Ind. Code § 5-1.2-14-1 Request
Sec. 1. At the request of the department of environmental management, the authority shall carry out the program established under this chapter.
As added by P.L.189-2018, SEC.25.
Ind. Code ch. 5-1.2-14
Ind. Code ch. 5-1.2-14
in effectInd. Code § 5-1.2-14-1.2 "Non-revenue water"
Sec. 1.2. As used in this chapter, "non-revenue water" means the difference between the amount of water that enters a water distribution system and the amount of water provided to users of the water distribution system.
As added by P.L.56-2019, SEC.1.
Ind. Code § 5-1.2-14-2 Water infrastructure assistance program; establishment
Sec. 2. The water infrastructure assistance program is established.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-14-3 Water infrastructure assistance fund
Sec. 3. (a) The water infrastructure assistance fund is established as a source of money for grants, loans, and other financial assistance to, or for the benefit of, participants in the program.
(b) The fund shall be administered, held, and managed by the authority.
(c) The authority shall invest or cause to be invested all or a part of the fund, pursuant to the authority's investment policy, in a fiduciary account or accounts with a trustee that is a financial institution. Notwithstanding any other law, any investment under this subsection may be made by the trustee in accordance with one (1) or more trust agreements or indentures. A trust agreement or indenture referred to in this subsection may permit disbursements by the trustee to the authority, the department, the budget agency, a participant, or any other person as provided in the trust agreement or indenture.
(d) The fund consists of the following:
(1) Fees and other amounts received by the state, paid by the treasurer of state to the authority upon warrants issued by the state comptroller, and deposited in the fund.
(2) Appropriations to the fund from the general assembly.
(3) Grants and gifts of money to the fund.
(4) Proceeds of the sale of:
(A) gifts to the fund; and
(B) loans, evidences of other financial assistance, and other obligations evidencing the loans or other financial assistance, as provided in sections 5 through 9 of this chapter.
(5) Repayments of loans and other financial assistance from the fund, including interest, premiums, and penalties.
(e) Fees and other amounts received by the state pursuant to law concerning the funding of the water infrastructure assistance fund shall be paid monthly by the treasurer of state to the authority upon warrants issued by the state comptroller and deposited in the fund.
(f) The expenses of administering the fund shall be paid from money in the fund.
(g) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
(h) All:
(1) money accruing to the fund; and
(2) money allotted to the state under federal law for the purposes of the fund;
is continuously appropriated for the purposes specified in this chapter.
As added by P.L.189-2018, SEC.25. Amended by P.L.56-2019, SEC.2; P.L.9-2024, SEC.116.
Ind. Code § 5-1.2-14-4 Uses of money in water infrastructure assistance fund; grants, loans, and other financial assistance
Sec. 4. (a) Money in the water infrastructure assistance fund may be used to do the following:
(1) Provide grants, loans, and other financial assistance to or for the benefit of participants for:
(A) the planning, designing, acquisition, construction, renovation, improvement, or expansion of public water systems; and
(B) other activities necessary or convenient to complete the tasks referred to in clause (A) whether or not the other activities are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
(2) Provide grants, loans, or other financial assistance to or for the benefit of participants for:
(A) the planning, designing, acquisition, construction, renovation, improvement, or expansion of wastewater or storm water collection and treatment systems; and
(B) other activities necessary or convenient to complete the tasks referred to in clause (A) whether or not the other activities are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
(3) Provide grants, loans, or other financial assistance to or for the benefit of participants for the planning, designing, acquisition, construction, renovation, improvement, or expansion of septic relief systems in accordance with guidelines of the authority.
(4) Provide grants to political subdivisions for tasks associated with the development and preparation of:
(A) long term control plans;
(B) use attainability analyses; and
(C) storm water management programs.
(5) Undertake tasks associated with the development and preparation of water, wastewater, and storm water infrastructure and resource analyses.
(6) Conduct all other activities that are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
(b) The authority may make loans or provide other financial assistance from the water infrastructure assistance fund to or for the benefit of a participant to do any of the following:
(1) Establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the fund (including financial institutions) for a purpose permitted by this chapter.
(2) Provide interest subsidies.
(3) Pay financing charges, including interest on the loan or other financial assistance:
(A) during design and construction of a water or wastewater infrastructure project based upon a viable financial plan; and
(B) for a reasonable period after the completion of construction.
As added by P.L.189-2018, SEC.25. Amended by P.L.56-2019, SEC.3; P.L.18-2022, SEC.6.
Ind. Code § 5-1.2-14-5 Guidelines; interest rate or parameters
Sec. 5. (a) The authority shall adopt guidelines to establish criteria for the making of grants, loans, and other financial assistance from the water infrastructure assistance fund.
(b) The authority shall establish:
(1) the interest rate; or
(2) parameters for establishing the interest rate;
on each loan made from the water infrastructure assistance fund, including parameters for establishing the amount of interest subsidies.
(c) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan under subsection (b), may take into account the following:
(1) Credit risk.
(2) Environmental, water quality, and health protection.
(3) Affordability.
(4) Other fiscal factors the authority considers relevant, including the wastewater or drinking water program's cost of funds and whether the financial assistance provided to a particular participant is taxable or tax exempt under federal law.
(d) Based on the factors set forth in subsection (c)(1) through (c)(4), more than one (1) interest rate may be established and used:
(1) for loans or other financial assistance to different participants; or
(2) for different loans or other financial assistance to the same participant.
As added by P.L.189-2018, SEC.25. Amended by P.L.56-2019, SEC.4.
Ind. Code § 5-1.2-14-6 Grants, loans, other financial assistance; conditions
Sec. 6. (a) The making of grants and loans and the providing of other financial assistance from the water infrastructure assistance fund to or for the benefit of participants under this chapter are subject to the following conditions:
(1) A grant, loan, or other financial assistance may be used:
(A) for:
(i) the planning, designing, acquiring, constructing, renovating, improving, or expanding of public water systems; and
(ii) other activities necessary or convenient to the completion of the tasks referred to in item (i);
(B) to:
(i) establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the fund (including financial institutions), for a purpose permitted by clause (A); or
(ii) provide interest subsidies;
(C) to pay financing charges, including interest on the loan during construction and for a reasonable period after the completion of construction; or
(D) to pay the following:
(i) Consultant, advisory, and legal fees.
(ii) Other costs or expenses necessary or incident to the making of grants, loans, or other financial assistance or the administration of the fund or the program.
(2) A grant may be used for tasks associated with the development and preparation of water infrastructure and resource analyses.
(3) The authority must establish the terms and conditions that the authority considers necessary or convenient to the making of grants or loans or providing of other financial assistance under this chapter.
(b) In addition to exercising its powers under subsection (a), the authority may also make grants or loans or provide other financial assistance from the fund to or for the benefit of a participant under the following conditions:
(1) A grant, loan, or other financial assistance may be used:
(A) for planning, designing, acquiring, constructing, renovating, improving, or expanding wastewater or storm water collection and treatment systems, and other activities necessary or convenient to the completion of these tasks;
(B) to:
(i) establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the water infrastructure assistance fund (including financial institutions), for a purpose permitted by clause (A); or
(ii) provide interest subsidies;
(C) to pay financing charges, including interest on the loan during construction and for a reasonable period after the completion of construction; or
(D) to pay:
(i) consultant, advisory, and legal fees; and
(ii) other costs or expenses necessary or incident to the grant, loan, or other financial assistance or the administration of the water infrastructure assistance fund or the infrastructure program.
(2) A grant may be used for tasks associated with the development and preparation of:
(A) long term control plans;
(B) use attainability analyses;
(C) storm water management programs; or
(D) other wastewater or storm water infrastructure and resource analyses.
(3) The authority must establish the terms and conditions that the authority considers necessary or convenient to the making of grants or loans or providing of other financial assistance under this chapter.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-14-7 Application; required submissions
Sec. 7. (a) An application for a grant, loan, or other financial assistance from the water infrastructure assistance fund must be accompanied by all papers and opinions required by the authority.
(b) The authority may require that an application for a loan or other financial assistance from the water infrastructure assistance fund be accompanied by the following:
(1) A certification and guarantee of signatures.
(2) A certification that, as of the date of the loan or other financial assistance, no litigation is pending challenging the validity of or entry into:
(A) the grant, loan, or other financial assistance; or
(B) any security for the loan or other financial assistance.
(3) Any other certifications, agreements, security, or requirements that the authority requests.
(4) An approving opinion of nationally recognized bond counsel.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-14-8 Asset management program, estimate of life cycle management costs, reports, and other requirements for loan or grant recipients
Sec. 8. (a) To receive a loan, grant, or other financial assistance from the water infrastructure assistance fund, a participant:
(1) must demonstrate that it has developed or is in the process of developing an asset management program, as defined in the guidelines of the authority, in the case of a loan, grant, or other financial assistance awarded before July 1, 2023;
(2) must:
(A) demonstrate that it has developed:
(i) an asset management program, as defined in the guidelines of the authority; and
(ii) an estimate of the life cycle management costs, as defined in the guidelines of the authority, that will be incurred over the useful life of the asset to be financed with the loan, grant, or other financial assistance;
not later than the time of submission of the participant's preliminary engineering report for any project for which the loan, grant, or other financial assistance would be provided;
(B) report to the authority on an ongoing basis, at such times as the authority shall prescribe, the actual life cycle management costs incurred by the participant over the useful life of the asset; and
(C) in the case of a participant that is not under the jurisdiction of the Indiana utility regulatory commission, must regularly report, at such times and in such manner as the authority shall prescribe, to all:
(i) customers;
(ii) counties; and
(iii) municipalities;
within the participant's service territory such information concerning the participant's asset management program and utility asset life cycle management costs as the authority may require;
in the case of a loan, grant, or other financial assistance awarded after June 30, 2023; and
(3) must demonstrate to the authority that it has a plan to participate with one (1) or more other participants in cooperative activities, which may include using the proceeds of the loan or grant to pay a part of the costs associated with a cooperative activity.
(b) To receive a loan or grant from the water infrastructure assistance fund for purposes of cybersecurity, a participant must satisfy the same requirements that are established under this chapter for loans or grants for projects for other purposes.
(c) A participant receiving a grant, loan, or other financial assistance from the water infrastructure assistance fund shall enter into a financial assistance agreement with the authority. A financial assistance agreement entered into under this section is a valid, binding, and enforceable agreement of the participant.
(d) After receiving a loan or grant from the water infrastructure assistance fund, a participant must maintain its asset management program:
(1) as long as the loan remains unpaid; or
(2) during the useful life of the asset financed with the loan or grant.
(e) In addition to meeting the other requirements established under this section, a participant must, if appropriate, conduct or participate in efforts to determine and eliminate the causes of non-revenue water in its water distribution system.
(f) Notwithstanding any other law, the authority may establish and implement requirements that:
(1) apply to loans and other financial assistance to be made to participants that are not political subdivisions; and
(2) are different from, or in addition to, requirements that apply to loans and financial assistance made to political subdivisions.
As added by P.L.189-2018, SEC.25. Amended by P.L.56-2019, SEC.5; P.L.18-2022, SEC.7.
Ind. Code § 5-1.2-14-8.2 Project prioritization system for awarding loans and grants; variables to be included
Sec. 8.2. (a) The authority shall establish a project prioritization system for the purposes of awarding loans and grants from the water infrastructure assistance fund. The project prioritization system must be based on a model that includes at least the following variables:
(1) The effect of a project on the environment and public health and safety.
(2) The effect upon the user rates and charges of participants.
(3) The existence of plans for collaboration with other entities.
(4) The existence of a plan to measure and manage non-revenue water.
(5) Whether an applicant is employing other best practices as determined by the authority.
(b) The authority shall use the results of the project prioritization system established under subsection (a) to create a project priority list, and shall use the project priority list in awarding grants, loans, and other financial assistance under this chapter. The authority may adjust the project priority list established under this section:
(1) if the authority determines that unforeseen circumstances require an adjustment; or
(2) in case of an emergency.
As added by P.L.56-2019, SEC.6. Amended by P.L.18-2022, SEC.8.
Ind. Code § 5-1.2-14-8.4 Utilities serving less than 3,200 customers
Sec. 8.4. The authority shall set aside forty percent (40%) of the water infrastructure assistance fund for purposes of providing grants, loans, and other financial assistance to or for the benefit of utilities serving less than three thousand two hundred (3,200) customers.
As added by P.L.56-2019, SEC.7.
Ind. Code § 5-1.2-14-8.6 Advisory services in connection with loan
Sec. 8.6. The authority may provide services to a participant in connection with a loan or other financial assistance from the water infrastructure assistance fund, including advisory services and other services.
As added by P.L.56-2019, SEC.8.
Ind. Code § 5-1.2-14-9 Selling of loans
Sec. 9. (a) The authority may sell loans, evidences of other financial assistance, and other obligations evidencing the loans or other financial assistance from the water infrastructure assistance fund:
(1) periodically;
(2) at any price; and
(3) on terms acceptable to the authority.
(b) Proceeds of sales under subsection (a) shall be deposited in:
(1) the water infrastructure assistance fund;
(2) the wastewater revolving loan fund established by IC 5-1.2-10;
(3) the drinking water revolving loan fund established by IC 5-1.2-10; or
(4) the supplemental drinking water and wastewater assistance fund established by IC 5-1.2-11;
at the direction of the authority.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-14-10 Pledging of loans
Sec. 10. (a) The authority may pledge loans, evidences of other financial assistance, and other obligations evidencing the loans or other financial assistance from the water infrastructure assistance fund to secure other loans or financial assistance from:
(1) the water infrastructure assistance fund;
(2) the wastewater revolving loan fund established by IC 5-1.2-10;
(3) the drinking water revolving loan fund established by IC 5-1.2-10; or
(4) the supplemental drinking water and wastewater assistance fund established by IC 5-1.2-11;
for the benefit of participants.
(b) The terms of a pledge under this section must be acceptable to the authority.
(c) Notwithstanding any other law, a pledge of property made by the authority under this section is binding from the time the pledge is made. Revenues, other money, or other property pledged and thereafter received are immediately subject to the lien of the pledge without any further act. The lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against:
(1) the authority;
(2) the budget agency; or
(3) the water infrastructure assistance fund;
regardless of whether the parties have notice of any lien.
(d) A resolution, an indenture, or another instrument by which a pledge is created under this section does not have to be filed or recorded, except in the records of the authority.
(e) Action taken to:
(1) enforce a pledge made under this section; and
(2) realize the benefits of the pledge;
is limited to the property pledged.
(f) A pledge under this section does not create a liability or indebtedness of the state.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-14-11 Report
Sec. 11. Not later than August 1 of each odd-numbered year through 2021, the public finance director shall prepare for the budget committee established by IC 4-12-1-3 and the legislative council a report that includes the following:
(1) Information concerning the financial assistance made available to participants from the water infrastructure assistance fund during the two (2) most recent fiscal years.
(2) Any other information requested by the budget committee and the legislative council.
The report must be submitted in an electronic format under IC 5-14-6.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-14-12 Requirement to maintain sufficient user charges
Sec. 12. The authority shall, if appropriate, require a participant receiving a loan or other financial assistance from the water infrastructure assistance fund to establish under applicable law and maintain sufficient user charges or other charges, fees, taxes, special assessments, or revenues available to the participant to:
(1) operate and maintain its water system or wastewater collection and treatment system; and
(2) pay the obligations of its water system or wastewater collection and treatment system, including all debt service associated with financial assistance from the water infrastructure assistance fund.
As added by P.L.56-2019, SEC.9.
Ind. Code § 5-1.2-14-13 Alternative of providing leveraged loan program
Sec. 13. (a) As an alternative to making loans or providing other financial assistance to participants, the authority may use the money in the water infrastructure assistance fund to provide a leveraged loan program and other financial assistance programs to or for the benefit of participants, including using money in the water infrastructure assistance fund to enhance the obligations of participants issued for the purposes of this chapter by:
(1) granting money to:
(A) be deposited in:
(i) a capital fund or reserve fund established under IC 5-1.2-4 or another statute or a trust agreement or indenture as contemplated by this chapter; or
(ii) an account established within a fund described in item (i); or
(B) provide interest subsidies;
(2) paying bond insurance premiums, reserve insurance premiums, or credit enhancement, liquidity support, remarketing, or conversion fees, or other similar fees or costs for obligations of a participant or for bonds issued by the authority, if credit market access is improved or interest rates are reduced; or
(3) guaranteeing all or a part of obligations issued by participants or bonds issued by the authority.
(b) A guarantee of obligations or bonds under subsection (a)(3) must be limited to money in the water infrastructure assistance fund. A guarantee under subsection (a)(3) does not create a liability or indebtedness of the state.
As added by P.L.56-2019, SEC.10.
Ind. Code § 5-1.2-14-14 Use of money in fund to establish leveraged loan program
Sec. 14. Notwithstanding any other law, money in the water infrastructure assistance fund, together with loan repayments to be deposited in the fund, may be used to establish a leveraged loan program or other financial assistance programs established in connection with the water infrastructure assistance fund.
As added by P.L.56-2019, SEC.11.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026