17414_Authority_April_2024

municipalauthorities.org | 25 before signing an asset purchase agreement. The public hearings should address the proposed acquisition, describe the potential rate impacts, provide the opportunity for public comment, and be held within the municipal boundaries of the selling utility. • Rate Impact Notice. The acquiring utility and the selling utility will be required to verify the potential rate impacts the transaction may have on the selling utility’s customers and the selling utility will have to publicly communicate the implication on rates through notices issued to existing customers. • Default Weights for Appraisals. Establishing default will help to eliminate utility valuation experts being able to artificially inflate or deflate the results of any appraisals. This will also help to level the competitive bidding landscape of acquiring utilities by standardizing the process. • Reasonableness Review Ratio. The Commission will publish an annual “Reasonableness Review Ratio” (RRR) to help guide the Commission when it reviews and makes a final decision on the reasonableness of transaction prices under Section 1329 applications. The Commission will publish the proposed reforms in the Pennsylvania Bulletin which will commence a 30- day public comment period. Proposed legislation (Co-sponsor memos) Representative Stephanie Scialabba (Butler) is introducing legislation that would establish a cybersecurity task force to assist institutions and facilities with cybersecurity needs and requiring the implementation of security safeguards. The task force would be composed of staff from the Pennsylvania Emergency Management Agency, the Pennsylvania State Police, the Public Utility Commission and other critical stakeholders. The proposed task force would have two functions. First, it would be charged with identifying potential cyber threats to critical institutions and facilities in the Commonwealth and helping to develop effective responses, including the recovery of operations. Second, the legislation would require utilities, schools and local governments to establish appropriate administrative, physical and technical safeguards to help prevent attacks, promote resiliency and improve response time and effectiveness. Senator Nick Miller (Lehigh, Northampton) plans to introduce legislation providing a state-level investment to supplement and expand upon the State and Local Cybersecurity Grants Program ($5.2 million) as passed for states in the IIJA and announced through FEMA. This legislation would provide $10 million in state supplemental funding, mirroring and expanding on the recent federal programs. The intent is to help further reduce possible vulnerabilities in their processes and ramp up technological resources. Senator Robert Matzie (Beaver) plans to introduce legislation to re-authorize Pennsylvania’s One Call System (which is set to expire at the end of this year) for an additional seven years and will contain needed updates to the law. Legislation SB 745 (Senator Kristin Phillips-Hill, York) passed the Senate on February 6 th . The legislation mandates that any acquisition of computer hardware by the state must adhere to the National Institute of Standards and Technology (NIST) guidelines for computer security. NIST’s comprehensive approach includes standards, guidelines, and best practices to effectively manage cybersecurity-related risks, aligning with the practices adopted by the U.S. Government in all its IT procurements. The bill now awaits consideration in the House of Representatives. PA 2024-2025 State Budget On February 6 th Governor Shapiro unveiled his proposed 2024- 25 budget. Governor Shapiro is proposing a $48.34 billion budget for FY 2024-25. That is an increase in State appropriations of $3.7 billion, or 8.4%, over the prior fiscal year. The budget proposal includes over $10 million in new funding for the Department of Environmental Protection to increase permitting staff in the regional offices and modernize computer systems. A total of 40 new positions are proposed for the permit modernization initiative. The Department will also receive $1.5 million for new capabilities to test for PFAS contamination and fund two new positions for testing for PFAS in waterways. The House and Senate Appropriations Committees held hearings on the governor’s budget proposal from February 20 th through March 7 th . S