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 6506 NOTE PREPARED: Jan 8, 2024
BILL NUMBER: SB 206 BILL AMENDED:
SUBJECT: IDEM Agency Bill.
FIRST AUTHOR: Sen. Niemeyer BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Electronic Communications and Access: The bill allows the Department of
Environmental Management (IDEM) to use electronic means to complete mail delivery communications,
accept applications, post public notices, and provide access to documents for public comment.
Easements Identified for Restrictive Covenant Approval: The bill requires existing easements to be identified
in a corrective action plan before an environmental restrictive covenant is approved.
Access to Property for Remediation: It creates a cause of action for a responsible party to sue a property
owner to receive access to a site to perform remediation activities.
Determination Regarding Biomass Facility Permits: The bill requires the IDEM to make a determination,
within 90 days, concerning prior approval for constructing or expanding a biomass anaerobic digestion
facility or biomass gasification facility.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Electronic Means of Communication and Access: The bill could reduce
expenditures by allowing IDEM to use electronic means to communicate, rather than publishing notices in
newspapers and sending notices through certified mail, and for providing access to documents when they are
required by administrative rule. In instances where a period of time commences when a person is served with
a paper or notice, three days are added to the period when the person is served the notice electronically (in
addition to when the notice is sent through the U.S. mail).
SB 206 1 Determination Regarding Biomass Gasification Facility: Workload could increase for IDEM as the bill
requires the agency to make a determination on an application to construct or expand certain biomass
facilities within 90 days. If IDEM is not currently making determinations regarding the issuance of these
permits in this time frame, it may have to modify how it processes the applications. This may increase
workload for IDEM.
Easements Identified for Restrictive Covenant Approval: Currently, if a person wants to use a restrictive
covenant (land restriction for environmental control), IDEM requires the person to identify all easements on
the property. If any easement has a term that conflicts with the restrictive covenant, the person must obtain
a subordinate clause agreement or renegotiate the easement to not conflict with the restrictive covenant. The
bill codifies IDEM’s requirement, but prohibits the use of a restrictive covenant, unless any such
encumbrance or easement allowing for disturbance of the site is made subordinate to the restrictive covenant,
requiring notification to IDEM before disturbing the site. Encumbrances subject to this provision include
easements and rights-of-way for sewer lines, water distributions systems, underground infrastructure systems,
and oil and gas pipelines.
Explanation of State Revenues: Access to Property for Remediation: The bill creates a cause of action for
a responsible party to sue a property owner to receive access to a site to perform remediation activities. If
additional civil cases occur and court fees are collected, revenue to the state General Fund will increase. The
total revenue per case would range between $100 and $122. The amount deposited will vary depending on
whether the case is filed in a court of record or a municipal court. The following linked document describes
the fees and distribution of the revenue: Court fees imposed in civil, probate, and small claims cases.
Determination Regarding Biomass Gasification Facility: If IDEM fails to make a determination within 90
days on an application to construct or expand a biomass facility for which the only input is biomass, the bill
requires IDEM to refund the applicant. However, there is currently no application fee for these facilities.
Explanation of Local Expenditures: Electronic Means of Communication: The bill could reduce
expenditures for regional water, sewer, or solid waste districts or proposed districts by allowing them to use
electronic means rather than sending certified mail to each freeholder or providing publications in
newspapers for notices of hearings, extensions of services, rates, and rate increases. The bill also allows solid
waste management districts to use electronic means to post public notice of monthly meetings.
Explanation of Local Revenues: Access to Property for Remediation: The bill creates a cause of action for
a responsible party to sue a property owner to receive access to a site to perform remediation activities. If
additional cases occur, revenue will be collected by certain local units. If the case is filed in a court of record,
the county will receive $32 and qualifying municipalities will receive a share of $3. If the case is filed in a
municipal court, the county receives $20, and the municipality will receive $37. The following linked
document describes the fees and distribution of the revenue: Court fees imposed in civil, probate, and small
claims cases.
State Agencies Affected: Department of Environmental Management.
Local Agencies Affected: Trial courts, city and town courts; solid waste management districts.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual;
https://www.in.gov/idem/cleanups/investigation-and-cleanup-programs/institutional-controls/;
https://www.in.gov/idem/waste/waste-industries/biomass-digesters-and-gasification-facilities/.
SB 206 2 Fiscal Analyst: Heather Puletz, 317-234-9484.
SB 206 3