Ohio Senate Passes Ground Breaking Legislation for Water Utilities

The Ohio Senate recently passed Senate Bill 65 (S.B. 65), a bill creating tort immunity for existing and acquiring water suppliers. There are two main features of the Bill.

First, current water systems in compliance with all Safe Drinking Water Standards have immunity to tort liability. The bill provides that a water supplier that operates a public water system is not liable in a tort action that allegedly arises from the person's consumption of water supplied by the water supplier if all of the following apply: (1) during the period of time that the water supplier supplies water to the person, the water meets all applicable drinking water standards, (2) the water supplier has not been found to be in significant noncompliance with drinking water standards, and (3) the injury, death or loss of person or property is alleged to be caused by a substance for which drinking water standards have been established.

Second, the Bill provides that a water supplier that acquires ownership of an existing water system is not liable in damages in a civil action for injury, death, or loss to person or property (tort action) allegedly caused by the failure of the previous owner of the acquired water system to comply with drinking water standards. The acquiring water supplier must enter into a written agreement with the Ohio Environmental Protection Agency (OEPA) and bring the acquired water system into compliance with drinking water standards within a specified period of time.

S.B. 65, which applies to both municipal and investor-owned water utilities, is precedent setting legislation in the water utility industry and is expected to become a model for other states to follow. Consumers Ohio Water Company (COWC) and Ohio American Water Company worked together to pass this bill through legislation. Both the OEPA and the Public Utilities Commission of Ohio endorsed the Bill.

COWC President Walter J. "Buzz" Pishkur who presented proponent testimony before the Ohio Legislature said, "The Bill will protect consumers from increased water rates due to frivolous litigation. It will also enhance the potential for financially stable water utilities to take ownership of existing non-compliant water systems."

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