Local communities could feel some relief when it comes to wastewater rates thanks to new legislation passed by the Ohio House of Representatives. 

The Ohio House unanimously passed legislation Thursday that would allow for the refinancing of public water and wastewater projects.

The bill, brought to the State House by Representative Michael O'Brien and Shane Wilkin, would allow communities to refinance the loans given to them by the state.

Areas with existing Ohio Water Development Agency (OWDA) loans for water and wastewater infrastructure projects would be allowed to refinance at lower rates. 

This would allow cities to refinance loans, as many homeowners do with their mortgages. 

These loans can not be refinanced under existing law.

The city of Youngstown is currently using OWDA loans to pay for EPA mandated improvements at its wastewater treatment facility. 

City officials said the city wastewater system needs $76 million in upgrades, and the city was short by $15 million.

In November of 2019, it was announced Youngstown area wastewater bills would increase. 

A four percent increase in rates per year, over a period of five years, was proposed and is expected to be voted on by Youngstown council on Wednesday. 

Local government borrowers who refinance these loans could experience significant cost savings in terms of lower interest paid on existing future loans. 

The bill provides greater flexibility for OWDA to issue revenue bonds for an additional purpose, which is paying any refinancing costs of improvements to environmental infrastructure. 

In 2018, OWDA provided $943,669,918 in loans for 380 projects in 84 counties.

Loans ranged from less than $10,000 to more than $111 million per jurisdiction.

The Ohio Senate has not begun its version of the bill, but Rep. O'Brien's office expects it to happen sometime in 2020.