SB 300-1_ Filed 04/07/2009, 11:46
Adopted 4/7/2009
Text Box
Adopted Rejected
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COMMITTEE REPORT
YES:
7
NO:
5
MR. SPEAKER:
Your Committee on Commerce, Energy, Technology and Utilities , to which was
referred Senate Bill 300 , has had the same under consideration and begs leave to report
the same back to the House with the recommendation that said bill be amended as follows:
SOURCE: Page 1, line 1; (09)CR030001.1. -->
Page 1, delete lines 1 through 17, begin a new paragraph and insert:
SOURCE: IC 8-1-35; (09)CR030001.1. -->
"SECTION 1. IC 8-1-35 IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
Chapter 35. Renewable Energy Development
Sec. 1. 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. 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 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. As used in this chapter, "energy efficiency measures"
means:
(1) the use of a device, method, or project implemented by an
electricity consumer that reduces electrical energy usage; or
(2) improvements that:
(A) increase the efficiency of transmission and distribution
systems used to transmit electricity from the source to the
end user; and
(B) reduce the loss of electricity during transmission.
Sec. 3. As used in this chapter, "renewable energy credit", or
"REC", means a tradable commodity equivalent to one (1)
megawatt hour of electricity generated by renewable energy
resources in an Indiana facility.
Sec. 4. (a) As used in this chapter, "renewable energy resources"
includes the following sources for the production of electricity:
(1) Solar.
(2) Wind.
(3) Microhydroelectrical facilities.
(4) Microturbines using renewable fuels, as determined by the
commission.
(5) Fuel cells using renewable fuels, as determined by the
commission.
(6) Dedicated crops grown for energy production.
(7) Methane from anaerobic digestion and municipal solid
waste.
(8) Agricultural crop waste.
(9) Energy efficiency measures installed after January 1,
2009.
(10) Electricity generated through net metering.
(b) Except as provided in subsection (a)(7) and (a)(8), the term
does not include energy from the incineration, burning, or heating
of garbage or waste.
Sec. 5. 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, 2015, at least five percent
(5%).
(2) Not later than December 31, 2020, at least ten percent
(10%).
(3) Not later than December 31, 2025, at least fifteen percent
(15%).
For purposes of this section, electricity is measured in megawatt
hours.
Sec. 6. (a) An electricity supplier may use a renewable energy
resource described in section 4(a)(9) of this chapter to generate not
more than thirty percent (30%) of the electricity that the electricity
supplier is required to supply under section 5 of this chapter.
(b) An electricity supplier may own, generate, purchase, or
trade RECs to comply with section 5 of this chapter.
(c) The commission shall determine and impose penalties for an
electricity supplier that fails to comply with section 5 of this
chapter.
Sec. 7. (a) An electricity supplier is not required to comply with
section 5 of this chapter 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.
(b) The commission shall conduct a public hearing before
making a determination under subsection (a).
(c) The commission shall review a determination made under
subsection (a) not more than six (6) months after the date on which
the determination is made. Upon its review, the commission may:
(1) allow its determination to remain in effect; or
(2) require the electricity supplier to comply with section 5 of
this chapter.
If the commission allows its determination to remain in effect, it
shall review the determination not more than six (6) months after
the date of the most recent review.
Sec. 8. (a) For purposes of calculating RECs to determine an
electricity supplier's compliance with section 5 of this chapter, the
following apply:
(1) One (1) megawatt hour of electricity generated by
renewable energy resources in an Indiana facility equals one
(1) REC.
(2) One (1) megawatt hour of electricity generated by a
renewable energy resource described in section 4(a)(1),
4(a)(7), or 4(a)(10) of this chapter that originates in Indiana
equals two (2) RECs.
(3) One (1) megawatt hour of electricity generated by a
renewable energy resource described in section 4(a)(6) or
4(a)(8) of this chapter that originates in Indiana equals one
and two-tenths (1.2) RECs.
(b) An REC calculated under this section shall be increased as
follows:
(1) An REC that is:
(A) generated and made available during periods of peak
demand; or
(B) stored and made available during periods of peak
demand;
is increased by two-tenths (0.2) REC.
(2) An REC that is:
(A) generated during periods of nonpeak demand; and
(B) stored and made available during periods of peak
demand;
is increased by two-tenths (0.2) REC.
(3) An REC that is generated using equipment made in
Indiana, as determined by the commission, is increased by
one-tenth (0.1) REC.
(4) An REC that is generated in a facility constructed by
Indiana workers, as determined by the commission, is
increased by one-tenth (0.1) REC.
Sec. 9. Not later than March 1, 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 year.
Sec. 10. (a) The commission shall allow an electricity supplier to
recover the following costs under the schedule set forth in
subsection (b):
(1) Reasonable and necessary costs incurred in:
(A) constructing, operating, or maintaining facilities to
comply with this chapter; or
(B) generating electricity from, or purchasing electricity
generated from, a renewable energy resource;
by a periodic rate adjustment mechanism.
(2) Up to one million dollars ($1,000,000) each year for
expenditures related to alternative or renewable energy
research that is conducted in Indiana.
(b) The commission shall limit the total increase per customer
account per billing cycle for costs recovered under subsection (a)
to one percent (1%) of a customer's overall electric bill.
Sec. 11. The commission shall adopt rules under IC 4-22-2 to
implement this chapter, including rules to establish a program for
the certification and trading of RECs to comply with section 5 of
this chapter.
SOURCE: ; (09)CR030001.2. -->
SECTION 2. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "commission" refers to the Indiana utility regulatory
commission created by IC 8-1-1-2.
(b) Subject to subsections (c) and (d) and not later than July 1,
2009, the commission shall adopt rules to amend the net metering
and interconnection rules adopted by the commission and codified
at 170 IAC 4-4.2. The commission shall adopt the rules required by
this subsection in the same manner as emergency rules are adopted
under IC 4-22-2-37.1. The rules adopted by the commission under
this subsection must do the following:
(1) Require an electric utility to offer net metering to at least
the following customer classes:
(A) Residential customers.
(B) Commercial customers.
(C) Industrial customers.
(D) Agricultural customers.
(E) Local governments.
(F) The state.
(G) Kindergarten through grade 12 schools.
(H) Postsecondary educational institutions (as described in
IC 6-3-3-5).
(2) Allow a net metering customer to interconnect a
generating facility with a nameplate capacity of one (1)
megawatt or less to a distribution facility of an electric utility.
(3) Allow a net metering customer to interconnect a facility
that generates electricity through any of the following
technologies:
(A) Solar.
(B) Wind.
(C) Microhydroelectrical facilities.
(D) Microturbines using renewable fuels.
(E) Fuel cells using renewable fuels.
(F) Biogas, including anaerobic digestion.
(G) Methane gas from landfills.
(c) Rules adopted under subsection (b) expire on:
(1) the date the commission adopts rules under IC 4-22-2-24
through IC 4-22-2-36; or
(2) January 1, 2011;
whichever is earlier.".
Delete page 2.
SOURCE: Page 3, line 1; (09)CR030001.3. -->
Page 3, delete lines 1 through 26, begin a new paragraph and insert:
" (d) Not later than June 1, 2009, the commission shall evaluate
the net metering and interconnection rules adopted by the
commission and codified at 170 IAC 4-4.2 for compliance with the
requirements set forth in subsection (b). A rule that:".
Page 3, line 27, after "(1)" insert " is".
Page 3, line 29, delete "contrary to this chapter;" and insert " does
not meet the requirements set forth in subsection (b);".
Page 3, line 30, after "void." insert " Not later than June 15, 2009,
the commission shall notify the publisher of the Indiana
Administrative Code and Indiana Register of any rules codified at
170 IAC 4-4.2 that are void under this subsection. The publisher
shall remove the rules that are void under this subsection from the
Indiana Administrative Code.
(e) Not later than November 1, 2009, the commission shall
report to the regulatory flexibility committee established by
IC 8-1-2.6-4 on the commission's progress under subsection (c)(1)
in finally adopting, under IC 4-22-2-24 through IC 4-22-2-36, the
emergency rules initially adopted by the commission under
subsection (b).
(f) For purposes of subsection (b)(1), "electric utility" does not
include the following:
(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.
(g) This SECTION expires January 1, 2011.
SOURCE: ; (09)CR030001.3. -->
SECTION 3. [EFFECTIVE UPON PASSAGE]
(a) Not later than
April 1, 2014, 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
include:
(1) an analysis of; and
(2) any legislative proposals the commission believes would
increase;
the effectiveness of and industry compliance with IC 8-1-35, as
added by this act.
(b) This SECTION expires April 2, 2014.
SOURCE: ; (09)CR030001.4. -->
SECTION 4.
An emergency is declared for this act.".
Renumber all SECTIONS consecutively.
(Reference is to SB 300 as printed February 10, 2009.)
and when so amended that said bill do pass.
__________________________________
CR030001/DI 75 2009