SB 29-2_ Filed 01/28/2002, 14:46

COMMITTEE REPORT

MR. PRESIDENT:

    The Senate Committee on Energy and Economic Development, to which was referred Senate Bill No. 29, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

SOURCE: Page 1, line 7; (02)CR002901.1. -->     Page 1, line 7, delete "electric generating capacity" and insert " energy generating facilities".
    Page 1, line 9, delete "electric" and insert " energy".
    Page 1, line 9, delete "capacity" and insert " capacity, including the use of renewable energy resources,".
    Page 1, line 13, delete "electric power" and insert " energy generating facilities".
    Page 1, line 16, delete "electric generating plants" and insert " new energy generating facilities".
    Page 1, line 17, delete "Indiana coal." and insert " coal from the geological formation known as the Illinois basin.".
    Page 2, line 8, delete "electric" and insert " energy".
    Page 2, line 10, delete "electricity" and insert " energy".
    Page 2, line 12, after "security" insert " and reliability".
    Page 2, line 13, delete "electric" and insert " energy".
    Page 2, line 15, delete "electricity" and insert " energy".
    Page 2, line 18, delete "electric plants." and insert " energy generating facilities.".
    Page 2, line 22, delete "electric plants" and insert " energy generating facilities".
    Page 2, line 25, delete " new electric" and insert " any of the

following:
        (1) New energy
".
    Page 2, delete line 28.
    Page 2, line 29, delete "(2)", begin a new line double block indented, and insert:
            " (A)".
    Page 2, delete lines 30 through 31.
    Page 2, line 32, delete "(4)", begin a new line double block indented, and insert:
            " (B)".
    Page 2, line 34, delete "(5)", begin a new line double block indented, and insert:
            " (C)".
    Page 2, between lines 34 and 35, begin a new line block indented and insert:
        " (2) Projects to develop alternative energy sources, including renewable energy projects.    
        (3) The purchase of fuels produced by a coal gasification facility.".
     Sec. 3. As used in this chapter, "clean coal technology" has the meaning set forth in IC 8-1-8.7-1.
    Sec. 4. As used in this chapter, "coal gasification facility" means a facility in Indiana that uses a manufacturing process that converts coal into a clean gas that can be used as a fuel to generate energy.
".
    Page 2, line 35, delete "3." and insert " 5.".
    Page 2, line 39, delete "4." and insert " 6.".
    Page 2, line 40, delete "that" and insert " that :
        (1)
".
    Page 2, line 41, delete "electric" and insert " energy".
    Page 2, line 41, delete "facility." and insert " facility;
        (2) undertakes a project to develop alternative energy sources, including renewable energy projects; or
        (3) purchases fuels produced by a coal gasification facility.
".
    Page 2, line 42, delete "5." and insert " 7.".
    Page 3, line 2, delete "6." and insert " 8.".
    Page 3, line 2, delete "electric" and insert " energy".
    Page 3, line 6, delete "electric" and insert " energy".
    Page 3, line 10, delete "or construction" and insert " construction,

or expansion".
    Page 3, line 12, after "rated" insert " electric".
    Page 3, line 14, delete "site." and insert " site or a generating capacity of at least four hundred thousand (400,000) pounds per hour of steam.".
    Page 3, line 16, delete "electricity" and insert " energy".
    Page 3, line 18, delete "7." and insert " 9.".
    Page 3, line 19, delete "electric" and insert " energy".
    Page 3, line 20, delete "to generate electricity".
    Page 3, line 24, delete "8." and insert " 10.".
    Page 3, delete line 29.
    Page 3, line 30, delete "(4)" and insert " (3)".
    Page 3, line 31, delete "(5)" and insert " (4)".
    Page 3, line 32, delete "(6)" and insert " (5)".
    Page 3, line 33, delete "(7) Hydropower." and insert " (6) Hydropower from existing dams.".
    Page 3, line 41, delete "9." and insert " 11.".
    Page 4, line 1, delete "the construction and operation of" and insert " clean coal and energy".
    Page 4, line 3, delete "operation." and insert " operation of new energy generating facilities.".
    Page 4, line 4, delete "hundred (300) basis" and insert " (3) percentage".
    Page 4, line 6, delete "such projects." and insert " projects described in subdivision (1).".
    Page 4, between lines 6 and 7, begin a new line block indented and insert:
        " (3) Financial incentives for the purchase of fuels produced by a coal gasification facility, including cost recovery and the incentive available under subdivision (2) for new energy generating facilities.
        (4) Financial incentives for projects to develop alternative energy sources, including renewable energy projects.
".
    Page 4, line 7, delete "(3)" and insert " (5)".
    Page 4, between lines 15 and 16, begin a new paragraph and insert:
    " (d) The commission shall issue a preliminary determination of

a project's eligibility for the financial incentives described in subsection (a) not later than ninety (90) days after the date of the application.".
    Page 4, line 16, delete "10." and insert " 12.".
    Page 4, line 17, delete "electric" and insert " energy".
    Page 4, line 19, after "repowering," insert " expansion,".
    Page 4, line 27, delete "or acquisition" and insert " acquisition, or expansion".
    Page 4, line 27, delete "electric" and insert " energy".
    Page 4, line 32, delete "electric" and insert " energy".
    Page 4, line 36, delete "of" and insert " that".
    Page 4, line 38, delete "costs." and insert " costs are reasonable and in the public interest.".
    Page 4, between lines 38 and 39, begin a new paragraph and insert:
    " (e) The commission shall allow an eligible business to recover the costs associated with the purchase of fuels produced by a coal gasification facility if the eligible business provides substantial documentation that the costs associated with the purchase are reasonable and in the public interest.".
    Page 4, line 39, delete "(e)" and insert " (f)".
    Page 4, line 42, delete "(f)" and insert " (g)".
    Page 5, line 5, delete "(g)" and insert " Sec. 13.".
    Page 5, line 8, delete "the new electric" and insert " a new energy".
    Page 5, delete lines 10 through 12.
    Page 5, between lines 12 and 13, begin a new line block indented and insert:
        " (2) The amount of any fuel produced by a coal gasification facility and purchased by the eligible business during the previous month.".
    Page 5, line 13, delete "(4) Such other information as" and insert


" (3) Any other information".
    Page 5, line 15, delete "11." and insert " 14.".
    Page 5, line 19, delete "IC 8-1-25-9" and insert " IC 8-1-2.5-9".
    (Reference is to SB 29 as printed January 18, 2002.)

and when so amended that said bill do pass.

Committee Vote: Yeas 9, Nays 0.

____________________________________

    Weatherwax
Chairperson


CR002901/DI 101    2002