HB 1297

                                                          Introduced Version
           HOUSE BILL No. 1297
                 _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-1.2; IC 5-28; IC 36-7.
Synopsis: Water intensive facilities. Provides that if a proposed
economic development project includes proposed construction or
establishment of a facility that will consume an average of at least
500,000 gallons of water per day in ordinary operation (water intensive
facility), the Indiana finance authority (IFA) may not approve a bid for
the project, the Indiana economic development corporation (IEDC)
may not grant a job creation incentive for the project, and a local unit
may not provide financing for the project unless the IFA, IEDC, or
local unit: (1) provides notice of the proposed water intensive facility
to the water utility that provides water utility service to the proposed
location of the water intensive facility; (2) receives from the water
utility a plan for provision of water utility service to the water intensive
facility; (3) determines that the water utility's plan adequately ensures
that: (A) the water utility can reliably meet both the ordinary and peak
water demand of the water intensive facility; and (B) incremental costs
of supplying water to the water intensive facility will be allocated to
and paid by the water intensive facility; and (4) provides the water
utility's plan to the local plan commission.
Effective: July 1, 2026.
                               Burton
January 6, 2026, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
2026  IN 1297—LS 6724/DI 119
                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
 Constitution) is being amended, the text of the existing provision will appear in this style type,
 additions will appear in this style type, and deletions will appear in this style type.
   Additions: Whenever a new statutory provision is being enacted (or a new constitutional
 provision adopted), the text of the new provision will appear in this style type. Also, the
 word NEW will appear in that style type in the introductory clause of each SECTION that adds
 a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
 between statutes enacted by the 2025 Regular Session of the General Assembly.
                   HOUSE BILL No. 1297
     A BILL FOR AN ACT to amend the Indiana Code concerning
 utilities.
     Be it enacted by the General Assembly of the State of Indiana:
1     SECTION 1. IC 5-1.2-2-85 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2026]: Sec. 85. "Water intensive facility" means a facility that
4 consumes an average of at least five hundred thousand (500,000)
5 gallons of water per day in ordinary operation.
6     SECTION 2. IC 5-1.2-2-86 IS ADDED TO THE INDIANA CODE
7 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
8 1, 2026]: Sec. 86. "Water utility" has the meaning set forth in
9 IC 8-1-30.8-4.
10     SECTION 3. IC 5-1.2-9-6.4 IS ADDED TO THE INDIANA CODE
11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
12 1, 2026]: Sec. 6.4. A bid submitted in response to a notice published
13 under section 5 of this chapter must include a description of the
14 size and character of each improvement proposed by the bidder to
15 be constructed or established on the offered property. The
16 description must include:
17(1) the proposed location of the improvement;
 2026  IN 1297—LS 6724/DI 119
                                    2
1(2) the expected water consumption of the improvement,
2including:
3(A) an estimate of the amount, in gallons, of water the
4improvement will annually consume in ordinary operation;
5(B) an estimate of the rate, in gallons per day, of the
6improvement's peak water demand;
7(C) any expected seasonal variation in the improvement's
8water consumption; and
9(D) any special service requirements with regard to the
10improvement's water utility service;
11(3) the expected operating hours of the improvement; and
12(4) the date on which the improvement is expected to
13commence operation.
14    SECTION 4. IC 5-1.2-9-6.5 IS ADDED TO THE INDIANA CODE
15 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
16 1, 2026]: Sec. 6.5. (a) If a bid submitted in response to a notice
17 published under section 5 of this chapter includes proposed
18 construction or establishment of an improvement that the
19 authority determines, based on the information provided by the
20 bidder under section 6.4 of this chapter, will be a water intensive
21 facility, the authority shall provide notice of the proposed water
22 intensive facility to the water utility that provides water utility
23 service to the proposed location of the water intensive facility. The
24 notice must include the information submitted by the bidder with
25 regard to the water intensive facility under section 6.4 of this
26 chapter.
27    (b) Not later than thirty (30) days after receiving notice of a
28 proposed water intensive facility under subsection (a), a water
29 utility shall submit to the authority a plan for the water utility's
30 provision of water utility service to the water intensive facility. The
31 plan must include provisions specifically addressing how the water
32 utility will:
33(1) reliably meet both the ordinary and peak water demand of
34the water intensive facility; and
35(2) ensure that incremental costs of supplying water utility
36service to the water intensive facility are allocated to and paid
37by the water intensive facility.
38    SECTION 5. IC 5-1.2-9-7, AS ADDED BY P.L.189-2018,
39 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2026]: Sec. 7. The authority may reject any or all bids or may
41 make awards to the highest and best bidder or bidders. In determining
42 the highest and best bids, the authority may take into consideration the
 2026  IN 1297—LS 6724/DI 119
                                     3
1 following:
2      (1) The size and character of the improvements for the economic
3      development project as proposed by the bidder to be made on the
4      property and the terms and conditions of the consideration offered
5      by the bidder.
6      (2) The bidder's plans and ability to carry out the economic
7      development project with reasonable promptness.
8      (3) Whether the property and interests to be acquired by the
9      bidder will be leased or released for the economic development
10      project.
11      (4) The nature and extent of any obligations to be undertaken by
12      the authority in conjunction with the improvement of the property
13      or interests to be acquired for the economic development project
14      as proposed by the bidder.
15      (5) The potential impact of the bidder's proposal on the creation
16      of new employment or the retention of existing employment
17      resulting from the economic development project.
18      (6) The potential impact of the bidder's proposal to attract or
19      establish a major new business enterprise or to retain or expand
20      a significant existing business enterprise that will provide or
21      preserve gainful employment for the citizens of the state.
22      (7) The economic benefits to the state and its citizens that will
23      result from the economic development project, as proposed by the
24      bidder, including the dollar volume of new or preserved wages
25      and salaries, increases in or preservation of state and local
26      government tax revenues, the incremental economic benefits to
27      the citizens of the state, the state, and local governmental units
28      potentially resulting from the economic development project as
29      proposed by the bidder, and any other direct or indirect economic
30      benefit to the state and its citizens resulting from the economic
31      development project as proposed by the bidder.
32      (8) The potential impact and benefit to the state and its citizens of
33      the economic development project as proposed by the bidder from
34      the standpoint of both human and economic welfare.
35      (9) The plan submitted under section 6.5 of this chapter for
36      provision of water utility service to any water intensive
37      facility proposed in the bid.
38     SECTION 6. IC 5-1.2-9-8, AS ADDED BY P.L.189-2018,
39 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2026]: Sec. 8. (a) In making an award to the highest and best
41 bidder as provided in section 7 of this chapter, the authority shall
42 determine whether in its judgment the potential benefits to the state and
 2026  IN 1297—LS 6724/DI 119
                                     4
1 its citizens of the economic development project as proposed by the
2 bidder exceed the direct costs to the authority of acquiring the property
3 and interests being offered for sale or lease for the economic
4 development project less any sums to be paid by the successful bidder
5 pursuant to its bid.
6     (b) If a bid includes proposed construction or establishment of
7 a water intensive facility, the authority may make an award to the
8 bidder only if the authority determines that the plan for provision
9 of water utility service to the water intensive facility submitted by
10 a water utility under section 6.5 of this chapter adequately ensures
11 that:
12(1) the water utility can reliably meet both the ordinary and
13peak water demand of the water intensive facility; and
14(2) incremental costs of supplying water to the water intensive
15facility will be allocated to and paid by the water intensive
16facility.
17     (c) The authority's judgment concerning this determination the
18 determinations under this section shall be based on the economic
19 studies, analyses, and projections that the authority determines are
20 reasonably necessary.
21     (d) The authority's determination is determinations under this
22 section are final and conclusive.
23     SECTION 7. IC 5-1.2-9-13, AS ADDED BY P.L.189-2018,
24 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2026]: Sec. 13. The authority shall prepare a report that
26 includes the following:
27(1) briefly describes A brief description of the proposed
28economic development project.
29(2) Estimates of the number and expense of public works or
30services that would be made necessary or desirable by the
31proposed economic development project, including public ways,
32schools, water, sewers, street lights, and fire protection.
33(3) The plan submitted under section 6.5 of this chapter for
34provision of water utility service to any water intensive
35facility that is proposed to be constructed or established as
36part of the proposed economic development project.
37(3) (4) Estimates of the total costs of the proposed economic
38development project.
39(4) (5) For an economic development project that is not
40exclusively either a pollution control facility or an educational
41facility project, estimates of the number of jobs and the payroll to
42be created or saved by the project.
 2026  IN 1297—LS 6724/DI 119
                                     5
1      (5) (6) For educational facility projects, describes a description
2      of how the project promotes the educational enrichment
3      (including cultural, intellectual, scientific, or artistic
4      opportunities) of the people of the state. and
5      (6) (7) For pollution control facilities, describes a description of
6      the facilities and how they will abate, reduce, or prevent pollution.
7 The report shall be submitted to the executive director or chair of the
8 plan commission, if any, having jurisdiction over the economic
9 development project and, if the number of new jobs estimated exceeds
10 one hundred (100), to the superintendent of the school corporation
11 where the economic development project will be located. The
12 executive director or chair of the plan commission and the school
13 superintendent may formulate their written comments concerning the
14 report and transmit their comments, if any, to the authority within five
15 (5) days after the receipt of the report.
16     SECTION 8. IC 5-28-2-8 IS ADDED TO THE INDIANA CODE
17 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
18 1, 2026]: Sec. 8. "Water intensive facility" means a facility that
19 consumes an average of at least five hundred thousand (500,000)
20 gallons of water per day in ordinary operation.
21     SECTION 9. IC 5-28-2-9 IS ADDED TO THE INDIANA CODE
22 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
23 1, 2026]: Sec. 9. "Water utility" has the meaning set forth in
24 IC 8-1-30.8-4.
25     SECTION 10. IC 5-28-6-5.4 IS ADDED TO THE INDIANA CODE
26 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
27 1, 2026]: Sec. 5.4. The corporation shall require that an application
28 for a job creation incentive from the corporation must include a
29 description of the size and character of each improvement that the
30 applicant proposes to construct or establish with the benefit of the
31 job creation incentive. The description must include:
32      (1) the proposed location of the improvement;
33      (2) the expected water consumption of the improvement,
34      including:
35(A) an estimate of the amount, in gallons, of water the
36improvement will annually consume in ordinary operation;
37(B) an estimate of the rate, in gallons per day, of the
38improvement's peak water demand;
39(C) any expected seasonal variation in the improvement's
40water consumption; and
41(D) any special service requirements with regard to the
42improvement's water utility service;
 2026  IN 1297—LS 6724/DI 119
                                    6
1(3) the expected operating hours of the improvement; and
2(4) the date on which the improvement is expected to
3commence operation.
4    SECTION 11. IC 5-28-6-5.5 IS ADDED TO THE INDIANA CODE
5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
6 1, 2026]: Sec. 5.5. (a) If the corporation determines, based on
7 information included in an application for a job creation incentive
8 under section 5.4 of this chapter, that a proposed improvement
9 described in the application will be a water intensive facility, the
10 corporation shall provide notice of the proposed water intensive
11 facility to the water utility that provides water utility service to the
12 proposed location of the water intensive facility. The notice must
13 include the information included in the application with regard to
14 the water intensive facility under section 5.4 of this chapter.
15    (b) Not later than thirty (30) days after receiving notice of a
16 proposed water intensive facility under subsection (a), a water
17 utility shall submit to the corporation a plan for the water utility's
18 provision of water utility service to the water intensive facility. The
19 plan must include provisions specifically addressing how the water
20 utility will:
21(1) reliably meet both the ordinary and peak water demand of
22the water intensive facility; and
23(2) ensure that incremental costs of supplying water utility
24service to the water intensive facility are allocated to and paid
25by the water intensive facility.
26    (c) Upon receipt of a water utility's plan for provision of water
27 utility service to a water intensive facility under subsection (b), the
28 corporation shall provide the plan to the plan commission, if any,
29 having jurisdiction over the proposed location of the water
30 intensive facility.
31    (d) If an application for a job creation incentive includes
32 proposed construction or establishment of a water intensive
33 facility, the corporation may grant the job creation incentive to the
34 applicant only if the corporation determines that the plan for
35 provision of water utility service to the water intensive facility
36 submitted by a water utility under subsection (b) adequately
37 ensures that:
38(1) the water utility can reliably meet both the ordinary and
39peak water demand of the proposed water intensive facility;
40and
41(2) incremental costs of supplying water to the proposed
42water intensive facility will be allocated to and paid by the
 2026  IN 1297—LS 6724/DI 119
                                   7
1      water intensive facility.
2    SECTION 12. IC 36-7-1-21.5 IS ADDED TO THE INDIANA
3 CODE AS A NEW SECTION TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2026]: Sec. 21.5. "Water intensive facility"
5 means a facility that consumes an average of at least five hundred
6 thousand (500,000) gallons of water per day in ordinary operation.
7    SECTION 13. IC 36-7-1-21.6 IS ADDED TO THE INDIANA
8 CODE AS A NEW SECTION TO READ AS FOLLOWS
9 [EFFECTIVE JULY 1, 2026]: Sec. 21.6. "Water utility" has the
10 meaning set forth in IC 8-1-30.8-4.
11    SECTION 14. IC 36-7-2-15.1 IS ADDED TO THE INDIANA
12 CODE AS A NEW SECTION TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2026]: Sec. 15.1. A unit may provide
14 financing (as defined in IC 36-7-11.9-5) under this article for
15 construction or establishment of a proposed water intensive facility
16 only if the unit:
17      (1) provides to the water utility that provides water utility
18      service to the proposed location of the water intensive facility
19      notice that:
20(A) includes:
21(i) the proposed location of the water intensive facility;
22(ii) an estimate of the amount, in gallons, of water the
23water intensive facility will annually consume in
24ordinary operation;
25(iii) an estimate of the rate, in gallons per day, of the
26water intensive facility's peak water demand;
27(iv) a description of any expected seasonal variation in
28the water intensive facility's water consumption;
29(v) a description of any special service requirements with
30regard to the water intensive facility's water utility
31service;
32(vi) the expected operating hours of the water intensive
33facility; and
34(vii) the date on which the water intensive facility is
35expected to commence operation; and
36(B) requests that the water utility submit to the unit, not
37later than thirty (30) days after receiving the notice, a plan
38for provision of water utility service to the proposed water
39intensive facility that includes provisions specifically
40addressing how the water utility will:
41(i) reliably meet both the ordinary and peak water
42demand of the water intensive facility; and
 2026  IN 1297—LS 6724/DI 119
                                     8
1(ii) ensure that incremental costs of supplying water
2utility service to the water intensive facility are allocated
3to and paid by the water intensive facility;
4(2) determines that the plan submitted by the water utility in
5response to the notice under subdivision (1) adequately
6ensures that:
7(A) the water utility can reliably meet both the ordinary
8and peak water demand of the proposed water intensive
9facility; and
10(B) incremental costs of supplying water to the proposed
11water intensive facility will be allocated to and paid by the
12water intensive facility; and
13(3) provides the water utility's plan to the plan commission, if
14any, having jurisdiction over the proposed location of the
15water intensive facility.
 2026  IN 1297—LS 6724/DI 119