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

This bill eliminates regulation of isolated wetlands (not federally determined) by the Indiana Department of Environmental Management (IDEM). It strikes the section of Indiana Code requiring a permit from IDEM for wetland activity in a state regulated wetland. The repeal of that law will not affect the regulation of federally delineated wetlands. Also provides that the repeal of that law extinguishes any judicial or administrative proceeding concerning an alleged violation of IC 13-18-22, an administrative rule concerning IC 13-18-22 or the terms of a permit issued under IC 13-18-22.

Chamber position: Support as amended (originally Oppose)

The latest: The bill was heard in the House Environmental Affairs Committee on March 22 but no vote was taken. This week, on April 7,  there was an amend and vote only, with Amendment 24 introduced by Rep. Hal Slager (R-Schererville). The amended bill passed by a vote of 12-0.

The amended bill no longer excludes all classes of wetlands from permitting requirements, but instead provides specific permitting exemptions for croplands and excludes ephemeral streams from being categorized as wetlands. The legislation also alters mitigation ratio requirements (from 1.5:1 to 1:1 for Class I Wetlands) and would send the issue to an interim study committee for further review. The bill is now eligible for further action on the House floor.

Indiana Chamber action/commentary: We testified in opposition to the bill in its original form. While the Chamber opposes additional layers of regulation, the complete elimination of the regulation of state wetlands is a drastic move. It would likely have negative impacts on water quality, flood control and quality of place factors that we are concerned with in attracting the best and brightest workers and businesses to Indiana. This issue needs further study to determine those impacts before the state takes such a significant step. In addition, this bill runs counter to the goals of the Chamber’s Indiana Vision 2025 plan, which has identified water resources as an important consideration in economic development. It is also inconsistent with findings of the Chamber’s 2014 water study. With that said, the amended bill is much improved, and it has our support.

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