HB 1101-2_ Filed 01/29/2008, 07:28 Crooks
PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
HOUSE MOTION ____
I move that House Bill 1101 be amended to read as follows:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
SOURCE: Page 2, line 6; (08)MO110102.2. -->
Page 2, between lines 6 and 7, begin a new paragraph and insert:
SOURCE: IC 8-1-2-23; (08)MO110102.2. -->
"SECTION 2. IC 8-1-2-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 23. (a)
shall keep itself informed of all new construction, extensions and
additions to the property of such public utility and shall prescribe the
necessary forms, regulations and instructions to the officers and
employees of such public utility for the keeping of construction
accounts which shall clearly distinguish all operating expenses and new
construction. Unless a public utility shall obtain the approval by the
commission of any expenditure exceeding ten thousand dollars
($10,000) for an extension, construction, addition or improvement of
its plant and equipment, the commission shall not, in any proceeding
involving the rates of such utility, consider the property acquired by
such expenditures as a part of the rate base, unless in such proceeding
utility shall show that such property is in fact used and
useful in the public service; provided, that the commission in its
discretion may authorize the expenditure for such purpose of a less
amount than shown in such estimate.
(b) For purposes of subsection (a), the construction, addition,
extension, or improvement of a public utility's plant or equipment
to provide electric or gas service to a customer that produces
biodiesel, ethanol, or any other biofuel is in fact used and useful in
the public service.
(c) This subsection applies to a public utility's general rate
proceeding that immediately follows the public utility's investment
in a construction, an addition, an extension, or an improvement
described in subsection (b). The public utility may accrue for
recovery in the rate proceeding a return on the public utility's
investment, beginning on the date the public utility initially records
the investment in the public utility's books or records, as
determined by the commission, at the rate of return authorized by
the commission in the public utility's general rate proceeding
immediately preceding the investment.
SOURCE: IC 8-1-35; (08)MO110102.3. -->
SECTION 3. IC 8-1-35 IS ADDED TO THE INDIANA CODE AS
CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
Chapter 35. Renewable Energy Development
Sec. 1. As used in this chapter, "electricity supplier" means a
public utility that furnishes retail electric service to the public. The
term does not include a public utility that is:
(1) a corporation organized under IC 8-1-13;
(2) a corporation organized under IC 23-17-1 that is an
electric cooperative and that has at least one (1) member that
is a corporation organized under IC 8-1-13; or
(3) a municipally owned utility (as defined in IC 8-1-2-1(h)).
Sec. 2. (a) As used in this chapter, "end use energy efficiency
improvement" means the installation and use of a device or the use
of a method or project on the customer side of an electric utility
metering device that reduces electrical energy usage.
(b) The term includes the following:
(1) Home weatherization.
(2) Appliance efficiency modifications or replacements.
(3) Motor efficiency modifications or replacements.
(4) Lighting efficiency modifications.
(5) Heating or air conditioning modifications or replacements.
(6) Building designs with the purpose of achieving end use
Sec. 3. As used in this chapter, "fund" refers to the renewable
energy resources fund established by section 9 of this chapter.
Sec. 4. As used in this chapter, "regional transmission
organization" refers to a regional transmission organization
approved by the Federal Energy Regulatory Commission for the
geographic area in which an electricity supplier's assigned service
area (as defined in IC 8-1-2.3-2) is located.
Sec. 5. As used in this chapter, "renewable energy credit", or
"REC", means one (1) megawatt hour of electricity generated by
renewable energy resources that is:
(2) possessed by not more than one (1) entity at a time; and
(3) associated with electricity generated by renewable energy
resources that are constructed or installed after January 1,
Sec. 6. (a) As used in this chapter, "renewable energy resources"
includes the following sources for the production of electricity:
(1) Dedicated crops grown for energy production.
(2) Methane systems that convert waste products, including
animal, food, and plant waste, into electricity.
(3) Methane recovered from landfills.
(5) Hydropower, other than hydropower involving the
construction of new dams or the expansion of existing dams.
(6) Solar photovoltaic cells and panels.
(7) Fuel cells that directly convert chemical energy in a
hydrogen rich fuel into electricity.
(8) Sawmill waste, other than waste derived from virgin
(9) Agricultural crop waste.
(10) Combined heat and power systems that:
(A) use natural gas or renewable energy resources as
(B) achieve at least seventy percent (70%) overall
(C) are constructed after January 1, 2008.
(11) End use energy efficiency improvements, installed after
January 1, 2008, that reduce electrical energy usage.
(b) The term does not include energy from the incineration,
burning, or heating of the following:
(3) General household, institutional, or commercial waste.
(4) Industrial lunchroom or office waste.
(5) Landscape waste.
(6) Construction or demolition debris.
(7) Feedstock that is municipal, food, plant, industrial, or
animal waste from outside Indiana.
Sec. 7. (a) Each electricity supplier shall supply electricity
generated or reduced by renewable energy resources to Indiana
customers as a percentage of the total electricity supplied by the
electricity supplier to Indiana customers as follows:
(1) Not later than December 31, 2010, at least one percent
(2) Not later than December 31, 2011, at least two percent
(3) Not later than December 31, 2012, at least three percent
(4) Not later than December 31, 2013, at least four percent
(5) Not later than December 31, 2014, at least five percent
(6) Not later than December 31, 2015, at least six percent
(7) Not later than December 31, 2016, at least seven percent
(8) Not later than December 31, 2017, at least eight percent
For purposes of this subsection, electricity is measured in
(b) An electricity supplier may use a renewable energy resource
described in section 6(a)(10) of this chapter to generate not more
than ten percent (10%) of the electricity that the electricity
supplier is required to supply under subsection (a).
(c) An electricity supplier may use a renewable energy resource
described in section 6(a)(11) of this chapter to generate not more
than ten percent (10%) of the electricity that the electricity
supplier is required to supply under subsection (a).
(d) An electricity supplier may own or purchase RECs to
comply with subsection (a).
(e) An electricity supplier is responsible for conducting
sufficient advance planning to acquire its allotment of RECs.
(f) An electricity supplier that fails to comply with subsection (a)
shall deposit in the fund an amount equal to:
(1) the number of megawatt hours of electricity that the
electricity supplier was required to but failed to supply under
subsection (a); multiplied by
(2) fifty dollars ($50).
(g) An electricity supplier is not required to comply with
subsection (a) if the commission determines that events beyond the
reasonable control of the electricity supplier prevent it from
meeting its renewable energy resources or REC requirements. For
purposes of this subsection, "events beyond the reasonable control
of the electricity supplier" include only the following:
(1) Weather related damage.
(2) Mechanical failure.
(3) Lack of transmission capacity or availability.
(4) Strikes or lockouts.
(5) Actions of a governmental authority that adversely affect
the generation, transmission, or distribution of energy from
renewable energy resources under contract to a purchaser.
(6) An emergency as found by the commission under
The term does not include failure of the spot or short term market
to supply an electricity supplier with the allocated number of
(h) The commission shall conduct a public hearing before
making a determination under subsection (g).
(i) If the commission determines under subsection (g) that
events beyond the reasonable control of the electricity supplier
prevent it from meeting its renewable energy resources or REC
requirements, the commission shall:
(1) reduce the affected electricity supplier's obligations under
subsection (a) as appropriate; and
(2) review its determination not more than six (6) months
after the reduction under subdivision (1) takes effect.
(j) The commission shall allow an electricity supplier to recover
reasonable and necessary costs incurred in:
(1) constructing, operating, or maintaining facilities to comply
with this chapter; or
(2) generating electricity from, or purchasing electricity
generated from, a renewable energy resource;
by a periodic rate adjustment mechanism.
Sec. 8. (a) For purposes of calculating RECs to determine an
electricity supplier's compliance with section 7(a) of this chapter,
the following apply:
(1) One (1) megawatt hour of electricity generated by
renewable energy resources in an Indiana facility equals one
(2) One (1) megawatt hour of electricity generated by a
renewable energy resource described in section 6(a)(2),
6(a)(6), 6(a)(8), or 6(a)(9) of this chapter that originates in
Indiana equals one and two-tenths (1.2) RECs.
(3) One (1) megawatt hour of electricity that is:
(A) generated by a renewable energy resource in the
territory of a regional transmission organization; and
(B) imported into Indiana;
equals five-tenths (0.5) REC.
(4) One (1) megawatt hour of electricity that is generated by
a renewable energy resource described in section 6(a)(10) of
this chapter in Indiana equals five-tenths (0.5) REC.
(b) Electricity generated by any source outside the territory of
a regional transmission organization may not be considered for
purposes of calculating an REC to determine an electricity
supplier's compliance with section 7(a) of this chapter.
(c) An electricity supplier may satisfy not more than ten percent
(10%) of the electricity supplier's requirement under section 7(a)
of this chapter by owning or purchasing RECs calculated under
(d) An electricity supplier may calculate only one (1) REC for
each megawatt hour of electricity.
Sec. 9. (a) The renewable energy resources fund is established
(1) support the development, construction, and use of
renewable energy resources, including small scale renewable
energy resources, in rural and urban Indiana; and
(2) reimburse the Indiana economic development corporation
and the commission for expenses incurred under section 10 of
(b) The fund consists of the following:
(1) Money deposited under section 7(f) of this chapter.
(2) Money from any other source that is deposited in the fund.
(c) The Indiana economic development corporation shall
administer the fund.
(d) The expenses of administering the fund shall be paid from
money in the fund.
(e) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that
accrues from these investments shall be deposited in the fund.
(f) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Sec. 10. (a) This section applies if there is sufficient money in the
fund to reimburse the Indiana economic development corporation
and the commission for expenses incurred under subsection (b).
(b) The Indiana economic development corporation, in
consultation with the commission, shall develop a strategy to
attract renewable energy manufacturing facilities, including wind
turbine component manufacturers, to Indiana.
Sec. 11. Not later than March 1 of 2011 and each year
thereafter, a utility shall file with the commission a report of the
utility's compliance with this chapter for the preceding calendar
Sec. 12. The commission shall adopt rules under IC 4-22-2 to
implement this chapter.
SOURCE: ; (08)MO110102.4. -->
SECTION 4. [EFFECTIVE UPON PASSAGE] Not later than
April 1, 2013, the Indiana utility regulatory commission shall
submit a report in an electronic format under IC 5-14-6 to the
general assembly. A report submitted under this SECTION must
(1) an analysis of; and
(2) any legislative proposals the commission believes would
the effectiveness of and industry compliance with IC 8-1-35, as
added by this act.
Renumber all SECTIONS consecutively.
(Reference is to HB 1101 as printed January 25, 2008.)
MO110102/DI 75 2008