Spartz Requests Federal Review of LEAP Water Project Financing and Environmental Oversight

WASHINGTON, D.C. — Today, Rep. Victoria Spartz (IN-05) requested that the U.S. Government Accountability Office (GAO) and Environmental Protection Agency Office of Inspector General (EPA OIG) conduct an independent review of federal oversight and Drinking Water State Revolving Fund (DWSRF) financing for the Citizens–Lebanon Water Supply Program associated with Indiana’s LEAP Research and Innovation District.

The Indiana Finance Authority has approved financing through Indiana’s federally capitalized DWSRF for a major regional water infrastructure program designed to provide up to 25 million gallons of water per day to Lebanon from the White River watershed. Citizens Energy Group sought approximately $560 million in DWSRF financing for the program, with approximately $104.8 million in initial financing closed in December 2024.

“Economic development is important, but it must be done responsibly and transparently,” Rep. Spartz said. “When hundreds of millions of dollars in federally capitalized financing and critical water resources are involved, taxpayers and communities deserve accountability. We need an independent review to make sure federal requirements were properly followed and the long-term impacts on existing communities, agriculture, future economic development, and our water resources were adequately evaluated.”

Federal DWSRF regulations restrict funding for projects needed primarily to serve future population growth and establish environmental-review requirements for projects receiving assistance.

Rep. Spartz is asking GAO and EPA OIG to review whether the Citizens–Lebanon projects meet federal DWSRF eligibility requirements; whether appropriate environmental reviews were conducted; whether the entire 25-MGD program and its combined water-resource impacts were adequately evaluated; and whether EPA Region 5 provided appropriate federal oversight.

“Federal drinking-water programs should protect existing communities and public health—not become a backdoor subsidy for large economic development projects,” Rep. Spartz said. “GAO and EPA OIG should independently review the facts and determine whether federal law and proper processes were followed.”

See a copy of Rep. Spartz’s full letter HERE.