Indiana 2025 Regular Session

Indiana House Bill HB1645 Compare Versions

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22 Introduced Version
33 HOUSE BILL No. 1645
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 5-28-25.5.
77 Synopsis: Rural utility infrastructure. Establishes the rural utility
88 infrastructure grant fund (fund) for the purpose of providing grants to
99 specified eligible entities to use in obtaining the utility infrastructure
1010 required to meet the growing demand for utility service in rural areas
1111 in Indiana. Provides that the fund shall be administered by the Indiana
1212 economic development corporation (corporation) or its successor.
1313 Requires the corporation to adopt rules to implement these provisions.
1414 Effective: July 1, 2025.
1515 Isa
1616 January 21, 2025, read first time and referred to Committee on Utilities, Energy and
1717 Telecommunications.
1818 2025 IN 1645—LS 7703/DI 101 Introduced
1919 First Regular Session of the 124th General Assembly (2025)
2020 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
2121 Constitution) is being amended, the text of the existing provision will appear in this style type,
2222 additions will appear in this style type, and deletions will appear in this style type.
2323 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
2424 provision adopted), the text of the new provision will appear in this style type. Also, the
2525 word NEW will appear in that style type in the introductory clause of each SECTION that adds
2626 a new provision to the Indiana Code or the Indiana Constitution.
2727 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
2828 between statutes enacted by the 2024 Regular Session of the General Assembly.
2929 HOUSE BILL No. 1645
3030 A BILL FOR AN ACT to amend the Indiana Code concerning state
3131 and local administration.
3232 Be it enacted by the General Assembly of the State of Indiana:
3333 1 SECTION 1. IC 5-28-25.5 IS ADDED TO THE INDIANA CODE
3434 2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3535 3 JULY 1, 2025]:
3636 4 Chapter 25.5. Rural Utility Infrastructure Grant Fund
3737 5 Sec. 1. As used in this chapter, "corporation" refers to the
3838 6 Indiana economic development corporation established by
3939 7 IC 5-28-3-1 or its successor.
4040 8 Sec. 2. As used in this chapter, "eligible entity" means any of the
4141 9 following that constitutes, is or will be located in, or provides
4242 10 services or economic opportunities to a rural area:
4343 11 (1) A county.
4444 12 (2) A municipality (as defined in IC 36-1-2-11).
4545 13 (3) A person that:
4646 14 (A) is a current or prospective customer of a utility; and
4747 15 (B) requires new or increased utility service in connection
4848 16 with:
4949 17 (i) an economic development project; or
5050 2025 IN 1645—LS 7703/DI 101 2
5151 1 (ii) a new or expanded facility;
5252 2 in a rural area.
5353 3 (4) An economic development organization serving a rural
5454 4 area.
5555 5 Sec. 3. As used in this chapter, "fund" refers to the rural utility
5656 6 infrastructure grant fund established by section 8 of this chapter.
5757 7 Sec. 4. As used in this chapter, "rural area" means:
5858 8 (1) an unincorporated area; or
5959 9 (2) a small municipality, as defined by the corporation in rules
6060 10 adopted under section 10 of this chapter;
6161 11 in Indiana.
6262 12 Sec. 5. As used in this chapter, "utility" means a utility, however
6363 13 organized, that provides utility service to customers in Indiana,
6464 14 regardless of whether the utility is under the jurisdiction of the
6565 15 Indiana utility regulatory commission for the approval of rates and
6666 16 charges.
6767 17 Sec. 6. As used in this chapter, "utility infrastructure" means
6868 18 any facilities, equipment, or infrastructure used in the generation,
6969 19 transmission, distribution, storage, or treatment of:
7070 20 (1) electricity;
7171 21 (2) natural gas;
7272 22 (3) water; or
7373 23 (4) wastewater;
7474 24 for purposes of furnishing, directly or indirectly, utility service.
7575 25 Sec. 7. As used in this chapter, "utility service" means:
7676 26 (1) electric;
7777 27 (2) natural gas;
7878 28 (3) water; or
7979 29 (4) wastewater;
8080 30 service that is provided by a utility to the public.
8181 31 Sec. 8. (a) The rural utility infrastructure grant fund is
8282 32 established for the purpose of providing grants to eligible entities
8383 33 to use in obtaining the utility infrastructure required to meet the
8484 34 growing demand for utility service necessary to:
8585 35 (1) ensure the welfare and enhance the quality of life for
8686 36 present and future residents of rural areas; and
8787 37 (2) attract and retain businesses and provide economic
8888 38 development opportunities for rural areas.
8989 39 The fund shall be administered by the corporation.
9090 40 (b) The fund consists of the following:
9191 41 (1) Gifts, grants, and contributions from public and private
9292 42 sources.
9393 2025 IN 1645—LS 7703/DI 101 3
9494 1 (2) Money from any other source.
9595 2 (c) The expenses of administering the fund shall be paid from
9696 3 money in the fund.
9797 4 (d) The treasurer of state shall invest the money in the fund not
9898 5 currently needed to meet the obligations of the fund in the same
9999 6 manner as other public money may be invested. Interest that
100100 7 accrues from these investments shall be deposited in the fund.
101101 8 (e) Money in the fund at the end of a state fiscal year does not
102102 9 revert to the state general fund.
103103 10 Sec. 9. Grants may be made from the fund to eligible entities in
104104 11 accordance with rules adopted by the corporation under section 10
105105 12 of this chapter. Any amount awarded to an eligible entity under
106106 13 this chapter and used in the construction or deployment of utility
107107 14 infrastructure that is used by a utility to provide utility service may
108108 15 not be:
109109 16 (1) included in a regulated utility's rate base; or
110110 17 (2) otherwise recovered through a utility's rates and charges.
111111 18 Sec. 10. The corporation shall adopt rules under IC 4-22-2 to
112112 19 implement this chapter, including rules governing the following:
113113 20 (1) Standards establishing population parameters or another
114114 21 appropriate metric for defining a community that qualifies as
115115 22 a small municipality for purposes of section 4(2) of this
116116 23 chapter.
117117 24 (2) The form and content of applications for grants under this
118118 25 chapter.
119119 26 (3) Standards for determining the types and categories of
120120 27 expenses that are:
121121 28 (A) directly related to the construction or deployment of
122122 29 utility infrastructure in rural areas; and
123123 30 (B) eligible to receive funding under this chapter.
124124 31 (4) Standards for assigning weight to funding priorities for
125125 32 awarding grants under this chapter.
126126 33 (5) Other rules and standards necessary to carry out the
127127 34 purposes set forth in section 8(a) of this chapter.
128128 2025 IN 1645—LS 7703/DI 101