff valve located within the interior of the structure.
Service line inventory—The process of identifying each service line under the timing and direction of United States Environmental Protection Agency regulation at 40 CFR 141.1—143.20 as enforced by the Department of Environmental Protection, inclusive of future changes as those regulations may be amended.
Water distribution system—The equipment and facilities owned or operated by an entity for diverting, developing, pumping, impounding, distributing or furnishing water to or for the public for compensation.
§ 65.53. Time to replace LSLs.
(a) An entity, other than a municipal corporation, shall remove and replace all LSLs, whether entity-owned or customer-owned, within or connected to its water distribution systems within 25 years from the effective date of this section for a Class A public utility or authority, and within 30 years from the effective date of this section for a Class B public utility or Class C public utility.
(b) A municipal corporation shall remove and replace all LSLs, within or connected to its water distribution systems, beyond its corporate limits, whether municipal corporation-owned or customer-owned, within 30 years from the effective date of this section.
§ 65.54. Petitioning the Commission for a LSLR program.
(a) An entity shall file a LSLR program petition in accordance with § 65.55(a) (relating to LSLR program requirements) with the Commission's Secretary's Bureau with copies served upon the Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate, and the parties of record in the entity's most recent base rate case. Service is evidenced by a certificate of service filed with the LSLR program petition.
(b) An entity that has a Commission-approved LTIIP shall include with its LSLR program petition a modified LTIIP containing a LSLR plan as a separate and distinct component of the entity's LTIIP.
(c) An entity that does not have a Commission-approved LTIIP when filing its LSLR program petition shall include a LSLR plan meeting the requirements of § 121.3 (relating to LTIIP).
§ 65.55. LSLR program requirements.
A LSLR program must comply with the following:
(a) A Class A public utility or authority shall file a LSLR program within 1 year of the effective date of this section. A Class B public utility, Class C public utility or municipal corporation shall file a LSLR program within 2 years of the effective date of this section. An entity that received prior Commission approval to perform LSLR activities shall comply with § 65.61 (relating to preexisting LSLR activities).
(b) An entity's LSLR program must include:
(1) A LSLR plan as described in § 65.56 (relating to LSLR plan requirements).
(2) A pro forma tariff or tariff supplement containing the proposed changes necessary to implement the entity's LSLR program as described in § 65.58 (relating to pro forma tariff or tariff supplement requirements).
(3) Information required by the Commission for filings under 66 Pa.C.S. § 1308 (relating to voluntary changes in rates), including statements required by § 53.52(a) (relating to applicability; public utilities other than canal, turnpike, tunnel, bridge and wharf companies).
(c) A final Commission Order approving an entity's LSLR program will direct the entity to make any necessary revisions to the pro forma tariff or tariff supplement and resubmit the tariff or tariff supplement under 66 Pa.C.S. § 1308.
(d) After initial Commission approval of an entity's LSLR program, the LSLR program may be subject to review in all future base rate cases. An entity shall submit any modification to the LSLR program for review with its base rate case.
§ 65.56. LSLR plan requirements.
An entity's LSLR plan must contain, at a minimum:
(a) Service line inventory.
(1) Entities subject to this chapter shall submit to the Commission a service line inventory that complies with United States Environmental Protection Agency regulation at 40 CFR 141.1—143.20 as enforced by the Department of Environmental Protection, inclusive of future changes as those regulations may be amended.
(2) An entity acquiring a water distribution system shall provide to the Commission a service line inventory for the acquired system upon completion of the acquisition or as part of the entity's service line inventory under paragraph (1), whichever is later. An entity may rely on a previously completed service line inventory for an acquired system if the entity updates the service line inventory to meet the requirements of paragraph (3).
(3) An entity's service line inventory must comply with the timing and direction of United States Environmental Protection Agency regulation at 40 CFR 141.1—143.20 as enforced by the Department of Environmental Protection, inclusive of future changes as those regulations may be amended.
(4) An entity shall identify assumptions in its service line inventory to the Commission.
(5) Until the inventory is complete, an entity shall provide detailed information regarding the progress of its service line inventory as part of its annual LSLR program report under § 65.59 (relating to LSLR program reports).
(6) After an entity's service line inventory is complete, it must be incorporated into the entity's next LSLR plan update under § 65.57 (relating to periodic review of LSLR plan).
(b) Planning and replacements. The planning and replacements section of an entity's LSLR plan must include:
(1) The entity's projected annual investment in LSLRs with an explanation of the entity's anticipated sources of financing.
(2) The entity's projected number of LSLRs per calendar year with an explanation of how the entity's projection was determined and a statement that this number is consistent with the entity's annual cap on LSLRs.
(3) The prioritization criteria considered by the entity when developing its LSLR schedule.
(4) An explanation of the entity's processes and procedures to address emergency repairs or replacements which reveal LSLs.
(5) The entity's processes and procedures to obtain acceptance of a LSLR prior to LSLR project commencement if the customer is the property owner, and the entity's processes and procedures to obtain acceptance prior to LSLR project commencement if the customer is not the property owner.
(6) The entity's processes and procedures based upon acceptance of a LSLR, including:
(i) A consent agreement form by which the customer or property owner, if the customer is not the property owner, will authorize the LSLR.
(ii) A brief description of the entity's process for LSLRs under normal conditions and under atypical conditions.
(iii) An explanation of the entity's process for coordination with the customer, and property owner, if the customer is not the property owner, and the information the entity will provide to the customer and the property owner throughout the LSLR process.
(iv) The entity's process for addressing LSLR completion or closeout, or both, with the customer and property owner, if the customer is not the property owner.
(7) The entity's lead/material recycling and disposal efforts, including a description of what the entity will do with proceeds from recycling and disposal efforts.
(8) The industry-accepted practices that the entity plans to use to replace entity-owned and customer-owned LSLs.
(9) A detailed explanation of how the entity's acquisition of water distribution systems will be integrated into the entity's efforts to complete LSLRs throughout its water distribution systems.
(10) The procedure for documenting refusal of, or failure to accept, the offer by the entity to replace a LSL, including the entity's duty to:
(i) Provide the customer and property owner, if the customer is not the property owner, with a complete disclosure of the known health hazards from the continued use of a LSL.
(ii) Inform the customer or property owner, if the customer is not the property owner, that refusal or failure to accept will require replacement of the customer-owned LSL, at the customer or property owner's expense, within 1 year from LSLR project commencement for the customer or property owner, if the customer is not the property owner, to be eligible for reimbursement.
(iii) Communicate to the customer and property owner, if the customer is not the property owner, that failure to allow the entity to complete the LSLR or to replace the customer-owned LSL concurrent with the entity replacing the entity-owned LSL will lead to termination of water service under the provisions of the entity's tariff.
(c) Communications, outreach and education. An entity subject to this chapter shall demonstrate compliance with United States Environmental Protection Agency regulations at 40 CFR 141.85 (relating to public education and supplemental monitoring and mitigation requirements), inclusive of future changes as those regulations may be amended.
(1) The entity's LSLR plan must include copies of all printed and broadcast material to be distributed under the entity's LSLR program.
(2) A Class A public utility or an authority shall develop a LSLR section of its web site within 12 months of Commission approval of its LSLR program. The web site must contain, at a minimum:
(i) An online tool describing the replacement schedule by geographic location, at least 6 months into the future.
(ii) Information regarding the reimbursement requirements and a secure online tool that provides customers or property owners, if the customer is not the property owner, the ability to determine whether the customer or property owner may be eligible for a reimbursement.
(iii) Information that provides the ability to determine whether a property may have a LSL, delineating the known or reasonably anticipated material types for the entity-owned and customer-owned portions of the service line and a method to request assistance to determine if a service line is a LSL.
(iv) Information and resources relating to health risks associated with lead and LSLs, the status of current efforts to replace LSLs and community meetings and advisory committees hosted by the entity.
§ 65.57. Periodic review of LSLR plan.
After initial Commission-approval of an entity's LSLR plan, the entity shall update the LSLR plan for Commission review at least once every 5 years. The Commission will, to the extent possible, coordinate the review of the updated LSLR plan with the periodic review of an entity's LTIIP under § 121.7 (relating to periodic review of an LTIIP).
(a) The Commission's review will determine:
(1) If the entity has adhered to its LSLR plan.
(2) If changes to the entity's LSLR plan are necessary to maintain and improve the efficiency, safety, adequacy and reliability of its LSLR program.
(3) If the updated LSLR plan is consistent with the parameters of the entity's LSLR program.
(4) If the LSLR plan has been satisfied.
(5) If the entity has demonstrated the absence of LSLs through its service line inventory.
(6) If the entity should be released from LSLR plan requirements.
(b) Service of the updated LSLR plan must be made consistent with the requirements of § 65.54(a) (relating to petitioning the Commission for a LSLR program). The Commission will issue a Secretarial Letter establishing a schedule for the submission of comments and reply comments to aid in its periodic review. If the Commission determines that the entity's approved LSLR plan is no longer sufficient to ensure and maintain efficient, safe, adequate, reliable and reasonable service, the Commission will direct the entity to revise, update or resubmit its LSLR plan as appropriate.
§ 65.58. Pro forma tariff or tariff supplement requirements.
An entity's pro forma tariff or tariff supplement containing proposed changes necessary to implement the entity's LSLR program must address, at a minimum:
(a) LSLR program annual cap.
An entity's pro forma tariff or tariff supplement must include a cap on the number of customer-owned LSLs that can be replaced annually.
(b) Service line demarcation.
(1) An entity's pro forma tariff or tariff supplement must include a definition for customer-owned LSL for purposes of the entity's LSLR program that is consistent with § 65.52 (relating to definitions).
(2) An entity may specify in its tariff or tariff supplement that, if a shutoff valve is not located along a specific length of pipe within a structure, the entity may install a shutoff valve to serve as a point of demarcation between the property's service line and the property's interior water distribution piping.
(3) An entity shall perfect its ownership of the portion of the service line located within the then-existing right-of-way in conformance with its Commission-approved tariff to ensure that the entity can obtain necessary permits during the planning phase of a LSLR project.
(c) Partial LSLRs. An entity shall specify as follows in its pro forma tariff or tariff supplement:
(1) Neither a customer nor a property owner may install a partial LSLR. A partial LSLR must result in termination of service until such time as the entity can replace the entity-owned LSL under § 65.62 (relating to prohibition on partial LSLRs).
(2) Where a customer or a property owner, if the customer is not the property owner, elects to replace the customer-owned LSL, the customer or property owner shall replace the customer-owned LSL concurrent with the entity replacing the entity-owned LSL, subject to the following:
(i) For a Class A public utility or an authority, the customer or property owner, if the customer is not the property owner, shall provide the public utility or authority at least 90 days' notice prior to replacing the customer-owned LSL.
(ii) For a Class B or Class C public utility or a municipal corporation, the customer or property owner, if the customer is not the property owner, shall provide the public utility or municipal corporation at least 180 days' notice prior to replacing the customer-owned LSLs.
(3) An entity may establish a process to address replacement of a customer-owned LSL to avoid termination of service when a property owner who is not the customer is nonresponsive to an entity's offer to replace a customer-owned LSL.
(4) An entity shall not connect an applicant for water service to the entity-owned service line at a property where a customer or property owner, if the customer is not the property owner, previously refused or failed to accept an entity's offer of a LSLR until the applicant verifies the replacement of the customer-owned LSL by providing a paid invoice from a licensed contractor where applicable or a verified statement from a licensed contractor attesting to completion of the LSLR.
(d) Reimbursements. An entity shall provide a reimbursement to an eligible customer or property owner, if the customer is not the property owner, who replaced their LSL within 1 year before or from LSLR project commencement.
(1) An entity's pro forma tariff or tariff supplement must include language explaining its reimbursement terms and conditions which shall contain, at a minimum:
(i) An explanation of the entity's method for determining the amount of reimbursement, including any restrictions on reimbursements.
(ii) An explanation of the entity's reimbursement methods, including the forms of payment to be used by the entity to distribute reimbursements and the length of time by which the entity will issue a reimbursement for an eligible reimbursement request.
(iii) An explanation of the entity's method for determining eligibility, providing that:
(A) A customer or property owner, if the customer is not the property owner, located within a LSLR project area is eligible for a reimbursement of LSLR expenses up to 125% of the average cost the entity would have incurred to perform the replacement of a similarly-sized service line, not to exceed the actual cost.
(B) A customer or property owner, if the customer is not the property owner, shall submit to the entity a detailed estimate and paid invoice from a licensed contractor where applicable, verifying the replacement of the customer-owned LSL. Instead of a detailed estimate, a verified statement from the contractor attesting to completion of a LSLR may be sufficient.
(2) Notwithstanding the LSLR program annual cap in subsection (a), an entity shall provide a reimbursement to an eligible customer or property owner, if the customer is not the property owner, within the length of established under subsection (d)(1)(ii). If the reimbursement would cause the entity to exceed its current annual cap subsection (a), the entity must increase its current annual cap by the amount of the reimbursement and decrease its next annual cap by this amount.
(3) An entity shall make reasonable best efforts to assist a customer or property owner, if the customer is not the property owner, through the reimbursement process and, to the extent possible, make determinations in favor of the customer or property owner where the customer or property owner has provided reasonable evidence of a LSLR to the entity.
(e) Warranty. An entity's pro forma tariff or tariff supplement must provide a warranty on LSLR work performed by the entity or its contractor of a term of not less than 2 years. The entity's warranty provisions must:
(1) Define the start date of the 2-year term.
(2) Ensure that the materials and workmanship of the replacement and restoration of surfaces are covered.
(3) Define the maximum coverage amounts under the warranty.
(4) Explain any liability an entity will have for damages not covered by the warranty.
(5) Ensure entity access to the property to correct any deficiencies.
§ 65.59. LSLR program reports.
(a) An entity with an approved LSLR program shall file with the Commission a LSLR program report by March 1 of each year, in both print and electronic formats, including supporting spreadsheets. If an entity is implementing its LSLR plan as part of a Commission-approved LTIIP, the entity shall include a LSLR program report as part of the entity's AAO plan under § 121.6 (relating to AAO plan filings).
(b) An entity's LSLR program report must identify the preceding year's activities, including:
(1) The number of LSLs replaced in the preceding year by water system.
(2) The length of LSLs removed, by pipe diameter, in each water system.
(3) The length, pipe diameters and material types of LSLRs by water system.
(4) The actual cost of each LSLR by water system.
(5) The average cost of a LSLR by water system.
(6) The total annual LSLR expenditures for the calendar year by customer class.
(7) The total projected LSLR expenditures for the following calendar year.
(8) The entity's outreach and coordination activities with other entities, the Department of Transportation, local governments and customers.
(9) The number of LSLR refusals for the calendar year, including municipality and reason for refusal.
(10) Applicable lead monitoring requirements established by the Department of Environmental Protection for each of the entity's water distribution systems.
(11) The entity's compliance with the regulatory requirements established by the United States Environmental Protection Agency and the Department of Environmental Protection, including a description of any violations thereof associated with lead.
(12) The current status of the entity's service line inventory efforts.
(13) The entity's efforts to obtain grants, low interest loans and donations for LSLRs.
§ 65.60. Accounting and financial.
(a) An entity shall record LSLR costs in compliance with the National Association of Regulatory Utility Commissioners uniform system of accounts applicable to the entity. LSLR costs recorded as assets shall be maintained under separate and distinct subaccounts.
(b) For subaccounting purposes, an entity may defer income taxes related to no cost and low-cost sources of funding for LSLRs, including applicable income taxes on contributions-in-aid-of-construction or below-market rate loans, or both, service line inventory, LSLR program development, LSLR plan, LSLR program report, and reimbursement expenses, to the extent that such costs are not recovered through the entity's existing base rates or DSIC.
§ 65.61. Preexisting LSLR activities.
An entity that received prior Commission approval to perform LSLR activities shall submit for Commission approval and file under § 65.55(b) (relating to LSLR program requirements) a LSLR program that, at a minimum, conforms with the requirements of this subchapter no later than the effective date of the rates established under the entity's next base rate case filed following the effective date of this section or within 2 years of the effective date of this section, whichever comes first.
§ 65.62. Prohibition on partial LSLRs.
The following provisions must apply after the effective date of this section:
(a) Where a customer or property owner, if the customer is not the property owner, elects to replace a customer-owned LSL, an entity shall replace the connected entity-owned LSL concurrent with replacement of the customer-owned LSL, subject to the following:
(1) A Class A public utility or authority shall replace the entity-owned LSL concurrent with replacement of the customer-owned LSL within 90 days of the date of a request, or on the LSLR date specified, by the customer or property owner, if the customer is not the property owner, whichever is later.
(2) A Class B or Class C public utility or a municipal corporation shall replace the entity-owned LSL concurrent with replacement of the customer-owned LSL within 180 days of the date of a request, or on the LSLR date specified, by the customer, or property owner, if the customer is not the property owner, whichever is later.
(b) An entity may not install, or cause to be installed, a partial LSLR and may not furnish water service using a partial LSLR that is installed after the effective date of this section by a customer or property owner, if the customer is not the property owner.
(c) Where a customer or property owner, if the customer is not the property owner, refuses, or fails to accept, an entity's offer to replace a customer-owned LSL, the entity shall replace the entity-owned portion of the LSL in accordance with the entity's LSLR plan and terminate service in accordance with the entity's tariff.
(d) Where an entity has reasonable evidence indicating service is being provided using a partial LSLR installed after the effective date of this section by a customer or property owner, if the customer is not the property owner, the entity shall terminate service in accordance with the entity's tariff, unless otherwise directed by the Commission.
(e) An entity shall install, or cause to be installed, entity-owned and customer-owned LSLRs even where an entity is under a Department of Environmental Protection directive to replace LSLs due to a water system's action level exceedance as identified in 25 Pa. Code Chapter 109, Subchapter K (relating to lead and copper).
Annex B
TITLE 52. PUBLIC UTILITIES
PART I. PUBLIC UTILITY COMMISSION
Subpart C. FIXED SERVICE UTILITIES
CHAPTER 66. WASTEWATER SERVICE Subchap.
A. SERVICE GENERALLY B. DAMAGED WASTEWATER SERVICE LATERALS
Subchapter A. SERVICE GENERALLY Sec.
66.1. Definitions. § 66.1. Definitions.
Public utility—Persons or corporations owning or operating equipment or facilities in this Commonwealth for wastewater collection, treatment or disposal for the public for compensation. The term does not include a person or corporation not otherwise a public utility who or which furnishes service only to himself or itself, or a bona fide cooperative association which furnishes service only to its stockholders or members on a nonprofit basis.
Subchapter B. DAMAGED WASTEWATER
SERVICE LATERALSSec.
66.31. Purpose. 66.32. Definitions. 66.33. DWSL program parameters. 66.34. Petitioning the Commission for a DWSL program. 66.35. DWSL program requirements. 66.36. DWSL plan requirements. 66.37. Periodic review of DWSL plan. 66.38. Pro forma tariff or tariff supplement requirements. 66.39. DWSL program reports. 66.40. Accounting and financial. 66.41. Unpermitted connections. 66.42. Competitive advantage. § 66.31. Purpose.
The purpose of this subchapter is to implement 66 Pa.C.S. § 1311(b) (relating to valuation of and return on the property of a public utility) governing the standard under which an entity may seek to replace, rehabilitate or repair damaged wastewater service laterals and recover associated costs. This subchapter sets forth the scope of and provides minimum requirements for DWSL replacements.
§ 66.32. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
AAO plan—Annual asset optimization plan—The term as defined in § 121.2 (relating to definitions).
Combined sewer system—As defined by the Department of Environmental Protection under 25 Pa. Code § 94.1 (relating to definitions).
Customer—A party contracting with an entity for service.
Customer's service lateral—The portion of a service lateral owned by the customer or property owner, if the customer is not the property owner, most often extending from the curb, property line or entity connection to a point 2 feet from the exterior face of the foundation of the structure.
DSIC—Distribution system improvement charge—The term as defined in § 121.2.
DWSL—Damaged wastewater service lateral—A customer's service lateral containing a single area or a combination of several areas, acting collectively, identified by visual or other means, along the length of the lateral which has or have been determined to significantly impair the intended function of the customer's service lateral to convey wastewater flow to the entity's service lateral and keep inflow and infiltration flows, within reason, out of the customer's service lateral.
DWSL plan—Damaged wastewater service lateral plan—A plan and supporting documents submitted to and approved by the Commission that specify how an entity intends to implement its damaged wastewater service lateral program.
DWSL program—Damaged wastewater service lateral program—A program submitted to and approved by the Commission for the replacement, rehabilitation or repair, or both, of damaged wastewater service laterals by an entity.
DWSL program report—Damaged wastewater service lateral program report—The annual report, including a plan and supporting documents, providing information for damaged wastewater service lateral replacements completed by an entity under its damaged wastewater service lateral program.
DWSL project—Damaged wastewater service lateral project—An entity's scheduled damaged wastewater service lateral activity either in conjunction with main replacements or as part of a damaged wastewater service lateral program.
DWSL project area—Damaged wastewater service lateral project area—The area of a sewershed described by an entity as being eligible for the entity's damaged wastewater service lateral plan.
DWSL project commencement—Damaged wastewater service lateral project commencement—Installation of the first damaged wastewater service lateral replacement within a damaged wastewater lateral project area.
DWSL replacement—Damaged wastewater service lateral replacement—A service lateral installed to replace a damaged wastewater service lateral or an approved method under the entity's damaged wastewater service lateral plan to rehabilitate or repair, or both, a damaged wastewater service lateral.
Entity—A public utility as defined in 66 Pa.C.S. § 102 (relating to definitions) engaged in wastewater collection, treatment or disposal for the public for compensation, a municipal corporation as defined in 66 Pa.C.S. § 102 engaged in wastewater collection, treatment or disposal for the public for compensation beyond its corporate limits as referenced in 66 Pa.C.S. § 1501 (relating to character of service and facilities), and an authority as defined in 66 Pa.C.S. § 3201(2) (relating to definitions).
Entity's service lateral—The portion of a service lateral owned by the entity, most often extending from a main to the outlet connection of a customer's service lateral at the curb or property line.
Hydraulic design capacity—The term as defined by the Department of Environmental Protection under 25 Pa. Code § 94.1 (relating to definitions).
Hydraulic overload—The term as defined by the Department of Environmental Protection under 25 Pa. Code § 94.1.
I&I—Inflow and infiltration—The total quantity of water from both infiltration and inflow.
Infiltration—The term as defined by the Department of Environmental Protection under 25 Pa. Code § 965.1.
Inflow—The term as defined by the Department of Environmental Protection under 25 Pa. Code § 965.1 (relating to definitions).
LTIIP—Long-term infrastructure improvement plan—The term as defined in § 121.2.
Main—The pipe of a public utility system, excluding service laterals, located in a public highway, street, alley or private right-of-way which pipe is used in collecting and conveying wastewater.
Monthly average flow—The term as defined by the Department of Environmental Protection under 25 Pa. Code § 94.1.
Sanitary sewer system—''Separate sanitary sewer system'' as defined by the Department of Environmental Protection under 25 Pa. Code § 94.1.
Service lateral—The pipe and appurtenances that connect any main to a point 2 feet from the exterior face of the foundation of the structure.
Sewershed—A delineated area contributing wastewater flows to a single downstream point in a wastewater system.
Wastewater—The term as defined in 66 Pa.C.S. § 102.
Wastewater facilities—Sewerage facilities as defined by the Department of Environmental Protection under 25 Pa. Code § 94.1.
Wastewater system—Sewer system as defined by the Department of Environmental Protection under 25 Pa. Code § 94.1.
Wastewater overflow—Includes the terms ''CSO-Combined sewer overflow'' and ''Sanitary sewer overflow'' as defined by the Department of Environmental Protection under 25 Pa. Code § 94.1.
§ 66.33. DWSL program parameters.
(a) An entity may petition the Commission for approval of a DWSL program to replace, rehabilitate or repair DWSLs where its purpose can be specifically linked to the entity's efforts to address either of the objectives set forth in subsection (b).
(b) An entity's purpose for petitioning the Commission for approval of a DWSL program shall be linked to:
(1) Excessive I&I causing, or which is reasonably expected to cause within the next 5 years, a hydraulically overloaded condition, wastewater overflows or additional flow which is prudent for the entity to avoid.
(2) Design or construction conditions causing, or which are reasonably expected to cause within the next 5 years, wastewater overflows.
§ 66.34. Petitioning the Commission for a DWSL program.
(a) An entity may file a DWSL program petition in accordance with § 66.35(a) (relating to DWSL program requirements) with the Commission's Secretary's Bureau with copies served upon the Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate and the parties of record in the entity's most recent base rate case. Service is evidenced by a certificate of service filed with the DWSL program petition.
(b) An entity that has a Commission-approved LTIIP shall include with its DWSL program petition a modified LTIIP containing a DWSL plan as a separate and distinct component of the entity's LTIIP.
(c) An entity that does not have a Commission-approved LTIIP when filing its DWSL program petition shall include a DWSL plan meeting the requirements of § 121.3 (relating to LTIIP).
§ 66.35. DWSL program requirements.
(a) A DWSL program must include the following:
(1) A DWSL plan as described in § 66.36 (relating to DWSL plan requirements).
(2) A pro forma tariff or tariff supplement containing the proposed changes necessary to implement the entity's DWSL program as described in § 66.38 (relating to pro formal tariff or tariff supplement requirements).
(3) Information required by the Commission for filings under 66 Pa.C.S. § 1308 (relating to voluntary changes in rates), including statements required by § 53.52(a) (relating to applicability; public utilities other than canal, turnpike, tunnel, bridge and wharf companies).
(b) A final Commission Order approving an entity's DWSL program will direct an entity to make any necessary revisions to the pro forma tariff or tariff supplement and resubmit the tariff or tariff supplement under 66 Pa.C.S. § 1308.
(c) After initial Commission-approval of an entity's DWSL program, the DWSL program may be subject to review in all future base rate cases. An entity shall submit any modification to the DWSL program for review with its base rate case.
§ 66.36. DWSL plan requirements.
An entity's DWSL plan must contain, at a minimum:
(a) Planning and replacements. The planning and replacements section of an entity's DWSL plan must include:
(1) The entity's projected annual investment in DWSL replacements with an explanation of the entity's anticipated sources of financing.
(2) The entity's projected number of DWSL replacements per calendar year with an explanation of how the entity's projection was determined, and a statement that this number is consistent with the entity's annual cap on DWSL replacements.
(3) The identification criteria or standard to be used by the entity to determine whether a service lateral is damaged and is impacting the entity's wastewater system.
(4) The eligible areas designated by the entity as proposed DWSL project areas described with a bearing angles and distances or metes and bounds description and graphically depicted.
(5) The prioritization criteria considered by the entity when developing its DWSL replacement schedule.
(6) A benefit analysis detailing the expected improvements in the entity's wastewater system functionality.
(7) An estimate of the net present value of the entity's future reduced or increased costs associated with DWSL replacements, or both, identified in the DWSL plan broken down by capital costs and operation and maintenance costs.
(8) The entity's processes and procedures to obtain acceptance of a DWSL replacement prior to DWSL project commencement if the customer is the property owner, and the entity's processes and procedures to obtain acceptance prior to DWSL project commencement if the customer is not the property owner.
(9) The entity's processes and procedures based upon acceptance of a DWSL replacement including:
(i) A consent agreement form by which the customer or property owner, if the customer is not the property owner, will authorize the DWSL replacement.
(ii) A brief description of the entity's process for DWSL replacement under normal conditions and atypical conditions for gravity and pressurized DWSLs.
(iii) An explanation of the entity's process for coordination with the customer and property owner, if the customer is not the property owner, and the information the entity will provide to the customer and the property owner throughout the DWSL replacement process.
(iv) The entity's process for addressing DWSL replacement completion or closeout, or both, with the customer and property owner, if the customer is not the property owner.
(10) The procedure for documenting refusal of the offer by the entity to replace a DWSL, including the entity's duty to:
(i) Provide the customer and property owner, if the customer is not the property owner, with a complete disclosure of the known health hazards from the continued use of a DWSL.
(ii) Inform the customer or property owner, if the customer is not the property owner, that refusal will require replacement of the DWSL, at the customer or property owner's expense, within 1 year from DWSL project commencement for the customer or property owner, if the customer is not the property owner, to be eligible for reimbursement.
(11) The industry-accepted construction practices the entity plans to use to replace both the entity's service lateral and the customer's service lateral.
(b) Communications, outreach and education. An entity's DWSL plan must outline the entity's communication, outreach and education steps to educate customers and property owners, if the customer is not the property owner, about the harmful effects of DWSLs and the entity's plan to address DWSL replacements.
(1) An entity's DWSL plan must describe, at a minimum, how the entity will:
(i) Prioritize DWSL replacement efforts to areas of the entity's collection system that have known wastewater overflows, basement backups or I&I issues.
(ii) Coordinate DWSL program efforts with State, county and local governments and agencies, community organizations and public works departments.
(iii) Ensure that relevant information will be provided to customers and property owners, if the customer is not the property owner, in plain language that can be understood by the general public; including a description of steps the consumer may take to identify DWSLs.
(iv) Provide customers or property owners, if the customer is not the property owner, with copies of as-built drawings or similar depictions that indicate the location of the customer-owned portion of the DWSL replacement, if available. An entity shall make a good faith effort to provide customers or property owners, if the customer is not the property owner, with other relevant documents associated with the DWSL replacement and appurtenances, including product manuals, specification sheets and manufacturer brochures.
(2) The entity's DWSL plan must include copies of all printed and broadcast material to be distributed under the entity's DWSL program.
(3) A Class A public utility or authority shall develop a DWSL section on its web site within 12 months of the Commission approval of its DWSL program. The web site must contain, at a minimum:
(i) Information regarding the reimbursement requirements and a secure online tool that provides customers, or property owners, if the customer is not the property owner, the ability to determine whether the customer or property owner may be eligible for a reimbursement.
(ii) An online tool that provides the ability to determine whether records reflect that the property has a DWSL.
(iii) A copy of any static map or graphic representation depicting DWSL project areas.
(iv) Information and resources relating to the health risks associated with DWSLs, the status of current efforts to replace DWSLs, and community meetings and advisory committees hosted by the entity.
§ 66.37. Periodic review of DWSL plan.
After initial Commission approval of an entity's DWSL plan, the entity shall update the DWSL plan for Commission review at least once every 5 years. The Commission will, to the extent possible, coordinate the review of the updated DWSL plan with the periodic review of an entity's LTIIP under § 121.7 (relating to periodic review of an LTIIP).
(a) The Commission's review will determine:
(1) If the entity has adhered to its DWSL plan.
(2) If changes to the entity's DWSL plan are necessary to maintain and improve the efficiency, safety, adequacy and reliability of its DWSL program.
(3) If the updated DWSL plan is consistent with the parameters of the entity's DWSL program.
(b) Service of the updated DWSL plan shall be made consistent with the requirements of § 66.34(a) (relating to petitioning the Commission for a DWSL program). The Commission will issue a Secretarial Letter establishing a schedule for the submission of comments and reply comments to aid in its periodic review. If the Commission determines that the entity's approved DWSL plan is no longer sufficient to ensure and maintain efficient, safe, adequate, reliable and reasonable service, the Commission will direct the entity to revise, update or resubmit its DWSL plan as appropriate.
§ 66.38. Pro forma tariff or tariff supplement requirements.
An entity's pro forma tariff or tariff supplement containing proposed changes necessary to implement the entity's DWSL program must address at a minimum:
(a) DWSL program annual cap. An entity's pro forma tariff or tariff supplement must include a cap on the number of DWSL replacements that can be completed annually.
(b) Service line demarcation.
(1) An entity's pro forma tariff or tariff supplement must include a definition for customer's service lateral for purposes of the entity's DWSL program that is consistent with § 66.32 (relating to definitions).
(2) An entity shall perfect its ownership of the portion of the service lateral located within the then-existing right-of-way in conformance with its Commission-approved tariff to ensure that the entity can obtain necessary permits to complete work within the public right-of-way in the future.
(c) Frequency of DWSL replacements. An entity's pro forma tariff or tariff supplement must include a restriction where the entity may not complete more than one DWSL replacement for a customer at a property that previously received a DWSL replacement for a length of time equal to the lesser of the average service life for DWSL replacements established in the entity's most recent base rate case or the average service life for Account No. 363—Services to Customers in the entity's most recent Service Life Study filed with the Commission under § 73.5 (relating to service life study report).
(d) Reimbursements. An entity shall provide a reimbursement to an eligible customer or property owner, if the customer is not the property owner, who completed a DWSL replacement within 1 year before or from DWSL project commencement.
(1) An entity's pro forma tariff or tariff supplement must include language explaining its reimbursement terms and conditions, which shall contain, at a minimum:
(i) An explanation of the entity's method for determining the amount of reimbursement, including any restrictions on reimbursements.
(ii) An explanation of the entity's reimbursement methods, including the forms of payment to be used by the entity to distribute reimbursements and the length of time by which the utility will issue a reimbursement for an eligible reimbursement request.
(iii) An explanation of the entity's method for determining eligibility, providing that:
(A) A customer or property owner, if the customer is not the property owner, located within a DWSL project area is eligible for a reimbursement of DWSL replacement expenses up to 125% of the average cost the entity would have incurred to perform a DWSL replacement of a similarly-sized customer service lateral, not to exceed the actual cost.
(B) A customer or property owner, if the customer is not the property owner, shall submit to the entity a detailed estimate and paid invoice from a licensed contractor where applicable, verifying the completion of a DWSL replacement. Instead of a detailed estimate, a verified statement from a licensed contractor attesting to completion of a DWSL replacement may be sufficient.
(2) Notwithstanding the DWSL program annual cap in subsection (a), an entity must provide a reimbursement to an eligible customer or property owner, if the customer is not the property owner, within the length of established under subsection (d)(1)(ii). If the reimbursement would cause the entity to exceed its annual cap under subsection (a), the entity must increase its current annual cap by the amount of the reimbursement and decrease its next annual cap by this amount.
(3) An entity shall make reasonable best efforts to assist a customer or property owner, if the customer is not the property owner, through the reimbursement process and, to the extent possible, make determinations in favor of the customer or property owner where the customer or property owner has provided reasonable evidence of a DWSL replacement to the entity.
(e) Warranty. An entity's pro forma tariff or tariff supplement must provide a warranty on DWSL replacement work performed by the entity or its contractor of a term of not less than 2 years. The entity's warranty provisions must:
(1) Define the start date of the 2-year term.
(2) Ensure that the materials and workmanship of the DWSL replacement and restoration of surfaces are covered.
(3) Define the maximum coverage amounts under the warranty.
(4) Explain any liability an entity will have for damages not covered by the warranty.
(5) Ensure entity access to the property to correct any deficiencies.
§ 66.39. DWSL program reports.
(a) An entity with an approved DWSL program shall file with the Commission a DWSL program report by March 1 of each year, in both print and electronic format, including all supporting spreadsheets. If an entity is implementing its DWSL program as part of a LTIIP, the entity shall include a DWSL program report as part of the entity's AAO plan under § 121.6 (relating to AAO plan filings).
(b) An entity's DWSL program report must identify the preceding year's activities, including:
(1) The number of DWSL replacements completed in the preceding year by wastewater system.
(2) The length of DWSL replacements completed, by pipe diameter and by replacement, rehabilitation or repair method, in each wastewater system.
(3) The pipe lengths, diameters and material types of DWSL replacements, broken down as follows:
(i) By wastewater system.
(ii) By DWSL replacement flow type (that is, gravity or pressurized).
(iii) By wastewater system type serving the properties that received the DWSL replacements (that is, sanitary sewer system or combined sewer system).
(4) The actual cost of each DWSL replacement, broken down as follows:
(i) By wastewater system.
(ii) By DWSL replacement flow type (that is, gravity or pressurized).
(iii) By wastewater system type serving the properties that received the DWSL replacements (that is, sanitary sewer system or combined sewer system).
(5) A calculation of the average marginal cost of I&I for each of the entity's wastewater systems, by individual sewershed, broken down by the following types:
(i) Wastewater systems where wastewater treatment is provided by the entity.
(ii) Wastewater systems where wastewater treatment is not provided by the entity.
(6) The entity's total annual DWSL replacement expenditures for the calendar year by customer class.
(7) The entity's total projected DWSL replacement expenditures for the following calendar year.
(8) The entity's outreach and coordination activities with other entities, the Department of Transportation, local governments and customers.
(9) The number of DWSL replacement refusals for the calendar year, including municipality and reason for refusal.
(10) The number of customers that had water or wastewater service, or both, terminated due to refusal to replace or to accept the entity's offer to replace a DWSL by wastewater system.
(11) Applicable wastewater system monitoring requirements established by the Department of Environmental Protection as part of a corrective action plan or consent order and agreement.
(12) The entity's compliance with the regulatory requirements established by the United States Environmental Protection Agency and the Department of Environmental Protection, including a description of any violations associated with wastewater overflows and any connection management plans.
(13) The entity's efforts to obtain grants, low and no interest loans and donations for DWSL replacements.
§ 66.40. Accounting and financial.
(a) An entity shall record DWSL costs in compliance with the National Association of Regulatory Utility Commissioners uniform system of accounts applicable to the entity. DWSL replacement costs recorded as assets shall be maintained under separate and distinct subaccounts.
(b) For subaccounting purposes an entity may defer income taxes related to no cost and low-cost sources of funding for DWSL replacements, including applicable income taxes on contributions-in-aid-of-construction or below-market rate loans, or both, DWSL program development, DWSL plan, DWSL program report, and reimbursement expenses to the extent that such costs are not recovered through the entity's existing base rates or DSIC.
§ 66.41. Unpermitted connections.
(a) As part of an entity's DWSL program, an entity shall disconnect any unpermitted connection to a customer's service lateral or property owner's service lateral, if the customer is not the property owner, in compliance with its tariff provisions.
(b) Notwithstanding subsection (a), where the continued use of any previously unpermitted connection to a customer's service lateral or property owner's service lateral, if the customer is not the property owner, is permissible under other applicable laws, including the entity's tariff, an entity may permit the continued use of these connections as long as the entity's permission and existence of additional connection(s) is documented.
§ 66.42. Competitive advantage.
An entity shall make a good faith effort to structure its DWSL program to prevent competition with optional insurance and warranty products that cover DWSL replacements.
[Pa.B. Doc. No. 22-1091. Filed for public inspection July 22, 2022, 9:00 a.m.]
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