Introduced Version
HOUSE BILL No. 1645
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-28-25.5.
Synopsis: Rural utility infrastructure. Establishes the rural utility
infrastructure grant fund (fund) for the purpose of providing grants to
specified eligible entities to use in obtaining the utility infrastructure
required to meet the growing demand for utility service in rural areas
in Indiana. Provides that the fund shall be administered by the Indiana
economic development corporation (corporation) or its successor.
Requires the corporation to adopt rules to implement these provisions.
Effective: July 1, 2025.
Isa
January 21, 2025, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
2025 IN 1645—LS 7703/DI 101 Introduced
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1645
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 5-28-25.5 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]:
4 Chapter 25.5. Rural Utility Infrastructure Grant Fund
5 Sec. 1. As used in this chapter, "corporation" refers to the
6 Indiana economic development corporation established by
7 IC 5-28-3-1 or its successor.
8 Sec. 2. As used in this chapter, "eligible entity" means any of the
9 following that constitutes, is or will be located in, or provides
10 services or economic opportunities to a rural area:
11 (1) A county.
12 (2) A municipality (as defined in IC 36-1-2-11).
13 (3) A person that:
14 (A) is a current or prospective customer of a utility; and
15 (B) requires new or increased utility service in connection
16 with:
17 (i) an economic development project; or
2025 IN 1645—LS 7703/DI 101 2
1 (ii) a new or expanded facility;
2 in a rural area.
3 (4) An economic development organization serving a rural
4 area.
5 Sec. 3. As used in this chapter, "fund" refers to the rural utility
6 infrastructure grant fund established by section 8 of this chapter.
7 Sec. 4. As used in this chapter, "rural area" means:
8 (1) an unincorporated area; or
9 (2) a small municipality, as defined by the corporation in rules
10 adopted under section 10 of this chapter;
11 in Indiana.
12 Sec. 5. As used in this chapter, "utility" means a utility, however
13 organized, that provides utility service to customers in Indiana,
14 regardless of whether the utility is under the jurisdiction of the
15 Indiana utility regulatory commission for the approval of rates and
16 charges.
17 Sec. 6. As used in this chapter, "utility infrastructure" means
18 any facilities, equipment, or infrastructure used in the generation,
19 transmission, distribution, storage, or treatment of:
20 (1) electricity;
21 (2) natural gas;
22 (3) water; or
23 (4) wastewater;
24 for purposes of furnishing, directly or indirectly, utility service.
25 Sec. 7. As used in this chapter, "utility service" means:
26 (1) electric;
27 (2) natural gas;
28 (3) water; or
29 (4) wastewater;
30 service that is provided by a utility to the public.
31 Sec. 8. (a) The rural utility infrastructure grant fund is
32 established for the purpose of providing grants to eligible entities
33 to use in obtaining the utility infrastructure required to meet the
34 growing demand for utility service necessary to:
35 (1) ensure the welfare and enhance the quality of life for
36 present and future residents of rural areas; and
37 (2) attract and retain businesses and provide economic
38 development opportunities for rural areas.
39 The fund shall be administered by the corporation.
40 (b) The fund consists of the following:
41 (1) Gifts, grants, and contributions from public and private
42 sources.
2025 IN 1645—LS 7703/DI 101 3
1 (2) Money from any other source.
2 (c) The expenses of administering the fund shall be paid from
3 money in the fund.
4 (d) The treasurer of state shall invest the money in the fund not
5 currently needed to meet the obligations of the fund in the same
6 manner as other public money may be invested. Interest that
7 accrues from these investments shall be deposited in the fund.
8 (e) Money in the fund at the end of a state fiscal year does not
9 revert to the state general fund.
10 Sec. 9. Grants may be made from the fund to eligible entities in
11 accordance with rules adopted by the corporation under section 10
12 of this chapter. Any amount awarded to an eligible entity under
13 this chapter and used in the construction or deployment of utility
14 infrastructure that is used by a utility to provide utility service may
15 not be:
16 (1) included in a regulated utility's rate base; or
17 (2) otherwise recovered through a utility's rates and charges.
18 Sec. 10. The corporation shall adopt rules under IC 4-22-2 to
19 implement this chapter, including rules governing the following:
20 (1) Standards establishing population parameters or another
21 appropriate metric for defining a community that qualifies as
22 a small municipality for purposes of section 4(2) of this
23 chapter.
24 (2) The form and content of applications for grants under this
25 chapter.
26 (3) Standards for determining the types and categories of
27 expenses that are:
28 (A) directly related to the construction or deployment of
29 utility infrastructure in rural areas; and
30 (B) eligible to receive funding under this chapter.
31 (4) Standards for assigning weight to funding priorities for
32 awarding grants under this chapter.
33 (5) Other rules and standards necessary to carry out the
34 purposes set forth in section 8(a) of this chapter.
2025 IN 1645—LS 7703/DI 101