IURC bill narrows proposed fee increase, aligns pipeline penalties with federal standards

The Appropriations Committee on Nov. 6 amended and approved Senate Bill 421, an agency bill for the Indiana Utility Regulatory Commission, after brief debate over a sponsor amendment that removed a proposed fee increase.

The bill, presented by Senator Cook and described in detail by Luke Wilson of the IURC, adds a definition of “court reporter” in the utility code, permits the IURC to publish required public notices electronically if a newspaper isn’t printed three or more times a week, repeals a never‑used program statute for RMCs requested by the Office of Economic Development, and aligns the state’s maximum civil penalties for pipeline safety violations with federal maximums.

The penalty alignment drew the most questioning. Senator Freeman pressed whether the state was compelled to raise penalties because federal authorities had taken over enforcement. Luke Wilson, IURC, said PHMSA (the Pipeline and Hazardous Materials Safety Administration) indicated the federal government would enforce the higher penalties unless the state adopted comparable amounts and chose to continue enforcing them at the state level. "If we want to enforce these penalties at the state level and have those penalties go to the state general fund," Wilson said, "the state must raise its penalties to substantially match the federal penalties." He added that without the change, PHMSA would continue enforcing penalties in the state and fines would go to the U.S. Treasury rather than the state general fund.

Wilson told the committee the federal shift already took effect Jan. 1 and that states including Idaho, Missouri, Mississippi and Michigan had faced the same issue. He explained the change affects natural gas pipelines and distribution systems, not electric utilities. In response to a question about funding, Wilson said the federal pipeline safety grant covers a significant portion of the state division’s costs (roughly two‑thirds previously), and that the state would expect some federal grant support for ongoing oversight; adopting the penalty alignment would allow civil penalties assessed by the IURC to return to the state general fund rather than be sent to the federal Treasury.

On the notice change, Wilson said IURC paralegals work with newspapers to know publication schedules and would publish notices electronically when appropriate. If parties in a docket believe notice was not published properly, they could notify the commission and that failure could jeopardize a commission order.

Clerk roll call showed unanimous committee support. A roll call in committee recorded 14 ayes and no nos; the committee announced the bill passed 14‑0.

The bill was amended on the floor of the committee to remove the proposed fee increase; the committee accepted the amendment by consent and advanced the bill as amended.