OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 534 Bill Analysis
135th General Assembly
Click here for H.B. 534’s Fiscal Note
Version: As Introduced
Primary Sponsor: Rep. Jarrells
Effective date:
Jeff Grim, Research Analyst
Chris Edwards, Attorney
Reid Fleeson, Attorney
SUMMARY
Lead Service Line Replacement Program
 Requires the Director of Environmental Protection to establish a Lead Service Line
Replacement Program to replace all lead service lines in Ohio.
 Requires the Director to adopt rules to implement the program, including rules
establishing all of the following:
 A requirement that the owner or operator of a public water system (system owner)
identify and oversee the removal of all lead service lines connected to the system;
 Requirements and procedures for the submission of lead service line replacement
plans by a system owner;
 Procedures that a system owner must follow, under certain circumstances, to
require a customer to pay all or part of the costs of replacing the customer’s line;
 Procedures for a system owner to financially contribute to replacing the lead service
line of a customer who is of low or moderate income.
 Requires the Director to oversee lead service line replacement plans and provide
customer service support to those participating in the program.
 Requires the Director to verify the accuracy of inventories submitted as part of lead
service line replacement plans.
 Requires the Director to establish and maintain a public database on the Environmental
Protection Agency’s (OEPA) website that public water systems and the public may use to
track lead service line replacement.
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 Requires the Director to establish a training and certification program for system
owners and contractors and plumbers hired by system owners regarding best practices
for lead service line replacement.
 Requires system owners to submit a lead service line replacement plan to OEPA, which
must include:
 Information regarding whether there are lead services lines connected to the public
water system; and
 A water distribution system material inventory of all service lines.
 Authorizes the Director to use the Drinking Water Assistance Fund to make loans to
public water systems to replace lead service lines.
Entry onto private or public property
 Authorizes a system owner or the owner’s authorized agent to enter onto private or
public property to replace lead service lines.
 Specifies that if consent to entry is refused by a property owner, a system owner may
enter to replace lead service lines so long as the property owner receives written notice
14 days prior to entry.
Prevailing wages
 Makes an owner or operator of a public water system undertaking a project to remove
or replace a lead service line pursuant to the Lead Service Line Replacement Program
subject to the Prevailing Wage Law.
Replacement, reimbursement, and cost recovery provisions
 Permits the owner or operator of a public water system to replace nonlead service lines
of other composition when ordered or mandated to do so.
 Permits the owner or operator of a public water system to reimburse a customer who
replaces lead service lines, or nonlead service lines of other composition that were
ordered or mandated to be replaced, on the customer’s property if the customer
submits a reimbursement request within 12 months after completion of the
replacement.
 Allows the owner or operator of a public water system to recover the following costs
through water service rates:
 Replacing lead service lines;
 Determining and verifying the composition of lead status unknown service lines;
 Replacing nonlead service lines of a composition that was mandated or ordered to
be replaced;
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 Reimbursing a customer who replaces lead service lines or nonlead service lines of a
composition that was mandated or ordered to be replaced on the customer’s
property.
 Provides that the nonlead service line replacement, customer reimbursement for
service line replacement, and cost recovery provisions do not grant authority to a water-
works company that is a public utility subject to Public Utilities Commission (PUCO)
regulation.
Designation
 Entitles the act as the “Lead Line Replacement Act.”
DETAILED ANALYSIS
Lead Service Line Replacement Program
Overview
The bill requires the Director of Environmental Protection to establish a Lead Service
Line Replacement Program. The purpose of the program is to replace all lead service lines in
Ohio within 15 years after the bill’s effective date. A lead service line is any public or private
service line that contains lead that is connected to a public water system, including any lead
pigtail or lead gooseneck. A public water system generally consists of a system that provides
water for human consumption that has at least 15 service connections or regularly serves at
least 25 individuals.
The primary mechanism for implementing lead service line replacement under the bill is
the lead service line replacement plan, which each public water system must establish and
implement. Plans must include various elements, including inventories of lead service lines.
Additionally, the bill permits public water systems that are not water-works companies
regulated by the Public Utilities Commission (PUCO) to replace certain nonlead service lines, to
reimburse customers for replacing lead and non-lead service lines on the customer’s property,
and to recover all lead and nonlead service line replacement and reimbursement costs from
customers.1
Director’s duties
In implementing the program, the Director must do the following:
 Oversee the implementation of lead service line replacement plans (explained below)
created and submitted by the owner or operator of a public water system (system
owner); and
1 R.C. 6109.01, 6109.09, 6109.091, 6109.092, and 6109.096 through 6109.0910.
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 Provide customer service support to those participating or attempting to participate in
the program.
 Collaborate with local authorities to identify grant programs that can provide resources
to public water systems to fund lead service line replacement;
 Post information on the Environmental Protection Agency’s (OEPA) website about
funding sources that are available to assist public water systems with lead service line
identification and replacement;
 Establish a publicly available database on OEPA’s website, using the data submitted in
lead service line replacement plans and any other available mapping information that
public water systems and the public may use to track and identify lead service line
replacement;
 Establish a training and certification program for system owners and for contractors and
plumbers hired by system owners regarding best practices for lead service line
replacement;
 Verify the accuracy of inventories submitted as part of lead service line replacement
plans; and
 Take any other actions that the Director determines necessary to administer and
implement the program.2
The Director also must, within one year of the bill’s effective date, adopt rules to
establish standards and procedures for administering and implementing the program. The rules
must establish:
 A requirement that the system owner identify and oversee the removal of all lead
service lines connected to the system within 15 years of the bill’s effective date;
 Requirements and procedures for submitting lead service line replacement plans;
 Procedures for prioritizing the order in which lead services lines are to be replaced;
 Procedures for identifying grant money that is available to public water systems for lead
service line replacement and notifying public water systems of the grants;
 Procedures that a public water system may follow, under certain circumstances, to
require a customer to pay all or part of the costs of the customer’s lead service line
replacement via a payment plan;
 The rules must take into account the customer’s ability to pay, and provide payment
exemptions for low or moderate income customers.
2 R.C. 6109.09 and 6109.092(D) through (F).
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 Procedures for a system owner to financially contribute to lead service line replacement
for low or moderate income customers;
 A requirement that the system owner must not disconnect a customer’s water service
due to inability to pay for lead service line replacement;
 Requirements and procedures that address the interplay between the bill’s cost
recovery provisions (see below) and the bill’s provisions governing assistance to low or
moderate income customers;
 A requirement that any person who removes a lead service line must remove the entire
line (the rules must allow for partial removal during public health or safety emergencies
with a 45-day grace period for full removal);
 Procedures for a system owner to provide a customer with educational resources
regarding plumbing flushing and use of water filters before, during, and after lead
service line replacement;
 Procedures customers should follow when flushing service lines and premises plumbing
of particulate lead;
 A requirement that the system owner provide water filters and replacement cartridges
to a customer before, during, and after lead service line replacement work;
 Procedures for determining and verifying the composition of lead status unknown
service lines;
 Requirements for the training and certification program referenced above under
“Director’s duties;”
 Requirements and procedures necessary for compliance with federal primary drinking
water regulations (40 Code of Federal Regulations 141); and
 Any other requirements and procedures necessary for implementing and administering
the program.3
Lead service line replacement plans
Within three years after the Director adopts rules, a system owner must submit a lead
service line replacement plan to OEPA. The system owner must update the plan annually. The
plan must include:
 Information regarding whether there are lead services lines connected to the public
water system;
 A water distribution system material inventory of all service lines, which identifies the
following:
3 R.C. 6109.091.
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 The number and location of lead service lines, service lines that are likely to have
lead, and service lines that contain unknown material;
 The number and location of lines (as described above) that were added to the
inventory after the prior year’s submission;
 The number and location of lines (as described above) that were replaced before
commencing the inventory.
 All lead, galvanized requiring replacement, non-lead, and lead status unknown
service lines.
 The number of identified lead service lines to be replaced over the 15 years of the
program, including a description and map showing the locations of the lead service lines
that will be replaced in each year and a description of how the lead service lines were
prioritized; and
 Any other information required by rule.
A system owner must include an initial inventory with the initial plan.4
Director approval or disapproval of plans
The Director must review, and approve or disapprove, all lead service line replacement
plans that are submitted by a system owner. If the Director determines that a plan fails to meet
the applicable requirements, the Director must issue an order requiring the system owner to
submit a corrected plan. Additionally, if the Director issues an order to submit a corrected plan,
the order must specify which part of the plan must be corrected. If the Director determines that
a corrected plan does not meet the applicable requirements, the Director must adopt a plan on
the system owner’s behalf.
A system owner must properly implement an approved or adopted lead service line
plan. A system owner is not eligible for a grant issued by any state agency for replacement
unless the owner is properly implementing an approved or adopted plan.5
In terms of civil penalties, if a system owner fails to properly implement a plan, the
system owner must pay a fine of not more than $25,000 for each violation (for deposit in the
state treasury to the credit of the Drinking Water Protection Fund). The Attorney General must
bring an action for the penalty against a violator when requested by the Director.
In terms of criminal penalties, if a system owner recklessly or knowingly fails to properly
implement a plan, that constitutes a violation of the Safe Drinking Water Law. If the violation
poses a significant threat to or causes significant harm to public health, the system owner is
guilty of a felony and is subject to a fine of up to $25,000 or imprisonment for not more than
four years, or both. If the violation does not pose a significant threat to or cause significant
4 R.C. 6109.092.
5 R.C. 6109.093.
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harm to public health, the system owner is guilty of a misdemeanor and is subject to a fine of
up to $10,000 or imprisonment for not more than four years, or both. Each day of a violation
constitutes a separate offense.6
Entry onto private or public property
A system owner, or their authorized representative may enter on private or public
property to replace lead service lines. If a property owner fails to give consent to entry, the
system owner may enter without the consent of the property owner, so long as written notice
is given at least 14 days prior to entering the property.7
Drinking Water Assistance Fund
The Director may use the Drinking Water Assistance Fund – specifically, the water
supply revolving loan account – to make loans to public water systems to fund the development
of lead service line replacement plans and the replacement of lead service lines. Currently,
loans can be made from the account only for improvements to community water systems and
nonprofit noncommunity public water systems.8
Prevailing wages
The bill makes an owner or operator of a public water system undertaking a project to
remove or replace a lead service line pursuant to the Lead Service Line Replacement Program
subject to the Prevailing Wage Law.9 Thus, the owner or operator must ensure workers on a
lead service line replacement project are paid the “prevailing rate of wages” if the project’s
estimated cost exceeds threshold amounts. For construction and reconstruction related to
roads and bridges (“horizontal” improvements), the thresholds are adjusted biennially by the
Director of Commerce. The current thresholds for horizontal projects are $98,974 for new
construction and $29,653 for other construction. The threshold is $250,000 for all other new
construction (“vertical” improvements) and $75,000 for reconstruction.10
Replacement, reimbursement, and cost recovery provisions