Bill To Fund Water Infrastructure Improvements Passes Committee

A bill that would help cities pay for things like water pipes and drains passed the House utilities committee Wednesday. It would take $20 million out of the state’s general fund each year and put it toward a loan program and other financial assistance for communities doing water infrastructure projects.

Rep. Ed Soliday (R-Valparaiso) authored the bill and says he usually thinks those who use a service should pay for it. But the Indiana Finance Authority estimates the state needs more than $2 billion in water infrastructure improvements. Soliday says raising rates won’t work everywhere.

“Some of our water systems are so small and their user base is so small, they’d never sustain the cost of what it would take to bring their facilities up to standards,” he says.

Jim McGoff with the Indiana Finance Authority says the fund wouldn’t get federal dollars, which means there would be fewer restrictions on how the state could use the money.

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“There are certain projects that we cannot fund such as private wastewater, dam restoration, and some flood control projects that this funding would be available to for those communities,” he says.

To be eligible for financial assistance, cities would have to try to collaborate with other towns on water infrastructure projects and create a plan for how they’ll use the dollars.

The bill also encourages communities to fix leaks and other issues that waste water. Cities could start getting the financial help from the state in July 2020.

The House’s financial committee, Ways and Means, will now review the bill.

Indiana Environmental reporting is supported by the Environmental Resilience Institute, an Indiana University Grand Challenge project developing Indiana-specific projections and informed responses to problems of environmental change.