IndianaHB 1459First Regular Session 124th General Assembly (2025)House

Water and wastewater utility asset management.

Sponsored By: Jim Pressel (Republican)

Signed by Governor

Summary

Provides that beginning January 1, 2026, a water or wastewater utility (utility) that is not under the jurisdiction of the Indiana utility regulatory commission (IURC) for the approval of rates and charges shall submit a report on the utility's asset management program (program) to the IURC on a quadrennial basis according to a schedule prescribed by the IURC. Provides that a utility's report must include information: (1) demonstrating the utility's efforts to implement the Indiana finance authority's guidelines for asset management programs; and (2) certifying that: (A) the utility has the technical, managerial, legal, and financial capability to support those efforts; and (B) for a report submitted after December 31, 2026, the governing body of the utility has completed a training or continuing education program, as required under the bill, at least one time during the four year reporting period. Provides that evidence that a utility has submitted an asset management program to the Indiana finance authority (IFA) in connection with an application for a grant, loan, or other financial assistance may be provided by the utility to satisfy the requirement to demonstrate the utility's efforts to implement the IFA's guidelines for asset management programs. Requires the IURC to adopt before October 1, 2025, a general administrative order (GAO) setting forth the: (1) information required to be included in a utility's report; (2) procedures for submission of the report, including a simplified alternative reporting form that a utility with less than 1,000 customers may elect to submit; (3) quadrennial reporting schedule for submitting a report; and (4) criteria to be used by the IURC in making certain determinations about a utility's asset management program. Provides that the IURC shall verify on a quadrennial basis: (1) the sufficiency of each utility's program; and (2) the program's compliance with the IURC's GAO. Provides that if the IURC determines that specified deficiencies exist with respect to a utility's program, the IURC: (1) shall notify the utility of the deficiency and provide the utility a time frame in which the utility must correct the deficiency; and (2) may require the utility to undergo an informal rate review. Provides that if a utility receives two consecutive notices of a deficiency from the IURC: (1) the IURC shall assert jurisdiction over the rates and charges of the utility; and (2) the utility must undergo base rate cases under the statutory procedure that applies to wastewater utilities that have been issued two enforcement orders by the department of environmental management. Provides that if a utility receives three consecutive notices of a deficiency over the course of three consecutive verifications, the IURC may initiate a receivership proceeding with respect to the utility. Authorizes the IURC to enter into an agreement with: (1) the department of environmental management; and (2) the Indiana finance authority; to carry out these requirements. Authorizes the IURC to delegate its authority to: (1) review reports submitted by utilities under the bill's provisions; and (2) issue determinations and notices of deficiency; to technical staff, subject to the right of a utility to appeal a determination by technical staff to the full IURC. Provides that beginning January 1, 2027, the governing body of a utility must, on at least a quadrennial basis, complete a training or continuing education program that: (1) includes instruction on specified topics; and (2) is offered by: (A) the IURC; (B) the drinking water and wastewater infrastructure research and extension program; or (C) a statewide not-for-profit association for rural water or wastewater utilities.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

Indiana utilities face new reporting rules

Beginning January 1, 2026, covered Indiana water and wastewater utilities must report every four years, even without state financing. Reports must show efforts to follow state asset-management guidelines, certify technical, management, legal, and financial ability, and describe federal orders. Reports filed after December 31, 2026, must also certify governing-body training during the four-year reporting period. Utilities with fewer than 1,000 customers can use simplified reporting. Asset-management information submitted with an Indiana Finance Authority aid application can satisfy the implementation-evidence requirement, but other required information must still be included.

Utility boards must train, with low-cost options

Beginning January 1, 2027, covered water and wastewater utility governing bodies must complete approved training at least every four years. Training covers system asset management, duties to act responsibly for the utility, financial management, and environmental rules. Approved providers include the state utility commission, the state water infrastructure research and extension program, and qualifying statewide nonprofit associations. The commission and extension program must each offer at least one qualifying program at low or no cost; nonprofit associations are exempt from this price rule. The commission must publish its provider list by January 1, 2027.

Utility failures trigger state rate oversight

The Indiana Utility Regulatory Commission checks utilities’ asset-management programs every four years for compliance and operating ability. When it finds problems, it must notify the utility and set a correction deadline; it can require an informal rate review. Two consecutive deficient reviews require state control over rates and formal rate cases, which can change customers’ bills. Three consecutive deficient reviews allow the Commission to start a receivership case to place the utility under outside management. After the required rate-oversight period, a utility can seek withdrawal if the Commission finds its report sufficient, subject to other applicable laws.

Sponsors & Cosponsors

Sponsor

  • Jim Pressel

    Republican • House

Cosponsors

  • Blake Doriot

    Republican • Senate

  • Edmond Soliday

    Republican • House

  • Eric Koch

    Republican • Senate

  • Mike Bohacek

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 310 • No: 197

House vote • 4/3/2025

House concurred with Senate amendments

Yes: 90 • No: 0

Senate vote • 3/25/2025

Third reading: passed

Yes: 45 • No: 2

House vote • 2/17/2025

Third reading: passed

Yes: 95 • No: 0

House vote • 2/13/2025

Amendment #1 (Hamilton) failed

Yes: 27 • No: 65

House vote • 2/13/2025

Amendment #2 (Pryor) failed

Yes: 27 • No: 67

House vote • 2/13/2025

Amendment #5 (Pryor) failed

Yes: 26 • No: 63

Actions Timeline

  1. Signed by the Governor

    4/16/2025House
  2. Public Law 91

    4/16/2025House
  3. Signed by the President of the Senate

    4/9/2025Senate
  4. Signed by the President Pro Tempore

    4/8/2025Senate
  5. Signed by the Speaker

    4/7/2025House
  6. House concurred with Senate amendments; Roll Call 366: yeas 90, nays 0

    4/3/2025House
  7. Motion to concur filed

    4/3/2025House
  8. Returned to the House with amendments

    3/26/2025Senate
  9. Third reading: passed; Roll Call 287: yeas 45, nays 2

    3/25/2025Senate
  10. Second reading: ordered engrossed

    3/24/2025Senate
  11. Committee report: amend do pass, adopted

    3/20/2025Senate
  12. Senator Doriot added as third sponsor

    3/17/2025Senate
  13. First reading: referred to Committee on Utilities

    3/3/2025Senate
  14. Referred to the Senate

    2/18/2025House
  15. Senate sponsors: Senators Koch and Bohacek

    2/17/2025House
  16. Third reading: passed; Roll Call 176: yeas 95, nays 0

    2/17/2025House
  17. Representative Soliday added as coauthor

    2/17/2025House
  18. Second reading: amended, ordered engrossed

    2/13/2025House
  19. Amendment #5 (Pryor) failed; Roll Call 149: yeas 26, nays 63

    2/13/2025House
  20. Amendment #1 (Hamilton) failed; Roll Call 150: yeas 27, nays 65

    2/13/2025House
  21. Amendment #2 (Pryor) failed; Roll Call 151: yeas 27, nays 67

    2/13/2025House
  22. Amendment #4 (Burton) prevailed; voice vote

    2/13/2025House
  23. Committee report: amend do pass, adopted

    2/11/2025House
  24. Authored by Representative Pressel

    1/21/2025House
  25. First reading: referred to Committee on Utilities, Energy and Telecommunications

    1/21/2025House

Bill Text

  • Engrossed House Bill (S)

  • Enrolled House Bill (H)

  • House Bill (H)

  • Introduced House Bill (H)

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