Indiana Senate Bill SB0272 Amended / Bill

                    *SB0272.1*
January 19, 2022
SENATE BILL No. 272
_____
DIGEST OF SB 272 (Updated January 13, 2022 2:35 pm - DI 101)
Citations Affected:  IC 5-1.2; IC 8-1; IC 20-32.
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 drinking
water, wastewater, or storm water infrastructure and systems. Sets forth
the duties of the authority with respect to this role. Specifies that the
authority shall coordinate the executive branch activities related to the
state's drinking water and wastewater programs. (Current law provides
that the authority shall serve such a role with respect to the state's water
programs.) Authorizes the establishment of a drinking water and
wastewater infrastructure research and extension program (program)
to provide data collection and information, training, and technical
assistance concerning: (1) drinking water infrastructure; (2) wastewater
infrastructure; and (3) storm water infrastructure; in Indiana. Provides
that the authority may: (1) contract with a state supported college or
university in Indiana to provide the program; and (2) financially
support the program from existing funds appropriated to the authority.
Provides 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 may provide the following
services and programs to, or for the benefit of, utilities providing
drinking 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 drinking water, wastewater, or storm water service in
(Continued next page)
Effective:  Upon passage; July 1, 2022.
Koch, Charbonneau
January 10, 2022, read first time and referred to Committee on Utilities.
January 18, 2022, amended, reported favorably — Do Pass.
SB 272—LS 7160/DI 101 Digest Continued
Indiana. (3) Providing training and technical assistance to utilities and
Indiana's drinking 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 after June 30, 2023, through the
wastewater revolving loan program, the drinking water revolving loan
program, 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.
Provides that as a condition for receiving a loan, grant, or other
financial assistance from the water infrastructure assistance program
or the water infrastructure grant program, a participant that is not under
the jurisdiction of the Indiana utility regulatory commission (IURC)
must 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
money in the: (1) supplemental drinking water and wastewater
assistance fund; (2) water infrastructure assistance fund; and (3) water
infrastructure grant fund; may be used to provide grants, loans, or other
financial assistance for the planning, designing, acquisition,
construction, renovation, improvement, or expansion of septic relief
systems, in accordance with guidelines of the authority. 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. 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) relating to environmental or health
and human safety issues by the department of environmental
management (department) after June 30, 2022: (1) For the first order,
the utility is subject to an informal 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: (A) five years from the IURC's order in the first base rate
case; and (B) one year from the IURC's order in the second base rate
case. (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 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. Requires the governor's workforce cabinet
(cabinet), in consultation with the state board, the department of
(Continued next page)
SB 272—LS 7160/DI 101SB 272—LS 7160/DI 101 Digest Continued
education, and the department of workforce development, to create
course sequences for the utility career cluster.
SB 272—LS 7160/DI 101SB 272—LS 7160/DI 101  January 19, 2022
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 
SB 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
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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
SB 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,
SB 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
SB 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 authorized 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 drinking water, wastewater, or storm water infrastructure
41 and 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
SB 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.
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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 (1) a loan, would be made grant, or the other financial assistance
9 would be provided under this chapter is awarded before July 1,
10 2023, must demonstrate that it has developed or is in the process
11 of developing an asset management program, as defined in the
12 guidelines of the authority; or
13 (2) a loan, grant, or other financial is awarded after June 30,
14 2023:
15 (A) must demonstrate that it has developed:
16 (i) an asset management program, as defined in the
17 guidelines of the authority; and
18 (ii) an estimate of the life cycle management costs, as
19 defined in the guidelines of the authority, that will be
20 incurred over the useful life of the asset to be financed
21 with the loan, grant, or other financial assistance;
22 not later than the time of submission of the participant's
23 preliminary engineering report for any project for which
24 the loan, grant, or other financial assistance would be
25 provided; and
26 (B) must report to the authority on an ongoing basis, at
27 such times as the authority shall prescribe, the actual life
28 cycle management costs incurred by the participant over
29 the useful life of the asset.
30 SECTION 3. IC 5-1.2-11-6, AS ADDED BY P.L.189-2018,
31 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2022]: Sec. 6. Money in the supplemental fund may be used
33 to do the following:
34 (1) Provide grants, loans, or other financial assistance to or for the
35 benefit of participants for the planning, designing, acquisition,
36 construction, renovation, improvement, or expansion of the
37 following:
38 (A) A public water system, whether or not those other
39 activities are allowed by the federal Clean Water Act or the
40 federal Safe Drinking Water Act.
41 (B) A wastewater or storm water collection and treatment
42 system.
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1 The money may be used to pay for other activities necessary or
2 convenient to complete these tasks, regardless of whether those
3 other activities are allowed by the federal Clean Water Act or the
4 federal Safe Drinking Water Act.
5 (2) Provide grants, loans, or other financial assistance to political
6 subdivisions for tasks associated with the development and
7 preparation of:
8 (A) long term control plans;
9 (B) use attainability analyses; and
10 (C) storm water management programs.
11 (3) Provide grants, loans, or other financial assistance to or
12 for the benefit of participants for the planning, designing,
13 acquisition, construction, renovation, improvement, or
14 expansion of septic relief systems in accordance with
15 guidelines of the authority.
16 (3) (4) Provide interest subsidies.
17 (4) (5) Establish guaranties, reserves, or sinking funds, including
18 guaranties, reserves, or sinking funds to secure and pay, in whole
19 or in part, loans or other financial assistance made from sources
20 other than the supplemental fund (including financial institutions)
21 for a purpose allowed by subdivision (1).
22 (5) (6) Pay financing charges, including interest on the loan or
23 other financial assistance during construction and for a reasonable
24 period after the completion of construction.
25 (6) (7) Pay the cost of administering the supplemental fund and
26 the supplemental program.
27 (7) (8) Conduct all other activities that are allowed by the federal
28 Clean Water Act or the federal Safe Drinking Water Act.
29 SECTION 4. IC 5-1.2-11.5-9, AS ADDED BY P.L.15-2019,
30 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2022]: Sec. 9. (a) The authority shall coordinate the executive
32 branch activities related to the state's drinking water and wastewater
33 programs. The authority's duties under this section include the
34 following:
35 (1) Serving as the executive branch coordinator of drinking water
36 and wastewater related programs and activities of the state.
37 (2) Serving 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 drinking water, wastewater, or storm water infrastructure
41 and systems. The authority's duties under this subdivision
42 include:
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1 (A) communicating with utilities, local communities, and
2 state agencies about the availability of funds;
3 (B) vetting proposals for, and potential recipients of,
4 available funds; and
5 (C) directing available funds to and among utilities, local
6 communities, and state agencies;
7 as appropriate.
8 (2) (3) Advising state agencies and political subdivisions, and
9 coordinating their activities, regarding best practices concerning
10 the best use of funding streams and incentives in the manner most
11 likely to achieve comprehensive drinking water and wastewater
12 related data collection and regional collaboration in drinking
13 water and wastewater service.
14 (3) (4) Promoting and coordinating the collection and sharing of
15 information throughout Indiana concerning drinking water and
16 wastewater service.
17 (4) (5) Providing leadership regarding investment, affordability,
18 supply, and economic development related to drinking water and
19 wastewater service.
20 (b) All instrumentalities, agencies, authorities, boards, and
21 commissions of the state, including the management performance hub
22 established by IC 4-3-26, shall cooperate with and provide assistance
23 to the authority in carrying out the authority's duties under this section.
24 (c) In carrying out the authority's duties under subsection (a)(3)
25 and (a)(4), the authority may consult and collaborate with, and
26 draw on the technical expertise of, the drinking water and
27 wastewater infrastructure research and extension program
28 authorized by section 10 of this chapter, as appropriate.
29 (c) (d) In carrying out the authority's duties under this section, the
30 authority shall use any data the authority acquires in a manner that:
31 (1) protects the confidential information of individual drinking
32 water utilities, wastewater utilities, and their customers; and
33 (2) is consistent with IC 5-14-3-4.
34 SECTION 5. IC 5-1.2-11.5-10 IS ADDED TO THE INDIANA
35 CODE AS A NEW SECTION TO READ AS FOLLOWS
36 [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) As used in this section,
37 "program" refers to the drinking water and wastewater
38 infrastructure research and extension program authorized by
39 subsection (c).
40 (b) As used in this section, "utility" means any of the following
41 that provides drinking water, wastewater, or storm water service
42 in Indiana:
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1 (1) A public utility (as defined in IC 8-1-2-1(a)).
2 (2) A municipally owned utility (as defined in IC 8-1-2-1(h)).
3 (3) A not-for-profit utility (as defined in IC 8-1-2-125(a)).
4 (4) A cooperatively owned corporation.
5 (5) A conservancy district established under IC 14-33.
6 (6) A regional sewer district established under IC 13-26.
7 (7) A department of storm water management under
8 IC 8-1.5-5.
9 (c) A drinking water and wastewater infrastructure research
10 and extension program may be established to provide data
11 collection and information, training, and technical assistance
12 concerning:
13 (1) drinking water infrastructure;
14 (2) wastewater infrastructure; and
15 (3) storm water infrastructure;
16 in Indiana, including assistance with infrastructure and system
17 design, construction, operation, maintenance, financial
18 management, and administration.
19 (d) The authority may contract with a state supported college or
20 university in Indiana to provide the program. The program:
21 (1) must be overseen by a director and include such staff as
22 mutually agreed upon by the authority and the college or
23 university; and
24 (2) may be housed within, or share staff with, the research
25 and highway extension program established by IC 8-17-7, as
26 may be mutually agreed upon by the authority and the college
27 or university.
28 The authority may financially support the program from existing
29 funds appropriated to the authority.
30 (e) The program may provide the following services and
31 programs to, or for the benefit of, utilities that provide drinking
32 water, wastewater, or storm water service in Indiana:
33 (1) Assisting utilities in the development of asset management
34 programs by:
35 (A) providing educational and technical assistance
36 concerning the principles, benefits, requirements, and
37 implementation of a successful asset management
38 program; and
39 (B) reviewing the asset management programs of utilities
40 and offering advice in cases in which information or
41 essential components may be missing or lacking.
42 (2) Serving as a central repository for data concerning the
SB 272—LS 7160/DI 101 12
1 location and condition of, and populations served by, drinking
2 water infrastructure, wastewater infrastructure, and storm
3 water infrastructure throughout Indiana, by:
4 (A) collecting:
5 (i) data from utilities, local units, and state agencies; or
6 (ii) field data;
7 (B) compiling and organizing the data collected; and
8 (C) subject to subsection (g), making the data available in
9 an electronic format specified by the authority on an
10 Internet web site maintained by:
11 (i) the authority; or
12 (ii) the program.
13 (3) Providing training and technical assistance to utilities by:
14 (A) offering, participating in, or sponsoring statewide or
15 local conferences and workshops on topics related to the
16 design, construction, operation, maintenance, and
17 administration of utilities' infrastructure and systems; and
18 (B) making available or providing information on
19 professional development opportunities for Indiana's
20 drinking water, wastewater, and storm water utility
21 industry workforces.
22 (f) Subject to subsection (g), not later than July 1, 2023, the
23 authority shall make information concerning all:
24 (1) utility asset management programs; and
25 (2) utility asset lifecycle management costs;
26 submitted to or reviewed by the authority under this article
27 available in an electronic format specified by the authority on an
28 Internet web site maintained by the authority or the program.
29 (g) In carrying out the duties set forth in subsections (e)(2) and
30 (f), the authority and, if applicable, the program shall use any data
31 the authority or the program acquires in a manner that:
32 (1) protects the confidential information of individual utilities
33 and customers; and
34 (2) is consistent with IC 5-14-3-4.
35 SECTION 6. IC 5-1.2-14-4, AS AMENDED BY P.L.56-2019,
36 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2022]: Sec. 4. (a) Money in the water infrastructure assistance
38 fund may be used to do the following:
39 (1) Provide grants, loans, and other financial assistance to or for
40 the benefit of participants for:
41 (A) the planning, designing, acquisition, construction,
42 renovation, improvement, or expansion of public water
SB 272—LS 7160/DI 101 13
1 systems; and
2 (B) other activities necessary or convenient to complete the
3 tasks referred to in clause (A) whether or not the other
4 activities are permitted by the federal Clean Water Act or the
5 federal Safe Drinking Water Act.
6 (2) Provide grants, loans, or other financial assistance to or for the
7 benefit of participants for:
8 (A) the planning, designing, acquisition, construction,
9 renovation, improvement, or expansion of wastewater or storm
10 water collection and treatment systems; and
11 (B) other activities necessary or convenient to complete the
12 tasks referred to in clause (A) whether or not the other
13 activities are permitted by the federal Clean Water Act or the
14 federal Safe Drinking Water Act.
15 (3) Provide grants, loans, or other financial assistance to or
16 for the benefit of participants for the planning, designing,
17 acquisition, construction, renovation, improvement, or
18 expansion of septic relief systems in accordance with
19 guidelines of the authority.
20 (3) (4) Provide grants to political subdivisions for tasks associated
21 with the development and preparation of:
22 (A) long term control plans;
23 (B) use attainability analyses; and
24 (C) storm water management programs.
25 (4) (5) Undertake tasks associated with the development and
26 preparation of water, wastewater, and storm water infrastructure
27 and resource analyses.
28 (5) (6) Conduct all other activities that are permitted by the
29 federal Clean Water Act or the federal Safe Drinking Water Act.
30 (b) The authority may make loans or provide other financial
31 assistance from the water infrastructure assistance fund to or for the
32 benefit of a participant to do any of the following:
33 (1) Establish guaranties, reserves, or sinking funds, including
34 guaranties, reserves, or sinking funds to secure and pay, in whole
35 or in part, loans or other financial assistance made from sources
36 other than the fund (including financial institutions) for a purpose
37 permitted by this chapter.
38 (2) Provide interest subsidies.
39 (3) Pay financing charges, including interest on the loan or other
40 financial assistance:
41 (A) during design and construction of a water or wastewater
42 infrastructure project based upon a viable financial plan; and
SB 272—LS 7160/DI 101 14
1 (B) for a reasonable period after the completion of
2 construction.
3 SECTION 7. IC 5-1.2-14-8, AS AMENDED BY P.L.56-2019,
4 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2022]: Sec. 8. (a) To receive a loan, grant, or other financial
6 assistance from the water infrastructure assistance fund, a participant:
7 (1) must have demonstrate that it has developed or is in the
8 process of developing an asset management program, that meets
9 standards established by as defined in the guidelines of the
10 authority, and in the case of a loan, grant, or other financial
11 assistance awarded before July 1, 2023;
12 (2) must:
13 (A) demonstrate that it has developed:
14 (i) an asset management program, as defined in the
15 guidelines of the authority; and
16 (ii) an estimate of the life cycle management costs, as
17 defined in the guidelines of the authority, that will be
18 incurred over the useful life of the asset to be financed
19 with the loan, grant, or other financial assistance;
20 not later than the time of submission of the participant's
21 preliminary engineering report for any project for which
22 the loan, grant, or other financial assistance would be
23 provided; and
24 (B) report to the authority on an ongoing basis, at such
25 times as the authority shall prescribe, the actual life cycle
26 management costs incurred by the participant over the
27 useful life of the asset;
28 in the case of a loan, grant, or other financial assistance
29 awarded after June 30, 2023;
30 (2) (3) must demonstrate to the authority that it has a plan to
31 participate with one (1) or more other participants in cooperative
32 activities, which may include using the proceeds of the loan or
33 grant to pay a part of the costs associated with a cooperative
34 activity; and
35 (4) in the case of a participant that is not under the
36 jurisdiction of the Indiana utility regulatory commission,
37 must regularly report, at such times and in such manner as
38 the authority shall prescribe, to all:
39 (A) customers;
40 (B) counties; and
41 (C) municipalities;
42 within the participant's service territory such information
SB 272—LS 7160/DI 101 15
1 concerning the participant's asset management program and
2 utility asset life cycle management costs as the authority may
3 require.
4 (b) To receive a loan or grant from the water infrastructure
5 assistance fund for purposes of cybersecurity, a participant must satisfy
6 the same requirements that are established under this chapter for loans
7 or grants for projects for other purposes.
8 (c) A participant receiving a grant, loan, or other financial assistance
9 from the water infrastructure assistance fund shall enter into a financial
10 assistance agreement with the authority. A financial assistance
11 agreement entered into under this section is a valid, binding, and
12 enforceable agreement of the participant.
13 (d) After receiving a loan or grant from the water infrastructure
14 assistance fund, a participant must maintain its asset management
15 program:
16 (1) as long as the loan remains unpaid; or
17 (2) during the useful life of the asset financed with the loan or
18 grant.
19 (e) In addition to meeting the other requirements established under
20 this section, a participant must, if appropriate, conduct or participate in
21 efforts to determine and eliminate the causes of non-revenue water in
22 its water distribution system.
23 (f) Notwithstanding any other law, the authority may establish and
24 implement requirements that:
25 (1) apply to loans and other financial assistance to be made to
26 participants that are not political subdivisions; and
27 (2) are different from, or in addition to, requirements that apply
28 to loans and financial assistance made to political subdivisions.
29 SECTION 8. IC 5-1.2-14-8.2, AS ADDED BY P.L.56-2019,
30 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2022]: Sec. 8.2. (a) The authority shall establish a project
32 prioritization system for the purposes of awarding loans and grants
33 from the water infrastructure assistance fund. The project prioritization
34 system must be based on a model that includes at least the following
35 variables:
36 (1) The effect of a project on the environment and public health
37 and safety.
38 (2) The effect upon the user rates and charges of participants.
39 (3) The existence of plans for collaboration with other entities.
40 (4) The existence of a plan to measure and manage non-revenue
41 water.
42 (5) Whether an applicant is employing other best practices as
SB 272—LS 7160/DI 101 16
1 determined by the authority.
2 (b) The authority shall use the results of the project prioritization
3 system established under subsection (a) to create a project priority list,
4 and shall use the project priority list in awarding grants, loans, and
5 other financial assistance under this chapter. The authority may adjust
6 the project priority list established under this section:
7 (1) if the authority determines that unforeseen circumstances
8 require an adjustment; or
9 (2) in case of an emergency.
10 SECTION 9. IC 5-1.2-14.5-4, AS ADDED BY P.L.154-2021,
11 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2022]: Sec. 4. Money in the water infrastructure grant fund
13 may be used to do the following:
14 (1) Provide grants, loans, and other financial assistance to or for
15 the benefit of participants for:
16 (A) the planning, designing, acquisition, construction,
17 renovation, improvement, or expansion of water systems; and
18 (B) other activities necessary or convenient to complete the
19 tasks referred to in clause (A), regardless of whether the other
20 activities are permitted by the federal Clean Water Act or the
21 federal Safe Drinking Water Act.
22 (2) Provide grants, loans, or other financial assistance to or for the
23 benefit of participants for:
24 (A) the planning, designing, acquisition, construction,
25 renovation, improvement, or expansion of wastewater or storm
26 water collection and treatment systems; and
27 (B) other activities necessary or convenient to complete the
28 tasks referred to in clause (A), regardless of whether the other
29 activities are permitted by the federal Clean Water Act or the
30 federal Safe Drinking Water Act.
31 (3) Provide grants, loans, or other financial assistance to or
32 for the benefit of participants for the planning, designing,
33 acquisition, construction, renovation, improvement, or
34 expansion of septic relief systems in accordance with
35 guidelines of the authority.
36 (3) (4) Provide grants, loans, or other financial assistance to or for
37 the benefit of participants for any eligible activity (as defined in
38 IC 5-1.2-2-23).
39 (4) (5) Provide grants to political subdivisions for tasks associated
40 with the development and preparation of:
41 (A) long term control plans;
42 (B) use attainability analyses; and
SB 272—LS 7160/DI 101 17
1 (C) storm water management programs.
2 (5) (6) Undertake tasks associated with the development and
3 preparation of water, wastewater, and storm water infrastructure
4 and resource analyses.
5 (6) (7) Conduct all other activities that are permitted by the
6 federal Clean Water Act or the federal Safe Drinking Water Act.
7 SECTION 10. IC 5-1.2-14.5-7, AS ADDED BY P.L.154-2021,
8 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2022]: Sec. 7. (a) To receive a loan, grant, or other financial
10 assistance from the water infrastructure grant fund, a participant:
11 (1) must have demonstrate that it has developed or is in the
12 process of developing an asset management program, that meets
13 standards established by as defined in the guidelines of the
14 authority, and in the case of a loan, grant, or other financial
15 assistance awarded before July 1, 2023;
16 (2) must:
17 (A) demonstrate that it has developed:
18 (i) an asset management program, as defined in the
19 guidelines of the authority; and
20 (ii) an estimate of the life cycle management costs, as
21 defined in the guidelines of the authority, that will be
22 incurred over the useful life of the asset to be financed
23 with the loan, grant, or other financial assistance;
24 not later than the time of submission of the participant's
25 preliminary engineering report for any project for which
26 the loan, grant, or other financial assistance would be
27 provided; and
28 (B) report to the authority on an ongoing basis, at such
29 times as the authority shall prescribe, the actual life cycle
30 management costs incurred by the participant over the
31 useful life of the asset;
32 in the case of a loan, grant, or other financial assistance
33 awarded after June 30, 2023;
34 (2) (3) must demonstrate to the authority that it has a plan to
35 participate with one (1) or more other participants in cooperative
36 activities, which may include using the proceeds of the loan or
37 grant to pay a part of the costs associated with a cooperative
38 activity; and
39 (4) in the case of a participant that is not under the
40 jurisdiction of the Indiana utility regulatory commission,
41 must regularly report, at such times and in such manner as
42 the authority shall prescribe, to all:
SB 272—LS 7160/DI 101 18
1 (A) customers;
2 (B) counties; and
3 (C) municipalities;
4 within the participant's service territory such information
5 concerning the participant's asset management program and
6 utility asset life cycle management costs as the authority may
7 require.
8 (b) To receive a loan or grant from the water infrastructure grant
9 fund for purposes of cybersecurity, a participant must satisfy the same
10 requirements that are established under this chapter for loans or grants
11 for projects for other purposes.
12 (c) A participant receiving a grant, loan, or other financial assistance
13 from the water infrastructure grant fund shall enter into an agreement
14 with the authority. An agreement entered into under this section is a
15 valid, binding, and enforceable agreement of the participant.
16 (d) After receiving a loan or grant from the water infrastructure
17 grant fund, a participant must maintain its asset management program
18 during the useful life of the asset financed with the loan or grant.
19 (e) In addition to meeting the other requirements established under
20 this section, a participant must, if appropriate, conduct or participate in
21 efforts to determine and eliminate the causes of non-revenue water in
22 its water distribution system.
23 (f) Notwithstanding any other law, the authority may establish and
24 implement requirements that:
25 (1) apply to grants, loans, and other financial assistance to be
26 made to participants that are not political subdivisions; and
27 (2) are different from, or in addition to, requirements that apply
28 to grants, loans, and financial assistance made to political
29 subdivisions.
30 SECTION 11. IC 5-1.2-14.5-8, AS ADDED BY P.L.154-2021,
31 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2022]: Sec. 8. (a) The authority shall establish a project
33 prioritization system for the purposes of awarding loans and grants
34 from the water infrastructure grant fund. The project prioritization
35 system must be based on a model that includes at least the following
36 variables:
37 (1) The effect of a project on the environment and public health
38 and safety.
39 (2) The effect upon, and the affordability of, the user rates and
40 charges of participants.
41 (3) The existence of plans for collaboration with other entities.
42 (4) The existence of a plan to measure and manage non-revenue
SB 272—LS 7160/DI 101 19
1 water.
2 (5) Whether an applicant is employing other best practices as
3 determined by the authority.
4 (6) Whether the project includes an expansion of storm water
5 collection and treatment systems.
6 (b) The authority shall use the results of the project prioritization
7 system established under subsection (a) to create a project priority list,
8 and shall use the project priority list in awarding grants, loans, and
9 other financial assistance under this chapter. The authority may adjust
10 the project priority list established under this section:
11 (1) if the authority determines that unforeseen circumstances
12 require an adjustment; or
13 (2) in case of an emergency.
14 SECTION 12. IC 8-1-1.9-5 IS ADDED TO THE INDIANA CODE
15 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
16 1, 2022]: Sec. 5. (a) This section applies to a wastewater utility that:
17 (1) is not subject to the jurisdiction of the commission for the
18 approval of rates and charges; and
19 (2) has been issued one (1) or more enforcement orders after
20 June 30, 2022.
21 (b) As used in this section, "department enforcement action"
22 means an action of the department of environmental management
23 commenced under IC 13-30-3.
24 (c) As used in this section, "enforcement order" means an order,
25 including an agreed order under IC 13-30-3-3:
26 (1) resulting from a department enforcement action; and
27 (2) relating to environmental or health and human safety
28 issues.
29 (d) As used in this section, "wastewater utility" means any of
30 the following that provides wastewater service in Indiana:
31 (1) A public utility (as defined in IC 8-1-2-1(a)).
32 (2) A municipally owned utility (as defined in IC 8-1-2-1(h)).
33 (3) A not-for-profit utility (as defined in IC 8-1-2-125(a)).
34 (4) A cooperatively owned corporation.
35 (5) A conservancy district established under IC 14-33.
36 (6) A regional sewer district established under IC 13-26.
37 (e) The following apply to a wastewater utility that is subject to
38 this section:
39 (1) Upon the issuance of the first enforcement order with
40 respect to the wastewater utility, the commission shall:
41 (A) perform an informal review, using such procedures as
42 the commission may choose, of the rates and charges of the
SB 272—LS 7160/DI 101 20
1 wastewater utility to determine if the rates and charges are
2 sufficient to:
3 (i) operate and maintain the wastewater utility's
4 collection and treatment system; and
5 (ii) pay all obligations of the wastewater utility's
6 collection and treatment system; and
7 (B) determine whether all elements of an adequate asset
8 management program are in place with respect to the
9 wastewater utility's collection and treatment system.
10 In making a determination under clause (B), the commission
11 may consult with the drinking water and wastewater
12 infrastructure research and extension program established by
13 IC 5-1.2-11.5-10. Notwithstanding IC 8-1-1-5(b), commission
14 staff shall not be subject to cross examination in any
15 subsequent proceeding in connection with any documents
16 prepared during an informal review under this subdivision.
17 (2) If a second enforcement order is issued with respect to the
18 wastewater utility within two (2) years of the effective date of
19 the first enforcement order, the wastewater utility:
20 (A) shall undergo a base rate case before the commission;
21 and
22 (B) becomes subject to the jurisdiction of the commission
23 for the approval of rates and charges upon the effective
24 date of the second enforcement order.
25 After this first required rate case, the wastewater utility shall
26 undergo one (1) subsequent rate case before the commission
27 not earlier than three (3) years after the effective date of the
28 commission's order in the first rate case under this
29 subdivision. The wastewater utility shall remain subject to the
30 jurisdiction of the commission for the approval of rates and
31 charges for a minimum of five (5) years from the effective
32 date of the commission's order in the first rate case under this
33 subdivision and for at least one (1) year after the effective
34 date of the commission's order in the second rate case under
35 this subdivision. For purposes of determining rates and
36 charges under this subdivision, if the wastewater utility also
37 provides storm water services or is considered a combined
38 sewer system, the commission may consider any revenues
39 collected by the wastewater utility for storm water services.
40 However, the commission may not order storm water rates to
41 be adjusted.
42 (3) Notwithstanding IC 8-1-2.7, if the wastewater utility:
SB 272—LS 7160/DI 101 21
1 (A) satisfies the requirements set forth in subdivision (2);
2 and
3 (B) is not issued any additional enforcement orders during
4 the rate regulation period described in subdivision (2);
5 the wastewater utility shall provide to the commission written
6 notice to that effect. If the commission determines that the
7 wastewater utility has satisfied the requirements set forth in
8 subdivision (2) and has not been issued any additional
9 enforcement orders during the rate regulation period
10 described in subdivision (2), the wastewater utility shall be
11 withdrawn from the commission's jurisdiction.
12 (4) If, during the rate regulation period described in
13 subdivision (2):
14 (A) one (1) or more additional enforcement orders are
15 issued with respect to the wastewater utility; or
16 (B) the commissioner of the department of environmental
17 management otherwise determines that environmental or
18 health and human safety considerations so warrant;
19 the commission may, in consultation with the department of
20 environmental management, initiate a receivership
21 proceeding with respect to the wastewater utility.
22 (5) Subdivision (1) applies with respect to any enforcement
23 order that is issued with respect to the wastewater utility after
24 the completion of the rate regulation period described in
25 subdivision (2).
26 (f) The commission may enter into an agreement with the
27 department to carry out the requirements set forth in subsection
28 (e).
29 (g) An action by the department of environmental management
30 under this section is subject to review under IC 4-21.5.
31 (h) An action by the commission under this section is subject to
32 review under IC 8-1-3.
33 SECTION 13. IC 20-32-4-15 IS ADDED TO THE INDIANA
34 CODE AS A NEW SECTION TO READ AS FOLLOWS
35 [EFFECTIVE JULY 1, 2022]: Sec. 15. (a) The following definitions
36 apply throughout this section:
37 (1) "Utility career cluster" means a list:
38 (A) compiled for purposes of college and career pathways
39 relating to career and technical education under section
40 1.5(g) of this chapter; and
41 (B) setting forth industries or occupational fields that:
42 (i) are related to the provision of utility services; and
SB 272—LS 7160/DI 101 22
1 (ii) share similar knowledge and skill training
2 requirements.
3 (2) "Utility services" includes:
4 (A) production, transmission, or distribution of electricity;
5 (B) acquisition, transportation, distribution, or storage of
6 natural gas;
7 (C) provision of communications services (as defined in
8 IC 8-1-32.5-3);
9 (D) treatment, storage, or distribution of water; and
10 (E) collection or treatment of wastewater.
11 (b) Not later than December 31, 2022:
12 (1) the state board shall, for purposes of approving under
13 section 1.5(g) of this chapter sequences of courses leading to
14 student concentrators in industries or occupational fields
15 related to the provision of utility services, approve a utility
16 career cluster; and
17 (2) the governor's workforce cabinet shall, in consultation
18 with the state board, the department, and the department of
19 workforce development, create one (1) or more course
20 sequences:
21 (A) each of which consists of courses approved by the state
22 board for purposes of college and career pathways relating
23 to career and technical education under section 1.5(g) of
24 this chapter; and
25 (B) each of which provides students with knowledge and
26 skills necessary for employment in an industry or
27 occupational field in the utility career cluster.
28 (c) In creating one (1) or more course sequences under
29 subsection (b)(2), the governor's workforce cabinet, in consultation
30 with the state board, the department, and the department of
31 workforce development, shall:
32 (1) consider the impact of course sequences on the long term
33 outcomes of students; and
34 (2) prioritize course sequences that lead to high wage, high
35 demand jobs.
36 SECTION 14. IC 20-32-4-16 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2022]: Sec. 16. (a) This section applies to any:
39 (1) career clusters approved or amended by the state board
40 under this chapter after June 30, 2022; or
41 (2) course sequences created or amended by the governor's
42 workforce cabinet under this chapter after June 30, 2022;
SB 272—LS 7160/DI 101 23
1 (b) The governor's workforce cabinet shall do the following:
2 (1) Collect data each year regarding approved career clusters
3 and course sequences to inform decision making around
4 approving, creating, and amending current and future career
5 clusters and course sequence requirements.
6 (2) Prepare and submit, not later than November 1 of each
7 year, a report to the legislative council in an electronic format
8 under IC 5-14-6 regarding the data collected under
9 subdivision (1).
10 SECTION 15. An emergency is declared for this act.
SB 272—LS 7160/DI 101 24
COMMITTEE REPORT
Madam President: The Senate Committee on Utilities, to which was
referred Senate Bill No. 272, has had the same under consideration and
begs leave to report the same back to the Senate with the
recommendation that said bill be AMENDED as follows:
Page 6, line 36, delete "established" and insert "authorized".
Page 6, line 40, delete "water," and insert "drinking water,".
Page 7, delete lines 20 through 42, begin a new paragraph and
insert:
"SECTION 2. IC 5-1.2-10-16, AS ADDED BY P.L.189-2018,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 16. (a) A loan or other financial assistance from
either fund must be accompanied by the following:
(1) All papers and opinions required by the authority.
(2) Unless otherwise provided by the guidelines of the authority,
the following:
(A) An approving opinion of nationally recognized bond
counsel.
(B) A certification and guarantee of signatures.
(C) A certification that, as of the date of the loan or other
financial assistance:
(i) no litigation is pending challenging the validity of or
entry into the loan or other financial assistance or any
security for the loan or other financial assistance; or
(ii) if litigation is pending, the litigation will not have a
material adverse effect on the validity of the loan or other
financial assistance or any security for the loan or other
financial assistance.
(D) If litigation is pending, as an alternative to the certification
described in clause (C), an opinion of legal counsel that the
litigation will not have a material adverse effect on the validity
of the loan or other financial assistance.
(E) Documentation demonstrating that the participant has the
financial, managerial, technical, and legal capability of
operating and maintaining its water or wastewater collection
and treatment system.
(b) Each participant
(1) to which, or
(2) for the benefit of which:
(1) a loan, would be made grant, or the other financial assistance
would be provided under this chapter is awarded before July 1,
SB 272—LS 7160/DI 101 25
2023, must demonstrate that it has developed or is in the process
of developing an asset management program, as defined in the
guidelines of the authority; or
(2) a loan, grant, or other financial is awarded after June 30,
2023:
(A) must demonstrate that it has developed:
(i) an asset management program, as defined in the
guidelines of the authority; and
(ii) an estimate of the life cycle management costs, as
defined in the guidelines of the authority, that will be
incurred over the useful life of the asset to be financed
with the loan, grant, or other financial assistance;
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 would be
provided; and
(B) must report to the authority on an ongoing basis, at
such times as the authority shall prescribe, the actual life
cycle management costs incurred by the participant over
the useful life of the asset.
SECTION 3. IC 5-1.2-11-6, AS ADDED BY P.L.189-2018,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 6. Money in the supplemental fund may be used
to do the following:
(1) Provide grants, loans, or other financial assistance to or for the
benefit of participants for the planning, designing, acquisition,
construction, renovation, improvement, or expansion of the
following:
(A) A public water system, whether or not those other
activities are allowed by the federal Clean Water Act or the
federal Safe Drinking Water Act.
(B) A wastewater or storm water collection and treatment
system.
The money may be used to pay for other activities necessary or
convenient to complete these tasks, regardless of whether those
other activities are allowed by the federal Clean Water Act or the
federal Safe Drinking Water Act.
(2) Provide grants, loans, or other financial assistance to political
subdivisions for tasks associated with the development and
preparation of:
(A) long term control plans;
(B) use attainability analyses; and
SB 272—LS 7160/DI 101 26
(C) storm water management programs.
(3) Provide grants, loans, or other financial assistance to or
for the benefit of participants for the planning, designing,
acquisition, construction, renovation, improvement, or
expansion of septic relief systems in accordance with
guidelines of the authority.
(3) (4) Provide interest subsidies.
(4) (5) Establish guaranties, reserves, or sinking funds, including
guaranties, reserves, or sinking funds to secure and pay, in whole
or in part, loans or other financial assistance made from sources
other than the supplemental fund (including financial institutions)
for a purpose allowed by subdivision (1).
(5) (6) Pay financing charges, including interest on the loan or
other financial assistance during construction and for a reasonable
period after the completion of construction.
(6) (7) Pay the cost of administering the supplemental fund and
the supplemental program.
(7) (8) Conduct all other activities that are allowed by the federal
Clean Water Act or the federal Safe Drinking Water Act.".
Page 8, delete lines 1 through 16.
Page 8, line 20, after "state's" insert "drinking".
Page 8, line 22, after "of" insert "drinking".
Page 8, line 27, delete "water," and insert "drinking water,".
Page 8, line 39, after "comprehensive" insert "drinking".
Page 8, line 40, after "in" insert "drinking".
Page 9, line 1, after "concerning" insert "drinking".
Page 9, line 4, after "to" insert "drinking".
Page 9, line 11, delete "shall" and insert "may".
Page 9, line 12, after "of, the" insert "drinking".
Page 9, line 13, delete "established" and insert "authorized".
Page 9, line 17, after "individual" insert "drinking".
Page 9, line 23, after "the" insert "drinking".
Page 9, line 24, delete "established" and insert "authorized".
Page 9, line 26, after "provides" insert "drinking".
Page 9, line 36, delete "There is established a" and insert "A
drinking".
Page 9, line 37, after "program" insert "may be established".
Page 9, line 39, after "(1)" insert "drinking".
Page 10, line 1, after "maintenance," insert "financial
management,".
Page 10, line 2, delete "shall" and insert "may".
Page 10, line 11, delete "shall" and insert "may".
SB 272—LS 7160/DI 101 27
Page 10, line 11, delete "funds" and insert "existing funds".
Page 10, line 13, delete "shall" and insert "may".
Page 10, line 14, after "provide" insert "drinking".
Page 10, line 26, after "by," insert "drinking".
Page 10, line 39, delete "offering" and insert "offering,
participating in,".
Page 11, line 3, delete "water," and insert "drinking water,".
Page 11, line 13, delete "and" and insert "and, if applicable,".
Page 11, delete lines 18 through 42, begin a new paragraph and
insert:
"SECTION 6. IC 5-1.2-14-4, AS AMENDED BY P.L.56-2019,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 4. (a) Money in the water infrastructure assistance
fund may be used to do the following:
(1) Provide grants, loans, and other financial assistance to or for
the benefit of participants for:
(A) the planning, designing, acquisition, construction,
renovation, improvement, or expansion of public water
systems; and
(B) other activities necessary or convenient to complete the
tasks referred to in clause (A) whether or not the other
activities are permitted by the federal Clean Water Act or the
federal Safe Drinking Water Act.
(2) Provide grants, loans, or other financial assistance to or for the
benefit of participants for:
(A) the planning, designing, acquisition, construction,
renovation, improvement, or expansion of wastewater or storm
water collection and treatment systems; and
(B) other activities necessary or convenient to complete the
tasks referred to in clause (A) whether or not the other
activities are permitted by the federal Clean Water Act or the
federal Safe Drinking Water Act.
(3) Provide grants, loans, or other financial assistance to or
for the benefit of participants for the planning, designing,
acquisition, construction, renovation, improvement, or
expansion of septic relief systems in accordance with
guidelines of the authority.
(3) (4) Provide grants to political subdivisions for tasks associated
with the development and preparation of:
(A) long term control plans;
(B) use attainability analyses; and
(C) storm water management programs.
SB 272—LS 7160/DI 101 28
(4) (5) Undertake tasks associated with the development and
preparation of water, wastewater, and storm water infrastructure
and resource analyses.
(5) (6) Conduct all other activities that are permitted by the
federal Clean Water Act or the federal Safe Drinking Water Act.
(b) The authority may make loans or provide other financial
assistance from the water infrastructure assistance fund to or for the
benefit of a participant to do any of the following:
(1) Establish guaranties, reserves, or sinking funds, including
guaranties, reserves, or sinking funds to secure and pay, in whole
or in part, loans or other financial assistance made from sources
other than the fund (including financial institutions) for a purpose
permitted by this chapter.
(2) Provide interest subsidies.
(3) Pay financing charges, including interest on the loan or other
financial assistance:
(A) during design and construction of a water or wastewater
infrastructure project based upon a viable financial plan; and
(B) for a reasonable period after the completion of
construction.
SECTION 7. IC 5-1.2-14-8, AS AMENDED BY P.L.56-2019,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 8. (a) To receive a loan, grant, or other financial
assistance from the water infrastructure assistance fund, a participant:
(1) must have demonstrate that it has developed or is in the
process of developing an asset management program, that meets
standards established by as defined in the guidelines of the
authority, and in the case of a loan, grant, or other financial
assistance awarded before July 1, 2023; 
(2) must:
(A) demonstrate that it has developed:
(i) an asset management program, as defined in the
guidelines of the authority; and
(ii) an estimate of the life cycle management costs, as
defined in the guidelines of the authority, that will be
incurred over the useful life of the asset to be financed
with the loan, grant, or other financial assistance;
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 would be
provided; and
(B) report to the authority on an ongoing basis, at such
SB 272—LS 7160/DI 101 29
times as the authority shall prescribe, the actual life cycle
management costs incurred by the participant over the
useful life of the asset;
in the case of a loan, grant, or other financial assistance
awarded after June 30, 2023; 
(2) (3) must demonstrate to the authority that it has a plan to
participate with one (1) or more other participants in cooperative
activities, which may include using the proceeds of the loan or
grant to pay a part of the costs associated with a cooperative
activity; and
(4) in the case of a participant that is not under the
jurisdiction of the Indiana utility regulatory commission,
must regularly report, at such times and in such manner as
the authority shall prescribe, to all:
(A) customers;
(B) counties; and
(C) municipalities;
within the participant's service territory such information
concerning the participant's asset management program and
utility asset life cycle management costs as the authority may
require. 
(b) To receive a loan or grant from the water infrastructure
assistance fund for purposes of cybersecurity, a participant must satisfy
the same requirements that are established under this chapter for loans
or grants for projects for other purposes.
(c) A participant receiving a grant, loan, or other financial assistance
from the water infrastructure assistance fund shall enter into a financial
assistance agreement with the authority. A financial assistance
agreement entered into under this section is a valid, binding, and
enforceable agreement of the participant.
(d) After receiving a loan or grant from the water infrastructure
assistance fund, a participant must maintain its asset management
program:
(1) as long as the loan remains unpaid; or
(2) during the useful life of the asset financed with the loan or
grant.
(e) In addition to meeting the other requirements established under
this section, a participant must, if appropriate, conduct or participate in
efforts to determine and eliminate the causes of non-revenue water in
its water distribution system.
(f) Notwithstanding any other law, the authority may establish and
implement requirements that:
SB 272—LS 7160/DI 101 30
(1) apply to loans and other financial assistance to be made to
participants that are not political subdivisions; and
(2) are different from, or in addition to, requirements that apply
to loans and financial assistance made to political subdivisions.".
Page 12, delete lines 1 through 36.
Page 13, delete lines 18 through 42, begin a new paragraph and
insert:
"SECTION 9. IC 5-1.2-14.5-4, AS ADDED BY P.L.154-2021,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 4. Money in the water infrastructure grant fund
may be used to do the following:
(1) Provide grants, loans, and other financial assistance to or for
the benefit of participants for:
(A) the planning, designing, acquisition, construction,
renovation, improvement, or expansion of water systems; and
(B) other activities necessary or convenient to complete the
tasks referred to in clause (A), regardless of whether the other
activities are permitted by the federal Clean Water Act or the
federal Safe Drinking Water Act.
(2) Provide grants, loans, or other financial assistance to or for the
benefit of participants for:
(A) the planning, designing, acquisition, construction,
renovation, improvement, or expansion of wastewater or storm
water collection and treatment systems; and
(B) other activities necessary or convenient to complete the
tasks referred to in clause (A), regardless of whether the other
activities are permitted by the federal Clean Water Act or the
federal Safe Drinking Water Act.
(3) Provide grants, loans, or other financial assistance to or
for the benefit of participants for the planning, designing,
acquisition, construction, renovation, improvement, or
expansion of septic relief systems in accordance with
guidelines of the authority.
(3) (4) Provide grants, loans, or other financial assistance to or for
the benefit of participants for any eligible activity (as defined in
IC 5-1.2-2-23).
(4) (5) Provide grants to political subdivisions for tasks associated
with the development and preparation of:
(A) long term control plans;
(B) use attainability analyses; and
(C) storm water management programs.
(5) (6) Undertake tasks associated with the development and
SB 272—LS 7160/DI 101 31
preparation of water, wastewater, and storm water infrastructure
and resource analyses.
(6) (7) Conduct all other activities that are permitted by the
federal Clean Water Act or the federal Safe Drinking Water Act.
SECTION 10. IC 5-1.2-14.5-7, AS ADDED BY P.L.154-2021,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 7. (a) To receive a loan, grant, or other financial
assistance from the water infrastructure grant fund, a participant:
(1) must have demonstrate that it has developed or is in the
process of developing an asset management program, that meets
standards established by as defined in the guidelines of the
authority, and in the case of a loan, grant, or other financial
assistance awarded before July 1, 2023; 
(2) must:
(A) demonstrate that it has developed:
(i) an asset management program, as defined in the
guidelines of the authority; and
(ii) an estimate of the life cycle management costs, as
defined in the guidelines of the authority, that will be
incurred over the useful life of the asset to be financed
with the loan, grant, or other financial assistance;
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 would be
provided; and
(B) report to the authority on an ongoing basis, at such
times as the authority shall prescribe, the actual life cycle
management costs incurred by the participant over the
useful life of the asset;
in the case of a loan, grant, or other financial assistance
awarded after June 30, 2023; 
(2) (3) must demonstrate to the authority that it has a plan to
participate with one (1) or more other participants in cooperative
activities, which may include using the proceeds of the loan or
grant to pay a part of the costs associated with a cooperative
activity; and
(4) in the case of a participant that is not under the
jurisdiction of the Indiana utility regulatory commission,
must regularly report, at such times and in such manner as
the authority shall prescribe, to all:
(A) customers;
(B) counties; and
SB 272—LS 7160/DI 101 32
(C) municipalities;
within the participant's service territory such information
concerning the participant's asset management program and
utility asset life cycle management costs as the authority may
require.
(b) To receive a loan or grant from the water infrastructure grant
fund for purposes of cybersecurity, a participant must satisfy the same
requirements that are established under this chapter for loans or grants
for projects for other purposes.
(c) A participant receiving a grant, loan, or other financial assistance
from the water infrastructure grant fund shall enter into an agreement
with the authority. An agreement entered into under this section is a
valid, binding, and enforceable agreement of the participant.
(d) After receiving a loan or grant from the water infrastructure
grant fund, a participant must maintain its asset management program
during the useful life of the asset financed with the loan or grant.
(e) In addition to meeting the other requirements established under
this section, a participant must, if appropriate, conduct or participate in
efforts to determine and eliminate the causes of non-revenue water in
its water distribution system.
(f) Notwithstanding any other law, the authority may establish and
implement requirements that:
(1) apply to grants, loans, and other financial assistance to be
made to participants that are not political subdivisions; and
(2) are different from, or in addition to, requirements that apply
to grants, loans, and financial assistance made to political
subdivisions.".
Page 14, delete lines 1 through 33.
Page 15, line 29, delete "IC 13-30-3-3, resulting from a" and insert
"IC 13-30-3-3:
(1) resulting from a department enforcement action; and
(2) relating to environmental or health and human safety
issues.".
Page 15, delete line 30.
Page 16, line 1, delete "a summary" and insert "an informal".
Page 16, line 13, after "the" insert "drinking".
Page 16, line 15, after "IC 5-1.2-11.5-10." insert "Notwithstanding
IC 8-1-1-5(b), commission staff shall not be subject to cross
examination in any subsequent proceeding in connection with any
documents prepared during an informal review under this
subdivision.".
Page 16, line 23, delete "commission's final order in the
SB 272—LS 7160/DI 101 33
proceeding." and insert "second enforcement order.".
Page 16, line 32, delete "subdivision." and insert "subdivision and
for at least one (1) year after the effective date of the commission's
order in the second rate case under this subdivision. For purposes
of determining rates and charges under this subdivision, if the
wastewater utility also provides storm water services or is
considered a combined sewer system, the commission may consider
any revenues collected by the wastewater utility for storm water
services. However, the commission may not order storm water
rates to be adjusted.".
Page 16, between lines 32 and 33, begin a new line block indented
and insert:
"(3) Notwithstanding IC 8-1-2.7, if the wastewater utility:
(A) satisfies the requirements set forth in subdivision (2);
and
(B) is not issued any additional enforcement orders during
the rate regulation period described in subdivision (2);
the wastewater utility shall provide to the commission written
notice to that effect. If the commission determines that the
wastewater utility has satisfied the requirements set forth in
subdivision (2) and has not been issued any additional
enforcement orders during the rate regulation period
described in subdivision (2), the wastewater utility shall be
withdrawn from the commission's jurisdiction.".
Page 16, line 33, delete "(3)" and insert "(4)".
Page 16, line 33, delete "period of".
Page 17, line 1, delete "4" and insert "(5)".
Page 17, between lines 4 and 5, begin a new paragraph and insert:
"(f) The commission may enter into an agreement with the
department to carry out the requirements set forth in subsection
(e).".
Page 17, line 5, delete "(f) An action by the commission or" and
insert "(g) An action by".
Page 17, between lines 7 and 8, begin a new paragraph and insert:
"(h) An action by the commission under this section is subject to
review under IC 8-1-3.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 272 as introduced.)
SB 272—LS 7160/DI 101 34
KOCH, Chairperson
Committee Vote: Yeas 10, Nays 0.
SB 272—LS 7160/DI 101