Indiana 2025 Regular Session

Indiana Senate Bill SB0458 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. 458
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 8-1; IC 32-24-4-5.
7	7	Synopsis: Extension of water services. Allows a water or wastewater
8	8	utility to extend service up to three miles to a: (1) public school,
9	9	including a charter school; or (2) nonpublic school that employs one or
10	10	more employees; without a deposit or other adequate assurance of
11	11	performance from the customer if certain conditions are met. Provides
12	12	that the extension qualifies as an eligible infrastructure improvement
13	13	for purposes of infrastructure improvement charges. Provides that a
14	14	public utility must conduct an outreach program before it condemns
15	15	land for the purpose of extending a water or wastewater main.
16	16	Establishes certain meeting and notice requirements for the outreach
17	17	program.
18	18	Effective: January 1, 2025 (retroactive); July 1, 2025.
19	19	Niemeyer
20	20	January 13, 2025, read first time and referred to Committee on Utilities.
21	21	2025 IN 458—LS 6622/DI 153 Introduced
22	22	First Regular Session of the 124th General Assembly (2025)
23	23	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
24	24	Constitution) is being amended, the text of the existing provision will appear in this style type,
25	25	additions will appear in this style type, and deletions will appear in this style type.
26	26	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
27	27	provision adopted), the text of the new provision will appear in this style type. Also, the
28	28	word NEW will appear in that style type in the introductory clause of each SECTION that adds
29	29	a new provision to the Indiana Code or the Indiana Constitution.
30	30	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
31	31	between statutes enacted by the 2024 Regular Session of the General Assembly.
32	32	SENATE BILL No. 458
33	33	A BILL FOR AN ACT to amend the Indiana Code concerning
34	34	utilities.
35	35	Be it enacted by the General Assembly of the State of Indiana:
36	36	1 SECTION 1. IC 8-1-2-46.2, AS AMENDED BY P.L.189-2021,
37	37	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38	38	3 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 46.2. (a) The following
39	39	4 definitions apply throughout this section:
40	40	5 (1) "Developed but underserved area" means an area in which the
41	41	6 prospective service would be provided predominantly to existing
42	42	7 and occupied structures:
43	43	8 (A) that receive water from private wells; or
44	44	9 (B) from which wastewater is disposed of through onsite
45	45	10 private systems such as septic tanks.
46	46	11 (2) "Water or wastewater utility" means a public utility, other than
47	47	12 a not-for-profit utility, as defined in section 125(a) of this chapter,
48	48	13 that provides water or wastewater service to the public.
49	49	14 (b) Notwithstanding any law or rule governing extension of service,
50	50	15 a water or wastewater utility may, on a nondiscriminatory basis, extend
51	51	16 service:
52	52	17 (1) for economic development purposes;
53	53	2025 IN 458—LS 6622/DI 153 2
54	54	1 (2) to rural areas; or
55	55	2 (3) to developed but underserved areas;
56	56	3 without a deposit or other adequate assurance of performance from the
57	57	4 customer, to the extent that the extension of service results in a positive
58	58	5 contribution to the utility's overall cost of service over a twenty (20)
59	59	6 year period. For the purposes of this subsection, a water or wastewater
60	60	7 utility's extension of service to a developed but underserved area will
61	61	8 be considered as resulting in a positive contribution to the utility's
62	62	9 overall cost of service over a twenty (20) year period to the extent that
63	63	10 rates to be paid by fifty percent (50%) or more of the customers who
64	64	11 could be served by the extension of service would enable the utility to
65	65	12 fully recover the weighted cost of debt and depreciation expense
66	66	13 attributable to the cost of the main extension for the extension of
67	67	14 service.
68	68	15 (c) If a water or wastewater utility determines that an extension of
69	69	16 service described in subsection (b) will not result in a positive
70	70	17 contribution to the utility's overall cost of service over a twenty (20)
71	71	18 year period, the water or wastewater utility, in extending service, may
72	72	19 require a deposit or other adequate assurance of performance from:
73	73	20 (1) the developer of the project;
74	74	21 (2) a local, regional, or state economic development organization;
75	75	22 or
76	76	23 (3) the customers to be served by the extension of service.
77	77	24 (d) Subsection (e) applies if:
78	78	25 (1) a county executive, a municipal legislative body, or, in Marion
79	79	26 County, the county fiscal body, establishes an infrastructure
80	80	27 development zone under IC 6-1.1-12.5-4; and
81	81	28 (2) the county executive, municipal legislative body, or county
82	82	29 fiscal body requests a public utility to extend water or wastewater
83	83	30 utility service to the geographic territory established as the
84	84	31 infrastructure development zone.
85	85	32 (e) A water or wastewater utility that receives a request described
86	86	33 in subsection (d)(2) may file a petition with the commission seeking
87	87	34 approval of the requested extension of service. If the commission
88	88	35 approves the petition, in future general rate cases, the commission shall
89	89	36 approve rate schedules that include a surcharge payable only by
90	90	37 customers located in the geographic area within the jurisdiction of the
91	91	38 governmental entity described in subsection (d), or, if requested by the
92	92	39 governmental entity, only within the geographic area established as an
93	93	40 infrastructure development zone. The surcharge shall recover
94	94	41 depreciation expense, weighted cost of capital, and federal and state
95	95	42 income tax applicable to the extension of water or wastewater utility
96	96	2025 IN 458—LS 6622/DI 153 3
97	97	1 service.
98	98	2 (f) Notwithstanding any law or rule governing extension of
99	99	3 service, a water or wastewater utility may, on a nondiscriminatory
100	100	4 basis, extend service a distance of not more than three (3) miles to
101	101	5 a:
102	102	6 (1) public school (as defined in IC 20-18-2-15), including a
103	103	7 charter school (as defined in IC 20-24-1-4); or
104	104	8 (2) nonpublic school (as defined in IC 20-18-2-12) that
105	105	9 employs one (1) or more employees;
106	106	10 without a deposit or other adequate assurance of performance
107	107	11 from the customer for a project which is accepted by the utility or
108	108	12 for which construction begins after January 1, 2025. An extension
109	109	13 under this subsection qualifies as an eligible infrastructure
110	110	14 improvement (as defined in IC 8-1-31-5), notwithstanding that the
111	111	15 purpose of the extension is to connect as a new customer a public
112	112	16 school or a nonpublic school.
113	113	17 SECTION 2. IC 8-1-31-5, AS AMENDED BY P.L.61-2022,
114	114	18 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
115	115	19 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 5. As used in this
116	116	20 chapter, "eligible infrastructure improvements" means projects that:
117	117	21 (1) are:
118	118	22 (A) new water or wastewater utility distribution or collection
119	119	23 plant projects; or
120	120	24 (B) projects to relocate existing utility plant, including projects
121	121	25 to relocate utility plant or equipment to accommodate the
122	122	26 construction, reconstruction, or improvement of a highway,
123	123	27 street, or road (as defined in IC 8-23-1-23), including projects
124	124	28 under IC 8-25;
125	125	29 (2) do not increase revenues by connecting to new customers,
126	126	30 even if the projects provide greater available capacity with respect
127	127	31 to an eligible utility's distribution or collection plant; and
128	128	32 (3) either:
129	129	33 (A) for a public utility:
130	130	34 (i) are in service and used and useful; and
131	131	35 (ii) were not included in the public utility's rate base in its
132	132	36 most recent general rate case; or
133	133	37 (B) for a municipally owned or not-for-profit utility:
134	134	38 (i) are or will be extensions or replacements of projects
135	135	39 described in subdivision (1), as described in section
136	136	40 5.5(2)(B) or 5.5(3)(B) of this chapter, as applicable;
137	137	41 (ii) were not included on the utility's balance sheet as plant
138	138	42 in service in the utility's most recent general rate case; and
139	139	2025 IN 458—LS 6622/DI 153 4
140	140	1 (iii) are not infrastructure improvements that are being
141	141	2 recovered or have been recovered through rates or another
142	142	3 rate adjustment mechanism.
143	143	4 An extension under IC 8-1-2-46.2(f) is an eligible infrastructure
144	144	5 improvement.
145	145	6 SECTION 3. IC 32-24-4-5 IS ADDED TO THE INDIANA CODE
146	146	7 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
147	147	8 1, 2025]: Sec. 5. (a) A public utility may not take, acquire,
148	148	9 condemn, or appropriate land, real estate, or any interest in the
149	149	10 land or real estate for the purpose of extending a water or
150	150	11 wastewater main unless the public utility conducts an outreach
151	151	12 program under subsection (b).
152	152	13 (b) Not earlier than four (4) months before a public utility
153	153	14 presents an offer of purchase under IC 32-24-1-5, the public utility
154	154	15 shall conduct an outreach program to inform citizens regarding the
155	155	16 proposed extension. The outreach program must conduct at least
156	156	17 two (2) public information meetings regarding the proposed
157	157	18 extension. The public information meetings must provide citizens
158	158	19 with the following information:
159	159	20 (1) Maps showing the proposed boundaries of the extension.
160	160	21 (2) The expected completion date of the total extension
161	161	22 project.
162	162	23 (3) The nature of the work the public utility would complete
163	163	24 on each parcel of land needed or intended to be taken for the
164	164	25 extension.
165	165	26 (c) The public utility shall provide notice of the dates, times, and
166	166	27 locations of the outreach program meetings in a newspaper of
167	167	28 general circulation in the county where the extension is proposed
168	168	29 not later than thirty (30) days before the date of each meeting. The
169	169	30 public utility shall also send notice to each owner of land, if the
170	170	31 person's land is needed or intended to be taken for the extension,
171	171	32 not later than thirty (30) days before the date of the first meeting
172	172	33 of the outreach program. The notice to landowners shall be sent by
173	173	34 first class mail, certified mail with return receipt requested, or any
174	174	35 other means of delivery that includes a return receipt and must
175	175	36 include the following information:
176	176	37 (1) A statement that:
177	177	38 (A) the public utility intends to extend a water or
178	178	39 wastewater main;
179	179	40 (B) the landowner's property is needed for the extension;
180	180	41 and
181	181	42 (C) the public utility can acquire land through
182	182	2025 IN 458—LS 6622/DI 153 5
183	183	1 condemnation if certain conditions are met.
184	184	2 (2) The public utility is conducting an outreach program for
185	185	3 the purpose of providing information to landowners and the
186	186	4 public regarding the proposed extension.
187	187	5 (3) The date, time, and location of the meetings to be
188	188	6 conducted under the outreach program.
189	189	7 (d) The notice shall be sent to the address of the landowner as
190	190	8 listed on the tax duplicate. If the municipality provides evidence
191	191	9 that the notice was sent:
192	192	10 (1) by certified mail, with return receipt requested or any
193	193	11 other means of delivery that includes a return receipt; and
194	194	12 (2) in accordance with this section;
195	195	13 it is not necessary that the landowner accept receipt of the notice.
196	196	14 (e) A public utility shall provide notice of a project to extend a
197	197	15 water or wastewater main to a county zoning authority that has
198	198	16 jurisdiction over the area.
199	199	2025 IN 458—LS 6622/DI 153