*HB1221.1*
January 18, 2022
HOUSE BILL No. 1221
_____
DIGEST OF HB 1221 (Updated January 18, 2022 11:56 am - DI 101)
Citations Affected: IC 8-1.
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.
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. 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
(Continued next page)
Effective: Upon passage.
Soliday, Manning, Negele, Hamilton
January 6, 2022, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
January 18, 2022, amended, reported — Do Pass.
HB 1221—LS 7036/DI 101 Digest Continued
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 capital costs, up
to the amount of an approved cost estimate; and (2) deferral of pilot
program capital 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 capital 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 capital costs in the electric utility's basic rates and
charges if the IURC finds that the capital costs incurred are reasonable,
just, and in the public interest. Requires the IURC to adopt rules to
implement these provisions.
HB 1221—LS 7036/DI 101HB 1221—LS 7036/DI 101 January 18, 2022
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, "electric
4 vehicle", or "EV", means a vehicle that employs electrical energy
5 as a primary or secondary mode of propulsion. The term includes:
6 (1) all-electric vehicles; and
7 (2) plug-in hybrid electric vehicles.
8 (b) As used in this section, "electric vehicle supply equipment",
9 or "EV supply equipment", means a device or system designed and
10 used specifically to transfer electrical energy to an electric vehicle,
11 either as charge transferred by physical or wireless connection, by
12 loading a fully charged battery into the vehicle, or by other means.
13 (c) Subject to subsection (e), a person, including a joint agency
14 (as defined in IC 8-1-2.2-2), that:
15 (1) owns, operates, or leases EV supply equipment;
16 (2) makes the EV supply equipment available for use by the
17 public for compensation; and
HB 1221—LS 7036/DI 101 2
1 (3) resells electricity exclusively for the charging of plug-in
2 electric vehicles;
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 (d) Subject to subsections (c) and (e), a person, including a joint
6 agency (as defined in IC 8-1-2.2-2), that:
7 (1) owns, operates, or leases EV supply equipment; and
8 (2) makes the EV supply equipment available for use by the
9 public for compensation, regardless of whether the person
10 charges the public for such use based on:
11 (A) the kilowatt hours of electricity sold;
12 (B) the amount of time spent by an electric vehicle at a
13 designated charging space; or
14 (C) a combination of both (A) and (B);
15 is not a public utility solely by reason of engaging in any activity
16 described in subdivisions (1) through (2).
17 (e) This section does not:
18 (1) apply to or prohibit the lawful use of:
19 (A) an alternate energy production facility;
20 (B) a cogeneration facility; or
21 (C) a small hydro facility;
22 within the scope of IC 8-1-2.4 by a retail electric customer for
23 the private provision of electrical energy to EV supply
24 equipment at the customer's location in connection with the
25 charging of electric vehicles;
26 (2) render:
27 (A) the owner or operator of a facility described in
28 subdivision (1)(A) through (1)(C) a public utility; or
29 (B) the provision of electrical energy:
30 (i) by a facility described in subdivision (1)(A) through
31 (1)(C); and
32 (ii) for the purpose described in subdivision (1);
33 a public utility service;
34 that is subject to regulation; or
35 (3) except for the exclusive purpose set forth in subsection
36 (c)(3), authorize the sale of retail electric service to the
37 general public.
38 SECTION 2. IC 8-1-2-61 IS AMENDED TO READ AS FOLLOWS
39 [EFFECTIVE UPON PASSAGE]: Sec. 61. (a) Any public utility may
40 make complaint as to any matter affecting its own rates or service. The
41 petition or complaint must include a statement as to whether the utility,
42 if a not-for-profit water utility or municipal utility, has any outstanding
HB 1221—LS 7036/DI 101 3
1 indebtedness to the federal government. The public utility shall publish
2 a notice of the filing of such petition or complaint in a newspaper of
3 general circulation published in any county in which the public utility
4 renders service. An order affecting rates or service may be entered by
5 the commission without a formal public hearing, if:
6 (1) the utility is a not-for-profit water utility or a municipal utility;
7 and
8 (2) the utility has obtained written consent to obtain an order
9 affecting its rates from the commission without a formal hearing
10 from any agency of the federal government with which the utility
11 has outstanding evidence of indebtedness to the federal
12 government.
13 The commission may, however, on its own motion require a formal
14 public hearing, and shall, upon a motion filed by the utility consumer
15 counselor, by any public or municipal corporation, or by ten (10)
16 individuals, firms, corporations, limited liability companies, or
17 associations, or ten (10) complainants of all or any of these classes,
18 hold a formal public hearing with respect to any such petition or
19 complaint.
20 (b) In any general rate proceeding under subsection (a) which
21 requires a public hearing and in which an increase in revenues is
22 sought which exceeds the sum of two million five hundred thousand
23 dollars ($2,500,000), the commission shall conduct at least one (1)
24 public hearing in the largest municipality located within such utility's
25 service area.
26 (c) In a proceeding brought by an energy utility (as defined in
27 IC 8-1-2.5-2) under this section, the commission may approve:
28 (1) time-varying price structures and tariffs; or
29 (2) other alternative pricing structures and tariffs;
30 for retail energy service (as defined in IC 8-1-2.5-3), such as
31 time-of-use or off-peak pricing, critical peak pricing, variable peak
32 pricing, and real-time pricing.
33 SECTION 3. IC 8-1-2.5-6 IS AMENDED TO READ AS
34 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a)
35 Notwithstanding any other law or rule adopted by the commission,
36 except those cited, or rules adopted that pertain to those cited, in
37 section 11 of this chapter, in approving retail energy services or
38 establishing just and reasonable rates and charges, or both for an
39 energy utility electing to become subject to this section, the
40 commission may do the following:
41 (1) Adopt alternative regulatory practices, procedures, and
42 mechanisms, and establish rates and charges that:
HB 1221—LS 7036/DI 101 4
1 (A) are in the public interest as determined by consideration of
2 the factors described in section 5 of this chapter; and
3 (B) enhance or maintain the value of the energy utility's retail
4 energy services or property;
5 including practices, procedures, and mechanisms focusing on the
6 price, quality, reliability, and efficiency of the service provided by
7 the energy utility.
8 (2) Establish rates and charges based on market or average prices,
9 price caps, index based prices, and prices that:
10 (A) use performance based rewards or penalties, either related
11 to or unrelated to the energy utility's return or property; and
12 (B) are designed to promote efficiency in the rendering of
13 retail energy services.
14 (3) Approve:
15 (A) time-varying price structures and tariffs; or
16 (B) other alternative pricing structures and tariffs;
17 for retail energy service, such as time-of-use or off-peak
18 pricing, critical peak pricing, variable peak pricing, and
19 real-time pricing.
20 (b) This section:
21 (1) does not give a party to a collective bargaining agreement any
22 greater rights under the collective bargaining agreement than the
23 party had before January 1, 1995;
24 (2) does not give the commission the authority to order a party to
25 a collective bargaining agreement to cancel, terminate, amend or
26 otherwise modify the collective bargaining agreement; and
27 (3) may not be implemented by the commission in a way that
28 would give a party to a collective bargaining agreement any
29 greater rights under the collective bargaining agreement than the
30 party had before January 1, 1995.
31 (c) An energy utility electing to become subject to this section shall
32 file with the commission an alternative regulatory plan proposing how
33 the commission will approve retail energy services or just and
34 reasonable rates and charges for the energy utility's retail energy
35 service.
36 (d) The energy utility shall publish a notice of the filing of a petition
37 under this section in a newspaper of general circulation published in
38 any county in which the energy utility provides retail energy service.
39 (e) After notice and hearing, the commission may approve, reject,
40 or modify the energy utility's proposed plan if the commission finds
41 that such action is consistent with the public interest. However, the
42 commission may not order that material modifications changing the
HB 1221—LS 7036/DI 101 5
1 nature, scope or duration of the plan take effect without the agreement
2 of the energy utility. The energy utility shall have twenty (20) days
3 after the date of a commission order modifying the energy utility's
4 proposed plan within which to, in writing, accept or reject the
5 commission's order.
6 (f) An energy utility may withdraw a plan proposed under this
7 section without prejudice before the commission's approval of the plan,
8 or the energy utility may timely reject a commission order modifying
9 its proposed plan under this section without prejudice. However, the
10 energy utility may not file a petition for comparable relief under this
11 section for a period of twelve (12) months after the date of the energy
12 utility's withdrawal of its proposed plan or the date of the energy
13 utility's rejection of the commission's order, whichever is applicable.
14 SECTION 4. IC 8-1-41 IS ADDED TO THE INDIANA CODE AS
15 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
16 PASSAGE]:
17 Chapter 41. Pilot Programs for Infrastructure for Public Use
18 Electric Vehicles
19 Sec. 1. (a) As used in this chapter, "charging infrastructure"
20 means:
21 (1) structures;
22 (2) machinery;
23 (3) equipment;
24 (4) hardware;
25 (5) software; and
26 (6) other capital investments;
27 installed to support and charge one (1) or more electric vehicles.
28 (b) The term includes Level 2 charging stations, direct-current
29 fast charging stations, and battery exchange stations.
30 Sec. 2. As used in this chapter, "commission" refers to the
31 Indiana utility regulatory commission created by IC 8-1-1-2.
32 Sec. 3. As used in this chapter, "electric utility" means a public
33 utility (as defined in IC 8-1-2-1(a)) that:
34 (1) furnishes retail electric service to customers in Indiana;
35 and
36 (2) is under the jurisdiction of the commission for the
37 approval of rates and charges.
38 Sec. 4. (a) As used in this chapter, "electric vehicle", or "EV",
39 means a vehicle that employs electrical energy as a primary or
40 secondary mode of propulsion.
41 (b) The term includes:
42 (1) all-electric vehicles; and
HB 1221—LS 7036/DI 101 6
1 (2) plug-in hybrid electric vehicles.
2 Sec. 5. As used in this chapter, "make-ready infrastructure"
3 means the:
4 (1) structures;
5 (2) machinery;
6 (3) equipment;
7 (4) hardware;
8 (5) software;
9 (6) storage batteries; and
10 (7) other capital investments;
11 installed to connect charging infrastructure to an electric utility's
12 distribution system, including any necessary upgrades to the
13 electric utility's distribution system.
14 Sec. 6. (a) As used in this chapter, "public use electric vehicle",
15 or "public use EV", means any of the following electric vehicles
16 that is used primarily to serve the public, regardless of whether the
17 electric vehicle (or any associated charging infrastructure) is
18 owned, leased, or operated by, or on behalf of, a governmental or
19 private entity:
20 (1) An electric school bus.
21 (2) An electric transit bus.
22 (3) An electric vehicle that is used by a public or private
23 commercial enterprise primarily to deliver goods or services
24 to the public.
25 (b) The term does not include an electric vehicle that is used
26 primarily for personal, family, or household purposes, or for
27 commuting.
28 Sec. 7. As used in this chapter, "public use electric vehicle pilot
29 program", or "pilot program", means a limited deployment of:
30 (1) charging infrastructure; or
31 (2) make-ready infrastructure;
32 that is designed to evaluate the feasibility and design, including the
33 associated costs and benefits, of a larger scale deployment of such
34 infrastructure necessary to support public use electric vehicles.
35 Sec. 8. (a) An electric utility may request approval from the
36 commission to implement a public use electric vehicle pilot
37 program to do any of the following:
38 (1) Install, own, or operate charging infrastructure or
39 make-ready infrastructure to support public use EVs.
40 (2) Provide incentives or rebates to customers to encourage
41 customer investment in public use EVs and in associated EV
42 supply equipment.
HB 1221—LS 7036/DI 101 7
1 For purposes of this subsection, "EV supply equipment" means a
2 device or system designed and used specifically to transfer
3 electrical energy to an electric vehicle, either as charge transferred
4 via physical or wireless connection, by loading a fully charged
5 battery into the vehicle, or by other means.
6 (b) An electric utility's request for approval of a pilot program
7 under this chapter must include the following:
8 (1) A full description of the need for and goals of the pilot
9 program.
10 (2) A full description of objective evaluation criteria that will
11 be used to measure the success or usefulness of the pilot
12 program.
13 (3) An estimate of all costs of the pilot program, including an
14 estimate of the costs to be borne by participating customers of
15 the electric utility, nonparticipating customers of the electric
16 utility, and the general public, as applicable.
17 (4) A timeline for completion or termination of the pilot
18 program.
19 (5) Supporting evidence as to why the pilot program is in the
20 public interest, including information as to how participating
21 customers of the electric utility, nonparticipating customers
22 of the electric utility, and the general public may be affected
23 by the pilot program.
24 (c) An electric utility's request for approval of a pilot program
25 under this chapter may include a request for:
26 (1) assurance of cost recovery for pilot program capital costs,
27 up to the amount of an approved cost estimate; and
28 (2) deferral of pilot program capital costs.
29 (d) Subject to subsection (f), an electric utility may request
30 approval of a pilot program under this chapter:
31 (1) through a proceeding initiated under IC 8-1-2-61, whether
32 as a standalone proposal or as part of a base rate case;
33 (2) as an alternative regulatory plan under IC 8-1-2.5; or
34 (3) through any other process prescribed by the commission.
35 (e) The commission shall approve an electric utility's request for
36 approval of a pilot program under this chapter if, after notice and
37 an opportunity for hearing, the commission determines that the
38 proposed pilot program is reasonable, just, and in the public
39 interest. In making a determination under this subsection, the
40 commission shall consider the following:
41 (1) The goals of the pilot program, including any data that
42 will be measured or collected through the pilot program, such
HB 1221—LS 7036/DI 101 8
1 as data concerning customers' electric charging behavior, the
2 electric utility's load management capabilities, or the impact
3 of public use EVs on the electric utility's distribution system.
4 (2) Whether the pilot program includes objective evaluation
5 criteria consisting of clearly defined metrics to be used in
6 assessing the success of the pilot program.
7 (3) The extent to which the estimated costs of the proposed
8 pilot program will be borne by:
9 (A) participating customers of the electric utility;
10 (B) nonparticipating customers of the electric utility; and
11 (C) the general public;
12 based on the evidence in the record of the proceeding.
13 (4) Information as to any benefits that may inure to:
14 (A) participating customers of the electric utility;
15 (B) nonparticipating customers of the electric utility; and
16 (C) the general public;
17 as a result of the pilot program, based on the evidence in the
18 record of the proceeding.
19 (5) The reasonableness of the:
20 (A) scale; and
21 (B) duration;
22 of the pilot program in relation to the estimated costs and
23 benefits of the program, the electric utility's total customer
24 base and service area, and the stated goals of the program.
25 (6) Other factors the commission considers relevant in
26 determining whether the proposed pilot program is
27 reasonable, just, and in the public interest.
28 (f) This chapter does not prohibit an electric utility from:
29 (1) installing, owning, or operating charging infrastructure or
30 make-ready infrastructure for electric vehicles; and
31 (2) seeking to include the associated capital costs in the
32 electric utility's basic rates and charges through a proceeding
33 initiated under IC 8-1-2-61.
34 The commission shall approve the inclusion of the capital costs
35 described in subdivision (2) in the electric utility's basic rates and
36 charges if the commission finds that the capital costs incurred are
37 reasonable, just, and in the public interest.
38 Sec. 9. The commission shall adopt rules under IC 4-22-2 to
39 implement this chapter. In adopting rules under this section, the
40 commission may adopt emergency rules in the manner provided by
41 IC 4-22-2-37.1. Notwithstanding IC 4-22-2-37.1(g), an emergency
42 rule adopted by the commission under this section and in the
HB 1221—LS 7036/DI 101 9
1 manner provided by IC 4-22-2-37.1 expires on the date on which
2 a rule that supersedes the emergency rule is adopted by the
3 commission under IC 4-22-2-24 through IC 4-22-2-36.
4 SECTION 5. An emergency is declared for this act.
HB 1221—LS 7036/DI 101 10
COMMITTEE REPORT
Mr. Speaker: Your Committee on Utilities, Energy and
Telecommunications, to which was referred House Bill 1221, has had
the same under consideration and begs leave to report the same back
to the House with the recommendation that said bill be amended as
follows:
Page 1, line 3, delete "As used in this section, "division"".
Page 1, delete lines 4 through 5.
Page 1, line 6, delete "(b)".
Page 1, run in lines 3 through 6.
Page 1, line 11, delete "(c)" and insert "(b)".
Page 1, line 15, delete "battery," and insert "battery into the
vehicle,".
Page 1, line 16, delete "(d) A person" and insert "(c) Subject to
subsection (e), a person, including a joint agency (as defined in
IC 8-1-2.2-2),".
Page 1, line 17, delete "and".
Page 2, line 2, after "compensation;" insert "and".
Page 2, between lines 2 and 3, begin a new line blocked indented
and insert:
"(3) resells electricity exclusively for the charging of plug-in
electric vehicles;".
Page 2, line 4, delete "transaction," and insert "transaction.".
Page 2, delete lines 5 through 6.
Page 2, line 7, delete "(e) A person" and insert "(d) Subject to
subsections (c) and (e), a person, including a joint agency (as
defined in IC 8-1-2.2-2),".
Page 2, delete lines 18 through 41, begin a new paragraph and
insert:
"(e) This section does not:
(1) apply to or prohibit the lawful use of:
(A) an alternate energy production facility;
(B) a cogeneration facility; or
(C) a small hydro facility;
within the scope of IC 8-1-2.4 by a retail electric customer for
the private provision of electrical energy to EV supply
equipment at the customer's location in connection with the
charging of electric vehicles;
(2) render:
(A) the owner or operator of a facility described in
subdivision (1)(A) through (1)(C) a public utility; or
HB 1221—LS 7036/DI 101 11
(B) the provision of electrical energy:
(i) by a facility described in subdivision (1)(A) through
(1)(C); and
(ii) for the purpose described in subdivision (1);
a public utility service;
that is subject to regulation; or
(3) except for the exclusive purpose set forth in subsection
(c)(3), authorize the sale of retail electric service to the
general public.".
Page 7, line 9, delete "battery," and insert "battery into the
vehicle,".
Page 7, line 30, after "program" insert "capital".
Page 7, line 32, after "program" insert "capital".
Page 8, line 16, delete "as identified by the electric utility in its
proposal." and insert "based on the evidence in the record of the
proceeding.".
Page 8, line 21, delete "program, as identified by the electric" and
insert "program, based on the evidence in the record of the
proceeding.".
Page 8, delete line 22.
Page 8, line 35, after "associated" insert "capital".
Page 8, line 38, after "of the" insert "capital".
Page 8, line 40, after "that the" insert "capital".
Page 9, delete lines 8 through 14.
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1221 as introduced.)
SOLIDAY
Committee Vote: yeas 13, nays 0.
HB 1221—LS 7036/DI 101