Article
What HEA 1459 means for Indiana water and wastewater utilities
Aug. 18, 2025 · Authored by Jeffrey P. Rowe
Indiana’s 2025 legislative session marked a pivotal moment for the future of the state’s water and wastewater infrastructure. With the passage of House Enrolled Act 1459 (HEA 1459), lawmakers have introduced a forward-looking policy that emphasizes not only regulatory oversight but also long-term sustainability and resilience in utility operations. This legislation signals a significant shift toward enhanced accountability, requiring utilities—particularly those not regulated by the Indiana Utility Regulatory Commission for rate-setting—to adopt structured asset management programs. By mandating regular reporting, capability certifications, and governance training, the law aims to ensure that water and wastewater systems across Indiana are better equipped to meet current demands and future challenges. In essence, HEA 1459 lays the groundwork for a more transparent, efficient, and resilient utility infrastructure statewide.
Creating a new path: Preparing for HEA 1459
Beginning January 1, 2026, HEA 1459 requires all Indiana water and wastewater utilities to develop, maintain an Asset Management Plan (AMP) and submit it to the IURC every four years -regardless of whether the utility has applied for or received financial assistance from the Indiana Finance Authority. This isn’t just a compliance exercise – it’s a strategic opportunity to future-proof operations, provide better rate management, elevate service delivery and ensure sustainability into the future.
Who does the law apply to:
- Public utility
- Municipally owned utility
- Not-for-profit utility
- Cooperatively owned corporation
- Conservancy district
- Regional water /wastewater district
Key provisions include:
- AMP submission: Utilities must submit a report regarding the status of the water or wastewater utility’s asset management program as defined under IC 5-1.2-10 every four years.
- Training: Governing bodies must complete training or continuing education once per four-year AMP cycle beginning January 1, 2027
- Transparency: Utilities must report the status of any federal orders or consent decrees.
- SRF Funding Applications: An AMP submitted to the SRF in connection with a grant/loan application during the four-year reporting period may satisfy the new AMP requirement.
- Regulatory review: The Indiana Utility Regulatory Commission (IURC) will assess the AMP's sufficiency and compliance. Deficiencies may trigger informal rate reviews. Consecutive deficiencies over two verification periods will lead to the Commission asserting jurisdiction over rates and charges, resulting in a base rate case. Three or more deficiencies over three consecutive reporting periods may initiate a receivership proceeding.
- Small Utilities (less than 1,000 customers): A simplified alternative reporting form will be allowed with more guidance forthcoming.
Navigating toward financial strength:
To ensure compliance and financial health, utilities should:
- Plan with purpose: Work with your professionals to develop a robust AMP that reflects both current and future needs.
- Invest in knowledge: Look for more guidance forthcoming from the IURC and prioritize ongoing training and education for leadership teams.
- Be transparent: Maintain clear and timely reporting.
- Stay informed: For more on HEA149 and how we can help plan for your utility’s AMP reporting needs, contact our team.
