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 6850 NOTE PREPARED: Jan 2, 2024
BILL NUMBER: HB 1193 BILL AMENDED:
SUBJECT: Community Solar Facilities.
FIRST AUTHOR: Rep. Hamilton BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill requires the Indiana Utility Regulatory Commission (IURC) to adopt
rules governing community solar facilities not later than July 1, 2025.
It provides that, not later than 180 days after adoption of the rules, an electricity provider shall begin: (1)
allowing interconnection of the electricity provider's facilities with community solar facilities in which three
or more of the electricity provider's customers have entered into a subscription; and (2) crediting the
electricity provider's subscribing customers for the amount of electricity from the community solar facility
for which the customer subscribes.
It also requires the IURC to: (1) establish an interconnection working group composed of representatives of
electricity suppliers and other stakeholders with respect to electric utility service; and (2) implement the
working group's recommendations regarding creation, revision, or elimination of policies, processes, tariffs,
rules, or standards relating to the interconnection of community solar facilities and electricity suppliers as
necessary for transparent, accurate, and efficient implementation of community solar facilities.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Indiana Utility Regulatory Commission (IURC): The bill establishes
the Interconnection Working Group to review policies, processes, tariffs, rules, and standards relating to the
interconnection of community solar facilities and electricity suppliers. The chairman of the IURC, or the
chairman’s designee, shall serve as the chair and nonvoting member of the working group. The IURC shall
staff and provide oversight of the working group. The expenses incurred by this working group in performing
these duties would be paid out of funds appropriated to the IURC. It also requires the working group to
HB 1193 1 submit recommendations to the IURC no later than March 31, 2025. The bill’s requirements will increase
the workload and expenditures of the IURC.
IURC Rules: The IURC shall adopt rules governing solar facilities, solar credit rate, uniform fees, consumer
protection standards, processes for interconnection, and cost recovery for reasonable administrative expenses
before FY 2026. It also requires the IURC to adopt rules necessary to implement the recommendations of
the working group not later than December 31, 2025. This represents an additional workload on the IURC,
but it should be able to be accomplished within existing resources.
Additional Information - The operating budget of the IURC is funded by regulated utilities operating in
Indiana. The rate at which to bill the utilities is based on the agencies' budgets, less reversions, divided by
the total amount of gross intrastate operating revenue received by the regulated utilities for the previous fiscal
year. Based on this formula, utilities are currently billed approximately 0.12% of their gross intrastate
operating revenues to fund the IURC.
Per Diem, Mileage, and Traveling Expenses: A member of the working group who is not a state employee
or member of the General Assembly is entitled to reimbursement for state approved traveling expenses,
mileage, and other expenses actually incurred in connection with the member's duties. Each member of the
working group who is a state employee, but not a member of the General Assembly, is entitled to
reimbursement for state approved traveling expenses, mileage, and other expenses actually incurred in
connection with the member's duties. Each member of the working group who is a member of the General
Assembly is entitled to the same per diem, mileage, and traveling allowances paid to legislative members of
interim study committees established by the Legislative Council. The cost per meeting would be a minor
increase in expenses. The expenses incurred by this working group in performing these duties would be paid
out of funds appropriated to the IURC.
Explanation of State Revenues:
Explanation of Local Expenditures: If municipal utilities offer a community solar facility program plan,
there could be an increase in workload and local expenditures related to program implementation.
Solar Credits: If local units are customers of electricity providers that file a community solar facility program
plan, and those units receive credits for subscribing to receive energy from that facility, there could be
decreased local expenditures as a result of the bill.
Community Solar Facility Organization: The bill requires a community solar facility organization to submit
an annual report to the IURC regarding the ownership, management, operation, statistical results, and future
plans of the community solar facility. As a result, there could be an increase in workload and local
expenditures related to the application, administration of the facility, and reporting requirements.
Any fiscal impact on local units as a result of the bill is indeterminable and will depend on local decisions.
Additional Information - The bill provides that a community solar facility organization or subscriber are not
a public utility subject to IC 8-1-2 solely as a result of the community solar facility organization’s ownership
or operation of a community solar facility, and a subscriber’s subscription in a community solar facility.
Explanation of Local Revenues:
HB 1193 2 State Agencies Affected: Indiana Utility Regulatory Commission.
Local Agencies Affected: Municipal utilities; Local units.
Information Sources:
Fiscal Analyst: Corrin Harvey, 317-234-9438.
HB 1193 3