1 Indiana Regional Sewer District Association Annual Meeting Thomas W. Easterly, P.E., BCEE, QEP Commissioner Indiana Department of Environmental Management October 29, 2012 Ritz Charles Carmel, Indiana

2 IDEM’s Mission We Protect Hoosiers and Our Environment IDEM’s mission is to implement federal and state regulations to protect human health and the environment while allowing the environmentally sound operations of industrial, agricultural, commercial and government activities vital to a prosperous economy.

3 How Does IDEM Protect Hoosiers and Our Environment? Develop regulations and issue permits to restrict discharges to the environment to safe levels. Inspect and monitor permitted facilities to ensure compliance with the permits.

4 How Does IDEM Protect Hoosiers and Our Environment? Use compliance assistance and/or enforcement when people exceed their permit levels or violate regulations. Educate people on their environmental responsibilities.

5 Common RSD Issues—2010 Concerns about a few RSDs continue to be raised. IDEM has no jurisdiction, but sometimes receives calls about: –Sewer fees, connection expenses and liens –District territory expansion –District forcing connection –District won’t allow connection –Behavior of district board members

6 Common RSD Issues Most of these conflicts are the results of local decisions by a few districts and these issues have resulted in legislative action. Some representatives believe that properly functioning septic systems provide treatment that is as good as or superior to that provided by sewage treatment plants. HEA 1117 (aka PL ) is a result of these issues.

PL This law addresses some, but not all, of the issues raised by the public during a number of legislative hearings during the 2012 session. Main issues: –Transparency, responsiveness and protection of individual rights. –Protecting homeowners’ investments in properly functioning septic systems. 7

Provisions of PL Defines “youth camp” and allows a youth camp to install a meter and be charged on the basis of actual discharge. If sewer rates are billed on a residential unit basis, each youth camp bed may not equal more than one-eighth of a residential equivalent unit. 8

Provisions of PL Adds process and timing restrictions for petitions to establish an RSD. –Notice of the public meeting must be published for at least 3 consecutive weeks in at least 2 newspapers of general circulation in each of the counties in the proposed district. AND –By either US Mail to each freeholder within the proposed district OR 9

Provisions of PL –By broadcasting at least 3 public service announcements each day for 14 days on at least 2 radio stations operating in each of the counties in the proposed district. The district formation petition must be filed not less than 60 days nor more than 180 days after providing the public meeting notice and not less than 30 days after the public meeting. 10

Provisions of PL Petitions to form a district must also include: –Estimates of the median income for households in the proposed district based upon the most recent federal decennial census. AND –A summary of alternatives to creating the district. 11

Provisions of PL Appointed trustees of most RSD’s do not have to be a resident of the district, but must: –Own real property within the district. OR –Be an elected official who represents a political subdivision that has territory in the district. OR –Be appointed under IC or IC

Provisions of PL By December 31, 2013, the parties to an agreed order of an RSD that is a countywide district and was established in response to an agreed order entered into with IDEM shall amend the order to provide for the appointment of trustees by July 1, 2013 as follows: 13

Provisions of PL –At least one appointed trustee must reside in the geographical area that is the subject of the IDEM investigation resulting in the agreed order. –An appointed trustee may not be served by a municipal sewer system. –At least one appointed trustee must be an elected official who represents a political subdivision that has territory in the district. 14

Provisions of PL When the board of a district conducts a public hearing or meeting, the board shall allow any person the opportunity to be heard: –In the presence of others who are present to testify. –The board may limit this testimony to a reasonable time stated at the opening of the public hearing or meeting. 15

Provisions of PL Reasonable penalties for failure to connect shall not exceed $100 per day. A district must attempt to use existing public rights-of-way and easements before exercising the power of eminent domain. There are now two exemptions from the requirement to connect to a district’s available sewer system within 300 feet: 16

Provisions of PL –The existing ten year from installation exemption for septic systems that are: approved in writing by the local health department, new at the time of installation, and are certified as functioning satisfactorily by the local health department. May be transferred to a new owner and may be extended for up to two, 5-year periods (total exemption of 20 years). 17

Provisions of PL –There is a new permanent exemption for: Properties with at least 10 acres where the owner can demonstrate the availability of at least two areas on the property for the collection and treatment of sewage that will protect human health and environment, The waste steam is limited to domestic sewage from a residence or business, The maximum design flow is 750 gallons per day, The local health department certifies that the system is functioning satisfactorily. 18

Provisions of PL A property owner who connects to a district’s sewer system may provide at the owner’s expense, labor, equipment and materials from any source to accomplish the connection to the sewer system, subject to the inspection and approval by the board or a designee of the board. 19

Provisions of PL After the public hearing, the district authority shall determine: –Whether the board of trustees of the district, in adopting the rates, followed the required procedure and –Whether the sewer rates and charges are just and equitable rates and charges according to the standards in IC

Provisions of PL After the district authority makes the determinations listed above, it shall: –Sustain the rates and charges, or –Sustain the petition, or –Make any other ruling appropriate in the matter subject to the standards set forth in IC

Provisions of PL Following the passage of the initial rates for a district, or an increase in annual rates exceeding 5%; the lesser of 10% of the ratepayers or 50 ratepayers may petition the district authority for a public hearing. 22

Provisions of PL The district authority’s decision may be appealed by either party to the circuit court of the county in which the district is located. Either party may appeal the circuit court’s decision in the same manner that other civil cases may be appealed. 23

Provisions of PL If a lien against a property for unpaid RSD charges is the only lien on a property, the lien may not be foreclosed. A complaint to the local health officer regarding the existence of unlawful conditions must contain adequate details to allow the health officer to verify the existence of the unlawful conditions. 24

Provisions of PL The local health officer shall provide a copy of the complaint upon request to the person who is the subject of the complaint. A person who provides false information upon which a local health officer relies in issuing an order commits a Class C infraction. 25

Provisions of PL Before a local health department may act upon an application for a residential septic system permit, the local health department shall inform the applicant if the property is located in the service district of an RSD. The residential property disclosure form must include information including whether the property is located in a regional sewage district. 26

27 Thank You Thomas W. Easterly Commissioner Indiana Department of Environmental Management