SB 224-1_ Filed 01/24/2008, 08:48
COMMITTEE REPORT
MADAM PRESIDENT:
The Senate Committee on Utilities and Regulatory Affairs, to which was referred Senate Bill No. 224,
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:
Delete everything after the enacting clause and insert the following:
SOURCE: IC 8-1-2-6.1; (08)AM022401.1. -->
SECTION 1. IC 8-1-2-6.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 6.1.
(a) As used in this
section, "airborne emissions" means air emissions of greenhouse
gases, sulfur, mercury, nitrogen based pollutants, or particulate
matter that are:
(1) emitted from an electric or steam generating facility;
(2) associated with the combustion or use of coal or natural
gas; and
(3) regulated, or found by the commission to be reasonably
certain 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).
(a) (b) 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;
of s
ulfur or nitrogen based pollutants associated with
the combustion or use of coal; 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) (c) 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) (d) Except as provided in subsection (d), (e), 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) (e) 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) (f) The commission shall establish guidelines for determining
recoverable expenses.
SOURCE: IC 8-1-2-6.6; (08)AM022401.2. -->
SECTION 2. IC 8-1-2-6.6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: 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 of sulfur or nitrogen based pollutants associated with
combustion or use of coal; (as defined in section 6.1(a) of this
chapter); 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; (08)AM022401.3. -->
SECTION 3. IC 8-1-2-6.7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: 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 stream generating
facility and directly or indirectly reduces or avoids airborne
emissions of sulfur or nitrogen based pollutants associated with
the combustion or use of coal; (as defined in section 6.1(a) of
this chapter); 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 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; (08)AM022401.4. -->
SECTION 4. IC 8-1-2-6.8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: 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 airborne emissions
of
sulfur, mercury, or nitrogen oxides or other regulated air
emissions associated with the combustion or use of coal; (as
defined in section 6.1(a) of this chapter); 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 8-1-2-6.9; (08)AM022401.5. -->
SECTION 5. IC 8-1-2-6.9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2008]: Sec. 6.9. (a) As used in this section, "airborne emissions"
has the meaning set forth in section 6.1(a) of this chapter.
(b) As used in this section, "airborne emissions project" means
a project designed to reduce or avoid airborne emissions from an
existing electric generating facility. The term includes offset
programs, such as agricultural and forestry activities that reduce
the level of greenhouse gases in the atmosphere.
(c) As used in this section, "existing electric generating facility"
means a facility that:
(1) is used to generate electricity or steam;
(2) is associated with the combustion or use of coal or natural
gas; and
(3) either:
(A) commenced commercial operation; or
(B) was certified by the commission under IC 8-1-8.5-2;
before July 1, 2008.
(d) An energy utility (as defined in IC 8-1-2.5-2) may petition
the commission for approval of the construction, installation, and
operation or an airborne emissions project. If the commission
finds, after notice and hearing, the proposed airborne emissions
project to be reasonable and necessary, the commission shall
approve the project and provide the following incentives:
(1) The timely recovery of costs associated with the airborne
emissions project, including capital, operating, maintenance,
depreciation, tax, research and development, and financing
costs incurred during the construction and operation of the
airborne emissions project.
(2) The recovery of costs associated with:
(A) the purchase of emissions allowances; or
(B) the payment of emissions taxes arising from
compliance with air emissions regulations.
(e) In addition to the incentives described in subsection (d), the
commission may provide any other financial incentives the
commission considers appropriate.
SOURCE: IC 8-1-8.4; (08)AM022401.6. -->
SECTION 6. IC 8-1-8.4 IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2008]:
Chapter 8.4. Electric Line Facilities Projects
Sec. 1. The general assembly finds that it is in the public interest
for the state to encourage:
(1) investment in electric transmission and distribution
infrastructure; and
(2) electricity suppliers' participation in a regional
transmission organization;
to ensure a reliable and economic electricity supply to Indiana
consumers.
Sec. 2. As used in this chapter, "commission" refers to the
Indiana utility regulatory commission created by IC 8-1-1-2.
Sec. 3. As used in this chapter, "electric line facilities" means
the following:
(1) Overhead or underground electric transmission lines and
related equipment.
(2) Overhead or underground electric distribution lines and
related equipment.
(3) Electric substations and related equipment, including
transformers, circuit breakers, and protection equipment.
Sec. 4. As used in this chapter, "electric line facilities project"
means the construction, operation, maintenance, reconstruction,
relocation, addition to, upgrading of, or removal of electric line
facilities.
Sec. 5. As used in this chapter, "electricity supplier" means a
public utility that furnishes retail electric service to the public.
Sec. 6. As used in this chapter, "public utility" has the meaning
set forth in IC 8-1-2-1.
Sec. 7. As used in this chapter, "regional transmission
organization" refers to the regional transmission organization
approved by the Federal Energy Regulatory Commission for the
control area in which an electricity supplier owns electric line
facilities.
Sec. 8. The commission shall encourage electric line facilities
projects and participation in regional transmission organizations
by creating the following financial incentives that the commission
finds to be reasonable and necessary:
(1) The timely recovery, by means of a periodic rate
adjustment mechanism, of costs incurred by an electricity
supplier taking service under a tariff of, or being assessed
costs by, a regional transmission organization.
(2) The timely recovery, by means of a periodic rate
adjustment mechanism, of costs incurred by an electricity
supplier for an electric line facilities project.
(3) Other financial incentives the commission considers
appropriate.
Sec. 9. (a) An electricity supplier that seeks to receive one (1) or
more financial incentives created under section 8 of this chapter
must submit an application to the commission.
(b) Upon receipt of an application under subsection (a), the
commission shall review the application for completeness. The
commission may request additional information from an applicant
as needed.
(c) The commission shall, after notice and hearing, issue a
determination of an electricity supplier's eligibility for the financial
incentives described in section 8 of this chapter not later than one
hundred eighty (180) days after the date of the application.
(d) The commission shall approve an electricity supplier's
application under this section if the electricity supplier's electric
line facilities project is reasonable and necessary. An electric line
facilities project is presumed to be reasonable and necessary if the
electric line facilities project is consistent with, or part of, a plan
developed by the regional transmission organization.
SOURCE: IC 8-1-8.7-1; (08)AM022401.7. -->
SECTION 7. IC 8-1-8.7-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: 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
of s
ulfur or nitrogen based pollutants associated with
the combustion or use of coal; (as defined in IC 8-1-2-6.1(a));
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.
SOURCE: IC 8-1-8.7-3; (08)AM022401.8. -->
SECTION 8. IC 8-1-8.7-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 3. (a) Except as
provided in subsection (c), a public utility may not use clean coal
technology at a new or existing electric generating facility without first
applying for and obtaining from the commission a certificate that states
that public convenience and necessity will be served by the use of clean
coal technology.
(b) The commission shall issue a certificate of public convenience
and necessity under subsection (a) if the commission finds that a clean
coal technology project offers substantial potential of reducing
or
avoiding sulfur or nitrogen based pollutants airborne emissions (as
defined in IC 8-1-2-6.1(a)) in a more efficient manner than
conventional technologies in general use as of January 1, 1989. For
purposes of this chapter, a project that the United States Department of
Energy has selected for funding under its Innovative Clean Coal
Technology program and is finally approved for funding after
December 31, 1988, is not considered a conventional technology in
general use as of January 1, 1989. When determining whether to grant
a certificate under this section, the commission shall examine the
following factors:
(1) The costs for constructing, implementing, and using clean coal
technology compared to the costs for conventional emission
reduction facilities.
(2) Whether a clean coal technology project will also extend the
useful life of an existing electric generating facility and the value
of that extension.
(3) The potential reduction of
sulfur and nitrogen based pollutants
airborne emissions (as defined in IC 8-1-2-6.1(a)) achieved by
the proposed clean coal technology system.
(4) The reduction of
sulfur nitrogen based pollutants airborne
emissions (as defined in IC 8-1-2-6.1(a)) that can be achieved by
conventional pollution control equipment.
(5) Federal
sulfur and nitrogen based pollutant emission
standards.
(6) The likelihood of success of the proposed project.
(7) The cost and feasibility of the retirement of an existing electric
generating facility.
(8) The dispatching priority for the facility utilizing clean coal
technology, considering direct fuel costs, revenues and expenses
of the utility, and environmental factors associated with
byproducts resulting from the utilization of the clean coal
technology.
(9) Any other factors the commission considers relevant,
including whether the construction, implementation, and use of
clean coal technology is in the public's interest.
(c) A public utility is not required to obtain a certificate under this
chapter for a clean coal technology project that constitutes a research
and development project that may be expensed under IC 8-1-2-6.1.
SOURCE: IC 8-1-8.8-3; (08)AM022401.9. -->
SECTION 9. IC 8-1-8.8-3, AS AMENDED BY P.L.175-2007,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: 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 production or
generating facility and directly or indirectly reduces or avoids
airborne emissions of sulfur, mercury, or nitrogen oxides or other
regulated air emissions associated with the combustion or use of
coal; (as defined in IC 8-1-2-6.1(a)); 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 or loan guaranty under an Innovative Clean
Coal Technology or loan guaranty program under the Energy
Policy Act of 2005, or any successor program, and is finally
approved for such funding or loan guaranty on or after the date
of enactment of the federal Clean Air Act Amendments of
1990 (P.L.101-549).
SOURCE: IC 8-1-37; (08)AM022401.10. -->
SECTION 10. IC 8-1-37 IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2008]:
Chapter 37. Renewable Energy Development
Sec. 1. The general assembly finds that it is in the public interest
for the state to promote the development and use of renewable
energy resources and advanced energy resources in Indiana in
order to:
(1) diversify the resources used to reliably meet the energy
needs of Indiana citizens;
(2) encourage private investment in renewable energy
resources and advanced energy resources in Indiana;
(3) reduce greenhouse gas and other air emissions; and
(4) promote other environmentally sound and sustainable
practices by electricity suppliers.
Sec. 2. (a) As used in this chapter, "advanced energy resources"
includes the following sources and programs for the production or
conservation of electricity:
(1) Combined heat and power systems that:
(A) use natural gas or renewable energy resources as
feedstock; and
(B) achieve at least seventy percent (70%) overall
efficiency.
(2) Demand side management or energy efficiency programs
that:
(A) reduce electricity consumption; or
(B) implement load management or demand response
technologies that shift customers' electric load from
periods of higher demand to periods of lower demand.
(3) Waste coal.
(4) Clean coal and energy projects (as defined in IC 8-1-8.8-2).
(5) Other non carbon dioxide emitting or low carbon dioxide
emitting electricity generating technologies, including
integrated gasification combined cycle generation with the
capability for carbon capture and sequestration through:
(A) storage; or
(B) enhanced oil recovery.
(b) The term includes transmission and distribution system
extensions or upgrades necessary to accommodate the use of
advanced energy resources.
(c) The term does not include energy from the incineration,
burning, or heating of the following:
(1) Tires.
(2) Garbage.
(3) General household, institutional, or commercial waste.
(4) Industrial lunchroom or office waste.
(5) Construction or demolition debris.
(6) Feedstock that is municipal, food, plant, industrial, or
animal waste from outside Indiana.
Sec. 3. As used in this chapter, "carbon offset" means the act of
reducing or avoiding greenhouse gas emissions in one place
through means:
(1) other than the production of electricity; and
(2) not related to the use of electricity;
in order to offset greenhouse gas emissions occurring at another
place.
Sec. 4. As used in this chapter, "carbon offset equivalents"
means the number of carbon offsets necessary to offset one (1)
megawatt hour of electricity produced by a traditional coal fired
power plant.
Sec. 5. (a) As used in this chapter, "electricity supplier" means
a public utility (as defined in IC 8-1-2-1) that furnishes retail
electric service to the public.
(b) The term does not include a utility that is:
(1) a municipally owned utility (as defined in IC 8-1-2-1(h));
(2) a corporation organized under IC 8-1-13; or
(3) a corporation organized under IC 23-17 that is an electric
cooperative and that has at least one (1) member that is a
corporation organized under IC 8-1-13.
Sec. 6. As used in this chapter, "fund" refers to the advanced
and renewable energy resources fund established by section 11 of
this chapter.
Sec. 7. As used in this chapter, "renewable energy credit", or
"REC", means one (1) megawatt hour of electricity that:
(1) is:
(A) generated from a renewable energy resource described
in section 8(a) of this chapter; or
(B) conserved through the use of an advanced energy
resource described in section 2(a)(2) of this chapter;
(2) is quantifiable; and
(3) is possessed by not more than one (1) entity at a time.
Sec. 8. (a) As used in this chapter, "renewable energy resources"
means alternative sources of renewable energy, including the
following:
(1) Wind energy.
(2) Solar energy.
(3) Photovoltaic cells and panels.
(4) Dedicated crops grown for energy production and used as:
(A) the sole fuel; or
(B) part of a co-firing application;
in an energy generating facility.
(5) Organic waste biomass, including any of the following
organic matter that is available on a renewable basis:
(A) Agricultural crops.
(B) Agricultural wastes and residues.
(C) Wood and wood wastes (other than treated or painted
lumber) including the following:
(i) Wood residues.
(ii) Forest thinnings.
(iii) Mill residue wood.
(iv) Waste from construction and demolition.
(D) Animal wastes.
(E) Aquatic plants.
(6) Hydropower from existing dams.
(7) Fuel cells.
(8) Energy from waste to energy facilities that produce steam
that is not used for the production of electricity.
(9) Methane systems that convert waste products, including
animal, food, and plant waste, into electricity.
(10) Methane recovered from landfills or underground coal
mines.
(11) Ocean current or wave energy.
(12) Any other sources that:
(A) are included in any applicable federal renewable
resource portfolio standard; or
(B) become available through future developments in
renewable energy technologies.
(b) The term includes transmission and distribution system
extensions or upgrades necessary to accommodate the use of
renewable energy resources.
(c) Except for a renewable energy resource described in
subsection (a)(8), the term does not include energy from the
incineration, burning, or heating of the following:
(1) Tires.
(2) Garbage.
(3) General household, institutional, or commercial waste.
(4) Industrial lunchroom or office waste.
(5) Feedstock that is municipal, food, plant, industrial, or
animal waste from outside Indiana.
Sec. 9. (a) Subject to subsection (b), each electricity supplier
shall supply electricity that is generated from, or otherwise
qualifies as, a renewable energy resource or an advanced energy
resource to Indiana retail customers as a percentage of the total
electricity supplied by the electricity supplier to Indiana retail
customers during a calendar year as follows:
(1) Not later than the calendar year ending December 31,
2012, at least two percent (2%) of the electricity supplier's
Indiana retail sales for the calendar year ending December 31,
2011.
(2) Not later than the calendar year ending December 31,
2016, at least four percent (4%) of the electricity supplier's
Indiana retail sales for the calendar year ending December 31,
2011.
(3) Not later than the calendar year ending December 31,
2020, and for all years thereafter, at least six percent (6%) of
the electricity supplier's Indiana retail sales for the
immediately preceding calendar year.
For purposes of this subsection, electricity is measured in
megawatt hours.
(b) An electricity supplier may not use an advanced energy
resource to supply more than fifty percent (50%) of the electricity
that the electricity supplier is required to supply under subsection
(a).
(c) An electricity supplier may own or purchase RECs or carbon
offset equivalents to comply with subsection (a).
(d) If an electricity supplier exceeds the applicable percentage
under subsection (a) in a compliance year, the electricity supplier
may carry forward the amount of electricity that:
(1) exceeds the applicable percentage under subsection (a);
and
(2) is generated from, or otherwise qualifies as, a renewable
energy resource or an advanced energy resource;
to comply with the requirement under subsection (a) for either or
both of the two (2) immediately succeeding compliance years.
(e) 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) twenty dollars ($20).
(f) An electricity supplier is not required to comply with
subsection (a) if the commission determines that the electricity
supplier has demonstrated that:
(1) advanced energy resources, renewable energy resources,
RECs, or carbon offset equivalents are not available to the
electricity supplier in sufficient quantities to allow the
electricity supplier to comply with subsection (a); or
(2) the cost of compliance with subsection (a) using the
advanced energy resources, renewable energy resources,
RECs, or carbon offset equivalents available to the electricity
supplier would result in an unreasonable increase in the basic
rates and charges for electricity supplied to retail customers
of the electricity supplier.
The commission shall conduct a public hearing to make a
determination under this subsection.
(g) The commission shall allow an electricity supplier to recover,
through a periodic rate adjustment mechanism, reasonable and
necessary costs incurred in:
(1) constructing, operating, or maintaining facilities to comply
with this chapter;
(2) generating electricity from, or purchasing electricity
generated from, an advanced energy resource or renewable
energy resource;
(3) purchasing RECs or carbon offset equivalents; or
(4) complying with any applicable federal renewable resource
portfolio requirements.
Sec. 10. (a) The commission shall encourage electricity suppliers
to meet or exceed the requirements set forth in section 9(a) of this
chapter by:
(1) providing additional financial incentives for electricity
suppliers to use advanced energy resources and renewable
energy resources in their resource portfolios; and
(2) authorizing electricity suppliers to use alternative
regulatory plans under IC 8-1-2.5.
(b) The financial incentives authorized by subsection (a) may
include one (1) or more of the following:
(1) Enhanced returns on equity.
(2) Capitalization of and returns for program expenses.
(3) Incentives based on the sharing of achieved program
savings.
(4) Incentives based on avoided costs resulting from achieved
program results.
(c) The commission shall also encourage the research,
development, and implementation of additional environmentally
sound and sustainable projects and practices by electricity
suppliers, including projects and practices that exceed applicable
federal and state environmental requirements, by means of:
(1) timely cost recovery through periodic rate adjustment
mechanisms;
(2) the authorization to use alternative regulatory plans under
IC 8-1-2.5; and
(3) other financial incentives the commission considers
appropriate;
if the commission determines that the projects or practices
proposed by an electricity supplier are reasonable.
Sec. 11. (a) The advanced and renewable energy resources fund
is established to:
(1) support the development, construction, and use of
advanced energy resources and renewable energy resources,
including small scale advanced energy resources and
renewable energy resources, in rural and urban Indiana; and
(2) reimburse the Indiana economic development corporation
and the commission for expenses incurred under section 12 of
this chapter.
(b) The fund consists of the following:
(1) Money deposited under section 9(e) 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. 12. (a) This section applies if there is sufficient money in the
fund established by section 11 of this chapter 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. 13. Beginning in 2013, not later than April 30 of each year,
an electricity supplier shall file with the commission a report of the
electricity supplier's compliance with this chapter for the
preceding calendar year, along with the estimated impact on the
electricity supplier's revenues from residential, commercial, and
industrial customers as a result of the electricity supplier's
compliance with this chapter.
Sec. 14. The commission shall adopt rules under IC 4-22-2 to
implement this chapter.
(Reference is to SB 224 as introduced.)
and when so amended that said bill do pass .
Committee Vote: Yeas 6, Nays 3.
____________________________________
Senator Hershman, Chairperson
AM 022401/DI 101 2008