How Indiana Code 8-1-2-128 intends to transform the sustainability and reliability of water and wastewater services across the state.
In a significant effort to improve the sustainability and reliability of water and wastewater services in Indiana, the state enacted a landmark law, Indiana Code 8-1-2-128, via House Enrolled Act 1459 (2025). This legislation mandates that nearly all Indiana water and wastewater utilities report on their Asset Management Programs (AMPs) to the Indiana Utility Regulatory Commission (IURC) every four years. Implemented in January 2026, the law aims to ensure that utilities maintain their systems effectively, contributing to both infrastructure health and community sustainability.
Key Highlights of the Law
Mandatory Reporting: Effective January 1, 2026, utilities must submit detailed reports detailing their efforts to comply with the asset management guidelines set by the Indiana Finance Authority (IFA). This requirement underscores the state’s commitment to transparent and accountable water management practices.
Certification of Capability: The reports are not merely a formality. Utilities must certify their technical, managerial, legal, and financial capabilities (often referred to as TMLF) to maintain their systems effectively. This certification process aims to hold utilities accountable for their operational readiness and infrastructure management.
Training for Governing Bodies: To further enhance governance, starting January 1, 2027, utility board members will be required to complete a training program at least once every four years. This initiative acknowledges the critical role that informed leadership plays in managing utility systems.
Support for Small Utilities: Recognizing the unique challenges faced by smaller systems, the law provides an option for utilities serving fewer than 1,000 customers to use a simplified reporting form, helping to reduce compliance costs and administrative burden.
Who is Affected?
Almost all water and wastewater providers in Indiana are subject to these regulations, including:
- Public and municipally-owned utilities
- Not-for-profit entities and cooperatively-owned corporations
- Conservancy districts and regional water/sewer districts
Such inclusivity ensures that all areas of Indiana benefit from improved utility management practices.
Enforcement Measures
To ensure compliance, the law outlines a tiered enforcement framework for utilities that fail to meet the requirements. If a utility fails to comply, the Indiana Utility Regulatory Commission (IURC) will issue a deficiency notice and set a timeline for correction. That initial step can lead to an informal review of the utility’s rates. However, if the utility experiences two consecutive deficiencies, the IURC may take more stringent action by asserting jurisdiction over the utility’s rates and charges, triggering a formal base rate case. In the case of three consecutive deficiencies, the situation escalates further, granting the IURC the power to initiate receivership proceedings against the utility, signaling a serious breach of its obligations.
Conclusion
The enactment of Indiana Code 8-1-2-128 marks a significant step towards enhancing the operational efficiency and sustainability of Indiana’s water and wastewater utilities. By establishing clear reporting and accountability requirements, the law aims to secure the health of essential infrastructure for future generations. Utilities across Indiana must adapt to these new regulations, which ultimately aim to foster a more sustainable and reliable water management system in the state.
Let Jones & Henry help your utility comply.
Asset Management Plans are now a regulatory requirement. We’re here to assist.
