Committee advances bill requiring notice for utility main extensions

The Senate Local Government Committee moved Senate Bill 6 forward after testimony from utilities, local governments and residents about notice when water or wastewater mains are extended beyond municipal jurisdictions.

Sen. Rick Niemeyer, the bill—s sponsor, told the committee the measure requires utilities to notify the local plan commission and to send certified mail to affected property owners when a main-extension project enters areas outside a utility—s jurisdiction. "It's not to stop the project," Niemeyer said, adding the bill does not change eminent-domain authority and is intended to make affected landowners aware of projects that may affect property rights.

Supporters including David Van Gilder of the Hoosier Environmental Council and Kerwin Olsen of the Citizens Action Coalition said the bill increases transparency. "Any measure that allows greater transparency and additional, upfront notice to residents who might be affected by utility easements across their land is a good thing," Van Gilder said. Kerwin Olsen said he preferred the original version that would have required in-person public meetings for some projects but supported the amended bill's increased notice.

Representatives of utilities expressed concerns about the amendment—s reach and potential administrative costs. Drake Abramson, governmental affairs lead for Indiana American Water, said utilities share the goal of informing affected landowners but warned a uniform outreach standard may apply to projects of widely varying size and could increase legal and administrative costs, which "ultimately will impact our customers through rates." He said voluntary negotiation and purchase offers usually begin a meaningful dialogue with landowners and that condemnation is used only rarely.

A Crown Point resident, Susan McKendree, testified she was neutral on the bill but urged public meetings for large projects after describing sudden rate increases tied to a proposed new wastewater treatment plant in her city. McKendree said the plant site had been donated by an associate of a developer proposing about 4,000 homes and 250-plus commercial parcels and that local officials had not adequately explained contractual arrangements. Her testimony called attention to how notice and local review interact with municipal decisions on infrastructure and rates.

Committee members discussed whether larger projects (for example, multi-mile main extensions) should have a higher notice or public-meeting threshold. Niemeyer said he and utilities have discussed thresholds and that some administrative costs could be borne within utility business lines rather than being passed directly to ratepayers.

After closing remarks, the committee moved SB6, called the roll and the clerk reported the vote as 8-0 in favor. The committee recorded the bill as passed and proceeded to the next agenda item. The transcript does not specify the bill—s next legislative step.