Citations Affected: IC 4-4; IC 5-22-5-8.5; IC 8-1.
Synopsis: Energy matters. PROPOSED CONFERENCE COMMITTEE REPORT FOR EHB 1554. Allows the Indiana office of energy development (IOED) to award grants to certain businesses and local government units that make qualified investments after June 30, 2009, to install and place into service in Indiana fueling stations that dispense alternative fuel (defined as liquefied petroleum gas, a compressed natural gas product, or a combination of liquefied petroleum gas and a compressed natural gas product). Provides that not more than one grant may be awarded for a single location. Provides that the amount of a grant awarded for a location may not exceed the lesser of: (1) the amount of the grant recipient's qualified investment for the location; or (2) $20,000. Provides that the amount of a grant awarded for a location may be less than the amount of the grant recipient's qualified investment for the location. Provides that the total amount of grants awarded for all state fiscal years may not exceed $1,000,000. Establishes the alternative fuel fueling station grant fund to award the grants, and provides that the IOED shall administer the fund. Allows the IOED to award grants to certain local government units that make qualified purchases after June 30, 2009, of: (1) one or more alternative fuel vehicles; or (2) one or more alternative fuel conversion kits. Provides that not more than one grant may be awarded to any one unit. Provides that the amount of a grant that may be awarded to a unit is the sum of: (1) $2,000 multiplied by the number of alternative fuel vehicles purchased; plus (2) for each alternative fuel conversion kit purchased, an amount equal to the lesser of $2,000 or the actual cost of the conversion kit. Provides that the IOED may limit the number of alternative fuel vehicles or alternative fuel conversion kits for which a unit may receive a grant. Provides that the total amount of grants awarded for all units may not exceed $1,000,000. Establishes the local unit alternative fuel vehicle grant fund to award the grants, and requires the IOED to administer the fund. Provides that if a state entity (which excludes a state educational institution) purchases or leases a vehicle after December 31, 2009, it must purchase or lease a clean energy vehicle unless the department of administration determines that the purchase or lease of a clean energy vehicle: (1) is inappropriate because of the purposes for which the vehicle will be used; or (2) would cost at least 10% more than the purchase or lease of a vehicle that is not a clean energy vehicle and is designed and equipped comparably to the clean energy vehicle. Specifies that these requirements do not apply to the: (1) purchase or lease of vehicles by or for the state police department; and (2) short term or temporary lease of vehicles. Requires the department of administration to adopt rules or guidelines to provide a preference for the purchase or lease by
state entities of clean energy vehicles manufactured wholly or partially in Indiana or containing
parts manufactured in Indiana. Provides that before August 1 of 2010 and each year thereafter,
each state entity shall submit to the department of administration information regarding the use
of clean energy vehicles and alternative fuels by the state entity. Requires the department of
administration to submit a report to the general assembly and to the governor before September
1 of 2010 and each year thereafter that lists the information for each state entity and for all state
agencies in the aggregate. Establishes the office of alternative energy incentives (office) within
the IOED to administer a program to provide incentives for rural electric membership
corporations (corporations) and their cooperatively owned power suppliers to develop alternative
energy projects. Provides that: (1) the director of the IOED; or (2) the designee of the director
of the IOED; shall serve as the office's director. Establishes the alternative energy incentive fund
(incentive fund) to provide funds to corporations for use in developing alternative energy
projects. Requires the office to administer the incentive fund and to establish an account within
the incentive fund for each corporation. Provides that not later than August 1 of each year,
beginning in 2009, a corporation may apply to the office to have access to a certain percentage
of the total funds in the corporation's account as of July 1 of the year, based on the percentage
of the corporation's total sales from the provision of retail energy service during the preceding
calendar year that was attributable to alternative energy projects. Allows two or more
corporations that are members of the same cooperatively owned power supplier to develop
alternative energy projects jointly. Sets forth limitations on how money drawn from a
corporation's account may be used. Gives the office authority to adopt rules to implement the
program. Provides that any money that may become available to a corporation in connection with
federal economic stimulus programs may not become part of the incentive fund or an account
within the incentive fund without the consent of the corporation. Provides that a corporation shall
have access to federal economic stimulus funds: (1) for the same uses; and (2) in accordance
with the same processes; as any other energy utility may have access to or use federal economic
stimulus money. Amends the definition of "renewable energy resources" for purposes of utility
generation and clean coal technology statutes to: (1) provide that energy from waste to energy
facilities, to fall within the definition, is not limited to facilities producing steam not used for the
production of electricity; and (2) include energy storage systems. Makes appropriations. (This
conference committee report adds the provisions concerning clean energy vehicles and
alternative energy projects and the amendment of the definition of "renewable energy
resources".)
Effective: Upon passage; July 1, 2009.
MADAM PRESIDENT:
Your Conference Committee appointed to confer with a like committee from the House
upon Engrossed Senate Amendments to Engrossed House Bill No. 1554 respectfully reports
that said two committees have conferred and agreed as follows to wit:
that the House recede from its dissent from all Senate amendments and that
the House now concur in all Senate amendments to the bill and that the bill
be further amended as follows:
Delete everything after the enacting clause and insert the following:
chapter for a single location.
Sec. 11. (a) Subject to subsection (b) and section 13 of this
chapter, the office shall determine the amount of each grant
awarded under this chapter.
(b) The amount of a grant awarded under this chapter for a
location may not exceed the lesser of the following:
(1) The amount of the grant recipient's qualified investment
for the location.
(2) Twenty thousand dollars ($20,000).
(c) The amount of a grant awarded under this chapter for a
location may be less than the amount of the grant recipient's
qualified investment for the location.
Sec. 12. The office shall do the following:
(1) Adopt guidelines to determine standards for awarding
grants under this chapter, including standards for
determining whether a fueling station complies with
applicable governmental or other nationally recognized
standards that apply to the storage and handling of
alternative fuel.
(2) Prepare and supervise the issuance of public information
concerning the grant program established under this chapter.
(3) Prescribe the form for and regulate the submission of
applications for grants under this chapter.
(4) Determine an applicant's eligibility for a grant under this
chapter.
Sec. 13. The total amount of grants awarded under this chapter
for all state fiscal years may not exceed one million dollars
($1,000,000).
Sec. 14. (a) The alternative fuel fueling station grant fund is
established to provide grants under this chapter. The fund shall be
administered by the office.
(b) The fund consists of:
(1) money appropriated to the fund by the general assembly;
(2) money received from state or federal grants or programs
for alternative fuels projects; and
(3) donations, gifts, and money received from any other
source, including transfers from other funds or accounts.
(c) 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 funds may be invested.
(d) Money in the fund at the end of a state fiscal year does not
revert to the state general fund but remains in the fund to be used
exclusively for purposes of this chapter.
(e) Money in the fund is continuously appropriated for the
purposes of this chapter.
Sec. 15. A grant awarded under this chapter is not subject to
taxation under IC 6-3-1 through IC 6-3-7.
Sec. 16. A grant awarded under this chapter does not reduce the
basis of the qualified property for purposes of determining any
gain or loss on the property when the grant recipient disposes of
the property.
preceding state fiscal year:
(1) The amount of alternative fuels purchased by the state
entity.
(2) The amount of conventional fuels purchased by the state
entity.
(3) The average price per gallon paid by the state entity for
each type of fuel purchased by the state entity.
(4) The total number of vehicles purchased or leased by the
state agency that were clean energy vehicles and the total
number of vehicles purchased or leased by the state agency
that were not clean energy vehicles.
(5) Any other information required by the Indiana
department of administration.
(h) Before September 1 of 2010 and each year thereafter, the
Indiana department of administration shall submit to the general
assembly in an electronic format under IC 5-14-6 and to the
governor a report that lists the information required under
subsection (g) for each state entity and for all state agencies in the
aggregate.
supplier" means:
(1) an energy utility (as defined in IC 8-1-2.5-2) that is a
general district corporation organized under IC 8-1-13; or
(2) an energy utility that is organized under IC 23-17 and
whose membership includes one (1) or more corporations
organized under IC 8-1-13.
Sec. 4. As used in this chapter, "corporation" means a
corporation organized under IC 8-1-13 as a local district
corporation (as defined in IC 8-1-13-23(b)).
Sec. 5. As used in this chapter, "director" refers to the director
of the office of alternative energy incentives serving under section
9(b) of this chapter.
Sec. 6. As used in this chapter, "fund" refers to the alternative
energy incentive fund established by section 10 of this chapter.
Sec. 7. As used in this chapter, "office" refers to the office of
alternative energy incentives established by section 9 of this
chapter.
Sec. 8. As used in this chapter, "retail energy service" has the
meaning set forth in IC 8-1-2.5-3.
Sec. 9. (a) The office of alternative energy incentives is
established within the Indiana office of energy development.
(b) The:
(1) director of the Indiana office of energy development; or
(2) designee of the Indiana office of energy development, who
must be qualified by knowledge of or experience in the electric
utility industry;
shall serve as the director of the office.
(c) The director:
(1) serves at the pleasure of and is responsible to the director
of the Indiana office of energy development, if the director is
a designee of the director of the Indiana office of energy
development;
(2) may receive compensation in an amount determined by the
director of the Indiana office of energy development, subject
to the approval of the budget agency, if the director is a
designee of the director of the Indiana office of energy
development;
(3) serves as the chief executive and administrative officer of
the office; and
(4) may, to the extent appropriate, delegate the director's
authority under this chapter, subject to the approval of:
(A) the director of the Indiana office of energy
development, if the director is a designee of the director of
the Indiana office of energy development; and
(B) the budget agency.
(d) The director of the Indiana office of energy development
may:
(1) establish; and
(2) appoint members to;
an advisory board to advise the office in the administration of this
chapter.
Sec. 10. (a) The alternative energy incentive fund is established
for the purpose of providing funds to corporations for use in the
development of alternative energy projects. The fund shall be
administered by the office.
(b) The fund consists of:
(1) money appropriated to the fund by the general assembly;
(2) money received from state or federal grants or programs
for alternative energy projects; and
(3) donations, gifts, and money received from any other
source, including transfers from other funds or accounts.
(c) Money in the fund is continuously appropriated for the
purposes of this section.
(d) Money in the fund may be spent only in accordance with this
chapter and to carry out the purposes of this chapter.
(e) The expenses of administering the fund shall be paid from
money in the fund.
(f) Notwithstanding IC 5-13, 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 money is invested by the public
employees retirement fund under IC 5-10.3-5. The treasurer of
state may contract with investment management professionals,
investment advisers, and legal counsel to assist in the investment of
the fund and may pay the expenses incurred under those contracts
from the fund. Interest that accrues from these investments shall
be deposited in the fund.
(g) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Sec. 11. The office shall establish an account within the fund for
each corporation.
Sec. 12. (a) Beginning in 2009, not later than August 1 of each
year, a corporation may apply to the office to have access to a
percentage of the total funds that are, as of July 1 of the year, in
the account established for the corporation under section 11 of this
chapter, as follows:
(1) A corporation may have access to not more than forty
percent (40%) of the total funds in the corporation's account
if the corporation certifies to the office that alternative energy
projects accounted for five percent (5%) or less of the
corporation's total sales from the provision of retail energy
service during the preceding calendar year.
(2) A corporation may have access to not more than seventy
percent (70%) of the total funds in the corporation's account
if the corporation certifies to the office that alternative energy
projects accounted for:
(A) more than five percent (5%); and
(B) not more than ten percent (10%);
of the corporation's total sales from the provision of retail
energy service during the preceding calendar year.
(3) A corporation may have access to one hundred percent
(100%) of the total funds in the corporation's account if the
corporation certifies to the office that:
(A) alternative energy projects accounted for at least ten
percent (10%) of the corporation's total sales from the
provision of retail energy service during the preceding
calendar year;
(B) at least fifty percent (50%) of the sales attributed to
alternative energy projects under clause (A) were made to
Indiana customers; and
(C) at least fifty percent (50%) of the alternative energy
projects that:
(i) under clause (A) accounted for at least ten percent
(10%) of the corporation's total sales from the provision
of retail energy service during the preceding calendar
year; and
(ii) are energy production or generating facilities;
are located in Indiana.
(b) A corporation that seeks access to a percentage of the total
funds in the corporation's account under subsection (a) shall
submit:
(1) an application to the office on a form prescribed by the
office; and
(2) any documentation required by the office to support the
corporation's certification of the percentage of its total sales
from the provision of retail energy service that is attributable
to alternative energy projects during the preceding calendar
year.
An application submitted under this section must be signed under
penalty of perjury by an officer of the corporation or another
person authorized to bind the corporation.
(c) The application form prescribed by the office and described
in subsection (b)(1) must require the applicant to identify:
(1) each planned or existing alternative energy project in
which the applicant plans to invest money drawn from the
applicant's account under this section;
(2) the amount of money the applicant plans to invest in each
alternative energy project identified under subdivision (1);
and
(3) any other corporations, cooperatively owned power
suppliers, or other persons that have invested or will invest
money in each alternative energy project identified under
subdivision (1), to the extent known by the applicant.
(d) Upon receiving an application and any supporting
documents from a corporation under subsection (b), the office shall
review the application and documents for accuracy and
completeness. If the office determines that the application and
documents are accurate, complete, and properly verified, the office
shall notify the corporation as soon as practicable, but in any case
not later than thirty (30) days after the date of the corporation's
application, that the corporation may have access to the percentage
of funds for which the corporation qualifies under subsection (a).
If the office determines that the application and documents are
inaccurate or incomplete, or are not properly verified, the office
shall immediately notify the corporation of any additional
information or verifications required. If there is disagreement
between a corporation and the office about:
(1) the accuracy or completeness of an application or any
documents submitted in conjunction with an application; or
(2) the determination of, or the method used to determine, the
percentage of a corporation's total sales from the provision of
retail energy service that is attributable to alternative energy
projects;
the corporation may request a hearing or any other procedure for
resolving disputes established by the office in rules adopted under
section 15 of this chapter.
(e) A corporation may receive the percentage of funds for which
it qualifies under subsection (a) for a particular year in one (1) or
more installments. However, any money received by a corporation
under this section may be used only for one (1) or more alternative
energy projects in accordance with section 14 of this chapter.
Sec. 13. (a) Two (2) or more corporations that are members of
the same cooperatively owned power supplier may:
(1) develop alternative energy projects jointly; and
(2) share money drawn from their respective accounts in the
fund with the corporations' cooperatively owned power
supplier, as long as the cooperatively owned power supplier
uses the money for one (1) or more alternative energy projects
in accordance with section 14 of this chapter.
(b) For purposes of determining the percentage of a
corporation's total sales from the provision of retail energy service
that is attributable to alternative energy projects under section 12
of this chapter, any joint project described in subsection (a)(1) shall
be allocated among the participating corporations according to
each corporation's respective investment in the joint project.
Sec. 14. (a) A corporation's board of directors is entitled to
determine how money drawn from the corporation's account
under section 12 of this chapter is used, subject to the following:
(1) Money drawn from the corporation's account under
section 12 of this chapter must be used for an alternative
energy project that is approved by:
(A) the office; and
(B) the corporation's board.
(2) If the money will be used to develop or invest in an
alternative energy project that involves:
(A) the construction of a new energy production or
generating facility; or
(B) the expansion or extension of an existing energy
production or generating facility;
the facility to be constructed, expanded, or extended as part
of the alternative energy project must be located in Indiana.
(3) Money drawn from the corporation's account under
section 12 of this chapter may not be used to purchase
electricity produced from an alternative energy project,
unless the alternative energy project:
____________________________ ____________________________
Representative Battles Senator Gard
Chairperson
____________________________ ____________________________
Representative Koch Senator Breaux
House Conferees Senate Conferees