KentuckyHB 6512026 Regular SessionHouseWALLET

AN ACT relating to public water and wastewater systems and declaring an emergency.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Who qualifies and what projects get help

A public water or wastewater system must meet three or more distress criteria to get WWATERS funding. The program funds both capital and non-capital work, like planning, repairs, training, and fixing finances. Projects that expand a utility’s service area are not allowed. The goal is to stabilize troubled systems and protect customers.

Faster awards and tighter oversight

When the legislature funds the program, awards must be made within 60 days of that law taking effect. The board sends a yearly report by December 1, starting in 2024, with applicants, scores, and proposed grant or loan terms. Starting October 1, 2025, the authority files quarterly status reports on all awards. The board meets at least monthly to oversee the program.

How projects are scored and picked

The board uses an objective scorecard to rank each project. Factors include local income, user rates at or above 1% of income, missing audits, debt coverage under 1.1, water loss over 30%, and violations the project would fix. Projects that restore safe, legal service rank higher. Once an application is complete, the board scores it within 60 days and gives feedback within 14 days. Applicants must include a corrective action plan and a detailed budget; capital projects must add cost and timeline estimates. Regional projects can file one application. Applications may be shared with outside reviewers and are public when ready; the board can hire outside experts.

Tough rules for funded utilities

Funded utilities must follow board reporting and management rules. They must adopt best practices on compliance, debt coverage, rate reviews, cash reserves, billing, asset management, audits, water loss cuts, training, and emergency plans. If a recipient breaks rules, misuses money, transfers repayment duty, or fails to improve, the authority can demand immediate repayment with interest and require forfeiture. Funds must be used only for eligible projects.

Sponsors & Cosponsors

Sponsor

Josh Bray
Republican • House

Cosponsors

Jason Petrie
Republican • House

Roll Call Votes

All Roll Calls

Yes: 229 • No: 0

Senate vote • 3/31/2026

3rd reading, passed

Yes: 38 • No: 0

House vote • 3/31/2026

passed

Yes: 93 • No: 0

House vote • 3/3/2026