SB 373 – Carbon Credit Programs
Authored by Sen. Sue Glick (R-LaGrange); sponsored by Rep. Don Lehe (R-Brookston)

This bill requires the Indiana State Department of Agriculture and the Department of Natural Resources, in consultation with Purdue University and other technical experts in the area of carbon verification and voluntary carbon credit markets, to study and make findings and recommendations concerning the potential role of the state in a voluntary carbon credit market.

Chamber position: Support in Part

The latest: The bill passed out of the House Natural Resources Committee last week and was recommitted to the House Judiciary Committee, where it was on the April 7 agenda. Specifically, Amendment 3, authored by Rep. Alan Morrison (R-Brazil), was heard; it provides certain protections against frivolous lawsuits for carbon sequestration processes conducted by a plant located in Terre Haute as part of a pilot project that was established by the Indiana General Assembly (Senate Bill 442) in 2019.

At the committee hearing, Rep. Chris Jeter (R-Fishers) offered Amendment 5, which will require the Indiana Utility Regulatory Commission to consider federal phaseout mandates and depreciation for electric generating facilities when deliberating on rate cases, applications for certificates of public convenience and necessity (CPCN) for new generating facilities, as well as integrated resource planning.

Many witnesses testified against Amendment 5 with only one witnesses testifying in support. Still, that amendment was adopted, as was Amendment 3, and the amended bill passed by a vote of 9-3. It is now eligible for further action on the House floor.

Indiana Chamber action/commentary: We testified in support of the bill and Amendment 3. However, we testified in opposition to Amendment 5, which has the potential to increase utility rates and reduce reliability.

HB 1191 – Local Unit Power to Prohibit Utility Connection
Authored by Rep. Jim Pressel (R-Rolling Prairie); sponsored by Sen. Eric Koch (R-Bedford)

This bill provides that the legislative body of a city or town or a county executive does not have the power to prohibit a utility from furnishing service to a customer or utility from purchasing, using or connecting or reconnecting to a utility service based on the energy source of the utility service. It also provides that any code, ordinance, land use regulation or plan provision adopted by the legislative body of a city or town or a county executive must preserve the ability of an owner of private property to use the utility service of a utility service provider that is authorized by state law. Finally, it provides that a unit of local government does not have the power to establish certain requirements or prohibitions concerning building materials to be used in the construction of a building because of the energy saving or energy producing qualities of the component, design or material.

Chamber position: Support

The latest: The bill was heard in the Senate Utilities Committee on Thursday; Rep. Pressel introduced an amendment at the hearing, which deleted the section (added through an amendment in the House) that would have prohibited a state educational institution from adopting certain rules or policies concerning electrical energy, buildings or motor vehicles. The amendment was adopted, and the bill passed out of committee by a vote of 7-3. The amended bill is now eligible for further action on the Senate floor.

Indiana Chamber action/commentary: We testified in support of the bill, which will prohibit units of local government from passing ordinances banning utility services based upon fuel service. This has happened in some locations throughout the United States. Typically, it is directed at fossil fuels (such as heating and cooking with natural gas), but sometimes applies to renewable energy sources as well. The Indiana Chamber Foundation’s energy study (Powering Indiana’s Economic Future) has a section that addresses these types of scenarios (pages 153-156). The study notes that bans on fuel sources often result in upward pressure in costs (price increases) due to underutilization of existing infrastructure and stranded costs. More importantly, the consumers, both business and residential, are in a better position to decide what best fits their needs. Additionally, the market should help determine these types of questions.

HB 1381 – Commercial Wind and Solar Standards and Siting
Authored by Rep. Ed Soliday (R-Valparaiso); sponsored by Sen. Mark Messmer (R-Jasper)

This ​bill establishes statewide default standards for large-scale renewable energy siting. It has provisions for construction and decommissioning. It provides that a unit of local government in effect on July 1, 2021, with a regulation that includes standards that are more restrictive than the default standards set forth in the bill, may continue to apply and enforce the unit’s existing regulation with respect to a proposed project or allow within the unit the establishment of a renewable energy district (RED) in which a proposed project will be located. The bill provides that a unit that adopts a wind power regulation that complies with the bill’s standards or allows the establishment of one or more REDs in the unit may impose a one-time construction fee for each wind power device included in a project application submitted to the unit after June 30, 2021. The fee is payable by the project owner upon the commencement of construction of each wind power device and may not exceed $3,000 per megawatt of installed capacity. The bill also establishes procedures for project owners or interested parties (residents of the unit, affected property owners, political subdivisions and other interested parties) to file petitions in the circuit or superior court of a county having jurisdiction.

Chamber position: Support

The latest: The bill was heard and amended significantly in the Senate Utilities Committee on April 1 and passed by a vote of 12-1. It was then recommitted to the Senate Committee on Tax and Fiscal Policy and heard on April 6. There, it was amended again with only slight modifications and passed out of this committee 10-3. The bill is now eligible for further action in the Senate.

Indiana Chamber action/commentary: We testified in support of the bill, which will resolve a problem that has already created issues in Indiana and costs renewable energy companies money in complying with various local government regulations. State-level guidelines can aid local authorities in their consideration of renewable energy siting rules. Unfortunately, the amended bill is much weaker than the original House version and will still leave Indiana with a patchwork of renewable siting regulations. It is a step in the right direction though. The Indiana Chamber Foundation’s energy study (Powering Indiana’s Economic Future) has a section that addresses these types of scenarios (pages 166-168).

Resource: Greg Ellis at (317) 264-6881 or email: gellis@indianachamber.com