Introduced Version
SENATE BILL No. 272
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-1.2; IC 8-1-1.9-5; IC 20-32-4.
Synopsis: Wastewater infrastructure. Provides that the Indiana finance
authority (authority) shall serve as the executive branch coordinator for
funding allocated or made available to the state or local communities
from federal, state, and other sources for purposes related to water,
wastewater, or storm water infrastructure and systems. Sets forth the
duties of the authority with respect to this role. Provides that as a
condition for receiving a loan or other financial assistance through the
wastewater revolving loan program or the drinking water revolving
loan program, a participant must: (1) demonstrate to the authority that
it has developed an asset management program; and (2) submit the
asset management program to the authority not later than the time of
submission of the participant's preliminary engineering report for any
project for which the loan or other financial assistance will be
provided. (Current law provides that a participant must demonstrate
that it has developed or is in the process of developing an asset
management program.) Specifies that the authority shall coordinate the
executive branch activities related to the state's water and wastewater
programs. (Current law provides that the authority shall serve such a
role with respect to the state's water programs.) Establishes a water and
wastewater infrastructure research and extension program (program)
to provide data collection and information, training, and technical
assistance concerning: (1) water infrastructure; (2) wastewater
infrastructure; and (3) storm water infrastructure; in Indiana. Provides
that the authority shall: (1) contract with a state supported college or
university in Indiana to provide the program; and (2) financially
support the program from funds appropriated to the authority. Provides
(Continued next page)
Effective: Upon passage; July 1, 2022.
Koch
January 10, 2022, read first time and referred to Committee on Utilities.
2022 IN 272—LS 7160/DI 101 Digest Continued
that the program may be housed within, or share staff with, the existing
research and highway extension program at Purdue University.
Provides that the program shall provide the following services and
programs to, or for the benefit of, utilities providing water, wastewater,
or storm water service in Indiana: (1) Assisting utilities in the
development of asset management programs. (2) Serving as a central
repository for data concerning infrastructure used to provide water,
wastewater, or storm water service in Indiana. (3) Providing training
and technical assistance to utilities and Indiana's water, wastewater,
and storm water utility industry workforces. Requires the authority to
make, not later than July 1, 2023, all: (1) utility asset management
programs; and (2) information concerning utility asset lifecycle
management costs; submitted to or reviewed by the authority available
on an Internet web site maintained by the authority or the program.
Requires that in carrying out all information gathering and reporting
duties under the bill's provisions, the authority and the program shall
use any data the authority or the program acquires in a manner that: (1)
protects the confidential information of individual utilities and
customers; and (2) is consistent with applicable statutory exclusions
from disclosure under the state's public records act. Provides that as a
condition for receiving a loan, grant, or other financial assistance
through the water infrastructure assistance program or the water
infrastructure grant program, a participant must do the following: (1)
Submit the participant's required asset management program to the
authority not later than the time of submission of the participant's
preliminary engineering report for any project for which the loan, grant,
or other financial assistance will be provided. (Current law does not
specify when the asset management program must be submitted.) (2)
Submit to the authority information on the estimated and actual life
cycle management costs over the useful life of the asset financed. (3)
In the case of a participant that is not under the jurisdiction of the
Indiana utility regulatory commission (IURC), regularly report to all:
(A) customers; (B) counties; and (C) municipalities; within the
participant's service territory information concerning the participant's
asset management program. Provides that the authority's project
prioritization system for awarding assistance from the water
infrastructure assistance fund and the water infrastructure grant fund
must include as a variable the effect of a project on the environment.
Requires the state board of education (state board) to approve, for
purposes of the state's career and technical education graduation
pathway, a utility career cluster that allows students to acquire
knowledge and skills related to employment in the electric, natural gas,
communications, water, and wastewater utility industries. Provides for
the following with respect to a wastewater utility that is not subject to
the jurisdiction of the IURC for the approval of rates and charges and
that has been issued one or more enforcement orders (orders) by the
department of environmental management (department) after June 30,
2022: (1) For the first order, the utility is subject to a summary review
of its: (A) rate and charges; and (B) asset management program; by the
IURC, in accordance with procedures determined by the IURC. (2) For
a second order that is issued within two years of the first order, the
utility is subject to rate regulation, following two base rate cases, by the
IURC for a minimum period of five years. (3) For any order issued
during the required rate regulation period, the IURC may, in
consultation with the department, initiate a receivership proceeding
with respect to the utility. Requires the governor's workforce cabinet
(cabinet), in consultation with the state board, the department of
education, and the department of workforce development, to create
course sequences for the utility career cluster. Requires the cabinet to:
(Continued next page)
2022 IN 272—LS 7160/DI 1012022 IN 272—LS 7160/DI 101 Digest Continued
(1) collect data each year regarding approved career clusters and course
sequences to inform decision making around approving, creating, and
amending current and future career clusters and course sequence
requirements; and (2) prepare and submit, not later than November 1
of each year, a report to the legislative council regarding the collected
data.
2022 IN 272—LS 7160/DI 1012022 IN 272—LS 7160/DI 101 Introduced
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE BILL No. 272
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 5-1.2-4-1, AS AMENDED BY P.L.154-2021,
2 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2022]: Sec. 1. (a) The authority is granted all powers
4 necessary or appropriate to carry out and effectuate its public and
5 corporate purposes under the referenced statutes, including the
6 following:
7 (1) Have perpetual succession as a body politic and corporate and
8 an independent instrumentality exercising essential public
9 functions.
10 (2) Without complying with IC 4-22-2, adopt, amend, and repeal
11 bylaws, rules, guidelines, and policies not inconsistent with the
12 referenced statutes, and necessary or convenient to regulate its
13 affairs and to carry into effect the powers, duties, and purposes of
14 the authority and conduct its business under the referenced
15 statutes. These bylaws, rules, guidelines, and policies must be
2022 IN 272—LS 7160/DI 101 2
1 made by a resolution of the authority introduced at one (1)
2 meeting and approved at a subsequent meeting of the authority.
3 (3) Sue and be sued in its own name.
4 (4) Have an official seal and alter it at will.
5 (5) Maintain an office or offices at a place or places within the
6 state as it may designate.
7 (6) Make, execute, and enforce contracts and all other instruments
8 necessary, convenient, or desirable for the purposes of the
9 authority or pertaining to:
10 (A) a purchase, acquisition, or sale of securities or other
11 investments; or
12 (B) the performance of the authority's duties and execution of
13 any of the authority's powers under the referenced statutes.
14 (7) Employ architects, engineers, attorneys, space planners,
15 construction managers, inspectors, accountants, agriculture
16 experts, silviculture experts, aquaculture experts, health care
17 experts, and financial experts, and any other advisers, consultants,
18 and agents as may be necessary in its judgment and to fix their
19 compensation and contract for the creation of plans and
20 specifications for a facility.
21 (8) Procure insurance against any loss in connection with its
22 property and other assets, including loans and loan notes in
23 amounts and from insurers as it may consider advisable.
24 (9) Borrow money, make guaranties, issue bonds, and otherwise
25 incur indebtedness for any of the authority's purposes, and issue
26 debentures, notes, or other evidence of indebtedness, whether
27 secured or unsecured, to any person, as provided by the
28 referenced statutes. Notwithstanding any other law, the:
29 (A) issuance by the authority of any indebtedness that
30 establishes a procedure for the authority or a person acting on
31 behalf of the authority to certify to the general assembly the
32 amount needed to restore a debt service reserve fund or
33 another fund to required levels; or
34 (B) execution by the authority of any other agreement that
35 creates a moral obligation of the state to pay all or part of any
36 indebtedness issued by the authority;
37 is subject to review by the budget committee and approval by the
38 budget director.
39 (10) Procure insurance or guaranties from any public or private
40 entities, including any department, agency, or instrumentality of
41 the United States, to guarantee, insure, coinsure, and reinsure
42 against political and commercial risk of loss, and any other
2022 IN 272—LS 7160/DI 101 3
1 insurance the authority considers necessary, including insurance
2 to secure payment:
3 (A) on a loan, lease, or purchase payment owed by a
4 participating provider to the authority; and
5 (B) of any bonds issued by the authority, including the power
6 to pay premiums on any insurance, reinsurance, or guarantee.
7 (11) Purchase, receive, take by grant, gift, devise, bequest, or
8 otherwise, and accept, from any source, aid or contributions of
9 money, property, labor, or other things of value to be held, used,
10 and applied to carry out the purposes of the referenced statutes,
11 subject to the conditions upon which the grants or contributions
12 are made, including but not limited to gifts or grants from any
13 department, agency, or instrumentality of the United States, and
14 lease (as lessee or lessor) or otherwise acquire, own, hold,
15 improve, employ, use, or otherwise deal in and with real or
16 personal property or any interest in real or personal property,
17 wherever situated, for any purpose consistent with the referenced
18 statutes.
19 (12) Enter into agreements with any department, agency, or
20 instrumentality of the United States or this state and with lenders
21 and enter into loan agreements, sales contracts, financial
22 assistance agreements, and leases with contracting parties,
23 including participants for any purpose allowed under IC 5-1.2-10,
24 IC 5-1.2-11, IC 5-1.2-14, or IC 5-1.2-14.5, borrowers, lenders,
25 developers, or users, for the purpose of planning, regulating, and
26 providing for the financing and refinancing of any economic
27 development project, for any purpose allowed under IC 5-1.2-10,
28 IC 5-1.2-11, IC 5-1.2-14, or IC 5-1.2-14.5, or intrastate and
29 interstate sales, transactions and business activities or
30 international exports, and distribute data and information
31 concerning the encouragement and improvement of economic
32 development projects, intrastate and interstate sales, transactions
33 and business activities, international exports, and other types of
34 employment in the state undertaken with the assistance of the
35 authority under this article.
36 (13) Enter into contracts or agreements with lenders and lessors
37 for the servicing and processing of loans and leases pursuant to
38 the referenced statutes.
39 (14) Provide technical assistance to local public bodies and to for
40 profit and nonprofit entities in the development or operation of
41 economic development projects.
42 (15) To the extent allowed under its contract with the holders of
2022 IN 272—LS 7160/DI 101 4
1 the bonds of the authority, consent to any modification with
2 respect to the rate of interest, time, and payment of any
3 installment of principal or interest, or any other term of any
4 contract, loan, loan note, loan note commitment, contract, lease,
5 or agreement of any kind to which the authority is a party.
6 (16) To the extent allowed under its contract with the holders of
7 bonds of the authority, enter into contracts with any lender
8 containing provisions enabling it to reduce the rental or carrying
9 charges to persons unable to pay the regular schedule of charges
10 when, by reason of other income or payment by any department,
11 agency, or instrumentality of the United States or of this state, the
12 reduction can be made without jeopardizing the economic
13 stability of the economic development project being financed.
14 (17) Notwithstanding IC 5-13, but subject to the requirements of
15 any trust agreement entered into by the authority, invest:
16 (A) the authority's money, funds, and accounts;
17 (B) any money, funds, and accounts in the authority's custody;
18 and
19 (C) proceeds of bonds or notes;
20 in the manner provided by an investment policy established by
21 resolution of the authority.
22 (18) Fix and revise periodically, and charge and collect, fees and
23 charges as the authority determines to be reasonable in connection
24 with:
25 (A) the authority's loans, guarantees, advances, insurance,
26 commitments, and servicing; and
27 (B) the use of the authority's services or facilities.
28 (19) Cooperate and exchange services, personnel, and information
29 with any federal, state, or local government agency, or
30 instrumentality of the United States or this state.
31 (20) Sell, at public or private sale, with or without public bidding,
32 any loan or other obligation held by the authority.
33 (21) Enter into agreements concerning, and acquire, hold, and
34 dispose of by any lawful means, land or interests in land, building
35 improvements, structures, personal property, franchises, patents,
36 accounts receivable, loans, assignments, guarantees, and
37 insurance needed for the purposes of the referenced statutes.
38 (22) Purchase, lease as lessee, construct, remodel, rebuild,
39 enlarge, or substantially improve economic development projects,
40 including land, machinery, equipment, or any combination of
41 these.
42 (23) Lease economic development projects to users or developers,
2022 IN 272—LS 7160/DI 101 5
1 with or without an option to purchase.
2 (24) Sell economic development projects to users or developers,
3 for consideration to be paid in installments or otherwise.
4 (25) Make direct loans from the proceeds of the bonds to users or
5 developers for:
6 (A) the cost of acquisition, construction, or installation of
7 economic development projects, including land, machinery,
8 equipment, or any combination of these; or
9 (B) eligible expenditures for an educational facility project;
10 with the loans to be secured by the pledge of one (1) or more
11 bonds, notes, warrants, or other secured or unsecured debt
12 obligations of the users or developers.
13 (26) Lend or deposit the proceeds of bonds to or with a lender for
14 the purpose of furnishing funds to the lender to be used for
15 making a loan to a developer or user for the financing of
16 economic development projects under this article.
17 (27) Enter into agreements with users or developers to allow the
18 users or developers, directly or as agents for the authority, to
19 wholly or partially construct economic development projects to be
20 leased from or to be acquired by the authority.
21 (28) Establish reserves from the proceeds of the sale of bonds,
22 other funds, or both, in the amount determined to be necessary by
23 the authority to secure the payment of the principal of and interest
24 on the bonds.
25 (29) Adopt rules and guidelines governing its activities authorized
26 under the referenced statutes.
27 (30) Purchase, discount, sell, and negotiate, with or without
28 guaranty, notes and other evidence of indebtedness.
29 (31) Sell and guarantee securities.
30 (32) Procure letters of credit or other credit facilities or
31 agreements from any national or state banking association or
32 other entity authorized to issue a letter of credit or other credit
33 facilities or agreements to secure the payment of any bonds issued
34 by the authority or to secure the payment of any loan, lease, or
35 purchase payment owed by a participating provider to the
36 authority, including the power to pay the cost of obtaining such
37 letter of credit or other credit facilities or agreements.
38 (33) Accept gifts, grants, or loans from, and enter into contracts
39 or other transactions with, any federal or state agency,
40 municipality, private organization, or other source.
41 (34) Sell, convey, mortgage, pledge, assign, lease, exchange,
42 transfer, or otherwise dispose of property or any interest in
2022 IN 272—LS 7160/DI 101 6
1 property, wherever the property is located.
2 (35) Reimburse from bond proceeds expenditures for economic
3 development projects under this article.
4 (36) Acquire, hold, use, and dispose of the authority's income,
5 revenues, funds, and money.
6 (37) Purchase, acquire, or hold debt securities or other
7 investments for the authority's own account at prices and in a
8 manner the authority considers advisable, and sell or otherwise
9 dispose of those securities or investments at prices without
10 relation to cost and in a manner the authority considers advisable.
11 (38) Fix and establish terms and provisions with respect to:
12 (A) a purchase of securities by the authority, including dates
13 and maturities of the securities;
14 (B) redemption or payment before maturity; and
15 (C) any other matters that in connection with the purchase are
16 necessary, desirable, or advisable in the judgment of the
17 authority.
18 (39) To the extent allowed under the authority's contracts with the
19 holders of bonds or notes, amend, modify, and supplement any
20 provision or term of:
21 (A) a bond, a note, or any other obligation of the authority; or
22 (B) any agreement or contract of any kind to which the
23 authority is a party.
24 (40) Subject to the authority's investment policy, do any act and
25 enter into any agreement pertaining to a swap agreement (as
26 defined in IC 8-9.5-9-4) related to the purposes of the referenced
27 statutes in accordance with IC 8-9.5-9-5 and IC 8-9.5-9-7,
28 whether the action is incidental to the issuance, carrying, or
29 securing of bonds or otherwise.
30 (41) Do any act necessary or convenient to the exercise of the
31 powers granted by the referenced statutes, or reasonably implied
32 from those statutes, including compliance with requirements of
33 federal law imposed from time to time for the issuance of bonds.
34 (42) Contract and collaborate with a state supported college
35 or university to provide the research and extension program
36 established by IC 5-1.2-11.5-10.
37 (43) Serve as the executive branch coordinator for funding
38 allocated or made available to the state or local communities
39 from federal, state, and other sources for purposes related to
40 water, wastewater, or storm water infrastructure and
41 systems, as set forth in IC 5-1.2-11.5-9(a)(2).
42 (b) The authority's powers under this article shall be interpreted
2022 IN 272—LS 7160/DI 101 7
1 broadly to effectuate the purposes of this article and may not be
2 construed as a limitation of powers. The omission of a power from the
3 list in subsection (a) does not imply that the authority lacks that power.
4 The authority may exercise any power that is not listed in subsection
5 (a) but is consistent with the powers listed in subsection (a) to the
6 extent that the power is not expressly denied by the Constitution of the
7 State of Indiana or by another statute.
8 (c) This chapter does not authorize the financing of economic
9 development projects for a developer unless any written agreement that
10 may exist between the developer and the user at the time of the bond
11 resolution is fully disclosed to and approved by the authority.
12 (d) The authority shall work with and assist the Indiana housing and
13 community development authority created by IC 5-20-1-3, the ports of
14 Indiana created under IC 8-10-1-3, and the state fair commission
15 established by IC 15-13-2-1 in the issuance of bonds, notes, or other
16 indebtedness. The Indiana housing and community development
17 authority, the ports of Indiana, and the state fair commission shall work
18 with and cooperate with the authority in connection with the issuance
19 of bonds, notes, or other indebtedness.
20 SECTION 2. IC 5-1.2-10-16, AS ADDED BY P.L.189-2018,
21 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2022]: Sec. 16. (a) A loan or other financial assistance from
23 either fund must be accompanied by the following:
24 (1) All papers and opinions required by the authority.
25 (2) Unless otherwise provided by the guidelines of the authority,
26 the following:
27 (A) An approving opinion of nationally recognized bond
28 counsel.
29 (B) A certification and guarantee of signatures.
30 (C) A certification that, as of the date of the loan or other
31 financial assistance:
32 (i) no litigation is pending challenging the validity of or
33 entry into the loan or other financial assistance or any
34 security for the loan or other financial assistance; or
35 (ii) if litigation is pending, the litigation will not have a
36 material adverse effect on the validity of the loan or other
37 financial assistance or any security for the loan or other
38 financial assistance.
39 (D) If litigation is pending, as an alternative to the certification
40 described in clause (C), an opinion of legal counsel that the
41 litigation will not have a material adverse effect on the validity
42 of the loan or other financial assistance.
2022 IN 272—LS 7160/DI 101 8
1 (E) Documentation demonstrating that the participant has the
2 financial, managerial, technical, and legal capability of
3 operating and maintaining its water or wastewater collection
4 and treatment system.
5 (b) Each participant:
6 (1) to which, or
7 (2) for the benefit of which,
8 a loan would be made or the other financial assistance would be
9 provided under this chapter must:
10 (1) demonstrate that it has developed or is in the process of
11 developing an asset management program as defined in the
12 guidelines of the authority; and
13 (2) submit the asset management program to the authority not
14 later than the time of submission of the participant's
15 preliminary engineering report for any project for which the
16 loan or other financial assistance would be provided.
17 SECTION 3. IC 5-1.2-11.5-9, AS ADDED BY P.L.15-2019,
18 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2022]: Sec. 9. (a) The authority shall coordinate the executive
20 branch activities related to the state's water and wastewater programs.
21 The authority's duties under this section include the following:
22 (1) Serving as the executive branch coordinator of water and
23 wastewater related programs and activities of the state.
24 (2) Serving as the executive branch coordinator for funding
25 allocated or made available to the state or local communities
26 from federal, state, and other sources for purposes related to
27 water, wastewater, or storm water infrastructure and
28 systems. The authority's duties under this subdivision include:
29 (A) communicating with utilities, local communities, and
30 state agencies about the availability of funds;
31 (B) vetting proposals for, and potential recipients of,
32 available funds; and
33 (C) directing available funds to and among utilities, local
34 communities, and state agencies;
35 as appropriate.
36 (2) (3) Advising state agencies and political subdivisions, and
37 coordinating their activities, regarding best practices concerning
38 the best use of funding streams and incentives in the manner most
39 likely to achieve comprehensive water and wastewater related
40 data collection and regional collaboration in water and wastewater
41 service.
42 (3) (4) Promoting and coordinating the collection and sharing of
2022 IN 272—LS 7160/DI 101 9
1 information throughout Indiana concerning water and wastewater
2 service.
3 (4) (5) Providing leadership regarding investment, affordability,
4 supply, and economic development related to water and
5 wastewater service.
6 (b) All instrumentalities, agencies, authorities, boards, and
7 commissions of the state, including the management performance hub
8 established by IC 4-3-26, shall cooperate with and provide assistance
9 to the authority in carrying out the authority's duties under this section.
10 (c) In carrying out the authority's duties under subsection (a)(3)
11 and (a)(4), the authority shall consult and collaborate with, and
12 draw on the technical expertise of, the water and wastewater
13 infrastructure research and extension program established by
14 section 10 of this chapter, as appropriate.
15 (c) (d) In carrying out the authority's duties under this section, the
16 authority shall use any data the authority acquires in a manner that:
17 (1) protects the confidential information of individual water
18 utilities, wastewater utilities, and their customers; and
19 (2) is consistent with IC 5-14-3-4.
20 SECTION 4. IC 5-1.2-11.5-10 IS ADDED TO THE INDIANA
21 CODE AS A NEW SECTION TO READ AS FOLLOWS
22 [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) As used in this section,
23 "program" refers to the water and wastewater infrastructure
24 research and extension program established by subsection (c).
25 (b) As used in this section, "utility" means any of the following
26 that provides water, wastewater, or storm water service in
27 Indiana:
28 (1) A public utility (as defined in IC 8-1-2-1(a)).
29 (2) A municipally owned utility (as defined in IC 8-1-2-1(h)).
30 (3) A not-for-profit utility (as defined in IC 8-1-2-125(a)).
31 (4) A cooperatively owned corporation.
32 (5) A conservancy district established under IC 14-33.
33 (6) A regional sewer district established under IC 13-26.
34 (7) A department of storm water management under
35 IC 8-1.5-5.
36 (c) There is established a water and wastewater infrastructure
37 research and extension program to provide data collection and
38 information, training, and technical assistance concerning:
39 (1) water infrastructure;
40 (2) wastewater infrastructure; and
41 (3) storm water infrastructure;
42 in Indiana, including assistance with infrastructure and system
2022 IN 272—LS 7160/DI 101 10
1 design, construction, operation, maintenance, and administration.
2 (d) The authority shall contract with a state supported college
3 or university in Indiana to provide the program. The program:
4 (1) must be overseen by a director and include such staff as
5 mutually agreed upon by the authority and the college or
6 university; and
7 (2) may be housed within, or share staff with, the research
8 and highway extension program established by IC 8-17-7, as
9 may be mutually agreed upon by the authority and the college
10 or university.
11 The authority shall financially support the program from funds
12 appropriated to the authority.
13 (e) The program shall provide the following services and
14 programs to, or for the benefit of, utilities that provide water,
15 wastewater, or storm water service in Indiana:
16 (1) Assisting utilities in the development of asset management
17 programs by:
18 (A) providing educational and technical assistance
19 concerning the principles, benefits, requirements, and
20 implementation of a successful asset management
21 program; and
22 (B) reviewing the asset management programs of utilities
23 and offering advice in cases in which information or
24 essential components may be missing or lacking.
25 (2) Serving as a central repository for data concerning the
26 location and condition of, and populations served by, water
27 infrastructure, wastewater infrastructure, and storm water
28 infrastructure throughout Indiana, by:
29 (A) collecting:
30 (i) data from utilities, local units, and state agencies; or
31 (ii) field data;
32 (B) compiling and organizing the data collected; and
33 (C) subject to subsection (g), making the data available in
34 an electronic format specified by the authority on an
35 Internet web site maintained by:
36 (i) the authority; or
37 (ii) the program.
38 (3) Providing training and technical assistance to utilities by:
39 (A) offering or sponsoring statewide or local conferences
40 and workshops on topics related to the design,
41 construction, operation, maintenance, and administration
42 of utilities' infrastructure and systems; and
2022 IN 272—LS 7160/DI 101 11
1 (B) making available or providing information on
2 professional development opportunities for Indiana's
3 water, wastewater, and storm water utility industry
4 workforces.
5 (f) Subject to subsection (g), not later than July 1, 2023, the
6 authority shall make information concerning all:
7 (1) utility asset management programs; and
8 (2) utility asset lifecycle management costs;
9 submitted to or reviewed by the authority under this article
10 available in an electronic format specified by the authority on an
11 Internet web site maintained by the authority or the program.
12 (g) In carrying out the duties set forth in subsections (e)(2) and
13 (f), the authority and the program shall use any data the authority
14 or the program acquires in a manner that:
15 (1) protects the confidential information of individual utilities
16 and customers; and
17 (2) is consistent with IC 5-14-3-4.
18 SECTION 5. IC 5-1.2-14-8, AS AMENDED BY P.L.56-2019,
19 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2022]: Sec. 8. (a) To receive a loan, grant, or other financial
21 assistance from the water infrastructure assistance fund, a participant:
22 (1) must have an asset management program that meets standards
23 established by the authority and must submit the asset
24 management program to the authority not later than the time
25 of submission of the participant's preliminary engineering
26 report for any project for which the loan, grant, or other
27 financial assistance will be used;
28 (2) must demonstrate to the authority that it has a plan to
29 participate with one (1) or more other participants in cooperative
30 activities, which may include using the proceeds of the loan or
31 grant to pay a part of the costs associated with a cooperative
32 activity;
33 (3) must:
34 (A) submit to the authority, not later than the time
35 specified in subdivision (1), an estimate of the life cycle
36 management costs that will be incurred over the useful life
37 of the asset to be financed with the loan, grant, or other
38 financial assistance; and
39 (B) report to the authority on an ongoing basis, at such
40 times as the authority shall prescribe, the actual life cycle
41 management costs incurred by the participant over the
42 useful life of the asset; and
2022 IN 272—LS 7160/DI 101 12
1 (4) in the case of a participant that is not under the
2 jurisdiction of the Indiana utility regulatory commission,
3 must regularly report, at such times and in such manner as
4 the authority shall prescribe, to all:
5 (A) customers;
6 (B) counties; and
7 (C) municipalities;
8 within the participant's service territory such information
9 concerning the participant's asset management program and
10 utility asset life cycle management costs as the authority may
11 require.
12 (b) To receive a loan or grant from the water infrastructure
13 assistance fund for purposes of cybersecurity, a participant must satisfy
14 the same requirements that are established under this chapter for loans
15 or grants for projects for other purposes.
16 (c) A participant receiving a grant, loan, or other financial assistance
17 from the water infrastructure assistance fund shall enter into a financial
18 assistance agreement with the authority. A financial assistance
19 agreement entered into under this section is a valid, binding, and
20 enforceable agreement of the participant.
21 (d) After receiving a loan or grant from the water infrastructure
22 assistance fund, a participant must maintain its asset management
23 program:
24 (1) as long as the loan remains unpaid; or
25 (2) during the useful life of the asset financed with the loan or
26 grant.
27 (e) In addition to meeting the other requirements established under
28 this section, a participant must, if appropriate, conduct or participate in
29 efforts to determine and eliminate the causes of non-revenue water in
30 its water distribution system.
31 (f) Notwithstanding any other law, the authority may establish and
32 implement requirements that:
33 (1) apply to loans and other financial assistance to be made to
34 participants that are not political subdivisions; and
35 (2) are different from, or in addition to, requirements that apply
36 to loans and financial assistance made to political subdivisions.
37 SECTION 6. IC 5-1.2-14-8.2, AS ADDED BY P.L.56-2019,
38 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2022]: Sec. 8.2. (a) The authority shall establish a project
40 prioritization system for the purposes of awarding loans and grants
41 from the water infrastructure assistance fund. The project prioritization
42 system must be based on a model that includes at least the following
2022 IN 272—LS 7160/DI 101 13
1 variables:
2 (1) The effect of a project on the environment and public health
3 and safety.
4 (2) The effect upon the user rates and charges of participants.
5 (3) The existence of plans for collaboration with other entities.
6 (4) The existence of a plan to measure and manage non-revenue
7 water.
8 (5) Whether an applicant is employing other best practices as
9 determined by the authority.
10 (b) The authority shall use the results of the project prioritization
11 system established under subsection (a) to create a project priority list,
12 and shall use the project priority list in awarding grants, loans, and
13 other financial assistance under this chapter. The authority may adjust
14 the project priority list established under this section:
15 (1) if the authority determines that unforeseen circumstances
16 require an adjustment; or
17 (2) in case of an emergency.
18 SECTION 7. IC 5-1.2-14.5-7, AS ADDED BY P.L.154-2021,
19 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2022]: Sec. 7. (a) To receive a loan, grant, or other financial
21 assistance from the water infrastructure grant fund, a participant:
22 (1) must have an asset management program that meets standards
23 established by the authority and must submit the asset
24 management program to the authority not later than the time
25 of submission of the participant's preliminary engineering
26 report for any project for which the loan, grant, or other
27 financial assistance will be used;
28 (2) must demonstrate to the authority that it has a plan to
29 participate with one (1) or more other participants in cooperative
30 activities, which may include using the proceeds of the loan or
31 grant to pay a part of the costs associated with a cooperative
32 activity;
33 (3) must:
34 (A) submit to the authority, not later than the time
35 specified in subdivision (1), an estimate of the life cycle
36 management costs that will be incurred over the useful life
37 of the asset to be financed with the loan, grant, or other
38 financial assistance; and
39 (B) report to the authority on an ongoing basis, at such
40 times as the authority shall prescribe, the actual life cycle
41 management costs incurred by the participant over the
42 useful life of the asset; and
2022 IN 272—LS 7160/DI 101 14
1 (4) in the case of a participant that is not under the
2 jurisdiction of the Indiana utility regulatory commission,
3 must regularly report, at such times and in such manner as
4 the authority shall prescribe, to all:
5 (A) customers;
6 (B) counties; and
7 (C) municipalities;
8 within the participant's service territory such information
9 concerning the participant's asset management program and
10 utility asset life cycle management costs as the authority may
11 require.
12 (b) To receive a loan or grant from the water infrastructure grant
13 fund for purposes of cybersecurity, a participant must satisfy the same
14 requirements that are established under this chapter for loans or grants
15 for projects for other purposes.
16 (c) A participant receiving a grant, loan, or other financial assistance
17 from the water infrastructure grant fund shall enter into an agreement
18 with the authority. An agreement entered into under this section is a
19 valid, binding, and enforceable agreement of the participant.
20 (d) After receiving a loan or grant from the water infrastructure
21 grant fund, a participant must maintain its asset management program
22 during the useful life of the asset financed with the loan or grant.
23 (e) In addition to meeting the other requirements established under
24 this section, a participant must, if appropriate, conduct or participate in
25 efforts to determine and eliminate the causes of non-revenue water in
26 its water distribution system.
27 (f) Notwithstanding any other law, the authority may establish and
28 implement requirements that:
29 (1) apply to grants, loans, and other financial assistance to be
30 made to participants that are not political subdivisions; and
31 (2) are different from, or in addition to, requirements that apply
32 to grants, loans, and financial assistance made to political
33 subdivisions.
34 SECTION 8. IC 5-1.2-14.5-8, AS ADDED BY P.L.154-2021,
35 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2022]: Sec. 8. (a) The authority shall establish a project
37 prioritization system for the purposes of awarding loans and grants
38 from the water infrastructure grant fund. The project prioritization
39 system must be based on a model that includes at least the following
40 variables:
41 (1) The effect of a project on the environment and public health
42 and safety.
2022 IN 272—LS 7160/DI 101 15
1 (2) The effect upon, and the affordability of, the user rates and
2 charges of participants.
3 (3) The existence of plans for collaboration with other entities.
4 (4) The existence of a plan to measure and manage non-revenue
5 water.
6 (5) Whether an applicant is employing other best practices as
7 determined by the authority.
8 (6) Whether the project includes an expansion of storm water
9 collection and treatment systems.
10 (b) The authority shall use the results of the project prioritization
11 system established under subsection (a) to create a project priority list,
12 and shall use the project priority list in awarding grants, loans, and
13 other financial assistance under this chapter. The authority may adjust
14 the project priority list established under this section:
15 (1) if the authority determines that unforeseen circumstances
16 require an adjustment; or
17 (2) in case of an emergency.
18 SECTION 9. IC 8-1-1.9-5 IS ADDED TO THE INDIANA CODE
19 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
20 1, 2022]: Sec. 5. (a) This section applies to a wastewater utility that:
21 (1) is not subject to the jurisdiction of the commission for the
22 approval of rates and charges; and
23 (2) has been issued one (1) or more enforcement orders after
24 June 30, 2022.
25 (b) As used in this section, "department enforcement action"
26 means an action of the department of environmental management
27 commenced under IC 13-30-3.
28 (c) As used in this section, "enforcement order" means an order,
29 including an agreed order under IC 13-30-3-3, resulting from a
30 department enforcement action.
31 (d) As used in this section, "wastewater utility" means any of
32 the following that provides wastewater service in Indiana:
33 (1) A public utility (as defined in IC 8-1-2-1(a)).
34 (2) A municipally owned utility (as defined in IC 8-1-2-1(h)).
35 (3) A not-for-profit utility (as defined in IC 8-1-2-125(a)).
36 (4) A cooperatively owned corporation.
37 (5) A conservancy district established under IC 14-33.
38 (6) A regional sewer district established under IC 13-26.
39 (e) The following apply to a wastewater utility that is subject to
40 this section:
41 (1) Upon the issuance of the first enforcement order with
42 respect to the wastewater utility, the commission shall:
2022 IN 272—LS 7160/DI 101 16
1 (A) perform a summary review, using such procedures as
2 the commission may choose, of the rates and charges of the
3 wastewater utility to determine if the rates and charges are
4 sufficient to:
5 (i) operate and maintain the wastewater utility's
6 collection and treatment system; and
7 (ii) pay all obligations of the wastewater utility's
8 collection and treatment system; and
9 (B) determine whether all elements of an adequate asset
10 management program are in place with respect to the
11 wastewater utility's collection and treatment system.
12 In making a determination under clause (B), the commission
13 may consult with the water and wastewater infrastructure
14 research and extension program established by
15 IC 5-1.2-11.5-10.
16 (2) If a second enforcement order is issued with respect to the
17 wastewater utility within two (2) years of the effective date of
18 the first enforcement order, the wastewater utility:
19 (A) shall undergo a base rate case before the commission;
20 and
21 (B) becomes subject to the jurisdiction of the commission
22 for the approval of rates and charges upon the effective
23 date of the commission's final order in the proceeding.
24 After this first required rate case, the wastewater utility shall
25 undergo one (1) subsequent rate case before the commission
26 not earlier than three (3) years after the effective date of the
27 commission's order in the first rate case under this
28 subdivision. The wastewater utility shall remain subject to the
29 jurisdiction of the commission for the approval of rates and
30 charges for a minimum of five (5) years from the effective
31 date of the commission's order in the first rate case under this
32 subdivision.
33 (3) If, during the period of rate regulation period described in
34 subdivision (2):
35 (A) one (1) or more additional enforcement orders are
36 issued with respect to the wastewater utility; or
37 (B) the commissioner of the department of environmental
38 management otherwise determines that environmental or
39 health and human safety considerations so warrant;
40 the commission may, in consultation with the department of
41 environmental management, initiate a receivership
42 proceeding with respect to the wastewater utility.
2022 IN 272—LS 7160/DI 101 17
1 (4) Subdivision (1) applies with respect to any enforcement
2 order that is issued with respect to the wastewater utility after
3 the completion of the rate regulation period described in
4 subdivision (2).
5 (f) An action by the commission or the department of
6 environmental management under this section is subject to review
7 under IC 4-21.5.
8 SECTION 10. IC 20-32-4-15 IS ADDED TO THE INDIANA
9 CODE AS A NEW SECTION TO READ AS FOLLOWS
10 [EFFECTIVE JULY 1, 2022]: Sec. 15. (a) The following definitions
11 apply throughout this section:
12 (1) "Utility career cluster" means a list:
13 (A) compiled for purposes of college and career pathways
14 relating to career and technical education under section
15 1.5(g) of this chapter; and
16 (B) setting forth industries or occupational fields that:
17 (i) are related to the provision of utility services; and
18 (ii) share similar knowledge and skill training
19 requirements.
20 (2) "Utility services" includes:
21 (A) production, transmission, or distribution of electricity;
22 (B) acquisition, transportation, distribution, or storage of
23 natural gas;
24 (C) provision of communications services (as defined in
25 IC 8-1-32.5-3);
26 (D) treatment, storage, or distribution of water; and
27 (E) collection or treatment of wastewater.
28 (b) Not later than December 31, 2022:
29 (1) the state board shall, for purposes of approving under
30 section 1.5(g) of this chapter sequences of courses leading to
31 student concentrators in industries or occupational fields
32 related to the provision of utility services, approve a utility
33 career cluster; and
34 (2) the governor's workforce cabinet shall, in consultation
35 with the state board, the department, and the department of
36 workforce development, create one (1) or more course
37 sequences:
38 (A) each of which consists of courses approved by the state
39 board for purposes of college and career pathways relating
40 to career and technical education under section 1.5(g) of
41 this chapter; and
42 (B) each of which provides students with knowledge and
2022 IN 272—LS 7160/DI 101 18
1 skills necessary for employment in an industry or
2 occupational field in the utility career cluster.
3 (c) In creating one (1) or more course sequences under
4 subsection (b)(2), the governor's workforce cabinet, in consultation
5 with the state board, the department, and the department of
6 workforce development, shall:
7 (1) consider the impact of course sequences on the long term
8 outcomes of students; and
9 (2) prioritize course sequences that lead to high wage, high
10 demand jobs.
11 SECTION 11. IC 20-32-4-16 IS ADDED TO THE INDIANA
12 CODE AS A NEW SECTION TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2022]: Sec. 16. (a) This section applies to any:
14 (1) career clusters approved or amended by the state board
15 under this chapter after June 30, 2022; or
16 (2) course sequences created or amended by the governor's
17 workforce cabinet under this chapter after June 30, 2022;
18 (b) The governor's workforce cabinet shall do the following:
19 (1) Collect data each year regarding approved career clusters
20 and course sequences to inform decision making around
21 approving, creating, and amending current and future career
22 clusters and course sequence requirements.
23 (2) Prepare and submit, not later than November 1 of each
24 year, a report to the legislative council in an electronic format
25 under IC 5-14-6 regarding the data collected under
26 subdivision (1).
27 SECTION 12. An emergency is declared for this act.
2022 IN 272—LS 7160/DI 101