in-20250326-IR-105250150RAA: 105 IAC 16-1-1

TITLE 105 INDIANA DEPARTMENT OF TRANSPORTATION Regulatory Analysis LSA Document #25-150 I. Description of Rule II. Fiscal Impact Analysis III. Impacted Parties The Dig Once program policies can impact a broad scope of entities such as local and state governments, broadband service providers, contractors, local communities, rural and urban residents, along with unserved and underserved census blocks. The Dig Once program can be the most impactful form of policy for governments installing conduit during construction projects within the public right-of-way by being able to leverage INDOT assets or infrastructure (conduit), such as Intelligence Traffic Systems (“ITS”), cameras, weight-in-motion stations, and weather stations, to connect state-operated facilities or lease conduit to broadband providers. Broadband providers in turn can deploy fiber networks and continuous build outs with lower construction cost or capital expenditures. By lowering construction costs for service providers, they are then able to pass on the savings to the consumer. These savings can make a community more attractive for economic development, tax incentivized funding areas, new business growth, education, healthcare, and other small, medium, or large enterprise companies. These economic incentives as well as logistic assistance from a city or town can help pave the way for more powerful broadband service. Most tax incentives are implemented at the state level, but city governments could influence the consideration in the form of accelerated depreciation, and reduced property and sales taxes. Small businesses will especially benefit from this rule as they will substantially save on construction costs that they could not otherwise afford without grants or other funding sources. Any costs imposed by this rule are miniscule and are already in effect via INDOT policy for placement of broadband in the broadband corridor.

IV. Changes in Proposed Rule

The changes in the proposed rule are changes from the recently expired emergency rule. INDOT proposes to add a rule regarding broadband requirements and criteria for installation of conduit, fiber optic cable and facilities, and the permitting process. INDOT may adopt rules pursuant to Indiana Code 8-23-2-6 and 8-23-5-10. The proposed rule establishes rules and regulations for the installation of fiber optic conduit within the limited access highways during specified work conditions, now known as the “Dig Once” program. The implementation of the Dig Once program is necessary to reduce deployment costs, decrease disruption to communities and roadways, create safer work zones for contractors, establish more efficient methods to deploy telecommunication networks, encourage competition among internet service providers, and work toward closing the digital divide. In addition to numerous technical changes, the differences between the emergency rule and the proposed rule are outlined below: Emergency Rule Text Proposed Rule Text 105 IAC 16-1-1 Deletes language explaining dig once policies. 105 IAC 16-1-3 Adds (b) describing the requirements for installation of conduit bank. 105 IAC 16-1-4 Adds that the determination will be based on projected future needs for the space, engineering studies, and environmental studies to clarify how the department determines if a fiber optic cable can be installed in the department’s designated conduit. 105 IAC 16-1-5 Amended the language to state that additional information or documentation must be provided within 15 days after notice of the deficiency to clarify when additional information is due. 105 IAC 16-1-6 Adds a CFR cite to clarify the requirements a broadband access agreement must contain. 105 IAC 16-1-7 Adds language that a blanket bond must be $500,000 or an amount sufficient to cover the sum of the cost of all open permits, whichever is greater. This is to clarify that a blanket bond can be increased. 105 IAC 16-1-8 Clarifies that the department can approve of a conduit placement other than 2 feet from the department’s right-of-way fence line. 105 IAC 16-1-9 Clarifying language; removing “no additional compensation” and adding “no cost to the department” to clarify there is no compensation to the operators. 105 IAC 16-1-10 Adds a standard for “near” by inserting that utility locations must be determined by the Indiana Underground Plant Protection Service. 105 IAC 16-1-12 adds general installation requirements. These requirements are necessary to ensure the safety of work sites, to require minimal disturbance to surrounding areas, and comply with requirements set out in INDOT manuals. 105 IAC 6-1-12 Renumbered as 105 IAC 16-1-13. Adds an exception must be based on availability and feasibility. 105 IAC 16-1-13 Renumbered as 105 IAC 16-1-14. Removes (g) regarding handholds installed in the ditch line or under sidewalks, trails, or pavement areas. Removes (i)-(r) and relocates language to 105 IAC 1-16-12. 105 IAC 16-1-14 Renumbered as 105 IAC 16-1-15. Removes the requirements that the vault provides a minimum of 4 inches of soil over the concrete box. This clarifies that the top must only be level with the surrounding ground. 105 IAC 16-1-18 Renumbered as 105 IAC 16-1-19. Adds a citation to Indiana Code to clarify what the INDOT GIS standards are. 105 IAC 16-1-21 Renumbered as 105 IAC 16-1-22. Clarifies that the operator must establish a corrective action plan no more than 14 days from the date of notice of the violation to clarify how operators are to comply. 105 IAC 16-1-22 Renumbered as 105 IAC 16-1-23. Adds that no permit may be issued if the proposed plans do not meet certain requirements such as the requirements of the rule, permitting requirements, requirements for future projects, and environmental requirements. This establishes when a permit may be denied or not issued. 105 IAC 16-1-23 Renumbered as 105 IAC 16-1-24. Clarifies that if a broadband access permit is revoked, it shall be removed by the permittee or INDOT. This helps clarify the removal process after a revocation of a permit. 105 IAC 16-1-24 Renumbered as 105 IAC 16-1-25. Removes (b)-(e) to avoid conflict with process provided in IC 4-21.5.

V. Benefit Analysis

The Dig Once program provides for the installation of broadband facilities during specified projects. The installation during construction projects translates to multiple benefits for INDOT, private internet companies, and Indiana citizens. Placement of conduit during major construction projects allows for a faster deployment of broadband facilities in areas of limited access right-of-way. Becoming part of a project for INDOT also allows for the safety and integrity of the construction site to remain undisturbed afterward. Benefits include: The placement of these facilities accelerates broadband connectivity for residences and businesses, which has ancillary benefits. By participating in the Dig Once program, small businesses eliminate administrative costs associated with the overall scoping and design of a project such as acquisition of studies, land records/title review, NEPA, land surveys, geotechnical reports, notary and any other studies that would be required if the small businesses chose not to participate in the Dig Once program. There are no significant differences in reporting, record keeping, and other administrative costs between small businesses and large businesses.

VI. Cost Analysis

There are no costs imposed by the proposed rule compared to existing requirements. The proposed rule does not add or increase any fee, fine, or civil penalty. The proposed rule does not have a combined implementation and compliance cost of one million dollars over any two-year period.

VIII. Regulatory Analysis

Federal rules, laws and regulations do not allow for states to require less stringent regulations than those imposed by the federal regulations. The rule does not require any additional compliance or reporting than what already existed in INDOT policy or federal law. The existing reporting requirements that will be set forth in the rule are not onerous or anything beyond standard business practices. INDOT has allowed for the required information to be provided by whatever means is most convenient for each business, including electronic mail, regular mail, and direct entry online into the electronic permitting system. INDOT can exercise some flexibility in the schedules or deadlines; however, completion of installation during the construction project while the trench is open will be dictated by the federal laws, rules, and regulations. Less stringent schedules or deadlines cannot be waived for the construction project.

IX. Contact Information of Staff to Answer Substantive Questions

Todd May, Director of Innovation and Process Improvements at tomay@indot.in.gov or 317-766-1033 or Andy Brelage, Director of Broadband Corridors at abrelage@indot.in.gov or 317-646-3655 Notice of First Public Comment Period with Proposed Rule: 20250326-IR-105250150FNA Notice of Determination Received: February 25, 2025