Present:

John Hardwick, Valparaiso Water, 219-462-6174, ext 302
Phil Smith, Smith Group Consulting, LLC, 317-788-8534
Pat Carroll, IDEM, Drinking Water Branch, 317-308-3281
Beth Millett, Borshoff Johnson Matthews, 317-631-6400
Kathy Humphrey, Veolia Water of Indianapolis, 317-263-6540
Scott Bell, OUCC, 317-233-1084
Doug Perry, City of Goshen, 574-534-5701
Mark Nye, DLZ Indiana, LLC, 574-236-4400
Greg Wright, GRW Engineers, 317-347-3651
Bob Veneck, OUCC, 317-233-3231
Jerry Webb, IURC, 317-232-2765
Larry Landis, IURC, 317-232-2706
Pat Spence, HNTB Corp, 317-636-4682
Howard Cundiff, ISDH, 317-233-7182
Bruno Trimboli, Mishawaka Utilities Water Div, 574-258-1652
John Stancati, South Bend Water Works, 574-235-5646
Stacy Sagar, Indiana American Water, 317-885-2447
David K. Baker, Indiana American Water, 317-885-2410
Terry Atherton, Indiana-American Nivio, 219-880-2367
Vince Griffin, State Chamber, 317-264-6881
Senator Beverly Gard

Chairman Hardwick opened the meeting with introductions.

Minutes from last meeting were approved.

Senator Beverly Gard (R, District 28)
Senator Gard reported on a variety of bills of interest but noted that there is not one major “mega” bill this year as there have been in years past.

• SB432, authored by Senator Gard at the request of IDEM, regarding increase in permit fees. IDEM will have to justify with budget officers and those affected by the potential increase.
• SB101, authored by Senator Gard, regarding environmental legal actions and cost of contamination clean up. Would allow suits to be filed to recover costs from any individual who may have had a part in that contamination; also specifies a 10-year statute of limitations applied to environmental legal actions. 
• SB205, authored by Senator Gard will require refilling for new permit if construction has not started in the five years since original permit is granted.
• SB286, authored by Senator Kenley, establishes a task force to look at environmental crimes and what would be a felony crime. 
• SB431, authored by Senator Gard, addressing issues related to confined animal feeding operations. 
  • Increases permits applications substantially –- get enough inspectors so they can inspect once a year.
  • Good character requirements – previous infractions, etc.
  • Notification property owners within a mile radius, not just contiguous owners
  • Land application and water contamination training
• SB447, authored by Senator Paul, establishes a three-year moratorium on CAFO construction. (Gard: “Not sure how realistic it is, but it will get a hearing.”)
• SB156, authored by Senator Gard, states that a restrictive covenant on a property’s deed it would have to be reissued every 50 years (stays with the property, regardless of owner).
• SB154, authored by Senator Gard, allows an environmental rulemaking board to adopt an emergency rule to comply with a date provided by federal law. Establishes a special environmental rulemaking process for adoption or incorporation by reference of federal provisions or for technical or clarifying amendments.

Senator Gard also discussed recycling and rule-making as key issues for EQSC next summer. These topics have both been running at status quo for a very long time and need to be evaluated and perhaps rebuilt.

Vince Griffin, Indiana Chamber of Commerce
Reviewed additional bill status

• HB1017: Well water testing and operator costs. Requires the department of environmental management to pay certain costs of well water testing and operator services incurred by a nontransient noncommunity water system operated by a nonprofit entity that serves abused and neglected children. Appropriates money to make the payments.
• HB1193: Sales tax exemption for wastewater utility. Defines "public utility", "collection plant and expenses", "system pumping plant and expenses", and "treatment and disposal plant and expenses" in the statute that exempts certain expenditures by a wastewater utility from sales tax.
• HB1279: Confined feeding operations. Requires a person that wishes to construct a confined feeding operation or a concentrated animal feeding operation in a county that zones to obtain all approvals to construct the operation required under applicable zoning ordinances or other zoning laws applicable in the county in which the operation would be located.
• HB1281: Bioproducts initiative. Requires governmental bodies and state educational institutions to purchase biobased products under certain circumstances. Establishes the Indiana biobased products advisory commission.
• HB1309: Reservoir funding. Requires the auditor of state to distribute $30,000,000 from the major moves construction fund to the department of natural resources to be used for preliminary engineering, purchase of land, and construction of a dam and related structures necessary to provide water to: (1) an economic development project located in Decatur County; and (2) the communities surrounding the project.
• HB1393: Reconnection charges. Provides that the amount charged by a utility, other than a telecommunications provider, to reconnect service may not exceed actual reconnection costs. Permits a utility to require a deposit before reconnecting service. Requires a utility to reconnect service within one calendar day after being requested to reconnect service.
• SB0103: Serial meetings and electronic meetings. Provides that, absent express statutory authorization, a member of the governing body of a public agency who is not physically present at a meeting but communicates with other members of the governing body during the meeting by an electronic means of communication may not participate in a final action taken at the meeting or be considered to be present at the meeting. Allows the governing body of a state educational institution, the Ivy Tech board of trustees (and a committee of the board), the board of trustees of Vincennes University (and a committee of the board), and the governing body of a joint agency of a municipal utility program to conduct meetings by electronic means. Provides that members of the governing body who participate in a series of gatherings either in person or by electronic means (excluding electronic mail) violate the open door law if: (1) at least two but less than a quorum of members attend each gathering; (2) the total sum of different members attending all gatherings at least equals a quorum of the governing body; (3) all the gatherings concern the same subject matter and are held within a period of not more than seven days; and (4) the gatherings are held for the purpose of taking official action on public business.
• SB0154: Environmental matters. Allows an environmental rulemaking board to adopt an emergency rule to comply with a date provided by federal law. Establishes a special environmental rulemaking process for adoption or incorporation by reference of federal provisions or for technical or clarifying amendments. Requires the environmental quality service council to study environmental rulemaking and recycling issues.
• SB0312: Local water corporations. Provides that the statute allowing local water corporations to withdraw from the jurisdiction of the utility regulatory commission (IURC) for certain purposes applies to a conservancy district that: (1) has as a purpose of the district the provision of water service; and (2) provides water service to less than 2,000 customers. (Currently the statute applies only to a water or sewer utility that: (1) is privately owned and serves less than 300 customers; (2) is a not- for-profit utility; or (3) is a cooperative corporation exempt from state and federal income taxes.)
• SB0348: Renewable energy resources. Requires an electricity supplier to: (1) supply a certain percentage of its total electricity supply from renewable energy resources; and (2) include certain information concerning renewable energy resources in customers' bills. Establishes the renewable energy resources fund. Requires an electricity supplier that fails to supply electricity from renewable energy resources to pay a penalty. Deposits the penalties in the fund.
• SB0384: Gas utility connection charges and deposits. Provides that the amount charged by a natural gas utility to connect or reconnect utility service may not exceed the utility's actual connection or reconnection costs. Permits a utility to require a deposit before connecting or reconnecting service. Provides that the amount of the deposit may not exceed: (1) one-twelfth of the estimated annual cost of the utility service to be provided to an applicant or a customer; or (2) if the applicant or customer has contracted for a budget billing plan, the equivalent of one budget billing payment. Provides that certain rules adopted by the utility regulatory commission (IURC) are void to the extent they conflict with the requirements for: (1) connection or reconnection charges; and (2) deposits. Directs the IURC to amend existing rules to comply with the requirements.
• SB0395: Renewable energy production incentives. Provides: (1) a property tax deduction for organic waste biomass conversion units; (2) a tax credit for the purchase of electricity generated from an organic waste biomass conversion unit; and (3) a tax credit for a qualified investment made to convert dried distiller's grain produced as a byproduct of the production of ethanol into biodiesel and ethanol.
• SB0409: IURC and OUCC functions. Provides that the utility regulatory commission (IURC) and the office of utility consumer counselor (OUCC): (1) are independent agencies in the executive branch of state government; (2) exercise essential public functions; and (3) are not subject to oversight by the office of management and budget, the budget agency, or the state personnel department. Specifies that the expenses of the IURC and the OUCC are funded by regulated utilities doing business in Indiana. Provides that the funds, accounts, and financial affairs of the IURC and the OUCC shall be examined biennially by the state board of accounts. Provides that the IURC and the OUCC are subject to: (1) the rules and jurisdiction of the state ethics commission; (2) the open door law; and (3) the public records law. Provides that the IURC and the OUCC are not subject to state laws governing public purchasing. Allows the IURC and the OUCC to enter into contracts without obtaining the approval of: (1) the commissioner of the department of administration; (2) the director of the budget agency; or (3) the attorney general. Allows the IURC and the OUCC to employ and fix the compensation of necessary professionals without the approval of the governor and the budget agency.
• SB0432: Environmental fees. Modifies various environmental fees.

Vince also provided an update on the Water Shortage Task Force.

• Technical and Policy subcommittees have been formed and will meet soon full task force meeting will be in March.
• Whatever the policy is going to be, it will also apply to Annex 2000. There will be a blend of those issues going in parallel. Governor’s office fully sees the conservation measures statewide as impacting all legislation.

John Hardwick noted that water utilities will have to step to the table and be conservative in our use. We ought to be taking the lead, as a responsible organization to help develop how water utilities are going to meet those conservative needs. Otherwise others may dictate how we need to do it and at what levels.

Greg Wright, GRW Engineers, representing the American Council of Engineering Companies (ACEC), presented a report on the infrastructure funding needs for water and wastewater systems.

Larry Landis and Jerry Webb, IURC.

• Reported on meetings between WUC and IURC to review short- and long-term goals for WUC and IURC, such as emergency response and water conservation.
• IURC and OUCC will be moving to the National City Centre (Hyatt) building in the next three months.
• Dave Hadley has left IURC and Jeff Golc has recently been appointed to take his place.
• The IURC water meter testing rules are very out of date (1977). Jerry is willing to work with a committee to review and update the technical nature of the rules but he needs feedback from industry about what needs to be updated, and then technical expertise.

AWWA National Fly-In
John Hardwick and Art Umble will be attending the National Fly-In April 16 to 18. If you have a national legislative issue, please let them know. AWWA encourages attendees to talk about local issues as long as it doesn’t conflict with national issues.

The WUC Web site (www.inawwa.org/pages/wuc) has been revamped and will be updated with legislative information, meeting minutes, and other resources for the WUC. Please contact Beth Millett if you have any suggestions, ideas, concerns or changes. What would be most useful for you?

Next meeting is Monday, February 19, 2007, at 1:00 p.m. in the Lincoln Room.

Meeting adjourned at 12:50.