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HCR 20

Designating the City of Gary water and wastewater systems for emergency intervention under the State Utility Accountability and Improvement Program.

2026 Regular Session Introduced by David Green

Designates Gary water and sewer for emergency state intervention to stabilize, fund repairs, and guide potential conservatorship or long-term takeover.

To House Energy and Public Works
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Bill Summary · HCR 20

Bill Summary: HCR 20 (2026) – Designating Gary water and wastewater systems for emergency intervention

Purpose and intent

  • Designates the City of Gary’s water system and wastewater system for emergency intervention under West Virginia’s State Utility Accountability and Improvement Program (SU-AIP), established in Article 24-2I of the Code.
  • Serves as a pilot/demonstration for the state intervention mechanisms, to protect public health and improve service quality in a community with significant economic challenges.

Key provisions and changes

  • Designation and trigger
    • Upon adoption by the Legislature and Governor’s approval, the Gary water and Gary wastewater systems are designated as subjects of emergency intervention under SU-AIP.
  • Emergency assessment and classification
    • The State Utility Management Corps must conduct an emergency assessment within seven days of designation.
    • Gary systems would be classified as Tier 4 utilities under §24-2I-4, with Gary retaining the right to appeal the classification.
  • Potential conservatorship and PSC involvement
    • If Tier 4, the assessing team will determine whether conservatorship is necessary.
    • If conservatorship is deemed necessary, a petition for conservatorship may be filed with the Public Service Commission (PSC) per §24-2I-6.
    • The PSC may continue ownership proceedings in Case No. 25-0611-W-DU or any successor case; conservatorship can persist through ownership decisions, including any transfer via mutual agreement process.
  • Applicability of SU-AIP provisions
    • All provisions of Article 24-2I apply, including:
    • Expedited timelines
    • Conservator powers
    • Improvement plan requirements
    • Priority for distressed utilities funding mechanisms
    • Priority Utility Docket procedures
    • Funding priorities
  • Financial support and funding
    • The Gary systems would receive first priority for grants and loans from the Distressed Utilities Account.
    • The Water Development Authority is authorized to advance up to $3 million from the Distressed Utilities Account for emergency repairs and improvements, subject to available funds.
  • Oversight and reporting
    • If a conservator is appointed, monthly reports must be filed with the Legislature (including the Speaker, Senate President, and Joint Committee on Technology and Infrastructure) as required by §24-2I-6(k).
  • Cooperation and transition planning
    • City of Gary officials and staff (mayor, city council, and all city employees) must cooperate with the intervention team, conservator, and PSC.
    • The intervention team must collaborate from the outset with the most likely long-term operator to facilitate an orderly transition after conservatorship ends (whether the current governing body, a neighboring utility, or another qualified entity).
  • Relationship to ownership proceedings
    • Designation does not preclude or delay PSC ownership proceedings (Case No. 25-0611-W-DU or successor). Ownership decisions may proceed concurrently with conservatorship, and any acquisition order would extend conservatorship until transfer occurs, per the mutual agreement process in §24-2I-6(o).
  • Evaluation reporting
    • The intervention team must prepare:
    • A preliminary evaluation report within six months
    • A comprehensive evaluation report within eighteen months
    • Reports must be submitted to the Legislature, Governor, PSC, Joint Committee on Technology and Infrastructure, and the public to satisfy the evaluation gate requirement of §24-2I-9a(c).

Who would be affected

  • Gary, West Virginia: Residents served by the Gary water and Gary wastewater systems would be directly affected through potential interventions, improvements, and rate/operational changes associated with the SU-AIP.
  • City of Gary government: Required to cooperate with the intervention team, conservator, and PSC; involved in any transition planning.
  • Distressed Utilities Account and Water Development Authority: Eligible for priority funding and up to $3 million in emergency advances to Gary.
  • Public Service Commission: Oversight of any conservatorship and potential ownership actions; ongoing case in Case No. 25-0611-W-DU may proceed alongside intervention.
  • General public in McDowell County: Potentially improved water quality, reliability, and compliance with health and safety standards.

Procedural and timeline aspects

  • Timeline requirements
    • Emergency assessment within 7 days of designation.
    • Preliminary and comprehensive evaluation reports due within 6 and 18 months, respectively.
  • Funding and reporting
    • Up to $3 million advance from the Distressed Utilities Account for emergency work.
    • Monthly reporting to Legislature if a conservator is appointed.
  • Legal and governance steps
    • Possible transition to conservatorship with powers defined under Article 24-2I.
    • Ownership proceedings may occur in parallel; transfer would follow the mutual agreement process if ordered.

Overall impact

HCR 20 seeks a structured, state-led intervention to stabilize and improve the Gary water and wastewater systems, prioritize funding for immediate repairs, and establish a formal pathway for potential longer-term operation by a qualified entity. It emphasizes rapid assessment, potential conservatorship, coordination with the PSC, accountability to the Legislature, and a clear plan for evaluating outcomes.

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

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