Bill Text: IN HB1407 | 2011 | Regular Session | Introduced
Bill Title: Alternative energy.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-01-18 - First reading: referred to Committee on Utilities and Energy [HB1407 Detail]
Download: Indiana-2011-HB1407-Introduced.html
Citations Affected: IC 8-1.
Synopsis: Alternative energy. Requires the utility regulatory
commission to report to the regulatory flexibility committee on the
advanced energy resource market in Indiana. Requires an electricity
supplier to comply with advanced energy resource standards by certain
dates. Imposes compliance payments on an electricity supplier that fails
to comply with the standards. Establishes the advanced energy
compliance account. Deposits the compliance payments in the account.
Provides that money in the account is continuously appropriated.
Effective: July 1, 2011.
January 18, 2011, read first time and referred to Committee on Utilities and Energy.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities and to make an appropriation.
(b) The committee is composed of the members of a house standing committee selected by the speaker of the house of representatives and a senate standing committee selected by the president pro tempore of the senate. In selecting standing committees under this subsection, the speaker and president pro tempore shall determine which standing committee of the house of representatives and the senate, respectively, has subject matter jurisdiction that most closely relates to the electricity, gas, energy policy, and telecommunications jurisdiction of the regulatory flexibility committee. The chairpersons of the standing committees selected under this subsection shall co-chair the regulatory flexibility committee.
(c) The commission shall, by July 1 of each year, prepare for presentation to the regulatory flexibility committee a report that
includes the following:
(1) An analysis of the effects of competition and technological
change on universal service and on pricing of all
telecommunications services offered in Indiana.
(2) An analysis of the status of competition and technological
change in the provision of video service (as defined in
IC 8-1-34-14) to Indiana customers, as determined by the
commission in carrying out its duties under IC 8-1-34. The
commission's analysis under this subdivision must include a
description of:
(A) the number of multichannel video programming
distributors offering video service to Indiana customers;
(B) the technologies used to provide video service to Indiana
customers; and
(C) the effects of competition on the pricing and availability of
video service in Indiana.
(3) Beginning with the report due July 1, 2007, and in each report
due in an odd-numbered year after July 1, 2007:
(A) an identification of all telecommunications rules and
policies that are eliminated by the commission under section
4.1 of this chapter during the two (2) most recent state fiscal
years; and
(B) an explanation why the telecommunications rules and
policies identified under clause (A) are no longer in the public
interest or necessary to protect consumers.
(4) Beginning with the report due July 1, 2010, best practices
concerning vertical location of underground facilities for purposes
of IC 8-1-26. A report under this subdivision must address the
viability and economic feasibility of technologies used to
vertically locate underground facilities.
(5) Beginning with the report due July 1, 2013, and in each
report due in an odd-numbered year after July 1, 2013:
(A) an analysis of the status of the advanced energy
resource market in Indiana;
(B) compliance rates for electricity suppliers under
IC 8-1-37; and
(C) recommendations of strategies to encourage
compliance with IC 8-1-37, including strategies that
consider available technologies, costs, job creation, and
economic impacts.
(d) In addition to reviewing the commission report prepared under
subsection (c), the regulatory flexibility committee shall also issue a
report and recommendations to the legislative council by November 1
of each year that is based on a review of the following issues:
(1) The effects of competition and technological change in the
telecommunications industry and impact of competition on
available subsidies used to maintain universal service.
(2) The status of modernization of the publicly available
telecommunications infrastructure in Indiana and the incentives
required to further enhance this infrastructure.
(3) The effects on economic development and educational
opportunities of the modernization described in subdivision (2).
(4) The current methods of regulating providers, at both the
federal and state levels, and the effectiveness of the methods.
(5) The economic and social effectiveness of current
telecommunications service pricing.
(6) All other telecommunications issues the committee deems
appropriate.
The report and recommendations issued under this subsection to the
legislative council must be in an electronic format under IC 5-14-6.
(e) The regulatory flexibility committee shall meet on the call of the
co-chairpersons to study telecommunications issues described in
subsection (d). The committee shall, with the approval of the
commission, retain the independent consultants the committee
considers appropriate to assist the committee in the review and study.
The expenses for the consultants shall be paid by the commission.
Chapter 37. Advanced Energy Resource Standard
Sec. 1. As used in this chapter, "account" refers to the advanced energy compliance account established by section 10 of this chapter.
Sec. 2. As used in this chapter, "advanced energy resources" means any of the following sources or programs for the production or conservation of electricity:
(1) Energy efficiency measures.
(2) Combined heat and power systems.
(3) Clean coal and energy projects (as defined in IC 8-1-8.8-2).
(4) Low carbon dioxide emitting or noncarbon dioxide emitting technologies.
(5) Fuel cells.
(6) Energy from waste to energy facilities producing steam not used for the production of electricity.
(7) Advanced solid waste or construction and demolition debris conversion technology that results in measurable greenhouse gas emissions reductions as calculated under the United States Environmental Protection Agency's waste reduction model.
(8) Demand-side management or conservation programs.
(9) Storage technology that provides a customer more flexibility to modify the customer's demand or load and usage characteristics.
(10) Renewable energy resources.
(11) Other technology designated by the commission as advanced energy resources.
Sec. 3. As used in this chapter, "compliance payment" refers to an advanced energy compliance payment imposed and collected under section 9(b) of this chapter.
Sec. 4. As used in this chapter, "electricity supplier" means:
(1) a public utility (as defined in IC 8-1-2-1(a));
(2) a municipally owned utility (as defined in IC 8-1-2-1(h));
(3) a corporation organized under IC 8-1-13; or
(4) 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;
that furnishes retail electric services to the public.
Sec. 5. As used in this chapter, "energy efficiency measures" means:
(1) the installation and use of a device; or
(2) the use of a method or project implemented by an electricity consumer;
that reduces electrical usage.
Sec. 6. 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 located within Indiana.
Sec. 7. As used in this chapter, "renewable energy resources" means the following sources of renewable energy:
(1) Energy from wind.
(2) Solar energy.
(3) Photovoltaic cells and panels.
(4) Dedicated crops grown for energy production.
(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, including the following:
(i) Wood residues.
(ii) Forest thinnings.
(iii) Mill residue wood.
(iv) Waste from clean construction and demolition.
(D) Animal wastes.
(E) Aquatic plants.
(6) Hydropower from dams in existence on July 1, 2011.
Sec. 8. (a) Not later than December 31, 2025, each electricity supplier shall supply at least twenty-five percent (25%) of the total electricity supplied by the electricity supplier to Indiana customers from electricity generated or reduced by advanced energy resources.
(b) In achieving compliance with the standard set forth in subsection (a), each electricity supplier shall supply electricity generated from renewable energy resources located within Indiana 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, three percent (3%).
(2) Not later than December 31, 2013, four percent (4%).
(3) Not later than December 31, 2014, five percent (5%).
(4) Not later than December 31, 2015, six percent (6%).
(5) Not later than December 31, 2016, seven percent (7%).
(6) Not later than December 31, 2017, eight percent (8%).
(7) Not later than December 31, 2018, nine percent (9%).
(8) Not later than December 31, 2019, nine and five-tenths percent (9.5%).
(9) Not later than December 31, 2020, ten percent (10%).
(10) Not later than December 31, 2021, ten and five-tenths percent (10.5%).
(11) Not later than December 31, 2022, eleven percent (11%).
(12) Not later than December 31, 2023, eleven and five-tenths percent (11.5%).
(13) Not later than December 31, 2024, twelve percent (12%).
(14) Not later than December 31, 2025, twelve and five-tenths percent (12.5%).
(c) For purposes of subsections (a) and (b), electricity is measured in megawatt hours.
(d) An electricity supplier shall calculate the applicable percentage under subsection (a) or (b) based on the average of total kilowatt hours that the electricity supplier sold in the three (3)
immediately preceding calendar years.
(e) This section does not preclude an electricity supplier from
supplying a greater percentage of its electricity from advanced
energy resources.
(f) An electricity supplier may purchase or trade RECs to
comply with subsection (a) or (b).
Sec. 9. (a) 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 section 8(a) and
8(b) of this chapter for the preceding calendar year.
(b) If the commission determines that an electricity supplier has
failed to comply with section 8(a) or 8(b) of this chapter, the
commission shall impose on and collect from the electricity
supplier an advanced energy compliance payment as follows:
(1) The number of megawatt hour of electricity that the
electricity supplier was required to but failed to supply under
section 8(a) or 8(b) of this chapter; multiplied by
(2) A dollar amount as follows:
(A) In the calendar year ending December 31, 2012, fifty
dollars ($50).
(B) In the calendar year ending December 31, 2013, and
each calendar year thereafter, the greater of:
(i) fifty dollars ($50) multiplied by the most recent
United States Department of Labor Consumer Price
Index.
(ii) fifty dollars ($50).
(c) The commission shall deposit any payments collected under
subsection (b) in the advanced energy compliance account
established under section 10 of this chapter.
(d) An electricity utility may not recover from the electric
utility's customers a cost incurred under this section.
Sec. 10. (a) The advanced energy compliance account is
established as an account within the state general fund to provide
financial, technical, and related assistance for advanced energy
projects.
(b) The commission shall administer the account. The expenses
of administering the account shall be paid from money in the
account.
(c) The treasurer of state shall invest the money in the account
not currently needed to meet the obligations of the account in the
same manner as other public money may be invested. Interest that
accrues from these investments shall be deposited in the account.
(d) Money in the account is continuously appropriated for the purposes of the account.
(e) Money in the account at the end of a state fiscal year does not revert to the state general fund.
(f) The account consists of:
(1) compliance payments deposited under section 9(c) of this chapter;
(2) interest deposited under subsection (c);
(3) grants, gifts, and donations to the account; and
(4) money from any other source deposited in the account.
Sec. 11. (a) An electricity supplier is not required to timely comply with section 8(a) or 8(b) of this chapter, as applicable, if the commission determines that the cost to the electricity supplier of compliance with section 8(a) or 8(b) of this chapter, as applicable, using the advanced energy resources available to the electricity supplier would result in an increase of six percent (6%) or greater in the basic rates and charges for electricity supplied to customers of the electricity supplier. The commission shall conduct a public hearing to make a determination under this section.
(b) If the commission determines under a hearing conducted under subsection (a) that the cost of compliance with section 8(a) or 8(b) of this chapter, as applicable, would result in a rate increase of six percent (6%) or greater, the commission:
(1) shall extend the applicable deadline imposed under section 8(a) or 8(b) of this chapter; and
(2) may reduce the electricity supplier's obligations under section 8(a) or 8(b) of this chapter, as applicable.
If the commission extends a deadline or reduces an obligation under this subsection, the commission shall consider whether subsequent deadlines or obligations imposed under section 8(a) or 8(b) of this chapter, as applicable, should also be extended or reduced.
Sec. 12. (a) An electricity supplier is not required to comply with section 8(a) or 8(b) of this chapter if the commission determines that events beyond the reasonable control of the electricity supplier prevent the electricity supplier from complying. For purposes of this section, "events beyond the reasonable control of the electricity supplier" means the following:
(1) Weather related damage.
(2) Mechanical failure.
(3) Lack of transmission capacity or availability.
(4) An emergency as found by the commission under
IC 8-1-2-113.
(b) The commission shall conduct a public hearing before
making a determination under subsection (a).
(c) If the commission determines under subsection (a) that
events beyond the reasonable control of the electricity supplier
prevent the electricity supplier from complying with section 8(a) or
8(b) of this chapter, the commission shall:
(1) reduce or suspend, as appropriate, the affected electricity
supplier's obligations under section 8(a) or 8(b) of this
chapter, as applicable; and
(2) review the commission's determination not more than six
(6) months after the reduction or suspension under
subdivision (1) takes effect.
(d) In its review under subsection (c)(2), the commission shall
establish a compliance schedule under section 8(a) or 8(b), as
applicable, for the electricity supplier for the following calendar
year. The compliance schedule may be identical to the applicable
compliance schedule under section 8 of this chapter.
