On April 2, 2025, Indiana's Senate introduced Senate Bill 4, a significant piece of legislation aimed at regulating the construction of long-haul water pipelines by utilities. This bill seeks to ensure that any water utility planning to build such infrastructure first obtains a Certificate of Public Convenience and Necessity (CPCN) from the Indiana Utility Regulatory Commission (IURC). The CPCN process is designed to assess the necessity and impact of proposed projects, thereby safeguarding public interests and environmental considerations.

Key provisions of Senate Bill 4 require water utilities to submit detailed applications for a CPCN, including specific information that the IURC must evaluate before granting approval. This includes findings related to the project's necessity, potential environmental impacts, and the utility's ability to manage the project effectively. Additionally, the bill outlines conditions under which utilities may recover costs incurred during the CPCN process through customer rates, ensuring that financial burdens are transparently managed.

The introduction of this bill comes amid growing concerns about water resource management in Indiana, particularly as demand for water infrastructure increases. Proponents argue that the legislation is crucial for protecting communities from unnecessary or harmful pipeline projects, while critics express concerns about potential delays in infrastructure development and the implications for water supply reliability.

The legislative journey of Senate Bill 4 has seen broad support, passing the Senate unanimously with a vote of 48-0 and receiving favorable reports from the House Committee on Utilities, Energy, and Telecommunications. However, debates surrounding the bill have highlighted differing views on regulatory oversight versus the need for efficient utility operations.

As the bill moves forward, its implications could be far-reaching. Experts suggest that by tightening regulations on water pipeline construction, Indiana may set a precedent for other states grappling with similar issues. The bill's effective date is set for July 1, 2025, and its passage could reshape the landscape of water utility management in Indiana, balancing the need for infrastructure development with environmental stewardship and public accountability.

In conclusion, Senate Bill 4 represents a pivotal step in Indiana's approach to water resource management, reflecting a growing recognition of the importance of regulatory frameworks in safeguarding public interests. As the state prepares for the bill's implementation, stakeholders will be closely monitoring its impact on both utility operations and community water access.