A Senate bill, SB 4, aims to address concerns over large water transfers like those planned to serve the controversial LEAP industrial district in Lebanon.

But the legislation could exempt one of those transfers for the project — which makes some environmental advocates uneasy.

Companies creating long haul water pipelines would have to get a certificate from the Indiana Utility Regulatory Commission. And if a big water transfer happens between two different water basins — they’d also have to get a permit from the Indiana Department of Natural Resources.

But existing transfers — like the water Citizens Energy Group already pumps to the city of Lebanon — would be exempt. That includes any water it would provide for the LEAP district.

“We feel it is crucial to include the LEAP district in this permitting process — and the associated requirements that prioritize water conservation, monitoring, and reporting — as a major water user and a driver for this conversation over the past year," said Desi Rybolt with Indiana Conservation Voters.

But if that water comes from a new source — like Tippecanoe County — that pipeline would have to go through this process.

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Citizens Action Coalition largely supports the bill, but executive director Kerwin Olson said the group is concerned about the potential cost to residents.

“CAC believes strongly that the need for the investment should be allocated to the entity — the notable user, if you will — of that rather than saddling other ratepayers with a pipeline that is not necessarily in service to serve their needs," he said.

The author of the bill is working on an amendment to require the IURC to review how a proposed long-haul pipeline would affect water customers’ rates.

Rebecca is our energy and environment reporter. Contact her at rthiele@iu.edu or follow her on Twitter at @beckythiele.