HB 1824-4_ Filed 04/04/2007, 10:06 Gard

SENATE MOTION


MADAM PRESIDENT:

    I move
that Engrossed House Bill 1824 be amended to read as follows:

SOURCE: Page 1, line 1; (07)MO182404.1. -->     Page 1, delete lines 1 through 17, begin a new paragraph and insert:
SOURCE: IC 8-1-2-6.1; (07)MO182404.1. -->     "SECTION 1. IC 8-1-2-6.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6.1. (a) As used in this section, "clean coal technology" means a technology (including precombustion treatment of coal):
        (1) that is used at a new or existing electric or steam generating facility and directly or indirectly reduces or avoids airborne emissions:
             (A) of:
                 (i) carbon, sulfur, mercury, or nitrogen based pollutants; or
                (ii) particulate matter;
            (B) that are
associated with the combustion or use of coal; and
             (C) that are regulated, or reasonably anticipated by the commission to be regulated, by:
                (i) the federal government;
                (ii) the state;
                (iii) a political subdivision of the state; or
                (iv) any agency of a unit of government described in items (i) through (iii); and

        (2) that either:
            (A) is not in general commercial use at the same or greater scale in new or existing facilities in the United States as of January 1, 1989; or
            (B) has been selected by the United States Department of Energy for funding under its Innovative Clean Coal Technology program and is finally approved for such funding on or after January 1, 1989.
    (b) As used in this section, "Indiana coal" means coal from a mine whose coal deposits are located in the ground wholly or partially in Indiana regardless of the location of the mine's tipple.
    (c) Except as provided in subsection (d), the commission shall allow a utility to recover as operating expenses those expenses associated with:
        (1) research and development designed to increase use of Indiana coal; and
        (2) preconstruction costs (including design and engineering costs) associated with employing clean coal technology at a new or existing coal burning electric or steam generating facility if the commission finds that the facility:
            (A) utilizes and will continue to utilize (as its primary fuel source) Indiana coal; or
            (B) is justified, because of economic considerations or governmental requirements, in utilizing non-Indiana coal;
        after the technology is in place.
    (d) The commission may only allow a utility to recover preconstruction costs as operating expenses on a particular project if the commission awarded a certificate under IC 8-1-8.7 for that project.
    (e) The commission shall establish guidelines for determining recoverable expenses.
SOURCE: IC 8-1-2-6.6; (07)MO182404.2. -->     SECTION 2. IC 8-1-2-6.6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6.6. (a) As used in this section:
    "Clean coal technology" means a technology (including precombustion treatment of coal):
        (1) that is used at a new or existing electric or steam generating facility and directly or indirectly reduces or avoids airborne emissions:
             (A) of:
                 (i) carbon, sulfur, mercury, or nitrogen based pollutants; or
                (ii) particulate matter;
            (B) that are
associated with the combustion or use of coal; and
             (C) that are regulated, or reasonably anticipated by the commission to be regulated, by:
                (i) the federal government;
                (ii) the state;
                (iii) a political subdivision of the state; or
                (iv) any agency of a unit of government described in items (i) through (iii); and

        (2) that either:
            (A) is not in general commercial use at the same or greater scale in new or existing facilities in the United States as of January 1, 1989; or
            (B) has been selected by the United States Department of Energy for funding under its Innovative Clean Coal Technology program and is finally approved for such funding on or after January 1, 1989.
    "Indiana coal" means coal from a mine whose coal deposits are located in the ground wholly or partially in Indiana regardless of the location of the mine's tipple.
    "Qualified pollution control property" means an air pollution control device on a coal burning electric or steam generating facility or any equipment that constitutes clean coal technology that has been approved for use by the commission, that meets applicable state or federal requirements, and that is designed to accommodate the burning of coal from the geological formation known as the Illinois Basin.
    "Utility" refers to any electric or steam generating utility allowed by law to earn a return on its investment.
    (b) Upon the request of a utility that began construction after October 1, 1985, and before March 31, 2002, of qualified pollution control property that is to be used and useful for the public convenience, the commission shall for ratemaking purposes add to the value of that utility's property the value of the qualified pollution control property under construction, but only if at the time of the application and thereafter:
        (1) the facility burns only Indiana coal as its primary fuel source once the air pollution control device is fully operational; or
        (2) the utility can prove to the commission that the utility is justified because of economic considerations or governmental requirements in utilizing some non-Indiana coal.
    (c) The commission shall adopt rules under IC 4-22-2 to implement this section.
SOURCE: IC 8-1-2-6.7; (07)MO182404.3. -->     SECTION 3. IC 8-1-2-6.7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6.7. (a) As used in this section, "clean coal technology" means a technology (including precombustion treatment of coal):
        (1) that is used in a new or existing electric or steam generating facility and directly or indirectly reduces or avoids airborne emissions:
             (A) of:
                 (i) carbon, sulfur, mercury, or nitrogen based pollutants; or
                (ii) particulate matter;
            (B) that are
associated with the combustion or use of coal; and
             (C) that are regulated, or reasonably anticipated by the commission to be regulated, by:
                (i) the federal government;
                (ii) the state;
                (iii) a political subdivision of the state; or
                (iv) any agency of a unit of government described in items (i) through (iii); and

        (2) that either:
            (A) is not in general commercial use at the same or greater scale in new or existing facilities in the United States as of

January 1, 1989; or
            (B) has been selected by the United States Department of Energy for funding under its Innovative Clean Coal Technology program and is finally approved for such funding on or after January 1, 1989.
    (b) The commission shall allow a public or municipally owned electric or steam utility that incorporates clean coal technology to depreciate that technology over a period of not less than ten (10) years or the useful economic life of the technology, whichever is less and not more than twenty (20) years if it finds that the facility where the clean coal technology is employed:
        (1) utilizes and will continue to utilize (as its primary fuel source) Indiana coal; or
        (2) is justified, because of economic considerations or governmental requirements, in utilizing non-Indiana coal;
after the technology is in place.

SOURCE: IC 8-1-2-6.8; (07)MO182404.4. -->     SECTION 4. IC 8-1-2-6.8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6.8. (a) This section applies to a utility that begins construction of qualified pollution control property after March 31, 2002.
    (b) As used in this section, "clean coal technology" means a technology (including precombustion treatment of coal):
        (1) that is used in a new or existing energy or steam generating facility and directly or indirectly reduces or avoids airborne emissions:
             (A) of:
                 (i) carbon, sulfur, mercury, or nitrogen oxides;
                 (ii) particulate matter; or
                 (iii) other regulated air emissions;
             (B) that are associated with the combustion or use of coal; and
             (C) that are regulated, or reasonably anticipated by the commission to be regulated, by:
                (i) the federal government;
                (ii) the state;
                (iii) a political subdivision of the state; or
                (iv) any agency of a unit of government described in items (i) through (iii); and

        (2) that either:
            (A) was not in general commercial use at the same or greater scale in new or existing facilities in the United States at the time of enactment of the federal Clean Air Act Amendments of 1990 (P.L.101-549); or
            (B) has been selected by the United States Department of Energy for funding under its Innovative Clean Coal Technology program and is finally approved for such funding on or after the date of enactment of the federal Clean Air Act

Amendments of 1990 (P.L.101-549).
    (c) As used in this section, "qualified pollution control property" means an air pollution control device on a coal burning energy or steam generating facility or any equipment that constitutes clean coal technology that has been approved for use by the commission and that meets applicable state or federal requirements.
    (d) As used in this section, "utility" refers to any energy or steam generating utility allowed by law to earn a return on its investment.
    (e) Upon the request of a utility that begins construction after March 31, 2002, of qualified pollution control property that is to be used and useful for the public convenience, the commission shall for ratemaking purposes add to the value of that utility's property the value of the qualified pollution control property under construction.
    (f) The commission shall adopt rules under IC 4-22-2 to implement this section.

SOURCE: IC 8-1-8.7-1; (07)MO182404.5. -->     SECTION 5. IC 8-1-8.7-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. As used in this chapter, "clean coal technology" means a technology (including precombustion treatment of coal):
        (1) that is used in a new or existing electric or steam generating facility and directly or indirectly reduces or avoids airborne emissions:
             (A) of:
                 (i) carbon, sulfur, mercury, or nitrogen based pollutants; or
                (ii) particulate matter;
            (B)
that are associated with the combustion or use of coal; and
             (C) that are regulated, or reasonably anticipated by the commission to be regulated, by:
                (i) the federal government;
                (ii) the state;
                (iii) a political subdivision of the state; or
                (iv) any agency of a unit of government described in items (i) through (iii); and

        (2) that either:
            (A) is not in general commercial use at the same or greater scale in new or existing facilities in the United States as of January 1, 1989; or
            (B) has been selected by the United States Department of Energy for funding under its Innovative Clean Coal Technology program and is finally approved for such funding on or after January 1, 1989.".
    Delete pages 2 through 5.
SOURCE: Page 6, line 1; (07)MO182404.6. -->     Page 6, delete lines 1 through 8.
    Page 7, delete lines 14 through 39, begin a new paragraph and insert:
SOURCE: IC 8-1-8.8-3; (07)MO182404.7. -->     "SECTION 7. IC 8-1-8.8-3 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. As used in this chapter, "clean coal technology" means a technology (including precombustion treatment of coal):
        (1) that is used in a new or existing energy generating facility and directly or indirectly reduces or avoids airborne emissions:
             (A) of:
                 (i) carbon, sulfur, mercury, or nitrogen oxides;
                 (ii) particulate matter; or
                 (iii) other regulated air emissions;
             (B) that are associated with the combustion or use of coal; and
             (C) that are regulated, or reasonably anticipated by the commission to be regulated, by:
                (i) the federal government;
                (ii) the state;
                (iii) a political subdivision of the state; or
                (iv) any agency of a unit of government described in items (i) through (iii); and

        (2) that either:
            (A) was not in general commercial use at the same or greater scale in new or existing facilities in the United States at the time of enactment of the federal Clean Air Act Amendments of 1990 (P.L.101-549); or
            (B) has been selected by the United States Department of Energy for funding under its Innovative Clean Coal Technology program and is finally approved for such funding on or after the date of enactment of the federal Clean Air Act Amendments of 1990 (P.L.101-549).".

SOURCE: Page 8, line 16; (07)MO182404.8. -->     Page 8, line 16, delete "emissions from an" and insert " emissions:
        (1) of:

             (A) carbon, sulfur, mercury, or nitrogen based pollutants; or
             (B) particulate matter;
        (2) that are produced by an electric or a steam generating facility; and
        (3) that are regulated, or reasonably anticipated by the commission to be regulated, by:
            (A) the federal government;
            (B) the state;
            (C) a political subdivision of the state; or
            (D) any agency of a unit of government described in clauses (A) through (C).
".
    Page 8, delete lines 17 through 23.
    Renumber all SECTIONS consecutively.
    (Reference is to EHB 1824 as printed March 30, 2007.)

________________________________________

Senator GARD


MO182404/DI 101
2007