OCTC Applauds Introduction of Open Competition Legislation

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The Ohio Chemistry Technology Council (OCTC) welcomed the introduction of House Bill 121 and Senate Bill 95 to allow local water authorities the ability to choose from multiple pipe materials for water infrastructure projects instead of relying on a single material choice.

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We applaud Representative Jay Edwards (R-94) and Senator Lou Terhar (R-8) for introducing legislation that would bring free-market and open competition to water infrastructure projects.

Last week, the Ohio Chemistry Technology Council (OCTC) welcomed the introduction of House Bill 121 and Senate Bill 95 to allow local water authorities the ability to choose from multiple pipe materials for water infrastructure projects instead of relying on a single material choice.

"We applaud Representative Jay Edwards (R-94) and Senator Lou Terhar (R-8) for introducing legislation that would bring free-market and open competition to water infrastructure projects," said Jennifer Klein, President, OCTC. "We urge the legislature to take up this legislation quickly so that it can be passed by both chambers and signed into law by Governor Kasich."

Ohio's water infrastructure is reaching its life expectancy and will need to be replaced, which the U.S. EPA has projected will cost more than $26.2 billion over the next two decades.

Currently, many municipalities are limited by outdated ordinances in their choices of what piping material can be purchased and used for water infrastructure projects. These ordinances are forcing municipalities to use a single material despite alternative materials being available that meet the same project standards. These limits result in higher costs for materials and could ultimately impact, even increase, water rates for users.

In a recent study from BCC Research, it was found that municipalities that had open competition in materials selection saw a savings between 32 and 35 percent in pipe costs alone. According to the same study, these exclusionary bidding practices have cost local taxpayers nearly $100,000 more per mile of pipe, without any additional water quality or safety benefits.

The new bill will remove anti-competitive barriers and give local governments the ability to receive project bids that include new and advanced drinking-water pipe materials. The legislation will ensure taxpayers receive the best deal for the safest and most advanced water delivery systems available.

About OCTC
Representing Ohio’s chemistry and related companies, the Ohio Chemistry Technology Council (OCTC) is the leading advocate for Ohio’s chemical technology industry. Learn more about Ohio's chemistry industry and OCTC by visiting OhioChemistry.org.

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Lara Kretler
@OhioChemistry
since: 08/2013
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