Citations Affected: IC 8-1-2-128; IC 8-1.3.
Synopsis: Sustainable energy. Establishes the sustainable energy
institute to: (1) ensure that utility customers may participate in and
benefit from sustainable energy programs; and (2) promote and
implement sustainable energy programs. Establishes the sustainable
energy board to monitor the progress of the institute in implementing
sustainable energy programs. Requires energy utilities to contract with
the institute to provide energy efficiency and demand side management
services to customers. Allows an energy utility to recover costs
associated with sustainable energy programs. Establishes the advanced
sustainable energy research and development account in the state
general fund to provide grants and loans for sustainable energy
research and development projects. Requires the sustainable energy
board to administer the account and consider applicants for grants and
loans from the account.
Effective: Upon passage.
January 19, 2005, read first time and referred to Committee on Utilities and Energy.
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities and transportation.
by IC 8-1.3-3-1. The commission shall determine the energy
utility's proportionate share based on the energy utility's share of
retail energy use in Indiana.
(d) The expenses of the sustainable energy board in a fiscal year equals the sum of:
(1) the budget of the board approved by the general assembly for the fiscal year; plus
(2) one hundred thousand dollars ($100,000) designated for a contingency fund.
Expenses of the board include funding for the advanced sustainable energy research and development account established by IC 8-1.3-5-2. However, the funds provided by the board to the account may not exceed ten percent (10%) of the board's total annual budget under subdivision (1). An expenditure from the contingency fund described in subdivision (2) is subject to approval by the governor and the budget agency.
(e) An energy utility shall pay to the board twenty-five percent (25%) of the energy utility's annual share of the expenses of the board quarterly. However, an energy utility may pay one hundred percent (100%) of the energy utility's annual share of the expenses of the board at the beginning of the utility's fiscal year.
(f) The costs of the sustainable energy board and the services of the sustainable energy institute paid by an energy utility are allowable operating expenses for retail ratemaking purposes. An energy utility may petition the commission under IC 8-1-2-42 to recover the energy utility's expenses under this section through a tracking mechanism.
(g) Upon petition by an energy utility under subsection (f), the commission, after notice and hearing, shall allow an amount equal to ten percent (10%) of the net annual savings resulting to an energy utility's retail customers from the services of the institute, as calculated by the institute and approved by the commission, as an allowable increment to the energy utility's return for retail ratemaking purposes. An increment to return allowed under this subsection shall be instead of lost margin recovery or other means by which an energy utility may be compensated for any reduction resulting from programs established under IC 8-1.3.
that is a subsidiary of an investor owned electric or gas
(J) One (1) representative of a statewide consumer organization that represents low income and residential utility ratepayers.
(K) One (1) representative of a statewide environmental organization.
(L) One (1) representative of a statewide electric or sheet metals contractors organization.
(M) One (1) representative of a statewide heating and air conditioning installation organization.
(N) One (1) representative of a labor organization from the heating and air conditioning industry.
(O) One (1) representative of a labor organization from the electrical construction industry.
(P) One (1) representative of a statewide home construction association.
(Q) One (1) representative of a statewide public health organization.
(b) Except as provided in section 5 of this chapter, a member described in subsection (a)(1) through (a)(5) is a nonvoting member.
(c) The appointments made by the governor under subsection (a)(6) must be made in accordance with recommendations provided by the organizations described in subsection (a)(6).
Sec. 3. (a) Members of the board must be appointed not more than sixty (60) days after the board is established. Except as provided in subsection (b), each member appointed under section 2(a)(6) of this chapter serves a term of four (4) years beginning on the date of the member's appointment and until the member's successor is appointed.
(b) The governor shall prescribe the terms of the members initially appointed under section 2(a)(6) of this chapter so that the terms are staggered. After the initial appointments under section 2(a)(6) of this chapter, a member appointed by the governor serves a term of four (4) years and until the member's successor is appointed.
(c) The governor shall fill a vacancy on the board under section 2(a)(6) of this chapter not more than thirty (30) days after the vacancy occurs. A person appointed to fill a vacancy shall serve the remainder of the term of the board member the person replaces.
Sec. 4. (a) A member of the board who is not a state employee is
not entitled to the minimum salary per diem provided by
IC 4-10-11-2.1(b). The member is, however, entitled to
reimbursement for travel expenses as provided in IC 4-13-1-4 and
other expenses actually incurred in connection with the member's
duties as provided in the state policies and procedures established
by the Indiana department of administration and approved by the
(b) A member of the board who is a state employee but who is not a member of the general assembly is not entitled to compensation.
(c) A member of the board who is a member of the general assembly is entitled to receive the same per diem, mileage, and travel allowances paid to legislative members of interim study committees established by the legislative council. Per diem, mileage, and travel allowances paid under this subsection are paid from appropriations made to the legislative council or the legislative services agency.
Sec. 5. The governor shall appoint one (1) member of the board appointed under section 2(a)(1) through 2(a)(5) of this chapter to serve as chairperson. The chairperson shall do the following:
(1) Act as executive and operating officer of the board.
(2) Determine the time and place of meetings.
(3) Preside at meetings.
(4) Implement the policies of the board.
(5) Perform all other duties and functions assigned by the board or by law.
The chairperson may vote on any matter before the board only to break a tie vote.
Sec. 6. (a) The board shall meet at least quarterly.
(b) The meetings of the board shall be open to the public under IC 5-14-1.5.
(c) The board shall give notice of a board meeting in accordance with IC 5-14-1.5-5(b) at least fourteen (14) days before the meeting.
(d) The board shall give a person who attends a public meeting of the board an adequate opportunity to comment through the oral or written presentation of facts or argument.
(e) The board shall maintain and make available for public inspection written comments submitted to the board.
(f) A majority of the voting members of the board constitutes a quorum for doing business. Except as otherwise provided by law, the affirmative vote of a majority of the voting members present is necessary for the passage of any matter put to a vote.
(12) Programs to analyze and evaluate barriers to deploying distributed resources.
(13) Initiatives to promote the use of renewable resources by Indiana consumers and businesses.
(14) Initiatives to promote the development of renewable energy resources and businesses in Indiana.
(15) Initiatives to improve the reliability of electric transmission and distribution systems through the use of distributed energy resources.
(16) Other programs and initiatives designated by the board.
(b) The institute shall develop and submit to the board a five (5) year plan for meeting the goals and purposes of this article.
Sec. 5. A program or initiative developed by the institute supersedes and replaces any efficiency and demand side management program sponsored or initiated by an energy utility.
Sec. 6. (a) The state board of accounts shall annually audit the institute.
(b) The institute shall pay the full costs of the audit required by subsection (a).
Sec. 7. Debts incurred by the institute under this article do not constitute a debt of the state within the meaning of the Constitution of the State of Indiana or Indiana law.
Sec. 8. (a) The institute shall submit a report before July 1 of each year to the governor, the board, and, in an electronic format under IC 5-14-6, the legislative council.
(b) A report submitted under subsection (a) must include the following:
(1) A statement of the institute's revenues by source and expenditures by purpose.
(2) Statistics relevant to the programs and operations of the institute.
(3) A description of the institute's goals, legal responsibilities, and accomplishments.
(4) An assessment of renewable energy markets and of the potential for the implementation of energy efficiency improvements and renewable energy in Indiana.
(5) Suggestions for legislation and the rationale for the suggestions.
(6) The progress in carrying out the plan required by section 4(b) of this chapter.
(7) Any comments or proposals that a board member gives to
the director of the institute to include in the report.
(8) Reductions in demand or in growth of demand for electricity and natural gas as a result of sustainable energy technologies implemented under this article.
(9) Savings to customers as a result of demand reductions.
(10) Deployment of sustainable energy technologies.
(11) Any other matter the institute wishes to bring to the attention of the governor, the board, and the legislative council.
(c) The institute shall conduct a meeting to receive comments from interested parties concerning the report required under subsection (a) before the report is submitted to the governor, the board, and the legislative council.
Sec. 9. The assessment required by section 8(b)(4) of this chapter must include the following:
(1) Short term and long term energy costs.
(2) An analysis of the barriers to and potential of sustainable energy resources in Indiana and the region.
(3) An estimate of existing investments in sustainable energy resources in Indiana.
(4) An estimate of probable future market driven investments in sustainable energy resources in Indiana.
(5) A recommendation concerning the optimal extent, size, mix, and general location of sustainable energy resources to achieve maximum efficiencies and benefits for the citizens of Indiana.
(6) Societal costs and benefits of sustainable energy, including the following:
(A) Impact on electric and natural gas system reliability.
(B) Impact on public health costs.
(C) Impact on environmental quality and cost savings to the citizens of Indiana.
(D) Impact on competitive electric and natural gas markets.
(E) Impact on economic growth, including employment opportunities.
(F) Other issues the institute considers relevant.
Sec. 10. (a) The fiscal agent appointed by the board under IC 8-1.3-3-8 shall receive and disburse funds of the institute.
(b) Expenses incurred by the institute shall be paid for:
(1) in the manner provided by IC 8-1-2-128;
(2) from appropriations to the institute from any source;
project, such as:
(A) a statement of the way in which support from the fund will lead to significantly increased funding from federal or private sources and from private sector research partners; and
(B) a projection of the number and types of jobs to be created, if applicable.
(4) The identity, qualifications, and obligations of the applicant.
(5) Any other information the board considers appropriate.
Sec. 4. In making a determination on awarding a grant or loan under this chapter, the board shall be advised by a peer review panel described in section 5 of this chapter and shall consider the following:
(1) The ability of the project to transfer research and technology into a marketable sustainable energy product.
(2) The predicted future success of federal or private funding for the project.
(3) The extent to which the project evidences interdisciplinary or interinstitutional collaboration among two (2) or more Indiana institutions of higher education or private sector partners, as well as cost sharing and partnership support from the business community.
Sec. 5. The board shall contract with the Indiana twenty-first century research and technology fund board established by IC 4-4-5.1-6 to establish a peer review panel to:
(1) review sustainable energy research and development project proposals submitted to the board under this chapter; and
(2) make recommendations to the board on the proposals reviewed under subdivision (1).
The requirements for establishing a peer review panel under IC 4-4-5.1-5(d) apply to a peer review panel established under this section.