*HB1278.1* January 18, 2024 HOUSE BILL No. 1278 _____ DIGEST OF HB 1278 (Updated January 16, 2024 12:07 pm - DI 140) Citations Affected: IC 4-3; IC 4-4; IC 4-12; IC 4-13; IC 4-23; IC 5-28; IC 8-1; IC 21-47. Synopsis: IURC and office of energy development matters. Repeals the Indiana Code provisions concerning the following obsolete programs and funds administered by the Indiana office of energy development (office): (1) The alternative fuel fueling station grant program. (2) The alternative fuel vehicle grant program for local units. (3) The Indiana coal research grant fund. (4) The office of alternative energy incentives. (5) The alternative energy incentive fund. (6) The center for coal technology research. Makes conforming amendments to other sections of the Indiana Code that reference the repealed provisions. Repeals, in the Indiana Code chapter governing the Indiana recycling market development board (board), a provision that authorizes the office to establish and administer a revolving loan program to make low interest loans for energy efficiency or recycling market development projects. Relocates that provision to the Indiana Code chapter governing the office and removes from the provision language authorizing the office to consult with the board in establishing and administering the program. Provides that, notwithstanding the statutory requirements for a local unit to be certified as a commercial solar energy ready community or a wind energy ready community, the commercial solar and wind energy ready communities development center may make a reasonable determination to certify a unit as a commercial solar energy ready community or a wind energy ready community if the unit's commercial solar regulation or wind power regulation does not: (1) materially differ from applicable industry or (Continued next page) Effective: July 1, 2024. Soliday January 9, 2024, read first time and referred to Committee on Utilities, Energy and Telecommunications. January 18, 2024, reported — Do Pass. HB 1278—LS 6966/DI 101 Digest Continued regulatory standards; or (2) otherwise materially affect the ability of a project owner to develop a commercial solar project or a wind power project in the unit. Amends the Indiana Code section concerning a rate case in which a utility seeks an increase in revenues exceeding $2,500,000, and with respect to which a public hearing is required, to provide that the Indiana utility regulatory commission (IURC) shall conduct at least one public hearing in one of the following, as determined by the IURC: (1) The largest municipality located within the utility's service area. (2) The municipality containing the largest number of customers served by the utility. (3) The county containing the largest number of customers served by the utility. (Current law requires the IURC to conduct the public hearing in the largest municipality located within the utility's service area.) Makes a corresponding change to the statute concerning rural electric membership corporations. Repeals a provision in the statute concerning incentives for clean energy projects that requires eligible businesses under the statute to file with the lieutenant governor a monthly report concerning purchases of: (1) Illinois Basin coal for energy production or generation; and (2) fuel or energy produced by a coal gasification facility or by a nuclear energy production or generating facility. HB 1278—LS 6966/DI 101HB 1278—LS 6966/DI 101 January 18, 2024 Second Regular Session of the 123rd General Assembly (2024) 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 2023 Regular Session of the General Assembly. HOUSE BILL No. 1278 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 4-3-23-5, AS AMENDED BY P.L.109-2015, 2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2024]: Sec. 5. The office shall administer the following: 4 (1) The alternative fuel fueling station grant program under 5 IC 4-4-32.2. 6 (2) The alternative fuel vehicle grant program for local units 7 under IC 4-4-32.3. 8 (3) (1) The energy development fund under IC 4-23-5.5-10. 9 (4) (2) A low interest revolving loan program for certain energy 10 efficiency or recycling projects in consultation with the Indiana 11 recycling market development board. under section 9 of this 12 chapter. 13 (5) The coal research grant fund under IC 4-23-5.5-16. 14 (6) (3) The green industries fund under IC 5-28-34, in 15 consultation with the Indiana economic development corporation. HB 1278—LS 6966/DI 101 2 1 (7) The office of alternative energy incentives established by 2 IC 8-1-13.1-9 and the alternative energy incentive fund 3 established by IC 8-1-13.1-10. 4 (8) The center for coal technology research established by 5 IC 21-47-4-1 and the coal technology research fund established 6 by IC 21-47-4-5. 7 SECTION 2. IC 4-3-23-9 IS ADDED TO THE INDIANA CODE 8 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 9 1, 2024]: Sec. 9. The office may establish and administer a 10 revolving loan program for the purpose of making low interest 11 loans to projects designed to promote the development and efficient 12 use of energy resources or to promote recycling market 13 development. The interest rates for the loans shall be fixed by the 14 office. 15 SECTION 3. IC 4-3-23.1-12, AS ADDED BY P.L.50-2023, 16 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 17 JULY 1, 2024]: Sec. 12. (a) The commercial solar and wind energy 18 ready communities development center may be established within the 19 office. If established, the center shall have has the following duties: 20 (1) Providing comprehensive information concerning permits 21 required for projects and related business activities in Indiana, 22 and making the information available and easily accessible to: 23 (A) project owners; 24 (B) state and local government offices, departments, and 25 administrative entities; and 26 (C) the public. 27 (2) Working with permit authorities to encourage the timely and 28 efficient issuance of permits and the resolution of related issues. 29 (b) The center, if established, may create and administer: 30 (1) a program for the certification of units as commercial solar 31 energy ready communities under section 13 of this chapter; and 32 (2) a program for the certification of units as wind energy ready 33 communities under section 14 of this chapter. 34 (c) Notwithstanding: 35 (1) section 13(a) of this chapter, the center, if established, may 36 make a reasonable determination to certify a unit as a 37 commercial solar energy ready community if the unit's 38 commercial solar regulation differs in one (1) or more 39 respects from the standards set forth in section 13(a) of this 40 chapter; or 41 (2) section 14(a) of this chapter, the center, if established, may 42 make a reasonable determination to certify a unit as a wind HB 1278—LS 6966/DI 101 3 1 energy ready community if the unit's wind power regulation 2 differs in one (1) or more respects from the standards set 3 forth in section 14(a) of this chapter; 4 if the unit's commercial solar regulation or wind power regulation, 5 as applicable, does not materially differ from applicable industry 6 or regulatory standards, or otherwise materially affect the ability 7 of a project owner to develop a project in the unit. 8 SECTION 4. IC 4-3-23.1-13, AS AMENDED BY THE 9 TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL 10 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 11 JULY 1, 2024]: Sec. 13. (a) A unit may apply to the office for 12 certification as a commercial solar energy ready community. The 13 application must be in a form and manner prescribed by the office. 14 Subject to section 12(c) of this chapter, the office may approve an 15 application and certify a unit as a commercial solar energy ready 16 community if the office determines the following: 17 (1) That the unit has adopted a commercial solar regulation that 18 includes clear standards for the construction, installation, siting, 19 modification, operation, or decommissioning of one (1) or more 20 commercial solar energy systems (as defined in IC 8-1-42-2) in 21 the unit. 22 (2) That the unit's commercial solar regulation: 23 (A) includes standards that are not more restrictive, directly or 24 indirectly, than the default standards for commercial solar 25 energy systems set forth in IC 8-1-42; 26 (B) provides a clear and transparent process for project owners 27 to identify potential commercial solar project sites; 28 (C) does not unreasonably eliminate portions of the unit as 29 sites for commercial solar projects; 30 (D) provides for a fair review and approval process for 31 proposed commercial solar projects, including final approval 32 that cannot be revoked; and 33 (E) includes a specific plan for using any funds from an 34 incentive granted by the office under subsection (b): 35 (i) for economic development purposes within or near the 36 commercial solar project's footprint; or 37 (ii) to otherwise benefit residents and businesses within or 38 near the commercial solar project's footprint. 39 (3) That the unit has demonstrated a commitment to maintain: 40 (A) the standards and procedural framework set forth in the 41 unit's commercial solar regulation; and 42 (B) all applicable zoning, land use, and planning regulations; HB 1278—LS 6966/DI 101 4 1 with respect to any particular commercial solar project that is 2 approved under the unit's commercial solar regulation, for a 3 period of at least ten (10) years, beginning with the start date of 4 the commercial solar project's full commercial operation. 5 (b) If: 6 (1) a unit receives certification as a commercial solar energy 7 ready community by the office under this section; 8 (2) after the unit's certification, a project owner constructs a 9 commercial solar project in the unit; and 10 (3) the fund is established and there is a sufficient balance in the 11 fund; 12 the office may authorize the unit to receive from the fund, for a period 13 of ten (10) years beginning with the start date of the commercial solar 14 project's full commercial operation, one dollar ($1) per megawatt hour 15 of electricity generated by the commercial solar project, if the office 16 determines that the procedures and standards set forth in the unit's 17 commercial solar regulation were adhered to in the development of the 18 project. However, if the office determines at any time after the start of 19 the commercial solar project's full commercial operation that the unit 20 has failed to continue to meet the requirement for certification set forth 21 in subsection (a)(3), the office shall discontinue the incentive granted 22 under this subsection and shall require the unit to return to the fund any 23 amounts collected by the unit under this subsection after the unit's 24 breach of the requirement for certification set forth in subsection (a)(3). 25 (c) After: 26 (1) a unit receives certification as a commercial solar energy 27 ready community under this section; and 28 (2) a project owner constructs a commercial solar energy facility 29 project that qualifies the unit to receive the incentive payments 30 under subsection (b); 31 the project owner shall annually report to the office the total megawatt 32 hours generated by the commercial solar energy facility project in the 33 previous year. 34 SECTION 5. IC 4-3-23.1-14, AS AMENDED BY THE 35 TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL 36 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 37 JULY 1, 2024]: Sec. 14. (a) A unit may apply to the office for 38 certification as a wind energy ready community. The application must 39 be in a form and manner prescribed by the office. Subject to section 40 12(c) of this chapter, the office may approve an application and certify 41 a unit as a wind energy ready community if the office determines the 42 following: HB 1278—LS 6966/DI 101 5 1 (1) That the unit has adopted a wind power regulation that 2 includes clear standards for the construction, installation, siting, 3 modification, operation, or decommissioning of one (1) or more 4 wind power devices (as defined in IC 8-1-41-7) in the unit. 5 (2) That the unit's wind power regulation: 6 (A) includes standards that are not more restrictive, directly or 7 indirectly, than the default standards for wind power devices 8 set forth in IC 8-1-41; 9 (B) provides a clear and transparent process for project owners 10 to identify potential wind power project sites; 11 (C) does not unreasonably eliminate portions of the unit as 12 sites for wind power projects; 13 (D) provides for a fair review and approval process for 14 proposed wind power projects, including final approval that 15 cannot be revoked; and 16 (E) includes a specific plan for using any funds from an 17 incentive granted by the office under subsection (b): 18 (i) for economic development purposes within or near the 19 wind power project's footprint; or 20 (ii) to otherwise benefit residents and businesses within or 21 near the wind power project's footprint. 22 (3) That the unit has demonstrated a commitment to maintain: 23 (A) the standards and procedural framework set forth in the 24 unit's wind power regulation; and 25 (B) all applicable zoning, land use, and planning regulations; 26 with respect to any particular wind power project that is approved 27 under the unit's commercial solar wind power regulation, for a 28 period of at least ten (10) years, beginning with the start date of 29 the wind power project's full commercial operation. 30 (b) If: 31 (1) a unit receives certification as a wind energy ready community 32 by the office under this section; 33 (2) after the unit's certification, a project owner constructs a wind 34 power project in the unit; and 35 (3) the fund is established and there is a sufficient balance in the 36 fund; 37 the office may authorize the unit to receive from the fund, for a period 38 of ten (10) years beginning with the start date of the wind power 39 project's full commercial operation, one dollar ($1) per megawatt hour 40 of electricity generated by the wind power project, if the office 41 determines that the procedures and standards set forth in the unit's wind 42 power regulation were adhered to in the development of the project. HB 1278—LS 6966/DI 101 6 1 However, if the office determines at any time after the start of the wind 2 power project's full commercial operation that the unit has failed to 3 continue to meet the requirement for certification set forth in 4 subsection (a)(3), the office shall discontinue the incentive granted 5 under this subsection and shall require the unit to return to the fund any 6 amounts collected by the unit under this subsection after the unit's 7 breach of the requirement for certification set forth in subsection (a)(3). 8 (c) After: 9 (1) a unit receives certification as a wind energy ready community 10 under this section; and 11 (2) a project owner constructs a wind energy facility power 12 project that qualifies the unit to receive the incentive under 13 subsection (b); 14 the project owner shall annually report to the office the total megawatt 15 hours generated by the wind energy facility power project in the 16 previous year. 17 SECTION 6. IC 4-4-32.2 IS REPEALED [EFFECTIVE JULY 1, 18 2024]. (Alternative Fuel Fueling Station Grant Program). 19 SECTION 7. IC 4-4-32.3 IS REPEALED [EFFECTIVE JULY 1, 20 2024]. (Alternative Fuel Vehicle Grant Program for Local Units). 21 SECTION 8. IC 4-12-12-6, AS AMENDED BY P.L.152-2018, 22 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 23 JULY 1, 2024]: Sec. 6. Money in the account that is not otherwise 24 designated under section 3 of this chapter is annually dedicated to the 25 following: 26 (1) The Indiana economic development partnership fund under 27 IC 4-12-10. 28 (2) The scientific instrument project within the department of 29 education. 30 (3) The coal technology research fund under IC 21-47-4-5 (before 31 its repeal on July 1, 2024). 32 SECTION 9. IC 4-13-16.5-2, AS AMENDED BY P.L.15-2020, 33 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 34 JULY 1, 2024]: Sec. 2. (a) There is established a governor's 35 commission on supplier diversity. The commission shall consist of the 36 following members: 37 (1) A governor's designee, who shall serve as chairman of the 38 commission. 39 (2) The commissioner of the Indiana department of transportation, 40 or the economic opportunity director of the Indiana department of 41 transportation if the commissioner of the Indiana department of 42 transportation so designates. HB 1278—LS 6966/DI 101 7 1 (3) The chairperson of the board of the Indiana economic 2 development corporation or the chairperson's designee. 3 (4) The commissioner. 4 (5) Nine (9) individuals with demonstrated capabilities in 5 business and industry, especially minority business enterprises, 6 women's business enterprises, and veteran owned small 7 businesses, appointed by the governor from the following 8 geographical areas of the state: 9 (A) Three (3) from the northern one-third (1/3) of the state. 10 (B) Three (3) from the central one-third (1/3) of the state. 11 (C) Three (3) from the southern one-third (1/3) of the state. 12 (6) Two (2) members of the house of representatives, no more 13 than one (1) from the same political party, appointed by the 14 speaker of the house of representatives to serve in a nonvoting 15 advisory capacity. 16 (7) Two (2) members of the senate, no more than one (1) from the 17 same political party, appointed by the president pro tempore of 18 the senate to serve in a nonvoting advisory capacity. 19 (8) The deputy commissioner, who shall serve as a nonvoting 20 member. 21 Not more than six (6) of the ten (10) members appointed or designated 22 by the governor may be of the same political party. Appointed members 23 of the commission shall serve four (4) year terms. A vacancy occurs if 24 a legislative member leaves office for any reason. Any vacancy on the 25 commission shall be filled in the same manner as the original 26 appointment. 27 (b) Each member of the commission who is not a state employee is 28 entitled to the following: 29 (1) The minimum salary per diem provided by IC 4-10-11-2.1(b). 30 (2) Reimbursement for traveling expenses and other expenses 31 actually incurred in connection with the member's duties as 32 provided under IC 4-13-1-4 and in the state travel policies and 33 procedures established by the Indiana department of 34 administration and approved by the budget agency. 35 (c) Each legislative member of the commission is entitled to receive 36 the same per diem, mileage, and travel allowances established by the 37 legislative council and paid to members of the general assembly 38 serving on interim study committees. The allowances specified in this 39 subsection shall be paid by the legislative services agency from the 40 amounts appropriated for that purpose. 41 (d) A member of the commission who is a state employee but who 42 is not a member of the general assembly is not entitled to any of the HB 1278—LS 6966/DI 101 8 1 following: 2 (1) The minimum salary per diem provided by IC 4-10-11-2.1(b). 3 (2) Reimbursement for traveling expenses as provided under 4 IC 4-13-1-4. 5 (3) Other expenses actually incurred in connection with the 6 member's duties. 7 (e) The commission shall meet at least four (4) times each year and 8 at other times as the chairman considers necessary. 9 (f) The duties of the commission shall include but not be limited to 10 the following: 11 (1) Identify minority business enterprises, women's business 12 enterprises, and veteran owned small businesses in the state. 13 (2) Assess the needs of minority business enterprises, women's 14 business enterprises, and veteran owned small businesses. 15 (3) Initiate aggressive programs to assist minority business 16 enterprises, women's business enterprises, and veteran owned 17 small businesses in obtaining state contracts. 18 (4) Give special publicity to procurement, bidding, and qualifying 19 procedures. 20 (5) Include minority business enterprises, women's business 21 enterprises, and veteran owned small businesses on solicitation 22 mailing lists. 23 (6) Evaluate the competitive differences between qualified 24 minority or women's nonprofit corporations and other than 25 qualified minority or women's nonprofit corporations and veteran 26 owned small businesses that offer similar services and make 27 recommendation to the department on policy changes necessary 28 to ensure fair competition among minority business enterprises, 29 women's business enterprises, and veteran owned small 30 businesses. 31 (7) Define the duties, goals, and objectives of the deputy 32 commissioner of the department as created under this chapter to 33 assure compliance by all state agencies, separate bodies corporate 34 and politic, and state educational institutions with state and 35 federal legislation and policy concerning the awarding of 36 contracts (including, notwithstanding section 1(d) of this chapter 37 or any other law, contracts of state educational institutions) to 38 minority business enterprises, women's business enterprises, and 39 veteran owned small businesses. 40 (8) Establish annual goals: 41 (A) for the use of minority and women's business enterprises; 42 and HB 1278—LS 6966/DI 101 9 1 (B) derived from a statistical analysis of utilization study of 2 state contracts (including, notwithstanding section 1(d) of this 3 chapter or any other law, contracts of state educational 4 institutions) that are required to be updated every five (5) 5 years. 6 (9) Prepare a review of the commission and the various affected 7 departments of government to be submitted to the governor and 8 the legislative council on March 1 and October 1 of each year, 9 evaluating progress made in the areas defined in this subsection. 10 (10) Ensure that the statistical analysis required under this 11 section: 12 (A) is based on goals for participation of minority business 13 enterprises established in Richmond v. Croson, 488 U.S. 469 14 (1989); 15 (B) includes information on both contracts and subcontracts 16 (including, notwithstanding section 1(d) of this chapter or any 17 other law, contracts and subcontracts of state educational 18 institutions); and 19 (C) uses data on the combined capacity of minority business 20 enterprises, women's business enterprises, and veteran owned 21 small businesses in Indiana and not just regional data. 22 (11) Establish annual goals for the use of minority business 23 enterprises, women's business enterprises, and veteran owned 24 small businesses for any contract that: 25 (A) will be paid for in whole or in part with state grant funds; 26 and 27 (B) involves the use of real property of a unit. (as defined in 28 IC 4-4-32.2-9). 29 (12) Ensure compliance with the establishment and evaluation of 30 the annual goal for veteran owned small businesses established in 31 section 3.5 of this chapter. 32 (g) The department shall direct contractors to demonstrate a good 33 faith effort to meet the annual participation goals established under 34 subsection (f)(11). The good faith effort shall be demonstrated by 35 contractors using the repository of certified firms created under section 36 3 of this chapter or a similar repository maintained by a unit. (as 37 defined in IC 4-4-32.2-9). 38 (h) The department shall adopt rules of ethics under IC 4-22-2 for 39 commission members other than commission members appointed 40 under subsection (a)(6) or (a)(7). 41 (i) The department shall furnish administrative support and staff as 42 is necessary for the effective operation of the commission. HB 1278—LS 6966/DI 101 10 1 (j) The commission shall advise the department on developing a 2 statement, to be included in all applications for and agreements 3 governing grants made with state funds, stating the importance of the 4 use of minority business enterprises, women's business enterprises, and 5 veteran owned small businesses in fulfilling the purposes of the grant. 6 (k) For purposes of subsections (f)(11) and (g), "unit" means a 7 county, city, town, township, or school corporation. 8 SECTION 10. IC 4-23-5.5-11 IS REPEALED [EFFECTIVE JULY 9 1, 2024]. Sec. 11. The office may establish and administer a revolving 10 loan program for the purpose of making low interest loans to projects 11 designed to promote the development and efficient use of energy 12 resources or to promote recycling market development. The interest 13 rates for the loans shall be fixed by the office. The office may consult 14 with the board in implementing this section. 15 SECTION 11. IC 4-23-5.5-16 IS REPEALED [EFFECTIVE JULY 16 1, 2024]. Sec. 16. (a) As used in this section, "center" refers to the 17 center for coal technology research established by IC 21-47-4-1. 18 (b) The Indiana coal research grant fund is established for the 19 purpose of providing grants for research and other projects designed to 20 develop and expand markets for Indiana coal. The fund shall be 21 administered by the office. 22 (c) Sources of money for the fund consist of the following: 23 (1) Appropriations from the general assembly. 24 (2) Donations, gifts, and money received from any other source, 25 including transfers from other funds or accounts. 26 (d) Money remaining in the fund at the end of a state fiscal year 27 does not revert to the state general fund. 28 (e) The treasurer of state shall invest the money in the fund not 29 currently needed to meet the obligations of the fund in the same 30 manner as other public funds may be invested. Interest that accrues 31 from these investments shall be deposited in the fund. 32 (f) The center shall establish: 33 (1) amounts for grants under this section; and 34 (2) criteria for awarding grants under this section. 35 (g) A person, business, or manufacturer that wants a grant from the 36 fund must file an application in the manner prescribed by the center. 37 (h) The center shall appoint a panel of at least eight (8) members to 38 review and make recommendations to the center about each application 39 filed under this section. To be a member of the panel, an individual 40 must be a scientist, a professional engineer registered under 41 IC 25-31-1, or another professional who is familiar with coal 42 combustion, coal properties, coal byproducts, and other coal uses. HB 1278—LS 6966/DI 101 11 1 (i) The director of the office shall pursue available private and 2 public sources of money for the fund. 3 SECTION 12. IC 5-28-41-4, AS ADDED BY P.L.165-2021, 4 SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 5 JULY 1, 2024]: Sec. 4. (a) As used in this chapter, "qualified nonprofit 6 organization" means a private, nonprofit entity formed as a partnership 7 between local units, (as defined in IC 4-4-32.2-9), private sector 8 businesses, or community or philanthropic organizations to develop 9 and implement a regional economic acceleration and development 10 strategy that has an organizational structure that conforms with the 11 requirements of a policy developed by the corporation under section 16 12 of this chapter. 13 (b) For purposes of subsection (a), a "local unit" means a 14 county, city, town, township, or school corporation. 15 SECTION 13. IC 5-28-43-4, AS ADDED BY P.L.201-2023, 16 SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 17 JULY 1, 2024]: Sec. 4. (a) As used in this chapter, "qualified nonprofit 18 organization" means a private, nonprofit entity formed as a partnership 19 between local units, (as defined in IC 4-4-32.2-9), private sector 20 businesses, or community or philanthropic organizations to develop 21 and implement a regional economic acceleration and development 22 strategy that has an organizational structure that conforms with the 23 requirements of a policy developed by the corporation under section 16 24 of this chapter. 25 (b) For purposes of subsection (a), a "local unit" means a 26 county, city, town, township, or school corporation. 27 SECTION 14. IC 8-1-2-61, AS AMENDED BY P.L.94-2022, 28 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 29 JULY 1, 2024]: Sec. 61. (a) Any public utility may make complaint as 30 to any matter affecting its own rates or service. The petition or 31 complaint must include a statement as to whether the utility, if a 32 not-for-profit water utility or municipal utility, has any outstanding 33 indebtedness to the federal government. The public utility shall publish 34 a notice of the filing of such petition or complaint in a newspaper of 35 general circulation published in any county in which the public utility 36 renders service. An order affecting rates or service may be entered by 37 the commission without a formal public hearing, if: 38 (1) the utility is a not-for-profit water utility or a municipal utility; 39 and 40 (2) the utility has obtained written consent to obtain an order 41 affecting its rates from the commission without a formal hearing 42 from any agency of the federal government with which the utility HB 1278—LS 6966/DI 101 12 1 has outstanding evidence of indebtedness to the federal 2 government. 3 The commission may, however, on its own motion require a formal 4 public hearing, and shall, upon a motion filed by the utility consumer 5 counselor, by any public or municipal corporation, or by ten (10) 6 individuals, firms, corporations, limited liability companies, or 7 associations, or ten (10) complainants of all or any of these classes, 8 hold a formal public hearing with respect to any such petition or 9 complaint. 10 (b) In any general rate proceeding under subsection (a) which 11 requires a public hearing and in which an increase in revenues is 12 sought which exceeds the sum of two million five hundred thousand 13 dollars ($2,500,000), the commission shall conduct at least one (1) 14 public hearing in one (1) of the following, as determined by the 15 commission: 16 (1) The largest municipality located within such the utility's 17 service area. 18 (2) The municipality containing the largest number of 19 customers served by the utility. 20 (3) The county containing the largest number of customers 21 served by the utility. 22 (c) In a proceeding brought by an energy utility (as defined in 23 IC 8-1-2.5-2) under this section, the commission may approve: 24 (1) time-varying price structures and tariffs; or 25 (2) other alternative pricing structures and tariffs; 26 for retail energy service (as defined in IC 8-1-2.5-3), such as 27 time-of-use or off-peak pricing, critical peak pricing, variable peak 28 pricing, and real-time pricing. 29 SECTION 15. IC 8-1-8.8-13 IS REPEALED [EFFECTIVE JULY 30 1, 2024]. Sec. 13. An eligible business shall file a monthly report with 31 the lieutenant governor stating the following information: 32 (1) The amount of Illinois Basin coal, if any, purchased during the 33 previous month for use in a new energy production or generating 34 facility. 35 (2) The amount of any fuel or energy produced by: 36 (A) a coal gasification facility; or 37 (B) a nuclear energy production or generating facility; 38 that is purchased by the eligible business during the previous 39 month. 40 (3) Any other information the lieutenant governor may reasonably 41 require. 42 SECTION 16. IC 8-1-13-38 IS AMENDED TO READ AS HB 1278—LS 6966/DI 101 13 1 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 38. (a) Any corporation 2 may make complaint as to any matter affecting its own rates or service. 3 The corporation shall publish a notice of the filing of the petition or 4 complaint in a newspaper of general circulation published in any 5 county in which the corporation renders service. An order affecting 6 rates or service may be entered by the commission without a formal 7 public hearing, if the corporation has obtained written consent to obtain 8 an order affecting its rates from the commission without a formal 9 hearing from any agency of the federal government with which the 10 corporation has outstanding evidence of indebtedness to the federal 11 government. The commission may, however, on its own motion require 12 a formal public hearing, and shall, upon a motion filed by the utility 13 consumer counselor, by any public or municipal corporation, by ten 14 (10) individuals, firms, corporations, limited liability companies, or 15 associations, or by ten (10) complainants of any or all of these classes, 16 hold a formal public hearing with respect to any petition or complaint. 17 (b) In any general rate proceeding under subsection (a) which 18 requires a public hearing and in which an increase in revenues is 19 sought which exceeds the sum of two million five hundred thousand 20 dollars ($2,500,000), the commission shall conduct at least one (1) 21 public hearing in one (1) of the following, as determined by the 22 commission: 23 (1) The largest municipality located within the corporation's 24 service area. 25 (2) The municipality containing the largest number of 26 customers served by the corporation. 27 (3) The county containing the largest number of customers 28 served by the corporation. 29 SECTION 17. IC 8-1-13.1-5 IS REPEALED [EFFECTIVE JULY 30 1, 2024]. Sec. 5. As used in this chapter, "director" refers to the director 31 of the office of alternative energy incentives serving under section 9(b) 32 of this chapter. 33 SECTION 18. IC 8-1-13.1-6 IS REPEALED [EFFECTIVE JULY 34 1, 2024]. Sec. 6. As used in this chapter, "fund" refers to the alternative 35 energy incentive fund established by section 10 of this chapter. 36 SECTION 19. IC 8-1-13.1-7 IS REPEALED [EFFECTIVE JULY 37 1, 2024]. Sec. 7. As used in this chapter, "office" refers to the office of 38 alternative energy incentives established by section 9 of this chapter. 39 SECTION 20. IC 8-1-13.1-9 IS REPEALED [EFFECTIVE JULY 40 1, 2024]. Sec. 9. (a) The office of alternative energy incentives is 41 established within the Indiana office of energy development established 42 by IC 4-3-23-3. HB 1278—LS 6966/DI 101 14 1 (b) The: 2 (1) director of the Indiana office of energy development; or 3 (2) designee of the Indiana office of energy development, who 4 must be qualified by knowledge of or experience in the electric 5 utility industry; 6 shall serve as the director of the office. 7 (c) The director: 8 (1) serves at the pleasure of and is responsible to the director of 9 the Indiana office of energy development, if the director is a 10 designee of the director of the Indiana office of energy 11 development; 12 (2) may receive compensation in an amount determined by the 13 director of the Indiana office of energy development, subject to 14 the approval of the budget agency, if the director is a designee of 15 the director of the Indiana office of energy development; 16 (3) serves as the chief executive and administrative officer of the 17 office; and 18 (4) may, to the extent appropriate, delegate the director's authority 19 under this chapter, subject to the approval of: 20 (A) the director of the Indiana office of energy development, 21 if the director is a designee of the director of the Indiana office 22 of energy development; and 23 (B) the budget agency. 24 (d) The director of the Indiana office of energy development may: 25 (1) establish; and 26 (2) appoint members to; 27 an advisory board to advise the office in the administration of this 28 chapter. 29 SECTION 21. IC 8-1-13.1-10 IS REPEALED [EFFECTIVE JULY 30 1, 2024]. Sec. 10. (a) The alternative energy incentive fund is 31 established for the purpose of providing funds to corporations for use 32 in the development of alternative energy projects. The fund shall be 33 administered by the office. 34 (b) The fund consists of: 35 (1) money appropriated to the fund by the general assembly; 36 (2) money received from state or federal grants or programs for 37 alternative energy projects; and 38 (3) donations, gifts, and money received from any other source, 39 including transfers from other funds or accounts. 40 (c) Money in the fund is continuously appropriated for the purposes 41 of this section. 42 (d) Money in the fund may be spent only in accordance with this HB 1278—LS 6966/DI 101 15 1 chapter and to carry out the purposes of this chapter. 2 (e) The expenses of administering the fund shall be paid from 3 money in the fund. 4 (f) Notwithstanding IC 5-13, the treasurer of state shall invest the 5 money in the fund not currently needed to meet the obligations of the 6 fund in the same manner as money is invested by the Indiana public 7 retirement system under IC 5-10.3-5. The treasurer of state may 8 contract with investment management professionals, investment 9 advisers, and legal counsel to assist in the investment of the fund and 10 may pay the expenses incurred under those contracts from the fund. 11 Interest that accrues from these investments shall be deposited in the 12 fund. 13 (g) Money in the fund at the end of a state fiscal year does not revert 14 to the state general fund. 15 SECTION 22. IC 21-47-1-2 IS REPEALED [EFFECTIVE JULY 1, 16 2024]. Sec. 2. "Center", for purposes of IC 21-47-4, refers to the center 17 for coal technology research established by IC 21-47-4-1. 18 SECTION 23. IC 21-47-1-3 IS REPEALED [EFFECTIVE JULY 1, 19 2024]. Sec. 3. "Fund", for purposes of IC 21-47-4, refers to the coal 20 technology research fund established by IC 21-47-4-5. 21 SECTION 24. IC 21-47-4 IS REPEALED [EFFECTIVE JULY 1, 22 2024]. (Center for Coal Technology Research). HB 1278—LS 6966/DI 101 16 COMMITTEE REPORT Mr. Speaker: Your Committee on Utilities, Energy and Telecommunications, to which was referred House Bill 1278, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill do pass. (Reference is to HB 1278 as introduced.) SOLIDAY Committee Vote: Yeas 11, Nays 0 HB 1278—LS 6966/DI 101