LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6417 NOTE PREPARED: Dec 13, 2023
BILL NUMBER: HB 1085 BILL AMENDED:
SUBJECT: PFAS Water Safety Standards.
FIRST AUTHOR: Rep. Dvorak BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill requires the Indiana Department of Health (IDOH) to establish state
maximum contaminant levels for PFAS in water provided by public water systems. It provides that maximum
contaminant levels established by the IDOH:
(1) must be protective of public health, including the health of vulnerable subpopulations; and
(2) may not be less stringent than any maximum contaminant level or health advisory promulgated
by the United States Environmental Protection Agency.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Current maximum contaminant levels (MCLs) for public drinking
water supplies are set by the Environmental Rules Board (ERB) and enforced by the Department of
Environmental Management (IDEM). It is assumed that IDOH would establish MCLs and adopt rules for
the pollutants specified in the bill in consultation with the ERB and IDEM. Rules adoption relating to
drinking water pollutants is a routine administrative function for ERB and IDEM, and is expected to be
accomplished collaboratively with IDOH under the existing staffing and resource levels of the agencies.
[Administrative expenses of the IDOH are paid from the Tobacco Master Settlement Fund, a dedicated fund.
IDEM administrative expenditures are paid from state General Fund appropriations.]
Additional Information: The Environmental Protection Agency (EPA) sets lifetime health advisories to
identify the concentration of a contaminant at which adverse health effects are not anticipated to occur over
specific exposure durations. In 2022, the EPA updated these lifetime health advisory levels for four different
PFAS chemcials: PFOA, PFOS, GenX Chemicals, and PFBS. The EPA is also developing a proposed
National Drinking Water Regulation for PFOA and PFOS. The proposal will include both a non-enforceable
HB 1085 1 Maximum Contaminant Level Goal (MCLG) and an enforceable MCL standard. The EPA is expected to
finalize the proposal by the end of CY 2023.
Explanation of State Revenues: IDEM may impose a civil penalty upon public water systems that fail to
take corrective action or prevent contamination after the permit holder knew or should have known that
action should be taken. To the extent that the new MCLs established by IDOH result in additional penalties
imposed upon public water systems, state General Fund revenue may increase. Penalties may be up to $1,000
for each day of a violation. Any additional revenue is expected to be minimal.
Explanation of Local Expenditures: Public sater systems owned by local units of government may incur
additional costs to comply with new MCLs established by IDOH, and possibly pay civil penalties of up to
$1,000 for each day of a violation if violations occur.
Explanation of Local Revenues:
State Agencies Affected: Indiana Department of Health; Indiana Department of Environmental
Management; Environmental Rules Board.
Local Agencies Affected: Public water systems owned by local units of government.
Information Sources: IC 13-18-16;
https://www.epa.gov/sdwa/questions-and-answers-drinking-water-health-advisories-pfoa-pfos-genx-chem
icals-and-pfbs.
Fiscal Analyst: Jasmine Noel, 317-234-1360.
HB 1085 2