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SD 1281

An Act relative to funding water infrastructure and addressing economic target areas

194th Legislature (2025-2026) Introduced by Brendan Crighton

Creates the Commonwealth Water Infrastructure Trust Fund to finance local water projects and an economic-target-area initiative, funded by new permit fees.

House concurred
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Bill Summary · SD 1281

Summary: Bill SD 1281 — An Act relative to funding water infrastructure and addressing economic target areas

Overview

Bill SD 1281, introduced February 27, 2025, seeks to create a dedicated Commonwealth Water Infrastructure Trust Fund to fund water infrastructure projects and advance an economic-target-area initiative. The bill was presented in the Senate (S. No. 559) by Sen. Brendan P. Crighton and has advanced to House concurrence. It would establish a new funding mechanism, allocate a portion of revenues to both local projects and statewide programs, and provide targeted support to communities with designated economic target areas.

Purpose and intent

  • Establish a dedicated funding stream to address Massachusetts’ water infrastructure needs.
  • Support economic development by directing resources to municipalities with economic target areas.
  • Coordinate with existing water-related funding entities (e.g., Massachusetts Clean Water Trust) to leverage financial assistance for infrastructure projects.
  • Create a transparent reporting framework for how funds are spent at the local level.

Key provisions

1) Commonwealth Water Infrastructure Trust Fund (new Chapter 29, section 2WWWW)

  • The fund is created with the Department of Revenue (DOR) as trustee.
  • Sources of funds:
    • Fees collected under this act.
    • Interest earned on fund assets.
  • Expenditures:
    • Funds may be expended by the commissioner of revenue without additional appropriation.
  • Fiscal treatment:
    • Any remaining funds at year-end do not revert to the General Fund.

Allocation (annually, from the fund):

  • 50% to cities/towns, distributed proportionately based on each city/town’s share of the prior calendar year’s fee collections for the purpose of water infrastructure improvements.
  • 40% to the Massachusetts Clean Water Trust (chapter 29C) for financial assistance to water infrastructure projects or other authorized purposes.
  • 5% to the Department of Environmental Protection (DEP) to implement an economic target area water infrastructure initiative (per section 3).
  • 5% to the Department of Revenue for administration and enforcement of the act.

2) Fee per permit-to-connect (amendment to Chapter 40, §22F)

  • Adds new connection fees charged by municipalities:
    • $250 additional for a residential water/sewer connection.
    • $1,000 additional for a commercial or industrial connection.
  • These fees are to be deposited into the Commonwealth Water Infrastructure Fund (in addition to any existing municipal charges).

3) Economic target area initiative

  • DEP, in consultation with the Executive Office of Housing and Economic Development (EOHED), must create an initiative to work with municipalities that have economic target areas.
  • Goals include direct outreach and assistance with developing strategies to upgrade water infrastructure.
  • Defines “economic target area” in line with Mass. Gen. Laws ch. 23A, 3G.

Who/what is affected

  • Local governments (cities and towns): receive a 50% share of fund distributions for local water infrastructure improvements; must file annual reports detailing projects and spend by December 31 each year.
  • Residents and businesses: indirectly affected through improved water infrastructure and potential impact from new connection fees.
  • Massachusetts Clean Water Trust: funded with 40% of the proceeds for infrastructure financing.
  • DEP and DOR: administration of the fund, implementation of the economics-target-area program, and enforcement/administration duties.

Procedural and timeline aspects

  • Annual reporting: municipalities must report by December 31 on water infrastructure projects funded or planned with Commonwealth Water Infrastructure Trust Fund dollars.
  • Ongoing administration: fund proceeds are expended by the DOR commissioner without additional approps; balances carry over year to year.
  • Effective date: not specified in the provided text; the bill outlines ongoing funding and administration provisions subject to future enactment and implementation steps.

Notes

  • The bill references a similar matter previously filed (Senate No. 453 of 2023-2024), indicating continuity of the policy concept.
  • The “House concurred” status indicates alignment between chambers at the time of these actions.

Compiled from official sources — confirm details with the bill’s official record.

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