Introduced Version SENATE BILL No. 18 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 13-11-2-47.8; IC 13-17. Synopsis: Air quality. Authorizes a town, city, or county to establish or designate an agency to act for the town, city, or county as a local air pollution control agency (agency). Requires the commissioner of the department of environmental management (department) to enter into a contract with the agency of a town, city, or county if the agency is willing to enter into the contract. Provides that a contract between the department and the agency of a town, city, or county must: (1) require the department to advise, consult, cooperate with, and provide technical assistance to the agency; (2) authorize the agency to undertake air pollution control activities on behalf of the department or initiate enforcement of ordinances of the town, city, or county; and (3) provide for the payment of fair monetary compensation for the air pollution control activities performed by the agency. Provides that: (1) the compensation paid to an agency under a contract must be at least sufficient to cover the agency's staffing and operating costs; and (2) the rate of compensation must be adjusted each year according to changes in the Consumer Price Index. Effective: July 1, 2025. Randolph Lonnie M January 8, 2025, read first time and referred to Committee on Environmental Affairs. 2025 IN 18—LS 6034/DI 153 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. SENATE BILL No. 18 A BILL FOR AN ACT to amend the Indiana Code concerning environmental law. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 13-11-2-47.8 IS ADDED TO THE INDIANA 2 CODE AS A NEW SECTION TO READ AS FOLLOWS 3 [EFFECTIVE JULY 1, 2025]: Sec. 47.8. "CPI-U", for purposes of 4 IC 13-17-3-9.5, means the Consumer Price Index for All Urban 5 Consumers, all items, as published monthly by the United States 6 Bureau of Labor Statistics. 7 SECTION 2. IC 13-17-3-9.5 IS ADDED TO THE INDIANA CODE 8 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 9 1, 2025]: Sec. 9.5. (a) The commissioner shall enter into a contract 10 described in subsection (b) with a local air pollution control agency 11 that is: 12 (1) established or designated by a town, city, or county under 13 IC 13-17-12-1(b); and 14 (2) willing to enter into the contract. 15 (b) A contract entered into under this section must do the 16 following: 17 (1) Require the department to: 2025 IN 18—LS 6034/DI 153 2 1 (A) advise, consult, and cooperate with; and 2 (B) provide technical assistance to; 3 the local air pollution control agency. 4 (2) Either authorize the local air pollution control agency: 5 (A) to undertake air pollution control activities, including: 6 (i) monitoring regional ambient air quality; and 7 (ii) within the local air pollution control agency's 8 jurisdiction, issuing operating permits and operating 9 permit revisions, performing compliance inspections, 10 responding to complaints and emergencies, and initiating 11 enforcement actions; 12 on behalf of the department; or 13 (B) to: 14 (i) issue operating permits and operating permit 15 revisions; 16 (ii) perform compliance inspections; 17 (iii) respond to complaints and emergencies; and 18 (iv) initiate enforcement actions; 19 as authorized by ordinances of the town, city, or county, as 20 applicable, that are consistent with or more restrictive 21 than air pollution control laws. 22 (3) Provide that the local air pollution control agency must be 23 paid fair monetary compensation for the activities described 24 in subdivision (2) from funds available to the department for 25 administration of the air pollution control laws, including the 26 following: 27 (A) United States Environmental Protection Agency 28 federal grant funding for the purpose of air pollution 29 control program support activities funded under Section 30 105 of the federal Clean Air Act (42 U.S.C. 7405), as 31 further described in Section 66.001 of the Catalog of 32 Federal Domestic Assistance. 33 (B) United States Environmental Protection Agency 34 federal grant funding for the purpose of PM2.5 air 35 monitoring activities funded under Section 103 of the 36 federal Clean Air Act (42 U.S.C. 7403), as further 37 described in Section 66.034 of the Catalog of Federal 38 Domestic Assistance. 39 (C) Revenue from annual operating fees established under 40 326 IAC 2. 41 (D) The environmental management special fund 42 established under IC 13-14-12. 2025 IN 18—LS 6034/DI 153 3 1 (E) Any other source of funds approved by the governor 2 and the budget agency. 3 (c) The monetary compensation provided to a local air pollution 4 control agency under a contract entered into under this section: 5 (1) must be at least sufficient to cover the staffing and 6 operating costs incurred by the local air pollution control 7 agency in performing activities described in subsection (b)(2); 8 and 9 (2) shall be adjusted each year according to the CPI-U. 10 (d) An adjustment under subsection (c)(2): 11 (1) must take place each year not later than thirty (30) days 12 after the release of the CPI-U for January of that year; and 13 (2) must adjust the rate of compensation to the local air 14 pollution control agency in proportion to the difference 15 between the CPI-U released for January of that year and the 16 CPI-U released for January of the previous year. 17 SECTION 3. IC 13-17-12-1 IS AMENDED TO READ AS 18 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. (a) Air pollution 19 control laws do not prevent towns, cities, or counties from: 20 (1) enforcing local air pollution ordinances consistent with air 21 pollution control laws; or 22 (2) adopting or enforcing more restrictive ordinances to further 23 the expressed purposes of air pollution control laws. 24 (b) To enforce local air pollution ordinances under subsection 25 (a), a town, city, or county must establish or designate an agency 26 to act for the town, city, or county as a local air pollution control 27 agency. 28 (c) A local air pollution control agency established or designated 29 by a town, city, or county under subsection (b) may: 30 (1) enforce the air pollution ordinances of the town, city, or 31 county; 32 (2) undertake air pollution control efforts on behalf of the 33 department under a contract entered into under 34 IC 13-17-3-9.5; and 35 (3) under section 3 of this chapter, administer the air pollution 36 control program of the town, city, or county in cooperation 37 with one (1) or more other towns, cities, or counties located 38 within the same air quality basin. 39 SECTION 4. IC 13-17-12-4 IS AMENDED TO READ AS 40 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 4. An A local air 41 pollution control agency of a town, city, or county that has entered 42 into a contract with the commissioner under IC 13-17-3-9.5 shall 2025 IN 18—LS 6034/DI 153 4 1 submit annual reports as requested by the department. 2025 IN 18—LS 6034/DI 153