in-20260218-IR-327260047FNA: PUBLIC WATER SUPPLY CONSTRUCTION FEES

TITLE 327 WATER POLLUTION CONTROL DIVISION Notice of First Public Comment Period LSA Document #26-47 PUBLIC WATER SUPPLY CONSTRUCTION FEES PURPOSE OF NOTICE The Indiana Department of Environmental Management (IDEM) is soliciting public comment on amending rules at 327 IAC 8-3-7 concerning the applicability of construction permit fees and annual operating fees for a public water supply (PWS) owned or operated by churches and governmental nonprofit organizations in the state. IDEM seeks comment on the affected citations listed and any other provisions of Title 327 that may be affected by this rulemaking. ADDITIONAL DOCUMENTS Regulatory Analysis: 20260218-IR-327260047RAA Notice of Public Hearing: 20260218-IR-327260047PHA CITATIONS AFFECTED: 327 IAC 8-3-7 AUTHORITY: IC 13-14-8; IC 13-14-9; IC 13-15-1-2; IC 13-15-2-1; IC 13-16; IC 13-18-3-1; IC 13-18-4-1 OVERVIEW Basic Purpose and Background The Safe Drinking Water Act (SDWA) was enacted by Congress in 1974 to protect drinking water quality across the nation by establishing minimum standards to protect tap water, and requires all owners and operators of PWSs to comply with these standards (42 U.S.C. 300f et seq.). To ensure that PWS systems will comply with SDWA standards, and in accordance with IC 13-18-16, IDEM's drinking water permits section regulates the construction of PWSs under the PWS construction permits rule at 327 IAC 8-3. Specifically, the requirements at 327 IAC 8-3-2 require all PWSs to submit a drinking water construction permit application to IDEM before the construction, installation, or modification of any facility, equipment, or device. All PWSs are required to pay an associated permit fee when submitting a construction permit application unless they are excluded from the payment of this fee under 327 IAC 8-3-7. Currently, five categories of PWS sources are listed under the fee exemption under 327 IAC 8-3-7, including nonprofit organizations. However, all five categories must also be a governmental entity to qualify. Churches, most of which operate as nonprofit organizations, are not currently eligible for the exemption. Small churches in particular are currently faced with the burden of paying fees for PWS construction permits. The purpose of this rulemaking is to add a new exemption category under 327 IAC 8-3-7 for nonprofit religious organizations while maintaining the category of nonprofit organizations that are also governmental entities. IC 13-14-9-4 Identification of Restrictions and Requirements Not Imposed under Federal Law IDEM's PWS construction permit rules are adopted under IC 13-18-16. In addition, this rule is not imposing a restriction or requirement as it is creating a new exemption from permitting fees. Small Business Assistance Information For purposes of IC 4-22-2-28.1, small businesses affected by this rulemaking may contact the Small Business Regulatory Coordinator: For purposes of IC 4-22-2-28.1, the Small Business Ombudsman designated by IC 5-28-17-6 is: Resources available to regulated entities through the small business ombudsman include the ombudsman's duties stated in IC 5-28-17-6, specifically IC 5-28-17-6(9), investigating and attempting to resolve any matter regarding compliance by a small business with a law, rule, or policy administered by a state agency, either as a party to a proceeding or as a mediator. IDEM established a compliance and technical assistance program (CTAP) under IC 13-28-3. The program provides assistance to small businesses and information regarding compliance with environmental regulations. In accordance with IC 13-28-3 and IC 13-28-5, there is a small business assistance program ombudsman to provide a point of contact for small businesses affected by environmental regulations. Information on CTAP and other resources available can be found at www.in.gov/idem/ctap. The Small Business Assistance Program Ombudsman is: REQUEST FOR PUBLIC COMMENT IDEM is soliciting public comment on the proposed rule. Comments may be submitted in one of the following ways: Contact Karla Kindrick at kkindric@idem.in.gov or (317) 232-8922 if another method of submitting comments within the comment period is desired. Regardless of the delivery method used, in order to properly identify each comment with the rulemaking action it is intended to address, each comment document must clearly specify the LSA document number of the rulemaking. COMMENT PERIOD DEADLINE All comments must be postmarked or time stamped not later than March 20, 2026. The rule, Regulatory Analysis, appendices referenced in the Regulatory Analysis, and materials incorporated by reference (if applicable) are on file at the IDEM Rules Development Branch, Office of Legal Counsel, Indiana Government Center North, 100 North Senate Avenue, Indianapolis, Indiana and are available for public inspection. Copies of the rule, Regulatory Analysis, and appendices referenced in the Regulatory Analysis are available at the IDEM Rules Development Branch office. If IDEM does not receive substantive comments during the public comment period or public hearing, the rule may be adopted with text that is the same as or does not substantially differ from the text of the proposed rule published in this notice. PROPOSED RULE Sec. 7. (a) The following governmental entities are excluded from payment of the fees in subsection (b): (b) The following fees for a public water supply construction application must be remitted at the time a permit application is submitted to the department: TYPE PROCESSING FEE New public water supply treatment plant: Groundwater: Up to 500,000 gallons per day $875 Greater than 500,000 gallons per day $1,750 Surface water: Up to 500,000 gallons per day $1,250 Greater than 500,000 gallons per day $2,500 Public water supply treatment plant expansion: Up to fifty percent (50%) design capacity: Greater than 500,000 gallons per day $1,250 Up to 500,000 gallons per day $625 Greater than fifty percent (50%) design capacity: Greater than 500,000 gallons per day $2,500 Up to 500,000 gallons per day $1,250 Other water treatment facilities: Wells $860 Pump or pump station $175 Chemical addition $430 Storage tank $345 Miscellaneous process modification $100 per process All water distribution system: 2,501 - 5,000 linear feet $260 5,001 - 10,000 linear feet $430 Greater than 10,000 linear feet $860 (c) The fee is not refundable after staff review and processing of the permit application has commenced. started. (d) For public water systems, the department shall bill for annual operation fees as follows: Number Served Fee 25 - 100 $150 101 - 250 $180 251 - 500 $240 501 - 1,000 $300 1,001 - 3,300 $450 3,301 - 5,000 $600 5,001 - 10,000 $1,500 More than 10,000 $3,000 Type of Transient Noncommunity Water System Fee Groundwater $100 Purchase $50 Surface $200