Citations Affected: IC 8-1; noncode.
Synopsis: Merchant power plants. Defines the term "merchant power
plant". Provides that a merchant power plant is subject to the
jurisdiction of the Indiana utility regulatory commission (IURC),
except for a plant that has petitioned the IURC before March 1, 2001,
for an order that the IURC decline to exercise its jurisdiction over the
plant. Requires a merchant power plant to give notice of a proposed
facility to property owners within one half mile of the proposed facility
and to hold a field hearing to determine local support for the facility.
Provides that after the field hearing, a majority of the property owners
may request a hearing before the IURC. Requires the IURC to issue
written findings based on testimony at the hearing. Establishes the
criteria the Indiana utility regulatory commission (IURC) must consider
when considering a merchant power plant application, including
preferred siting locations. Provides that when considering whether to
approve a plant, the IURC must obtain a recommendation from the
department of natural resources (the "department") regarding the plant's
Effective: Upon passage; July 1, 2001.
January 17, 2001, read first time and referred to Committee on Commerce, Economic
Development and Technology.
February 27, 2001, amended, reported _ Do Pass.
March 5, 2001, read second time, amended, ordered engrossed.
planned use of and potential effect on a water resource. Requires a merchant power plant to provide to the IURC and the department an assessment, prepared by a licensed geologist or engineer, of its effect on the water resource and its users. Requires a merchant power plant that seeks: (1) approval from the IURC; or (2) alternative regulation by the IURC; to establish proof of financial responsibility in an amount determined by the IURC. Requires the IURC to issue a decision either approving or denying a merchant power plant's petition for approval or for alternative regulation not later than eighteen months after the date of the petition. Lists the duties of the merchant power plant following approval by the IURC. Provides that if a merchant power plant that has received IURC approval: (1) fails to commence construction of the plant within two years of the date of the IURC's approval; or (2) has not substantially completed construction of the plant within five years of the date of the IURC's approval; the IURC may revoke its approval of the plant. Establishes the utility worker skills and standards committee. Provides that the committee consists of the following members: (1) The utility consumer counselor, who serves as chair and an ex officio, non voting member. (2) Five members appointed by the governor and representing different types of electric utilities. (3) Five members appointed by the governor and representing various employee organizations. Requires the committee to adopt rules establishing skill and training standards for employees who operate or maintain electric utilities. Requires any proposed standards or qualifications to be approved by a simple majority of the voting committee members. Provides that any proposed standards or qualifications not agreed to by a simple majority of committee members shall be submitted to the chair for a final decision. Prohibits the chair from creating any new standards or approving any standards not proposed by the voting members. Requires the committee to meet at least annually to review of the effectiveness of the rules and consider whether any additions or amendments to the rules are necessary. Requires the committee to adopt the initial set of rules not later than January 1, 2003. Provides that the IURC may decline to exercise jurisdiction over a facility that has applied to the IURC before March 1, 2001. Specifies that the IURC has jurisdiction over a merchant power plant that has made a significant alteration in the labor used to construct or remodel the facility.
A BILL FOR AN ACT to amend the Indiana Code concerning
merchant power plants.
member of the committee. The utility consumer counselor
shall serve as chair of the committee.
(2) Five (5) members appointed by the governor, with one (1)
member representing each of the following:
(A) A public utility (as defined in IC 8-1-2-1) that
produces, transmits, delivers, or furnishes electricity,
either directly or indirectly, to the public.
(B) A rural electric membership corporation (as defined in
IC 8-1-13).
(C) A municipally owned utility (as defined in IC 8-1-2-1)
that produces, transmits, delivers, or furnishes electricity,
either directly or indirectly, to the public.
(D) A public utility described in clause (A) that has
withdrawn from the commission's jurisdiction under any
provision of Indiana law, or over which the commission
has declined to exercise jurisdiction under any provision of
Indiana law.
(E) A nonutility owned electric generation and
transmission company.
(3) Five (5) members appointed by the governor, with one (1)
member representing each of the following employee
organizations:
(A) The Indiana State AFL-CIO.
(B) The Indiana State Building Trades Council.
(C) The International Brotherhood of Electrical Workers.
(D) The American Federation of State, County, and
Municipal Employees.
(E) The United Steelworkers of America.
Sec. 4. (a) A member appointed under section 3(2) or 3(3) of this
chapter serves for a term of four (4) years, except when a member
is appointed to fill a vacancy, in which case the appointment is for
the unexpired term only. A member appointed under section 3(2)
or 3(3) of this chapter serves until the member's successor is duly
appointed and qualified. However, a member appointed under
section 3(2) or 3(3) of this chapter may be reappointed to
successive terms. The utility consumer counselor serves on the
committee for the duration of the counselor's appointment under
IC 8-1-1.1-3.
(b) A member appointed under section 3(2) or 3(3) of this
chapter may be removed at any time by the governor for cause.
(c) Six (6) members of the committee constitute a quorum.
(d) The chair shall call the number of meetings necessary for the
committee to adopt the initial rules required under section 5 of this
chapter. After the committee adopts the initial rules required
under section 5 of this chapter, the committee shall meet at least
one (1) time each calendar year to review the effectiveness of the
rules and consider whether any additions or amendments to the
rules are needed. Upon the call of the chair or a simple majority of
the members of the committee, the committee shall hold any
additional meetings necessary to amend the rules.
Sec. 5. The committee shall adopt rules under IC 4-22-2 to
establish skill and training standards for employees who operate
or maintain utilities. The rules adopted must specify training
standards and qualifications for utility employees who operate,
maintain, service, and repair any or all parts of electric generation
and transmission facilities, materials, or equipment. All standards
and qualifications must be approved by a vote of a simple majority
of the voting members of the committee. Any proposed standards
or qualifications not agreed to by a simple majority of the voting
members of the committee must be submitted to the utility
consumer counselor, who, as chair of the committee, shall make a
final determination concerning the proposed standards or
qualifications. The chair shall either approve or deny the proposed
standards or qualifications based on:
(1) information submitted by committee members appointed
under section 3(2) of this chapter; or
(2) information submitted by committee members appointed
under section 3(3) of this chapter;
or on information submitted by a combination of committee
members appointed under section 3(2) and 3(3) of this chapter.
However, the chair may not create any new standards or
qualifications or approve any standards or qualifications that were
not proposed by members appointed under section 3(2) or 3(3) of
this chapter.
Indiana used for the:
(1) production, transmission, delivery, or furnishing of heat,
light, or power; and
(2) sale of electric energy exclusively on the wholesale market;
to other public utilities, energy service providers, or power
marketers within or outside Indiana.
(b) The term includes a facility that has made a significant
alteration to the labor used to construct or remodel the facility. For
purposes of this subsection, a facility makes a significant alteration
in the labor used to construct or remodel a facility if the person
uses contractors, subcontractors, or work crews that include
workers who are not participants in or have not completed a
jointly administered labor and management apprenticeship
program approved by the United States Department of Labor's
Bureau of Apprenticeship Training.
(c) The term does not include a facility that is owned, controlled,
or operated by a person that is obligated contractually to provide
substantially all of the wholesale power requirements of an
electricity supplier under a contract extending at least five (5)
years.
Sec. 3. Except as provided in section 1 of this chapter, a
merchant power plant is subject to the jurisdiction of the
commission.
Sec. 4. (a) The commission shall consider the following when
acting upon any petition by a merchant power plant under
IC 8-1-2.5 or IC 8-1-8.5:
(1) Location.
(2) Need.
(3) Financing.
(4) Reporting requirements.
(5) Impact on electric, water, and natural gas suppliers and
customers.
(6) The recommendation of the department of natural
resources under section 5 of this chapter.
(b) The commission shall issue a decision either approving or
denying a merchant power plant's petition under IC 8-1-2.5 or
IC 8-1-8.5 not later than eighteen (18) months after the date of the
petition.
Sec. 5. (a) When petitioning the commission under IC 8-1-8.5 or
IC 8-1-2.5, a merchant power plant must establish proof of
financial responsibility by filing one (1) or a combination of the
following with the commission:
(1) A fully funded trust fund agreement.
(2) A surety bond with a standby trust fund agreement.
(3) A letter of credit with a standby trust fund agreement.
(4) An insurance policy with a standby trust fund agreement.
(5) Proof that the merchant power plant meets a financial test
established by the commission and equivalent to one (1) of the
items in subdivisions (1) through (4).
(b) The amount of financial responsibility that a merchant
power plant must establish under this section shall be determined
by the commission. In all cases, the amount must be sufficient to
close the merchant power plant in a manner that:
(1) minimizes the need for further maintenance and
remediation; and
(2) provides reasonable, foreseeable, and necessary
maintenance and remediation after closure for at least twenty
(20) years after the merchant power plant ceases operations.
(c) The commission may use:
(1) a trust fund agreement;
(2) a surety bond;
(3) a letter of credit;
(4) an insurance policy; or
(5) other proof of financial responsibility;
filed under this section for the closure or post-closure monitoring,
maintenance, or remediation of a merchant power plant approved
by the commission, if the merchant power plant does not comply
with closure or post-closure standards established by the
commission under subsection (d).
(d) The commission shall adopt rules under IC 4-22-2 to
establish the following:
(1) Standards for the proper closure and post-closure
monitoring, maintenance, and remediation of merchant power
plants.
(2) Criteria for how money in a trust fund agreement, a surety
bond, a letter of credit, an insurance policy, or other proof of
financial responsibility provided by a merchant power plant
may be released to the merchant power plant when the
merchant power plant meets the closure and post-closure
standards established under subdivision (1).
Sec. 6. (a) Not later than seven (7) days after filing a petition
under IC 8-1-2.5 or IC 8-1-8.5, a merchant power plant shall:
(1) send notice of the petition by United States mail to all
record owners of real property located within one-half (½)
mile of the proposed facility; and
(2) cause notice of the petition to be published in a newspaper
of general circulation in each county in which the facility or
proposed facility is or will be located.
(b) The notice of the petition shall include:
(1) a description of the facility or proposed facility; and
(2) the location, date, and time of the field hearing required by
section 5 of this chapter.
Sec. 7. Not later than thirty (30) days after filing a petition
under IC 8-1-2.5 or IC 8-1-8.5, a merchant power plant shall
conduct a field hearing at a location in a county in which the
facility or proposed facility is or will be located. The purpose of the
field hearing is to determine local support for the merchant power
plant.
Sec. 8. Not later than thirty (30) days after the field hearing
required by section 5 of this chapter, a majority of the persons
described in section 4(a)(1) of this chapter may request in writing
a hearing before the commission.
Sec. 9. (a) Not later than thirty (30) days after a hearing is
requested under section 6 of this chapter, the commission shall
conduct a hearing at a location in a county in which the facility or
proposed facility is or will be located. The hearing required by this
subsection must be held:
(1) before or at the same time as the hearing required under
IC 8-1-8.5-5(b); and
(2) before the commission issues a certificate of public
convenience and necessity under IC 8-1-8.5.
(b) At least ten (10) days before the scheduled hearing, notice of
the hearing must be served by first class mail on:
(1) all record owners of property located within one-half (1/2)
mile of the proposed facility; and
(2) the merchant power plant.
(c) The parties to the hearing include:
(1) a person entitled to notice under section 7(b)(1) of this
chapter; and
(2) the merchant power plant.
(d) The commission shall accept written or oral testimony from
any person who appears at the public hearing, but the right to call
and examine witnesses is reserved for the parties to the hearing.
(e) The commission shall make a record of the hearing and all
testimony received. The commission shall make the record
available for public inspection.
professional geologist (as defined in IC 25-17.6-1-6.5) or an
engineer licensed under IC 25-31-1. The assessment must include
the following information:
(1) Sources of water supply.
(2) Total amount of water to be used by the merchant power
plant for each source
(3) Location of wells or points of withdrawal.
(4) Ability of the water resource to meet the needs of the
merchant power plant and other users.
(5) Probable effects of the merchant power plant's use and
consumption of the water resource on other users.
(6) Alternative sources of water supply.
(7) Conservation measures proposed by the merchant power
plant for reducing the plant's effect on the water resource.
(8) Other information required by any other law, rule, or
regulation.
Sec. 13. Following the approval of a petition by the commission,
the merchant power plant shall:
(1) notify the commission upon becoming an affiliate of any
regulated Indiana utility selling electricity at retail to Indiana
consumers, at which time the commission may reassert any
jurisdiction it had declined under IC 8-1-2.5;
(2) obtain prior commission approval with respect to the sale
of any electricity to any affiliated regulated Indiana retail
utility, or any affiliate of a regulated Indiana retail utility;
and
(3) obtain prior commission approval of any transfers of
ownership of the facility or its assets.