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