SB 313-1_ Filed 02/22/2010, 12:51
Your Committee on Commerce, Energy, Technology and Utilities , to which was
referred Senate Bill 313 , 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:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities and to make an appropriation.
SOURCE: Page 1, line 1; (10)CR031303.1. -->
Page 1, delete lines 1 through 17, begin a new paragraph and insert:
SOURCE: IC 8-1-2-36.7; (10)CR031303.1. -->
"SECTION 1. IC 8-1-2-36.7 IS ADDED TO THE INDIANA CODE
AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2010]: Sec. 36.7. The commission's annual report to the
regulatory flexibility committee under IC 8-1-2.6-4 must include
the following information relating to net metering:
(1) For each electric utility, the number of net metering
customers by customer class and nameplate capacity.
(2) A description of each safety incident that occurred during
the year covered by the report, including the outcome of the
incident and any remedial measures taken in response to the
(3) A description of each grid reliability incident that
occurred during the year covered by the report, including the
outcome of the incident and any remedial measures taken in
response to the incident.
(4) An estimate of the cross subsidy impact of net metering to
other ratepayers of each electric utility.
SOURCE: IC 8-1-35; (10)CR031303.2. -->
SECTION 2. IC 8-1-35 IS ADDED TO THE INDIANA CODE AS
CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
Chapter 35. Renewable Electricity Standard
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 any of 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.
(3) A municipally owned utility (as defined in IC 8-1-2-1(h)).
Sec. 2. As used in this chapter, "fund" refers to the renewable
energy resources fund established by section 9 of this chapter.
Sec. 3. As used in this chapter, "regional transmission
organization" refers to a regional transmission organization
approved by the Federal Energy Regulatory Commission that
serves a region that includes all or part of Indiana.
Sec. 4. 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
Sec. 5. As used in this chapter, "renewable energy resources"
refers to the production of electricity by wind power.
Sec. 6. Each electricity supplier shall supply electricity
generated 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, 2012, at least two percent
(2) Not later than December 31, 2013, at least three percent
(3) Not later than December 31, 2014, at least four percent
For purposes of this section, electricity is measured in megawatt
Sec. 7. (a) An electricity supplier may own, generate, purchase,
or trade RECs to comply with section 6 of this chapter.
(b) An electricity supplier is responsible for conducting
sufficient advance planning to acquire its allotment of RECs.
(c) An electricity supplier that is required, and fails, to comply
with section 6 of this chapter shall deposit in the fund an amount
(1) the number of megawatt hours of electricity generated by
renewable energy resources that the electricity supplier was
required to but failed to supply under section 6 of this
chapter; multiplied by
(2) fifty dollars ($50).
Sec. 8. For purposes of calculating RECs to determine an
electricity supplier's compliance with section 6 of this chapter, the
(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 in the territory of a regional
transmission organization and imported into Indiana equals
one-half (0.5) REC.
Sec. 9. (a) The renewable energy resources fund is established
to provide funding for the following:
(1) Renewable energy technology research at state supported
colleges and universities.
(2) Grants or other financial incentives for renewable energy
(b) The fund consists of the following:
(1) Money deposited under section 7(c) 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 but may not exceed ten percent (10%) of the
balance 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.
(g) Money in the fund is continuously appropriated for purposes
of the fund.
Sec. 10. Not later than March 1, 2013, and each year thereafter,
an electricity supplier shall file with the commission a report of the
electricity supplier's compliance with this chapter for the
preceding calendar year.
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 6 of
Sec. 12. (a) Not later than April 1, 2015, the 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 this chapter.
(b) This section expires January 1, 2016.
SOURCE: ; (10)CR031303.3. -->
SECTION 3. [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) through (e) and not later than July
1, 2010, 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 and 170 IAC 4-4.3. 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
(1) Require an electric utility to offer net metering to all
(2) Allow a net metering customer to interconnect to an
electric utility's distribution facility a generating system that
is sized to meet all or part of a customer's electric load.
(3) Allow a net metering customer to interconnect a facility
that generates electricity through any of the following
(C) Microhydroelectric facilities.
(D) Hydroelectric facilities at dams existing before
January 1, 2010.
(E) Combustion technology using renewable fuels or
(F) Fuel cells using renewable fuels.
(G) Biogas, including anaerobic digestion and algae
(H) Methane from landfills or other waste products.
(I) Combined heat and power systems that achieve at least
seventy percent (70%) overall efficiency.
(4) Allow for customer meter aggregation.
(c) A rule adopted by the commission under subsection (b) may
not make the net metering and interconnection rules adopted by
the commission and codified at 170 IAC 4-4.2 and 170 IAC 4-4.3
apply to any of the following:
(1) A cooperatively owned power supplier (as defined in
(2) A municipally owned utility (as defined in IC 8-1-2-1(h)).
(d) Rules adopted under subsection (b) expire on the date the
rules are adopted by the commission under IC 4-22-2-24 through
(e) Not later than June 1, 2010, the commission shall evaluate
the net metering and interconnection rules adopted by the
commission and codified at 170 IAC 4-4.2 and 170 IAC 4-4.3 for
compliance with the requirements set forth in subsection (b). To
the extent that any rules codified at 170 IAC 4-4.2 and 170
IAC 4-4.3 do not meet the requirements set forth in subsection (b),
the rules are void. Not later than June 15, 2010, the commission
shall notify the publisher of the Indiana Administrative Code and
Indiana Register of any rules codified at 170 IAC 4-4.2 and 170
IAC 4-4.3 that are void under this subsection. The publisher shall
remove the rules that are void under this subsection from the
Indiana Administrative Code.
(f) Not later than November 1, 2010, the commission shall report
to the regulatory flexibility committee established by IC 8-1-2.6-4
on the commission's progress under subsection (d) 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).
(g) This SECTION expires January 1, 2012.".
Delete pages 2 through 4.
SOURCE: Page 5, line 1; (10)CR031303.5. -->
Page 5, delete lines 1 through 23.
Renumber all SECTIONS consecutively.
(Reference is to SB 313 as reprinted January 29, 2010.)
and when so amended that said bill do pass.
CR031303/DI 75 2010