SB 389 – Repeals State Regulated Wetlands Law
Authored by Sen. Chris Garten (R-Charlestown); sponsored by Rep. Matt Lehman (R-Berne)

This bill, as amended, eliminates regulation of the majority of isolated wetlands (not federally determined) by the Indiana Department of Environmental Management (IDEM). The bill provides that no permits are required for Class I wetland and certain Class II wetland activities. Currently, Class I, II and III are regulated. Class III wetlands are the least common and account for the smallest number.

Chamber position: Oppose (previously Support)

The latest: Just last week Amendment 24 was approved in the House Environmental Affairs Committee; it would have expanded some exemptions from regulation and required study of Indiana’s regulations of wetlands. The Indiana Chamber supported this amended version of the bill. But this week, that amendment was essentially removed and those exemptions along with it. This unfortunate activity occurred on the House floor April 13 and the revised bill passed 58-40. The next day, the Senate concurred on the House’s version – which returned it to a similar scope as what the Senate originally had passed – by a vote of 31-19 after quite a bit of debate. The bill is now eligible to soon become law unless Gov. Holcomb vetoes it, which we are urging him to do.

Chamber action/commentary: Both the Indiana Department of Natural Resources (DNR) and the Indiana Department of Environmental Management testified in opposition of the bill, which is a rarity. While we typically oppose additional layers of regulation, the drastic reduction of the regulation of state wetlands is concerning and should be studied prior to taking such significant steps. The reduction in wetland regulations will likely have negative impacts on water quality, flood control and quality of place factors that we are concerned with in attracting the brightest and best workers and businesses to Indiana.

Ducks Unlimited has indicated that Indiana’s natural resources support a $15 billion outdoor recreation economy. According to literature from the Indiana DNR, one acre of wetlands provides $248 in purification services for fresh drinking water, $2,270 in water storage services and $1,055 in erosion prevention services. The U.S. Environmental Protection Agency has indicated that an acre of wetland can store 1-1.5 million gallons of floodwater. All of these things will have impacts on Indiana businesses that use water in their processes, not to mention our drinking water utilities. Also, there will be an increased need for infrastructure funding to deal with increased stormwater runoff as wetlands are eliminated.

The current system of regulation can lead to a lot of confusion – due to the number of local, state and federal government/agencies involved – and can be improved without a doubt. But given the importance of wetlands, the ideal initial remedy would have been a thorough study with input by the regulated community – not the drastic changes the Legislature has taken on a whim.

Resource: Greg Ellis at (317) 264-6881 or email: gellis@indianachamber.com