LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7064 NOTE PREPARED: Feb 21, 2022
BILL NUMBER: SB 269 BILL AMENDED: Feb 21, 2022
SUBJECT: Regulation of Dams.
FIRST AUTHOR: Sen. Donato BILL STATUS: 2nd Reading - 2nd House
FIRST SPONSOR: Rep. Manning
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) The bill provides that the laws regulating dams do not apply to a
structure that is a low hazard dam or significant hazard dam that meets only one of the following conditions:
(1) Has a drainage area above the dam of not more than one square mile.
(2) Does not exceed 20 feet in height.
(3) Does not impound a volume of more than 100 acre-feet of water.
The bill requires the Department of Natural Resources (DNR) to establish a classification system for dams
based on:
(1) the height of the structure and the volume of water impounded by the structure; and
(2) the force of the water and the likely consequences resulting from the uncontrolled release of its
contents due to a failure or misoperation of the structure.
The bill changes the standard to determine potential consequences for a failure from "may cause" to "likely
to cause". It provides that for a dam constructed after June 30, 2022, if the DNR determines that the property
owner's structure is a high hazard, significant hazard, or low hazard dam, the DNR shall provide the property
owner with a notice stating the classification of the dam that the property owner owns.
The bill requires that, notwithstanding an engineering inspection performed by the property owner or a
consultant of the property owner, the DNR provide the property owner notice at least five days before
performing an inspection.
The bill requires the property owner of a high hazard dam to prepare an emergency action plan and provide
a copy to the DNR and the emergency management agency. It provides that changes to the law do not affect
past inspections.
SB 269 1 Effective Date: July 1, 2022.
Explanation of State Expenditures: The bill could decrease the number of dam inspections performed by
the DNR, which would decrease state expenditures [See Explanation of State Revenues for more
information.] The DNR reports that the costs of completing dam inspections is 5 to 10 times higher than the
revenue generated from the dam inspection fee, so any decrease in state revenue would be accompanied by
a larger decrease in state expenditures. The bill increases DNR workload minimally, as it requires the DNR
to provide a property owner notice at least five days before performing an inspection and, for dams
constructed after June 30, 2022, to provide the property owner with a notice stating the classification of the
dam that the property owner owns.
Explanation of State Revenues: (Revised) The bill could lower the number of dams regulated by the DNR,
as it changes the conditions to be considered a dam under the DNR’s jurisdiction. It is unknown how many
dams would no longer be under the DNR’s jurisdiction.
Under current law, the DNR regulates 1,388 dams (278 high hazard; 321 significant hazard; and 789 low
hazard). The DNR does not inspect high hazard structures. These inspections are to be done by professionally
licensed engineers every 2 years, and the owner must submit a report on the inspection to the DNR. The DNR
is to inspect significant hazard dams every 3 years and charge $200 per inspection. The DNR is to inspect
low hazard structures every 5 years and charge $100 per inspection.
The bill requires dam classification to be based on the dam’s height and volume of water impounded in
addition to the force of the water in the case of a dam failure. It also changes the standard to determine
potential consequences for a dam failure from "may cause" to "likely to cause" which could reclassify some
structures. The extent that these reclassifications would happen is unknown.
Explanation of Local Expenditures: Workload could minimally increase for county emergency
management agencies to receive emergency action plans submitted by owners of high hazard dams.
Explanation of Local Revenues:
State Agencies Affected: Department of Natural Resources.
Local Agencies Affected: County emergency management agencies.
Information Sources: https://www.in.gov/dnr/water/dams-and-levees/
Department of Natural Resources.
Fiscal Analyst: Heather Puletz, 317-234-9484.
SB 269 2