Ind. Code ch. 5-1.2-14.5

Ind. Code ch. 5-1.2-14.5
in effect

Ind. Code § 5-1.2-14.5-1 "Non-revenue water"

Sec. 1. 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.154-2021, SEC.8.

Ind. Code § 5-1.2-14.5-2 Grant program established

Sec. 2. The water infrastructure grant program is established. As added by P.L.154-2021, SEC.8.

Ind. Code § 5-1.2-14.5-3 Water infrastructure grant fund

Sec. 3. (a) The water infrastructure grant 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 gifts to the fund. (5) Repayments of loans and other financial assistance from the fund. (e) Fees and other amounts received by the state pursuant to law concerning the funding of the water infrastructure grant fund shall be paid by the treasurer of state to the authority upon the authority's request with 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.154-2021, SEC.8. Amended by P.L.9-2024, SEC.117.

Ind. Code § 5-1.2-14.5-4 Uses of money in water infrastructure grant fund

Sec. 4. Money in the water infrastructure grant 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 water systems; and (B) other activities necessary or convenient to complete the tasks referred to in clause (A), regardless of whether 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), regardless of whether 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, loans, or other financial assistance to or for the benefit of participants for any eligible activity (as defined in IC 5-1.2-2-23). (5) 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. (6) Undertake tasks associated with the development and preparation of water, wastewater, and storm water infrastructure and resource analyses. (7) Conduct all other activities that are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act. As added by P.L.154-2021, SEC.8. Amended by P.L.18-2022, SEC.9.

Ind. Code § 5-1.2-14.5-5 Allocation of grants, loans, and other financial assistance; uses; conditions

Sec. 5. (a) The authority shall adopt guidelines to establish criteria for the making of grants, loans (including parameters for establishing interest rates, if any, on such loans), and other financial assistance from the water infrastructure grant fund. (b) The making of grants, the making of loans, and the providing of other financial assistance from the water infrastructure grant 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 water systems; and (ii) other activities necessary or convenient to the completion of the tasks referred to in item (i); or (B) 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 the providing of other financial assistance under this chapter. (c) In addition to exercising the authority's powers under subsection (b), the authority may also make grants, make 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 or for any eligible activity (as defined in IC 5-1.2-2-23), and for other activities necessary or convenient to the completion of these tasks; or (B) 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 grant 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, the making of loans, or the providing of other financial assistance under this chapter. As added by P.L.154-2021, SEC.8.

Ind. Code § 5-1.2-14.5-6 Application for grant, loan, or other financial assistance

Sec. 6. (a) An application for a grant, loan, or other financial assistance from the water infrastructure grant fund must be accompanied by all papers and opinions required by the authority. (b) The authority may require that an application for a grant, a loan, or other financial assistance from the water infrastructure grant fund be accompanied by the following: (1) A certification and guarantee of signatures. (2) A certification that, as of the date of the grant, loan, or other financial assistance, no litigation is pending challenging the validity of or entry into the grant, 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.154-2021, SEC.8.

Ind. Code § 5-1.2-14.5-7 Asset management program, estimate of life cycle management costs, reports, and other requirements for loan or grant recipients

Sec. 7. (a) To receive a loan, grant, or other financial assistance from the water infrastructure grant 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 grant 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 grant fund shall enter into an agreement with the authority. An 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 grant fund, a participant must maintain its asset management program 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 grants, 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 grants, loans, and financial assistance made to political subdivisions. As added by P.L.154-2021, SEC.8. Amended by P.L.18-2022, SEC.10.

Ind. Code § 5-1.2-14.5-8 Project prioritization system for awarding loans and grants; variables to be included

Sec. 8. (a) The authority shall establish a project prioritization system for the purposes of awarding loans and grants from the water infrastructure grant 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, and the affordability of, 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. (6) Whether the project includes an expansion of storm water collection and treatment systems. (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.154-2021, SEC.8. Amended by P.L.18-2022, SEC.11.

Ind. Code § 5-1.2-14.5-9 Advisory services in connection with grant, loan, or other financial assistance

Sec. 9. The authority may provide services to a participant in connection with a grant, a loan, or other financial assistance from the water infrastructure grant fund, including advisory services and other services. As added by P.L.154-2021, SEC.8.

Ind. Code § 5-1.2-14.5-10 Report

Sec. 10. Not later than August 1 of each odd-numbered year through 2023, 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 grants, loans, or other financial assistance made available to participants from the water infrastructure grant 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.154-2021, SEC.8.

Ind. Code § 5-1.2-14.5-11 Requirement to maintain sufficient user charges

Sec. 11. The authority shall, if appropriate, require a participant receiving a loan or other financial assistance from the water infrastructure grant 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 grant fund. As added by P.L.154-2021, SEC.8.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026