Senate Bill 4, a proposed piece of legislation aimed at regulating large water withdrawals in Indiana, is set to advance from a key House committee amidst ongoing concerns surrounding the Limitless Exploration/Advanced Pace (LEAP) economic development project’s water needs. Authored by Sen. Eric Koch, the bill intends to establish the state’s first water withdrawal regulations, necessitating a certificate of public convenience and necessity for any utility company or developer planning to transport more than 10 million gallons of water daily over distances exceeding 30 miles.
During a committee meeting, Koch emphasized the importance of balancing economic growth with responsible water management. Prospective developers would need to submit a comprehensive application to the Indiana Utility Regulatory Commission (IURC), addressing the project’s purpose, volume, costs, environmental impact, and ratepayer burden. A public hearing would also be required as part of the approval process, which would involve potential audits and revocations overseen by the regulatory commission.
Economic and Environmental Considerations
Rep. Ed Soliday, chair of the House Utilities, Energy, and Telecommunications Committee, did not call for an immediate vote on the bill, preferring to allow time for a minor amendment regarding extensions of water mains, which typically don’t exceed 30 miles. He expressed confidence that the bill would be voted on in committee next week before advancing to the House floor for further consideration. Both Koch and Soliday stressed the bill’s relevance to broader water management policies, especially in light of mounting economic and environmental considerations.
The bill has garnered particular relevance due to the LEAP Research and Innovation District in Boone County, which faces significant water supply challenges. The district aims to attract water-intensive advanced manufacturing industries like microelectronics and life sciences but lacks sufficient local water resources. While initial plans involved a 35-mile pipeline from the Wabash River aquifer, state officials eventually opted for an extension of the Citizens Energy system, with the state approving substantial financial support for the project.
Project and Industry Implications
The situation surrounding the LEAP project underscores the urgency of implementing regulations to ensure sustainable water usage and distribution. As business sector lobbyists have voiced support, there have also been recommendations for additional environmental and ratepayer protections. This points to a broader understanding among stakeholders that comprehensive water management policies are crucial for both current and future economic development initiatives across the state.
The LEAP District has become a focal point in the debate over Senate Bill 4, highlighting how significant infrastructural projects can strain local resources. Policymakers are increasingly aware of the need for stringent guidelines to manage large-scale water withdrawals effectively. Projects of this magnitude require a transparent, regulated framework to prevent over-extraction that could harm the environment and local communities.
The Road Ahead
Senate Bill 4, addressing the regulation of significant water withdrawals in Indiana, is progressing from a key House committee. This bill is particularly relevant due to the water demands of the Limitless Exploration/Advanced Pace (LEAP) economic development project. Authored by Sen. Eric Koch, the bill aims to establish regulations requiring a certificate of public convenience and necessity for any utility or developer planning to move over 10 million gallons of water daily over distances greater than 30 miles.
During a committee meeting, Koch stressed the need to balance economic growth with prudent water management. Developers will need to submit a detailed application to the Indiana Utility Regulatory Commission (IURC). The application must outline the project’s purpose, water volume, costs, environmental impact, and ratepayer effects. Additionally, a public hearing will be necessary, and there will be provisions for audits and potential revocations managed by the commission. This process is intended to ensure responsible and sustainable water use in the state.
