LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7174 NOTE PREPARED: Jan 24, 2022
BILL NUMBER: SB 411 BILL AMENDED:
SUBJECT: Commercial Solar and Wind Energy.
FIRST AUTHOR: Sen. Messmer BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: Energy Ready Communities Development Center: The bill establishes within
the Indiana Economic Development Corporation (IEDC) the Commercial Solar and Wind Energy Ready
Communities Development Center. It sets forth the following duties of the center:
(1) Providing and making easily accessible comprehensive information concerning permits required
for commercial solar projects, wind power projects, and related business activities in Indiana.
(2) Working with permit authorities for such projects.
It provides that in addition to these duties, the center shall create and administer:
(1) a program to certify a unit as a Commercial Solar Energy Ready Community; and
(2) a program to certify a unit as a Wind Energy Ready Community.
Energy Ready Community Certification: The bill provides that the IEDC shall certify a unit as a Commercial
Solar Energy Ready Community if the unit meets certain requirements, including the adoption of a
commercial solar regulation that includes standards that are not more restrictive than the default standards
for commercial solar energy systems set forth in the bill.
The bill provides that if: (1) a unit receives certification as a Commercial Solar Energy Ready Community;
and (2) after the unit's certification, a project owner develops a commercial solar project in the unit; the IEDC
shall authorize the unit to receive for a period of 10 years, beginning with the start date of the commercial
solar project's full commercial operation, $1 per megawatt hour of electricity generated by the commercial
solar project, if the IEDC determines that the procedures and standards set forth in the unit's commercial
solar regulation were adhered to in the development of the project.
SB 411 1 The bill provides that if the IEDC determines at any time during this 10 year period that the unit has failed
to continue to maintain: (1) the standards and procedural framework set forth in the unit's commercial solar
regulation; and (2) all applicable zoning, land use, and planning regulations; with respect to the project, the
corporation shall discontinue the incentive and shall require the unit to return to the project owner any
amounts collected by the unit after the unit's breach.
It sets forth the same requirements for a unit to receive: (1) certification as a Wind Energy Ready
Community; and (2) the per megawatt hour incentive for wind energy produced by a wind power project
approved under the unit's wind power regulation.
Default Standards: The bill establishes default standards concerning the following with respect to wind
power projects in units that are certified as Wind Energy Ready Communities, or that otherwise adopt the
standards: (1) Setback requirements. (2) Height restrictions. (3) Shadow flicker limitations. (4) Signal
interference. (5) Sound level limitations. (6) Wind turbine light mitigation technology. (7) Required repairs
to drainage related infrastructure. (8) Project decommissioning.
The bill establishes default standards concerning the following with respect to commercial solar projects in
units that are certified as Commercial Solar Energy Ready Communities, or that otherwise adopt the
standards: (1) Setback requirements. (2) Height restrictions. (3) Ground cover. (4) Fencing. (5) Cables. (6)
Glare. (7) Signal interference. (8) Sound level limitations. (9) Required repairs to drainage related
infrastructure. (10) Project decommissioning.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Indiana Economic Development Corporation (IEDC): The bill
establishes the Commercial Solar and Wind Energy Ready Communities Development Center within the
IEDC and tasks the center with providing comprehensive information concerning permits required for
commercial solar projects, wind power projects, and related business activities in Indiana, and working with
permit authorities for such projects. It also requires that the center establish programs to certify a unit as
either a Wind or Solar Energy Ready Community.
The bill provides that the IEDC is responsible for certifying that a unit is a Wind or Solar Energy Ready
Community if the unit meets certain requirements, including the adoption of a wind or solar regulations that
includes standards that are not more restrictive than the default standards set forth in the bill. [A unit may
be certified as both a Wind and Solar Energy Ready Community if it meets the requirements for both
designations.] The IEDC will also construct the forms and procedures for units to use in the application
process.
The bill’s requirements represent an additional workload and expenditures on the IEDC, and existing staffing
and resource levels, if currently being used to capacity, may be insufficient for full implementation. The
additional funds and resources required could be supplied through existing staff and resources currently
being used in another program or with new appropriations. Ultimately, the source of funds and resources
required to satisfy the requirements of this bill will depend on legislative and administrative actions.
Explanation of State Revenues:
Explanation of Local Expenditures: The bill could increase administrative costs for local units to the
extent that local regulations are revised by the unit’s permit authority to meet the default standards required
SB 411 2 to be a Wind or Solar Energy Ready Community. It is likely that local units could accomplish needed
amendments within existing resources.
Additional Information - The bill defines unit depending on the location of the proposed wind or solar power
project or development. Unit refers to a municipality if the proposed project or development is entirely within
the boundaries of a single municipality. In the event that the proposed project or development is entirely in
unincorporated areas, is in both unincorporated areas and a municipality, or is entirely within two or more
municipalities, the county is considered to be the unit. If the proposed project or development spans multiple
counties, unit refers to each county or each municipality (where each municipality is located in a different
county), subject to the conditions described above.
Explanation of Local Revenues: Under the bill, if counties or municipalities become certified as either
Wind or Solar Energy Ready Communities and a project owner develops a commercial project in the unit,
those units would receive $1 per megawatt hour of electricity generated by the commercial project for a
period of at least 10 years if the procedures and standards set forth in the unit's commercial regulation were
adhered to in the development of the project. To the extent that counties and municipalities pursue the IEDC
certification and eligible projects are built, the bill could result in increase in local revenues. The overall
fiscal impact is ultimately indeterminable, and will depend on local decisions.
State Agencies Affected: Indiana Economic Development Corporation.
Local Agencies Affected: Local units.
Information Sources:
Fiscal Analyst: Olivia Smith, 317-232-9869.
SB 411 3