February 22, 2013
SENATE BILL No. 510
DIGEST OF SB 510
(Updated February 21, 2013 11:59 am - DI 103)
Citations Affected: IC 4-4; noncode.
Synopsis: Substitute natural gas contracts. Requires the Indiana
finance authority to submit a final purchase contract, including
amendments, and any other agreements with a producer of SNG to the
utility regulatory commission (IURC). Authorizes the IURC, after
notice and hearing, to approve, reject, or modify a final purchase
contract if in the public interest. Specifies certain factors the IURC
must consider before taking action. Requires the IURC to issue a final
order within 180 days. Requires a court to award attorney's fees to the
prevailing party in a civil action related to a final purchase contract.
Authorizes the IURC to adopt rules, including rules establishing filing
deadlines. Requires the IURC to study the sales price of natural gas and
report the study results to the regulatory flexibility committee in an
electronic format not later than November 1, 2013.
Effective: Upon passage; May 15, 2013.
Eckerty, Boots, Banks, Grooms,
Holdman, Kruse, Leising, Schneider,
Smith J, Steele, Walker, Waltz,
Young R Michael, Randolph, Stoops,
Head, Landske, Arnold J, Young R,
Skinner, Miller Pete
January 14, 2013, read first time and referred to Committee on Utilities.
February 21, 2013, amended, reported favorably _ Do Pass.
February 22, 2013
First Regular Session 118th General Assembly (2013)
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
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type
. Also, the
will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type
this style type
between statutes enacted by the 2012 Regular Session of the General Assembly.
SENATE BILL No. 510
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-4-11.6-14; (13)SB0510.1.1. -->
SECTION 1. IC 4-4-11.6-14, AS ADDED BY P.L.2-2009,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
MAY 15, 2013]: Sec. 14. (a) The authority, either directly or as an
assignee of an energy utility, may enter into purchase contracts for the
purchase of SNG from coal gasification facilities.
(b) The authority shall submit
a final purchase contract the
to the commission for approval:
(1) A final purchase contract, including any amendments,
addenda, or other modifications made or added to the
contract at any time.
(2) Any other agreements entered into between the authority
and a producer of SNG.
(c) After notice and a hearing, the commission may approve,
reject, or modify a final purchase contract that is filed with,
pending before, or remanded or otherwise returned to the
jurisdiction of the commission on or after May 15, 2013, if the
commission finds that such action is in the public interest. The
commission shall consider the following before finding that an
action under this subsection is in the public interest:
(1) Whether the final purchase contract is structured in a way
that lessens the impact of any price volatility in the natural
gas market on retail end use customers.
(2) Whether the assumptions underlying the model used to
calculate the purchase price of SNG under the final purchase
contract, including assumptions about the future price of
natural gas and coal and the value of future byproducts of the
coal gasification facility, adequately apportion financial risk
between the SNG producer and retail end use customers.
(3) The findings of any study conducted by the commission on
the natural gas market and reported to the regulatory
flexibility committee established under IC 8-1-2.6-4.
(4) Any other factors the commission considers necessary.
The commission shall issue a final order not more than one
hundred eighty (180) days after the date on which the authority
submits the final purchase contract to the commission under
(d) This subsection applies to a civil action that is:
(1) commenced after May 14, 2013; and
(2) related to a final order issued under subsection (c).
The court shall award reasonable and necessary attorney's fees as
part of the cost to the prevailing party in the civil action.
(e) The commission may adopt rules under IC 4-22-2 to carry
out the requirements of this section. A rule adopted under this
subsection must establish filing and other procedural deadlines for
all parties to a hearing under subsection (c).
SOURCE: ; (13)SB0510.1.2. -->
SECTION 2. [EFFECTIVE UPON PASSAGE] (a) Not later than
November 30, 2013, the utility regulatory commission created by
IC 8-1-1-2 shall:
(1) conduct a study of the natural gas market, including:
(A) natural gas prices on both the open and captive
(B) the effect of the availability of substitute natural gas
and shale gas on natural gas prices; and
(2) report the study results in an electronic format under
IC 5-14-6 to the regulatory flexibility committee established
under IC 8-1-2.6-4.
(b) This SECTION expires December 31, 2013.
SOURCE: ; (13)SB0510.1.3. -->
SECTION 3. An emergency is declared for this act.