Indiana 2024 Regular Session

Indiana Senate Bill SB0288 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 288
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 8-1-2-46.2.
7	7	Synopsis: Extension of water service to schools. Allows a water or
8	8	wastewater utility to extend service, without a deposit or other adequate
9	9	assurance of performance from the customer, a distance of not more
10	10	than three miles to a: (1) public school, including a charter school; or
11	11	(2) nonpublic school that employs one or more employees; that is
12	12	connected to a well or septic system on July 1, 2024, for the purpose of
13	13	enabling the public school or nonpublic school to disconnect from the
14	14	well or septic system.
15	15	Effective: July 1, 2024.
16	16	Niemeyer
17	17	January 16, 2024, read first time and referred to Committee on Utilities.
18	18	2024 IN 288—LS 6342/DI 119 Introduced
19	19	Second Regular Session of the 123rd General Assembly (2024)
20	20	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
21	21	Constitution) is being amended, the text of the existing provision will appear in this style type,
22	22	additions will appear in this style type, and deletions will appear in this style type.
23	23	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
24	24	provision adopted), the text of the new provision will appear in this style type. Also, the
25	25	word NEW will appear in that style type in the introductory clause of each SECTION that adds
26	26	a new provision to the Indiana Code or the Indiana Constitution.
27	27	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
28	28	between statutes enacted by the 2023 Regular Session of the General Assembly.
29	29	SENATE BILL No. 288
30	30	A BILL FOR AN ACT to amend the Indiana Code concerning
31	31	utilities.
32	32	Be it enacted by the General Assembly of the State of Indiana:
33	33	1 SECTION 1. IC 8-1-2-46.2, AS AMENDED BY P.L.189-2021,
34	34	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35	35	3 JULY 1, 2024]: Sec. 46.2. (a) The following definitions apply
36	36	4 throughout this section:
37	37	5 (1) "Developed but underserved area" means an area in which the
38	38	6 prospective service would be provided predominantly to existing
39	39	7 and occupied structures:
40	40	8 (A) that receive water from private wells; or
41	41	9 (B) from which wastewater is disposed of through onsite
42	42	10 private systems such as septic tanks.
43	43	11 (2) "Water or wastewater utility" means a public utility, other than
44	44	12 a not-for-profit utility, as defined in section 125(a) of this chapter,
45	45	13 that provides water or wastewater service to the public.
46	46	14 (b) Notwithstanding any law or rule governing extension of service,
47	47	15 a water or wastewater utility may, on a nondiscriminatory basis, extend
48	48	16 service:
49	49	17 (1) for economic development purposes;
50	50	2024 IN 288—LS 6342/DI 119 2
51	51	1 (2) to rural areas; or
52	52	2 (3) to developed but underserved areas;
53	53	3 without a deposit or other adequate assurance of performance from the
54	54	4 customer, to the extent that the extension of service results in a positive
55	55	5 contribution to the utility's overall cost of service over a twenty (20)
56	56	6 year period. For the purposes of this subsection, a water or wastewater
57	57	7 utility's extension of service to a developed but underserved area will
58	58	8 be considered as resulting in a positive contribution to the utility's
59	59	9 overall cost of service over a twenty (20) year period to the extent that
60	60	10 rates to be paid by fifty percent (50%) or more of the customers who
61	61	11 could be served by the extension of service would enable the utility to
62	62	12 fully recover the weighted cost of debt and depreciation expense
63	63	13 attributable to the cost of the main extension for the extension of
64	64	14 service.
65	65	15 (c) If a water or wastewater utility determines that an extension of
66	66	16 service described in subsection (b) will not result in a positive
67	67	17 contribution to the utility's overall cost of service over a twenty (20)
68	68	18 year period, the water or wastewater utility, in extending service, may
69	69	19 require a deposit or other adequate assurance of performance from:
70	70	20 (1) the developer of the project;
71	71	21 (2) a local, regional, or state economic development organization;
72	72	22 or
73	73	23 (3) the customers to be served by the extension of service.
74	74	24 (d) Subsection (e) applies if:
75	75	25 (1) a county executive, a municipal legislative body, or, in Marion
76	76	26 County, the county fiscal body, establishes an infrastructure
77	77	27 development zone under IC 6-1.1-12.5-4; and
78	78	28 (2) the county executive, municipal legislative body, or county
79	79	29 fiscal body requests a public utility to extend water or wastewater
80	80	30 utility service to the geographic territory established as the
81	81	31 infrastructure development zone.
82	82	32 (e) A water or wastewater utility that receives a request described
83	83	33 in subsection (d)(2) may file a petition with the commission seeking
84	84	34 approval of the requested extension of service. If the commission
85	85	35 approves the petition, in future general rate cases, the commission shall
86	86	36 approve rate schedules that include a surcharge payable only by
87	87	37 customers located in the geographic area within the jurisdiction of the
88	88	38 governmental entity described in subsection (d), or, if requested by the
89	89	39 governmental entity, only within the geographic area established as an
90	90	40 infrastructure development zone. The surcharge shall recover
91	91	41 depreciation expense, weighted cost of capital, and federal and state
92	92	42 income tax applicable to the extension of water or wastewater utility
93	93	2024 IN 288—LS 6342/DI 119 3
94	94	1 service.
95	95	2 (f) Notwithstanding any law or rule governing extension of
96	96	3 service, a water or wastewater utility may, on a nondiscriminatory
97	97	4 basis, and without a deposit or other adequate assurance of
98	98	5 performance from the customer, extend service a distance of not
99	99	6 more than three (3) miles to a:
100	100	7 (1) public school (as defined in IC 20-18-2-15), including a
101	101	8 charter school (as defined in IC 20-24-1-4); or
102	102	9 (2) nonpublic school (as defined in IC 20-18-2-12) that
103	103	10 employs one (1) or more employees;
104	104	11 that is connected to a well or septic system on July 1, 2024, for the
105	105	12 purpose of enabling the public school or nonpublic school to
106	106	13 disconnect from the well or septic system.
107	107	2024 IN 288—LS 6342/DI 119