HB1459: Water and wastewater utility asset management.

Legislative Summary

Water and wastewater utility asset management. 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.