# Indiana SB 426: Water utilities. Indiana SB 426, Water utilities., is a First Regular Session 124th General Assembly (2025) Senate bill sponsored by Eric Koch (Republican); status signed, last action 2025-04-03 (Signed by the Governor) (as of 2026-10-19). - Canonical: https://policyrisk.com/state-bill/IN-SB426-2025 - As of: 2026-10-19 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Indiana SB 426 - State: Indiana - Session: First Regular Session 124th General Assembly (2025) - Title: Water utilities. - Status: signed - Chamber: Senate - Introduced: 2025-01-13 - Last action: 2025-04-03, Signed by the Governor - Sponsor: Eric Koch (Republican) - Cosponsors: 7 - Subjects: utilities, the house - Touches household money: no - Roll calls: 2 (122 yes, 18 no in all) - Economic provisions PRIA read: 5 ## Summary Includes water utilities within the scope of the statute that subjects wastewater utilities that: (1) are not under the jurisdiction of the Indiana utility regulatory commission (IURC) for the approval of rates and charges; and (2) have been issued one or more enforcement orders by the department of environmental management; to a series of oversight actions by the IURC for each additional enforcement order, including rate review, rate regulation, and the initiation of a receivership proceeding. Makes a conforming amendment to the statute that governs the process by which water utilities and wastewater utilities may withdraw from the jurisdiction of the IURC. Amends the statute governing the acquisition of water utilities and wastewater utilities to require the IURC to consider and authorize mechanisms to allow utility companies to integrate into their systems, invest in, and earn on acquired utility assets, subject to a finding by the IURC that the proposed mechanism is just and reasonable and in the public interest. Amends the statute governing the recovery of costs for eligible infrastructure improvements made by water or wastewater utilities to provide that, in the case of a public utility (as defined in the Indiana Code), "infrastructure improvement costs" eligible for recovery include: (1) deferred depreciation expense; and (2) post in service carrying costs; for the eligible infrastructure improvements. Adds language to the Indiana Code chapter governing public water supplies to provide that a complaint: (1) seeking damages from a water utility; and (2) arising out of an alleged exposure to drinking water supplied by the water utility; is barred if the water supplied by the water utility met applicable regulatory standards under specified federal and state law. Amends the Indiana Code section prohibiting the department of natural resources (department) from regulating certain activities within the 100 year flood level of a water supply reservoir owned and operated by a municipality or a public utility for the purpose of providing water utility service to the public to also prohibit the department from ordering the closure or removal, or the partial closure or removal, of: (1) a dam that forms such a water supply reservoir; or (2) a dam that forms or contains a body of water that is used to supply one or more private water wells; if the closure or removal, or the partial closure or removal, of the dam would impact the provision of water utility service to the public or the supply of water to one or more private water wells. ## Bill overview: provisions PRIA read - Protection for dams supplying drinking water: benefit, low. Indiana's Department of Natural Resources cannot order covered water-supply reservoir dams closed or removed, even partly, when public water service would be affected. This protection covers municipal and public-utility reservoir dams. It also covers dams supplying private wells when closure or rem… - Limits on drinking water damage claims: cost, medium. Beginning July 1, 2025, the law bars certain damage claims against covered water utilities. The bar applies to claims about exposure to drinking water that met applicable safety standards. Those standards include the federal Safe Drinking Water Act, Indiana law, and Indiana State Board of Health ru… - More infrastructure costs eligible for recovery: cost, low. Beginning July 1, 2025, utilities can count more costs for eligible infrastructure improvements. These include deferred depreciation starting when the improvements enter service. They also include carrying costs after that date, compounded monthly using the commission's latest approved overall weig… - New earnings tools for utility acquisitions: mixed, low. Beginning July 1, 2025, the commission must authorize tools outside regular rate cases for utility acquisitions. These tools let companies combine acquired systems with their own, invest in them, and earn a return on acquired assets. They are in addition to the existing rate-base cost differential.… - Repeat utility violations trigger rate oversight: mixed, low. Beginning July 1, 2025, enforcement-based rate oversight extends to water utilities whose rates are not otherwise commission-approved. Qualifying wastewater orders must come after June 30, 2022; water orders must come after June 30, 2025. After a first order, an informal review checks whether rates… ## Sponsors and cosponsors - Sponsor: Eric Koch (Republican), Senate - Cosponsor: Alaina Shonkwiler (Republican), House - Cosponsor: Andrea Hunley (Democratic), Senate - Cosponsor: Blake Doriot (Republican), Senate - Cosponsor: Edmond Soliday (Republican), House - Cosponsor: J.D. Ford (Democratic), Senate - Cosponsor: Jean Leising (Republican), Senate - Cosponsor: Stacey Donato (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-03-20 | House | Third reading: passed | pass | 76 | 15 | | | 2025-02-11 | Senate | Third reading: passed | pass | 46 | 3 | | ## Actions (23) - 2025-04-03: Signed by the Governor (Senate) - 2025-04-03: Public Law 24 (Senate) - 2025-03-27: Signed by the President of the Senate (Senate) - 2025-03-24: Signed by the President Pro Tempore (Senate) - 2025-03-24: Signed by the Speaker (House) - 2025-03-21: Returned to the Senate without amendments (House) - 2025-03-20: Third reading: passed; Roll Call 292: yeas 76, nays 15 (House) - 2025-03-20: Representative Hamilton removed as cosponsor (House) - 2025-03-20: Representatives Shonkwiler and Hamilton added as cosponsors (House) - 2025-03-17: Second reading: ordered engrossed (House) - 2025-03-13: Committee report: do pass, adopted (House) - 2025-03-03: First reading: referred to Committee on Utilities, Energy and Telecommunications (House) - 2025-02-12: Referred to the House (Senate) - 2025-02-11: House sponsor: Representative Soliday (Senate) - 2025-02-11: Senators Leising, Ford J.D., Donato added as coauthors (Senate) - 2025-02-11: Senator Hunley added as third author (Senate) - 2025-02-11: Third reading: passed; Roll Call 108: yeas 46, nays 3 (Senate) - 2025-02-10: Senator Doriot added as second author (Senate) - 2025-02-10: Second reading: amended, ordered engrossed (Senate) - 2025-02-10: Amendment #1 (Koch) prevailed; voice vote (Senate) - 2025-02-06: Committee report: amend do pass, adopted (Senate) - 2025-01-13: Authored by Senator Koch (Senate) - 2025-01-13: First reading: referred to Committee on Utilities (Senate) ## Bill text - Engrossed Senate Bill (H): [PDF](https://api.iga.in.gov/2025/bills/SB0426/versions/SB0426.03.ENGS?format=pdf) - Enrolled Senate Bill (S): [PDF](https://api.iga.in.gov/2025/bills/SB0426/versions/SB0426.05.ENRH?format=pdf) - Introduced Senate Bill (S): [PDF](https://api.iga.in.gov/2025/bills/SB0426/versions/SB0426.01.INTR?format=pdf) - Senate Bill (S): [PDF](https://api.iga.in.gov/2025/bills/SB0426/versions/SB0426.02.COMS?format=pdf), [PDF](https://api.iga.in.gov/2025/bills/SB0426/versions/SB0426.04.COMH?format=pdf) ## Related bills - SB 324: Criminal procedures. (signed) - SB 231: Various corrections matters. (signed) - SB 80: Code publication. (signed) - SB 453: Various tax matters. (signed) - SB 464: Financial institutions and consumer credit. (signed) - SB 371: Workforce matters. (signed) ## Sources - [Engrossed Senate Bill (H) (PDF)](https://api.iga.in.gov/2025/bills/SB0426/versions/SB0426.03.ENGS?format=pdf) - [Enrolled Senate Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/SB0426/versions/SB0426.05.ENRH?format=pdf) - [Introduced Senate Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/SB0426/versions/SB0426.01.INTR?format=pdf) - [Senate Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/SB0426/versions/SB0426.02.COMS?format=pdf) - [Senate Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/SB0426/versions/SB0426.04.COMH?format=pdf) ## Related - [SB 324: Criminal procedures.](https://policyrisk.com/state-bill/IN-SB324-2025) - [SB 231: Various corrections matters.](https://policyrisk.com/state-bill/IN-SB231-2025) - [SB 80: Code publication.](https://policyrisk.com/state-bill/IN-SB80-2025) - [SB 453: Various tax matters.](https://policyrisk.com/state-bill/IN-SB453-2025) - [SB 464: Financial institutions and consumer credit.](https://policyrisk.com/state-bill/IN-SB464-2025) - [SB 371: Workforce matters.](https://policyrisk.com/state-bill/IN-SB371-2025) - [Indiana bills](https://policyrisk.com/states/indiana/bills) - [Indiana state hub](https://policyrisk.com/states/indiana) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/IN-SB426-2025 (as of 2026-10-19).