AN ACT to amend the Indiana Code concerning utilities.
means costs that an energy utility incurs in connection with a
compliance project, including capital, operating, maintenance,
depreciation, tax, or financing costs.
(b) The term does not include fines or penalties assessed against
or imposed on an energy utility for violating laws, regulations, or
consent decrees related to a federally mandated requirement.
Sec. 5. As used in this chapter, "federally mandated
requirement" means a requirement that the commission
determines is imposed on an energy utility by the federal
government in connection with any of the following:
(1) The federal Clean Air Act (42 U.S.C. 7401 et seq.).
(2) The federal Water Pollution Control Act (33 U.S.C. 1251
et seq.).
(3) The federal Resource Conservation and Recovery Act (42
U.S.C. 6901 et seq.).
(4) The federal Toxic Substances Control Act (15 U.S.C. 2601
et seq.).
(5) Standards or regulations concerning the integrity, safety,
or reliable operation of:
(A) transmission; or
(B) distribution;
pipeline facilities.
(6) Requirements relating to a license issued by the United
States Nuclear Regulatory Commission to operate a nuclear
energy production or generating facility (as defined in
IC 8-1-8.8-8.5).
(7) Any other law, order, or regulation administered or issued
by the United States Environmental Protection Agency, the
United States Department of Transportation, the Federal
Energy Regulatory Commission, or the United States
Department of Energy.
Sec. 6. (a) Except as provided in subsection (c), or unless an
energy utility has elected to file for:
(1) a certificate of public convenience and necessity; or
(2) the recovery of costs;
under another statute, an energy utility that seeks to recover
federally mandated costs under section 7(c) of this chapter must
obtain from the commission a certificate that states that public
convenience and necessity will be served by a compliance project
proposed by the energy utility.
(b) The commission shall issue a certificate of public
convenience and necessity under section 7(b) of this chapter if the
commission finds that the proposed compliance project will allow
the energy utility to comply directly or indirectly with one (1) or
more federally mandated requirements. In determining whether to
grant a certificate under this section, the commission shall examine
the following factors:
(1) The following, which must be set forth in the energy
utility's application for the certificate sought, in accordance
with section 7(a) of this chapter:
(A) A description of the federally mandated requirements,
including any consent decrees related to the federally
mandated requirements, that the energy utility seeks to
comply with through the proposed compliance project.
(B) A description of the projected federally mandated costs
associated with the proposed compliance project, including
costs that are allocated to the energy utility:
(i) in connection with regional transmission expansion
planning and construction; or
(ii) under a Federal Energy Regulatory Commission
approved tariff, rate schedule, or agreement.
(C) A description of how the proposed compliance project
allows the energy utility to comply with the federally
mandated requirements described by the energy utility
under clause (A).
(D) Alternative plans that demonstrate that the proposed
compliance project is reasonable and necessary.
(E) Information as to whether the proposed compliance
project will extend the useful life of an existing energy
utility facility and, if so, the value of that extension.
(2) Any other factors the commission considers relevant.
(c) An energy utility is not required to obtain a certificate under
this section for a project that constitutes a research and
development project.
Sec. 7. (a) As a condition for receiving the certificate required
under section 6 of this chapter, an energy utility must file with the
commission an application that sets forth the information
described in section 6(b) of this chapter, supported with technical
information in as much detail as the commission requires.
(b) The commission shall hold a properly noticed public hearing
on each application and grant a certificate only if the commission
has:
(1) made a finding that the public convenience and necessity
will be served by the proposed compliance project;
facilities, at an affordable price.
(4) Certain regions of the state, such as southern Indiana, could
benefit greatly from new employment opportunities created by
development of new energy production or generating facilities
utilizing the plentiful supply of coal from the geological formation
known as the Illinois Basin.
(5) Technology can be deployed that allows high sulfur coal from
the geological formation known as the Illinois Basin to be burned
or gasified efficiently while meeting strict state and federal air
quality limitations. Specifically, the state should encourage the
use of advanced clean coal technology, such as coal gasification.
(6) It is in the public interest for the state to encourage the
construction of new energy production or generating facilities that
increase the in-state capacity to provide for current and
anticipated energy demand at a competitive price.
(7) It is in the public interest for the state to encourage the
study, analysis, development, and life cycle management of
nuclear energy production or generating facilities, as well as
carbon dioxide capture, transportation, and storage facilities.
(b) The purpose of this chapter is to enhance Indiana's energy
security and reliability by ensuring all of the following:
(1) Indiana's and the region's energy production or generating
capacity continues to be adequate to provide for Indiana's current
and future energy needs, including the support of the state's
economic development efforts.
(2) The vast and underutilized coal resources of the Illinois Basin
are used as a fuel source for new energy production or generating
facilities.
(3) The electric transmission and gas transportation systems
within Indiana are upgraded to distribute additional amounts of
electricity and gas more efficiently.
(4) Jobs are created as new energy production or generating
facilities are built in regions throughout Indiana.
(5) The study, analysis, development, and life cycle
management of nuclear energy production or generating
facilities are encouraged at the same time as are new coal
fired and other fossil fuel based energy production or
generating facilities.
consider all necessary certificates at the same time.
(c) The commission shall promptly review an application filed
under this section for completeness. The commission may request
additional information the commission considers necessary to aid in its
review.
(d) The commission shall, after notice and hearing, issue a
determination of a project's eligibility for the financial incentives
described in subsection (a) not later than one hundred twenty (120)
days after the date of the application, unless the commission finds that
the applicant has not cooperated fully in the proceeding.
energy efficiency measures designed to shift customers'
electric loads from periods of higher demand to periods of
lower demand;
as a result of equipment installed, or customers enrolled, after
January 1, 2010.
(17) A clean energy project described in IC 8-1-8.8-2(1).
(18) Nuclear energy.
(19) Electricity that is:
(A) generated by a customer owned distributed generation
facility that is interconnected to the electricity supplier's
distribution system in accordance with the commission's
interconnection standards set forth in 170 IAC 4-4.3; and
(B) supplied back to the electricity supplier for use in
meeting the electricity supplier's electricity demand
requirements in accordance with the commission's net
metering rules set forth in 170 IAC 4-4.2.
(20) Combined heat and power systems.
(21) Electricity that is generated from natural gas at a facility
constructed in Indiana after July 1, 2011, which displaces
electricity generation from an existing coal fired generation
facility.
(b) Except for energy described in subsection (a)(9), the term
does not include energy from the incineration, burning, or heating
of any of the following:
(1) Tires.
(2) General household, institutional, commercial, industrial,
lunchroom, office, or landscape waste.
(c) The term excludes treated or painted lumber.
Sec. 5. As used in this chapter, "clean portfolio standard goal",
or "CPS goal", refers to a goal set forth in section 12(a) of this
chapter that a participating electricity supplier must achieve
during a specified period during the program to qualify for one (1)
or more of the financial incentives described in section 13 of this
chapter.
Sec. 6. (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 customers in Indiana on January 1, 2011.
(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. 7. As used in this chapter, "participating electricity
supplier" refers to an electricity supplier that has been approved
by the commission under section 11 of this chapter to participate
in the program.
Sec. 8. As used in this chapter, "program" refers to the Indiana
voluntary clean energy portfolio standard program established by
the commission under section 10 of this chapter.
Sec. 9. As used in this chapter, "regional transmission
organization", with respect to an electricity supplier, refers to the
regional transmission organization approved by the Federal
Energy Regulatory Commission for the control area that includes
the electricity supplier's assigned service area (as defined in
IC 8-1-2.3-2).
Sec. 10. (a) Subject to subsection (d), the commission shall adopt
rules under IC 4-22-2 to establish the Indiana voluntary clean
energy portfolio standard program. The program established
under this section must be a voluntary program that provides
incentives to participating electricity suppliers that undertake to
supply specified percentages of the total electricity supplied to their
Indiana retail electric customers from clean energy.
(b) The rules adopted by the commission under this section to
establish the program must:
(1) incorporate:
(A) the CPS goals set forth in section 12(a) of this chapter;
(B) methods for measuring and evaluating a participating
electricity supplier's compliance with the CPS goals set
forth in section 12(a) of this chapter;
(C) the financial incentives and periodic rate adjustment
mechanisms set forth in section 13 of this chapter; and
(D) the reporting requirements set forth in section 14 of
this chapter;
(2) require the commission to determine, before approving an
application under section 11 of this chapter, that the approval
of the application will not result in an increase to the retail
rates and charges of the electricity supplier above what could
reasonably be expected if the application were not approved;
(3) take effect not later than January 1, 2012; and
(4) be consistent with this chapter.
(c) Upon the effective date of the rules adopted by the
commission under this section, an electricity supplier may apply to
the commission under section 11 of this chapter for approval to
participate in the program.
(d) The commission may adopt emergency rules under
IC 4-22-2-37.1 to adopt the rules required by this section. An
emergency rule adopted by the commission under IC 4-22-2-37.1
expires on the date a rule that supersedes the emergency rule is
adopted by the commission under IC 4-22-2-24 through
IC 4-22-2-36.
Sec. 11. (a) An electricity supplier that seeks to participate in the
program established by the commission under section 10 of this
chapter must apply to the commission:
(1) in the manner and on a form prescribed by the
commission; and
(2) not later than a date specified by the commission in the
rules adopted under section 10 of this chapter;
for approval to participate in the program.
(b) Upon receiving an application under subsection (a), the
commission shall review the application for completeness. The
commission may request additional information the commission
considers necessary to aid in the commission's review.
(c) If the commission determines that:
(1) an application submitted under subsection (a) is complete
and reasonably complies with the purpose of this chapter;
(2) the electricity supplier submitting the application has
demonstrated that the electricity supplier has a reasonable
expectation of obtaining clean energy to meet the energy
requirements of its Indiana retail electric customers during
the calendar year ending December 31, 2025, in an amount
equal to at least ten percent (10%) of the total electricity
supplied by the participating electricity supplier to its Indiana
retail electric customers during the base year, as set forth in
section 12(a)(3) of this chapter; and
(3) approving the application will not result in an increase to
the retail rates and charges of the electricity supplier above
what could reasonably be expected if the application were not
approved;
the commission shall approve the application. If, however, the
commission determines that the application does not meet the
requirements set forth in this subsection, the commission shall
reject the application. The electricity supplier that submitted the
application under subsection (a) bears the burden of proving to the
commission that the application meets the requirements set forth
in this subsection.
of return to which additional basis points may be added upon the
participating electricity supplier's achievement of a particular CPS
goal, the commission shall not include as part of the authorized
rate of return any additional basis points awarded to the
participating electricity supplier for having achieved the
immediately preceding CPS goal.
(b) If the commission approves an electricity supplier's
application under section 11(c) of this chapter, the commission
shall authorize the incentive described in subsection (a) and the
recovery of costs, by means of a periodic rate adjustment
mechanism, as described in subsection (c), based on the following
considerations:
(1) The sharing of achieved savings or as a percentage of
costs.
(2) Avoided costs resulting from achieving demand side
management or energy efficiency targets.
(3) The recovery of lost revenues associated with
implementation of demand side management or energy
efficiency initiatives.
(4) The designation of electricity produced or conserved by a
clean energy resource as an energy savings for purposes of
any initiative, rule, or order approved by the commission to
promote the efficient use and production of electricity,
including initiatives to implement demand side management,
energy efficiency, or conservation measures in accordance
with commission rules.
(c) If the commission approved an electricity supplier's
application under section 11(c) of this chapter, the commission
shall permit the recovery, by means of a periodic rate adjustment
mechanism, of all just, reasonable, and necessary program costs
incurred by a participating electricity supplier in:
(1) constructing, operating, or maintaining facilities that
generate clean energy that:
(A) is used by the participating electricity supplier in its
efforts to meet a CPS goal set forth in section 12(a) of this
chapter; and
(B) meets the requirements set forth in section 12(c) of this
chapter; or
(2) otherwise generating or purchasing clean energy that is
used by the participating electricity supplier in its efforts to
meet a CPS goal set forth in section 12(a) of this chapter.
For purposes of this subsection and subsection (h)(1), "program
costs" includes administrative costs, ancillary costs, capacity costs,
costs associated with CECs, capital costs, depreciation costs, tax
costs, and financing costs incurred in connection with an activity
described in subdivision (1) or (2).
(d) A participating electricity supplier that seeks an incentive
established by the commission under subsection (a) or a periodic
rate adjustment mechanism established by the commission under
subsection (c) must apply to the commission:
(1) in the manner and on a form prescribed by the
commission; and
(2) not later than any dates specified by the commission in
rules adopted under section 10 of this chapter;
for approval for the incentive or periodic rate adjustment
mechanism sought.
(e) The commission shall review an application filed under this
section for completeness. The commission may request additional
information the commission considers necessary to aid in the
commission's review.
(f) The commission shall, after notice and hearing, issue a
determination of a participating electricity supplier's eligibility for
the financial incentive or periodic rate adjustment mechanism
sought. The commission shall issue a determination under this
subsection not later than one hundred twenty (120) days after the
date of the application, unless the commission finds that the
applicant has not cooperated fully in the proceeding.
(g) Subject to the participating electricity supplier's continuing
compliance with the applicable CPS goal, as determined according
to the measurement and evaluation procedures described in section
10(b)(1)(B) of this chapter, a shareholder incentive described in
subsection (a) continues in effect until the earlier of the following:
(1) A time or upon an event specified in the commission's
order approving the shareholder incentive.
(2) The commission issues a new order authorizing the
participating electricity supplier to receive a shareholder
incentive for meeting the next CPS program goal.
(h) Subject to the participating electricity supplier's continuing
compliance with the applicable CPS goal, as determined according
to the measurement and evaluation procedures described in section
10(b)(1)(B) of this chapter, a periodic rate adjustment mechanism
described in subsection (c) continues in effect until the earlier of
the following:
(1) The participating electricity supplier has recovered the
program costs for which the periodic rate adjustment
mechanism was allowed.
(2) A time or upon an event specified in the commission's
order approving the periodic rate adjustment mechanism.
Sec. 14. (a) Beginning in 2014, each participating electricity
supplier shall report to the commission not later than March 1 of
each year on the following:
(1) The participating electricity supplier's efforts, if any,
during the most recently ended calendar year to meet the CPS
goal applicable to the most recently ended calendar year.
(2) The total amount of renewable energy supplied to the
participating electricity supplier's Indiana retail electric
customers during the most recently ended calendar year,
including a breakdown of the following:
(A) The amount of clean energy generated by facilities
owned or operated by the participating electricity supplier.
The participating electricity supplier shall identify each
facility by:
(i) name and location;
(ii) total generating capacity;
(iii) total amount of electricity generated at the facility
during the most recently ended calendar year, including
the percentage of this amount that was supplied to the
participating electricity supplier's Indiana retail electric
customers; and
(iv) total amount of clean energy generated at the facility
during the most recently ended calendar year, including
the percentage of this amount that was supplied to the
participating electricity supplier's Indiana retail electric
customers.
(B) The amount of clean energy purchased from other
suppliers of clean energy. The participating electricity
supplier shall identify:
(i) each supplier from whom clean energy was
purchased;
(ii) the amount of clean energy purchased from each
supplier;
(iii) the price paid by the participating electricity
supplier for the clean energy purchased from each
supplier; and
(iv) to the extent known, the name and location of each
facility at which the clean energy purchased from each
supplier was generated.
(3) The number of CECs purchased by the participating
electricity supplier during the most recently ended calendar
year. The participating electricity supplier shall identify:
(A) each person from whom one (1) or more CECs was
purchased;
(B) the price paid to each person identified in clause (A) for
the CECs purchased;
(C) the number of CECs applied, if any, during the most
recently ended calendar year to meet the CPS goal
applicable to the most recently ended calendar year; and
(D) the number of CECs, if any, that the participating
electricity supplier plans to carry over to the next
succeeding CPS goal period, as permitted by section 12(f)
of this chapter.
(4) The participating electricity supplier's plans for meeting
the CPS goal applicable to the calendar year in which the
report is submitted.
(5) Advances in clean energy technology that affect activities
described in subdivisions (1) and (4).
(6) Any other information that the commission prescribes in
rules adopted under IC 4-22-2.
For purposes of this subsection, amounts of clean energy and
electricity shall be reported in megawatt hours. A participating
electricity supplier's duty to submit a report under this subsection
terminates after the participating electricity supplier has submitted
the report that applies to the calendar year ending December 31,
2025.
(b) Beginning in 2014, the commission's annual report to the
regulatory flexibility committee under IC 8-1-2.5-9(b) must include
a summary of the information provided by participating electricity
suppliers under subsection (a) with respect to the most recently
ended calendar year. The commission's duty to include the
information specified in this subsection in its annual report to the
regulatory flexibility committee terminates after the commission
has submitted the information that applies to the calendar year
ending December 31, 2025.
use and service, in the public interest, and a benefit to the welfare
and people of Indiana.
Sec. 4. (a) A carbon dioxide transmission pipeline company may
apply to the department for issuance of a carbon dioxide
transmission pipeline certificate of authority. The department shall
prescribe the form of the application, which must:
(1) include a filing fee of one thousand dollars ($1,000);
(2) be signed by a responsible officer of the company;
(3) include a statement verifying that the information
submitted is true, accurate, and complete to the best of that
responsible officer's knowledge and belief; and
(4) include all information necessary for the department to
find the following:
(A) That the applicant has the financial, managerial, and
technical ability to construct, operate, and maintain a
carbon dioxide transmission pipeline in Indiana.
(B) That the applicant has the requisite experience
constructing, operating, and maintaining a carbon dioxide
transmission pipeline.
(C) That the applicant has entered into a contract to
transport carbon dioxide by pipeline in Indiana with:
(i) at least one (1) producer of carbon dioxide located in
Indiana; and
(ii) unless all of the carbon dioxide to be transported in
the proposed carbon dioxide transmission pipeline is for
the applicant's own use or account, at least one (1) end
user of carbon dioxide.
(D) That the applicant has provided documentation to the
department showing the proposed length, diameter, and
location of the proposed carbon dioxide transmission
pipeline in Indiana.
(E) That the applicant will construct, operate, and
maintain the proposed carbon dioxide transmission
pipeline in accordance with applicable local, state, and
federal law, including federal and state safety regulations
and rules governing the construction, operation, and
maintenance of carbon dioxide transmission pipelines, and
related facilities and equipment, to ensure the safety of
pipeline employees and the public.
(F) That the applicant has:
(i) entered into an agreement with the Indiana utility
regulatory commission concerning the mitigation of
agricultural impacts associated with the construction of
the proposed carbon dioxide transmission pipeline; or
(ii) signed a statement indicating that the applicant
agrees to use, in connection with the construction of the
proposed carbon dioxide transmission pipeline, the
guidelines adopted under IC 8-1-22.6-8 by the pipeline
safety division of the Indiana utility regulatory
commission.
(b) The department shall review an application filed under
subsection (a). Subject to subsection (f), if the department
determines that the application is incomplete or inaccurate, or
both, the department shall return the application to the applicant,
informing the applicant in writing of the applicant's right to file a
corrected application with the department. If the department
determines that the application is complete and accurate, the
department shall provide notice to the applicant of:
(1) that determination; and
(2) the date, time, and location of the public information
meeting to be held under subsection (d).
(c) The applicant shall:
(1) upon receipt of a notice under subsection (b):
(A) place for public inspection a copy of the application in
a public library located in each county in which the carbon
dioxide transmission pipeline is proposed to be located;
and
(B) publish notice, in the same manner that would be
required if the applicant were subject to IC 5-3-1, in each
county in which the carbon dioxide transmission pipeline
is proposed to be located, of:
(i) the name and address of each library in which a copy
of the application is placed under clause (A); and
(ii) the date, time, and location of the public information
meeting to be held under subsection (d);
(2) provide to the department proof of publication of notice
under subdivision (1)(B); and
(3) have a representative present at the public information
meeting held under subsection (d).
(d) The department shall:
(1) conduct a public information meeting in the county seat of
one (1) of the counties, as determined by the department, in
which the proposed carbon dioxide transmission pipeline will
be located; and
(2) provide an opportunity at the meeting for members of the
public to be briefed and to ask questions about the proposed
carbon dioxide transmission pipeline.
(e) Not later than ninety (90) days after the public information
meeting held under subsection (d), the department shall notify the
applicant in writing that:
(1) the department:
(A) has made the findings described in subsection (a)(4);
and
(B) has approved the application; or
(2) the department:
(A) has determined that the department is unable to make
the findings described in subsection (a)(4); and
(B) has disapproved the application.
(f) The department shall process a corrected application that is
filed as permitted under subsection (b) in the same manner the
department processes an initially filed application under subsection
(a).
(g) If the department fails to act under subsection (e) not later
than ninety (90) days after the public information meeting held
under subsection (d), the application is considered to be approved
by the department.
(h) If:
(1) the department approves the application under subsection
(e)(1); or
(2) the application is considered to be approved as described
in subsection (g);
the department shall issue to the applicant a carbon dioxide
transmission pipeline certificate of authority.
Sec. 5. (a) Except as provided in subsection (b), if a carbon
dioxide transmission pipeline company files with the department
a verified certificate stating the reasons that the designation of
confidential information is necessary, the carbon dioxide
transmission pipeline company may designate information that it
submits in an application to the department, or in subsequent
reports, as trade secret or confidential and proprietary
information.
(b) Subsection (a) does not apply to information referred to in
section 4(a)(4)(D) of this chapter.
(c) The department shall exercise all necessary caution to avoid
public disclosure of confidential information designated under
subsection (a).
Sec. 6. A certificate of authority issued by the department under
this chapter must include at least the following:
(1) A grant of authority to construct and operate a carbon
dioxide transmission pipeline as requested in the application.
(2) A grant of authority to use, occupy, and construct pipeline
facilities in any designated public right-of-way for the
construction and operation of the carbon dioxide transmission
pipeline.
(3) A grant of authority to take and acquire possession by
eminent domain of any property or interest in property for
the construction, maintenance, or operation of a carbon
dioxide transmission pipeline in the manner provided for the
exercise of the power of eminent domain under sections 7, 8,
and 9 of this chapter.
Sec. 7. If a carbon dioxide transmission pipeline company has
received a carbon dioxide transmission pipeline certificate of
authority from the department under this chapter and is not able
to reach an agreement with a property owner for the construction,
operation, and maintenance of the carbon dioxide transmission
pipeline on the owner's property, the company may proceed to
condemn a right-of-way or an easement necessary or useful for:
(1) constructing, maintaining, using, operating, and gaining
access to a carbon dioxide transmission pipeline and all
necessary machinery, equipment, pumping stations,
appliances, and fixtures for use in connection with the carbon
dioxide transmission pipeline; and
(2) obtaining all necessary rights of ingress and egress to
construct, examine, alter, repair, maintain, operate, or
remove a carbon dioxide transmission pipeline and all of its
component parts.
Sec. 8. Except as otherwise provided in this chapter, IC 32-24-1
applies to the condemnation of property under this chapter by a
carbon dioxide transmission pipeline company.
Sec. 9. A carbon dioxide transmission pipeline company that
exercises the authority set forth in section 7 of this chapter shall:
(1) compensate the property owner by making a payment to
the owner equal to:
(A) one hundred twenty-five percent (125%) of the fair
market value of the interest in the property acquired, if the
right-of-way or easement involves agricultural land; or
(B) one hundred fifty percent (150%) of the fair market
value of the interest in the property acquired, if the
right-of-way or easement involves a parcel of property
occupied by the owner as a residence; and
(2) pay to the property owner:
(A) any damages determined under IC 32-24-1; and
(B) any loss incurred in a trade or business;
that are attributable to the exercise of eminent domain.
Sec. 10. Not later than one hundred eighty (180) days after the
completion of a carbon dioxide transmission pipeline for which the
department has issued a certificate of authority under this chapter,
the carbon dioxide transmission pipeline company shall provide
maps and other documentation to the department showing the
actual route in Indiana of the carbon dioxide transmission pipeline.
Sec. 11. A determination of the department under section 4(e)(2)
of this chapter is subject to administrative review under IC 4-21.5.
Sec. 12. The department shall deposit fee revenue received
under section 4(a)(1) of this chapter in the oil and gas
environmental fund established by IC 14-37-10-2.
Sec. 13. This chapter expires July 1, 2021.