Introduced Version HOUSE BILL No. 1221 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 8-1; IC 16-19-7-2. Synopsis: Electric vehicles and electricity pricing. Provides that a person that: (1) owns, operates, or leases electric vehicle (EV) supply equipment; and (2) makes the EV supply equipment available for use by the public for compensation; may charge the public for such use based in whole or in part on the kilowatt hours of electricity sold, subject to periodic inspection of the person's EV supply equipment by the division of weights and measures (division) of the state department of health (department). Specifies that a person that makes EV supply equipment available for use by the public for compensation, regardless of whether the person charges the public for such use based on: (1) the kilowatt hours of electricity sold; (2) the amount of time spent by an EV at a designated charging space; or (3) a combination of both; is not a public utility solely by reason of engaging in this activity. Requires the department to adopt emergency rules to establish standards to be used by the division, or by inspectors authorized by the division, in inspecting EV supply equipment. Provides that the standards adopted by the department must be the same as, or at least as effective as, the (Continued next page) Effective: Upon passage. Soliday, Manning January 6, 2022, read first time and referred to Committee on Utilities, Energy and Telecommunications. 2022 IN 1221—LS 7036/DI 101 Digest Continued draft or final requirements for EV fueling devices adopted by the National Institute of Standards and Technology. Authorizes the utility regulatory commission (IURC) to approve: (1) time-varying price structures and tariffs; or (2) other alternative pricing structures and tariffs; for retail energy service. Defines a "public use electric vehicle" (public use EV) as any of the following electric vehicles that is used primarily to serve the public: (1) An electric school bus. (2) An electric transit bus. (3) An electric vehicle used by a public or private commercial enterprise primarily to deliver goods or services to the public. Authorizes an electric utility (defined as a public utility that is subject to the jurisdiction of the IURC) to request approval from the IURC to implement a public use EV pilot program (pilot program) to do any of the following: (1) Install, own, or operate charging infrastructure or make-ready infrastructure to support public use EVs. (2) Provide incentives or rebates to customers to encourage customer investment in public use EVs and in associated EV supply equipment. Sets forth certain required information that an electric utility's request for approval of a pilot program must include. Provides that an electric utility's request for approval of a pilot program may include a request for: (1) assurance of cost recovery for pilot program costs, up to the amount of an approved cost estimate; and (2) deferral of pilot program costs. Sets forth the processes by which an electric utility may request the IURC's approval of a pilot program. Provides that the IURC shall approve an electric utility's request for approval of a pilot program if the IURC determines that the proposed pilot program is reasonable, just, and in the public interest. Sets forth certain factors that the IURC must consider in making this determination. Specifies that an electric utility is not prohibited from: (1) installing, owning, or operating charging infrastructure or make-ready infrastructure for electric vehicles; and (2) seeking to include the associated costs in the electric utility's basic rates and charges by initiating a proceeding before the IURC. Provides that in such a case, the IURC shall approve the inclusion of the costs in the electric utility's basic rates and charges if the IURC finds that the costs incurred are reasonable, just, and in the public interest. Requires the IURC to adopt rules to implement these provisions. 2022 IN 1221—LS 7036/DI 1012022 IN 1221—LS 7036/DI 101 Introduced Second Regular Session of the 122nd General Assembly (2022) 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 word NEW 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 or this style type reconciles conflicts between statutes enacted by the 2021 Regular Session of the General Assembly. HOUSE BILL No. 1221 A BILL FOR AN ACT to amend the Indiana Code concerning utilities. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 8-1-2-1.3 IS ADDED TO THE INDIANA CODE 2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE 3 UPON PASSAGE]: Sec. 1.3. (a) As used in this section, "division" 4 refers to the division of weights and measures of the state 5 department of health. 6 (b) As used in this section, "electric vehicle", or "EV", means a 7 vehicle that employs electrical energy as a primary or secondary 8 mode of propulsion. The term includes: 9 (1) all-electric vehicles; and 10 (2) plug-in hybrid electric vehicles. 11 (c) As used in this section, "electric vehicle supply equipment", 12 or "EV supply equipment", means a device or system designed and 13 used specifically to transfer electrical energy to an electric vehicle, 14 either as charge transferred by physical or wireless connection, by 15 loading a fully charged battery, or by other means. 16 (d) A person that: 17 (1) owns, operates, or leases EV supply equipment; and 2022 IN 1221—LS 7036/DI 101 2 1 (2) makes the EV supply equipment available for use by the 2 public for compensation; 3 may charge the public for such use based in whole or in part on the 4 kilowatt hours of electricity sold in a particular transaction, 5 subject to periodic inspection of the person's EV supply equipment 6 by the division. 7 (e) A person that: 8 (1) owns, operates, or leases EV supply equipment; and 9 (2) makes the EV supply equipment available for use by the 10 public for compensation, regardless of whether the person 11 charges the public for such use based on: 12 (A) the kilowatt hours of electricity sold; 13 (B) the amount of time spent by an electric vehicle at a 14 designated charging space; or 15 (C) a combination of both (A) and (B); 16 is not a public utility solely by reason of engaging in any activity 17 described in subdivisions (1) through (2). 18 (f) The state department of health shall adopt emergency rules 19 under IC 4-22-2-37.1, as authorized by IC 24-6-3-16(a), to establish 20 standards to be used by the division, or by inspectors authorized by 21 the division, in inspecting EV supply equipment, as described in 22 subsection (d). A standard adopted under this subsection must be 23 the same as, or at least as effective as, the Draft National Institute 24 of Standards and Technology Handbook 44 Device Code 25 Requirements for Electric Vehicle Fueling. 26 (g) The state department of health shall determine when the 27 National Institute of Standards and Technology draft requirements 28 described in subsection (f) have been finally adopted. If the state 29 department of health determines that the requirements have been 30 finally adopted, the state department of health shall adopt 31 emergency rules under IC 4-22-2-37.1 to amend the rules adopted 32 by the state department under subsection (f), as described in 33 IC 24-6-3-16(b). An emergency rule adopted under this subsection 34 must provide standards for EV supply equipment that are: 35 (1) the same as; or 36 (2) at least as effective as; 37 the standards finally adopted by the National Institute of 38 Standards and Technology. An emergency rule adopted under this 39 subsection must take effect not later than sixty (60) days after the 40 date of publication of the standards finally adopted by the National 41 Institute of Standards and Technology. 42 SECTION 2. IC 8-1-2-61 IS AMENDED TO READ AS FOLLOWS 2022 IN 1221—LS 7036/DI 101 3 1 [EFFECTIVE UPON PASSAGE]: Sec. 61. (a) Any public utility may 2 make complaint as to any matter affecting its own rates or service. The 3 petition or complaint must include a statement as to whether the utility, 4 if a not-for-profit water utility or municipal utility, has any outstanding 5 indebtedness to the federal government. The public utility shall publish 6 a notice of the filing of such petition or complaint in a newspaper of 7 general circulation published in any county in which the public utility 8 renders service. An order affecting rates or service may be entered by 9 the commission without a formal public hearing, if: 10 (1) the utility is a not-for-profit water utility or a municipal utility; 11 and 12 (2) the utility has obtained written consent to obtain an order 13 affecting its rates from the commission without a formal hearing 14 from any agency of the federal government with which the utility 15 has outstanding evidence of indebtedness to the federal 16 government. 17 The commission may, however, on its own motion require a formal 18 public hearing, and shall, upon a motion filed by the utility consumer 19 counselor, by any public or municipal corporation, or by ten (10) 20 individuals, firms, corporations, limited liability companies, or 21 associations, or ten (10) complainants of all or any of these classes, 22 hold a formal public hearing with respect to any such petition or 23 complaint. 24 (b) In any general rate proceeding under subsection (a) which 25 requires a public hearing and in which an increase in revenues is 26 sought which exceeds the sum of two million five hundred thousand 27 dollars ($2,500,000), the commission shall conduct at least one (1) 28 public hearing in the largest municipality located within such utility's 29 service area. 30 (c) In a proceeding brought by an energy utility (as defined in 31 IC 8-1-2.5-2) under this section, the commission may approve: 32 (1) time-varying price structures and tariffs; or 33 (2) other alternative pricing structures and tariffs; 34 for retail energy service (as defined in IC 8-1-2.5-3), such as 35 time-of-use or off-peak pricing, critical peak pricing, variable peak 36 pricing, and real-time pricing. 37 SECTION 3. IC 8-1-2.5-6 IS AMENDED TO READ AS 38 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) 39 Notwithstanding any other law or rule adopted by the commission, 40 except those cited, or rules adopted that pertain to those cited, in 41 section 11 of this chapter, in approving retail energy services or 42 establishing just and reasonable rates and charges, or both for an 2022 IN 1221—LS 7036/DI 101 4 1 energy utility electing to become subject to this section, the 2 commission may do the following: 3 (1) Adopt alternative regulatory practices, procedures, and 4 mechanisms, and establish rates and charges that: 5 (A) are in the public interest as determined by consideration of 6 the factors described in section 5 of this chapter; and 7 (B) enhance or maintain the value of the energy utility's retail 8 energy services or property; 9 including practices, procedures, and mechanisms focusing on the 10 price, quality, reliability, and efficiency of the service provided by 11 the energy utility. 12 (2) Establish rates and charges based on market or average prices, 13 price caps, index based prices, and prices that: 14 (A) use performance based rewards or penalties, either related 15 to or unrelated to the energy utility's return or property; and 16 (B) are designed to promote efficiency in the rendering of 17 retail energy services. 18 (3) Approve: 19 (A) time-varying price structures and tariffs; or 20 (B) other alternative pricing structures and tariffs; 21 for retail energy service, such as time-of-use or off-peak 22 pricing, critical peak pricing, variable peak pricing, and 23 real-time pricing. 24 (b) This section: 25 (1) does not give a party to a collective bargaining agreement any 26 greater rights under the collective bargaining agreement than the 27 party had before January 1, 1995; 28 (2) does not give the commission the authority to order a party to 29 a collective bargaining agreement to cancel, terminate, amend or 30 otherwise modify the collective bargaining agreement; and 31 (3) may not be implemented by the commission in a way that 32 would give a party to a collective bargaining agreement any 33 greater rights under the collective bargaining agreement than the 34 party had before January 1, 1995. 35 (c) An energy utility electing to become subject to this section shall 36 file with the commission an alternative regulatory plan proposing how 37 the commission will approve retail energy services or just and 38 reasonable rates and charges for the energy utility's retail energy 39 service. 40 (d) The energy utility shall publish a notice of the filing of a petition 41 under this section in a newspaper of general circulation published in 42 any county in which the energy utility provides retail energy service. 2022 IN 1221—LS 7036/DI 101 5 1 (e) After notice and hearing, the commission may approve, reject, 2 or modify the energy utility's proposed plan if the commission finds 3 that such action is consistent with the public interest. However, the 4 commission may not order that material modifications changing the 5 nature, scope or duration of the plan take effect without the agreement 6 of the energy utility. The energy utility shall have twenty (20) days 7 after the date of a commission order modifying the energy utility's 8 proposed plan within which to, in writing, accept or reject the 9 commission's order. 10 (f) An energy utility may withdraw a plan proposed under this 11 section without prejudice before the commission's approval of the plan, 12 or the energy utility may timely reject a commission order modifying 13 its proposed plan under this section without prejudice. However, the 14 energy utility may not file a petition for comparable relief under this 15 section for a period of twelve (12) months after the date of the energy 16 utility's withdrawal of its proposed plan or the date of the energy 17 utility's rejection of the commission's order, whichever is applicable. 18 SECTION 4. IC 8-1-41 IS ADDED TO THE INDIANA CODE AS 19 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON 20 PASSAGE]: 21 Chapter 41. Pilot Programs for Infrastructure for Public Use 22 Electric Vehicles 23 Sec. 1. (a) As used in this chapter, "charging infrastructure" 24 means: 25 (1) structures; 26 (2) machinery; 27 (3) equipment; 28 (4) hardware; 29 (5) software; and 30 (6) other capital investments; 31 installed to support and charge one (1) or more electric vehicles. 32 (b) The term includes Level 2 charging stations, direct-current 33 fast charging stations, and battery exchange stations. 34 Sec. 2. As used in this chapter, "commission" refers to the 35 Indiana utility regulatory commission created by IC 8-1-1-2. 36 Sec. 3. As used in this chapter, "electric utility" means a public 37 utility (as defined in IC 8-1-2-1(a)) that: 38 (1) furnishes retail electric service to customers in Indiana; 39 and 40 (2) is under the jurisdiction of the commission for the 41 approval of rates and charges. 42 Sec. 4. (a) As used in this chapter, "electric vehicle", or "EV", 2022 IN 1221—LS 7036/DI 101 6 1 means a vehicle that employs electrical energy as a primary or 2 secondary mode of propulsion. 3 (b) The term includes: 4 (1) all-electric vehicles; and 5 (2) plug-in hybrid electric vehicles. 6 Sec. 5. As used in this chapter, "make-ready infrastructure" 7 means the: 8 (1) structures; 9 (2) machinery; 10 (3) equipment; 11 (4) hardware; 12 (5) software; 13 (6) storage batteries; and 14 (7) other capital investments; 15 installed to connect charging infrastructure to an electric utility's 16 distribution system, including any necessary upgrades to the 17 electric utility's distribution system. 18 Sec. 6. (a) As used in this chapter, "public use electric vehicle", 19 or "public use EV", means any of the following electric vehicles 20 that is used primarily to serve the public, regardless of whether the 21 electric vehicle (or any associated charging infrastructure) is 22 owned, leased, or operated by, or on behalf of, a governmental or 23 private entity: 24 (1) An electric school bus. 25 (2) An electric transit bus. 26 (3) An electric vehicle that is used by a public or private 27 commercial enterprise primarily to deliver goods or services 28 to the public. 29 (b) The term does not include an electric vehicle that is used 30 primarily for personal, family, or household purposes, or for 31 commuting. 32 Sec. 7. As used in this chapter, "public use electric vehicle pilot 33 program", or "pilot program", means a limited deployment of: 34 (1) charging infrastructure; or 35 (2) make-ready infrastructure; 36 that is designed to evaluate the feasibility and design, including the 37 associated costs and benefits, of a larger scale deployment of such 38 infrastructure necessary to support public use electric vehicles. 39 Sec. 8. (a) An electric utility may request approval from the 40 commission to implement a public use electric vehicle pilot 41 program to do any of the following: 42 (1) Install, own, or operate charging infrastructure or 2022 IN 1221—LS 7036/DI 101 7 1 make-ready infrastructure to support public use EVs. 2 (2) Provide incentives or rebates to customers to encourage 3 customer investment in public use EVs and in associated EV 4 supply equipment. 5 For purposes of this subsection, "EV supply equipment" means a 6 device or system designed and used specifically to transfer 7 electrical energy to an electric vehicle, either as charge transferred 8 via physical or wireless connection, by loading a fully charged 9 battery, or by other means. 10 (b) An electric utility's request for approval of a pilot program 11 under this chapter must include the following: 12 (1) A full description of the need for and goals of the pilot 13 program. 14 (2) A full description of objective evaluation criteria that will 15 be used to measure the success or usefulness of the pilot 16 program. 17 (3) An estimate of all costs of the pilot program, including an 18 estimate of the costs to be borne by participating customers of 19 the electric utility, nonparticipating customers of the electric 20 utility, and the general public, as applicable. 21 (4) A timeline for completion or termination of the pilot 22 program. 23 (5) Supporting evidence as to why the pilot program is in the 24 public interest, including information as to how participating 25 customers of the electric utility, nonparticipating customers 26 of the electric utility, and the general public may be affected 27 by the pilot program. 28 (c) An electric utility's request for approval of a pilot program 29 under this chapter may include a request for: 30 (1) assurance of cost recovery for pilot program costs, up to 31 the amount of an approved cost estimate; and 32 (2) deferral of pilot program costs. 33 (d) Subject to subsection (f), an electric utility may request 34 approval of a pilot program under this chapter: 35 (1) through a proceeding initiated under IC 8-1-2-61, whether 36 as a standalone proposal or as part of a base rate case; 37 (2) as an alternative regulatory plan under IC 8-1-2.5; or 38 (3) through any other process prescribed by the commission. 39 (e) The commission shall approve an electric utility's request for 40 approval of a pilot program under this chapter if, after notice and 41 an opportunity for hearing, the commission determines that the 42 proposed pilot program is reasonable, just, and in the public 2022 IN 1221—LS 7036/DI 101 8 1 interest. In making a determination under this subsection, the 2 commission shall consider the following: 3 (1) The goals of the pilot program, including any data that 4 will be measured or collected through the pilot program, such 5 as data concerning customers' electric charging behavior, the 6 electric utility's load management capabilities, or the impact 7 of public use EVs on the electric utility's distribution system. 8 (2) Whether the pilot program includes objective evaluation 9 criteria consisting of clearly defined metrics to be used in 10 assessing the success of the pilot program. 11 (3) The extent to which the estimated costs of the proposed 12 pilot program will be borne by: 13 (A) participating customers of the electric utility; 14 (B) nonparticipating customers of the electric utility; and 15 (C) the general public; 16 as identified by the electric utility in its proposal. 17 (4) Information as to any benefits that may inure to: 18 (A) participating customers of the electric utility; 19 (B) nonparticipating customers of the electric utility; and 20 (C) the general public; 21 as a result of the pilot program, as identified by the electric 22 utility in its proposal. 23 (5) The reasonableness of the: 24 (A) scale; and 25 (B) duration; 26 of the pilot program in relation to the estimated costs and 27 benefits of the program, the electric utility's total customer 28 base and service area, and the stated goals of the program. 29 (6) Other factors the commission considers relevant in 30 determining whether the proposed pilot program is 31 reasonable, just, and in the public interest. 32 (f) This chapter does not prohibit an electric utility from: 33 (1) installing, owning, or operating charging infrastructure or 34 make-ready infrastructure for electric vehicles; and 35 (2) seeking to include the associated costs in the electric 36 utility's basic rates and charges through a proceeding 37 initiated under IC 8-1-2-61. 38 The commission shall approve the inclusion of the costs described 39 in subdivision (2) in the electric utility's basic rates and charges if 40 the commission finds that the costs incurred are reasonable, just, 41 and in the public interest. 42 Sec. 9. The commission shall adopt rules under IC 4-22-2 to 2022 IN 1221—LS 7036/DI 101 9 1 implement this chapter. In adopting rules under this section, the 2 commission may adopt emergency rules in the manner provided by 3 IC 4-22-2-37.1. Notwithstanding IC 4-22-2-37.1(g), an emergency 4 rule adopted by the commission under this section and in the 5 manner provided by IC 4-22-2-37.1 expires on the date on which 6 a rule that supersedes the emergency rule is adopted by the 7 commission under IC 4-22-2-24 through IC 4-22-2-36. 8 SECTION 5. IC 16-19-7-2 IS AMENDED TO READ AS 9 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. The division of 10 weights and measures has all the rights, duties, and powers provided 11 under: 12 (1) IC 8-1-2-1.3; 13 (2) IC 24-4-4; and 14 (3) IC 24-6. 15 SECTION 6. An emergency is declared for this act. 2022 IN 1221—LS 7036/DI 101