§ 8-1-2-128 — Nonjurisdictional water or wastewater utilities; quadrennial reports on asset management program; general administrative order by commission; required training or continuing education

(a) This section applies to a water or
wastewater utility regardless of whether the water or wastewater utility
has applied for or received a grant, loan, or other financial assistance
from the authority under IC 5-1.2-10.
(b) The following definitions apply throughout this section:
(1) "Authority" refers to the Indiana finance authority established
by IC 5-1.2-3-1.
(2) "Commission" refers to the Indiana utility regulatory
commission created by IC 8-1-1-2.
(3) "Water or wastewater utility" means:
(A) a public utility (as defined in section 1(a) of this chapter);
(B) a municipally owned utility (as defined in section 1(h) of
this chapter);
(C) a not-for-profit utility (as defined in section 125(a) of this
chapter);
(D) a cooperatively owned corporation;
(E) a conservancy district established under IC 14-33; or
(F) a regional water district established under IC 13-26;
that provides water or wastewater service to the public in Indiana
for compensation and that is not under the jurisdiction of the
commission for approval of rates and charges.
(c) Beginning January 1, 2026, a water or wastewater utility shall
submit to the commission, on a quadrennial basis, a report regarding
the status of the water or wastewater utility's asset management
program, as defined in the guidelines of the authority under IC 5-1.2-10. The report required under this subsection:
(1) shall be made in compliance with, and according to a schedule
set forth in:
(A) the commission's general administrative order under
subsection (h); and
(B) any other general administrative orders of the commission
that the commission determines to be relevant; and
(2) must include information:
(A) demonstrating the water or wastewater utility's efforts to
implement the guidelines under IC 5-1.2-10 for asset
management programs; and
(B) certifying that:
(i) the water or wastewater utility has the technical,
managerial, legal, and financial capability to support those
efforts; and
(ii) in the case of a report submitted after December 31, 2026,
the governing body of the water or wastewater utility has
completed a training or continuing education program
described in subsection (j) at least one (1) time during the
four (4) year period covered by the report.
Evidence that a water or wastewater utility has submitted an asset
management program to the authority in connection with an application
for a grant, loan, or other financial assistance under IC 5-1.2 may be
provided by the water or wastewater utility to satisfy the requirement
under subdivision (2)(A), as long as the water or wastewater utility
provides all other information required under this section and under the
commission's general administrative order under subsection (h). In
addition to providing the required information concerning the water or
wastewater utility's asset management program, a water or wastewater
utility shall also include in a report required by this subsection
information regarding the status of any federal consent decree or other
federal order to which the water or wastewater utility is subject at the
time the report is submitted.
(d) Subject to subsection (i), the commission shall verify, on a
quadrennial basis, that the asset management program of each water or
wastewater utility is sufficient and complies with the commission's
general administrative order under subsection (h). If the commission
determines that a water or wastewater utility's asset management
program:
(1) does not comply with the commission's general administrative
order under subsection (h); or
(2) is otherwise insufficient to demonstrate that the water or
wastewater utility has the technical, managerial, legal, and
financial capability to operate and maintain the water or
wastewater utility's water or wastewater system;
the commission shall notify the water or wastewater utility of the
deficiency and provide a time frame in which the water or wastewater
utility must correct the deficiency. The commission may require the
water or wastewater utility to undergo an informal rate review in the
manner set forth in IC 8-1-1.9-5(e)(1).
(e) If a water or wastewater utility receives two (2) consecutive
notices of a deficiency under subsection (d) over the course of two (2)
consecutive verifications under subsection (d):
(1) the commission shall assert jurisdiction over the rates and
charges of the water or wastewater utility; and
(2) the water or wastewater utility must undergo base rate cases
before the commission in the manner set forth in IC 8-1-1.9-5(e)(2).
Notwithstanding IC 8-1-2.7 or IC 8-1-1.9-5(e)(3), if, after the required
period of rate regulation prescribed by IC 8-1-1.9-5(e)(2), the water or
wastewater utility submits a report to the commission under subsection
(c), and the commission determines that the report indicates that the
water or wastewater utility's asset management program is sufficient,
the water or wastewater utility may provide to the commission a notice
withdrawing the utility from the commission's jurisdiction.
(f) If a water or wastewater utility receives three (3) consecutive
notices of a deficiency under subsection (d) over the course of three (3)
consecutive verifications under subsection (d), the commission may
initiate a receivership proceeding with respect to the water or
wastewater utility.
(g) The commission may enter into an agreement with:
(1) the department of environmental management; and
(2) the authority;
to carry out the requirements set forth in this section.
(h) Before October 1, 2025, the commission shall issue a general
administrative order setting forth:
(1) the information required to be included in a report under
subsection (c);
(2) the procedures for submitting a report under subsection (c),
including a simplified alternative reporting form that:
(A) a water or wastewater utility with less than one thousand
(1,000) customers may elect to submit; and
(B) enables the water or wastewater utility to:
(i) demonstrate the water or wastewater utility's efforts to
implement the guidelines under IC 5-1.2-10 for asset
management programs; and
(ii) certify that the water or wastewater utility has the
technical, managerial, legal, and financial capability to
support those efforts;
(3) the quadrennial reporting schedule for submitting a report
under subsection (c);
(4) criteria to be used by the commission under subsection (d) to:
(A) determine whether a water or wastewater utility has
undertaken efforts to establish and implement an asset
management plan in accordance with the guidelines under IC 5-1.2-10; and
(B) identify a deficiency that would require a water or
wastewater utility to undergo an informal rate review in the
manner set forth in IC 8-1-1.9-5(e)(1); and
(5) any other information the commission considers relevant
under this section.
(i) The commission may delegate its authority to:
(1) review reports submitted by water or wastewater utilities
under subsection (c); and
(2) issue determinations and notices of deficiency under
subsection (d);
to technical staff. A determination or notice of deficiency issued by
technical staff may be appealed to the full commission. An action by
the commission under this section is subject to review under IC 8-1-3.
(j) Beginning January 1, 2027, the governing body of a water or
wastewater utility must, on at least a quadrennial basis, complete a
training or continuing education program that:
(1) includes instruction on:
(A) best practices for establishing, implementing, and
maintaining an asset management program, as defined in the
guidelines of the authority under IC 5-1.2-10;
(B) the fiduciary duties of governing bodies of water or
wastewater utilities;
(C) best practices with respect to the financial management of
water or wastewater utilities; and
(D) complying with environmental regulations; and
(2) is offered by one (1) of the following providers:
(A) The commission.
(B) The drinking water and wastewater infrastructure research
and extension program authorized by IC 5-1.2-11.5-10.
(C) A statewide not-for-profit association whose membership
includes rural water or wastewater utilities.
A provider listed in clause (A) or (B) must offer at least one (1)
training or continuing education program under this subsection at
low or no cost to governing bodies of water or wastewater
utilities. Not later than January 1, 2027, the commission shall
publish on the commission's website a list of providers offering a
training or continuing education program described in this
subsection.

Legislative History

As added by P.L.91-2025, SEC.1.