SB 373 – Carbon Credit Programs
Authored by Sen. Sue Glick (R-LaGrange); sponsored by Rep. Don Lehe (R-Brookston)
Amends the law concerning the President Benjamin Harrison Conservation Trust program to give the program additional powers relating to the reduction of carbon footprints. It also amends the law concerning the Clean Water Indiana Program to create a new account called the INpact Farmland Carbon Account and to give the Lt. Governor powers relating to the reduction of carbon footprints. Authorizes the programs to receive money from persons wishing to invest in actions that will result in carbon sequestration and use the money in the account to purchase property that will generate carbon offsets and make grants to land trusts or other entities that will purchase property to generate carbon offsets and sell or facilitate the sale of carbon offsets. Requires the Lt. Governor to establish a program under which persons who satisfy certain requirements may register as technical advisers or verifiers to provide technical assistance to farmers and private forest landowners in carrying out climate-friendly farming and forestry practices. Establishes an advisory council to advise the Lt. Governor on the standards for the program.
Chamber position: Support
The latest: The bill was heard in the House Natural Resources Committee on Tuesday. In the hearing, Amendment 1 was offered by Rep. Lehe that changes the bill to the study of voluntary carbon credit markets. The study would be conducted by the Indiana Department of Agriculture and the Department of Natural Resources, in consultation with a working group, with findings and recommendations reported to the General Assembly. This amendment was adopted, and the amended bill passed by a vote of 10-3.
After Amendment 1 passed and the bill was voted on, Rep. Alan Morrison (R-Brazil), offered Amendment 3. This amendment 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 in 2019 (via Senate Bill 442). Amendment 3 passed out of committee by a vote of 8-5. The amended bill is now eligible for further action on the House floor.
Indiana Chamber action/commentary: The hearing was a bit unorthodox to say the least – the Chamber ended up testifying twice and there was a break in the action in the middle! We testified in support of the bill and both amendments. This bill creates a mechanism for voluntary investment by persons wishing to invest in actions that will result in carbon sequestration and authorizes the programs to sell or facilitate the sale of carbon offsets. This bill is consistent with several recommendations regarding carbon offsets made in the Indiana Chamber Foundation’s energy study, Powering Indiana’s Economic Future.
HB 1381 – Commercial Wind and Solar Standards and Siting
Authored by Rep. Ed Soliday (R-Valparaiso); sponsored by Sen. Mark Messmer (R-Jasper)
Establishes statewide default standards for large-scale renewable energy siting. Provides that a local unit of government may not impose standards that are more restrictive than the default standards. Includes provisions for construction and decommissioning. Also establishes procedures for project owners or interested parties (residents of the unit, affected property owner, political subdivisions and other interested parties) to submit petitions to the Indiana Utility Regulatory Commission (IURC) requesting review of the decision of a permit authority with regards to an application.
Chamber position: Support
The latest: The bill was heard in the Senate Utilities Committee on Thursday April 1. At that time, Sen. Messmer offered a 47-page amendment, which makes significant changes to the original bill. These changes include an appeal to the local trial court instead of the IURC, a one-time $3,000 per megawatt of capacity charge to be paid by the company building the generation, allowing for the creation of renewable energy districts and more. It also no longer invalidates existing ordinances that were passed prior to this bill. The amendment passed out of the committee with bipartisan support by a vote of 9-2 (Sen. Jean Leising [R-Oldenburg] and Sen. Andy Zay [R-Huntington] voted no).The amended 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 their dealings with local governments. State-level guidelines can aid local authorities in their consideration of renewable energy siting rules. 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
