Indiana: House Enrolled Act 1459 (HEA 1459)
Effective July 1, 2025, the Indiana General Assembly enacted House Enrolled Act 1459 (HEA 1459), establishing statewide asset management requirements for all water and wastewater utilities. The new law is designed to enhance the safety, sustainability and long-term performance of Indiana’s water infrastructure systems.
Mandatory Quadrennial Reporting System
Beginning January 1, 2026, all water and wastewater utilities must submit asset management program status reports to the Indiana Regulatory Commission (IURC) every four years as well as demonstrate technical, managerial, legal and financial capability to maintain their systems. Utilities must include the status of any federal consent decrees or federal orders.
Tiered Regulatory and Enforcement Framework
This legislation establishes a progressive, three-tiered enforcement system:
| Level | Potential Consequence |
| First non-compliance | IURC issues a deficiency notice with a correction timeframe. May require informal rate review |
| Two consecutive non-compliances | IURC asserts jurisdiction over the utility's rates and charges. Must undergo base rate case proceedings |
| Three consecutive non-compliances | IURC may initiate receivership proceedings |
Utilities with fewer than 1,000 customers may use simplified reporting forms, more flexible compliance requirements and reduced compliance costs.
Mandatory Training Requirements
Starting January 1, 2027, governing bodies of all water and wastewater utilities must complete training or continuing education programs every four years. These training topics include asset management best practices, fiduciary duties, financial management and environmental compliance. The IURC or recognized state associations will offer approved training programs, with at least one low- or no-cost option available. The implementation timeline for training and reports is listed in the table below.
| October 1, 2025 | IURC Issues general administrative order detailing reporting requirements and procedures |
| January 1, 2026 | First quadrennial reporting cycle begins |
| January 1, 2027 | Mandatory training requirements take effect |
Stakeholder Response
The Indiana Finance Authority (IFA) has indicated it will continue providing financing support for eligible water infrastructure projects, while day-to-day management will be coordinated through the new Department of Environment and Energy structure.
HEA 1459 represents a significant shift toward proactive infrastructure management in Indiana. The reporting framework will provide state regulators with improved visibility into the condition and management of water infrastructure across the state, enabling data-driven decision-making for future investments and improvements.
For additional information, please click here for the full text of HEA 1459.
B&N Can Help
B&N assists with water and wastewater utilities in developing asset management programs, conducting system assessments and preparing documentation that meets government requirements. Contact us for more information or assistance navigating HEA 1459.
Kevin Campanella, PE
Kevin.campanella@burgessniple.com
614.571.4631 x1401